reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 3. Management › 33-3-302. Bylaws of stock insurer -- modification

33-3-302. Bylaws of stock insurer -- modification.
(1) A bylaw adopted at any meeting of stockholders of a domestic insurer may not be modified or revoked except by the stockholders at a subsequent meeting unless the bylaws as adopted or amended by the stockholders grant authority to the board of directors to revoke or modify bylaw provisions. The board of directors may not revoke or modify any bylaw relating to the qualifications, election, terms, or compensation of directors or to the calling or notice of meetings of stockholders. A revocation or modification of bylaws made by the directors under this provision must be presented at the next following meeting of stockholders for the information of the stockholders.
(2) The insurer shall promptly file with the commissioner a copy, certified by the insurer's secretary, of its bylaws and amended bylaws. The commissioner may disapprove any bylaw provision considered by the commissioner to be unlawful. The insurer may not, after receiving written notice of the commissioner's disapproval, enact any disapproved bylaw provision.
History: En. Sec. 433, Ch. 286, L. 1959; R.C.M. 1947, 40-4716; amd. Sec. 30, Ch. 227, L. 2001.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 3. Management › 33-3-304. Proxies -- corrupt practices

33-3-304. Proxies -- corrupt practices.
(1) Every proxy of a stockholder of an insurer, unless coupled with an interest, shall be revocable at will and this provision cannot be waived. The validity of every unrevoked proxy shall cease 11 months after the date of its execution unless some other definite period of validity is expressly provided therein, but in no event shall a proxy, unless coupled with an interest, be voted on after 3 years from the date of its execution.
(2) The revocation of a proxy shall not be effective until notice thereof has been given to the secretary of the insurer.
(3) No person shall buy or sell or barter a vote or proxy, relative to any meeting of stockholders or members of an insurer, or engage in any corrupt or dishonest practice in or relative to the conduct of any such meeting.
History: En. Secs. 435, 436, Ch. 286, L. 1959; R.C.M. 1947, 40-4718, 40-4719; amd. Sec. 23, Ch. 396, L. 2017.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 3. Management › 33-3-305. Directors -- number and election

33-3-305. Directors -- number and election.
(1) The affairs of every domestic insurer must be managed by the number of directors fixed in the insurer's bylaws, which may not be less than 5 or more than 21 directors.
(2) Directors must be elected by the members or stockholders of a domestic insurer, except as provided in 33-3-306, at the time and place and for the terms, not exceeding 3 years, as may be provided in the insurer's bylaws. A majority of directors must be elected from the members or stockholders of the domestic insurer.
(3) The term of a director shall extend until a successor has been elected and has qualified.
History: En. Sec. 437, Ch. 286, L. 1959; R.C.M. 1947, 40-4720; amd. Sec. 11, Ch. 451, L. 1993.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 3. Management › 33-3-306. Participation of policyholders in election of directors of stock insurer

33-3-306. Participation of policyholders in election of directors of stock insurer.
The bylaws of a domestic stock life insurer may provide a plan for its policyholders to participate with stockholders in the election of its directors.
History: En. Sec. 438, Ch. 286, L. 1959; R.C.M. 1947, 40-4721.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 3. Management › 33-3-307. Bonding of officers and employees

33-3-307. Bonding of officers and employees.
(1) When acting in a fiduciary capacity, officers and employees of each mutual insurer or stock insurer shall maintain a fidelity bond issued by an authorized corporate surety in favor of the insurer. The commissioner shall consider the insurer's exposure, total assets, and total income in determining the bond amount. In lieu of individual bonds, officers and employees may be covered under a blanket bond for the same respective amounts. The insurer shall file the blanket bond with the commissioner.
(2) The insurer shall pay the premium for the bond.
(3) A bond is not subject to cancellation except upon written notice to both the insurer and the commissioner, delivered not less than 30 days in advance of the effective date of the cancellation.
(4) This section may not be considered to limit the amount of bonded protection that the insurer may carry as to any officer or employee.
(5) The commissioner may adopt rules to determine the bond amount for officers and employees who are subject to the provisions of this section.
History: En. Sec. 439, Ch. 286, L. 1959; R.C.M. 1947, 40-4722; amd. Sec. 13, Ch. 531, L. 1997; amd. Sec. 18, Ch. 472, L. 1999.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 3. Management › 33-3-308. Prohibited pecuniary interest of officials

