reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 22. Private Air Ambulance Services › 33-2-2206. Membership agreement -- contents

33-2-2206. Membership agreement -- contents.
A membership agreement issued under this part must contain:
(1) the effective dates of the membership agreement;
(2) a grace period of 30 days for payment of a renewal membership fee;
(3) a description of what constitutes acceptable insurance coverage if eligibility for the membership agreement is conditioned on the member's current and continuing health insurance coverage;
(4) a statement that, except for decisions made as provided in 33-1-102(6), individuals enrolled in medicare, medicaid, or the healthy Montana kids plan under Title 53, chapter 4, part 11, are not subject to charges billed by a private air ambulance service in excess of applicable deductibles, coinsurance, and copayments;
(5) a statement that the membership agreement is an insurance contract;
(6) a description and graphic illustration of the base locations and effective coverage area of the private air ambulance service;
(7) a list of other private air ambulance services with which reciprocity exists under 50-6-320;
(8) a statement that:
(a) participation in a membership program does not guarantee that in the event of a transport, the private air ambulance service will provide the transport; and
(b) unless reciprocity exists under 50-6-320, if another private air ambulance service provides the transport, the individual will not receive the benefits provided under the membership agreement; and
(9) a definition of "medical necessity" if membership coverage of a transport is conditioned on a finding of medical necessity.
History: En. Sec. 6, Ch. 210, L. 2017.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 22. Private Air Ambulance Services › 33-2-2207. Filings

33-2-2207. Filings.
(1) Pursuant to Title 33, chapter 1, part 5, a private air ambulance service subject to this part shall file for approval any membership agreement, including any rider or endorsement.
(2) A filing under subsection (1) must include all fee schedules associated with the membership agreement.
History: En. Sec. 3, Ch. 210, L. 2017.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 22. Private Air Ambulance Services › 33-2-2208. Trade practices

33-2-2208. Trade practices.
(1) A private air ambulance service subject to this part may not use health status as a reason to:
(a) refuse to issue or renew a membership agreement;
(b) assess a differing rate or charge for the membership agreement; or
(c) exclude a specific individual for a membership agreement issued for a household or other group of individuals.
(2) A private air ambulance service subject to this part may not sell, solicit, negotiate, or advertise a membership program in a geographic area for which the private air ambulance does not routinely provide service.
(3) Except as provided in subsection (4)(b), if membership coverage of a transport is conditioned on a finding of medical necessity, a qualified medical professional shall render the determination.
(4) A membership agreement requirement of medical necessity is satisfied if:
(a) the treating physician requesting the transport certifies that the transport is medically necessary; or
(b) the member's insurer determines that the transport is medically necessary.
History: En. Sec. 5, Ch. 210, L. 2017.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 22. Private Air Ambulance Services › 33-2-2211. Recordkeeping requirements

33-2-2211. Recordkeeping requirements.
(1) A private air ambulance service subject to this part shall keep records of:
(a) all insurance transactions conducted in Montana; and
(b) all transports provided to individuals entering into membership agreements.
(2) A private air ambulance service subject to this section shall make the records under subsection (1) available to the commissioner on request.
History: En. Sec. 7, Ch. 210, L. 2017.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 22. Private Air Ambulance Services › 33-2-2212. Relationship to other laws

33-2-2212. Relationship to other laws.
(1) Except as provided in subsection (2), the chapters and provisions of this title do not apply to a private air ambulance service.
(2) Title 33, chapter 1, parts 3, 4, 5, 12, and 13, chapter 18, parts 2 and 10, and chapter 19 as well as this part apply to a private air ambulance service that offers a membership program covering out-of-pocket expenses in excess of deductibles, copays, and coinsurance incurred for out-of-network services using the private air ambulance service or to private air ambulance services that are out-of-network and with which the membership program has reciprocity.
(3) A membership program of the type described in subsection (2) is insurance as defined in 33-1-201.
History: En. Sec. 8, Ch. 210, L. 2017.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 23. Air Ambulance Providers and Insurers › 33-2-2301. Legislative findings and purpose

