reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1372. Liquidator's recommendations to the court concerning claims

33-2-1372. Liquidator's recommendations to the court concerning claims.
(1) The liquidator shall review all claims duly filed in the liquidation and make further investigation that the liquidator considers necessary. The liquidator may compound, compromise, or in any other manner negotiate the amount for which claims will be recommended to the court except when the liquidator is required by law to accept claims as settled by any person or organization, including any guaranty association or foreign guaranty association. Unresolved disputes must be determined under 33-2-1368. As soon as practicable, the liquidator shall present to the court a report of the claims against the insurer with the liquidator's recommendations. The report must include the name and address of each claimant and the amount of the claim finally recommended, if any. If the insurer has issued annuities or life insurance policies, the liquidator shall report the persons to whom, according to the records of the insurer, amounts are owed as cash surrender values or other investment value and the amounts owed.
(2) The court may approve, disapprove, or modify the report on claims by the liquidator. Reports not modified by the court within a period of 60 days following submission by the liquidator must be treated by the liquidator as allowed claims, subject to later modification or to rulings made by the court pursuant to 33-2-1368. A claim under a policy of insurance may not be allowed for an amount in excess of the applicable policy limits.
History: En. Sec. 43, Ch. 383, L. 1979; amd. Sec. 1122, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1373. Distribution of assets

33-2-1373. Distribution of assets.
Under the direction of the court, the liquidator shall pay distributions in a manner that will assure the proper recognition of priorities and a reasonable balance between the expeditious completion of the liquidation and the protection of unliquidated and undetermined claims, including third-party claims. Distribution of assets in kind may be made at valuations set by agreement between the liquidator and the creditor and approved by the court.
History: En. Sec. 44, Ch. 383, L. 1979.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1374. Unclaimed and withheld funds

33-2-1374. Unclaimed and withheld funds.
(1) All unclaimed funds subject to distribution remaining in the liquidator's hands when the liquidator is ready to apply to the court for discharge, including the amount distributable to any creditor, shareholder, member, or other person who is unknown or cannot be found, must be deposited with the state treasurer and must be paid without interest except in accordance with 33-2-1371 to the person entitled to the funds or the person's legal representative upon proof satisfactory to the state treasurer of the person's right to the funds. Any amount on deposit not claimed within 6 years from the discharge of the liquidator must be considered to have been abandoned and must be escheated without formal escheat proceedings and be deposited in the general fund.
(2) All funds withheld under 33-2-1366 and not distributed must upon discharge of the liquidator be deposited with the state treasurer and paid in accordance with 33-2-1371. Any sums remaining that under 33-2-1371 would revert to the undistributed assets of the insurer must be transferred to the state treasurer and become the property of the state under subsection (1) unless the commissioner petitions the court to reopen the liquidation under 33-2-1376.
History: En. Sec. 45, Ch. 383, L. 1979; amd. Sec. 1123, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1375. Termination of liquidation proceedings

33-2-1375. Termination of liquidation proceedings.
(1) When all assets justifying the expense of collection and distribution have been collected and distributed under this part, the liquidator shall apply to the court for discharge. The court may grant the discharge and make any other orders, including an order to transfer any remaining funds that are uneconomic to distribute, as may be considered appropriate.
(2) Any other person may apply to the court at any time for an order under subsection (1). If the application is denied, the applicant shall pay the costs and expenses of the liquidator in resisting the application, including a reasonable attorney's fee.
History: En. Sec. 46, Ch. 383, L. 1979.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1376. Reopening liquidation

33-2-1376. Reopening liquidation.
After the liquidation proceeding has been terminated and the liquidator discharged, the commissioner or other interested party may at any time petition the district court to reopen the proceedings for good cause, including the discovery of additional assets. If the court is satisfied that there is justification for reopening, it shall so order.
History: En. Sec. 47, Ch. 383, L. 1979.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1377. Disposition of records during and after liquidation

33-2-1377. Disposition of records during and after liquidation.
When it appears to the commissioner that the records of any insurer in the process of liquidation or completely liquidated are no longer useful, the commissioner may recommend to the court and the court shall direct which records should be retained for future reference and which should be destroyed.
History: En. Sec. 48, Ch. 383, L. 1979; amd. Sec. 1124, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1378. Audit of the receiver's books

