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Montana Health Practice Exam

20 exam-style questions drawn from the same bank as our full Montana Health course (Montana Disability Producer Exam Prep). Answer all 20, then grade yourself — most state exams require 70% to pass. Explanations for every question are part of the full course.

1. How does a binding receipt differ from a conditional receipt?
It applies only to group coverageCoverage begins at once regardless of insurabilityIt requires a medical examination firstCoverage begins only when the policy is issued
2. Under MCA 33-22-214 no action may be brought on the policy after:
5 years from proof of loss1 year from proof of loss2 years from proof of loss3 years from proof of loss
3. How does a comprehensive major medical plan differ from a supplementary one?
It replaces the basic plan entirelyIt pays only for surgical expenseIt sits on top of a basic planIt carries no out-of-pocket maximum
4. The Annual Election Period (AEP) differs from the Medicare Advantage Open Enrollment Period (MA OEP) in that:
The AEP is reserved for first-time Medicare-eligible beneficiaries making initial elections under the IEP-aligned annual enrollment framework; the MA OEP is reserved for renewing enrollees making annual plan-switch elections in their second year of coverageBoth windows run from October 15 through December 7 each year and differ only in whether Part D prescription drug elections are permitted, with the OEP restricted to Medicare Advantage medical-only switches in the same enrollment windowThe AEP runs October 15 – December 7 and allows any Medicare beneficiary to make Medicare Advantage and Part D elections effective January 1; the MA OEP runs January 1 – March 31 and is available only to existing Medicare Advantage enrolleesThe AEP runs January 1 – March 31 each calendar year for Medicare Advantage and Part D elections that take effect retroactively to January 1; the MA OEP runs October 15 – December 7 for prospective plan changes
5. Under standard coordination-of-benefits rules, what is the ceiling on what a secondary major-medical plan will pay on a claim the primary plan has already partly paid?
The full allowed amount, because secondary coverage restores the member fullyWhatever the provider bills above the primary plan's contracted allowed amountThe amount it would have paid as primary, less what the primary plan paidHalf the balance remaining after the primary plan has finished adjudicating
6. Under IRC §162, Business Overhead Expense (BOE) insurance premium paid by the business is treated for federal income tax purposes as:
Deductible as an ordinary and necessary business expense; benefits received are taxable to the business as ordinary incomeDeductible to the owner personally on Schedule A as an itemized medical expense subject to the 7.5%-of-AGI floor; benefits paid are received tax-freeNon-deductible to the business as a capital expense; benefits paid out under the policy are taxable to the disabled owner personally on Schedule CNon-deductible because the business is named as the beneficiary; benefits received under the reimbursement arrangement are tax-free under IRC §104(a)(3)
7. MCA 33-22-906 limits an issuer's producer compensation on a replacing Medicare supplement policy to no more than:
Two hundred per cent of renewalThe first year commission rateThe renewal compensation rateThe rate the issuer files annually
8. An applicant applies 1 June with premium, is examined 15 June, and is hospitalized 10 June. Under a conditional receipt:
No coverage existed on 10 JuneCoverage applied from 10 JuneCoverage applied from 1 JuneCoverage depends on the diagnosis
9. Under MCA 52-3-803 a person qualifies as a vulnerable adult by age at:
65 or older55 or older70 or older60 or older
10. Health savings account contributions for a given tax year may be made through which deadline?
The extended federal return due date, typically October 15 of the following yearDecember 31 of the tax year, the same cutoff that applies to a 401(k) deferralThe last day of the month in which the HDHP coverage first became effectiveThe federal tax-return due date, typically April 15, without regard to extensions
11. Under MCA 33-31-303 an HMO must acknowledge a complaint within:
10 days of receiving it15 days of receiving it5 days of receiving it30 days of receiving it
12. MCA 33-22-205 permits an insurer to contest after 2 years only for:
Preexisting conditionsFraudulent misstatementsChange of occupationAny material misstatement
13. Under MCA 33-22-1128 the one-time long-term care training course for a producer must be at least:
12 hours8 hours4 hours6 hours
14. An individual pays disability income premium personally with after-tax dollars. The benefits are:
Taxable at half the benefit amountFully taxable as ordinary incomeReceived income tax freeTaxable only in the first two years
15. Two Montana rules run on 30 days and one on 60 days. Which of these is the 60-day rule?
Notifying a termination of appointmentReporting a change of addressRequesting a stay after appealReporting suspected insurance fraud
16. A Montana applicant declines the nonforfeiture benefit offered under MCA 33-22-1116. The insurer must then provide:
An automatic premium loanA contingent benefit upon lapseA full return of premium optionA reduced paid-up certificate
17. A producer collects $50 less than the filed premium to win a case. Under MCA 33-18-212 this is:
Permitted, the insured benefitsProhibited, like collecting excessProhibited only above $100Permitted with insurer consent
18. MCA 33-17-1101 requires a Montana producer to keep transaction records for at least:
1 year after completion2 years after completion5 years after completion3 years after completion
19. A producer replaces a client's disability policy after an honest and complete comparison that favours the new contract. Under Montana law this is:
Lawful replacementTwisting under 33-18-204Unfair discrimination under 33-18-206Rebating under 33-18-208
20. Under the legal actions provision, how soon after furnishing proof of loss may an insured sue?
After 30 daysAfter 90 daysImmediatelyAfter 60 days

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