Michigan Property Producer/Solicitor
Series 16-67
100 Items - 2 Hours
75% (75 Correct to Pass)
Percentage # of Items
Insurance Regulation 10% (10 items) 10% 10
Company Regulation
Producer Appointment (500.1208a, .1208b, .1209, .1411)
Termination of Appointment (500.1208b, .1209)
Producer Regulation
Duties (500.1201a, .1202)
Commissions (500.1240, .2011)
Types of Licensees (500.1206)
Producer (500.240, 500.1201, .1201a, .1204, .1205, .1206, .1206b, .1240)
Counselor (500.1232, .1234, .1236)
Business Entity (500.1201, .1205)
Maintenance and Duration
Change of Name and Address (500.1206(5), .1238(1))
Reporting of Actions (500.1208b, .1239, .1244, .1246, .1247)
Assumed Names (500.1211a)
Continuing Education Requirements (500.1204, .1204c, .1204f, .1206)
Disciplinary Actions
Cease and Desist Order (500.1244, .2038)
Suspension, Revocation, Refusal to Issue or Renew (500.1200, .1209, .1239, .1244, .1379, .2029, .2043)
Penalties and Fines (500.1242, .1244, .1379, .2038, .2040, .2064, .2069)
Unfair and Prohibited Insurance Trade Practices (500.1207, .1216, .1239, .1244, .2003, .2006-.2014, .2016-.2021, .2026, .2029, .2059, .2062)
Misrepresentation (500.2005, .2005a, .2055, .2057, .2064, .2218)
False Information and Advertising (500.2001, .2002, .2005, .2005a, .2007, .2055, .2057, .2064; R500.651-.659; R500.1371-.1387)
Inducement (500.2005(f), .2024, .2064(2), .2066, .2069, .2070)
False Statement (500.1015, .2014, .2018, .2055, .2062, .2474, .2666)
Deception (500.2007, .2009; 600.2911)
Boycott, Coercion, and Intimidation (500.1242, .2012)
Unfair Discrimination (500.2019, .2020, .2027, .2082)
Rebating (500.2024b, .2066, .2069, .2070)
Fiduciary Responsibilities (500.1207)
Forgery (500.1239)
Insurance Fraud Regulation (500.2088, .4501, .4503, .4507, .4511, 752.1005)
Consumer Privacy Regulation (500.501, .503, .505, .507, .513, .515, .533, .535, .2005a, .4501, .4507, .4509; R500.551-.560)
General Insurance 15% (15 items) 15% 15
Concepts
Risk Management Key Terms
Risk
Exposure
Hazard
Peril
Loss
Methods of Handling Risk
Avoidance
Retention
Sharing
Reduction
Transfer
Elements of Insurable Risks
Adverse Selection
Law of Large Numbers
Reinsurance
Insurers
Types of Insurers
Stock Companies
Mutual Companies
Financial Status (Independent Rating Services)
Distribution Systems
Producers and General Rules of Agency
Producer/Insurer Relationship
Authority and Powers of Producers
Express
Implied
Apparent
Responsibilities to the Applicant/Insured
Contracts
Elements of a Legal Contract
Offer and Acceptance
Consideration
Competent Parties
Legal Purpose
Distinct Characteristics of an Insurance Contract
Contract of Adhesion
Aleatory Contract
Personal Contract
Page 1 of 5
Michigan Property Producer/Solicitor
Series 16-67
100 Items - 2 Hours
75% (75 Correct to Pass)
Percentage # of Items
Unilateral Contract
Conditional Contract
Legal Interpretations affecting Contracts
Ambiguities in a Contract of Adhesion
Reasonable Expectations
Indemnity
Utmost Good Faith
Representations/Misrepresentations
Warranties
Concealment
Fraud
Waiver and Estoppel
Property Insurance Basics 25% (25 items) 25% 25
Principles and Concepts
Insurable Interest
Underwriting
Function
Loss Ratio
Hazards
Physical
Moral
Morale
Causes of Loss (Perils)
Named Perils versus Special (Open) Perils
Direct Loss
Consequential or Indirect Loss
Blanket versus Specific Insurance
Basic Types of Construction
Loss Valuation
Actual Cash Value
Replacement Cost
Functional Replacement Cost
Agreed Value
Stated Amount
Policy Structure
Declarations
Definitions
Insuring Agreement or Clause
Additional/Supplementary Coverage
Conditions
Exclusions
Endorsements
Common Policy Provisions
Insureds - Named, First Named, Additional
Policy Period
Policy Territory
Cancellation and Nonrenewal
Deductibles
Other Insurance
Nonconcurrency
Primary and Excess
Pro Rata
Property Limits
Restoration/Nonreduction of Limits
Coinsurance
Vacancy or Unoccupancy
Named Insured Provisions
Duties after Loss
Assignment
Abandonment
Insurer Provisions
Liberalization
Subrogation
Salvage
Claim Settlement Options
Third-Party Provisions
Standard Mortgage Clause
Loss Payable Clause
No Benefit to the Bailee
Indemnification Provisions
Role of Applications and Binders in Insurance Transactions
Insurance Claims Handling
Michigan Laws, Regulations, and Required Provisions
