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Montana Property and Casualty Laws Exam 2025 Questions and Answers What are premium finance companies? - ....ANSWER ...-Loans money to the insured to pay a premium, and must be licensed as a premium finance company. (Does not apply to savings & loans, finance companies, banks, credit unions, or resident insurance producers) How long must premium finance companies keep records for? - ....ANSWER ...-3 years. What are the stipulations for premium finance agreements? - ....ANSWER ...--Must be written, signed, and delivered to the insured -Discloses all details of the transaction -Discloses the producer's name, balance, total amount of all premiums & payments, down payment, finance charges, and number or installments Can interest rates exceed %21? - ....ANSWER ...-No! Can delinquency charges exceed $5 per late payment? - ....ANSWER ...-No! When must the premium finance company send a surplus to the insured? ....ANSWER ...-When they are getting a refund, unless the surplus is less than $1. How long before the expiration of a policy must the insurer notify both the producer and insured before nonrenewing? - ....ANSWER ...-45 days. …FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 1