October 18, 2022

Montana Insurance License Exam

Written by: Ethan Peyton

Cartoon woman holding Montana Insurance License Exam document

    Passing your Montana insurance license exam is a pivotal part of becoming a licensed insurance agent in the state of Montana.

    In this guide, we’ll break down the general information that you need to know in order to pass your exam, outline the differences between each examination line, and offer tips on both: how to prepare for your Montana insurance licensing exam, and on what to do after you pass.

     

    Montana Insurance Exam Basics

    General Information

    The state of Montana uses Pearson VUE to administer its insurance agent licensing. This means you can register and book all of your licensing examinations through the Pearson VUE website. Your test can be carried out online or in person.

    Each major insurance line examination is made up of multiple-choice questions and includes both general and state-specific material.

    The general questions test your federal insurance product and agent knowledge, whereas the state-specific questions test you on the Montana insurance regulations and laws that you will need to know in order to operate as an insurance agent.

    Score Explanation

    Each licensing examination has multiple versions — known as forms — which are made up of different questions.

    This means that your exam can be easier or more difficult than another candidate’s, even if you’re being tested on the same exam, on the same day.

    A procedure known as equating is used to ensure that any differences in form difficulty are taken into account so that no one faces an unfair advantage or disadvantage.

    Example:

    Imagine that you have two forms of a Life exam.

    On Form X, the Montana Department of Insurance determines that correctly answering 30 questions demonstrates that you have the minimum knowledge necessary to pass your exam and become a licensed agent.

    On Form Y, however, the same level of understanding is demonstrated by answering 25 questions correctly. In this scenario, you would need 30 correct answers to pass on Form X, whereas you would need 25 correct answers to pass on Form Y.

    Following this, a second procedure known as scaling is used to translate this method into a numerical figure.

    As a result, the score you will see after your exam is not actually a reflection of the number of answers you got correct, nor is it a reflection of your final percentage score. It is just a number that is meant to show how well or poorly you did relative to what you needed to do in order to pass. 

    Note: Numerical scores are only reported to the candidates that fail. Candidates that pass will receive a “pass” mark.

     

    Cost

    Your Montana insurance license exam cost will depend on the number of examinations that you take:

    Examination

    Cost 

    Time Allowed

    Resident Producer – Life

    $59

    120 Minutes

    Accident & Disability

    $59

    135 Minutes

    Property

    $59

    120 Minutes

    Casualty

    $59

    135 Minutes

    Note: You should focus on one exam at a time. This will likely increase the amount of time and effort you can allocate to each examination and should allow you to feel more prepared when you sit your exam.

    Recommended Pre-License Course

    Before taking your insurance exam, we recommend completing a pre-license education course. This is not a requirement in the state of Montana, but it can go a long way in helping you get accustomed to the information that you will be expected to know.
    4.7 out of 5 starsKaplan Education Company

     

    Montana Life and Health Insurance Exam

    Below you can find the content outline offered by Pearson VUE.

    We recommend using it as a checklist when working through your pre-license education course. This way, you’ll be absolutely sure that you haven’t missed any topic that you will be tested on later.

    Life General Knowledge Content Outline

    50 scorable questions, plus 5 pretest questions.

    I. Types of Policies

    A. Traditional whole life products
    B. Interest/market-sensitive/adjustable life products
    C. Term life
    D. Annuities
    E. Combination plans and variations

     

    II. Policy Riders, Provisions, Options, and Exclusions

    A. Policy riders
    B. Policy provisions and options
    C. Policy exclusions

     

    III. Completing the Application, Underwriting, and Delivering the Policy

    A. Completing the application
    B. Underwriting
    C. Delivering the policy
    D. Contract law

     

    IV. Retirement, and Other Insurance Concepts

    A. Third-party ownership
    B. Life settlements
    C. Group life insurance
    D. Retirement plans
    E. Life insurance needs analysis/suitability
    F. Social Security benefits
    G. Tax treatment of insurance premiums, proceeds, and dividends

     

    Life Montana Specific Content Outline

    36 scorable questions, plus 5 pretest questions.

