MONTANA INSURANCE EXAM
QUESTIONS WITH CORRECT 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
How does the Montana insurance commissioner attain this position? - Correct Answers
-An wlection
In Montana, a "written fee agreement" is required for - Correct Answers -Consultants
The guaranty fund receives its funding from assessments on - Correct Answers -
Admitted insurance companies
All of the following acts under Montana's Elder Abuse Act EXCEPT: - Correct Answers -
Twisting
A _______ _______ provides a general understanding of the issues involved when
purchasing life insurance. - Correct Answers -Buyer's guude
Under which statute gives the Insurance Commissioner power to regulate insurance
transactions? - Correct Answers -Tile 33 of Montana Law
A certificate of ____________ is required to become a third party administrator. -
Correct Answers -Regustration
,John, the insured, is owed money for a past due claim. He is entitled to interest if the
amount is ____ or more. - Correct Answers -$5
Which of the following is NOT true regarding a Blanket Policy? - Correct Answers -The
policy covers sicknesses
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
Time the insured is considering replacing her existing life policy with a new one. The
replacing insurer is responsible for providing to her which of the following? - Correct
Answers -A copy of all sales materials used by the replacing producer plus a
replacement notice containing the name of the policy to be replaced
, In Montana, what is the maximum amount of credit life insurance that may be sold? -
Correct Answers -Equal to balance owed on debt
What is the purpose of the Viatical Settlement Act? - Correct Answers -Assist policy
owners who would like to sell their life insurance policies prior to death.
Cash value loans may charge a maximum rate of interest of - Correct Answers -8%
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. -
Correct Answers -Industrial Life
In Montana, who are individuals authorized to negotiate transactions on behalf of
insurers. - Correct Answers -Producers
In order to negotiate a viatical settlement, which licensure is required? - Correct
Answers -Life producer
Which of the following circumstances can a producer act as a policy owner guardian? -
Correct Answers -Policyholder is an immediate family member
The guaranty fund receives its funding from assessments on - Correct Answers -
Admitted insurance companies
Which of the following must a Buyer's Guide and Policy Summary be provided with? -
Correct Answers -Individual whole and term life policus
In Montana, what is the biennial continuing education requirement? - Correct Answers -
24 hrs
A dependent child under a family health policy is sentenced to a state correctional
institution for children. Any medical claims for this child will be covered by - Correct
Answers -The parent's family and health policy
A producer may legally share commissions only with another producer who - Correct
Answers -Has the same license
John, the insured, is owed money for a past-due claim. He is entitled to interest if the
amount is ____ or more. - Correct Answers -$5
Who is the beneficiary under a credit disability insurance policy? - Correct Answers -
Creditor
Who is the guaranty fund designed to protect? - Correct Answers -Residents
QUESTIONS WITH CORRECT 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
How does the Montana insurance commissioner attain this position? - Correct Answers
-An wlection
In Montana, a "written fee agreement" is required for - Correct Answers -Consultants
The guaranty fund receives its funding from assessments on - Correct Answers -
Admitted insurance companies
All of the following acts under Montana's Elder Abuse Act EXCEPT: - Correct Answers -
Twisting
A _______ _______ provides a general understanding of the issues involved when
purchasing life insurance. - Correct Answers -Buyer's guude
Under which statute gives the Insurance Commissioner power to regulate insurance
transactions? - Correct Answers -Tile 33 of Montana Law
A certificate of ____________ is required to become a third party administrator. -
Correct Answers -Regustration
,John, the insured, is owed money for a past due claim. He is entitled to interest if the
amount is ____ or more. - Correct Answers -$5
Which of the following is NOT true regarding a Blanket Policy? - Correct Answers -The
policy covers sicknesses
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
Time the insured is considering replacing her existing life policy with a new one. The
replacing insurer is responsible for providing to her which of the following? - Correct
Answers -A copy of all sales materials used by the replacing producer plus a
replacement notice containing the name of the policy to be replaced
, In Montana, what is the maximum amount of credit life insurance that may be sold? -
Correct Answers -Equal to balance owed on debt
What is the purpose of the Viatical Settlement Act? - Correct Answers -Assist policy
owners who would like to sell their life insurance policies prior to death.
Cash value loans may charge a maximum rate of interest of - Correct Answers -8%
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. -
Correct Answers -Industrial Life
In Montana, who are individuals authorized to negotiate transactions on behalf of
insurers. - Correct Answers -Producers
In order to negotiate a viatical settlement, which licensure is required? - Correct
Answers -Life producer
Which of the following circumstances can a producer act as a policy owner guardian? -
Correct Answers -Policyholder is an immediate family member
The guaranty fund receives its funding from assessments on - Correct Answers -
Admitted insurance companies
Which of the following must a Buyer's Guide and Policy Summary be provided with? -
Correct Answers -Individual whole and term life policus
In Montana, what is the biennial continuing education requirement? - Correct Answers -
24 hrs
A dependent child under a family health policy is sentenced to a state correctional
institution for children. Any medical claims for this child will be covered by - Correct
Answers -The parent's family and health policy
A producer may legally share commissions only with another producer who - Correct
Answers -Has the same license
John, the insured, is owed money for a past-due claim. He is entitled to interest if the
amount is ____ or more. - Correct Answers -$5
Who is the beneficiary under a credit disability insurance policy? - Correct Answers -
Creditor
Who is the guaranty fund designed to protect? - Correct Answers -Residents
