Michigan State Laws

Question 1

is a person required to be licensed under Michigan law to sell, solicit, or
negotiate insurance.

Answer 1

insurance producer

Question 2

ƒ Is at least 18 years of age
ƒ Has not committed any act that would result in license revocation or other sanction
ƒ Has completed a prelicensing course for the lines of insurance applied for
ƒ Has paid the applicable fees
ƒ Has successfully passed the examination for the lines of insurance applied for

Answer 2

Producer Licensing Requirements

Question 3

Which tasks require a producer’s license?

Answer 3

Soliciting insurance

Question 4

What is not a prerequisite to apply for a producer’s license in Michigan?

Answer 4

Having a high school diploma

Question 5

All of the following would be eligible to have their prelicensing requirements waived by
the Director except an applicant who:

Answer 5

a. Has been a licensed insurance producer within the preceding 36 months
b. Applies for a credit insurance producer’s license
c. Has obtained the CPCU designation
d. Has a bachelor’s degree with a concentration in insurance from an approved institution
Answer A

Question 6

is a corporation, association, partnership, limited liability company, limited liability
partnership, or other legal entity.

Answer 6

Business Entity

Question 7

is a person who provides advice, counsel, or opinion with respect to benefits
promised, coverage afforded, or terms of a policy of insurance or annuity.

Answer 7

insurance counselor

Question 8

Change of Name and Address

Licensees must notify the Director of any
change in mailing/electronic mail address or name change within __ days after the change.

Answer 8

30 days

Question 9

Report of Actions

Within ___ days of occurrence, a licensed agent must report any disciplinary action by the insurance
regulatory agency of any other state or territory of the United States; each disciplinary action on an
occupational license held by the licensee; each judgment or injunction entered against the licensee
involving fraud, deceit, misrepresentation, or violation of any insurance law.

Answer 9

30 days

Question 10

Continuing Education Requirements?

Answer 10

To renew a producer’s license, each licensee must complete a minimum of 24 credit hours, 3 hours of
which must be in ethics, of approved insurance continuing education (CE) courses every 2 years before
the review date.
they may
carryover no more than 12 hours to the next 2 year review period.

Question 11

How many days after terminating the appointment of an agent must an insurer notify
the Director of the termination?

Answer 11

30 Days

Question 12

How many days after appointing an agent must an insurer notify the Director of the
appointment?

Answer 12

15 Days

Question 13

The fine for knowingly violating a cease and desist order is what amount per infraction?

Answer 13

$20,000

Question 14

Which of the following is not grounds for license revocation?

Answer 14

a. Providing materially untrue information in the license application
b. Violating a cease and desist order
c. Committing an Unfair Trade Practice
d. Overinsuring a property risk

 D

Question 15

circulating of an estimate, illustration, statement, sales presentation, or
comparison which, by omitting a material fact or misstating a material fact.
-Makes a false or misleading statement as to dividends previously paid on a policy

Answer 15

Misrepresentation

Question 16

It is prohibited to make, publish, or place before the public by any method an advertisement,
announcement, representation, or statement which is untrue, deceptive, or misleading with respect
to any person or the business of insurance.

Answer 16

False Information and Advertising

Question 17

resulting in or tending to result in an unreasonable restraint of trade, or
monopoly in, the business of insurance.

Answer 17

Boycott, Coercion, Intimidation

Question 18

A producer tells his clients, falsely, that a rival insurer does not pay claims in a timely
fashion. This is an example of what Unfair Trade Practice?

Answer 18

Defamation

Question 19

Charging different rates or providing different benefits to insureds of the same actuarial
class or hazard category is?

Answer 19

Unfair discrimination

Question 20

Which of the following is not considered an Unfair Trade Practice?

Answer 20

a. Representation
b. Rebating
c. Twisting
d. Churning

A

Question 21

A producer tells applicants that if they buy their insurance with her agency, she’ll refund
the first month’s premium. This is an example of what Unfair Trade Practice?

Answer 21

Rebating

Question 22

COVERED CLAIMS
The Michigan Property and Casualty Insurance Guaranty Association will pay the
unearned premium of an insolvent insurer up to what amount for a single claim?

Answer 22

$500

Question 23

The Michigan Property and Casualty Insurance Guaranty Association will pay the obligations
an insolvent insurer for an auto policy up to what amount for a single claim?

Answer 23

$5 Million

Question 24

Which of the following is not a required provision for fire policies in Michigan?

Answer 24

a. Mandatory replacement cost valuation
b. Minimum coverage of direct loss from fire or lightning
c. The policy is void in case of fraud
d. Liability is shared on a pro rata basis with other policies

A