The Michigan insurance exam can be challenging, particularly for candidates who are new to insurance terminology, policy provisions, and state insurance laws. Michigan requires candidates pursuing Life and Accident & Health producer licenses to complete pre-licensing education, but completing the required coursework is only one part of preparing for the state exam.
The exam requires you to understand insurance concepts, apply that knowledge to multiple-choice questions, and know the Michigan-specific laws and regulations associated with the license you are pursuing.
Is the Michigan Insurance Exam Hard?
Michigan’s published exam results show that many candidates do not pass on their first attempt.
According to the Michigan Department of Insurance and Financial Services, first-time candidate pass rates during 2024 were:
- Life Producer: 54.75%
- Accident & Health Producer: 45.25%
- Life & Health Producer: 55.84%
These figures do not mean that approximately half of all candidates ultimately fail to become licensed. They measure whether first-time examinees passed that particular examination attempt. Candidates who do not pass can prepare further and retake the exam.
The results do show why completing the required pre-licensing course should be viewed as preparation for the exam rather than simply an education requirement to finish.
What Makes the Michigan Insurance Exam Challenging?
One challenge is the amount of material candidates need to understand. Depending on the examination, this can include insurance terminology, policy provisions, contracts, underwriting, taxation, insurance products, and Michigan insurance laws and regulations.
Questions also require you to distinguish between concepts that may initially appear similar. Recognizing a term is not always enough; you need to understand how the concept works and when it applies.
Another factor is that Michigan does not use the same passing score for every producer examination. DIFS establishes a separate cut score for each exam based on the level of knowledge considered necessary for entry-level competence.
What Score Do You Need to Pass the Michigan Insurance Exam?
The passing score depends on the examination you take.
For the three Life and Health producer examinations:
- Life Producer: 72%
- Accident & Health Producer: 76%
- Life & Health Producer: 75%
DIFS describes these as criterion-referenced cut scores. Rather than applying one universal passing percentage to every insurance examination, the required score is established according to the knowledge and skills expected of a minimally competent entry-level licensee.
Candidates should review the current examination information before testing because DIFS notes that cut scores and examination content outlines are subject to change.
How Many Questions Are on the Michigan Insurance Exam?
The number of scored questions depends on the producer examination.
The current Michigan examination information lists:
Michigan Life Producer Exam
The Life Producer examination contains 100 scored questions and has a passing score of 72%.
Michigan Accident & Health Producer Exam
The Accident & Health Producer examination contains 100 scored questions and has a passing score of 76%.
Michigan Life & Health Producer Exam
The combined Life & Health Producer examination contains 150 scored questions and has a passing score of 75%.
PSI may also include a small number of experimental questions on an examination. These questions are not scored and are used in the development of future licensing examinations.
How Should You Prepare for the Michigan Insurance Exam?
Begin by completing the required Michigan pre-licensing education and developing a solid understanding of the material rather than concentrating only on completing the required course hours.
Michigan requires 20 hours of pre-licensing education for Life, 20 hours for Accident & Health, and 40 hours for Life & Health.
For more information about these requirements, review our How Many Hours Is the Michigan Insurance Pre-Licensing Course? article.
After learning the material, use practice questions to determine which subjects need additional attention. Review incorrect answers and return to the underlying material instead of simply memorizing the correct response.
As the exam approaches, comprehensive timed practice exams can help you measure how consistently you can apply material from across the entire course.
How Practice Exams Can Help You Prepare
Practice exams are most useful when they are treated as a way to measure understanding rather than simply accumulate completed questions.
Start with shorter practice exams while learning individual subjects. As you become more comfortable with the material, move toward comprehensive exams that draw questions from across the topics covered on the state examination.
After each attempt, review questions you answered incorrectly or were uncertain about. Understanding why each answer is correct or incorrect can help you recognize similar concepts when they are presented differently on the state exam.
For additional preparation strategies, review our insurance license exam tips and insurance exam question examples.
Does Completing Michigan Pre-Licensing Mean You Are Ready to Pass?
Not necessarily.
Michigan requires candidates subject to pre-licensing education to successfully complete the applicable coursework before taking the licensing examination. The education requirement establishes eligibility to proceed to the exam, but course completion alone does not guarantee that a candidate is prepared to pass.
Before scheduling the state exam, make sure you can consistently demonstrate your understanding across the different subjects covered by the applicable examination.
National Online Insurance School’s Michigan courses include unlimited customizable practice exams through our Exam Simulator, allowing you to continue testing your knowledge and identifying areas that need additional review before exam day.
Can You Pass the Michigan Insurance Exam on the First Attempt?
Yes. Many candidates pass the Michigan insurance exam on their first attempt.
Michigan’s 2024 results show that 54.75% of first-time Life examinees, 45.25% of first-time Accident & Health examinees, and 55.84% of first-time combined Life & Health examinees passed their examinations.
The statistics also demonstrate why preparation matters. Rather than scheduling the exam simply because the required coursework has been completed, use your performance across comprehensive practice exams to determine which subjects still require review.
Frequently Asked Questions
Is the Michigan insurance exam difficult?
The Michigan insurance exam can be challenging, particularly for candidates who are unfamiliar with insurance concepts and Michigan-specific laws and regulations. Michigan’s published first-time pass rates show that a substantial percentage of candidates do not pass their first examination attempt.
What score do you need to pass the Michigan Life insurance exam?
The current cut score for the Michigan Life Producer examination is 72%.
What score do you need to pass the Michigan Accident & Health exam?
The current cut score for the Michigan Accident & Health Producer examination is 76%.
What score do you need to pass the Michigan Life & Health exam?
The current cut score for the combined Michigan Life & Health Producer examination is 75%.
Who administers the Michigan insurance exam?
PSI administers Michigan insurance licensing examinations for the Michigan Department of Insurance and Financial Services. Candidates can register and schedule their examination through PSI.
Next Steps
Preparing for the Michigan insurance exam should focus on understanding the material and consistently applying that knowledge to exam-style questions.
Review our Michigan Insurance Courses to complete the required pre-licensing education and prepare for the state licensing exam, or use our Insurance Exam Simulator to learn more about the practice-exam tools included with enrollment.
