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Michigan Life & Health Insurance Practice Test
Practice with 2,180 national questions and 450 Michigan-specific questions. Every question is free to answer and includes a full explanation.
Study Michigan rules alongside national coverage and contract concepts. After each set, distinguish a misunderstood policy principle from a missed state detail so your next review addresses the right topic.
Try a free 10-question Michigan practice set
National concepts and Michigan rules, with explanations after each answer. No signup or timer.
Review Michigan practice questions
Read the reasoning behind each answer, then try the practice set above.
Which Michigan insurer is exempt from the requirement to mail a written lapse notice at least 30 days before an individual life policy's coverage terminates for nonpayment?
Answer: A. An insurer that collects a majority of its annual premium in person
Why A is correct
M.C.L. 500.4012 excuses from the 30-day mailed lapse notice any insurer that collects a majority of its annual premium in person. The rationale is that a company dealing face-to-face with most premium payers already has direct contact about nonpayment. All other insurers must mail the written notice to the policyowner's last known address at least 30 days before termination.
Why the other options are wrong
- B) Direct-response sellers get no exemption; the exception turns on in-person collection of a majority of annual premium.
- C) Collection by mail is the opposite of the exemption's trigger; mailed-payment insurers must still send the notice.
- D) An automatic premium loan provision does not lift the notice duty; only majority in-person collection does.
Memory hook
Collect premiums face-to-face? Skip the mailed lapse notice.
Which statement accurately describes MLHIGA aggregate limits under M.C.L. 500.7704?
Answer: D. The aggregate cap is $300,000 per life per insurer insolvency, except for basic hospital, medical, and surgical benefits capped at $500,000, and multiple nongroup life policies of one owner carry a $5,000,000 aggregate limit.
Why D is correct
M.C.L. 500.7704 sets the MLHIGA aggregate cap at $300,000 per life per insurer insolvency for most benefit categories, carves out basic hospital, medical, and surgical benefits at $500,000, and provides that multiple nongroup life insurance policies owned by one person receive an aggregate limit of $5,000,000. Understanding these layers matters because an owner with several contracts cannot simply stack unlimited coverage above the per-life caps.
Why the other options are wrong
- A) $100,000 is the cash surrender value and non-basic health benefit figure, not the overall aggregate cap.
- B) $250,000 is the annuity cap; the aggregate cap is not uniform at that figure for every product type.
- C) The statement ignores both the $500,000 basic hospital/medical/surgical exception and the $5,000,000 aggregate limit for multiple nongroup life policies of one owner.
Memory hook
Three-hundred aggregate, five-hundred hospital, five-million nongroup life stack.
An independently employed web designer in Royal Oak is the business's only worker and applies for small-employer health coverage. The carrier denies the application, asserting the business is too small to be a small employer. What is the outcome under Michigan law?
Answer: C. The denial must be reversed; an employer with 1 to 50 full-time-equivalent employees, including a one-person business, is a small employer
Why C is correct
M.C.L. 500.3701(q) sets the small-employer range at 1 to 50 full-time-equivalent employees, so a one-person business falls within the definition, and M.C.L. 500.3707 obligates carriers to make coverage available to a small employer's eligible employees. The carrier's too-small rationale restates the superseded pre-2018 floor of 2 employees.
Why the other options are wrong
- A) The 2-employee floor was eliminated effective January 1, 2018; the current floor is 1.
- B) Self-employment does not disqualify an employer that fits the 1 to 50 definition.
- D) No federal complaint is a precondition; the availability duty arises directly under the Michigan Insurance Code.
Memory hook
One worker is enough — Michigan small group starts at 1.
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Use our state guide for exam formats, fees, registration, pre-licensing requirements and official sources. Guide facts last verified: 2026-09-02.
Read the Michigan exam guide →This free practice set is a study aid. It is not the official exam, a full-length simulation, or a prediction of your result.
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