Life License
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
