Montana Insurance Laws and Regulations
Overview UPDATED ACTUAL Exam
Questions and CORRECT Answers
Commissioner - CORRECT ANSWER - The Commissioner of Insurance is an elected
official who supervises the operations of the Montana Insurance Department.
Financial Examination - CORRECT ANSWER - The Commissioner may conduct a
financial examination of any insurance company as often as deemed appropriate to determine the
solvency of the company.
Hearing - CORRECT ANSWER - The Commissioner may hold a hearing whenever
deemed necessary, with all hearings to be held or refused within 30 days after receiving demand.
Public Hearing - CORRECT ANSWER - The Commissioner must hold a public hearing
within 30 days upon written demand by any person.
Penalties - CORRECT ANSWER - After the hearing, the Commissioner can impose a fine
of up to $25,000 upon any person who violates the Montana insurance code.
Cease and Desist - CORRECT ANSWER - The Commissioner can issue a cease and desist
order to anyone violating the Montana insurance code.
Annual Statements - CORRECT ANSWER - All insurance companies authorized to do
business in Montana must file with the Commissioner a statement of their financial position by
March 1st of each year.
New Rates - CORRECT ANSWER - New premium rates may be used as soon as the
insurer files them with the Insurance Commissioner, known as the 'File and Use' system.
, Approval of Forms - CORRECT ANSWER - All insurance forms must be filed with and
approved by the Commissioner at least 60 days before delivery in Montana, known as the 'File
and Wait' system.
Transacting Insurance - CORRECT ANSWER - The term insurance transaction includes
solicitation, negotiations, effectuation of a contract of insurance, advising on coverage or claims,
collecting premiums, and indirectly acting as an insurance producer.
Premium - CORRECT ANSWER - A premium is consideration or payment for insurance
coverage, sometimes called assessments, policy fees, or service fees.
Policy - CORRECT ANSWER - A policy is a written contract for insurance, including all
clauses, riders, endorsements, and attached papers.
Insurance Producer - CORRECT ANSWER - An individual who sells, solicits, or
negotiates insurance on behalf of insurance companies for compensation.
Managing General Agent - CORRECT ANSWER - A managing general agent is
appointed by an insurer to supervise the insurer's business in Montana and may appoint and
terminate producers.
Adjuster - CORRECT ANSWER - An adjuster is an independent contractor who
investigates and negotiates claim settlements for a fee on behalf of the insurer.
Administrator - CORRECT ANSWER - An administrator has the authority to collect
insurance fees or premiums from Montana residents as well as settle claims.
Controlled Business - CORRECT ANSWER - Controlled business is coverage written by
a producer on his/her own life, health, property, immediate family, or business associates.
Overview UPDATED ACTUAL Exam
Questions and CORRECT Answers
Commissioner - CORRECT ANSWER - The Commissioner of Insurance is an elected
official who supervises the operations of the Montana Insurance Department.
Financial Examination - CORRECT ANSWER - The Commissioner may conduct a
financial examination of any insurance company as often as deemed appropriate to determine the
solvency of the company.
Hearing - CORRECT ANSWER - The Commissioner may hold a hearing whenever
deemed necessary, with all hearings to be held or refused within 30 days after receiving demand.
Public Hearing - CORRECT ANSWER - The Commissioner must hold a public hearing
within 30 days upon written demand by any person.
Penalties - CORRECT ANSWER - After the hearing, the Commissioner can impose a fine
of up to $25,000 upon any person who violates the Montana insurance code.
Cease and Desist - CORRECT ANSWER - The Commissioner can issue a cease and desist
order to anyone violating the Montana insurance code.
Annual Statements - CORRECT ANSWER - All insurance companies authorized to do
business in Montana must file with the Commissioner a statement of their financial position by
March 1st of each year.
New Rates - CORRECT ANSWER - New premium rates may be used as soon as the
insurer files them with the Insurance Commissioner, known as the 'File and Use' system.
, Approval of Forms - CORRECT ANSWER - All insurance forms must be filed with and
approved by the Commissioner at least 60 days before delivery in Montana, known as the 'File
and Wait' system.
Transacting Insurance - CORRECT ANSWER - The term insurance transaction includes
solicitation, negotiations, effectuation of a contract of insurance, advising on coverage or claims,
collecting premiums, and indirectly acting as an insurance producer.
Premium - CORRECT ANSWER - A premium is consideration or payment for insurance
coverage, sometimes called assessments, policy fees, or service fees.
Policy - CORRECT ANSWER - A policy is a written contract for insurance, including all
clauses, riders, endorsements, and attached papers.
Insurance Producer - CORRECT ANSWER - An individual who sells, solicits, or
negotiates insurance on behalf of insurance companies for compensation.
Managing General Agent - CORRECT ANSWER - A managing general agent is
appointed by an insurer to supervise the insurer's business in Montana and may appoint and
terminate producers.
Adjuster - CORRECT ANSWER - An adjuster is an independent contractor who
investigates and negotiates claim settlements for a fee on behalf of the insurer.
Administrator - CORRECT ANSWER - An administrator has the authority to collect
insurance fees or premiums from Montana residents as well as settle claims.
Controlled Business - CORRECT ANSWER - Controlled business is coverage written by
a producer on his/her own life, health, property, immediate family, or business associates.