33-2-1378. Audit of the receiver's books.
The district court may, as it considers desirable, cause audits to be made of the books of the commissioner relating to any receivership established under this part, and a report of each audit shall be filed with the commissioner and with the court. The books, records, and other documents of the receivership shall be made available to the auditor at any time without notice. The expense of each audit shall be considered a cost of administration of the receivership.
History: En. Sec. 49, Ch. 383, L. 1979.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1379. Conservation of property of foreign or alien insurers

33-2-1379. Conservation of property of foreign or alien insurers.
(1) If a domiciliary liquidator has not been appointed, the commissioner may apply to the district court by verified petition for an order directing the commissioner to act as conservator to conserve the property of an alien insurer not domiciled in this state or a foreign insurer on any one or more of the following grounds:
(a) any of the grounds in 33-2-1331;
(b) that any of its property has been sequestered by official action in its domiciliary state or in any other state;
(c) that enough of its property has been sequestered in a foreign country to give reasonable cause to fear that the insurer is or may become insolvent;
(d) that its certificate of authority to do business in this state has been revoked or that none was ever issued;
(e) that there are residents of this state with outstanding claims or outstanding policies.
(2) When an order is sought under subsection (1), the court shall cause the insurer to be given notice and a time to respond that is reasonable under the circumstances.
(3) The court may issue the order in whatever terms it considers appropriate. The filing or recording of the order with the clerk of the district court or the clerk and recorder of the county in which the principal business of the company is located or the county in which its principal office or place of business is located must impart the same notice as a deed, bill of sale, or other evidence of title filed or recorded with that clerk and recorder would have imparted.
(4) The conservator may at any time petition for and the court may grant an order under 33-2-1380 to liquidate assets of a foreign or alien insurer under conservation or, if appropriate, for an order under 33-2-1382 to be appointed ancillary receiver.
(5) The conservator may at any time petition the court for an order terminating conservation of an insurer. If the court finds that the conservation is no longer necessary, it shall order the insurer to be restored to possession of its property and the control of its business. The court may also make a finding and issue an order at any time upon motion of any interested party, but if the motion is denied, all costs must be assessed against the party.
History: En. Sec. 50, Ch. 383, L. 1979; amd. Sec. 1125, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1380. Liquidation of assets of foreign or alien insurers

33-2-1380. Liquidation of assets of foreign or alien insurers.
(1) If a domiciliary receiver has not been appointed, the commissioner may apply to the district court by verified petition for an order directing the commissioner to liquidate the assets found in this state of a foreign insurer or an alien insurer not domiciled in this state on any of the following grounds:
(a) any of the grounds in 33-2-1331 or 33-2-1341; or
(b) any of the grounds specified in 33-2-1379(1)(b) through (1)(d).
(2) When an order is sought under subsection (1), the court shall cause the insurer to be given notice and time to respond that is reasonable under the circumstances.
(3) If it appears to the court that the best interests of creditors, policyholders, and the public require, the court may issue an order to liquidate in whatever terms it considers appropriate. The filing or recording of the order with the clerk of the district court or the clerk and recorder of the county in which the principal business of the company is located or the county in which its principal office or place of business is located shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that clerk and recorder would have imparted.
(4) If a domiciliary liquidator is appointed in a reciprocal state while a liquidation is proceeding under this section, the liquidator under this section shall act as ancillary receiver under 33-2-1382. If a domiciliary liquidator is appointed in a nonreciprocal state while a liquidation is proceeding under this section, the liquidator under this section may petition the court for permission to act as ancillary receiver under 33-2-1382.
(5) On the same grounds as specified in subsection (1), the commissioner may petition any appropriate federal district court to be appointed receiver to liquidate that portion of the insurer's assets and business over which the court will exercise jurisdiction or any lesser part of the assets and business that the commissioner considers desirable for the protection of the policyholders and creditors in this state.
(6) The court may order the commissioner, when the commissioner has liquidated the assets of a foreign or alien insurer under this section, to pay claims of residents of this state against the insurer under rules that relate to the liquidation of insurers under this part and that are otherwise compatible with the provisions of this section.
History: En. Sec. 51, Ch. 383, L. 1979; amd. Sec. 1126, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1381. Domiciliary liquidators in other states

