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Free Casualty – Montana Specific Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the Casualty – Montana Specific practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1Which duty does Montana law expressly assign to the insurance commissioner?

    1. A. Enforce applicable Montana insurance laws
    2. B. Approve every civil settlement involving an insurer
    3. C. Set federal banking policy
    4. D. License Montana attorneys

    Answer: A

    Explanation: MCA 33-1-311(1) directs the commissioner to enforce applicable provisions of Montana law and execute duties imposed by state law. The controlling text states: "shall enforce the applicable provisions of the laws of this state"

    Reference: 33-1-311. General powers and duties, MCA — MCA 33-1-311(1)

  2. 2How much advance notice must a Montana property or casualty insurer generally give when it intends not to renew?

    1. A. 10 days
    2. B. 20 days
    3. C. 30 days
    4. D. At least 45 days

    Answer: D

    Explanation: MCA 33-15-1105(1) generally requires mailing or delivery of nonrenewal notice at least 45 days before policy expiration. The controlling text states: "45 days"

    Reference: 33-15-1105. Nonrenewal -- renewal premium, MCA — MCA 33-15-1105(1)

  3. 3Which coverage is included within Montana's statutory kinds of casualty insurance?

    1. A. Liability insurance
    2. B. Life insurance
    3. C. Property insurance
    4. D. Marine insurance

    Answer: A

    Explanation: MCA 33-1-206 describes casualty insurance to include liability coverage against legal liability for bodily injury, death, or property damage. The controlling text states: "legal liability for the death, injury, or disability of any human being"

    Reference: 33-1-206. Casualty insurance, MCA — MCA 33-1-206

  4. 4How often must Montana's commissioner examine each authorized insurer at minimum?

    1. A. Every year
    2. B. Every 3 years
    3. C. Every 5 years
    4. D. Every 2 years

    Answer: C

    Explanation: MCA 33-1-401(1) requires examination of each authorized insurer not less frequently than every five years. The controlling text states: "not less frequently than every 5 years"

    Reference: 33-1-401. Examination of insurers, MCA — MCA 33-1-401(1)

  5. 5How many days before expiration must Montana generally notify an insured of less favorable renewal terms?

    1. A. 15 days
    2. B. 30 days
    3. C. 45 days
    4. D. 60 days

    Answer: C

    Explanation: MCA 33-15-1106(1) conditions less favorable renewal terms or higher rates on at least 45 days' advance notice. The controlling text states: "at least 45 days before the expiration date"

    Reference: 33-15-1106. Renewal with altered terms, MCA — MCA 33-15-1106(1)

  6. 6What are Montana's minimum motor-vehicle liability limits for bodily injury per person, bodily injury per accident, and property damage?

    1. A. $15,000/$30,000/$10,000
    2. B. $20,000/$40,000/$15,000
    3. C. $25,000/$50,000/$20,000
    4. D. $50,000/$100,000/$50,000

    Answer: C

    Explanation: MCA 61-6-103(1)(b) sets minimum limits of $25,000 per person, $50,000 per accident, and $20,000 property damage. The controlling text states: "$25,000 because of bodily injury to or death of one person"

    Reference: 61-6-103. Motor vehicle liability policy minimum limits -- other requirements, MCA — MCA 61-6-103(1)(b)

  7. 7After receiving a temporary cease-and-desist order, how long does a Montana respondent have to request a hearing in writing?

    1. A. 5 days
    2. B. 10 days
    3. C. 15 days
    4. D. 30 days

    Answer: C

    Explanation: MCA 33-1-318(1)(b) gives the respondent 15 days from receipt of the temporary order to request a hearing. The controlling text states: "15 days from receipt of the order"

    Reference: 33-1-318. Injunctions and other remedies, MCA — MCA 33-1-318(1)(b)

  8. 8What ordinarily demonstrates diligent effort before Montana surplus-lines placement when three authorized insurers write the line?

    1. A. One authorized insurer
    2. B. Three authorized insurers
    3. C. Two authorized insurers
    4. D. Five authorized insurers

    Answer: B

    Explanation: MCA 33-2-302 requires diligent effort with a minimum of three authorized insurers actually transacting the line when that market exists. The controlling text states: "minimum of three insurers"

    Reference: 33-2-302. Home state exclusive authority -- conditions precedent to sale of surplus lines insurance, MCA — MCA 33-2-302

  9. 9Who may reject uninsured-motorist coverage on a Montana motor-vehicle liability policy?

    1. A. The additional insured
    2. B. The named insured
    3. C. The insurer
    4. D. The insurance producer

    Answer: B

    Explanation: MCA 33-23-201(2) gives the named insured the right to reject uninsured-motorist coverage. The controlling text states: "right to reject the coverage"

    Reference: 33-23-201. Motor vehicle liability policies to include uninsured motorist coverage -- rejection by insured, MCA — MCA 33-23-201(2)

  10. 10Under Montana MCA 33-1-317, what is the maximum fine imposed on an insurance producer per violation?

