MONTANA INSURANCE LAWS + RULES
EXAM QUESTIONS AND ANSWERS
Who would be most likely to apply to the commissioner for a nonresident license? -
Correct Answers -Individual licensed in another state and who resides in that state
What does a viatical settlement involve? - Correct Answers -The sale of a life insurance
policy
In Montana, the _________ reviews and approves the insurance continuing education
courses. - Correct Answers -Comissioner
A _________ insurer is one domiciled in another state. - Correct Answers -Foreign
In Montana, health insurance companies must provide maternity coverage - Correct
Answers -The same as would be provided for any illness
In Montana, which of the following is NOT required to be covered by insurers? - Correct
Answers –Anorexia
If an individual is covered under an Accidental Death Policy and dies, an autopsy can
be performed in all these situations except - Correct Answers -When the state prohibits
this by law
T applied for a Disability Income policy and has a history of back injuries. The insurer
issued the policy with a statement that excludes coverage for back injuries. This
statement is called a(n) - Correct Answers -Impairment rider
Which of the following products requires a Limited Lines Credit license in order to sell? -
Correct Answers -Gap insurance
after an insured has filed a claim, the insurer has ___ days to respond to the claim. -
Correct Answers -30
Which of the following does Social Security NOT provide benefits for? - Correct
Answers -dismemberment
, Which of the following policy features allows an insured to defer current health charges
to the following years deductible instead of the current year's deductible? - Correct
Answers -Carryover provision
A company that owns a life insurance policy on one of its key employees may do all of
the following EXCEPT - Correct Answers -Change the policy's interest rate
How does the Montana insurance commissioner attain this position? - Correct Answers
-An wlection
Any "reciprocal insurer" formed under federal tax laws must be operated by a - Correct
Answers -Attorney in fact
In Montana, the minimum age for purchasing insurance is - Correct Answers -15
A resident domestic insurer is one that is incorporated under the laws of Montana with
at least _______of its owners being Montana residents. - Correct Answers -50%
Pam the insurance consultant has a client to which she gave advice for a fee. After
consulting, she cannot sell insurance to this person for at least _____ months. - Correct
Answers -12
Under the freedom of choice act, an insured is able to choose their own doctor in which
health plan? - Correct Answers -Stock or mutual identity plan
In Montana, which system is used to regulate new policy forms? - Correct Answers -File
and wait
How long is an appointment letter valid? - Correct Answers -Until the appointment is
terminated
An insurer must pay ___ interest on past-due claims. - Correct Answers -10%
In Montana, exclusions for pre-existing conditions in an individual health policy are
allowable for - Correct Answers -3 years back, 12 months forward
At what point must a replacement notice be provided? - Correct Answers -At the time of
application
In Montana, insureds may file claims against the Guaranty Fund up to _______. -
Correct Answers -$300,000
An individual must be at least ____ years old to obtain a producer's license in Montana.
- Correct Answers -18
EXAM QUESTIONS AND ANSWERS
Who would be most likely to apply to the commissioner for a nonresident license? -
Correct Answers -Individual licensed in another state and who resides in that state
What does a viatical settlement involve? - Correct Answers -The sale of a life insurance
policy
In Montana, the _________ reviews and approves the insurance continuing education
courses. - Correct Answers -Comissioner
A _________ insurer is one domiciled in another state. - Correct Answers -Foreign
In Montana, health insurance companies must provide maternity coverage - Correct
Answers -The same as would be provided for any illness
In Montana, which of the following is NOT required to be covered by insurers? - Correct
Answers –Anorexia
If an individual is covered under an Accidental Death Policy and dies, an autopsy can
be performed in all these situations except - Correct Answers -When the state prohibits
this by law
T applied for a Disability Income policy and has a history of back injuries. The insurer
issued the policy with a statement that excludes coverage for back injuries. This
statement is called a(n) - Correct Answers -Impairment rider
Which of the following products requires a Limited Lines Credit license in order to sell? -
Correct Answers -Gap insurance
after an insured has filed a claim, the insurer has ___ days to respond to the claim. -
Correct Answers -30
Which of the following does Social Security NOT provide benefits for? - Correct
Answers -dismemberment
, Which of the following policy features allows an insured to defer current health charges
to the following years deductible instead of the current year's deductible? - Correct
Answers -Carryover provision
A company that owns a life insurance policy on one of its key employees may do all of
the following EXCEPT - Correct Answers -Change the policy's interest rate
How does the Montana insurance commissioner attain this position? - Correct Answers
-An wlection
Any "reciprocal insurer" formed under federal tax laws must be operated by a - Correct
Answers -Attorney in fact
In Montana, the minimum age for purchasing insurance is - Correct Answers -15
A resident domestic insurer is one that is incorporated under the laws of Montana with
at least _______of its owners being Montana residents. - Correct Answers -50%
Pam the insurance consultant has a client to which she gave advice for a fee. After
consulting, she cannot sell insurance to this person for at least _____ months. - Correct
Answers -12
Under the freedom of choice act, an insured is able to choose their own doctor in which
health plan? - Correct Answers -Stock or mutual identity plan
In Montana, which system is used to regulate new policy forms? - Correct Answers -File
and wait
How long is an appointment letter valid? - Correct Answers -Until the appointment is
terminated
An insurer must pay ___ interest on past-due claims. - Correct Answers -10%
In Montana, exclusions for pre-existing conditions in an individual health policy are
allowable for - Correct Answers -3 years back, 12 months forward
At what point must a replacement notice be provided? - Correct Answers -At the time of
application
In Montana, insureds may file claims against the Guaranty Fund up to _______. -
Correct Answers -$300,000
An individual must be at least ____ years old to obtain a producer's license in Montana.
- Correct Answers -18
