Auto Insurance Sales In Michigan: Navigating The Licensing Requirements

If you want to sell auto insurance in Michigan, you must obtain a Michigan insurance license. This process involves several steps, including deciding on the type of insurance license you need (e.g., Property & Casualty or Life and Health), submitting an insurance license application, completing a pre-licensing education course, and passing the relevant Michigan insurance license exam. The specific requirements and steps for obtaining a Michigan insurance license are outlined by the Michigan Department of Insurance and Financial Services.

What are the requirements for a Michigan insurance license?

To obtain a Michigan insurance license, you must be at least 18 years old and a resident of the state. There are four main steps to getting your license:

• Complete a pre-licensing education course: This is required before taking the state licensing exam. The number of hours of instruction will depend on the type of insurance you want to sell. For example, Life/Limited Life and Accident & Health require 20 hours, while Life and Health, Property and Casualty, and Property, Casualty, and Personal Lines require 40 hours. The course must be certified by the Michigan Department of Insurance and Financial Services.
• Pass the Michigan Insurance License Exam: All insurance exams are multiple-choice, administered by PSI, and cost $41 per attempt. You must register with PSI Services and provide two current forms of identification, one of which must be government-issued with a photo and signature.
• Submit your insurance license application: This is done by filing an Electronic Resident Licensing (ERL) application through the National Insurance Producer Registry (NIPR) website. The application fee is $15 (plus a $5 transaction fee). Your application will be valid for 180 days, and you must submit all required paperwork within this time frame.
• Complete Required Insurance Continuing Education (CE) Credits: Every insurance producer must adhere to their home state's CE requirements. In Michigan, you will be required to complete at least 24 credit hours of state-approved continuing education every two years, including a minimum of three hours dedicated to ethics coursework.

How do you apply for a Michigan insurance license?

To apply for a Michigan insurance license, you must be at least 18 years old and a resident of the state. The process for getting an insurance license varies by state, but here are the steps you need to take to obtain a Michigan insurance license:

Step 1: Complete a Pre-Licensing Course

First, you must complete a pre-licensing insurance course that is certified by the Michigan Department of Insurance and Financial Services (DIFS). The number of pre-licensing education hours required depends on the type of license you are seeking. For example, a Life/Limited Life license requires 20 hours, while a Property and Casualty license requires 40 hours. After completing the course, you will need to pass a Certification Exam to demonstrate completion of the pre-licensing requirement. You will then be awarded a Certificate of Course Completion, which is valid for 12 months.

Step 2: Submit Your Insurance License Application

After choosing the insurance line you’d like to apply for, you can submit your application by filing an Electronic Resident Licensing (ERL) application through the National Insurance Producer Registry (NIPR) website. This application costs $10, with an additional $5 transaction fee, and is valid for 180 days from its entry into the Michigan Department of Insurance and Financial Services’s (DIFS) database. As part of your application, you will need to answer questions about your background, which will be reviewed by DIFS.

Step 3: Pass the Michigan Insurance License Exam

After completing your pre-licensing course, you must register to take the state insurance exam. Exam reservations can be made online at the PSI website or over the phone. You will need to provide two current forms of identification at the testing center, and the name on the identification must match the name on the registration. The primary identification must be government-issued and include a photo and signature, such as a driver's license or passport. The exam fee is $41, and passing scores range from 73%-76%, depending on the type of license.

Step 4: Apply for Your Michigan Insurance License

Once you have passed the Michigan insurance licensing exam, you will need to submit your license application through the National Insurance Producer Registry website. The application fee is $15, and you must submit all required paperwork within 180 days of applying for your license, or the application will be considered withdrawn.

Step 5: Application Review

If everything on your application has been filled out correctly, your license should be issued within 14 days. However, if there are any items from your background check that need to be reviewed, the process may take longer. The state will send you an email regarding the status of your license once the review has been completed.

What are the fees for a Michigan insurance license?