33-3-308. Prohibited pecuniary interest of officials.
(1) Any officer or director or any member of any committee or an employee of a domestic insurer who is charged with the duty of investing or handling the insurer's funds may not:
(a) deposit or invest the funds except in the insurer's corporate name;
(b) borrow the funds of the insurer;
(c) be pecuniarily interested in any loan, pledge of deposit, security, investment, sale, purchase, exchange, reinsurance, or other similar transaction or property of the insurer except as a stockholder or member;
(d) take or receive to the individual's own use any fee, brokerage, commission, gift, or other consideration for or on account of any transaction made by or on behalf of the insurer.
(2) An insurer may not guarantee any financial obligation of any of its officers or directors.
(3) This section may not prohibit a director or officer or member of a committee or employee from becoming a policyholder of the insurer and enjoying the usual rights provided for its policyholders.
(4) The commissioner may, by regulations from time to time, define and permit additional exceptions to the prohibition contained in subsection (1) solely to enable payment of reasonable compensation to a director who is not otherwise an officer or employee of the insurer or to a corporation or firm in which a director is interested for necessary services performed or sales or purchases made to or for the insurer in the ordinary course of the insurer's business and in the usual private professional or business capacity of the director or the corporation or firm.
History: En. Sec. 440, Ch. 286, L. 1959; R.C.M. 1947, 40-4723; amd. Sec. 1136, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 3. Management › 33-3-309. Management and exclusive agency contracts

33-3-309. Management and exclusive agency contracts.
(1) A domestic insurer may not make any contract under which any person is granted or is to enjoy in fact the management of the insurer to the substantial exclusion of its board of directors or to have the controlling or preemptive right to produce substantially all insurance business for the insurer unless the contract is filed with and approved by the commissioner. The contract must be considered approved unless disapproved by the commissioner within 20 days after date of filing, subject to a reasonable extension of time that the commissioner may require by notice given within 20 days. Any disapproval must be delivered to the insurer in writing, stating the grounds for disapproval.
(2) The commissioner shall disapprove any contract if the commissioner finds that it:
(a) subjects the insurer to excessive charges;
(b) is to extend for an unreasonable length of time;
(c) does not contain fair and adequate standards of performance; or
(d) contains other inequitable provision or provisions that impair the proper interests of stockholders or members of the insurer.
History: En. Sec. 441, Ch. 286, L. 1959; R.C.M. 1947, 40-4724; amd. Sec. 1137, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 3. Management › 33-3-310. Agreement not to sell property prohibited

33-3-310. Agreement not to sell property prohibited.
No insurer shall enter into any agreement to withhold from sale any of its property. Disposition of an insurer's property shall be at all times within the control of its board of directors.
History: En. Sec. 444, Ch. 286, L. 1959; R.C.M. 1947, 40-4727.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-402. Vouchers for expenditures

33-3-402. Vouchers for expenditures.
(1) No insurer shall make any disbursement of $100 or more unless evidenced by a voucher correctly describing the consideration for the payment and supported by a check or receipt endorsed or signed by or on behalf of the person receiving the money.
(2) If the disbursement is for services and reimbursement, the voucher shall describe the services and expenditures.
(3) If the disbursement is in connection with any matter pending before any legislature or public body or before any public official, the voucher shall also correctly describe the nature of the matter and of the insurer's interest therein.
(4) If a voucher cannot be obtained, the expenditure referred to in subsection (1) above shall be evidenced by an affidavit in which is set forth the character and object of the expenditure and the reasons for not obtaining a voucher therefor.
History: En. Sec. 443, Ch. 286, L. 1959; R.C.M. 1947, 40-4726.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-411. Contingent liability of mutual members

33-3-411. Contingent liability of mutual members.
(1) Each member of a domestic mutual insurer shall, except as otherwise provided in this part with respect to nonassessable policies, have a contingent liability, pro rata and not one for another, for the discharge of its obligations. The contingent liability must be expressed in the policy and must be in a maximum amount specified in the insurer's articles of incorporation.
(2) Termination of the policy of any member may not relieve the member of contingent liability for the member's proportion, if any, of the obligations of the insurer that accrued while the policy was in force.
(3) Unrealized contingent liability of members does not constitute an asset of the insurer in any determination of its financial condition.
History: En. Sec. 446, Ch. 286, L. 1959; R.C.M. 1947, 40-4729; amd. Sec. 1138, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-412. Levy of contingent liability

