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How to become an insurance agent in Michigan

Written by Elizabeth Rivelli
<h5>Edited by <a href=""><span style="text-decoration: underline;">Alyssa DiCrasto</span></a></h5>
Edited by Alyssa DiCrasto
Edited by Alyssa DiCrasto
Published on 2024-03-05

Read time: 3 min

Becoming a licensed insurance agent in Michigan can be a lucrative career, especially if you open an independent agency. As an insurance agent in Michigan, your career is self-directed and there is unlimited earnings potential. Additionally, you can sell whatever insurance products you want and pick the insurance companies you work with. 

Michigan has unique requirements for becoming a licensed agent, so it’s important to understand the qualifications and costs before you start the process of getting a license. In this guide, we’ll explain how to become a licensed insurance agent in Michigan. 

How to become a licensed insurance agent in Michigan

In the state of Michigan, you must have a property and casualty (P&C) insurance license to sell auto insurance. There are additional requirements if you want to open an independent insurance agency. 

If you are interested in becoming a licensed insurance agent in Michigan, it’s a good idea to educate yourself on the requirements. You must take a pre-licensing course, pass the licensing exam, and apply for a license before you can start selling insurance products. There are also continuing education requirements after you obtain your license. 

Licensing requirements for P&C insurance agents in MI

Every state has slightly different licensing requirements for P&C insurance agents. Learn how to become an insurance agent in MI: 

  1. Take a pre-licensing course: The first step is to complete a pre-licensing education course. For P&C insurance, you must complete 40 hours of total training, which consists of 34 hours of property and liability insurance principles, and six hours of professional ethics and Michigan insurance laws. You are allowed to complete the pre-licensing course online, in-person, or through self-study. 
  1. Take the licensing exam: Once the pre-licensing education requirements have been satisfied, you can take the state licensing exam. It is a proctored exam that can be taken in-person or online. In Michigan, the P&C license exam has 150 questions and you must pass with a score of 74% or better. There is a $41 fee for each exam attempt. 
  1. Apply for an insurance license: After you pass the licensing exam, you will apply for a Michigan insurance license. You must file an Electronic Resident Licensing (ERL) application with the National Insurance Producer Registry (NIPR). You must also answer several background questions regarding your criminal history. The total application fee is $15. Once approved, you will receive your insurance license in the mail within 10 to 14 business days.

Registering for a Licensing Exam

Michigan’s insurance agent exams are conducted by PSI Exams. To register for the insurance licensing exam in Michigan, you can visit this page to view test options and find available exam dates in your area. You can choose an in-person or online exam, which are both proctored. You will need to provide the following information when booking your exam: 

  • Full name that matches your ID 
  • Social Security number or Licensing Authority/Sponsor issued ID number 
  • Phone number 
  • Mailing address 
  • Email address 

You will also have to pay the exam fee upon registration. For P&C licensing exams in Michigan, the exam fee is $41 per attempt. PSI Exams will accept payment with all major credit cards or an exam voucher.  

What to do after you get your MI insurance license

After getting your P&C insurance license in Michigan, you must meet the continuing education requirements. Licensed resident agents must earn a minimum of 24 credits of state-approved education every two years. Of those 24 credits, at least three credits must be related to ethics. You can find a list of continuing education courses on Michigan’s Department of Insurance and Financial Services (DIFS) website. 

In the state of Michigan, insurance licenses do not expire as long as you meet the continuing education requirements. You don’t have to apply to renew your license or pay a renewal fee to keep your license in good standing.  

To best serve your clients, it’s also important to stay up to date on trends and current happenings in the P&C insurance industry. For instance, keeping tabs on car insurance rates and how they’re changing can help your clients find the cheapest policy for their situation.  

You can use our guide to Michigan rates to keep a pulse on car insurance trends in MI.  

Frequently asked

What do I need to sell car insurance in Michigan?

To sell car insurance in Michigan, you need a valid P&C insurance license. To get a license, you must complete the pre-licensing education requirements, pass the licensing exam with a score of 74% or better, and apply for a license. Once you have your license, you must complete at least 24 hours of approved continuing education courses every two years.

What disqualifies you from getting an insurance license in Michigan?

You are disqualified from getting an insurance license in Michigan if you are under 18 years old or have committed certain crimes. While having a criminal record does not automatically disqualify you from getting an insurance license, failing to disclose criminal convictions can lead to disqualification. According to the Michigan DIFS, it’s not recommended to apply for a license if you have been convicted of a felony within the last 10 years that involved a threat against another individual or a felony of fiduciary nature, such as fraud or extortion.

What exam is required to sell insurance in Michigan?

In Michigan, insurance licenses correspond to the type of insurance you want to sell. For example, if you want to sell car insurance or home insurance, you need a P&C insurance license. If you want to sell life insurance, you must get a life & health insurance license. Every license has different requirements for pre-licensing education and continuing education.

What are the different types of insurance agent licenses in Michigan?

There are many different types of insurance licenses in Michigan, including life and health, property and casualty, accident and health, and personal lines. There are separate licenses for insurance adjusters. However, insurance adjusters are not required to take a pre-licensing education course.