MONTANA STATE LIFE INSURANCE
EXAM
How often does the Commissioner perform examination of an insurer? - Correct
Answers -Once every 5 years
After the examination is completed, when does the examiner's report must be filed with
the Commissioner? - Correct Answers -Within 60 days
What is the window for a rebuttal? - Correct Answers -30 days
If an investigatory hearing is needed, when does it need to be held? - Correct Answers -
No less than 20 days.
If a producer makes a mistake on an application and the applicant is present? - Correct
Answers -For minor changes, the agent should correct the errors, and then have the
client initial the changes in his or her presence.
What act was passed to prevent money laundering? - Correct Answers -US PAtriot Act
Is a Viatical contract a liquid purchase? Why? - Correct Answers -No. Because it is
impossible to predict the exact timing of its maturity, and that there is not an established
secondary market the resale of viatical settlement products.
Within how many days must the viatical settlement provider pay the settlement
proceed? - Correct Answers -3 business days, and it needs to go to a trust or escrow
account.
What is required in the case of an application that is initiated as a result of a direct
response solicitation? - Correct Answers -A statement asking whether the applicant
intends to replace, discontinue, or change an existing policy
Who must sign the application? - Correct Answers -The producer, the applicant/insured.
If the applicant is not the insured, both the applicant and the insured must sign the
application.
,If a premium is not paid at the time of application, the producer will issue wha - Correct
Answers -A conditional receipt.
How long must the producers keep records of each insurance transaction? - Correct
Answers -3 years
What needs to be on the Commissioner orders and notices to be effective? - Correct
Answers -1. The effective date, intent or purposes.
2. The ground on which the order is based.
3. The Montana Insruance Code provisions relating to the action taken or proposed to
be taken; failure to designate a particular provision does not prohibit the
Commissioner's right to rely on a particular provision.
What is the fine for failure to cooperate with the Commissioner, give full and truthful
information, answer in writing to any material inquiry, or appear for testimony relationve
to an examination, investigation, or hearing? - Correct Answers -$25,000. Cannot be
more than $5,000 per violation
Whenever the Commissioner believes a person has engaged in or is about to engage in
an act/practice constituting a violation of the Insruance Code, what do they issue? -
Correct Answers -Cease and Desist Orders
How much time does the respondent have to request for a hearing after a cease and
desist order is received? - Correct Answers -15 days (written)
What is the penalty for violating a cease and desist order? - Correct Answers -$1,000.
Each day of violation constitutes a separate violation
All hearings must be conducted pursuant to which act? - Correct Answers -the Montana
Administrative Procedure Act.
When does a rehearing must be held? - Correct Answers -Within 30 days
Transacting an insurance includes 4 what steps? - Correct Answers -1. Solicitation
2. Negotiations
3. Sale or effectuation of an insurance contract
4. Transaction of matters subsequent to the issue of an insurance policy
What must an authorized insurer have? - Correct Answers -Certificate of Authority
Definition of a business entity does not include what? - Correct Answers -an individual
What is an adjuster? - Correct Answers -An adjuster is a person who, on behalf of the
insurer, investigates and negotiates the settlement of claims arising under insurance
contracts as an employee of the insurer or as an independent contractor.
, Adjuster does not include who? - Correct Answers -1. A licensed attorney
2. A salaried employee of an insurer or of a managing law in this state
3. A licensed insurance producer who adjusts or assists in adjustment of losses arising
under policies issued by the insurer.
4. A third-party adinistrator who adjusts or assists in adjustment of losses arising under
policies issued by the insurer
5. A claim examiner
What conditions must be met to be a nonresident insurance producer in Montana? -
Correct Answers -1/ Is currently licesned as a resident is in good standing in the
person's home state.
2/ Has submitted the proper request and has paid the required fees
3/ Has submitted the licensing application that the person submitted to the person's
home state or a completed application in a form approved by the Commissioner
4/ Is from a home state that awards nonresident insurance producer licenses to
residents of this state on the same basis.
What cannot the Consultant do? - Correct Answers -An insurance consultant may not
recommed or encourage the purchase of insurance, annnuities, or securities from an
authorized insurer in which the person or any member of the person's immediate family
holds an executive position or holds a substantial interest.
How long does a copy of every memorandum or contract be retained ? - Correct
Answers -3 years
What is an administrator? - Correct Answers -An administrator is a person who collects
and charges premiums from residents of this state in connection with life, disability,
property, or casualty insurance or annuities or who adjusts or settles claims on these
lines.
A person may not act as an administrator without what item? - Correct Answers -A
written agreement between the person and the insurer
How long does the written agreement between an administrator and an insurer must be
kept? - Correct Answers -5 years
What certificate must an administrator hold? - Correct Answers -Certificate of
Registration
What's the penalty for a person acting as an administrator without the Certificate of
Registration? - Correct Answers -$500-$1,500
How many credit hours must a licensee for a limited lines credit insurance or surety bail
bonds must complete to fulfill continuing education? - Correct Answers -5 hours for
every 24 months.
