Michigan Life & Health Insurance Exam 2026

What This License Is

A Michigan Life & Health insurance license allows you to sell life insurance, annuities, accident insurance, and health insurance to individuals and businesses in Michigan. It is issued by the Michigan Department of Insurance and Financial Services (DIFS) and is required for anyone who solicits, negotiates, or sells these products in the state.

This is a resident producer license. If you live in Michigan and want to sell insurance here, this is the license you need. Once you hold a Michigan resident license, you can also apply for non-resident licenses in other states through reciprocity agreements — Michigan has reciprocity with most states — which can significantly expand your market.

The licensing process has four main steps: complete 40 hours of DIFS-approved pre-licensing education, get fingerprinted through IdentoGO, pass the PSI state exam, and submit your license application through NIPR with approximately a $15 fee. This guide walks through each step in detail so you know exactly what to expect.

Eligibility Requirements

To apply for a Michigan Life & Health insurance license, you must meet the following requirements set by DIFS:

There is no degree or prior experience requirement. Anyone who meets the age, education, and background check requirements can apply. DIFS evaluates each application on its merits.

Pre-Licensing Education

Before you can take the PSI licensing exam, you must complete a DIFS-approved pre-licensing course. Michigan requires 40 hours of pre-licensing education for the combined Life & Health exam. Here is what is required:

Courses are available online (self-paced) or in-person from DIFS-approved education providers. Online self-paced courses are the most popular option — they typically cost between $75 and $250 and allow you to study on your own schedule. You must complete the course and pass a final course exam to receive a certificate of completion.

After completing the course, you will receive a certificate of completion. Your education provider reports your completion to PSI electronically, which unlocks your ability to schedule the state exam. Keep a copy of your certificate for your records — you may need it if there are any discrepancies.

Your pre-licensing education certificate is valid for 12 months. You must pass the PSI state exam within 12 months of completing your pre-licensing course. If 12 months pass without you passing the exam, you will need to retake the pre-licensing course before you can schedule another exam attempt.

Fingerprinting

Michigan requires electronic fingerprinting for all insurance license applicants. Your fingerprints are submitted for a criminal background check that is reviewed by DIFS as part of the license application process.

You should get fingerprinted before or shortly after passing your exam. DIFS will not issue your license until your background check clears, and processing can take several weeks. Getting fingerprinted early prevents delays in receiving your license after you pass.

Michigan uses IdentoGO for electronic fingerprinting. You can schedule an appointment at an IdentoGO enrollment center near you. IdentoGO has locations throughout Michigan, including in Detroit, Grand Rapids, Lansing, Ann Arbor, and other major cities. The fingerprinting fee varies by location.

When you go, bring a valid government-issued photo ID. Your fingerprint results are submitted electronically to DIFS — you do not need to mail anything. Make sure you use the correct DIFS service code when scheduling your IdentoGO appointment so that your results are routed to the right agency.

Exam Options

The Michigan insurance licensing exam is administered by PSI Services. You have three exam options depending on which license lines you want:

Which should you choose? Most people take the combined Life & Health exam. It qualifies you to sell all lines of insurance — life, annuities, and health — with a single exam and a single license. There is no cost savings from taking the individual exams, and taking them separately means two exam sessions and two fees.

The Life-Only or Health-Only exams make sense if you have a very specific role in mind and only need one line of authority. Many agencies, however, prefer producers who hold both lines, so the combined exam is almost always the better long-term choice.

What the Exam Covers

The combined Life & Health exam tests your knowledge across the following topic areas. Understanding the weighting of each area helps you allocate your study time strategically:

The Michigan Insurance Code section — roughly 15% of the exam — is where many candidates lose points. Michigan has specific rules about replacement notices, grace periods, guaranty association limits, and free-look periods that differ from what is covered in generic national study materials. Make sure you study Michigan-specific content under Act 218 of 1956 (Michigan Compiled Laws) and DIFS regulations, not just general insurance principles.

Scheduling with PSI

After completing your pre-licensing education, you can schedule your exam through the PSI candidate scheduling portal. You will need to create a PSI account if you do not already have one, then search for the Michigan insurance licensing exam.

When scheduling, you will select:

You can reschedule or cancel your exam appointment up to 2 business days before your scheduled date without a penalty. Cancellations within 2 business days of your appointment may forfeit your $41 exam fee. PSI accepts payment by credit or debit card when you register online.

Exam Fees

Here is a breakdown of all the fees involved in the Michigan insurance licensing process:

Total estimated cost: $175–$350 for the entire licensing process from start to finish, assuming you pass the exam on your first attempt. Budget on the higher end to account for the pre-licensing course and any retakes.

In-Person vs. Remote Testing

PSI offers two testing options for the Michigan insurance exam:

The exam content, format, time limit, and fee are identical regardless of which option you choose. The remote option is convenient if you live far from a testing center or have a schedule that makes in-person testing difficult. However, be aware that technical issues — internet drops, webcam problems, or background noise — can disrupt your session or even invalidate your exam. If you choose remote testing, run a system check in advance and ensure you have a quiet, private space for the full 2.5 hours.

Exam Day

If testing in person: Arrive at the PSI testing center at least 30 minutes before your scheduled appointment. You will need to present a valid government-issued photo ID (driver's license, passport, or state ID). The name on your ID must exactly match the name on your exam registration — even a slight discrepancy (nickname, middle name) can cause problems. You will be given a locker for personal items; no phones, notes, watches, or study materials are allowed in the testing room.