33-2-1381. Domiciliary liquidators in other states.
(1) The domiciliary liquidator of an insurer domiciled in a reciprocal state is, except as to special deposits and security on secured claims under 33-2-1382(3), vested by operation of law with the title to all of the assets, property, contracts, and rights of action, insurance producers' balances, and all of the books, accounts, and other records of the insurer located in this state. The date of vesting must be the date of the filing of the petition if that date is specified by the domiciliary law for the vesting of property in the domiciliary state. Otherwise, the date of vesting is the date of entry of the order directing possession to be taken. The domiciliary liquidator has the immediate right to recover balances due from insurance producers and to obtain possession of the books, accounts, and other records of the insurer located in this state. The domiciliary liquidator also has the right to recover all other assets of the insurer located in this state, subject to 33-2-1382.
(2) If a domiciliary liquidator is appointed for an insurer not domiciled in a reciprocal state, the commissioner of this state is vested by operation of law with the title to all of the property, contracts, and rights of action and all of the books, accounts, and other records of the insurer located in this state, at the same time that the domiciliary liquidator is vested with title in the domicile. The commissioner of this state may petition for a conservation or liquidation order under 33-2-1379 or 33-2-1380 or for an ancillary receivership under 33-2-1382 or, after approval by the district court, may transfer title to the domiciliary liquidator that the interests of justice and the equitable distribution of the assets require.
(3) Claimants residing in this state may file claims with the liquidator or ancillary receiver, if any, in this state or with the domiciliary liquidator if the domiciliary law permits. The claims must be filed on or before the last date fixed for the filing of claims in the domiciliary liquidation proceedings.
History: En. Sec. 52, Ch. 383, L. 1979; amd. Sec. 1, Ch. 713, L. 1989; amd. Sec. 1127, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1382. Ancillary formal proceedings

33-2-1382. Ancillary formal proceedings.
(1) If a domiciliary liquidator has been appointed for an insurer not domiciled in this state, the commissioner may file a petition with the district court requesting appointment as ancillary receiver in this state:
(a) if the commissioner finds that there are sufficient assets of the insurer located in this state to justify the appointment of an ancillary receiver;
(b) if the protection of creditors or policyholders in this state requires.
(2) The court may issue an order appointing an ancillary receiver in whatever terms it considers appropriate. The filing or recording of the order with the county clerk and recorder imparts the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded.
(3) When a domiciliary liquidator has been appointed in a reciprocal state, then the ancillary receiver appointed in this state may, whenever necessary, aid and assist the domiciliary liquidator in recovering assets of the insurer located in this state. The ancillary receiver shall, as soon as practicable, liquidate from respective securities those special deposit claims and secured claims that are proved and allowed in the ancillary proceedings in this state and shall pay the necessary expenses of the proceedings. The ancillary receiver shall promptly transfer all remaining assets, books, accounts, and records to the domiciliary liquidator. Subject to this section, the ancillary receiver and the ancillary receiver's deputies have the same powers and are subject to the same duties with respect to the administration of assets as a liquidator of an insurer domiciled in this state.
(4) When a domiciliary liquidator has been appointed in this state, ancillary receivers appointed in reciprocal states have, as to assets and books, accounts, and other records in their respective states, corresponding rights, duties, and powers to those provided in subsection (3) for ancillary receivers appointed in this state.
History: En. Sec. 53, Ch. 383, L. 1979; amd. Sec. 144, Ch. 575, L. 1981; amd. Sec. 1128, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1383. Ancillary summary proceedings

33-2-1383. Ancillary summary proceedings.
The commissioner may institute proceedings under 33-2-1321 through 33-2-1323 at the request of the commissioner or other appropriate insurance official of the domiciliary state of any foreign or alien insurer having property located in this state.
History: En. Sec. 54, Ch. 383, L. 1979; amd. Sec. 1129, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1384. Claims of nonresidents against insurers domiciled in this state

33-2-1384. Claims of nonresidents against insurers domiciled in this state.
(1) In a liquidation proceeding begun in this state against an insurer domiciled in this state, claimants residing in foreign countries or in states not reciprocal states must file claims in this state, and claimants residing in reciprocal states may file claims either with the ancillary receivers, if any, in their respective states or with the domiciliary liquidator. Claims must be filed on or before the last date fixed for the filing of claims in the domiciliary liquidation proceeding.
(2) Claims belonging to claimants residing in reciprocal states may be proved either in the liquidation proceeding in this state as provided in this part or in ancillary proceedings, if any, in the reciprocal states. If notice of the claims and opportunity to appear and be heard is afforded the domiciliary liquidator of this state as provided in 33-2-1385(2) with respect to ancillary proceedings, the final allowance of claims by the courts in ancillary proceedings in reciprocal states is conclusive as to amount and as to priority against special deposits or other security located in such ancillary states but is not conclusive with respect to priorities against general assets under 33-2-1371.
History: En. Sec. 55, Ch. 383, L. 1979.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1385. Claims of residents against insurers domiciled in reciprocal states

