Michigan Life & Health
Insurance Exam

To pass the Michigan insurance licensing exam on your first attempt, follow this proven strategy: First, complete the required 40 hours of DIFS-approved pre-licensing education. Second, study the key content areas systematically — life insurance, health insurance, annuities, and Michigan-specific regulations under Act 218 of 1956. Third, complete at least 400+ practice questions until you consistently score 80% or higher, well above the 70% passing threshold. Fourth, focus extra time on Michigan Insurance Code topics including replacement regulations, grace periods (30-day life, 10-day individual health, 31-day group health), free-look periods, and Michigan Guaranty Association limits. Finally, take full-length timed practice exams (160 questions in 2.5 hours) to build stamina.

The combined Michigan Life, Accident & Health insurance exam has 160 multiple-choice questions with a 2-hour 30-minute time limit. You need a score of 70% to pass, meaning at least 112 correct answers out of 160. Michigan also offers separate exams: Life-Only (80 questions) and Health-Only (80 questions), both requiring 70% to pass (56 correct out of 80). The exam is administered by PSI Services. We recommend aiming for 80%+ on practice tests to give yourself a comfortable margin on exam day.

The Michigan Life, Accident & Health exam covers several major content areas. Life insurance (~35%): policy types (term, whole, universal, variable), beneficiary designations, settlement options, and group life plans. Health insurance (~28%): individual and group medical expense coverage, the Affordable Care Act, disability income insurance, long-term care, and Medicare/Medigap plans. Annuities (~12%): fixed, variable, indexed, immediate, and deferred annuities, including taxation rules. General Insurance Principles (~10%): fundamental concepts, risk management, insurable interest, and types of insurers. Michigan-specific content (~15%): the Michigan Insurance Code (Act 218 of 1956), DIFS regulations, replacement rules, free-look and grace periods, ethics, and unfair trade practices under MCL 500.2001.

The Michigan insurance exam fee is $41 per attempt, paid to PSI Services when you schedule. The exam is administered by PSI Services, either at PSI testing centers across Michigan (Detroit, Grand Rapids, Lansing, Flint, Ann Arbor, and others) or via remote online proctoring from your home or office. To schedule, visit candidate.psiexams.com and create an account. If you fail and retake, you pay the $41 fee again each time. Additional costs include fingerprinting through IdentoGO and the license application fee (approximately $15) submitted through NIPR.

Michigan requires 40 hours of DIFS-approved pre-licensing education before you can take the PSI state exam. This covers both the life and health lines combined. Courses are available online (self-paced) or in-person from DIFS-approved education providers, typically costing between $75 and $250. After completing the course, your provider will report your completion to DIFS and PSI electronically. You must be at least 18 years old, submit fingerprints through IdentoGO for a criminal background check, and provide a valid government-issued photo ID on exam day.

If you fail the Michigan insurance exam, you can retake it with no mandatory waiting period. Each retake requires paying the $41 PSI exam fee again. Your score report will include a diagnostic breakdown showing your performance by topic area. Use this to focus your additional studying on weak areas. Michigan Insurance Code sections — particularly replacement regulations, grace periods, and DIFS enforcement actions — are the most common areas where candidates lose points.

The Michigan Life and Health Insurance Guaranty Association protects Michigan policyholders if a licensed insurance company becomes insolvent. Coverage limits are: up to $300,000 in life insurance death benefits per insured, up to $100,000 in cash surrender or withdrawal values for life insurance, and up to $300,000 in health insurance benefits. These limits are frequently tested on the Michigan licensing exam — know the exact dollar amounts.

The Michigan insurance licensing exam is administered by PSI Services. You can take it at a PSI testing center in Michigan or via PSI remote online proctoring from your own computer. For remote testing, you need a computer with webcam, microphone, and a stable internet connection. The exam content, format, fee, and passing score are identical regardless of delivery method. Schedule at candidate.psiexams.com.