    I. Montana Statutes and Rules Common to Life, Disability (A&H), Property and Casualty Insurance

    A. Insurance Commissioner/Department
    B. General Definitions
    C. Licensing Requirements
    D. Unfair Trade Practices
    E. Licensee Responsibilities
    F. Rate and Form Regulations
    G. Life and Health Insurance Guaranty Association
    H. Insurance Information & Privacy Protection Act
    I. Basic Contract Language
    J. Insurance Fraud Protection Act

     

    II. Montana Statutes and Rules Pertinent to Life Insurance and Annuities Only

    A. Replacement/Disclosure Requirements
    B. Individual Life: Required/Standard provisions
    C. Credit Life
    D. Group Life
    E. Viaticals

     

    Accident & Health General Knowledge Content Outline

    50 scorable questions, plus 5 pretest questions.

    I. Types of Polices

    A. Disability income
    B. Accidental death and dismemberment
    C. Medical expense insurance
    D. Medicare supplement policies
    E. Group insurance
    F. Individual/Group Long Term Care (LTC)
    G. Other policies

     

    II. Policy Provisions, Clauses, and Riders

    A. Mandatory and optional provisions
    B. Other provisions and clauses
    C. Riders
    D. Rights of renewability

     

    III. Social Insurance

    A. Medicare (Parts A, B, C, D)
    B. Medicaid
    C. Social Security benefits

     

    IV. Other Insurance Concepts

    A. Total, partial, recurrent, and residual disability
    B. Owner’s rights
    C. Dependent children benefits
    D. Primary and contingent beneficiaries
    E. Modes of premium payments
    F. Nonduplication and coordination of benefits
    G. Occupational vs. non-occupational
    H. Tax treatment of premiums and proceeds of insurance contracts
    I. Managed care
    J. Workers Compensation
    K. Subrogation
    L. Cost containment

     

    V. Field Underwriting Procedures

    A. Completing the application
    B. Explaining sources of insurability and HIPAA privacy info
    C. Initial premium payment and receipt
    D. Submitting application to company for underwriting
    E. Policy delivery
    F. Explaining policy to clients
    G. Replacement
    H. Contract law

     

    Accident & Health Montana Specific Content Outline

    42 scorable questions, plus 5 pretest questions.

    I. Montana Statutes and Rules Common to Life, Disability (A&H) Insurance

    A. Insurance Commissioner/Department
    B. General Definitions
    C. Licensing Requirements
    D. Unfair Trade Practices
    E. Licensee Responsibilities
    F. Rate and Form Regulations
    G. Life and Health Insurance Guaranty Association
    H. Insurance Information & Privacy Protection Act
    I. Basic Contract Language
    J. Insurance Fraud Protection Act

     

    II. Montana Statutes and Rules Pertinent to Disability (A&H) Insurance Only

    A. Required Coverage and Provisions
    B. Medicare Supplements
    C. Group Disability
    D. Health Maintenance Organizations (HMO)
    E. Health Service Corporations
    F. Special Policies
    G. Preferred Provider Agreements Act
    H. Freedom of Choice in Selection of Practitioners
    I. Coverage for Insureds in Special Circumstances
    J. Long-term Care

    We recommend reading our in-depth How to Pass the Life Insurance Exam guide for a better overview.

     

    Montana Property and Casualty License Exam

    Below you can find the content outline offered by Pearson VUE.

    You should use this outline as a checklist when working through your pre-license education course in order to ensure that you haven’t missed any topic that you will be tested on later.

    Property General Knowledge Content Outline

    50 scorable answers plus 5 pretest questions.