33-3-412. Levy of contingent liability.
(1) If at any time the assets of a domestic mutual insurer are less than its liabilities and the minimum amount of surplus required to be maintained by it by this code for authority to transact the kinds of insurance being transacted and the deficiency is not cured from other sources, its directors shall levy an assessment only upon its members who held policies providing for contingent liability at any time within the 12 months preceding the date notice of the assessment was mailed to them, and the members are liable to the insurer for the amount assessed.
(2) The assessment must be for an amount that is required to cure the deficiency and to provide a reasonable amount of working funds in excess of the minimum amount of surplus, but the working funds provided may not exceed 5% of the insurer's liabilities as of the date that the amount of the deficiency was determined.
(3) In levying an assessment upon a policy providing for contingent liability, the assessment must be computed on the basis of the premiums earned on the policy during the period to which the assessment relates.
(4) A member may not have an offset against any assessment for which the member is liable on account of any claim for unearned premium or loss payable.
(5) As to life insurance, any part of an assessment upon a member that remains unpaid following notice of assessment, demand for payment, and lapse of a reasonable waiting period as specified in the notice may, if approved by the commissioner as being in the best interests of the insurer and its members, be secured by placing a lien upon the cash surrender values and accumulated dividends held by the insurer to the credit of the member.
History: En. Sec. 447, Ch. 286, L. 1959; R.C.M. 1947, 40-4730; amd. Sec. 1139, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-413. Enforcement of contingent liability

33-3-413. Enforcement of contingent liability.
(1) Any assessment made by an insurer under 33-3-412 or 33-3-433 shall be deemed to be prima facie correct. The amount of such assessment to be paid by each member as determined by the insurer shall be deemed to be likewise prima facie correct.
(2) The insurer shall notify each member of the amount of the assessment to be paid by written notice mailed to the address of the member last of record with the insurer. Failure of the member to receive the notice so mailed, within the time specified therein for the payment of the assessment or at all, shall be no defense in any action to collect the assessment.
(3) If a member fails to pay the assessment within the period specified in the notice, which period shall not be less than 20 days after mailing, the insurer may institute suit to collect the same.
History: En. Sec. 448, Ch. 286, L. 1959; R.C.M. 1947, 40-4731.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-414. Nonassessable policies of mutual insurers

33-3-414. Nonassessable policies of mutual insurers.
(1) While possessing surplus funds in amount not less than the paid-in capital stock required of a domestic stock insurer transacting like kinds of insurance, a domestic mutual insurer may, upon receipt of the commissioner's order so authorizing, extinguish the contingent liability of its members as to all its policies in force and may omit provisions imposing contingent liability in all its policies currently issued.
(2) A foreign or alien mutual insurer may issue nonassessable policies to its members in this state pursuant to its articles of incorporation and the laws of its domicile.
(3) No policy of a domestic mutual insurer which, pursuant to the commissioner's order, is without contingent liability and thereby nonassessable by its terms shall be subject to assessment for any debt or liability of the insurer.
History: En. Sec. 449, Ch. 286, L. 1959; R.C.M. 1947, 40-4732.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-415. Insufficient reserves -- nonassessable policies prohibited -- revocation of authority

33-3-415. Insufficient reserves -- nonassessable policies prohibited -- revocation of authority.
The commissioner shall revoke the authority of a domestic mutual insurer to issue policies without contingent liability if at any time the insurer's assets are less than the sum of its liabilities and the surplus required for such authority or if the insurer, by resolution of its board of directors approved by a majority of its members, requests that the authority be revoked. During the absence of such authority the insurer shall not issue any policy without providing therein for the contingent liability of the policyholder or renew any policy which is renewable at the option of the insurer without endorsing the same to provide for such contingent liability.
History: En. Sec. 450, Ch. 286, L. 1959; R.C.M. 1947, 40-4733.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-421. Participating policies

33-3-421. Participating policies.
(1) If provided in its articles of incorporation, a domestic stock or domestic mutual insurer may issue any or all of its policies with or without participation in profits, savings, or unabsorbed portions of premiums, may classify policies issued on a participating and nonparticipating basis, and may determine the right to participate and the extent of participation of any class or classes of policies. Any such classification or determination shall be reasonable and shall not unfairly discriminate as between policyholders within the same such classifications. A life insurer may issue both participating and nonparticipating policies only if the right or absence of right to participate is reasonably related to the premium charged. Any such domestic insurer which prior to January 1, 1961, has been issuing all or part of its policies on a participating basis without specific authorization in its articles of incorporation may continue to issue such policies on a basis not inconsistent with this section.
(2) After the third policy year no dividend otherwise earned shall be made contingent upon the payment of renewal premium on any policy.
History: En. Sec. 451, Ch. 286, L. 1959; R.C.M. 1947, 40-4734.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-422. Dividends to stockholders

