Montana State Life Insurance Practice Exam

When does a temporary license become invalid?

1. After the first claim is processed

2. After 30 days

3. After 90 days

4. After the individual fails an exam

The correct answer is: After 90 days

A temporary license is typically issued to individuals who are in the process of completing their licensing exams and may need to conduct business in the interim. The key condition for the validity of such a license is time-bound; it is designed to allow the applicant to operate temporarily while awaiting the results of their licensing exam or while completing other requisite activities. In many jurisdictions, including Montana, a temporary license is often valid for 90 days. This timeframe provides a sufficient window for individuals to take their licensing exams and receive their official licenses without missing business opportunities. After this 90-day period, the temporary license becomes invalid, requiring the individual either to have obtained their official license or to cease conducting any insurance business. The other choices relate to conditions that do not typically affect the validity of a temporary license in the same straightforward manner. The processing of claims or the results of exams are separate considerations regarding licensing, whereas the designated time limit is what directly determines when a temporary license expires.