Life License

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Montana permits different insurance premium rates for insureds if the differentiation is based on

Geography

Two producers may share commissions only if both

Have the same license

If at least 50% of an insurers shareholders are Montana residents, the insurer may be referred to as

Resident Domestic Insurer

The Guaranty Fund is designed to protect

Residents

A third party administrator may do each of the following EXCEPT

Sell Insurance

A Third Party Administrator may do each of the following EXCEPT

Sell Insurance policies

Who pays claims if an insurer is insolvent

State Guaranty Fund

A viatical statement involves

the sale of a life insurance policy

An inducement to purchase an insurance policy is

Rebating

Which of the following may obtain a temporary producer's license

The producers next of kin

The required 24hours of continuing education every two years must include

1 hour of state law update and 3 hours of ethics

An insured is not entitled to interest on a past due claim if the amount of the claim is less than

$10

Generally speaking, the Guarantee Fund will not pay claims in excess of

$300.000

The maximum fine that may be levied by the Insurance Commissioner against a producer is

$5000

The term of an appointment letter is

1 year

The biennial continuing education requirement includes how many hours of state law update

1

The maximum rate of interest that an insurer may charge on a cash value loan is

10%

After consulting, a consultant cannot sell insurance to the person consulted for a period of at least

12 months

The age of majority for purchasing insurance in Montana is

15

The earliest age at which one is considered to have a contractual capacity in the State of Montana is

15

The minimum age at which one may obtain a producer license in Montana is

18

After filing a claim, T has not heard from the insurer and the claim is now past-due, How much interest does the Insurer owe on the claim

18%

The total biennial continuing education requirement emcompasses how many hours

24

A whole life policy must provide a cash loan amount if the policy is how many years old

3

How many hours of ethics are required for a producer to complete biennially(2 years)

3

A producer must keep office records for

3 years

Acme Insurance has filed its proposed new premium rates with the Insurance Commissioner. How long must Acme wait to use new rates

30 days

After terminating a Producer's appointment, The insurer must notify the Commissioner within

30 days

If a member of the public requests that the commissioner hold a hearing on a particular matter, the commissioner must reply within

30 days

If an insurer terminates a producers appointment, notice must be given to the Insurance commissioner within

30 days

Mary asks her insurer what information the insurer has regarding the claims history, The insurer must reply within

30 days

If the Commissioner wants to revoke a producer's license, how much notice must be given prior to the hearing

60 days

The Montana Insurance Commissioner has how much time to review the new policy forms submitted by an insurer

60 days subject to a 60 day extension

The maximum rate of interest that an insurer may charge on cash value loan is

8%

A temporary producer license is effective fo

90 Days

A temporary producer license is valid for

90 days

Which of the following provides a general understanding of the issues involved in purchasing life insurance

A buyers guide

Adverse Selection

A high-risk person benefits more from insurance, so is more likely to purchase it.

Producer

A legal representative of an insurance company

An existing Insured is contemplating replacing his life policy. The Replacing insurer is responsible for making sure that the existing insured receives each of the following except

A statement of the Replacing Insurer's guaranteed investment returns for the insurer's investment portfolio

Montana permits insurance discrimination based on

Age

A Producer cannot act as a policyholder's guardian unless the policyholder is

An immediate family member

A reciprocal must be operated by an

Attorney in fact

A third party administrator must obtain a certificate of

Authorization

An insurer permitted to do business in Montana is referred to as

Authorized

A credit life policy may insure against each of the following risks except

Bankruptcy

The Insurance Commissioner may

Be a policyholder

The Guaranty Fund guarantees

Claims will be paid by the insurer

While licensed as a Montana Consultant, Cora is prohibited from

Collecting a Commission

Which of the following CANNOT be paid a fee for consulting

Consultants

Which of the following is required under Montana Law to have a written fee agreement

