MONTANA LAWS AND RULES EXAM
QUESTIONS AND ANSWERS
commissioner - Correct Answers -The Commissioner of Insurance supervises the
operations of the Montana Insurance Department. The Commissioner also makes rules
and regulations to help carry out the provisions of the Montana insurance code
Examination of Records - Correct Answers -The Commissioner may conduct a financial
examination as often as deemed appropriate in order to determine the solvency of the
company. At the very least, a company shall be examined every 5 years.
Denial of License - Correct Answers -If the Commissioner refuses to issue a license, the
applicant will be notified and given the reason for denial. An applicant may request a
hearing on the matter, which must be held within 30 days of the request.
Business Entities - Correct Answers -Any business wishing to be licensed must
designate a person to be licensed as a producer of insurance.
Commission - Correct Answers -No person shall pay or accept commission to/from a
unlicensed individual for the purpose of selling or negotiating insurance business.
Commingling - Correct Answers -A producer who has combined premiums collected
with personal funds has engaged in commingling, which is a prohibited act. An
insurance producer who unlawfully appropriates insurance premiums for their own use
commits theft.
Policy Summary - Correct Answers -The policy summary contains specific information
on the provisions, benefits and the coverage a policy provides.
Hearing - Correct Answers -The Commissioner may hold a hearing whenever deemed
necessary. All hearing must be held or refused within 30 days after Commissioner
receives the demand. The Commissioner must give notice of the time and place of a
hearing at least 10 days in advance.
Penalties - Correct Answers -After the hearing, The Commissioner can impose a fine of
up to $25,000 upon anyone who violates the Montana insurance code. (up to $5,000 for
insurance producers.
QUESTIONS AND ANSWERS
commissioner - Correct Answers -The Commissioner of Insurance supervises the
operations of the Montana Insurance Department. The Commissioner also makes rules
and regulations to help carry out the provisions of the Montana insurance code
Examination of Records - Correct Answers -The Commissioner may conduct a financial
examination as often as deemed appropriate in order to determine the solvency of the
company. At the very least, a company shall be examined every 5 years.
Denial of License - Correct Answers -If the Commissioner refuses to issue a license, the
applicant will be notified and given the reason for denial. An applicant may request a
hearing on the matter, which must be held within 30 days of the request.
Business Entities - Correct Answers -Any business wishing to be licensed must
designate a person to be licensed as a producer of insurance.
Commission - Correct Answers -No person shall pay or accept commission to/from a
unlicensed individual for the purpose of selling or negotiating insurance business.
Commingling - Correct Answers -A producer who has combined premiums collected
with personal funds has engaged in commingling, which is a prohibited act. An
insurance producer who unlawfully appropriates insurance premiums for their own use
commits theft.
Policy Summary - Correct Answers -The policy summary contains specific information
on the provisions, benefits and the coverage a policy provides.
Hearing - Correct Answers -The Commissioner may hold a hearing whenever deemed
necessary. All hearing must be held or refused within 30 days after Commissioner
receives the demand. The Commissioner must give notice of the time and place of a
hearing at least 10 days in advance.
Penalties - Correct Answers -After the hearing, The Commissioner can impose a fine of
up to $25,000 upon anyone who violates the Montana insurance code. (up to $5,000 for
insurance producers.
