Montana Life & Health Insurance Exam — All Questions

Which agency issues resident life and health insurance producer licenses in Montana?

• a.Montana Division of Insurance
• b.Montana Department of Insurance
• c.Montana Commissioner of Securities and Insurance (CSI)✓
• d.Montana Department of Commerce

Montana regulates insurance through the Office of the Commissioner of Securities and Insurance (CSI), Montana State Auditor. Unusually, the state's insurance commissioner is the elected Montana State Auditor, so the same official regulates both insurance and securities. This dual, elected role is a distinctive Montana feature. This agency issues producer licenses and enforces the state's insurance laws.

In Montana, what authorizes a person to sell both life and health insurance products?

• a.A resident insurance producer license carrying the life and the accident/health lines of authority✓
• b.A separate license issued by a different agency for each product line
• c.A surplus lines broker license
• d.A property and casualty producer license

Montana issues a resident producer license, and the producer requests the lines of authority they qualify for. Adding both the life line and the accident and health line lets one license cover life and health products. Property/casualty and surplus lines are different lines for different products.

Before a licensed Montana producer may transact business on behalf of a specific insurer, what generally must happen?

• a.Nothing beyond holding a valid producer license
• b.The producer must post a surety bond with the state treasurer
• c.The insurer must appoint the producer, filing the appointment with the Commissioner of Securities and Insurance✓
• d.The producer must first sell property and casualty insurance

A license lets a person act as a producer, but to represent a particular company the insurer must appoint the producer and file that appointment with the regulator. A producer may hold appointments from more than one insurer, and appointments are how the insurer accepts responsibility for the producer's sales.

Which statement about keeping a Montana resident producer license active is correct?

• a.Continuing education is required only during the first year and never again
• b.Once issued, the license never expires and no continuing education is ever required
• c.The license renews automatically with no action or education by the producer
• d.The license must be renewed periodically and the producer must complete continuing education, including an ethics component, each renewal period✓

Montana, like other states, issues producer licenses for a set term and requires continuing education, including ethics hours, to renew. Letting CE or the renewal lapse can cause the license to expire, after which reinstatement rules and penalties may apply. Always confirm the current hour totals and deadlines with the regulator.