33-3-422. Dividends to stockholders.
(1) A domestic stock insurer shall not pay any cash dividend to stockholders except out of that part of its available surplus funds which is derived from realized net profits on its business.
(2) A stock dividend may be paid out of any available surplus funds in excess of the aggregate amount of surplus loaned to the insurer under 33-3-431.
(3) A dividend otherwise proper may be payable out of the insurer's earned surplus even though its total surplus is then less than the aggregate of its past contributed surplus resulting from issuance of its capital stock at a price in excess of the par value thereof.
History: En. Sec. 452, Ch. 286, L. 1959; R.C.M. 1947, 40-4735.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-423. Dividends to mutual policyholders

33-3-423. Dividends to mutual policyholders.
(1) The directors of a domestic mutual insurer may from time to time apportion and pay or credit to its members dividends only out of that part of its surplus funds which represents net realized savings and net realized earnings in excess of the surplus required by law to be maintained.
(2) A dividend otherwise proper may be payable out of such savings and earnings even though the insurer's total surplus is then less than the aggregate of its contributed surplus.
History: En. Sec. 453, Ch. 286, L. 1959; R.C.M. 1947, 40-4736.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-424. Illegal dividends -- administrative or civil penalty

33-3-424. Illegal dividends -- administrative or civil penalty.
(1) Any director of a domestic stock or mutual insurer who votes for or concurs in declaration or payment of a dividend to stockholders or members other than as authorized under 33-3-422 or 33-3-423 shall be jointly and severally liable, together with other such directors likewise voting for or concurring, for any loss thereby sustained by the insurer.
(2) Any stockholder receiving such an illegal dividend shall be liable in the amount thereof to the insurer.
(3) The commissioner may revoke or suspend the certificate of authority of an insurer which has declared or paid such an illegal dividend.
History: En. Sec. 454, Ch. 286, L. 1959; R.C.M. 1947, 40-4737; amd. Sec. 25, Ch. 396, L. 2017.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-431. Borrowed surplus

33-3-431. Borrowed surplus.
(1) A domestic stock or mutual insurer may borrow money to defray the expenses of the insurer's organization, to provide the insurer with surplus funds, or for any purpose of the insurer's business upon a written agreement that the money is required to be repaid only out of the insurer's surplus in excess of that stipulated in the agreement. The agreement may provide for interest at a rate not to exceed the greater of the rate established in 25-9-205 or a rate that is 6 percentage points per year higher than the prime rate published by the federal reserve system in its statistical release H.15 Selected Interest Rates for bank prime loans dated 3 business days prior to the execution of the agreement. The agreement must specify whether the interest constitutes a liability of the insurer. A commission or promotion expense may not be paid in connection with a loan of the type described in this section.
(2) Money borrowed, together with the interest if stipulated in the agreement, does not form a part of the insurer's legal liabilities except as to the insurer's surplus in excess of the amount stipulated in the agreement or the basis of any setoff. However, until the money or interest, or both, are repaid, financial statements filed or published by the insurer must show as a footnote the amount then unpaid together with any interest accrued but unpaid.
(3) A loan of this type to a mutual or stock insurer is subject to the commissioner's approval. The insurer shall, in advance of the loan, file with the commissioner a statement of the purpose of the loan and a copy of the proposed loan agreement. The loan and agreement are approved unless within 15 days after filing the insurer is notified of the commissioner's disapproval and reasons for the disapproval. The commissioner shall disapprove any proposed loan or agreement if the commissioner finds the loan is unnecessary or excessive for the purpose intended or that the terms of the loan agreement are not fair and equitable to the parties, and to other similar lenders, if any, to the insurer, or that the information filed by the insurer is inadequate.
(4) A loan to a mutual or stock insurer or a substantial portion of the loan must be repaid by the insurer when the loan is no longer reasonably necessary for the purpose originally intended. Repayment of either principal or interest on the loan may not be made by a mutual or stock insurer unless approved in advance by the commissioner.
(5) This section does not apply to loans obtained by the insurer in the ordinary course of business from banks and other financial institutions or to loans secured by pledge or mortgage of assets.
History: En. Sec. 455, Ch. 286, L. 1959; R.C.M. 1947, 40-4738; amd. Sec. 6, Ch. 798, L. 1991; amd. Sec. 34, Ch. 379, L. 1995; amd. Sec. 6, Ch. 469, L. 2005; amd. Sec. 3, Ch. 108, L. 2011.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-432. Impairment of capital or assets

