State RegulationsMI specificDifficulty 2/5
A Lansing producer's license recently lapsed for noncompliance. What does the Michigan Insurance Code provide?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
M.C.L. 500.1206(3) allows a license that lapsed for noncompliance to be reinstituted without an examination within 12 months of the lapse. Once 12 months pass, the producer must submit a new application and pass the examination again, so acting within the 12-month window preserves the license without retesting.
Why the other options are wrong
- A) The examination is required only after the 12-month reinstitution window closes.
- B) The lapse is curable for 12 months under M.C.L. 500.1206(3), so it is not permanent.
- C) Reinstitution within the 12-month window does not require a public hearing.
Memory hook
Lapsed? 12 months to come back exam-free.