33-2-1385. Claims of residents against insurers domiciled in reciprocal states.
(1) In a liquidation proceeding in a reciprocal state against an insurer domiciled in that state, claimants against the insurer who reside within this state may file claims either with the ancillary receiver, if any, in this state or with the domiciliary liquidator. Claims must be filed on or before the last dates fixed for the filing of claims in the domiciliary liquidation proceeding.
(2) Claims belonging to claimants residing in this state may be proved either in the domiciliary state under the law of that state or in ancillary proceedings, if any, in this state. If a claimant elects to prove a claim in this state, the claimant shall file the claim with the liquidator in the manner provided in 33-2-1364 and 33-2-1365. The ancillary receiver shall make a recommendation to the court in the same manner provided in 33-2-1372. The ancillary receiver shall also arrange a date for hearing, if necessary, under 33-2-1368 and shall give notice to the liquidator in the domiciliary state, either by certified mail or by personal service, at least 40 days prior to the date set for hearing. If the domiciliary liquidator, within 30 days after the giving of the notice, gives notice in writing to the ancillary receiver and to the claimant, either by certified mail or by personal service, of the ancillary receiver's intention to contest the claim, the ancillary receiver is entitled to appear or to be represented in any proceeding in this state involving the adjudication of the claim.
(3) The final allowance of the claim by the courts of this state must be accepted as conclusive as to amount and as to priority against special deposits or other security located in this state.
History: En. Sec. 56, Ch. 383, L. 1979; amd. Sec. 1130, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1386. Exemption from legal process during pendency of liquidation

33-2-1386. Exemption from legal process during pendency of liquidation.
During the pendency in this or any other state of a liquidation proceeding, whether called by that name or not, no action or proceeding in the nature of an attachment, garnishment, or levy of execution may be commenced or maintained in this state against the delinquent insurer or its assets.
History: En. Sec. 57, Ch. 383, L. 1979.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1387. Interstate priorities

33-2-1387. Interstate priorities.
(1) In a liquidation proceeding in this state involving one or more reciprocal states, the order of distribution of the domiciliary state must control as to all claims of residents of this and reciprocal states. All claims of residents of reciprocal states must be given equal priority of payment from general assets regardless of where the assets are located.
(2) The owners of special deposit claims against an insurer for which a liquidator is appointed in this or any other state is given priority against the special deposits in accordance with the statutes governing the creation and maintenance of the deposits. If there is a deficiency in any deposit so that the claims secured by it are not fully discharged from it, the claimants may share in the general assets, but the sharing must be deferred until general creditors, and also claimants against other special deposits who have received smaller percentages from their respective special deposits, have been paid percentages of their claims equal to the percentage paid from the special deposit.
(3) The owner of a secured claim against an insurer for which a liquidator has been appointed in this or any other state may surrender the security and file the claim as a general creditor, or the claim may be discharged by resort to the security in accordance with 33-2-1370, in which case the deficiency, if any, must be treated as a claim against the general assets of the insurer on the same basis as claims of unsecured creditors.
History: En. Sec. 58, Ch. 383, L. 1979; amd. Sec. 1131, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1388. Subordination of claims for noncooperation of ancillary receiver

33-2-1388. Subordination of claims for noncooperation of ancillary receiver.
If an ancillary receiver in another state or foreign country, whether called by that name or not, fails to transfer to the domiciliary liquidator in this state any assets within the ancillary receiver's control, other than special deposits, diminished only by the expenses of the ancillary receivership, if any, the claims filed in the ancillary receivership, other than special deposit claims or secured claims, must be placed in the class of claims under 33-2-1371(8).
History: En. Sec. 59, Ch. 383, L. 1979; amd. Sec. 28, Ch. 227, L. 2001.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1391. Condition on release from delinquency proceedings

