Getting A Michigan Life Insurance License: A Beginner's Guide

Getting a life insurance license in Michigan requires several steps. First, you must complete a prelicensing course, which will prepare you for the state licensing exam. The number of hours required for prelicensing education varies depending on the type of insurance license you're seeking. For example, a life insurance license requires 20 hours of prelicensing education, while a life and health insurance license requires 40 hours. After completing your prelicensing course, you must pass the state licensing exam, which is multiple-choice and costs $41 per attempt. Once you've passed the exam, you can submit your license application through the National Insurance Producer Registry (NIPR). It's important to note that you must complete your prelicensing course and receive your certificate of completion before taking the state exam. The entire process can take a few weeks, depending on your preparation and knowledge of the material.

Prelicensing education requirements

To obtain a life insurance license in Michigan, you must complete the state's prelicensing education requirements. These requirements vary depending on the type of insurance license you are seeking.

For a life insurance license, you must complete 20 hours of prelicensing education. This includes 14 hours focused specifically on life insurance principles. The course must be state-approved, and you will need to pass a Certification Exam to demonstrate completion of the prelicensing requirement. This exam is not monitored, and you will need to achieve a score of 70% or greater to pass.

After passing the Certification Exam, you will receive a Certificate of Completion, which is valid for one year. This certificate must be submitted to the Michigan Department of Insurance and Financial Services (DIFS) when you apply for your license.

It is important to note that the prelicensing education requirements are separate from the state licensing exam, which you must also pass to obtain your life insurance license. The prelicensing education is intended to prepare you for this state exam.

You can choose to take your prelicensing course online or in a classroom setting. Some providers offer flexible learning options, allowing you to study at your own pace. When selecting a course, it is essential to choose one that meets the criteria outlined in the Michigan Compiled Laws § 500.1204a.

Additionally, certain individuals may be exempt from the prelicensing requirements if they have specific designations, certifications, or college credits. These include CLU®, CPCU®, RHU, ARM, CFP®, AAI, ChFC®, CIC, FLMI, REBC, LUTCF, HIA, and CEBS. However, a written waiver must be submitted to the Michigan DIFS before taking the exam, along with confirmation of the designation, certification, or college credits.

Prelicensing course providers

To obtain a life insurance license in Michigan, you must complete a prelicensing course. The Michigan Department of Insurance and Financial Services (DIFS) requires each person selling insurance policies in the state to hold an insurance producer license.

There are several prelicensing course providers that offer courses to prepare you to pass the state exam. Here are some options:

A.D. Banker

A.D. Banker offers prelicensing courses that can be supplemented with web classes and learning tools like flashcards and study manuals. They offer 20 hours of prelicensing education for each line of authority, which is required by Michigan.

Kaplan Financial Education

Kaplan offers Live Online, Live & OnDemand, and Self-Study Online insurance licensing solutions. They have one of the highest pass rates in the industry, with 81% of StateRequirement readers using their online courses. Their prelicensing courses cover:

• Life & Health: 40 Hours (34 hours on life and health insurance principles)
• Life: 20 Hours (14 hours on life insurance principles)
• Accident & Health: 20 Hours (14 hours on health insurance principles)
• Property & Casualty: 40 Hours (34 hours of property and liability insurance principles)
• Property: 20 Hours (14 hours on property insurance principles)
• Casualty: 20 Hours (14 hours on liability insurance principles)
• Personal Lines: 20 Hours (14 hours of property and liability insurance principles)

ExamFX

ExamFX offers prelicensing courses that have been approved by the Department of Insurance. They offer 20 hours of prelicensing education for each line of authority and 40 hours for dual lines of authority. Their courses are designed to help you earn your certificate of completion, which is valid for one year.

Michigan School of Insurance

The Michigan School of Insurance offers IN-PERSON, LIVE WEBINAR, and SELF-STUDY courses to help you pass your state exam. They have a range of options, including:

• IN-PERSON Life Accident and Health Pre-licensing Course
• ONLINE Life Accident and Health Pre-licensing Course
• Self Study MI Life, Accident and Health Pre-licensing Course

The state licensing exam

After completing your prelicensing course, you are now ready to take the state licensing exam. In the State of Michigan, the passing scores for each exam are:

• Life & Health Exam – 75%
• Variable Life and Annuities Exam – 74%
• Life, Variable Life and Annuities Exam – 73%
• Property & Casualty Exam – 74%
• Property Exam – 75%
• Casualty Exam – 74%
• Personal Lines Exam – 75%

There will be an additional exam fee if you need to retake the exam, so it is important to pass the first time.

