Montana State Life Insurance Exam
UPDATED ACTUAL Exam Questions and
CORRECT Answers
How often does the Commissioner perform examination of an insurer? - CORRECT
ANSWER - Once every 5 years
After the examination is completed, when does the examiner's report must be filed with the
Commissioner? - CORRECT ANSWER - Within 60 days
What is the window for a rebuttal? - CORRECT ANSWER - 30 days
If an investigatory hearing is needed, when does it need to be held? - CORRECT
ANSWER - No less than 20 days.
How long must the producers keep records of each insurance transaction? - CORRECT
ANSWER - 3 years
What needs to be on the Commissioner orders and notices to be effective? - CORRECT
ANSWER - 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 ANSWER - $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
ANSWER - 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 ANSWER - 15 days (written)
What is the penalty for violating a cease and desist order? - CORRECT ANSWER -
$1,000. Each day of violation constitutes a separate violation
All hearings must be conducted pursuant to which act? - CORRECT ANSWER - the
Montana Administrative Procedure Act.
When does a rehearing must be held? - CORRECT ANSWER - Within 30 days
Transacting an insurance includes 4 what steps? - CORRECT ANSWER - 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 ANSWER - Certificate of Authority
Definition of a business entity does not include what? - CORRECT ANSWER - an
individual
What is an adjuster? - CORRECT ANSWER - 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 ANSWER - 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
ANSWER - 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 ANSWER - 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
ANSWER - 3 years
What is an administrator? - CORRECT ANSWER - 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 ANSWER -A
written agreement between the person and the insurer
UPDATED ACTUAL Exam Questions and
CORRECT Answers
How often does the Commissioner perform examination of an insurer? - CORRECT
ANSWER - Once every 5 years
After the examination is completed, when does the examiner's report must be filed with the
Commissioner? - CORRECT ANSWER - Within 60 days
What is the window for a rebuttal? - CORRECT ANSWER - 30 days
If an investigatory hearing is needed, when does it need to be held? - CORRECT
ANSWER - No less than 20 days.
How long must the producers keep records of each insurance transaction? - CORRECT
ANSWER - 3 years
What needs to be on the Commissioner orders and notices to be effective? - CORRECT
ANSWER - 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 ANSWER - $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
ANSWER - 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 ANSWER - 15 days (written)
What is the penalty for violating a cease and desist order? - CORRECT ANSWER -
$1,000. Each day of violation constitutes a separate violation
All hearings must be conducted pursuant to which act? - CORRECT ANSWER - the
Montana Administrative Procedure Act.
When does a rehearing must be held? - CORRECT ANSWER - Within 30 days
Transacting an insurance includes 4 what steps? - CORRECT ANSWER - 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 ANSWER - Certificate of Authority
Definition of a business entity does not include what? - CORRECT ANSWER - an
individual
What is an adjuster? - CORRECT ANSWER - 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 ANSWER - 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
ANSWER - 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 ANSWER - 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
ANSWER - 3 years
What is an administrator? - CORRECT ANSWER - 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 ANSWER -A
written agreement between the person and the insurer
