Montana laws and rules UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Under the freedom of choice act an insured is able to choose their own doctor in which health
plan? - CORRECT ANSWER - Stock or mutual indemnity plan
not-for-profit insurer which offers insurance only to its members is called a ? - CORRECT
ANSWER - Fraternal benefit society
A commissioner must give at least a ? Day notice prior to holding a hearing on a license
revocation or suspension - CORRECT ANSWER - 10
What is the continuing education requirement for an individual holding a limited lines credit
license? - CORRECT ANSWER - 5 hours every 2 years
What is the purpose of the viatical settlement act? - CORRECT ANSWER - Assist policy
owners who would like to sell their life insurance policies prior to death
What does a viatical settlement involve? - CORRECT ANSWER - The sale of a life
insurance policy
In Montana which of the following is not required to be covered by insurers? - CORRECT
ANSWER - Anorexia
The premium charged for limited lines credit insurance is excessive if the insurer does not pay
out at least ? Of premiums earnes - CORRECT ANSWER - 50%
In Montana home health services must be covered in group health policies if prescribed by a -
CORRECT ANSWER - Physician and provided by a licensed home health care provider
, An insurer must pay ? Interest on past due claims - CORRECT ANSWER - 10%
- CORRECT ANSWER - Recommend credit life insurance be purchased from a specific
insurer
A producer must complete ? Hours of ethics biennially - CORRECT ANSWER -3
Tina the insured is considering replacing her existing life policy with a new one. The replacing
insurer is responsible for providing to her which of the following - CORRECT ANSWER -
A copy of all sales materials used by the replacing producer plus a replacement notice containing
the name of the policy to be replaced
Under which statute gives the insurance commissioner power to regulate insurance transactions?
- CORRECT ANSWER - Title 33 of Montana law
A ? May appraise an insurance policy. - CORRECT ANSWER - Consultant
Alien insurers are domiciled in another ? - CORRECT ANSWER - Country
Pete the insured recently cancelled his credit life policy. His unearned refund must be calculated
using which method? - CORRECT ANSWER - Sum of the years digits(rule of 78s)if the
premium was paid with a single premium but pro rated if the premium was paid in level
installments
In Montana which of the following is considered a life policy which provides a death benefit of
2,000 or less and premiums are payable at least on a monthly basis? - CORRECT
ANSWER - Industrial Life
Producers must report insurance fraud to the commissioner within ? Days - CORRECT
ANSWER - 60
ACTUAL Exam Questions and CORRECT
Answers
Under the freedom of choice act an insured is able to choose their own doctor in which health
plan? - CORRECT ANSWER - Stock or mutual indemnity plan
not-for-profit insurer which offers insurance only to its members is called a ? - CORRECT
ANSWER - Fraternal benefit society
A commissioner must give at least a ? Day notice prior to holding a hearing on a license
revocation or suspension - CORRECT ANSWER - 10
What is the continuing education requirement for an individual holding a limited lines credit
license? - CORRECT ANSWER - 5 hours every 2 years
What is the purpose of the viatical settlement act? - CORRECT ANSWER - Assist policy
owners who would like to sell their life insurance policies prior to death
What does a viatical settlement involve? - CORRECT ANSWER - The sale of a life
insurance policy
In Montana which of the following is not required to be covered by insurers? - CORRECT
ANSWER - Anorexia
The premium charged for limited lines credit insurance is excessive if the insurer does not pay
out at least ? Of premiums earnes - CORRECT ANSWER - 50%
In Montana home health services must be covered in group health policies if prescribed by a -
CORRECT ANSWER - Physician and provided by a licensed home health care provider
, An insurer must pay ? Interest on past due claims - CORRECT ANSWER - 10%
- CORRECT ANSWER - Recommend credit life insurance be purchased from a specific
insurer
A producer must complete ? Hours of ethics biennially - CORRECT ANSWER -3
Tina the insured is considering replacing her existing life policy with a new one. The replacing
insurer is responsible for providing to her which of the following - CORRECT ANSWER -
A copy of all sales materials used by the replacing producer plus a replacement notice containing
the name of the policy to be replaced
Under which statute gives the insurance commissioner power to regulate insurance transactions?
- CORRECT ANSWER - Title 33 of Montana law
A ? May appraise an insurance policy. - CORRECT ANSWER - Consultant
Alien insurers are domiciled in another ? - CORRECT ANSWER - Country
Pete the insured recently cancelled his credit life policy. His unearned refund must be calculated
using which method? - CORRECT ANSWER - Sum of the years digits(rule of 78s)if the
premium was paid with a single premium but pro rated if the premium was paid in level
installments
In Montana which of the following is considered a life policy which provides a death benefit of
2,000 or less and premiums are payable at least on a monthly basis? - CORRECT
ANSWER - Industrial Life
Producers must report insurance fraud to the commissioner within ? Days - CORRECT
ANSWER - 60
