Last reviewed: July 20, 2026

Michigan Property & Casualty Insurance Practice Exam Free - 2026

Use this free Michigan property and casualty insurance practice exam page to review licensing concepts before exam day. The page includes crawlable Michigan regulator and exam-source context, while the interactive practice test loads on the same URL.

Michigan property and casualty exam quick facts

State: Michigan
License category: Property & Casualty Insurance
Regulator: Michigan Department of Insurance and Financial Services
Exam vendor/source note: Michigan DIFS identifies PSI Services LLC as its licensing examination vendor and states that remote proctored insurance examinations have been discontinued for Michigan.
Core practice topics: property insurance, casualty insurance, liability, auto, homeowners, commercial coverage, claims basics, ethics, and state-specific insurance rules.
Practice resource type: Independent free study aid with instant practice questions and explanations.

Michigan P&C exam facts (verified July 2026)

Exam structure	Combined Property & Casualty exam (Series 16-81), with separate Property (16-67) and Casualty (16-68) options
Exam vendor	PSI Services (for Michigan DIFS)
Number of questions	150 scored questions on the combined exam (separate Property or Casualty exams: 100 each); a small number of unscored experimental items may be added
Time limit	150 minutes combined (120 minutes for a single-line exam)
Passing score	74% on the combined exam (Property-only 75%, Casualty-only 74%)
Exam fee	$41 per examination
Prelicensing education	40 hours for combined P&C (20 hours per single line)

Source: Michigan DIFS / PSI Candidate Information Bulletin (effective June 2025). Verified 2026-07-20. Exam details change - always confirm against the current official candidate handbook before scheduling.

Official Michigan sources to verify

Use these official or exam-vendor resources to confirm the current candidate handbook, scheduling process, fees, identification rules, retake rules, prelicensing rules, fingerprint/background rules where applicable, and license-specific requirements.

State-specific preparation notes

Michigan candidates should verify current in-person exam scheduling rules because remote proctored insurance exams were discontinued.
Use DIFS/PSI information to confirm the correct P&C line, content outline, test center, and application timing.
Study Michigan-specific law and producer responsibilities separately from national P&C coverage concepts.

Suggested study flow

Open the official candidate handbook or content outline for Michigan.
Take a practice set on this page without looking up answers.
Review every missed explanation and group weak areas by topic.
Return to the official outline and study state-specific sections separately from national insurance concepts.
Before exam day, verify scheduling, identification, testing environment, and retake rules through official sources.

Independent study disclaimer

Insurance Exam Practice is an independent educational resource. It is not affiliated with Michigan Department of Insurance and Financial Services, PSI, NIPR, NAIC, or any other exam administrator unless specifically stated. Practice questions are for study support only and do not guarantee exam results, licensing eligibility, or licensing approval.

Free Michigan Property & Casualty practice questions with answers

These free Michigan property and casualty exam questions come with complete answers and explanations - the same material the interactive mock exam draws from.

Question 1: What is an 'umbrella' liability policy?

A. Excess liability coverage above underlying primary policies
B. Coverage for rain damage
C. A comprehensive homeowners policy
D. Insurance for umbrella manufacturers

Correct answer: A. Excess liability coverage above underlying primary policies

Explanation: An umbrella policy provides excess liability coverage above the limits of underlying primary policies (auto, homeowners). It also may cover claims excluded by underlying policies.

Question 2: What is 'negligence'?

A. Ignoring policy terms
B. Failure to exercise reasonable care, resulting in harm to others
C. Intentional harm
D. Refusing to pay premiums

Correct answer: B. Failure to exercise reasonable care, resulting in harm to others

Explanation: Negligence is the failure to exercise the degree of care that a reasonable person would exercise under similar circumstances, resulting in harm or damage to another person or property.

Question 3: What are the elements required to prove negligence?

A. Contract and consideration
B. Liability and premium payment
C. Intent and malice
D. Duty, breach of duty, proximate cause, and damages

Correct answer: D. Duty, breach of duty, proximate cause, and damages

Explanation: To prove negligence, a plaintiff must establish four elements: (1) the defendant had a duty of care, (2) the defendant breached that duty, (3) the breach was the proximate cause of injury, and (4) actual damages resulted.

Question 4: What does 'liability' coverage in auto insurance protect?

A. Theft of your vehicle
B. Mechanical breakdowns
C. Your own vehicle
D. Claims from others you injure or whose property you damage

Correct answer: D. Claims from others you injure or whose property you damage

Explanation: Auto liability coverage protects you financially when you're legally responsible for injuring others or damaging their property in an accident. It pays their medical bills, property damage, and legal defense costs.

Question 5: What is 'collision' coverage?

A. Coverage for towing after a collision
B. Coverage for liability in a collision
C. Coverage for damage to your vehicle from colliding with another object
D. Coverage when vehicles are in a demolition derby

Correct answer: C. Coverage for damage to your vehicle from colliding with another object

Explanation: Collision coverage pays for damage to your own vehicle when it collides with another vehicle or object (like a tree or guardrail), regardless of who is at fault.

