Who Needs a Title Insurance Producer License in Michigan?

If you’re talking about policies, quoting rates, getting paid for title deals or otherwise helping someone buy or refinance real estate, you probably need a Title Insurance Producer license. Michigan law treats title insurance like any other line of insurance: anyone who sells, solicits or negotiates a policy must be licensed. Let’s unpack what that means.

What do “sell, solicit and negotiate” really mean?

Michigan’s Insurance Code defines these terms clearly:

• Solicit: asking or urging someone to apply for title insurance.

• Negotiate: discussing the benefits, terms or conditions of a policy or advising a purchaser.

• Sell: actually completing the transaction and issuing the policy.

If you do any of those things for title insurance, you’re an insurance producer and need a license.

Activities that require a license (with examples)

The Department of Insurance and Financial Services (DIFS) spells out what counts as producer work. Here are the highlights:

• Quoting or discussing rates: even if the rates come from a printed list or computer database.

• Explaining coverage or policy terms: elaborating on what’s covered or how endorsements work.

• Giving advice or recommendations: telling a buyer which policy to choose or how an endorsement affects risk.

• Soliciting business: asking someone to buy title insurance or fill out an application.

• Completing or signing applications: helping with the paperwork or placing a signature.

• Receiving commission or volume-based compensation: if your pay varies with the number of policies written.

• Obtaining underwriting information or binding coverage: pulling credit reports, chasing lien payoffs or telling a client their coverage is bound.

Do any of the above, and you must be a licensed producer.

What doesn’t require a license?

Not everyone in a title office needs a producer credential. DIFS allows customer‑service staff to perform purely clerical tasks without a license, such as:

• Handing out brochures or applications without discussing coverage.

• Scheduling appointments for licensed producers.

• Collecting a premium payment at the office when a licensed producer handled the sale.

• Recording basic customer information for a producer to review later.

  
  

If you stay on the admin side and never advise, quote, bind or close deals, you’re likely exempt.

Business entities must be licensed too

Licensing isn’t just for individuals. A business entity—for example, a title agency—needs its own producer license and must designate a licensed individual responsible for compliance. That’s why you’ll see “Title Agency” (not “Title Company”) in most firm names: underwriters are insurers; agencies are producers and have to be licensed.

Why it matters

Selling title insurance without a license is a violation of Michigan law. In a 2021 enforcement order, DIFS found that a company selling fake title policies violated section 1201a(1) because they “purported to solicit and sell title insurance” without a license. The result? A cease-and-desist order and hefty fines. For consumers, DIFS cautions that title policies should only be purchased from licensed agencies or authorized underwriters. Working with licensed professionals protects both your investment and your compliance record.

Bottom line for aspiring producers

If you plan to:

• Help people buy or refinance property

• Explain title coverage

• Earn commissions from title deals

  
  

…then you need a Title Insurance Producer license in Michigan. That means taking the PSI‑administered exam, applying through NIPR and getting appointed by a title insurer.

Ready to get licensed?

Pass the Michigan Title Insurance Producer Exam—on your first try. Join our self‑paced exam prep class (8–10 hours) with quizzes, checklists and real‑world scenarios.