33-2-2301. Legislative findings and purpose.
(1) The legislature finds that:
(a) air ambulance services provide a necessary, and sometimes lifesaving, means of transporting Montanans experiencing health emergencies;
(b) Montanans desire adequate access to air ambulance services;
(c) in many cases the high charges assessed by out-of-network air ambulance services and limited insurer and health plan reimbursements have resulted in Montanans incurring excessive out-of-pocket expenses; and
(d) the federal Airline Deregulation Act preempts states from enacting any law related to a price, route, or service of an air carrier, which is interpreted as applying to air ambulance services.
(2) The purpose of this part is to prevent Montanans from incurring excessive out-of-pocket expenses in out-of-network air ambulance situations in a manner that is not preempted by the Airline Deregulation Act.
History: En. Sec. 1, Ch. 231, L. 2017.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 23. Air Ambulance Providers and Insurers › 33-2-2303. Disclosures by air ambulance service

33-2-2303. Disclosures by air ambulance service.
An out-of-network nonhospital-controlled air ambulance service must disclose by July 1 of each year any relationships or financial arrangements with health care providers, insurers, or health plans. This includes but is not limited to employment arrangements, ownership interests, first call agreements, and board memberships. This information must be filed with the department of public health and human services and also posted prominently on the commissioner of insurance's website. The air ambulance service must ensure the continued accuracy of this information throughout the year by submitting written updates within 5 days of any changes to the information.
History: En. Sec. 3, Ch. 231, L. 2017.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 23. Air Ambulance Providers and Insurers › 33-2-2304. Independent dispute resolution

33-2-2304. Independent dispute resolution.
(1) If an insurer or health plan and air ambulance service enter into dispute resolution, the procedure in 33-2-2305 is to be used to determine the fair market price of the services that are the subject of the claim.
(2) Payment of the fair market price calculated pursuant to 33-2-2305 constitutes payment in full of the claim.
(3) A determination under this section is not binding on the insurer or health plan and the air ambulance service.
(4) Unless otherwise agreed to by the parties, each party shall:
(a) bear its own attorney fees and costs incurred under the procedure provided in 33-2-2305; and
(b) equally bear all fees and costs of the independent reviewer.
(5) As used in this section, "fair market price" means the value of the services provided as determined by the independent reviewer based on the factors provided in 33-2-2305(6).
History: En. Sec. 4, Ch. 231, L. 2017.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 23. Air Ambulance Providers and Insurers › 33-2-2305. Independent dispute resolution procedure -- exemptions

33-2-2305. Independent dispute resolution procedure -- exemptions.
(1) To initiate a dispute resolution procedure under this part, the parties shall file a written notice of dispute with the insurance commissioner.
(2) Except as provided in subsection (3), within 30 days after the date of receipt of the notice of dispute, and if no independent reviewer is mutually agreed to by the insurer or health plan and air ambulance service under subsection (3), the insurance commissioner shall appoint an independent reviewer having the qualifications listed in 33-2-2306. The insurance commissioner shall select an independent reviewer randomly from a list established under 33-2-2306.
(3) The insurer or health plan and air ambulance provider may by mutual agreement select an independent reviewer. The parties shall notify the insurance commissioner of the mutually agreed independent reviewer prior to the appointment of an independent reviewer under subsection (2).
(4) An independent reviewer's sole substantive determination under this part is the fair market price of the services that are the subject of the claim.
(5) The independent reviewer may make procedural rulings necessary to regulate the proceedings.
(6) The factors to be used in the independent reviewer's determination are:
(a) the training, qualifications, and composition of the air ambulance service personnel;
(b) the fees for rotor wing or fixed wing services originating or provided entirely within the state of Montana that are:
(i) usually charged by the air ambulance service in Montana;
(ii) usually accepted as payment in full by the air ambulance service in Montana;
(iii) usually charged by other air ambulance services doing business in Montana;
(iv) usually accepted as payment in full by other air ambulance services doing business in Montana; and
(v) usually paid by the insurer or health plan for the service provided in Montana;
(c) whether the air ambulance service was provided in a rural or urban context;
(d) the applicable medicare rate of payment for the services that are the subject of the claim; and
(e) any other factors the independent reviewer determines to be relevant in determining fair market price in accordance with established precedent.
(7) Participation in a dispute resolution procedure under 33-2-2304 through 33-2-2306 exempts an insurer from 33-18-201(6) and (8) and 33-18-232(2).
History: En. Sec. 5, Ch. 231, L. 2017.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 23. Air Ambulance Providers and Insurers › 33-2-2306. Insurance commissioner duties -- independent reviewer qualifications

