Montana Insurance Licensing and
Regulations Overview UPDATED ACTUAL
Exam Questions and CORRECT Answers
Nonresident - CORRECT ANSWER - A producer from another state wants to sell
insurance in Montana.
Montana Insurance Information and Privacy Act - CORRECT ANSWER - Protect the
insured.
10-day free look period - CORRECT ANSWER - Starts when the policy is received by the
owner.
Producer exceeding authority - CORRECT ANSWER - The insurer is responsible.
Viatical settlement - CORRECT ANSWER - It is a policy option.
Credit life insurance - CORRECT ANSWER - Issued on a debtor in a credit transaction.
Insurance Commissioner - CORRECT ANSWER - Can issue a cease and desist order.
Replacement notification - CORRECT ANSWER - The replacing company must notify
the existing insurer.
Commission sharing - CORRECT ANSWER - Can be shared if both are licensed for the
same line of business.
Insurance Information and Privacy Protection Act - CORRECT ANSWER - Lets
applicants access information gathered by insurers.
, Contestable period in life insurance - CORRECT ANSWER - Two years.
Policy loan provision - CORRECT ANSWER - The insurance company provides the loan.
Certificate of authority - CORRECT ANSWER - An insurance company must have this to
operate in Montana.
Licensed insurance employee - CORRECT ANSWER - One who solicits prospects.
Commingling of premiums - CORRECT ANSWER - Never allowed; it is illegal.
Producer's license for a corporation - CORRECT ANSWER - Must list officers who
negotiate contracts.
Insurance fraud - CORRECT ANSWER - Placing coverage with a foreign insurer is NOT
fraud.
Notice before terminating a producer's appointment - CORRECT ANSWER - 30 days.
Renewal commissions after termination - CORRECT ANSWER - Can continue
indefinitely.
Temporary license without passing an exam - CORRECT ANSWER - Available to
deceased producer's next of kin.
Producer continuing education credits - CORRECT ANSWER - Approved by the
Insurance Commissioner.
Regulations Overview UPDATED ACTUAL
Exam Questions and CORRECT Answers
Nonresident - CORRECT ANSWER - A producer from another state wants to sell
insurance in Montana.
Montana Insurance Information and Privacy Act - CORRECT ANSWER - Protect the
insured.
10-day free look period - CORRECT ANSWER - Starts when the policy is received by the
owner.
Producer exceeding authority - CORRECT ANSWER - The insurer is responsible.
Viatical settlement - CORRECT ANSWER - It is a policy option.
Credit life insurance - CORRECT ANSWER - Issued on a debtor in a credit transaction.
Insurance Commissioner - CORRECT ANSWER - Can issue a cease and desist order.
Replacement notification - CORRECT ANSWER - The replacing company must notify
the existing insurer.
Commission sharing - CORRECT ANSWER - Can be shared if both are licensed for the
same line of business.
Insurance Information and Privacy Protection Act - CORRECT ANSWER - Lets
applicants access information gathered by insurers.
, Contestable period in life insurance - CORRECT ANSWER - Two years.
Policy loan provision - CORRECT ANSWER - The insurance company provides the loan.
Certificate of authority - CORRECT ANSWER - An insurance company must have this to
operate in Montana.
Licensed insurance employee - CORRECT ANSWER - One who solicits prospects.
Commingling of premiums - CORRECT ANSWER - Never allowed; it is illegal.
Producer's license for a corporation - CORRECT ANSWER - Must list officers who
negotiate contracts.
Insurance fraud - CORRECT ANSWER - Placing coverage with a foreign insurer is NOT
fraud.
Notice before terminating a producer's appointment - CORRECT ANSWER - 30 days.
Renewal commissions after termination - CORRECT ANSWER - Can continue
indefinitely.
Temporary license without passing an exam - CORRECT ANSWER - Available to
deceased producer's next of kin.
Producer continuing education credits - CORRECT ANSWER - Approved by the
Insurance Commissioner.
