MONTANA LIFE INSURANCE EXAM 2026
INSURANCE LICENSING TEST PAPER
QUESTIONS AND SOLUTIONS GRADED A+
◉ 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
◉ 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.
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
INSURANCE LICENSING TEST PAPER
QUESTIONS AND SOLUTIONS GRADED A+
◉ 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
◉ 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.
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