33-2-1391. Condition on release from delinquency proceedings.
An insurer that is subject to any delinquency proceeding, whether formal, informal, administrative, or judicial, may not:
(1) be released from the proceeding, unless the proceeding is converted to a judicial rehabilitation or liquidation proceeding;
(2) be permitted to solicit or accept new business or request or accept the restoration of any suspended or revoked license or certificate of authority;
(3) be returned to the control of its shareholders or private management; or
(4) have any of its assets returned to the control of its shareholders or private management until all payments of or on account of the insurer's contractual obligations by all guaranty associations, along with all expenses of the guaranty associations and interest on all payments and expenses, have been repaid to the guaranty associations or a plan of repayment by the insurer has been approved by the guaranty association.
History: En. Sec. 35, Ch. 596, L. 1993.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1392. Indemnification of rehabilitator, liquidator, and employees -- persons covered

33-2-1392. Indemnification of rehabilitator, liquidator, and employees -- persons covered.
(1) The persons entitled to protection under 33-2-1393 and 33-2-1394 are:
(a) all rehabilitators and liquidators responsible for the conduct of a delinquency proceeding under Title 33, chapter 2, including present and former rehabilitators and liquidators; and
(b) the employees of the rehabilitators and liquidators, including all present and former special deputies and assistant special deputies appointed by the commissioner, and all persons whom the commissioner, special deputies, or assistant special deputies have employed to assist in a delinquency proceeding under Title 33, chapter 2.
(2) Attorneys, accountants, auditors, and other professional persons or firms, who are retained by the rehabilitator or liquidator as independent contractors, and their employees are not considered employees of the rehabilitator or liquidator for purposes of any cause of action initiated by the rehabilitator or liquidator against the independent contractor in the name of the rehabilitation or liquidation estate.
History: En. Sec. 36, Ch. 596, L. 1993.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1393. Indemnification of rehabilitator, liquidator, and employees

33-2-1393. Indemnification of rehabilitator, liquidator, and employees.
(1) If any legal action is commenced against the rehabilitator or liquidator or any employee of the rehabilitator or liquidator, whether against the rehabilitator, liquidator, or employee personally or in an official capacity, alleging property damage, property loss, personal injury, or other civil liability caused by or resulting from any alleged act, error, or omission of the rehabilitator, liquidator, or employee arising out of or by reason of duties or employment, the rehabilitator, liquidator, or employee is indemnified from the assets of the insurer for all expenses, attorney fees, judgments, settlements, decrees, surety bond premiums, or amounts due and owing or paid in satisfaction of or incurred in the defense of the legal action unless it is determined upon a final adjudication on the merits that the alleged act, error, or omission of the rehabilitator, liquidator, or employee that gave rise to the claim did not arise out of or by reason of the rehabilitator's, liquidator's, or employee's duties or employment or was caused by intentional or willful and wanton misconduct.
(2) Attorney fees and related expenses incurred in defending a legal action for which indemnity is available under this section must be paid from the assets of the insurer, as the expenses are incurred and in advance of the final disposition of the action, upon receipt of an undertaking by or on behalf of the rehabilitator, liquidator, or employee to repay the attorney fees and expenses. If, upon a final adjudication on the merits, it is determined that the rehabilitator, liquidator, or employee is not entitled to indemnity under this section, the payment must be made from the undertaking.
(3) An indemnification for expenses, attorney fees, judgments, settlements, decrees, surety bond premiums, or other amounts paid or to be paid from the insurer's assets pursuant to this section are an administrative expense of the insurer.
(4) If actual or threatened litigation against a rehabilitator, liquidator, or employee for which indemnity may be available under this section occurs, a reasonable amount of funds that in the judgment of the commissioner may be needed to provide indemnity must be segregated and reserved from the assets of the insurer as security for the payment of indemnity until all applicable statutes of limitation have run, all actual or threatened actions against the rehabilitator, liquidator, or employee have been completely and finally resolved, and all obligations of the insurer and the commissioner under this section have been satisfied.
(5) In lieu of segregation and reservation of funds, the commissioner may obtain a surety bond or make other arrangements that will enable the commissioner to fully secure the payment of all obligations under this section.
History: En. Sec. 37, Ch. 596, L. 1993.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 13. Supervision, Rehabilitation, and Liquidation › 33-2-1394. Settlement of actions against rehabilitator, liquidator, and employees -- court approval -- applicability

