10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
These 10 free MI-PC questions are organized by exam domain, so you can see how each part of the Michigan Property & Casualty Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
DIFS has taken no action against a producer's license. One Michigan insurer terminates the producer's property and casualty appointment, while another insurer's appointment remains valid. What is the immediate effect?
Correct answer: B - Authority for that insurer ends; the other valid appointment remains
A Michigan producer offers an unlicensed real estate agent $40 for each referred buyer who actually purchases a homeowners policy. The agent gives no coverage advice. How should this compensation arrangement be classified?
Correct answer: C - Improper because payment depends on the purchase of insurance
The insurer supplied branded office signs, applications, and quoting access but privately restricted the producer's binding authority. After the producer said coverage was bound, an applicant reasonably relied on the insurer's outward conduct. The applicant's argument rests on:
Correct answer: A - Apparent authority
Although an insurer did not intentionally relinquish a proof-of-loss deadline, its conduct reasonably led the insured to believe the deadline had been extended. The insured relied on that conduct and missed the date. The doctrine most directly implicated is:
Correct answer: D - Estoppel
Loss ratio is 63% and expense ratio is 31%. Ignoring investment income, what does the resulting combined ratio indicate?
Correct answer: A - 94%; an underwriting profit
The unmarked spill was negligent, but a customer was injured by an unrelated falling ceiling panel before reaching it. Because the spill played no role in the injury, a negligence claim based on the spill lacks:
Correct answer: B - Causation linking the spill to the injury
Replacement value is $600,000; the insurance limit is $360,000; coinsurance is 80%; the covered loss is $120,000; and the deductible is $1,000. Replacement-cost conditions are satisfied. Before other insurance, the insurer pays:
Correct answer: D - $89,000
Wind has torn shingles from an insured building, and rain is still entering. The adjuster cannot inspect until the next day. The best next step is to:
Correct answer: C - Make reasonable temporary repairs, document damage, and keep receipts
Under an unendorsed DP-3 on a tenant-occupied dwelling, burglars pry open an exterior door and steal the landlord's tools kept there for premises maintenance. Coverage is most accurately described as:
Correct answer: B - Door damage may be covered; the tools require a broad theft endorsement
No exclusion or special limit applies when a homeowner accidentally drops an unscheduled camera down a stairwell and it shatters. Which form provides an open-peril basis for the owner's personal property?
Correct answer: C - HO-5 Comprehensive
The MI-PC exam also covers these domains. Drill them in the full free practice test:
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