Montana Property & Casualty Insurance License Exam — All Questions
3 questions
Which official regulates insurance and licenses resident property and casualty producers in Montana?
- a.The Montana Secretary of State
- b.The Montana Department of Revenue
- c.The Montana Commissioner of Securities and Insurance (the State Auditor's office)✓
- d.The Montana Public Service Commission
In Montana the elected State Auditor serves as the Commissioner of Securities and Insurance (CSI), whose office licenses producers, reviews forms and rates, and enforces the insurance code. A distinctive Montana fact is that the insurance regulator and the State Auditor are the same office.
A Montana producer offers to rebate part of the commission to a client as an inducement to buy a policy. Under Montana's unfair trade practices law this is:
- a.Permitted if disclosed to the insurer
- b.Permitted for new clients only
- c.Prohibited rebating✓
- d.Required to be reported but otherwise lawful
Giving any part of the premium or commission, or other valuable consideration not stated in the policy, as an inducement to buy is prohibited rebating under Montana's unfair trade practices law and can bring fines and license action by the Montana Commissioner of Securities and Insurance.
After a Montana personal auto or homeowners policy is past its initial underwriting period, mid-term cancellation by the insurer is generally permitted only:
- a.For specific statutory grounds such as nonpayment of premium, fraud, or a substantial increase in the hazard, with required advance written notice✓
- b.For any reason with no notice
- c.Only in the first week after issuance
- d.Never, under any circumstances
Montana limits mid-term cancellation of seasoned personal-lines policies to defined grounds such as nonpayment, fraud, or a material increase in the insured hazard, and requires advance written notice so the insured can replace coverage. The exact notice day-counts are set by statute; verify current figures with the Montana Commissioner of Securities and Insurance.