33-3-432. Impairment of capital or assets.
(1) If a stock insurer's capital, as represented by the aggregate par value of its outstanding capital stock, becomes impaired or the assets of a mutual insurer are less than its liabilities and the minimum amount of surplus required to be maintained by it under 33-3-204 for authority to transact the kinds of insurance being transacted, the commissioner shall at once determine the amount of deficiency and serve notice upon the insurer to make good the deficiency within 60 days after service of such notice.
(2) The deficiency may be made good in cash or in assets eligible under chapter 12 for the investment of the insurer's funds as follows:
(a) if a stock insurer, by reduction of the insurer's capital to an amount not below the minimum required for the kinds of insurance to be transacted; or
(b) if a mutual insurer, by amendment of its certificate of authority to cover only the kind or kinds of insurance for which the insurer has sufficient surplus under this title.
(3) If the deficiency is not made good and proof is filed with the commissioner within the 60-day period, the insurer is insolvent and the commissioner shall institute delinquency proceedings against it under chapter 2, part 13; except that if the deficiency exists because of increased loss reserves required by the commissioner or because of disallowance by the commissioner of certain assets or reduction of the value at which carried in the insurer's accounts, the commissioner may, upon application and good cause shown, extend for not more than an additional 60 days the period within which the deficiency may be made good and proof of making good is filed.
History: En. Sec. 456, Ch. 286, L. 1959; R.C.M. 1947, 40-4739; amd. Sec. 12, Ch. 303, L. 1981; amd. Sec. 141, Ch. 575, L. 1981; amd. Sec. 44, Ch. 304, L. 1999.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-433. Assessment of stockholders or members

33-3-433. Assessment of stockholders or members.
(1) Any insurer receiving the commissioner's notice mentioned in 33-3-432(1):
(a) if a stock insurer, by resolution of its board of directors and subject to any limitations upon assessment contained in its articles of incorporation, may assess its stockholders for amounts necessary to cure the deficiency and provide the insurer with a reasonable amount of surplus in addition. If a stockholder fails to pay a lawful assessment after notice given to the stockholder in person or by advertisement in a time and manner approved by the commissioner, the insurer may require the return of the original certificate of stock held by the stockholder and in cancellation and in lieu of the original certificate issue a new certificate for the number of shares that the stockholder may then be entitled to, upon the basis of the stockholder's proportionate interest in the amount of the insurer's capital stock as determined by the commissioner to be remaining at the time of determination of the amount of impairment under 33-3-432, after deducting from the proportionate interest the amount of the unpaid assessment. The insurer may pay for or reissue fractional shares under this subsection.
(b) if a mutual insurer, shall levy such an assessment upon members as is provided for under 33-3-412.
(2) Neither 33-3-432 nor this section may be considered to prohibit the insurer from curing any deficiency through any lawful means other than those referred to in 33-3-432 or this section.
History: En. Sec. 457, Ch. 286, L. 1959; R.C.M. 1947, 40-4740; amd. Sec. 1140, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-434. Directors' liability for losses during deficiency

33-3-434. Directors' liability for losses during deficiency.
The directors of the insurer shall be individually liable as to losses incurred under policies issued by the insurer after expiration of the period provided in 33-3-432 for curing any deficiency of the insurer's capital stock or surplus and prior to the curing of the deficiency.
History: En. Sec. 458, Ch. 286, L. 1959; R.C.M. 1947, 40-4741.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-435. Stock transfer during impairment of capital

33-3-435. Stock transfer during impairment of capital.
Any transfer of the stock of a domestic insurer made during the existence of any impairment of such insurer's capital does not release the stockholder making the transfer from any liability as a stockholder of such insurer which accrued prior to such transfer.
History: En. Sec. 459, Ch. 286, L. 1959; R.C.M. 1947, 40-4742.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-436. Mutual member's share of assets on liquidation

33-3-436. Mutual member's share of assets on liquidation.
(1) Upon any liquidation of a domestic mutual insurer, its assets remaining after discharge of its indebtedness, policy obligations, repayment of contributed or borrowed surplus, if any, and expenses of administration must be distributed to existing persons who were its members at any time within 36 months preceding the date that liquidation was authorized or ordered or the date of last termination of the insurer's certificate of authority, whichever date is the earlier.
(2) The distributive share of each member under subsection (1) must be in the proportion that the aggregate premiums earned by the insurer on the policies of the member during the combined periods of membership bear to the aggregate of all premiums earned on the policies of all members. The insurer may, and if the insurer is a life insurer shall, make a reasonable classification of its policies held by members and a formula based upon the classification for determining the equitable distributive share of each member. The classification and formula are subject to the approval of the commissioner.
History: En. Sec. 466, Ch. 286, L. 1959; R.C.M. 1947, 40-4749; amd. Sec. 1141, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-441. Equity securities of domestic stock insurance company -- statement of ownership