    I. Types of Policies

    A. Homeowners
    B. Dwelling policies
    C. Commercial lines
    D. Inland marine
    E. National Flood Insurance Program
    F. Others

     

    II. Insurance Terms and Related Concepts

    A. Insurance
    B. Insurable interest
    C. Risk
    D. Hazard
    E. Peril
    F. Loss
    G. Loss Valuation
    H. Proximate cause
    I. Deductible
    J. Indemnity
    K. Limits of liability
    L. Coinsurance/Insurance to value
    M. Occurrence
    N. Cancellation
    O. Nonrenewal
    P. Vacancy and Inoccupancy
    Q. Liability
    R. Negligence
    S. Binder
    T. Endorsements
    U. Blanket vs. Specific

     

    III. Policy Provisions and Contract Law

    A. Declarations
    B. Insuring agreement
    C. Conditions
    D. Exclusions
    E. Definition of the insured
    F. Duties of the insured
    G. Obligations of the insurance company
    H. Mortgagee rights
    I. Proof of loss
    J. Notice of claim
    K. Appraisal
    L. Other Insurance Provision
    M. Subrogation
    N. Elements of a contract
    O. Warranties, representations, and concealment
    P. Sources of underwriting information
    Q. Fair Credit Reporting Act
    R. Privacy Protection (Gramm Leach Bliley)
    S. Policy Application
    T. Terrorism Risk Insurance Act (TRIA)
    U. Territory

     

    Montana Specific Property Content Outline

    32 scorable answers plus 10 pretest questions.

    I. Montana Statutes and Rules Common to Property and Casualty Insurance

    A. Insurance Commissioner/Department
    B. General Definitions
    C. Licensing Requirements
    D. Unfair Trade Practices
    E. Licensee Responsibilities
    F. Rate and Form Regulations
    G. Life and Health 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

    A. Cancellation/Nonrenewal
    B. Surplus Lines Insurance
    C. Montana Use of Credit Information in Personal Insurance

     

    III. Montana Statutes and Rules Pertinent to Property Insurance Only

    A. Property Insurance
    B. Inland/Ocean Marine Insurance
    C. Daycare/Homeowners

     

    Casualty General Knowledge Content Outline

    50 scorable questions, plus 5 pretest questions.

    I. Types of Policies, Bonds, and Related Terms

    A. Commercial general liability
    B. Automobile: personal auto and business auto
    C. Workers Compensation Insurance, Employers Liability Insurance and Related Issues
    D. Crime
    E. Bonds
    F. Professional liability
    G. Umbrella/Excess Liability
    H. Businessowners Policy (BOP)

     

    II. Insurance Terms and Related Concepts

    A. Risk
    B. Hazards
    C. Indemnity
    D. Insurable interest
    E. Loss valuation
    F. Negligence
    G. Liability
    H. Occurrence
    I. Binders
    J. Warranties
    K. Representations
    L. Concealment
    M. Deposit Premium/Audit
    N. Certificate of Insurance
    O. Law of Large Numbers
    P. Pure vs. Speculative Risk
    Q. Endorsements
    R. Damages
    S. Compliance with provisions of Fair Credit Reporting Act

     

    III. Policy Provisions

    A. Declarations
    B. Insuring agreement
    C. Conditions
    D. Exclusions and Limitations
    E. Definition of the insured
    F. Duties of the insured after a loss
    G. Cancellation and nonrenewal provisions
    H. Supplementary payments
    I. Proof of loss
    J. Notice of claim
    K. Arbitration
    L. Subrogation
    M. Loss settlement provisions including consent to settle a loss
    N. Terrorism Risk Insurance Act (TRIA)

     

    Montana Specific Casualty Content Outline

    37 scorable questions, plus 5 pretest questions. 

    I. Montana Statutes and Rules Common to Life, Disability (A&H), Property and Casualty Insurance

    A. Insurance Commissioner/Department
    B. General Definitions
    C. Licensing Requirements
    D. Unfair Trade Practices
    E. Licensee Responsibilities
    F. Rate and Form Regulations
    G. Life and Health 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

    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

    A. Casualty Insurance defined
    B. Automobile Insurance/Financial Responsibility
    C. Assigned Risk/Auto Insurance Plan
    D. Worker’s Compensation
    E. Professional Liability Insurance

    We recommend reading our Property and Casualty Insurance exam article for a more in-depth overview.

