MONTANA PROPERTY AND CASUALTY
LAWS EXAM WITH CORRECT ANSWERS
What are premium finance companies? - Correct Answers -Loans money to the insured
to pay a premium, and must be licensed as a premium finance company. (Does not
apply to savings & loans, finance companies, banks, credit unions, or resident
insurance producers)
How long must premium finance companies keep records for? - Correct Answers -3
years.
What are the stipulations for premium finance agreements? - Correct Answers --Must
be written, signed, and delivered to the insured
-Discloses all details of the transaction
-Discloses the producer's name, balance, total amount of all premiums & payments,
down payment, finance charges, and number or installments
Can interest rates exceed %21? - Correct Answers -No!
Do we need a reason to cancel a newly issued policy that has been in effect for less
than 60 days? - Correct Answers -No!
What does the cancellation notice need to include? - Correct Answers -The reasons for
cancellation or inform them on their right to demand such information.
Can we deny, cancel, or refuse to renew someone's homeowner policy due to them
having a daycare center on the premises? - Correct Answers -No!
Can we discriminate solely due to credit history when selling auto or homeowner
policies? - Correct Answers -No!
Are producers allowed to sell real estate Title Insurance? - Correct Answers -No, this
requires a special license.
What is an adjuster? - Correct Answers -A person who represents the insurance
company in the investigation and settlement of claims.
Can delinquency charges exceed $5 per late payment? - Correct Answers -No!
LAWS EXAM WITH CORRECT ANSWERS
What are premium finance companies? - Correct Answers -Loans money to the insured
to pay a premium, and must be licensed as a premium finance company. (Does not
apply to savings & loans, finance companies, banks, credit unions, or resident
insurance producers)
How long must premium finance companies keep records for? - Correct Answers -3
years.
What are the stipulations for premium finance agreements? - Correct Answers --Must
be written, signed, and delivered to the insured
-Discloses all details of the transaction
-Discloses the producer's name, balance, total amount of all premiums & payments,
down payment, finance charges, and number or installments
Can interest rates exceed %21? - Correct Answers -No!
Do we need a reason to cancel a newly issued policy that has been in effect for less
than 60 days? - Correct Answers -No!
What does the cancellation notice need to include? - Correct Answers -The reasons for
cancellation or inform them on their right to demand such information.
Can we deny, cancel, or refuse to renew someone's homeowner policy due to them
having a daycare center on the premises? - Correct Answers -No!
Can we discriminate solely due to credit history when selling auto or homeowner
policies? - Correct Answers -No!
Are producers allowed to sell real estate Title Insurance? - Correct Answers -No, this
requires a special license.
What is an adjuster? - Correct Answers -A person who represents the insurance
company in the investigation and settlement of claims.
Can delinquency charges exceed $5 per late payment? - Correct Answers -No!
