State RegulationsMI specificDifficulty 1/5
What annual fee must an insurer pay for each producer it appoints in Michigan?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
M.C.L. 500.1208a(4) sets the appointment fee, and the amount is fixed by M.C.L. 500.240(1)(c) of the Insurance Code of 1956: $5.00 per year per producer, and the same $5.00 applies to each renewal appointment. The fee is nonrefundable, so an insurer that cancels an appointment mid-year does not recover a prorated share.
Why the other options are wrong
- B) $10.00 is the license application fee for a producer under M.C.L. 500.240, not the annual appointment fee.
- C) $41 is the per-attempt fee for the Michigan licensing examination administered by DIFS's contracted testing vendor, not an appointment charge.
- D) $100.00 is the annual license fee for a surplus lines agent under M.C.L. 500.240, not the producer appointment fee.
Memory hook
Five bucks gets you appointed: $5 to appoint, $5 to renew, every year.