How to Become an Insurance Adjuster in Michigan

Michigan issues adjuster licenses under two primary categories:

• Independent Adjuster — Adjusters contracted by insurers to investigate, negotiate, and settle claims
• Public Adjuster — Adjusters who represent policyholders in the claims process

Staff adjusters employed directly by an insurance company are exempt from individual licensing requirements in Michigan. This exemption applies only to salaried employees acting on behalf of their employer.

Michigan does not require pre-licensing education for adjuster applicants. There are no mandatory classroom or online course hours before sitting for the state exam. This, combined with the state's exceptionally low fees, makes Michigan one of the fastest and most affordable states to get licensed in.

Voluntary exam preparation courses are available through various providers and are recommended for applicants who want to maximize their chances of passing on the first attempt.

The Michigan adjuster licensing exam is a computer-based, multiple-choice test requiring a 70% passing score. The exam covers property insurance, casualty insurance, claims adjusting procedures, Michigan insurance law, and ethics. The exam fee is $41.

Michigan's exam is considered moderate in difficulty. Candidates who do not pass on the first attempt may retake the exam after a waiting period. Voluntary preparation courses are recommended for first-time applicants.

1. Register for the adjuster licensing exam
2. Pass the computer-based exam (70% passing score, $41 exam fee)
3. Submit your application through DIFS or NIPR
4. Pay the $15 application fee
5. Public adjuster applicants: obtain and file a $1,000 surety bond
6. Receive your adjuster license

Michigan has no continuing education requirement for licensed adjusters. This is one of the few states in the nation with a 0 CE hours mandate. License renewal is simple and inexpensive — just $5 every 2 years with no coursework required.

Michigan participates in non-resident licensing reciprocity through NIPR. Adjusters licensed in their home state can apply for a Michigan non-resident license without retaking the state exam, provided their home state has comparable licensing standards.

Background check requirements are part of the application process. Contact the Michigan Department of Insurance and Financial Services (DIFS) for current fingerprint and background check procedures.

Public Adjusters must obtain and maintain a $1,000 surety bond with DIFS. This is one of the lowest public adjuster bond requirements in the nation. Independent adjusters are not required to post a bond.

• Michigan Department of Insurance and Financial Services (DIFS)
• DIFS Licensing Information
• NIPR — National Insurance Producer Registry

Michigan holds the distinction of being the cheapest licensing state in the nation with a total initial cost of approximately $56 and a renewal fee of just $5 every 2 years. Combined with no pre-licensing education and no continuing education requirements, Michigan offers the lowest barrier to entry and lowest ongoing maintenance cost of any licensing state. Michigan is also a no-fault auto insurance state, which creates unique claims dynamics for auto adjusters. Great Lakes weather patterns generate significant property claims from wind, hail, ice storms, and lake-effect snow.