Critical Numbers & Timeframes Quick Reference
Use this document to memorize all the important numbers for the Michigan Credit Insurance Producer Exam.
GRACE PERIODS (When you can be late paying premium)
Life Insurance
- Standard Grace Period: 31 days
Health Insurance (Varies by premium mode)
- Weekly premiums: 7 days
- Monthly premiums: 10 days
- Quarterly: 31 days
- Semi-Annual: 31 days
- Annual: 31 days
Memory Trick: More frequent payments = shorter grace period (Weekly 7 → Monthly 10 → All others 31)
CLAIM PROCESSING TIMEFRAMES (THE 20-15-90-60 RULE) ⭐⭐⭐
THIS IS THE MOST IMPORTANT SEQUENCE ON THE EXAM
| Step |
What Happens |
Timeline |
| 1 |
Customer gives Notice of Claim |
20 days |
| 2 |
Company provides claim forms |
15 days after notice |
| 3 |
Customer submits Proof of Loss |
90 days after loss |
| 4 |
Company pays claim |
60 days after proof (or “promptly”) |
Memory Device: 20-15-90-60
- 20 = Notice
- 15 = Forms
- 90 = Proof
- 60 = Payment
MEMORIZE THIS ABOVE ALL ELSE!
REINSTATEMENT WINDOWS
Health Insurance Reinstatement
- Must apply within: 45 days after lapse
- After 45 days: Reinstatement right is lost
Legal Actions (Health Insurance)
- Cannot sue until: 90 days after submitting proof of loss
LIFE INSURANCE SPECIFIC
Free Look Period
- 10 days to cancel and get full refund
Suicide Exclusion
- 2 years = NO coverage for suicide within 2 years
- After 2 years = Suicide IS covered
Grace Period (Life)
CREDIT INSURANCE SPECIFIC
Certificate of Insurance Delivery
- Within 30 days of incurring the debt (closed-end loans)
Credit Life Suicide Exclusion
- 2 years = NO coverage within 2 years
- After 2 years = Covered
Loan Coverage Extension (Michigan Rule)
- Can extend 15 days beyond maturity date maximum
- Once loan paid off: Insurance ends (max 15 days later)
Aggregate Provisions
- 90-day maximum limit on total benefits in any 3-month period
MICHIGAN LICENSING
Minimum Age
Pre-Licensing Education
Full Producer License:
- 40 hours total
- 34 hours insurance content
- 6 hours Ethics/Regulatory
Life or Health Insurance Only:
- 20 hours total
- 14 hours insurance content
- 6 hours Ethics/Regulatory
Ethics/Regulatory:
- 6 hours (required for ANY license type, both pre-licensing and CE)
Continuing Education (CE)
Renewal Cycle: Every 2 years
Required Hours: 24 hours every 2 years
- Must include 3 hours of Ethics/Regulatory
- Remaining 21 hours can be any approved topics
| Memory Trick: 40 hours = Producer |
20 hours = Life/Health Only |
6 hours = Ethics (always) |
24 hours CE every 2 years (3 must be Ethics) |
APPOINTMENTS AND TERMINATION
New Appointment Filing
- Company must file with DIFS within: 15 days of agency agreement
Insurer Termination Notice
- Company must notify DIFS within: 30 days of terminating you
Agent Termination Notice
- Agent must notify DIFS within: 15 days of self-terminating
Address Change Notification
- Must notify DIFS within: 30 days of address change
| Memory Trick: Appointment 15 |
Insurer terminates 30 |
Agent terminates 15 |
Address change 30 |
CONTROLLED BUSINESS LIMIT
The 15% Rule ⭐
- Cannot exceed 15% of total premiums in a 12-month period
Calculation:
- Total premiums written: $100,000
- 15% of that: $15,000
- Maximum controlled business: $15,000
GUARANTY ASSOCIATION LIMITS
Michigan Life and Health Guaranty Association
Total Benefits Limit per Policy:
- $300,000 maximum for all policy benefits
Cash Value Limit per Policy:
- $100,000 maximum in cash value
Important: These are SEPARATE limits (not combined)
PENALTIES AND FINES
Per Violation Fines
| Circumstance |
Fine |
| Unknown/Not Discovered |
$1,000 |
| Known/Discovered |
$5,000 |
Cease and Desist Violation
- $20,000 (much higher because you ignored official order)
Insurance Fraud (Felony)
- Prison: Up to 4 years
- Fine: Up to $50,000
MICHIGAN-SPECIFIC RULES
Age 70 Protection ⭐
- Cannot refuse to insure SOLELY because person is age 70
- CAN charge more for age
- CAN use age in rate calculations
- But CANNOT deny based solely on age
Commissioner Term
- 4 years (appointed by Governor)
Credit Insurance Coverage Limits
- Cannot exceed: Total indebtedness
- Extends beyond maturity: 15 days maximum