Consultants

An alien insurer is one domiciled in another

Country

An adjuster rejected a properly submitted claim form, This is

Defamation

A Montana producer acts illegally if the Producer is

Develops new insurance applications and policy forms

The commissioner asked a producer to disclose files at a hearing. The producer refused. The commissioner must use which venue to compel obedience to the subpeona or order

District Court

Under the State law, the Insurance Commissioner is authorized to

Enforce state insurance laws and administrative regulations

Acme insurance is considering new rates for its Montana insureds. Acme should know that Montana has which system in place for regulating insurance premium rates

File and wait

The producer's appointment letter must be

Filed with the Insurance Commissioner

Which Insurance company must be operated by an attorney in fact

Fraternal

Which type of insurer is operated on a non-profit basis and offers insurance only to its members

Fraternal Insurer

A buyers guide and policy summary must be provided with

Individual term and whole life policies

A producer's appointment letter may be revoked by the

Insurer

A producer's license may be revoked by the

Insurer

Who is responsible for the misdeeds of the producer

Insurer

Producers are legal representatives of

Insurers

A replacement notice must be provided when

Issuing a policy

Which license is required to negotiate a viatical settlement

Life Producer

An insurers rates are so low that the insurer may not be able to meet the expenses and pay the claims

May not be rejected by the insurance commissioner but may be rejected by the Guaranty Fund

A mutual life insurance company

May only guarantee dividends with written permission of the Montana Insurance Commissioner

P has applied for a home mortgage loan from the 1st National Bank of Valier. The bank

May require that the home be insured

Exaggerating policy terms is

Misrepresentation

Giving an applicant a free fire extinguisher each year as an inducement to purchase a policy is known as

Misrepresentation

Funds in the trust account may be disbursed for each of the following except

Necessary and appropriate office expenditures

An Insurance Company doing business within the boundaries of the State of Montana must

Obtain a certificate of authority

Which of the following may apply to the Commissioner for a nonresident producer license

One licensed in another state and who resides in that state

The commissioner may revoke a producers license for life

Only if a producers license has been previously terminated

Under what circumstances may an insurance office obtain a producers license

Only if all the producers in the office selling insurance are licensed

Which person employed in an insurance office must be licensed as a producer

Only those persons selling insurance

A non resident producer licensed in Montana may sell

Only those types of insurance that the producer could have sold in the producer's state of residence

The funding for the Guaranty Fund comes from

Other insurance companies

A client is in the hospital at the time of policy renewal. The producer is concerned about the policy terminating. The producer may

Pay the clients premium and charge the client up to 18% interest

Which of the following provides information unique to the policy being offered

Policy summary

Commission splits paid by a producer to another producer may NOT be paid from the

Politicians

When an insurer obtains confidential credit or personal information regarding an applicant, the Insurer may share that information with the

Producer

Individuals authorized to negotiate insurance transactions on behalf of the insurers are referred to in Montana is

Producers

Which of the following may appraise insurance policies

Producers

An insurer terminated a Producer for a cause. The Insurer must

Provide notice to the commissioner

If the Commissioner subpeonas records from a producer, the producer should submit the records directly to

The Commissioner

The length of a producer's license period is determined by

The Insurance Commissioner

Who reviews and approved the Insurance continuing education courses in the State of Montana

The Insurance Commissioner

The Insurance Commissioner is

The elected state executive who regulates the insurance industry.

A person with both a PC and LH license is not permitted to sell

Title Insurance

Using different policy terms for persons of the same rate of hazard classification is known as

Twisting

Using false or incomplete policy comparisons to induce policy requirement is

Twisting

Each is fraud except

Using an authorized insurer to provide coverage

An unauthorized insurer lacks

a certificate of authority

Applicant

a person applying for insurance

Montana uses what system to regulate new policy forms

file and wait

If an insurer desires to terminated a producer's appointment letter, it may do so

without prior notice to the producer

An insurer may reveal confidential information about an insured third party if the insured gives

written consent of the producer


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