Term, whole life, universal and variable life, and the general features of group and credit life are covered in the national Types of Life Insurance Policies guide. Montana's Life exam adds state rules on group life (Mont. Code Ann. 33-20-1101 and following), credit life and credit disability (Title 33, chapter 21) and viatical settlements (33-20-1301 and following).

Group life

• Employee groups. An employee group life policy must cover at least 2 employees at issue (33-20-1101).
• Noncontributory plans. If the employer pays the whole premium, the policy must insure all eligible employees, except anyone whose required evidence of insurability isn't satisfactory.
• Grace period. The policyholder gets 31 days for every premium after the first (33-20-1202).
• Conversion (33-20-1209):
  • A departing employee may convert to an individual policy without evidence of insurability.
  • The application and first premium are due within 31 days after termination.
  • The converted amount can't exceed the coverage that ended. It's reduced by any group life the person becomes eligible for within that 31 days.
• Death during the conversion period. If the person dies within the 31 days without converting, the insurer pays the amount the person could have converted (33-20-1211).

Credit life and credit disability

• Credit insurance protects a creditor if the debtor dies or becomes disabled. Benefits are paid to the creditor to reduce or extinguish the unpaid debt (33-21-204).
• Credit life may not start out larger than the total amount repayable on the debt (33-21-202).
• Credit disability may not pay a periodic benefit larger than the scheduled installment (33-21-202).
• If the policy or certificate isn't delivered when the debt is incurred, it must be delivered within 30 days (33-21-204).
• If the debt is paid off early, the unearned premium must be refunded promptly. The commissioner sets a minimum below which no refund is required (33-21-206).
• Montana's credit insurance chapter doesn't apply to loans of more than 15 years (33-21-102).
• Montana's lender anti-coercion statute, which requires telling borrowers they may buy loan-related insurance from a source of their choice, doesn't apply to credit life or credit A&H (33-18-501).

Viatical settlements

• A viator is the policyowner who sells or seeks to sell a life policy. The viator receives less than the expected death benefit (33-20-1302).
• A viatical settlement provider must be licensed by the commissioner (33-20-1303).
• A life producer licensed for at least 1 year may act as a viatical settlement broker. The producer must notify the commissioner within 30 days of starting and pay the fee (33-20-1303).
• Before entering a contract, the provider must get a written statement from an attending physician that the viator is of sound mind (33-20-1312).

Fraternal benefit societies

A fraternal benefit society has no capital stock and operates for its members, not for profit. It works through a lodge system with ritualistic forms of work and a representative form of government (33-7-105).

Common exam traps

• Group life: at least 2 employees, a 31-day grace period and 31 days to convert. Death during the conversion window pays the convertible amount.
• Credit life benefits go to the creditor, and the amount can't exceed the debt.
• A life producer needs 1 year of licensure and a 30-day notice to act as a viatical broker.