Michigan Property & Casualty Course Notes

Exam weight: 10% (15 of 150 items). Memorize Michigan producer licensing and appointment rules, continuing education, disciplinary and unfair-trade-practice rules, and the Essential Insurance Act complaint path. Michigan-specific timing rules are highly testable.

• Treating a license and an insurer appointment as the same thing.

• Lock the Michigan numbers: 15-day appointment filing; 24 CE/2 years/3 ethics; 30-day regulatory-action reporting triggers.

Exam weight: 10.5% (16 items). This is the vocabulary-and-contract foundation for the rest of the exam: risk, insurer types, agency authority, contract formation, contract characteristics, and legal interpretation.

• Calling the dangerous condition the peril instead of the hazard.

• Translate the scenario into the definition before looking at answer choices.

Exam weight: 20% (30 items)—the largest domain. Expect definitions, policy-structure questions, negligence, valuation, limits, coinsurance math, other-insurance rules, duties after loss, and Michigan-required property provisions.

• Using 80% as the payout in every coinsurance problem.

• Memorize the coinsurance formula, then practice at least three examples.

Exam weight: 2.5% (4 items). Small domain, easy points: know DP form differences, Coverages A–D, exclusions/conditions, and the selected endorsements listed by PSI.

• Calling DP-2 open peril.

• This domain is form recognition. Memorize DP-1 = Basic, DP-2 = Broad, DP-3 = Special.

Exam weight: 15% (22 items). Know the forms, Section I versus Section II, open- versus named-peril treatment, major exclusions, and the Michigan/PSI-listed endorsements.

• Saying HO-3 is open peril for personal property.

• Lock A-B-C-D and E-F.

Exam weight: 15% (22 items). Michigan no-fault law is the centerpiece: mandatory PIP/PPI/BI-PD, PIP medical choices, PPI, residual liability, mini-tort, physical damage, PAP duties/endorsements, and commercial auto.

• Saying PPI pays all vehicle damage regardless of fault.

• Lock the Michigan numbers: PPI $1M; BI default 250/500, minimum 50/100; mini-tort $3,000 post-7/1/2020.

Exam weight: 12% (18 items). Learn CPP structure, CGL, commercial property, business income/extra expense, crime, inland marine, equipment breakdown, and farm coverage.

• Calling Coverage C liability coverage.

• A/B/C = BI-PD / Personal-Advertising / Medical.

Exam weight: 6% (9 items). Know the BOP as an integrated property/liability package for eligible businesses, its three sections, loss conditions, and the four selected endorsements named by PSI.

• Assuming BOP replaces workers’ compensation.

• BOP = package, not 'everything business.'

Exam weight: 5% (8 items). Michigan employer coverage triggers and benefit timing are very testable; also know the standard policy parts, federal worker laws, and premium mechanics.

• Saying one employee can never trigger coverage.

• Lock 3 employees OR 1 employee at 35 hrs/13 weeks.

Exam weight: 4% (6 items). Small but broad: umbrella/excess, specialty liability, surety, surplus lines, NFIP, boatowners, alternative funding, and cyber.

• Calling a surety bond two-party insurance.

• Surety: Principal → Obligee, backed by Surety.