10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The MT-LH exam has 96 questions and runs 2 hours.
These 10 free MT-LH questions are organized by exam domain, so you can see how each part of the Montana Life Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
A married couple expects no liquidity need when the first spouse dies, but their estate will need cash to settle taxes and equalize inheritances after the second death. Which arrangement most directly matches that timing?
Correct answer: C - Survivorship life insurance
An indexed universal life policy credits an annual point-to-point index change multiplied by a 70% participation rate, subject to a 0% floor and a 9% cap. The index rises 10% for the year. Before policy charges, what rate is credited, and what should the owner understand?
Correct answer: A - 7%; policy charges can still reduce the account value
An insured dies during the grace period of a $250,000 whole life policy. The policy has $10,000 of paid-up additions, a $20,000 policy loan, $600 of accrued loan interest, and a $400 overdue premium. A bank also holds a collateral assignment securing a separate $30,000 debt. Assuming no other adjustments, how much does the named beneficiary receive?
Correct answer: B - $209,000
A tax-qualified long-term-care rider requires either severe cognitive impairment or inability to perform at least two of the six activities of daily living for at least 90 days. A licensed health practitioner certifies that the insured has been unable to bathe or transfer without substantial assistance for 120 days but remains cognitively intact. How does the insured meet the rider's chronic-illness trigger?
Correct answer: B - The insured qualifies because two ADLs are impaired beyond 90 days
On May 1, an applicant submits a life application and the first premium. An insurability-type conditional receipt states that coverage begins on the later of the application date or a required medical examination date, provided the applicant was insurable as applied on that date. The examination is completed May 6. The applicant dies May 9, and underwriting later confirms the applicant met the insurer's standards on May 6. When did coverage begin?
Correct answer: A - May 6, when the required examination was completed
During an annuity application, sanctions screening returns a possible OFAC match based on the applicant's name and date of birth. The applicant insists it is a false positive and asks the producer to complete the sale and sort it out later. What is the producer's best next step?
Correct answer: D - Pause the transaction and follow the insurer's sanctions-verification procedure
A family's analysis shows $180,000 of immediate cash needs, $700,000 as the present value of income needs, and $120,000 for education. Available resources are $250,000 of liquid assets and $300,000 of existing life insurance. The family will continue living in a home with $400,000 of equity. How much additional life insurance is indicated?
Correct answer: C - $450,000
To induce a policyowner to surrender an existing whole life policy, a Montana producer knowingly states that its guaranteed cash value will disappear next year, even though the contract says otherwise. This conduct is most specifically classified as:
Correct answer: D - Twisting
Which completed continuing-education record satisfies a Montana resident Life producer's biennial requirement, assuming every credit is approved and the listed categories do not overlap?
Correct answer: C - 24 total hours, including 3 ethics hours and 1 Montana legislative-changes hour
A Montana employee's $100,000 group life coverage ends when employment terminates. The employee has a 31-day conversion right, receives proper notice, has no replacement group coverage, and dies on day 18 without submitting an application or first premium. What is payable?
Correct answer: A - The full $100,000 convertible amount is payable under the group policy
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