33-3-441. Equity securities of domestic stock insurance company -- statement of ownership.
(1) When used in 33-3-441 through 33-3-447, the term "equity security" means:
(a) any stock or similar security;
(b) any security convertible, with or without consideration, into an equity security or carrying any warrant or right to subscribe to or purchase an equity security;
(c) any warrant or right described in subsection (1)(b); or
(d) any other security that the commissioner considers to be of a similar nature and considers necessary or appropriate, by rules as the commissioner may prescribe in the public interest or for the protection of investors, to treat as an equity security.
(2) A domestic stock insurance company shall report to the commissioner the name of any person who acquires 10% or more of any class of equity security of the company. The company shall report the name of the person within 30 days of the person acquiring 10% or more of any class of equity security of the company. The company shall provide any other information about the person that the commissioner may require.
(3) If a person has not acquired at least a 10% interest of any class of equity security of a domestic stock insurance company during the last calendar year preceding the annual statement filing date, the company is only required to report in the annual statement the names and percentages of those persons holding at least 10% interest in any class of equity security.
History: En. Secs. 1, 6, Ch. 159, L. 1965; R.C.M. 1947, 40-4751, 40-4756; amd. Sec. 14, Ch. 380, L. 2003.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-442. Inside trading of securities -- profit inures to company -- limitation of action to recover -- rules

33-3-442. Inside trading of securities -- profit inures to company -- limitation of action to recover -- rules.
(1) For the purpose of preventing the unfair use of information that may have been obtained by the beneficial owner, director, or officer by reason of the individual's relationship to the company, any profit realized by the individual from any purchase and sale, or any sale and purchase, of any equity security of the company within any period of less than 6 months, unless the security was acquired in good faith in connection with a debt previously contracted, must benefit and be recoverable by the company, irrespective of any intention on the part of the beneficial owner, director, or officer in entering into the transaction of holding the security purchased or of not repurchasing the security sold for a period exceeding 6 months.
(2) Suit to recover the profit described in subsection (1) may be instituted at law or in equity in any court of competent jurisdiction by the company or by the owner of any security of the company in the name and in behalf of the company if the company fails or refuses to bring suit within 60 days after request or fails to diligently prosecute the suit. However, the suit may not be brought more than 2 years after the date the profit was realized.
(3) This section may not be construed to cover any transaction in which the beneficial owner was not the beneficial owner both at the time of the purchase and sale, or the sale and purchase, of the security involved or any transaction or transactions that the commissioner may exempt by rule as not comprehended within the purpose of this section.
History: En. Sec. 2, Ch. 159, L. 1965; R.C.M. 1947, 40-4752; amd. Sec. 1142, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-443. Short sales of equity securities prohibited -- time for delivery after sale

33-3-443. Short sales of equity securities prohibited -- time for delivery after sale.
(1) It is unlawful for any beneficial owner, director, or officer, directly or indirectly, to sell any equity security of the company if the person selling the security or the person's principal:
(a) does not own the security sold; or
(b) if the person owns the security, does not deliver it against the sale within 20 days or does not within 5 days after the sale deposit it in the mail or other usual channels of transportation.
(2) A person may not be considered to have violated this section if the person proves that notwithstanding the exercise of good faith the person was unable to make the delivery or deposit within that time or that to do so would cause undue inconvenience or expense.
History: En. Sec. 3, Ch. 159, L. 1965; R.C.M. 1947, 40-4753; amd. Sec. 1143, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-444. Exemptions -- securities held in an investment account -- primary or secondary market -- rules

33-3-444. Exemptions -- securities held in an investment account -- primary or secondary market -- rules.
(1) The provisions of 33-3-442 do not apply to any purchase and sale, or sale and purchase, and the provisions of 33-3-443 do not apply to any sale of an equity security of a domestic stock insurance company not then or later held by a person in an investment account by a broker-dealer in the ordinary course of business and incident to the establishment or maintenance by the broker-dealer of a primary or secondary market, except on an exchange as defined in the Securities Exchange Act of 1934, for the security.
(2) The commissioner may, by rules that the commissioner considers necessary or appropriate in the public interest, define and prescribe terms and conditions with respect to securities held in an investment account and transactions made in the ordinary course of business and incident to the establishment or maintenance of a primary or secondary market.
History: En. Sec. 4, Ch. 159, L. 1965; R.C.M. 1947, 40-4754; amd. Sec. 1144, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-445. Exemptions -- arbitrage transactions

