Montana Property and Casualty Insurance
Laws UPDATED ACTUAL Exam Questions
and CORRECT Answers
Premium Finance Company - CORRECT ANSWER - Licensed entity loaning money for
insurance premiums.
Record Maintenance - CORRECT ANSWER - Records must be kept for at least 3 years.
Premium Finance Agreement - CORRECT ANSWER - Must be written, signed, and
delivered to insured.
Disclosure Requirements - CORRECT ANSWER - Details include producer's name and
payment amounts.
Interest Rate Limit - CORRECT ANSWER - Cannot exceed 21% on premium finance
loans.
Delinquency Charge Limit - CORRECT ANSWER - Late payment charges cannot exceed
$5.
Uncanceled Premium Refund - CORRECT ANSWER - Refund goes to Premium Finance
Company, not insured.
Surplus Refund - CORRECT ANSWER - Surplus sent to insured if over $1.
Nonrenewal Notification - CORRECT ANSWER - Insurer must notify 45 days before
expiration.
Laws UPDATED ACTUAL Exam Questions
and CORRECT Answers
Premium Finance Company - CORRECT ANSWER - Licensed entity loaning money for
insurance premiums.
Record Maintenance - CORRECT ANSWER - Records must be kept for at least 3 years.
Premium Finance Agreement - CORRECT ANSWER - Must be written, signed, and
delivered to insured.
Disclosure Requirements - CORRECT ANSWER - Details include producer's name and
payment amounts.
Interest Rate Limit - CORRECT ANSWER - Cannot exceed 21% on premium finance
loans.
Delinquency Charge Limit - CORRECT ANSWER - Late payment charges cannot exceed
$5.
Uncanceled Premium Refund - CORRECT ANSWER - Refund goes to Premium Finance
Company, not insured.
Surplus Refund - CORRECT ANSWER - Surplus sent to insured if over $1.
Nonrenewal Notification - CORRECT ANSWER - Insurer must notify 45 days before
expiration.