If testing remotely: Log into the PSI remote proctoring software about 15 minutes before your scheduled time. The proctor will verify your identity via webcam, ask you to show your room and workspace (including under your desk and the walls around you), and then launch your exam. Your phone must be out of reach, your desk must be completely clear, and no other programs should be open on your computer.

The exam is multiple-choice on a computer. You can flag questions to come back to and navigate forward and backward between questions at any time. At the end of the allotted time (or when you submit), your score is calculated instantly and you will see your pass/fail result on screen immediately. A printed or emailed score report will be provided after the session.

Passing Score

The passing score for all Michigan insurance licensing exams is 70%.

Michigan uses a straight percentage passing score. The exam questions are designed to test practical knowledge of insurance concepts and Michigan-specific law. The combined exam includes scenario-based questions that require careful reading — candidates who rush through questions often miss nuances that change the correct answer. On the combined exam, you have about 56 seconds per question. Most successful candidates study for 50–70 hours total, incorporating the 40-hour pre-licensing requirement and focused review of Michigan-specific regulatory content.

If You Pass

When you pass the exam, you will see your result on screen immediately. PSI reports your passing score to DIFS electronically, typically within 1–2 business days.

Your next step is to apply for your license through NIPR (National Insurance Producer Registry). You will submit your application, pay the approximately $15 license fee, and DIFS will process your background check results along with your exam results.

You must apply within 12 months of passing the exam. If you wait longer than 12 months, your exam results expire and you will need to retake the exam before you can apply for your license.

Your license will not be issued until your IdentoGO background check clears — this is why it is important to get fingerprinted early in the process, ideally before or right after you pass the exam. Background check processing times can vary.

If You Fail

If you do not pass, you will see your score on screen immediately along with a diagnostic score report that breaks down your performance by topic area. This report is extremely valuable — it identifies which sections you need to focus on before your next attempt.

Michigan allows you to retake the exam without a mandatory waiting period for the first several attempts. You can reschedule through PSI as soon as availability permits:

Each retake costs $41. Use your diagnostic score report to prioritize your study time. Most candidates who fail do so because of the Michigan Insurance Code sections or because they mix up specific rules — like grace periods for life versus health policies, or the details of Michigan replacement regulations.

Applying for Your License

Once you have passed the exam and completed fingerprinting, you are ready to apply for your Michigan insurance producer license. Michigan accepts applications through NIPR:

Once your license is issued, you are authorized to transact insurance business in Michigan. You will also need to obtain an insurer appointment before making your first sale — see the Insurer Appointments section below.

License Types

Michigan insurance producer licenses are categorized by line of authority. When you pass the combined exam, you receive a license with both Life and Health lines of authority. The main license types relevant to this guide are:

If you plan to sell variable products (variable life insurance or variable annuities), you will also need FINRA securities licenses (Series 6 or Series 7) in addition to your Michigan state insurance license. The state insurance license alone does not authorize you to sell variable products.

Continuing Education

To keep your Michigan insurance license active, you must complete 24 hours of continuing education (CE) every 2 years. Michigan's license renewal period runs on a 2-year cycle tied to your license anniversary date.

Make sure you track your CE deadline based on your license anniversary date so you do not miss the renewal window. DIFS may send reminders, but it is ultimately your responsibility to ensure timely completion, including the 3-hour ethics requirement.

If you fail to complete CE or renew on time, your license will lapse. A lapsed license means you are no longer authorized to transact insurance business in Michigan. You can typically reinstate a recently lapsed license by completing CE and paying any required fees, but it is much simpler — and important for your career — to stay current.

Insurer Appointments

Having a license is necessary but not sufficient to sell insurance in Michigan. You also need to be appointed by at least one insurance company before you can legally solicit or sell their products. An appointment is the formal authorization from an insurer that allows you to represent their products to consumers.

In Michigan, an insurer must file an appointment with DIFS before a producer may transact business on their behalf. Appointments are filed by the insurance company, not by the producer. When you join an agency or sign a contract with a carrier, the insurer handles filing the appointment notice with DIFS on your behalf.

You can be appointed by multiple insurance companies simultaneously. Many producers are appointed with several carriers to offer a broader range of products to clients. Your appointment status is visible in the DIFS public producer lookup database. If a carrier terminates your appointment, they are required to notify DIFS and, in certain cases, notify you of the reason for termination.

Study Strategy

Most successful candidates spend 50 to 70 hours studying over a period of 4 to 6 weeks. Given Michigan's 40-hour pre-licensing requirement, you will want to supplement the coursework with focused self-study on Michigan-specific rules. Here is a proven approach:

Practice Tests

Taking practice tests is the single most effective way to prepare for the Michigan insurance exam. Practice tests help you get comfortable with the question format, build speed, identify knowledge gaps, and develop the mental stamina needed for 160 questions in 2.5 hours.

Insurance Test Practice exams: You can take Michigan insurance practice exams on Insurance Test Practice. The practice exams cover all tested topics including life insurance, health insurance, annuities, and the Michigan Insurance Code. Questions are written in the same multiple-choice format as the actual PSI exam, including scenario-based questions that mirror what you will see on test day.

A good benchmark: if you can consistently score 80% or higher on practice tests, you are likely ready for the real exam. Do not schedule your exam until you are regularly hitting 80%+ on full-length practice tests — this is the single best predictor of passing the actual exam.

Common Mistakes

These are the most common reasons candidates fail the Michigan insurance exam:

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