33-3-445. Exemptions -- arbitrage transactions.
The provisions of 33-3-441 through 33-3-443 shall not apply to foreign or domestic arbitrage transactions unless made in contravention of such rules as the commissioner may adopt in order to carry out the purposes of 33-3-441 through 33-3-447.
History: En. Sec. 5, Ch. 159, L. 1965; R.C.M. 1947, 40-4755.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-446. Exemptions -- registered securities -- holding by less than 100 persons

33-3-446. Exemptions -- registered securities -- holding by less than 100 persons.
The provisions of 33-3-441 through 33-3-443 shall not apply to equity securities of a domestic stock insurance company if:
(1) such securities shall be registered or shall be required to be registered, pursuant to section 12 of the Securities Exchange Act of 1934, as amended; or
(2) such domestic stock insurance company shall not have any class of its equity securities held of record by 100 or more persons on the last business day of the year next preceding the year in which equity securities of the company would be subject to the provisions of 33-3-441 through 33-3-443 except for the provisions of this subsection (2).
History: En. Sec. 7, Ch. 159, L. 1965; R.C.M. 1947, 40-4757.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-447. Rules of commissioner -- classifications -- effect

33-3-447. Rules of commissioner -- classifications -- effect.
(1) The commissioner may adopt rules that may be necessary for the execution of the functions vested in the commissioner by 33-3-441 through 33-3-446 and may classify domestic stock insurance companies, securities, and other persons or matters within the commissioner's jurisdiction.
(2) A provision of 33-3-441 through 33-3-443 imposing any liability does not apply to any act done or omitted in good faith in conformity with any rule of the commissioner, notwithstanding that the rule may, after the act or omission, be amended or rescinded or determined by judicial or other authority to be invalid for any reason.
History: En. Sec. 8, Ch. 159, L. 1965; R.C.M. 1947, 40-4758; amd. Sec. 1145, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-450. Purpose

33-3-450. Purpose.
The purpose of 33-3-450 through 33-3-453 is to authorize domestic insurance companies to utilize modern systems for holding and transferring securities without physical delivery of securities certificates, subject to appropriate rules adopted by the commissioner.
History: En. Sec. 1, Ch. 380, L. 2003.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-451. Definitions

33-3-451. Definitions.
As used in this chapter, the following definitions apply:
(1) "Clearing corporation" has the meaning provided in 30-8-112, except that with respect to securities issued by institutions organized or existing under the laws of any foreign country or securities used to meet the deposit requirements pursuant to the laws of a foreign country as a condition of doing business in the foreign country, a clearing corporation may include a corporation that is organized or existing under the laws of any foreign country and is legally qualified under those laws to effect transactions in securities by computerized book entry.
(2) "Direct participant" means a bank, trust company, or other institution that maintains an account in its name in a clearing corporation and through which an insurance company participates in a clearing corporation.
(3) "Federal reserve book-entry system" means the computerized systems sponsored by the United States department of the treasury and certain agencies and instrumentalities of the United States for holding and transferring securities of the United States government and those agencies and instrumentalities, respectively, in federal reserve banks through banks that are members of the federal reserve system or that otherwise have access to the computerized systems.
(4) "Member bank" means a national bank, state bank, or trust company that is a member of the federal reserve system and through which an insurance company participates in the federal reserve book-entry system.
(5) "Security" has the meaning provided in 30-8-112.
History: En. Sec. 2, Ch. 380, L. 2003.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-452. Use of book-entry systems -- rules

33-3-452. Use of book-entry systems -- rules.
(1) (a) Other provisions of law may not be construed as prohibiting a domestic insurance company from depositing or arranging for the deposit of securities held in or purchased for its general account and its separate accounts in a clearing corporation or the federal reserve book-entry system.
(b) When securities are deposited with a clearing corporation, certificates representing securities of the same class of the same issuer may be merged and held in bulk in the name of the nominee of the clearing corporation with any other securities deposited with the clearing corporation by any person, regardless of the ownership of the securities. Certificates representing securities of small denominations may be merged into one or more certificates of larger denominations.
(c) The records of any member bank through which an insurance company holds securities in the federal reserve book-entry system and the records of any custodian bank through which an insurance company holds securities in a clearing corporation at all times must show that the securities are held for the insurance company and for which accounts of the insurance company.
(d) Ownership and other interests in securities subject to this subsection (1) may be transferred by bookkeeping entry on the books of a clearing corporation or in the federal reserve book-entry system without, in either case, physical delivery of certificates representing the securities.
(2) The commissioner may adopt rules that include but are not limited to rules governing the deposit by insurance companies of securities with clearing corporations and in the federal reserve book-entry system and rules pertaining to evidence that must be provided to the commissioner with respect to the recording of securities.
History: En. Sec. 3, Ch. 380, L. 2003.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 4. Finance › 33-3-453. Deposit of securities by insurance companies

