Financial Responsibility Act

What this document is

Michigan Vehicle Code (Act 300 of 1949), Chapter V - Financial Responsibility Act (MCL 257.501 to 257.532, 29 sections) is a state statute published by Michigan Legislature (www.legislature.mi.gov). It is one of the Michigan documents that insurance license exam questions are written from, including michigan property & casualty, michigan personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• MCL 257.517 (Proof of financial responsibility; alternative methods)

  “Proof of financial responsibility when required under this chapter may be given by filing: 1. A certificate of insurance as provided in section 518 or section 519; or 2. A bond as provided in section 523; or 3. A certificate of deposit of money or securities as provided in section 524.”

• MCL 257.520(b)(2) (Motor vehicle liability policy; owner's policy limits)

  “with respect to each such motor vehicle, as follows: $20,000.00 because of bodily injury to or death of 1 person in any 1 accident and, subject to said limit for 1 person, $40,000.00 because of bodily injury to or death of 2 or more persons in any 1 accident, and $10,000.00 because of injury to or...”

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