33-2-1394. Settlement of actions against rehabilitator, liquidator, and employees -- court approval -- applicability.
(1) If any legal action against an employee for which indemnity may be available under this section is settled prior to final adjudication on the merits, the insurer shall pay the settlement amount on behalf of the employee or indemnify the employee for the settlement amount unless the commissioner determines:
(a) that the claim did not arise out of or by reason of the employee's duties or employment; or
(b) that the claim was caused by the intentional or willful and wanton misconduct of the employee.
(2) In a legal action in which the rehabilitator or liquidator is a defendant, that portion of any settlement relating to the alleged act, error, or omission of the rehabilitator or liquidator is subject to the approval of the court before which the delinquency proceeding is pending. The court may not approve that portion of the settlement if it determines:
(a) that the claim did not arise out of or by reason of the rehabilitator's or liquidator's duties or employment; or
(b) that the claim was caused by the intentional or willful and wanton misconduct of the rehabilitator or liquidator.
(3) This section may not be construed to deprive the rehabilitator, liquidator, or employee of immunity, indemnity, benefit of law, right, or defense available under any provision of law, including, without limitation, the provisions of Title 2, chapter 9.
(4) (a) Except as otherwise provided, a legal action by a third party does not lie against the rehabilitator, liquidator, or employee based in whole or in part on any alleged act, error, or omission that took place prior to October 1, 1993, unless suit is filed and valid service of process is obtained by October 1, 1994. A legal action that is pending on or filed after September 30, 1993, by a liquidator or a liquidation estate will lie against a former special deputy liquidator or any employee, agent, or independent contractor retained by a special deputy liquidator without regard to when the alleged act, error, or omission occurred.
(b) Subsections (1) through (3) apply to any suit that is pending on or filed after October 1, 1993, without regard to when the alleged act, error, or omission took place.
History: En. Sec. 38, Ch. 596, L. 1993; amd. Sec. 31, Ch. 379, L. 1995.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 14. Certificates of Insurance Model Act › 33-2-1402. Definitions

33-2-1402. Definitions.
As used in this part, the following definitions apply:
(1) "Certificate of insurance" means a document or instrument, regardless of how titled or described, that is prepared or issued by an insurer or insurance producer as evidence of property or casualty insurance coverage. The term does not include a policy of insurance, insurance binder, policy endorsement, or automobile insurance identification or information card.
(2) "Insurance producer" means a person required to be licensed under the laws of this state to sell, solicit, or negotiate property or casualty insurance.
(3) "Insurer" means an organization that issues property or casualty insurance.
(4) "Person" means an individual, partnership, corporation, association, or other legal entity, including any government or governmental subdivision or agency.
History: En. Sec. 2, Ch. 303, L. 2013.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 14. Certificates of Insurance Model Act › 33-2-1403. Certificate forms

33-2-1403. Certificate forms.
(1) Except as provided in subsection (3), a person may not prepare, issue, request, or require the issuance of a certificate of insurance on property, operations, or risks located in this state unless the certificate of insurance form has been filed with the commissioner by or on behalf of an insurer.
(2) The commissioner shall prohibit the use of a certificate of insurance form if the form is unfair, misleading, or deceptive or violates public policy or law, including rules adopted by the commissioner.
(3) Insurers are not required to file the current standard certificate of insurance forms promulgated and filed with the commissioner by the association for cooperative operations research and development, the American association of insurance services, or the insurance services office, inc., or certificate of insurance forms whose specific content and wording are established by federal law or regulation or by any law or rule of this state.
(4) A certificate of insurance is not a policy of insurance and does not affirmatively or negatively amend, extend, or alter the coverage afforded by the policy to which the certificate of insurance makes reference. A certificate of insurance may not confer to any person new or additional rights beyond what the referenced policy of insurance expressly provides.
History: En. Sec. 3, Ch. 303, L. 2013.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 14. Certificates of Insurance Model Act › 33-2-1404. Limitations on use

33-2-1404. Limitations on use.
(1) A person may not:
(a) alter or modify a certificate of insurance form filed with the commissioner;
(b) prepare, issue, request, or require the issuance of a certificate of insurance that contains any false or misleading information concerning the policy of insurance to which the certificate of insurance makes reference; or
(c) prepare, issue, request, or require the issuance of a certificate of insurance that purports to affirmatively or negatively alter, amend, or extend the coverage provided by the policy of insurance to which the certificate of insurance makes reference.
(2) A certificate of insurance may not warrant that the policy of insurance referenced in the certificate complies with the insurance or indemnification requirements of a contract, and the inclusion of a contract number or description in the certificate of insurance may not be interpreted as warranting compliance with the insurance or indemnification requirements of a contract.
History: En. Sec. 4, Ch. 303, L. 2013.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 14. Certificates of Insurance Model Act › 33-2-1405. Notice requirements