Question 6: What is 'comprehensive' coverage in auto insurance?

A. All-inclusive collision coverage
B. Full liability coverage
C. Coverage for damage from non-collision events like theft, fire, or hail
D. Coverage for all drivers

Correct answer: C. Coverage for damage from non-collision events like theft, fire, or hail

Explanation: Comprehensive coverage pays for damage to your vehicle from causes other than collision, such as theft, vandalism, fire, natural disasters, hitting an animal, or falling objects.

Question 7: What is 'uninsured motorist' (UM) coverage?

A. Coverage for unlicensed drivers
B. Coverage for driving without insurance
C. Coverage for injuries caused by a driver who has no insurance
D. Coverage for rental cars

Correct answer: C. Coverage for injuries caused by a driver who has no insurance

Explanation: Uninsured motorist coverage protects you if you're injured by a driver who has no liability insurance or in a hit-and-run accident. It covers your medical expenses and damages.

Question 8: What is 'underinsured motorist' (UIM) coverage?

A. Coverage when the at-fault driver's insurance is insufficient to cover your damages
B. Low-cost basic insurance
C. Coverage for drivers under 21
D. Coverage for underpaid claims

Correct answer: A. Coverage when the at-fault driver's insurance is insufficient to cover your damages

Explanation: Underinsured motorist coverage pays the difference when the at-fault driver's liability limits are not enough to cover your damages. It fills the gap between their coverage and your actual losses.

Question 9: What is 'medical payments' (MedPay) coverage in auto insurance?

A. Liability coverage for medical expenses
B. Coverage that pays medical bills for you and passengers regardless of fault
C. Health insurance for drivers
D. Coverage for medical equipment in vehicles

Correct answer: B. Coverage that pays medical bills for you and passengers regardless of fault

Explanation: Medical payments coverage pays for medical expenses for you and your passengers injured in an auto accident, regardless of who caused the accident. It's no-fault coverage with relatively low limits.

Question 10: What is 'personal injury protection' (PIP)?

A. Protection against lawsuits
B. Personal liability coverage
C. Protection for your vehicle's interior
D. No-fault coverage for medical expenses, lost wages, and other costs

Correct answer: D. No-fault coverage for medical expenses, lost wages, and other costs

Explanation: Personal injury protection (PIP) is no-fault coverage that pays for medical expenses, lost wages, and other costs for you and passengers regardless of who caused the accident. It's required in no-fault states.

Question 11: What is a 'no-fault' auto insurance state?

A. A state without auto insurance requirements
B. A state where no one is ever at fault
C. A state where the government pays claims
D. A state where each driver's insurance pays their own damages regardless of fault

Correct answer: D. A state where each driver's insurance pays their own damages regardless of fault

Explanation: In no-fault states, each driver's own insurance pays for their medical expenses and certain other losses regardless of who caused the accident. This limits lawsuits and speeds up payments.

Question 12: What are the main coverages in a homeowners policy?

A. Only dwelling coverage
B. Property only
C. Dwelling, other structures, personal property, loss of use, liability, and medical payments
D. Just liability and medical

Correct answer: C. Dwelling, other structures, personal property, loss of use, liability, and medical payments

Explanation: A standard homeowners policy includes: Coverage A (dwelling), Coverage B (other structures), Coverage C (personal property), Coverage D (loss of use), Coverage E (personal liability), and Coverage F (medical payments).

Want more than 12 questions? The interactive test on this page draws from the full 270-question Property & Casualty bank, and you can download the free Property & Casualty questions and answers PDF to study offline.

Michigan property and casualty practice exam FAQ

Is this Michigan property and casualty practice exam official?

No. This page is an independent study resource and is not an official exam from Michigan Department of Insurance and Financial Services, PSI, Pearson VUE, PSI, Prometric, NIPR, NAIC, or any other regulator or exam administrator.

What should I study for the Michigan P&C insurance exam?

Start with the current candidate handbook or content outline, then review property insurance, casualty insurance, liability, auto, homeowners, commercial coverage, claims basics, ethics, and state-specific insurance rules.

Can this practice test guarantee that I will pass in Michigan?

No. Practice questions can help you find weak areas, but they do not guarantee passing, licensing eligibility, or application approval.

Where should I verify Michigan P&C exam rules?

Verify scheduling, fees, identification, prelicensing, retake, fingerprinting, and application rules through Michigan Department of Insurance and Financial Services and the current exam-vendor resources.

How should I use this page before exam day?

Take a practice set, review missed explanations, compare weak topics against the official Michigan outline, and re-test only after reviewing the relevant coverage concepts and state rules.

Also preparing for another license in Michigan?

Property & Casualty practice exams in nearby states:

Browse all states on the Property & Casualty Insurance practice test hub, or Property & Casualty Exam Questions and Answers PDF (Free Download).