MONTANA LIFE INSURANCE EXAM 2026
PRACTICE TEST PAPER POLICY STRUCTURE
REVIEW SHEET FULL SOLUTIONS
◉ Define an ostensible Agent Answer: When the principal causes a
third person to believe someone is a principal's agent when that
person is not actually employed by the principal
◉ Is the principal responsible for the action of an unauthorized
subagent? Answer: No
◉ What is the Right of Person who deals with Agent Without
Knowledge of Agency? Answer: They may take any action against the
principal that they might have taken against the agent before notice
of the agency.
◉ What is the purpose of rate filings and regulations? Answer: 1
Regulating insurance rates so that they will not be excessive,
inadequate, or unfairly discriminatory.
2. Authorizing and regulating cooperative action among insurers in
ratemaking and ratemaking related activities.
◉ An insurer may not request an investigation consumer report
about an individual in connection to an insurance transaction unless
,what? Answer: 1. The individual was informed that they may request
to be interviewed i connection with the preparation of the
investigative consumer report
2. That upon a requestm they are entitled to receive a copy of the
investigative consumer report
◉ Upon receiving a request from an individual in regard to personal
information, what must the insurer do? Answer: Within 30 business
days, the insurer must:
1. Inform the individual of the nature and substance of the recorded
personal information in writing, by telephone, or by other oral
communication, whichever the insurer prefers.
2. Permit the individual to see and personally copy the recorded
personal information or obtain a copy by mail, whichever the
individual prefers; if the recorded personal information is in coded
form, an accurate translation in plain language must be provided in
writing.
◉ When must the request for personal information be corrected,
amended, or deleted? Answer: Within 30 days
◉ HOw often must a notice of insurance information practices under
HIPAA privacy regulations be delivered? Answer: Annually
, ◉ What is the purpose of the Insurance Fraud Protection Act?
Answer: Make easier the detection of insurance fraud and reduce the
occurrence of insurance fraud through the developent of fraud
prevention programs, improved investigative and prosecutorial
services, and inreased consumer awareness.
◉ What can the Commissioner do during an investigation? Answer: -
Conduct independent investigations when the Commissioner has
reason to believe that insurance fraud is being committed
- Respond to notice or complaints generated by federal, state, county,
and local law enforcement
- Review and respond to notices or reports of insurance fraud
submitted by any person
- Assemble evidence, prepare charges, and prosecute or assist in
prosecution.
◉ What is the Immunity from Liability? Answer: Amy insurer,
adjuster, administrator, consultant, or producer is not subject to civil
liability for filing reports, providing information, or cooperating with
an investigation or examination of insurance fraud conducted by the
Commissioner.
◉ What are the penalties and restitutions for a person who has
committed insruance fraud? Answer: 1 A fine up to $25,000, except
that the fine imposed upon insurance producers or adjusters may
not exceed $5,000 per violation
PRACTICE TEST PAPER POLICY STRUCTURE
REVIEW SHEET FULL SOLUTIONS
◉ Define an ostensible Agent Answer: When the principal causes a
third person to believe someone is a principal's agent when that
person is not actually employed by the principal
◉ Is the principal responsible for the action of an unauthorized
subagent? Answer: No
◉ What is the Right of Person who deals with Agent Without
Knowledge of Agency? Answer: They may take any action against the
principal that they might have taken against the agent before notice
of the agency.
◉ What is the purpose of rate filings and regulations? Answer: 1
Regulating insurance rates so that they will not be excessive,
inadequate, or unfairly discriminatory.
2. Authorizing and regulating cooperative action among insurers in
ratemaking and ratemaking related activities.
◉ An insurer may not request an investigation consumer report
about an individual in connection to an insurance transaction unless
,what? Answer: 1. The individual was informed that they may request
to be interviewed i connection with the preparation of the
investigative consumer report
2. That upon a requestm they are entitled to receive a copy of the
investigative consumer report
◉ Upon receiving a request from an individual in regard to personal
information, what must the insurer do? Answer: Within 30 business
days, the insurer must:
1. Inform the individual of the nature and substance of the recorded
personal information in writing, by telephone, or by other oral
communication, whichever the insurer prefers.
2. Permit the individual to see and personally copy the recorded
personal information or obtain a copy by mail, whichever the
individual prefers; if the recorded personal information is in coded
form, an accurate translation in plain language must be provided in
writing.
◉ When must the request for personal information be corrected,
amended, or deleted? Answer: Within 30 days
◉ HOw often must a notice of insurance information practices under
HIPAA privacy regulations be delivered? Answer: Annually
, ◉ What is the purpose of the Insurance Fraud Protection Act?
Answer: Make easier the detection of insurance fraud and reduce the
occurrence of insurance fraud through the developent of fraud
prevention programs, improved investigative and prosecutorial
services, and inreased consumer awareness.
◉ What can the Commissioner do during an investigation? Answer: -
Conduct independent investigations when the Commissioner has
reason to believe that insurance fraud is being committed
- Respond to notice or complaints generated by federal, state, county,
and local law enforcement
- Review and respond to notices or reports of insurance fraud
submitted by any person
- Assemble evidence, prepare charges, and prosecute or assist in
prosecution.
◉ What is the Immunity from Liability? Answer: Amy insurer,
adjuster, administrator, consultant, or producer is not subject to civil
liability for filing reports, providing information, or cooperating with
an investigation or examination of insurance fraud conducted by the
Commissioner.
◉ What are the penalties and restitutions for a person who has
committed insruance fraud? Answer: 1 A fine up to $25,000, except
that the fine imposed upon insurance producers or adjusters may
not exceed $5,000 per violation
