Montana State Life Insurance Exam
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? - answer30 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? - answer3
years
What needs to be on the Commissioner orders and notices to be effective? - answer1.
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? -
answerCease and Desist Orders
How much time does the respondent have to request for a hearing after a cease and
desist order is received? - answer15 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? - answerthe Montana
Administrative Procedure Act.
When does a rehearing must be held? - answerWithin 30 days
,Transacting an insurance includes 4 what steps? - answer1. 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? - answerCertificate of Authority
Definition of a business entity does not include what? - answeran individual
What is an adjuster? - answerAn 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? - answer1. 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? -
answer1/ 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? - answerAn 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 ? - answer3 years
What is an administrator? - answerAn 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? - answerA written
agreement between the person and the insurer
How long does the written agreement between an administrator and an insurer must be
kept? - answer5 years
, What certificate must an administrator hold? - answerCertificate 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? - answer5 hours for every 24
months.
What will happen if continuing education requirements are not met? - answerLicense
will lapse
How long does a temporary license without requiring examination last? - answer90 days
Can the Commissioner issue more than one temporary license, to or with respect to the
same individual within any 12 month period? - answerno
If a person's license is revoked, how long do they must wait before they can reapply for
the license? - answer1 year after the revocation and all license qualifications are met.
However, the Commissioner may refuse to issue a license for up to 5 years
When must the appointing insurer file the appointment to the Commissioner? -
answerWithin 15 days of the appointment's effective date.
When does a disapproved appointment become voided? - answerOn the date the
department provides notification to the insurer.
Define "False Advertisement" - answerThe act of publishing or disseminating in any
fashion, or through any media, any untrue, deceptive, or misleading statement about the
business of insurance or, with respect to any person, in the conduct of such person's
insurance business.
Define "rebating" - answerunlawful act of offerring rebate of premiums payable, any
special favor in dividends or other benefits, or any valuable consideration or inducement
not specified in the policy.
Define "twisting" - answerThe act of making or issuing any written or oral statement
misinterpreting or making incomplete comparisons as to the terms, conditions, or
benefits, contained in any policy for the purpose of inducing/tending to induce the
policyholder to lapse, forfeit, surrender, retain, exchange, or convert any insurance
policy.
Define "defamation" - answerMaking any false or maliciously critical statements
regarding the financial condition of any person, with the intent to injure such person.
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? - answer30 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? - answer3
years
What needs to be on the Commissioner orders and notices to be effective? - answer1.
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? -
answerCease and Desist Orders
How much time does the respondent have to request for a hearing after a cease and
desist order is received? - answer15 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? - answerthe Montana
Administrative Procedure Act.
When does a rehearing must be held? - answerWithin 30 days
,Transacting an insurance includes 4 what steps? - answer1. 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? - answerCertificate of Authority
Definition of a business entity does not include what? - answeran individual
What is an adjuster? - answerAn 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? - answer1. 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? -
answer1/ 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? - answerAn 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 ? - answer3 years
What is an administrator? - answerAn 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? - answerA written
agreement between the person and the insurer
How long does the written agreement between an administrator and an insurer must be
kept? - answer5 years
, What certificate must an administrator hold? - answerCertificate 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? - answer5 hours for every 24
months.
What will happen if continuing education requirements are not met? - answerLicense
will lapse
How long does a temporary license without requiring examination last? - answer90 days
Can the Commissioner issue more than one temporary license, to or with respect to the
same individual within any 12 month period? - answerno
If a person's license is revoked, how long do they must wait before they can reapply for
the license? - answer1 year after the revocation and all license qualifications are met.
However, the Commissioner may refuse to issue a license for up to 5 years
When must the appointing insurer file the appointment to the Commissioner? -
answerWithin 15 days of the appointment's effective date.
When does a disapproved appointment become voided? - answerOn the date the
department provides notification to the insurer.
Define "False Advertisement" - answerThe act of publishing or disseminating in any
fashion, or through any media, any untrue, deceptive, or misleading statement about the
business of insurance or, with respect to any person, in the conduct of such person's
insurance business.
Define "rebating" - answerunlawful act of offerring rebate of premiums payable, any
special favor in dividends or other benefits, or any valuable consideration or inducement
not specified in the policy.
Define "twisting" - answerThe act of making or issuing any written or oral statement
misinterpreting or making incomplete comparisons as to the terms, conditions, or
benefits, contained in any policy for the purpose of inducing/tending to induce the
policyholder to lapse, forfeit, surrender, retain, exchange, or convert any insurance
policy.
Define "defamation" - answerMaking any false or maliciously critical statements
regarding the financial condition of any person, with the intent to injure such person.