     

    How to Pass the Montana Insurance Exam

    Passing your Montana insurance exam ultimately comes down to your mindset and degree of preparation.

    We have composed a few helpful exam tips and tricks that should help you perform as well as you can during your exam day.

    Get a Pre-License Course

    Even though this is not a requirement in the state of Montana, getting a pre-license course can be incredibly beneficial. These courses can help you get accustomed to the extensive amount of content that you will have to memorize.

    We recommend Kaplan’s course because it offers a variety of helpful features, including:

    • Online exam simulations
    • Live online training
    • Printable study guides
    • End of chapter reviews

    For more information, we recommend reading our Kaplan Insurance Course Review.

     

    Make Enough Time to Study

    Not leaving enough time to prepare is one of the easiest ways to ensure that you do not pass your exam on your first attempt.

    Remember, there are zero questions on your exam that are based on common sense or critical thinking. All questions are purely factual, and so will relate to how well you understand and remember the content that you have learned.

    We recommend allocating around one to two weeks to prepare for your exam, as this should allow you to go through all of the material at least twice.

     

    Control Test Anxiety

    Even though you cannot control whether you get exam anxiety or not, you can take a few steps when preparing to limit its effect on your performance:

    • Establish a consistent pretest routine — Acclimate yourself to exam conditions by following a specific routine on each practice exam at home. This should help you feel less anxious during your exam day.
    • Get plenty of sleep — Lack of sleep can exacerbate your anxiety and increase your self-doubt. Make sure you are consistently getting a good night’s sleep in the week leading up to your exam.
    • Study effectively — This sounds obvious, but make sure you are actually tailoring your studying to the exam that you are taking. Remember, there are no critical thinking or common sense questions involved.
    • Arrive early — If you are planning to sit your exam in person, we recommend you arrive at least 30 minutes before it’s due to start in order to get used to your surroundings and have time to check in with your center’s administrator.

    For a more in-depth overview of how you can prepare for your Montana insurance exam, we recommend reading our How to Pass the Insurance Exam article.

     

    Getting Your Montana Insurance License

    Your next steps will depend on whether you actually passed your exam, as well as on if you plan to get licensed for any additional lines.

    You can apply for your license up to 12 months after you complete your exam, so if you would like to attempt passing additional insurance line exams before filing your licensing application with the state, you are totally free to do that.

    After you have passed your insurance licensing exam, you will need to:

    • Complete a fingerprint and background check
    • File your licensing application
    • Wait for your application to be reviewed

    Have a look at our How to Become an Insurance Agent in Montana review for more information on all the steps that you will need to take after passing your insurance exam.




    Montana Insurance Exams FAQ

    How often do I have to renew my Montana insurance license?

    Montana requires insurance agents and brokers to renew their licenses biannually.

    For more information, see our guide on How to Renew Your Insurance License in Montana.

     

    How long is the Montana insurance exam?

    The most common Montana insurance exams are two hours long. This includes the Life exam, Disability exam, Property exam, and Casualty exam. The Limited Lines and Title exams are 45 minutes each. The shortest is the 30-minute Surety exam.

     

    How many times can you take the Montana insurance exam?

    You may take the Montana insurance exam as many times as needed in order to pass. The exam fee must be paid each time, and you must take both the general and the state-specific sections each time.

     

    How many questions are on the Montana insurance exam?

    The longer insurance exams have around the same number of questions.

    This includes the Life exam (86 questions), Accident & Health exam (92 questions), Property exam (82 questions), and the Casualty exam (87 questions) exams.

    Montana Commissioner of Securities and Insurance Contact Information

    Mailing Address:

    Office of the Montana State Auditor
    Insurance Department
    840 Helena Avenue
    Helena, Montana 59601

    Phone: (406) 444-2040

    Fax: (406) 444-3497

    Email: ProducerLicensing@mt.gov

    Website: http://www.csimt.gov/insurance

    License Search: Montana Insurance License Search and Lookup




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