MONTANA INSURANCE 2025
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
Pete, the insured recently canceled his credit life policy. His unearn refund must be
calculated using which method? - ANSWERS-Sums of the Years' Digits if the
premium was paid with a single premium; but pro rata if the premium was paid in
level of installments
QUESTION 2
J let her life insurance policy lapse 8 months ago due to nonpayment. She can
reestablish coverage under which of the following provisions? - ANSWERS-
Reinstatement provision
QUESTION 3
What does a viatical settlement involve? - ANSWERS-The sale of a life insurance
policy
QUESTION 4
P is insured under a basic cancer plan. Which of the following conditions would be
covered under this plan? - ANSWERS-Operation for a malignant tumor
END OF
PAGE 1
, MONTANA INSURANCE 2025
QUESTION 5
In Montana, which of the following is considered a life policy which provides a
death benefit of $2,000 or less and premiums are payable at least on a monthly
basis? - ANSWERS-Industrial life
QUESTION 6
In Montana, which system is used to regulate insurance premium rates? -
ANSWERS-File and use
QUESTION 7
What is the underlying concept regarding level premiums? - ANSWERS-The early
years are charged more than what is needed
QUESTION 8
In Montana, which of the following is prohibited act under the Elder Abuse Act? -
ANSWERS-Undue Influence
END OF
PAGE 2
, MONTANA INSURANCE 2025
QUESTION 9
The clause in an accident and health policy, which defines the benefit amount the
insurer will pay is called the: - ANSWERS-Insuring clause
QUESTION 10
Policy loans must be available on permanent policies after premiums have been
paid for ______ years. - ANSWERS-Three
QUESTION 11
How are surrender charges deducted in a life policy with a rear-end loaded
provision? - ANSWERS-Deducted when the policy is discontinued
QUESTION 12
A _________ _______ provides unique information on the policy being sold. -
ANSWERS-Policy summary
END OF
PAGE 3
, MONTANA INSURANCE 2025
QUESTION 13
All of the following may be paid a fee for consulting, except - ANSWERS-
Producers
QUESTION 14
Medicare Part A and Part B do NOT pay for - ANSWERS-dental work
QUESTION 15
In a life insurance policy, which feature states that the policy will not cover certain
risks? - ANSWERS-exclusion
QUESTION 16
Disability policies, do not normally pay for disabilities arising from which of the
following? - ANSWERS-war
END OF
PAGE 4
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
Pete, the insured recently canceled his credit life policy. His unearn refund must be
calculated using which method? - ANSWERS-Sums of the Years' Digits if the
premium was paid with a single premium; but pro rata if the premium was paid in
level of installments
QUESTION 2
J let her life insurance policy lapse 8 months ago due to nonpayment. She can
reestablish coverage under which of the following provisions? - ANSWERS-
Reinstatement provision
QUESTION 3
What does a viatical settlement involve? - ANSWERS-The sale of a life insurance
policy
QUESTION 4
P is insured under a basic cancer plan. Which of the following conditions would be
covered under this plan? - ANSWERS-Operation for a malignant tumor
END OF
PAGE 1
, MONTANA INSURANCE 2025
QUESTION 5
In Montana, which of the following is considered a life policy which provides a
death benefit of $2,000 or less and premiums are payable at least on a monthly
basis? - ANSWERS-Industrial life
QUESTION 6
In Montana, which system is used to regulate insurance premium rates? -
ANSWERS-File and use
QUESTION 7
What is the underlying concept regarding level premiums? - ANSWERS-The early
years are charged more than what is needed
QUESTION 8
In Montana, which of the following is prohibited act under the Elder Abuse Act? -
ANSWERS-Undue Influence
END OF
PAGE 2
, MONTANA INSURANCE 2025
QUESTION 9
The clause in an accident and health policy, which defines the benefit amount the
insurer will pay is called the: - ANSWERS-Insuring clause
QUESTION 10
Policy loans must be available on permanent policies after premiums have been
paid for ______ years. - ANSWERS-Three
QUESTION 11
How are surrender charges deducted in a life policy with a rear-end loaded
provision? - ANSWERS-Deducted when the policy is discontinued
QUESTION 12
A _________ _______ provides unique information on the policy being sold. -
ANSWERS-Policy summary
END OF
PAGE 3
, MONTANA INSURANCE 2025
QUESTION 13
All of the following may be paid a fee for consulting, except - ANSWERS-
Producers
QUESTION 14
Medicare Part A and Part B do NOT pay for - ANSWERS-dental work
QUESTION 15
In a life insurance policy, which feature states that the policy will not cover certain
risks? - ANSWERS-exclusion
QUESTION 16
Disability policies, do not normally pay for disabilities arising from which of the
following? - ANSWERS-war
END OF
PAGE 4
