Michigan Life & Health Insurance Exam: Complete Guide

The Michigan Life and Health insurance exams are your gateway to selling life, health, disability, and long-term care products throughout one of the Midwest's largest states. Michigan's exam structure is more demanding than most states in one important way: variable passing scores that go significantly above the standard 70% used elsewhere. The Accident & Health exam requires 76% — the highest single-line threshold in Michigan and higher than most states' flat 70%. Understanding exactly what's on each exam, how to hit these elevated passing scores, and what makes Michigan's exams distinctive prepares you to pass on the first attempt.

Here's the complete guide to the Michigan Life and Health insurance exams.

Who Administers the Exams

Michigan insurance licensing exams are administered by PSI Services on behalf of DIFS.

PSI Michigan contact:

Website: test-takers.psiexams.com/midifs

Phone: (855) 579-4639 or (800) 733-9267

Pay the $41 exam fee at registration by credit card, debit card, voucher, or electronic check

The PLE-First Requirement

Before scheduling your state exam, you must complete Michigan's prelicensing education (20 hours per line, 40 hours combined) and pass the PLE certification exam (70%+). Michigan enforces this strictly:

If you pass the state exam before completing your PLE course, you will be required to retest with PSI.

Complete PLE, pass the certification exam, receive your Certificate of Completion, then schedule your state exam.

In-Person Only — June 2025 Change

Effective June 10, 2025, PSI discontinued remote proctoring for Michigan insurance exams. All exams must be taken at a physical PSI testing center. Plan your exam scheduling around the nearest PSI testing center location and its availability.

Cancel or change your appointment at least 48 hours in advance or forfeit the $41 fee.

Michigan's Variable Passing Scores

Michigan's most distinctive exam feature: variable passing scores by exam type, set higher than the standard 70% used by most states.

Life & Health exam passing scores:

The Accident & Health exam at 76% is the most demanding single-line threshold in Michigan — requiring you to answer 76 out of 100 questions correctly. By comparison, most states require only 70% (70 correct out of 100). Those 6 extra correct answers make a real difference in preparation intensity.

These are criterion-referenced scores established by Michigan Subject Matter Experts (SMEs) based on what a minimally competent licensee should know. They reflect the complexity and consumer protection stakes in each line.

Life Insurance Exam Content

The Michigan Life Producer exam (100 questions, 2 hours, 72% passing) covers:

Insurance Regulation — 20% (20 questions):

Company regulation (how insurance companies are licensed and regulated in Michigan)

Producer regulation (DIFS licensing requirements, conduct standards, MCL 500)

Michigan Department of Insurance and Financial Services (DIFS) authority

General Insurance — 10% (10 questions):

Concepts and principles of insurance

Insurer types and structures

Producers and general rules of agency

Insurance contracts

Life Insurance Basics — 15% (15 questions):

Michigan life insurance laws

Personal uses of life insurance

Determining personal life insurance amounts

Business uses of life insurance (key person, buy-sell agreements)

Classes of life insurance policies

Premium structures

Producer responsibilities

Individual underwriting and risk classification

Life Insurance Policies — 20% (20 questions):

Term life insurance (level, decreasing, renewable, convertible)

Whole life insurance (straight life, limited pay, single premium)

Flexible premium policies (universal life, indexed universal life)

Group life insurance

Life insurance policy law in Michigan

Life Insurance Policy Provisions, Options, and Riders — 20% (20 questions):

Standard policy provisions (grace period, reinstatement, incontestability, misstatement of age)

Beneficiaries (revocable/irrevocable, per stirpes/per capita)

Non-forfeiture options (cash value, reduced paid-up, extended term)

Policy loans and assignments

Settlement options

Common riders (waiver of premium, accidental death, guaranteed insurability)

Annuities — 10% (10 questions):

Fixed, variable, and indexed annuities

Accumulation and distribution phases

Immediate vs. deferred

Suitability considerations

Federal Tax Considerations — 5% (5 questions):

Federal income tax treatment of life insurance premiums, proceeds, and dividends

Tax-qualified retirement plans (401k, IRA, SEP, SIMPLE)

Business tax considerations

Accident & Health Exam Content

The Michigan Accident & Health Producer exam (100 questions, 2 hours, 76% passing — the highest single-line threshold) covers:

Accident & Health Insurance Basics:

Types of health insurance plans (HMO, PPO, POS, EPO)

Individual vs. group coverage

Health insurance policy structures

Michigan health insurance regulations

Individual A&H Policy Provisions:

Grace period, reinstatement, entire contract

Free-look period

Coordination of benefits

Cancellation and renewal provisions

Pre-existing condition rules (ACA provisions)

Disability Income Insurance:

Short-term and long-term disability

Elimination periods

Benefit periods

Own-occupation vs. any-occupation definitions

Group disability

Medical Plans:

HMO, PPO, POS, EPO structures and differences

Health Maintenance Organization Act (Michigan HMO regulation)

Managed care provisions

Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs)

Group Health Insurance:

Group health underwriting

Group continuation (COBRA federal + Michigan continuation)

Group conversion rights

Employer mandate provisions (ACA)

Health Insurance for Seniors:

Medicare (Parts A, B, C, D)

Medicare supplement (Medigap) standardized plans

Medicare Advantage

Long-term care insurance

Michigan Medicaid (Healthy Michigan Plan)

Michigan-Specific A&H Laws:

DIFS regulations for health insurers

Michigan Health Insurance Reform Act provisions

Michigan continuation of group coverage rules

Michigan HMO Act requirements

Why the A&H Score Is the Hardest in Michigan

The 76% threshold on the Accident & Health exam reflects:

Federal regulatory complexity. A&H intersects more heavily with federal law (ACA, COBRA, HIPAA, ERISA, Medicare) than other lines. Understanding federal-state interaction at the level Michigan requires justifies a higher threshold.

Consumer vulnerability. Health insurance decisions directly affect clients' access to medical care and financial security. Higher competency standards protect consumers.

Product complexity. Health insurance products — from HMOs to HSAs to Medicare supplement to disability income — represent a genuinely complex product set.

Practical preparation tip: The A&H exam demands 76 correct answers out of 100. Practice until you're scoring 85%+ on practice exams before scheduling. That 9-point buffer is your protection against exam day variance.

Combined Life, Accident & Health Exam

For candidates pursuing both Life and A&H simultaneously, Michigan offers a combined Life, Accident and Health Producer exam:

150 questions

2.5 hours

75% passing score (75 of 100 scoring questions correct, scaled)

Covers all content from both single-line exams

Combined vs. separate strategy:

Take the combined exam if:

You want both licenses as quickly as possible

You've prepared thoroughly across both content areas

You're comfortable with the 2.5-hour format

Take separately if:

You're stronger in one area than the other

You want to manage preparation intensity

You prefer shorter, more focused exam sessions

Note: With the combined exam at 75% passing, you're actually at a slightly lower bar than the standalone A&H exam at 76% — which can make the combined exam strategically attractive for strong Life but less confident A&H candidates.

What to Expect on Exam Day

Arrive 30 minutes early at your PSI testing center.

Bring valid government-issued photo ID with signature. Names must match PSI registration exactly.

No personal items — no phones, watches, calculators, or study materials in the testing room.

Computer-based, multiple choice. All questions have four answer options.

Results appear immediately on screen after completing the exam. A score report is emailed to you.

If you fail: You receive a diagnostic report showing strengths and weaknesses by content area. Use this to guide your retake preparation — focused study based on diagnostic results is far more efficient than restudying everything.

Retake rules:

No limit on attempts

Must wait 24 hours between attempts

Each retake costs $41

If within 180-day NIPR application window: must submit new NIPR application (~$15.60) before scheduling retake

5 Frequently Asked Questions

• What's the passing score for the Michigan Life exam? 72% — you must answer at least 72 of 100 questions correctly.
• What's the passing score for the Michigan Accident & Health exam? 76% — the highest single-line passing score in Michigan. You must answer at least 76 of 100 questions correctly.
• Is there a combined Life and Health exam in Michigan? Yes. The Michigan Life, Accident and Health Producer exam covers both lines in 150 questions with 2.5 hours and requires 75% to pass.
• Can I take the Michigan exam online? No. Effective June 10, 2025, PSI discontinued remote proctoring for Michigan insurance exams. All exams must be taken in person at a PSI testing center.
• How many times can I retake the Michigan exam? Unlimited attempts. You must wait 24 hours between attempts and pay $41 for each. If you fail within your 180-day NIPR application window, you must also submit a new NIPR application before rescheduling.

Walk Into the Michigan Exam Prepared

Knowing what to expect — including Michigan's elevated passing scores — removes exam day anxiety. At JustInsurance, our Michigan prelicense course covers all content areas with particular depth on Michigan-specific laws, Michigan's no-fault auto system, and the DIFS regulations that appear on every exam.

Enroll today and prepare for the Michigan exam the right way.