Remote online proctored examinations require a desktop computer or laptop (smartphones and tablets are not compatible with PSI’s technology requirements), a webcam, a microphone, and an internet connection.

To change or cancel your testing appointment, you must contact PSI Exams at least 48 hours in advance or forfeit the examination fee.

On the day of your appointment, you must bring two valid forms of government-issued identification (driver’s license, passport, military ID, etc.), one of which must contain a photograph and a signature. You will not be able to take your exam if these requirements are not met.

The Michigan Life Producer Examination consists of 100 questions with a time limit of 2 hours and a passing score of 72%. The Michigan Accident and Health Producer Examination consists of 100 questions with a time limit of 2 hours and a passing score of 76%. The Michigan Life, Accident and Health Producer Examination consists of 150 questions with a time limit of 2.5 hours and a passing score of 75%. The Michigan Property Producer Examination consists of 100 questions with a time limit of 2 hours and a passing score of 75%. The Michigan Casualty Producer Examination consists of 100 questions with a time limit of 2 hours and a passing score of 74%. The Michigan Property and Casualty Producer Examination consists of 150 questions with a time limit of 2.5 hours and a passing score of 74%. The Michigan Personal Lines Producer Examination consists of 100 questions with a time limit of 2 hours and a passing score of 75%. The Michigan Variable Life and Annuities Producer Examination consists of 60 questions with a time limit of 1 hour and a passing score of 74%.

Your results will be given to you immediately following the exam. If you do not pass, you will receive a diagnostic report indicating your strengths and weaknesses.

Applying for a license

After passing the exam, you are ready to submit your license application through the National Insurance Producer Registry (NIPR). This can be done on the NIPR website.

Michigan resident applicants must use the online application service at NIPR. The application fee is $10, and there is an additional $5 transaction fee. Your application will be valid for 180 days from its entry into the Michigan Department of Insurance and Financial Services (DIFS) database.

As part of your application, you will need to answer several questions about your background, which will be reviewed by DIFS. Make sure to double-check all the information you provide in your application, as if it is discovered that you answered a question incorrectly (whether or not you meant to), your application may be denied.

DIFS will also carry out several background checks into your past and prior contact to ensure you meet the insurance producer regulations of the state. While your application won't be automatically denied if you have committed a felony in the past, it will be denied if you don't report this.

With that said, DIFS strongly recommends candidates not apply for an insurance license in Michigan if they were convicted of a felony within the last 10 years, or if their felony involves any of the following:

• Violence (or the threat of it) against another person
• Criminal sexual conduct
• A felony of a fiduciary/financial nature (e.g. bribery, embezzlement, extortion, or fraud)

If you need to check your criminal record in Michigan, you can do so by navigating the Michigan State Police's ICHAT (Internet Criminal History Access Tool).

Continuing education requirements

To get a life insurance license in Michigan, you must complete continuing education (CE) requirements. These requirements vary depending on the type of license you hold and the products you sell.

For all resident license holders, the general CE requirement is 24 hours every 2 years, including 3 hours of ethics training. The renewal date is based on the licensee's birth month, with odd-year birthdays renewing in odd years and even-year birthdays renewing in even years.

If you are a life and health producer, you must complete a one-time, 4-hour Annuity Best Interest Certification Training course before selling, soliciting, or negotiating annuity products. This requirement also applies to non-resident producers licensed on or after June 29, 2021. Additionally, you must complete an initial 8-hour Long-Term Care (LTC) Certification Training before selling, soliciting, or negotiating long-term care products/policies. After the initial requirement, you must complete a 4-hour ongoing LTC training every renewal period.

For property and casualty producers, you must complete a one-time, 3-hour course on NFIP Flood Insurance Certification Training before selling flood insurance policies.

There are also some exemptions from CE requirements. Individuals licensed only for one or more of the following lines are exempt: Credit Products, Limited Life, Turkey, Crop & Hail, Travel, Accident and Baggage, or Title. Individuals who apply for and receive a hardship waiver for military duty, terminal illness, or immediate family member care are also exempt.

Frequently asked questions