EXAM
How often does the Commissioner perform examination of an insurer? - Correct
Answers -Once every 5 years
After the examination is completed, when does the examiner's report must be filed with
the Commissioner? - Correct Answers -Within 60 days
What is the window for a rebuttal? - Correct Answers -30 days
If an investigatory hearing is needed, when does it need to be held? - Correct Answers -
No less than 20 days.
If a producer makes a mistake on an application and the applicant is present? - Correct
Answers -For minor changes, the agent should correct the errors, and then have the
client initial the changes in his or her presence.
What act was passed to prevent money laundering? - Correct Answers -US PAtriot Act
Is a Viatical contract a liquid purchase? Why? - Correct Answers -No. Because it is
impossible to predict the exact timing of its maturity, and that there is not an established
secondary market the resale of viatical settlement products.
Within how many days must the viatical settlement provider pay the settlement
proceed? - Correct Answers -3 business days, and it needs to go to a trust or escrow
account.
What is required in the case of an application that is initiated as a result of a direct
response solicitation? - Correct Answers -A statement asking whether the applicant
intends to replace, discontinue, or change an existing policy
Who must sign the application? - Correct Answers -The producer, the applicant/insured.
If the applicant is not the insured, both the applicant and the insured must sign the
application.
,If a premium is not paid at the time of application, the producer will issue wha - Correct
Answers -A conditional receipt.
How long must the producers keep records of each insurance transaction? - Correct
Answers -3 years
What needs to be on the Commissioner orders and notices to be effective? - Correct
Answers -1. The effective date, intent or purposes.
2. The ground on which the order is based.
3. The Montana Insruance Code provisions relating to the action taken or proposed to
be taken; failure to designate a particular provision does not prohibit the
Commissioner's right to rely on a particular provision.
What is the fine for failure to cooperate with the Commissioner, give full and truthful
information, answer in writing to any material inquiry, or appear for testimony relationve
to an examination, investigation, or hearing? - Correct Answers -$25,000. Cannot be
more than $5,000 per violation
Whenever the Commissioner believes a person has engaged in or is about to engage in
an act/practice constituting a violation of the Insruance Code, what do they issue? -
Correct Answers -Cease and Desist Orders
How much time does the respondent have to request for a hearing after a cease and
desist order is received? - Correct Answers -15 days (written)
What is the penalty for violating a cease and desist order? - Correct Answers -$1,000.
Each day of violation constitutes a separate violation
All hearings must be conducted pursuant to which act? - Correct Answers -the Montana
Administrative Procedure Act.
When does a rehearing must be held? - Correct Answers -Within 30 days
Transacting an insurance includes 4 what steps? - Correct Answers -1. Solicitation
2. Negotiations
3. Sale or effectuation of an insurance contract
4. Transaction of matters subsequent to the issue of an insurance policy
What must an authorized insurer have? - Correct Answers -Certificate of Authority
Definition of a business entity does not include what? - Correct Answers -an individual
What is an adjuster? - Correct Answers -An adjuster is a person who, on behalf of the
insurer, investigates and negotiates the settlement of claims arising under insurance
contracts as an employee of the insurer or as an independent contractor.
, Adjuster does not include who? - Correct Answers -1. A licensed attorney
2. A salaried employee of an insurer or of a managing law in this state
3. A licensed insurance producer who adjusts or assists in adjustment of losses arising
under policies issued by the insurer.
4. A third-party adinistrator who adjusts or assists in adjustment of losses arising under
policies issued by the insurer
5. A claim examiner
What conditions must be met to be a nonresident insurance producer in Montana? -
Correct Answers -1/ Is currently licesned as a resident is in good standing in the
person's home state.
2/ Has submitted the proper request and has paid the required fees
3/ Has submitted the licensing application that the person submitted to the person's
home state or a completed application in a form approved by the Commissioner
4/ Is from a home state that awards nonresident insurance producer licenses to
residents of this state on the same basis.
What cannot the Consultant do? - Correct Answers -An insurance consultant may not
recommed or encourage the purchase of insurance, annnuities, or securities from an
authorized insurer in which the person or any member of the person's immediate family
holds an executive position or holds a substantial interest.
How long does a copy of every memorandum or contract be retained ? - Correct
Answers -3 years
What is an administrator? - Correct Answers -An administrator is a person who collects
and charges premiums from residents of this state in connection with life, disability,
property, or casualty insurance or annuities or who adjusts or settles claims on these
lines.
A person may not act as an administrator without what item? - Correct Answers -A
written agreement between the person and the insurer
How long does the written agreement between an administrator and an insurer must be
kept? - Correct Answers -5 years
What certificate must an administrator hold? - Correct Answers -Certificate of
Registration
What's the penalty for a person acting as an administrator without the Certificate of
Registration? - Correct Answers -$500-$1,500
How many credit hours must a licensee for a limited lines credit insurance or surety bail
bonds must complete to fulfill continuing education? - Correct Answers -5 hours for
every 24 months.