33-3-453. Deposit of securities by insurance companies.
(1) Securities qualified for deposit under 33-3-450 through 33-3-453 may be deposited with a clearing corporation or held in the federal reserve book-entry system.
(2) An insurance company that is using securities to help meet the deposit requirements of Title 33, chapter 2, parts 1 and 6, and depositing those securities with a clearing corporation or holding the securities in the federal reserve book-entry system:
(a) may not withdraw the securities without the approval of the commissioner; and
(b) shall provide to the commissioner evidence issued by its custodian or member bank through which the insurance company has deposited the securities in a clearing corporation or through which the securities are held in the federal reserve book-entry system, respectively, in order to establish that the securities are actually recorded in an account in the name of the custodian, other direct participant, or member bank and that the records of the custodian, other direct participant, or member bank reflect that the securities are held subject to the order of the commissioner.
History: En. Sec. 4, Ch. 380, L. 2003; amd. Sec. 11, Ch. 151, L. 2017.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 5. Insurance Operations › 33-3-501. Repealed

33-3-501. Repealed.
Sec. 29, Ch. 303, L. 1981.
History: En. Sec. 430, Ch. 286, L. 1959; R.C.M. 1947, 40-4713.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 5. Insurance Operations › 33-3-502. Solicitations in other states

33-3-502. Solicitations in other states.
(1) A domestic insurer may not knowingly solicit insurance business in any reciprocating state in which it is not then licensed as an authorized insurer.
(2) This section does not prohibit advertising through publication and radio, television, and other broadcasts originating outside the reciprocating state if the insurer is licensed in a majority of the states in which the advertising is disseminated and if the advertising is not specifically directed to residents of the reciprocating state.
(3) This section does not prohibit insurance, covering persons or risks located in a reciprocating state, under contracts solicited and issued in states in which the insurer is then licensed. This section does not prohibit insurance effectuated by the insurer as an unauthorized insurer in accordance with the laws of the reciprocating state.
(4) A reciprocating state, as used in this section, is one under the laws of which a similar prohibition is imposed upon and enforced against insurers domiciled in that state.
(5) The commissioner shall suspend or revoke the certificate of authority of a domestic insurer found by the commissioner, after a hearing, to have violated this section.
History: En. Sec. 445, Ch. 286, L. 1959; R.C.M. 1947, 40-4728; amd. Sec. 1146, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 5. Insurance Operations › 33-3-503. Membership in mutuals

33-3-503. Membership in mutuals.
(1) Each policyholder of a domestic mutual insurer, other than of a reinsurance contract, is a member of the insurer with all rights and obligations of such membership, and the policy shall so specify.
(2) Any person, government or governmental agency, state or political subdivision thereof, public or private corporation, board, association, firm, estate, trustee, or fiduciary may be a member of a domestic, foreign, or alien mutual insurer. Any officer, stockholder, trustee, or legal representative of any such corporation, board, association, or estate may be recognized as acting for or on its behalf for the purpose of such membership and shall not be personally liable upon any contract of insurance for acting in such representative capacity.
(3) Any domestic corporation may participate as a member of a mutual insurer as an incidental purpose for which such corporation is organized and as much granted as the rights and powers expressly conferred.
History: En. Sec. 431, Ch. 286, L. 1959; R.C.M. 1947, 40-4714.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 6. Dissolution and Liquidation › 33-3-602. Conversion to involuntary liquidation

33-3-602. Conversion to involuntary liquidation.
An insurer may at any time during liquidation under Title 35, chapter 2, part 7, or Title 35, chapter 14, part 14, apply to the commissioner to have the liquidation continued under the commissioner's supervision. Upon receipt of the application, the commissioner shall apply to the court for liquidation under 33-2-1341.
History: En. Sec. 3, Ch. 389, L. 1987; amd. Sec. 190, Ch. 368, L. 1991; amd. Sec. 1147, Ch. 56, L. 2009; amd. Sec. 13, Ch. 151, L. 2017; amd. Sec. 234, Ch. 271, L. 2019.