Michigan Property and Casualty Guaranty Association (500.7901-.7949)
Page 2 of 5
Michigan Property Producer/Solicitor
Series 16-67
100 Items - 2 Hours
75% (75 Correct to Pass)
Percentage # of Items
Mandatory Fire Policy Provisions (500.2833)
Cancellation and Nonrenewal (500.2123, .3020)
Appraisal (500.2833)
Terrorism Risk Insurance Program (15 U.S.C. 6701; Public Law 107-297, 109-144, 110-160)
Termination of Authority to Represent Insurer (500.1209)
Essential Insurance Act (500.2101-.2131)
Dwelling Policy 8% (8 items) 8% 8
Characteristics and Purpose
Property Coverages
Coverage A - Dwelling
Coverage B - Other Structures
Coverage C - Personal Property
Coverage D - Fair Rental Value
Coverage E - Additional Living Expense
Other Coverages
General Exclusions
Conditions
Selected Endorsements
Special Provisions - Michigan
Automatic Increase in Insurance
Broad Theft Coverage
Dwelling Under Construction
Homeowners Policy 13% (13 items) 13% 13
Coverage Forms
HO-2 through HO-8
Special
Definitions
Section I - Property Coverages
Coverage A - Dwelling
Coverage B - Other Structures
Coverage C - Personal Property
Coverage D - Loss of Use
Additional Coverages
Perils Insured Against
Exclusions
Conditions
Selected Endorsements
Special Provisions - Michigan
Limited Fungi, Wet or Dry Rot, or Bacteria Coverage
Permitted Incidental Occupancies - Residence
Earthquake
Scheduled Personal Property/Personal Articles Floater
Personal Property Replacement Cost
Home Day Care
Watercraft
Home Business Insurance Coverage
Commercial Package Policy (CPP) 14% (14 items) 14% 14
Components of a Commercial Policy
Common Policy Declarations
Common Policy Conditions
Interline Endorsements
One or More Coverage Parts
Commercial Property
Commercial Property Conditions Form
Coverage Forms
Building and Personal Property
Condominium Association
Condominium Commercial Unit-Owners
Builders Risk
Business Income
Legal Liability
Extra Expense
Causes of Loss Forms
Basic
Broad
Special
Selected Endorsements
Ordinance or Law
Spoilage
Peak Season Limit of Insurance
Value Reporting Form
Commercial Crime
General Definitions
Burglary
Page 3 of 5
Michigan Property Producer/Solicitor
Series 16-67
100 Items - 2 Hours
75% (75 Correct to Pass)
Percentage # of Items
Theft
Robbery
Coverages
Employee Theft
Forgery or Alteration
Inside the Premises - Robbery or Safe Burglary of Other Property
Outside the Premises
Funds Transfer Fraud
Money Orders and Counterfeit Money
Commercial Inland Marine
Nationwide Marine Definition
Commercial Inland Marine Conditions Form
Inland Marine Coverage Forms
Accounts Receivable
Bailee's Customer
Commercial Articles
Contractors Equipment Floater
Electronic Data Processing
Equipment Dealers
Installation Floater
Jewelers Block
Signs
Valuable Papers and Records
Transportation Coverages
Common Carrier Cargo Liability
Motor Truck Cargo Forms
Transit Coverage Forms
Equipment Breakdown
Equipment Breakdown Protection Coverage Form
Selected Endorsement
Actual Cash Value
Farm Coverage
Farm Property Coverage Form
Coverage A - Dwellings
Coverage B - Other Private Structures
Coverage C - Household Personal Property
Coverage D - Loss of Use
Coverage E - Scheduled Farm Personal Property
Coverage F - Unscheduled Farm Personal Property
Coverage G - Other Farm Structures
Mobile Agriculture Machinery and Equipment Coverage Form
Livestock Coverage Form
Definitions
Causes of Loss (Basic, Broad, and Special)
Conditions
Exclusions
Limits
Additional Coverages
Businessowners Policy 10% (10 items) 10% 10
Characteristics and Purpose
Businessowners Section I - Property
Coverage
Exclusions
Limits of Insurance
Deductibles
Loss Conditions
General Conditions
Optional Coverages
Definitions
Businessowners Section III - Common Policy Conditions
Selected Endorsements
Protective Safeguards
Utility Services - Direct Damage
Utility Services - Time Element
Other Coverages and Options 5% (5 items) 5% 5
National Flood Insurance Program
"Write Your Own" versus Government
Coverage
Limits
Deductibles
Other Policies
Boatowners
Miscellaneous (Recreational) Type Vehicles
Surplus Lines
Page 4 of 5
Michigan Property Producer/Solicitor
Series 16-67
100 Items - 2 Hours
75% (75 Correct to Pass)
Percentage # of Items
Definitions and Markets
Licensing Requirements
Alternative Funding Mechanisms
Self-Insured
Risk Retention Groups
Page 5 of 5
