Montana Health Insurance Practice Exam Free - 2026

• A. $1,000
• B. $25,000
• C. $5,000
• D. $10,000

Correct answer: C. $5,000

Explanation: The commissioner may impose a fine after a hearing of not more than $25,000 for a violation of the code or rules, but for an insurance producer or adjuster the fine may not exceed $5,000 per violation. A is the per-day civil penalty for violating a cease and desist order under 33-18-1005; B is the general cap that applies to persons other than producers and adjusters; D is the aggregate cap on cease-and-desist penalties, not the producer fine. See Mont. Code Ann. § 33-1-317.

• A. Immediately, upon passing the examination again
• B. Never; any revocation is permanently disqualifying
• C. After 6 months, if restitution has been made
• D. Not until 1 year after revocation, and the commissioner may refuse a new license for up to 5 years; a second revocation makes the person permanently ineligible

Correct answer: D. Not until 1 year after revocation, and the commissioner may refuse a new license for up to 5 years; a second revocation makes the person permanently ineligible

Explanation: A revoked license may not be reissued until 1 year has passed and the applicant meets current qualifications, the commissioner may refuse to issue a license for up to 5 years after revocation, and anyone whose license has been revoked twice is permanently ineligible. A and C use waiting periods shorter than the statute; B is wrong because permanent ineligibility follows only a second revocation. See Mont. Code Ann. § 33-17-1002.

• A. Report the suspected fraud to the insurer within 60 days of discovery; the insurer then forwards it to the commissioner within 30 days if fraud is reasonably likely
• B. Report it to the county attorney within 10 days
• C. Report it to the commissioner within 90 days
• D. Nothing; reporting is optional for producers

Correct answer: A. Report the suspected fraud to the insurer within 60 days of discovery; the insurer then forwards it to the commissioner within 30 days if fraud is reasonably likely

Explanation: A producer of an insurer who has reason to believe insurance fraud has been or is being committed must report it to the insurer within 60 days of discovery; the insurer reviews the report and, if there is a reasonable likelihood of fraud, forwards it to the commissioner within 30 days of receipt (insurers and independent producers report to the commissioner directly within 60 days). B and C use deadlines and recipients the statute does not name; D is wrong because the duty is mandatory. See Mont. Code Ann. § 33-1-1205.

• A. 1 year
• B. At least 3 years
• C. At least 5 years
• D. At least 7 years

Correct answer: B. At least 3 years

Explanation: A producer must keep at a business address complete records of transactions under the license for at least 3 years following completion of the transaction. A is too short; C is the retention period for replacement notices under Mont. Admin. R. 6.6.306, not for general producer records; D is the look-back on homeowner loss experience under 33-18-210, not a record-keeping period. See Mont. Code Ann. § 33-17-1101.

• A. 36 months for most qualifying events
• B. 12 months for most qualifying events
• C. 29 months for most qualifying events
• D. 18 months for most qualifying events

Correct answer: D. 18 months for most qualifying events

Explanation: COBRA coverage typically lasts 18 months for most qualifying events (job loss, reduced hours). It can extend to 36 months for certain events like divorce or a child losing dependent status.

• A. The former employee pays the full premium plus up to a 2% administrative fee
• B. The plan's insurer absorbs the cost until the employee finds new coverage
• C. The former employer pays the full premium for the first 18 months
• D. The employee pays the same share he or she paid while actively employed

Correct answer: A. The former employee pays the full premium plus up to a 2% administrative fee

Explanation: Under COBRA, the person continuing coverage - typically the former employee - pays the full premium cost (including the portion the employer previously paid) plus up to a 2% administrative fee, which is often far more than the payroll share paid while employed. COBRA rights can also follow a reduction in hours or a dependent qualifying event such as divorce, so the continuing enrollee is not always someone who left the company.

• A. All companies regardless of size
• B. Employers with 20 or more employees
• C. Only government employers
• D. Only Fortune 500 companies

Correct answer: B. Employers with 20 or more employees

Explanation: COBRA applies to employers with 20 or more employees who offer group health plans. Smaller employers may be subject to state continuation laws (often called 'mini-COBRA').

• A. Federal law that lets workers continue group coverage after leaving a job
• B. Federal law that created Medicare and Medicaid for seniors and the poor
• C. Federal law that reformed health insurance and expanded coverage access
• D. Federal law that protects the privacy and portability of health information

Correct answer: C. Federal law that reformed health insurance and expanded coverage access

Explanation: The Affordable Care Act (also known as 'Obamacare') is a comprehensive federal law enacted in 2010 that reformed health insurance markets, expanded Medicaid, created health insurance marketplaces, and established consumer protections.

• A. Services that Medicare Advantage plans must add beyond Parts A and B
• B. Benefits an insurer may offer as optional riders for an extra premium
• C. Emergency and hospital services that every short-term plan must include
• D. Ten categories of services ACA marketplace plans must cover

Correct answer: D. Ten categories of services ACA marketplace plans must cover

Explanation: Essential health benefits are 10 categories of services that ACA marketplace plans must cover, including hospitalization, prescription drugs, maternity care, mental health services, preventive care, and pediatric services.

• A. A platform where individuals can shop for and purchase ACA-compliant health plans
• B. A private exchange where employers buy stop-loss coverage for self-funded plans
• C. A federal agency that sets the premium rates insurers may charge for health plans
• D. A network of hospitals and clinics that agree to accept marketplace plan members

Correct answer: A. A platform where individuals can shop for and purchase ACA-compliant health plans

Explanation: A health insurance marketplace (also called an exchange) is a platform, either state-run or federally-facilitated (HealthCare.gov), where individuals and families can shop for, compare, and purchase ACA-compliant health insurance plans.

• A. Deductions employers claim for the premiums they pay on behalf of workers
• B. Subsidies to help eligible individuals afford marketplace health insurance
• C. Reductions in deductibles and copays for eligible members who choose a silver plan
• D. Refunds insurers must pay when they spend too little of premiums on care

Correct answer: B. Subsidies to help eligible individuals afford marketplace health insurance

Explanation: Premium tax credits are subsidies available to individuals who purchase health insurance through the marketplace and have income within certain limits. They reduce monthly premium costs.

• A. Insurers must renew coverage each year unless the insured stops paying premiums
• B. Insurers must charge every applicant the same premium regardless of age or tobacco use
• C. Insurers must accept all applicants regardless of health status or pre-existing conditions
• D. Insurers must cover a pre-existing condition after a waiting period of no more than a year

Correct answer: C. Insurers must accept all applicants regardless of health status or pre-existing conditions

Explanation: Guaranteed issue means the insurer must accept all applicants regardless of health status or pre-existing conditions during open enrollment or a qualifying special enrollment period. It governs acceptance, not price. Premiums may still vary by age, tobacco use, geographic area, and family size, but not by health status or gender.