Montana State Life Insurance Practice Exam

A GROUP insurer in Montana may pay up to how much to any person entitled to reimbursement for funeral or other expenses?

1. $300

2. $500

3. $1,000

4. $2,000

The correct answer is: $500

In Montana, a group insurer is permitted to pay up to $500 to any individual who is entitled to reimbursement for funeral or other associated expenses. This limit is set to provide financial assistance for essential expenses following the death of an insured individual. By establishing this cap, the state seeks to ensure that there is a reasonable amount of support available for the bereaved families, reflecting the importance of affordable options during difficult times. It's critical for individuals involved in the insurance industry, especially when handling group policies, to familiarize themselves with these monetary limits.