QUICK REFERENCE TABLE
| Timeframe |
Category |
Number |
Details |
| Grace Period |
Life Insurance |
31 days |
Time to pay late premium |
| Grace Period |
Health (Weekly) |
7 days |
Shorter for frequent payments |
| Grace Period |
Health (Monthly) |
10 days |
Mid-range |
| Grace Period |
Health (Other) |
31 days |
All other modes |
| Free Look |
Life Insurance |
10 days |
Cancel and get refund |
| Suicide Exclusion |
Life/Credit Life |
2 years |
NO coverage within 2 years |
| Claim Notice |
Health Insurance |
20 days |
Customer tells company |
| Claim Forms |
Health Insurance |
15 days |
Company provides forms |
| Proof of Loss |
Health Insurance |
90 days |
Customer submits proof |
| Claim Payment |
Health Insurance |
60 days |
Company pays |
| Reinstatement |
Health Insurance |
45 days |
Must apply within |
| Legal Action |
Health Insurance |
90 days |
Can’t sue before this |
| Certificate Delivery |
Credit Insurance |
30 days |
Must deliver within |
| Coverage Extension |
Credit Insurance |
15 days |
Beyond maturity date |
| Aggregate Limit |
Credit Insurance |
90 days |
Max benefits in quarter |
| Appointment Filing |
Licensing |
15 days |
Company files with DIFS |
| Insurer Termination |
Licensing |
30 days |
Company notifies DIFS |
| Agent Termination |
Licensing |
15 days |
Agent notifies DIFS |
| Address Change |
Licensing |
30 days |
Notify DIFS |
| Pre-License Hours |
Full Producer |
40 hours |
Including 6 ethics |
| Pre-License Hours |
Life/Health Only |
20 hours |
Including 6 ethics |
| Ethics Hours |
Always |
6 hours |
Pre-licensing requirement |
| CE Hours |
Every 2 years |
24 hours |
Including 3 ethics |
| Minimum Age |
Licensing |
18 years |
To be licensed |
| Controlled Business |
Annual Limit |
15% |
Of total premiums |
| Guaranty - Benefits |
Per Policy |
$300,000 |
Maximum coverage |
| Guaranty - Cash Value |
Per Policy |
$100,000 |
Separate limit |
| Fine - Unknown |
Per Violation |
$1,000 |
If not discovered |
| Fine - Known |
Per Violation |
$5,000 |
If discovered |
| Cease & Desist |
Violation |
$20,000 |
For ignoring order |
| Fraud |
Prison |
4 years |
Maximum sentence |
| Fraud |
Fine |
$50,000 |
Maximum criminal fine |
| Commissioner |
Term Length |
4 years |
Appointed by Governor |
NUMBERS BY CATEGORY
NUMBERS TO MEMORIZE FIRST
- 20-15-90-60 (Claim timeframes)
- 40 hours (Producer license)
- 20 hours (Life/Health only)
- 6 hours (Ethics - always)
- 31 days (Life grace period)
- 7, 10, 31 days (Health grace periods)
- 15% (Controlled business)
- $300,000 (Guaranty benefits limit)
- $100,000 (Guaranty cash limit)
- 4 years (Fraud prison time)
NUMBERS TO MEMORIZE SECOND
- 10 days (Free look)
- 2 years (Suicide exclusion)
- 45 days (Reinstatement window)
- 30 days (Certificate delivery)
- 15 days (Coverage extension)
- 24 hours CE (Every 2 years)
- 15 days (Appointment filing)
- 30 days (Insurer termination)
- $5,000 (Known violation fine)
- $1,000 (Unknown violation fine)
NUMBERS TO MEMORIZE THIRD
- 3 hours (Ethics CE requirement)
- 18 years (Minimum age)
- 15 days (Agent termination)
- 30 days (Address change)
- 4 years (Commissioner term)
- 90 days (Legal action window)
- 90 days (Aggregate limit)
- $20,000 (Cease & Desist fine)
- $50,000 (Fraud fine)
- Age 70 (Michigan protection)
STUDY STRATEGY FOR CRITICAL NUMBERS
Week 1: Master the Big 10
- Spend 15 minutes daily on these numbers
- By end of week: Know without thinking
Week 2: Learn the Next 10
- Spend 10 minutes daily
- Combine with Week 1 numbers
Week 3: Final 10 Plus Review
- Spend 10 minutes daily
- All 30 numbers by exam day
TEST-TAKING TIPS FOR NUMBERS
✅ Do:
- Memorize the 20-15-90-60 sequence first
- Create flashcards for quick review
- Quiz yourself daily
- Practice scenarios with the numbers
- Test yourself under pressure
❌ Don’t:
- Try to memorize all at once
- Confuse similar timeframes (20 vs. 30 days)
- Forget the 15% controlled business rule
- Mix up grace periods by mode
- Ignore the Michigan-specific rules
FINAL CHECKLIST
Before taking the real exam, verify you know:
If you can answer what each number refers to, you’re ready!
Good Luck! You’ve got this! 🎯