Montana State Life Insurance Exam 2025/2026 | Complete Study Guide with Verified Questions &
Accurate Answers
How often does the Commissioner perform examination of an insurer? - (ANSWER)Once every 5 years
After the examination is completed, when does the examiner's report must be filed with the
Commissioner? - (ANSWER)Within 60 days
What is the window for a rebuttal? - (ANSWER)30 days
If an investigatory hearing is needed, when does it need to be held? - (ANSWER)No less than 20 days.
How long must the producers keep records of each insurance transaction? - (ANSWER)3 years
What needs to be on the Commissioner orders and notices to be effective? - (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? - (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? - (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? - (ANSWER)15 days (written)
What is the penalty for violating a cease and desist order? - (ANSWER)$1,000. Each day of violation
constitutes a separate violation
,Montana State Life Insurance Exam 2025/2026 | Complete Study Guide with Verified Questions &
Accurate Answers
All hearings must be conducted pursuant to which act? - (ANSWER)the Montana Administrative
Procedure Act.
When does a rehearing must be held? - (ANSWER)Within 30 days
Transacting an insurance includes 4 what steps? - (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? - (ANSWER)Certificate of Authority
Definition of a business entity does not include what? - (ANSWER)an individual
What is an adjuster? - (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? - (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? - (ANSWER)1/ Is
currently licesned as a resident is in good standing in the person's home state.
, Montana State Life Insurance Exam 2025/2026 | Complete Study Guide with Verified Questions &
Accurate Answers
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? - (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 ? - (ANSWER)3 years
What is an administrator? - (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? - (ANSWER)A written agreement between
the person and the insurer
How long does the written agreement between an administrator and an insurer must be kept? -
(ANSWER)5 years
What certificate must an administrator hold? - (ANSWER)Certificate of Registration
What's the penalty for a person acting as an administrator without the Certificate of Registration? -
(ANSWER)$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? - (ANSWER)5 hours for every 24 months.
Accurate Answers
How often does the Commissioner perform examination of an insurer? - (ANSWER)Once every 5 years
After the examination is completed, when does the examiner's report must be filed with the
Commissioner? - (ANSWER)Within 60 days
What is the window for a rebuttal? - (ANSWER)30 days
If an investigatory hearing is needed, when does it need to be held? - (ANSWER)No less than 20 days.
How long must the producers keep records of each insurance transaction? - (ANSWER)3 years
What needs to be on the Commissioner orders and notices to be effective? - (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? - (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? - (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? - (ANSWER)15 days (written)
What is the penalty for violating a cease and desist order? - (ANSWER)$1,000. Each day of violation
constitutes a separate violation
,Montana State Life Insurance Exam 2025/2026 | Complete Study Guide with Verified Questions &
Accurate Answers
All hearings must be conducted pursuant to which act? - (ANSWER)the Montana Administrative
Procedure Act.
When does a rehearing must be held? - (ANSWER)Within 30 days
Transacting an insurance includes 4 what steps? - (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? - (ANSWER)Certificate of Authority
Definition of a business entity does not include what? - (ANSWER)an individual
What is an adjuster? - (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? - (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? - (ANSWER)1/ Is
currently licesned as a resident is in good standing in the person's home state.
, Montana State Life Insurance Exam 2025/2026 | Complete Study Guide with Verified Questions &
Accurate Answers
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? - (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 ? - (ANSWER)3 years
What is an administrator? - (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? - (ANSWER)A written agreement between
the person and the insurer
How long does the written agreement between an administrator and an insurer must be kept? -
(ANSWER)5 years
What certificate must an administrator hold? - (ANSWER)Certificate of Registration
What's the penalty for a person acting as an administrator without the Certificate of Registration? -
(ANSWER)$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? - (ANSWER)5 hours for every 24 months.
