MT Life and Health Laws and Regulations

Question 1

By _____ __ of each year, all insurance companies authorized in Montana must file with the commissioner a statement of their financial conditions, transactions, and affairs for the previous calendar year

Answer 1

March 1

Question 2

Authorized insurers must be examined at least once every __ years

Answer 2

5

Question 3

The department of insurance will commence an action of violation of the insurance code within:

Answer 3

• two years of the date of violation
  -two years after department discovers or should have discovered the violation
  -may not commence an action unless it is within 5 years of date of violation

Question 4

All insurers applying for authority to transact insurance in Montana must appoint the commissioner as:

Answer 4

Their attorney for any legal actions issued against them in Montana (called service of process)

Question 5

An applicant for an agent’s or solicitor’s license must take the licensing examination within __ months of applying for a license

Answer 5

6

Question 6

The insurer must file with the insurance department a written notice of appointment within ___ days from the date the agency contract is executed with a licensed producer

Answer 6

15

Question 7

Any person licensed as an insurance producer, consultant, or adjuster in Montana must complete at least ___ hours of approved continuing education every ___ years, concluding at least ___ hours of ethics credits

Answer 7

24; 2; 3

Question 8

Any person licensed as an insurance producer, adjuster, or consultants must complete at least ___ credit hour(s) of approve continuing education on changes in Montana insurance laws and administrative rules once every ___ years

Answer 8

1; 2

Question 9

A person licensed to act as a producer for surety bail bonds, prepaid legal insurance, or limited lines credit insurance must complete at least __ hours of approved continuing education in their area every ___ years

Answer 9

5; 2

Question 10

Licensees must ________ file a certification with the commissioner showing the approved courses, lectures, seminars, and instructional programs the person has completed

Answer 10

Biennially

Question 11

A consultant is a person who:

Answer 11

For a fee, examines, appraises, reviews or evaluated an insurance policy annuity or pension program or who makes recommendations or gives advice on these

Question 12

An administrator certificate of registration must be renewed each year by the administrator paying a continuation fee of $___ on or before ____ __

Answer 12

100; July 1

Question 13

A licensee whose license is revoked must wait ___ ___ before reapplying for a license

Answer 13

One year

Question 14

An insurance producer who unlawfully appropriates insurance premiums for his own use commits a ______

Answer 14

Theft

Question 15

An agency is _____ when the agent is really employed by the principal

Answer 15

Actual

Question 16

An agency is ______ when the principal intentionally or unintentionally causes a third person to believe another person is the principal’s agent when that person is not really employed by the principal

Answer 16

Ostensible

Question 17

It is illegal to knowingly make any misleading statement or comparison regarding the terms, conditions, benefits, or advantages of any policy in order to induce a person to retain, lapse, forfeit, surrender, exchange, or convert an insurance policy. This practice is called __________

Answer 17

Twisting

Question 18

It is illegal to issue or delivery any of the following to induce people to purchase insurance:

Answer 18

-agency company stock
-other capital stock, benefit certificates or securities
-advisory board contracts promising returns and profits

Question 19

It is illegal to induce applicants to purchase insurance by making agreements that are not specifically included in the insurance contract, such as offering:

Answer 19

-rebates of premiums
-advantages in dividends or benefits
-special favors
-any stocks, bonds, other securities, or promise of profits as inducement to purchase
-any other valuable consideration not specifically included in the contract

Question 20

An insurer must pay or deny a claim within ___ days after receiving proof of loss unless the insurer makes a reasonable request for additional information

Answer 20

30

Question 21

If an insurer fails to timely pay a claim, the insurer must pay an amount equal to the amount of the claim due plus __% annual interest calculated from the date the claim was due

Answer 21

10

Question 22

A health service corporation must inform members covered under individual plans of any rate increase at least ___ days prior to such increase

Answer 22

45

Question 23

The premium rate for an individual policy converted from a group plan may not be increased during the first __ months of coverage

Answer 23

6

Question 24

Any minor age ___ years or older may contract for annuities and for insurance upon his own life, body, health, property, liabilities, or other interests or on the person of another in whom the minor has an insurable interest

Answer 24

15

Question 25

A nonprofit association that protects policyowners, insureds, and beneficiaries against insurers that become impaired and unable to perform their contractual obligations

Answer 25

Montana Life and Health Insurance Guaranty Association

Question 26

An ______ insurer is a member insurer that is not insolvent and is placed under an order of rehabilitation or supervision by a court of competent jurisdiction

Answer 26

Impaired

Question 27

An ________ insurer is a member insurer that is placed under an order of liquidation by a court of competent jurisdiction upon a finding of insolvency

Answer 27

Insolvent