33-2-1405. Notice requirements.
A person is entitled to notice of cancellation, nonrenewal, or other material change concerning a policy of insurance only if the person has notice rights under the terms of the policy of insurance or any endorsement to the policy. The terms and conditions of the notice are governed by the policy of insurance or endorsement and may not be altered by a certificate of insurance.
History: En. Sec. 5, Ch. 303, L. 2013.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 14. Certificates of Insurance Model Act › 33-2-1406. Scope -- voidness

33-2-1406. Scope -- voidness.
(1) The provisions of this part apply to all certificates of insurance issued in connection with property, operations, or risks located in this state, regardless of where the policyholder, insurer, insurance producer, or person requesting or requiring the issuance of the certificate of insurance is located.
(2) A certificate of insurance or any other document or correspondence prepared, issued, requested, or required in violation of this part is void.
History: En. Sec. 6, Ch. 303, L. 2013.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 14. Certificates of Insurance Model Act › 33-2-1407. Enforcement and penalties -- rulemaking

33-2-1407. Enforcement and penalties -- rulemaking.
(1) The commissioner may examine and investigate the activities of any person that the commissioner reasonably believes has been or is engaged in an act or practice prohibited by this part.
(2) The commissioner may enforce the provisions of this part by issuing cease and desist orders and by imposing a fine not to exceed $1,000 for each violation.
(3) The commissioner may adopt rules to implement the provisions of this part.
History: En. Sec. 7, Ch. 303, L. 2013.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 15. Regulation of Controlled Insurers and Controlling Producers › 33-2-1502. Filing requirements

33-2-1502. Filing requirements.
(1) Each domestic, foreign, and alien insurer authorized to transact insurance in this state shall, on or before March 1 of each year, file with the NAIC a copy of its annual statement convention form, along with any additional filings for the preceding year as prescribed by the commissioner. The information filed with the NAIC must be in the same format and scope as that required by the commissioner and must include the signed jurat page and the actuarial certification. Amendments to the annual statement filing that are subsequently filed with the commissioner must also be filed with the NAIC.
(2) Foreign insurers domiciled in a state that has a law substantially similar to this section are considered to be in compliance with this section.
History: En. Sec. 2, Ch. 596, L. 1993.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 15. Regulation of Controlled Insurers and Controlling Producers › 33-2-1503. Immunity of NAIC

33-2-1503. Immunity of NAIC.
In the absence of actual malice, members of the NAIC; their authorized committees, subcommittees, task forces, delegates, and employees; and all others charged with the responsibility of collecting and processing the information developed from the filing of the annual statement convention forms are considered to act under the authority of 33-2-1502 through 33-2-1504. They are not subject to civil liability for libel, slander, or any other cause of action arising from their collection, review, analysis, or dissemination of information collected from the filings required by 33-1-408 through 33-1-410, 33-2-1216 through 33-2-1218, 33-2-1391 through 33-2-1394, Title 33, chapter 2, parts 15 through 17, and 33-11-110.
History: En. Sec. 3, Ch. 596, L. 1993.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 15. Regulation of Controlled Insurers and Controlling Producers › 33-2-1504. Confidentiality

33-2-1504. Confidentiality.
All financial analysis ratios and examination synopses concerning insurance companies that are submitted to the department by the NAIC insurance regulatory information systems are confidential and may not be disclosed by the department.
History: En. Sec. 4, Ch. 596, L. 1993.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 15. Regulation of Controlled Insurers and Controlling Producers › 33-2-1509. Applicability of minimum standards