    1. A. $1,000
    2. B. $5,000
    3. C. $10,000
    4. D. $25,000

    Answer: B

    Explanation: The general ceiling is $25,000, but MCA 33-1-317 limits a producer or adjuster fine to $5,000 per violation. The controlling text states: "may not exceed $5,000 per violation"

    Reference: 33-1-317. Penalty imposed by commissioner, MCA — MCA 33-1-317

Topics in this practice bank

These topics describe the available practice for Casualty – Montana Specific. Review the examination outline and its sources for scope and allocation details.

  • I. MONTANA STATUTES AND RULES COMMON TO LIFE, DISABILITY (A&H), PROPERTY AND CASUALTY INSURANCE (25 scoreable questions)
    • A. Insurance Commissioner/Department
    • A. Insurance Commissioner/Department / 1. Broad powers and duties
    • A. Insurance Commissioner/Department / 2. Examination of records
    • A. Insurance Commissioner/Department / 3. Cease and desist orders
    • A. Insurance Commissioner/Department / 4. Penalties
    • B. General Definitions
    • B. General Definitions / 1. Domestic, foreign, alien
    • B. General Definitions / 2. Insurance transactions
    • B. General Definitions / 3. Authorized/unauthorized companies and certificate of authority
    • B. General Definitions / 4. Fraternals and their producers
    • C. Licensing Requirements
    • C. Licensing Requirements / 1. Definitions
    • C. Licensing Requirements / 2. Nonresident/reciprocal producer
    • C. Licensing Requirements / 3. Consultant
    • C. Licensing Requirements / 4. Administrator
    • C. Licensing Requirements / 5. Surplus lines producer
    • C. Licensing Requirements / 6. Continuing education
    • C. Licensing Requirements / 7. Adjuster
    • C. Licensing Requirements / 8. Premium financing
    • C. Licensing Requirements / 9. Temporary licenses
    • C. Licensing Requirements / 10. Eligibility for license
    • C. Licensing Requirements / 11. Suspension, revocation, and termination of licenses
    • C. Licensing Requirements / 12. Producer appointment/contract cancellation
    • C. Licensing Requirements / 13. Resident producer
    • D. Unfair Trade Practices
    • D. Unfair Trade Practices / 1. False advertising
    • D. Unfair Trade Practices / 2. Rebating
    • D. Unfair Trade Practices / 3. Twisting
    • D. Unfair Trade Practices / 4. Misrepresentation
    • D. Unfair Trade Practices / 5. Defamation
    • D. Unfair Trade Practices / 6. Excess fees/charges
    • D. Unfair Trade Practices / 7. Unfair discrimination
    • D. Unfair Trade Practices / 8. Unfair claims settlement practices
    • E. Licensee Responsibilities
    • E. Licensee Responsibilities / 1. Fiduciary capacity
    • E. Licensee Responsibilities / 2. Commission sharing
    • E. Licensee Responsibilities / 3. Place of business/recordkeeping
    • E. Licensee Responsibilities / 4. Principal producer relationship
    • F. Rate and Form Regulations
    • G. Montana Insurance Guaranty Association
    • H. Insurance Information & Privacy Protection Act
    • I. Basic Contract Language
    • J. Insurance Fraud protection Act
  • II. MONTANA STATUTES AND RULES COMMON TO PROPERTY & CASUALTY INSURANCE ONLY (2–3 scoreable questions)
    • A. Cancellation/Nonrenewal
    • B. Surplus Lines Insurance
    • C. Montana Use of Credit Information in Personal Insurance
  • III. MONTANA STATUTES AND RULES PERTINENT TO CASUALTY INSURANCE ONLY (9–10 scoreable questions)
    • A. Casualty Insurance defined
    • B. Automobile Insurance/Financial Responsibility
    • B. Automobile Insurance/Financial Responsibility / 1. Required limits BI/PD
    • B. Automobile Insurance/Financial Responsibility / 2. Uninsured Motorists-defined
    • B. Automobile Insurance/Financial Responsibility / 3. Mature defensive Driving Act
    • B. Automobile Insurance/Financial Responsibility / 4. Comparative negligence
    • B. Automobile Insurance/Financial Responsibility / 5. Cancellation/nonrenewal
    • B. Automobile Insurance/Financial Responsibility / 6. Prohibited discrimination
    • B. Automobile Insurance/Financial Responsibility / 7. Good Driver Discount
    • C. Assigned Risk/Auto Insurance Plan
    • D. Worker’s Compensation
    • D. Worker’s Compensation / 1. Plan 1, 2, and 3
    • D. Worker’s Compensation / 2. Claims and benefits
    • E. Professional Liability Insurance

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