MI Property & Casualty study guide
MI Property & Casualty · Work through your exam, one topic at a time.
The Michigan Property and Casualty Insurance Producer license is the credential a person needs to sell, solicit, or negotiate fire, homeowners, dwelling, auto, commercial package, and workers' compensation coverage in the state. It is issued by the Michigan Department of Insurance and Financial Services (DIFS) after an applicant completes prelicensing education, passes the state licensing exam, submits fingerprints, and applies for the license. The MI Property & Casualty study guide has 11 sections and about 3,582 words.
01Insurance Regulation
Insurance regulation in the United States is primarily a state function, preserved by the McCarran-Ferguson Act (1945). In Michigan the regulator is the Department of Insurance and Financial Services (DIFS), headed by a commissioner appointed by the governor.
319 words, about 2 min02General Insurance Concepts
Risk is uncertainty about loss; a peril is the cause of loss; a hazard is a condition that increases the chance or severity of loss. Physical hazard (icy steps), moral hazard (dishonesty or intent to collect), and morale hazard (carelessness) are tested constantly.
332 words, about 2 min03Property Insurance Basics
Every property policy contains declarations, an insuring agreement, conditions, exclusions and definitions. Coverages are typically lettered: A building, B other structures, C personal property, D loss of use or rental value.
327 words, about 2 min04Casualty Insurance Basics
Four elements must be proven: duty owed, breach of that duty, proximate cause, and damages. Defenses include comparative or contributory negligence, assumption of risk, and intervening cause.
313 words, about 2 min05Dwelling Policy
The Dwelling Property forms (DP-1 basic, DP-2 broad, DP-3 special) insure a dwelling used principally for residential purposes: owner-occupied, rented to others, or kept as a seasonal or second home. Because these are monoline property forms, they include no personal liability or medical payments coverage unless Liability (Coverage L) and Medical Payments (Coverage M) are added by endorsement.
343 words, about 2 min06Homeowners Policy
HO-2 broad, HO-3 special, HO-5 comprehensive, HO-4 renters, HO-6 condominium/cooperative, and HO-8 modified replacement cost for older homes. HO-2, HO-3, HO-5 and HO-8 are for owner-occupied dwellings; HO-4 and HO-6 insure personal property and liability only.
342 words, about 2 min07Personal Automobile Insurance
Part A liability (split limits or a combined single limit), Part B medical payments, Part C uninsured and underinsured motorists, Part D damage to your auto (collision and other than collision), and Part E duties after an accident. Definitions drive the exam: your covered auto, newly acquired auto, temporary substitute, and non-owned auto.
351 words, about 2 min08Commercial Package Policy
The Commercial Package Policy is a packaging mechanism rather than a single coverage. Common policy declarations and common conditions sit on top, and the package must include at least two coverage parts: commercial property, commercial general liability, commercial auto, commercial crime, inland marine, or equipment breakdown.
323 words, about 2 min09Businessowners Policy
The Businessowners Policy is a simplified package for small, low-hazard businesses such as apartments, offices, retail, service and processing risks that fall within eligibility rules on building size, gross sales and occupancy. It combines property and liability in one policy, uses no coinsurance, and is written in a streamlined format.
309 words, about 2 min10Workers' Compensation
Workers compensation is a statutory, no-fault benefit system. Employees give up the right to sue the employer for negligence, and the employer pays medical, disability and death benefits regardless of fault - the exclusive remedy.
311 words, about 2 min11Other Coverages and Michigan-Specific Issues
Inland marine covers property in transit and mobile or specialized property: motor truck cargo, bailee customers' goods, builders risk, electronic data processing equipment, and fine arts. Crime coverage is separate and does not depend on a property peril - employee dishonesty, forgery or alteration, computer fraud, theft of money and securities, and safe burglary.
312 words, about 2 min