33-2-1509. Applicability of minimum standards.
(1) The provisions of 33-2-1510 apply if, in any calendar year, the aggregate amount of gross written premiums on business placed with a controlled insurer by a controlling producer is equal to or greater than 5% of the admitted assets of the controlled insurer, as reported in the controlled insurer's quarterly statement filed as of September 30 of the prior year.
(2) Notwithstanding the provisions of subsection (1), the provisions of 33-2-1510 do not apply if:
(a) the controlling producer:
(i) does not receive compensation based upon the amount of premiums written in connection with the insurance and places insurance only with:
(A) the controlled insurer; or
(B) the controlled insurer and a member or members of the controlled insurer's holding company system or the controlled insurer's parent, affiliate, or subsidiary; and
(ii) accepts insurance placements only from nonaffiliated subproducers and not directly from insureds; and
(b) except for insurance business written through a residual market facility, the controlled insurer accepts insurance business only from a controlling producer, a producer controlled by the controlled insurer, or a producer that is a subsidiary of the controlled insurer.
History: En. Sec. 5, Ch. 596, L. 1993.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 15. Regulation of Controlled Insurers and Controlling Producers › 33-2-1511. Audit committee

33-2-1511. Audit committee.
Each controlled insurer shall have an audit committee of the board of directors composed of independent directors. The audit committee shall annually review the adequacy of the controlled insurer's loss reserves and meet with management, the controlled insurer's independent certified public accountants, and an independent casualty actuary or other independent loss reserve specialist acceptable to the commissioner.
History: En. Sec. 7, Ch. 596, L. 1993.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 15. Regulation of Controlled Insurers and Controlling Producers › 33-2-1512. Annual report by independent actuary

33-2-1512. Annual report by independent actuary.
In addition to any other required loss reserve certification, the controlled insurer shall, on April 1 of each year, file with the commissioner an opinion of an independent casualty actuary or other independent loss reserve specialist acceptable to the commissioner. The opinion must report the loss ratios for each line of business written and must attest to the adequacy of loss reserves established for losses incurred and outstanding as of the yearend, including losses incurred but not reported, on business placed by the producer.
History: En. Sec. 8, Ch. 596, L. 1993.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 15. Regulation of Controlled Insurers and Controlling Producers › 33-2-1513. Annual report to commissioner

33-2-1513. Annual report to commissioner.
The controlled insurer shall annually report to the commissioner:
(1) the amount of commissions paid to the producer;
(2) the percentage the amount represents of the net premiums written; and
(3) comparable amounts and the percentage paid to noncontrolling producers for placements of the same kinds of insurance.
History: En. Sec. 9, Ch. 596, L. 1993.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 15. Regulation of Controlled Insurers and Controlling Producers › 33-2-1514. Disclosure

33-2-1514. Disclosure.
(1) Except as provided in subsection (2), the producer, prior to the effective date of the policy, shall deliver written notice to the prospective insured, disclosing the relationship between the producer and the controlled insurer.
(2) If the business is placed through a subproducer who is not a controlling producer, the controlling producer shall retain in the controlling producer's records a signed commitment from the subproducer that the subproducer is aware of the relationship between the controlled insurer and the producer and that the subproducer has notified or will notify the insured.
History: En. Sec. 10, Ch. 596, L. 1993.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 15. Regulation of Controlled Insurers and Controlling Producers › 33-2-1515. Penalties

33-2-1515. Penalties.
(1) (a) If the commissioner believes that a controlling producer or any other person has not materially complied with 33-2-1509 through 33-2-1514 or any regulation or order promulgated under 33-2-1509 through 33-2-1514, the commissioner, after notice and opportunity to be heard, may order the controlling producer to cease placing business with the controlled insurer.
(b) If it is found that because of the material noncompliance with 33-2-1509 through 33-2-1514, the controlled insurer or any policyholder of the controlled insurer has suffered any loss or damage, the commissioner may maintain a civil action or intervene in an action brought by or on behalf of the controlled insurer or policyholder for recovery of compensatory damages for the benefit of the controlled insurer or policyholder or other appropriate relief.
(2) The receiver may maintain a civil action for recovery of damages or other appropriate sanctions for the benefit of the insurer if:
(a) an order for liquidation or rehabilitation of the controlled insurer has been entered pursuant to Title 33, chapter 2, part 13;
(b) the receiver appointed under that order believes that the controlling producer or any other person has not materially complied with 33-2-1509 through 33-2-1514 or any regulation or order promulgated under 33-2-1509 through 33-2-1514; and
(c) the controlled insurer suffered any loss or damage from the noncompliance.
(3) This section does not affect the right of the commissioner to impose any other penalties provided for in this title.
(4) This section may not be construed to alter or affect the rights of policyholders, claimants, creditors, or other third parties.
History: En. Sec. 11, Ch. 596, L. 1993.