The fees for a Michigan insurance license vary depending on the type of license and the educational provider. Here is a step-by-step breakdown of the costs:

Step 1: Complete a Pre-Licensing Insurance Course

To qualify for the Michigan insurance license exam, you must complete a pre-licensing insurance course that is certified by the Michigan Department of Insurance and Financial Services. The cost of this course varies depending on the provider. For example, the Kaplan Education Company charges $149 or more for their pre-licensing course.

Step 2: Submit Your Insurance License Application

After completing your pre-licensing education, you must submit an Electronic Resident Licensing (ERL) application through the National Insurance Producer Registry (NIPR) website. There is a $10 application fee and a $5 transaction fee, for a total cost of $15. Your application will be valid for six months from the date of submission.

Step 3: Schedule and Pass the Michigan Insurance License Exam

The Michigan insurance licensing exams are offered by PSI Services. The exam fee is $41, which you must pay at the time of registration.

Step 4: Apply for Your Michigan Insurance License

Once you have passed the exam, you will need to submit your license application through the National Insurance Producer Registry website. The application fee for this step is $15.

Additional Costs

In addition to the fees mentioned above, you may also need to factor in the cost of practice exams, study materials, and continuing education courses to maintain your license. It is also worth noting that if you fail the exam, you will need to pay the exam fee again for each subsequent attempt.

What are the requirements for a Michigan resident insurance license?

To obtain a Michigan resident insurance license, you must meet the following requirements:

Firstly, you must be at least 18 years old. This is determined from the applicant's date of birth. Non-citizens of the US must have a resident license for selling insurance in one of the 50 US states. Applicants are allowed to use PO boxes for mailing addresses, but a physical address is required for the residence.

Secondly, you must complete an insurance prelicensing course. This is a requirement in Michigan before taking the state licensing exam. The prelicensing education hour requirements vary depending on the type of insurance license you are seeking. For example, Life & Health insurance requires 40 hours (34 hours on life and health insurance principles), while Life insurance alone requires 20 hours (14 hours on life insurance principles). These hours include mandatory instruction on professional ethics and Michigan insurance laws.

Thirdly, you must pass the Michigan licensing exam. After completing your prelicensing course, you must register and pass the state insurance exam for the lines of authority for which you are applying.

Fourthly, you must apply for a Michigan insurance license. After passing your state licensing exam, you can apply for an insurance license through the Vertafore website or the National Insurance Producer Registry (NIPR) website. The license application fee is $10, plus a $5 transaction fee.

Finally, you must complete the required insurance continuing education (CE) credits. Every insurance producer must adhere to their home state's CE requirements. In Michigan, resident individual licensees must complete 24 credit hours of continuing education every two years, with three of those hours focusing on ethics.

It is important to note that the requirements and fees may change, so it is recommended to refer to the official sources for the most up-to-date information.

What are the requirements for a Michigan insurance adjuster license?

To become a licensed insurance adjuster in Michigan, you must meet the state's basic requirements, pass the Michigan Adjuster License State Exam, submit an application for your license, and complete Michigan's Continuing Education and License Renewal Requirements.

Basic Requirements

To meet the basic requirements for a Michigan Adjuster License, you must:

• Be at least 18 years of age.
• Have a reasonable understanding of the provisions, terms, and conditions of the insurance you will adjust.
• Have a reasonable understanding of Michigan's insurance laws.
• Intend to act in good faith as an adjuster.
• Possess a good business reputation and be of good moral character.

Michigan Adjuster License State Exam

The Michigan Adjuster License State Exam is administered by PSI Testing Centers. While a pre-licensing course is not required by the state, it is highly recommended that you take an AdjusterPro Michigan Adjuster Exam Prep Course. You must score at least 70% on the exam to pass. The exam costs $179, and you will be given 2 hours to complete it.

Application

Once you have passed the exam, you must submit an application for your adjuster license at the National Insurance Producer Registry (NIPR). The application fee is $15, plus a $5 transaction fee. You must also submit an application background questionnaire, and the answers will be reviewed by the Department of Insurance and Financial Services (DIFS) Insurance Licensing staff.

Continuing Education and License Renewal

Resident Michigan adjusters are not required to complete continuing education hours to renew their licenses. Adjuster licenses must be renewed annually between February 1 and March 31. The renewal fee is $5.

Frequently asked questions