33-2-2306. Insurance commissioner duties -- independent reviewer qualifications.
(1) The insurance commissioner shall:
(a) approve any independent reviewer that is eligible to adjudicate disputes under this part;
(b) maintain a list of independent reviewers eligible to adjudicate disputes under this part;
(c) terminate approval of an independent reviewer and remove the independent reviewer from the list of approved independent reviewers upon determining that an independent reviewer no longer meets the requirements to adjudicate disputes; and
(d) adopt rules necessary to implement this part, including rules regarding discovery and other procedures regarding the dispute resolution process and eligibility of an independent reviewer.
(2) An individual is eligible to be an independent reviewer under this part if the individual is knowledgeable and experienced in applicable principles of contract and insurance law.
(3) In approving an individual as an independent reviewer, the insurance commissioner shall ensure that the individual does not have a conflict of interest that would adversely impact the individual's independence and impartiality in rendering a decision in an independent dispute resolution procedure under 33-2-2304 and 33-2-2305. A conflict of interest includes but is not limited to an ownership or direct familial interest in an insurer, a health care provider, or an air ambulance service that may be involved in an independent dispute resolution procedure under 33-2-2304 and 33-2-2305.
(4) In approving an individual as an independent reviewer, the insurance commissioner may not approve an individual who is currently serving in any matter as a hearing officer for the commissioner.
History: En. Sec. 6, Ch. 231, L. 2017.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 24. Pharmacy Benefit Manager Oversight › 33-2-2401. Short title -- purpose

33-2-2401. Short title -- purpose.
(1) This part may be cited as the "Montana Pharmacy Benefit Manager Oversight Act".
(2) This part establishes the standards and criteria for the licensure and regulation of pharmacy benefit managers that provide claims processing services or other prescription drug or device services for health benefit plans and workers' compensation insurance carriers.
(3) The purpose of this part is to:
(a) promote, preserve, and protect the public health, safety, and welfare through regulation and licensure of pharmacy benefit managers;
(b) provide for powers and duties of the commissioner in licensing and regulating pharmacy benefit managers; and
(c) provide penalties for violations of this part.
History: En. Sec. 1, Ch. 501, L. 2021.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 24. Pharmacy Benefit Manager Oversight › 33-2-2404. Pharmacy benefit manager prohibited practices

33-2-2404. Pharmacy benefit manager prohibited practices.
(1) In any participation contracts between a pharmacy benefit manager and pharmacies, pharmacists, or pharmacy services administrative organizations, a pharmacy or pharmacist may not be prohibited, restricted, or penalized in any way from disclosing to any enrollee or injured worker any information the pharmacy or pharmacist considers appropriate regarding:
(a) the decision of utilization reviewers or similar persons to authorize or deny drug coverage or benefits; and
(b) the process that is used to authorize or deny drug coverage or benefits.
(2) (a) A pharmacy benefit manager contract with a participating pharmacy, pharmacist, or a pharmacy services administrative organization in this state may not prohibit, restrict, or limit disclosure of information to the commissioner when the commissioner is investigating or examining a complaint or conducting a review of a pharmacy benefit manager's compliance with the requirements of this part.
(b) A pharmacy benefit manager may not terminate the contract of or penalize a pharmacy, pharmacist, or a pharmacy services administrative organization for sharing any portion of the pharmacy benefit manager contract with the commissioner for investigation of a complaint or a question regarding whether the contract complies with this part.
(c) Any examination or review under this section must follow the examination procedures and requirements applicable to insurers under Title 33, chapter 1, part 4, including but not limited to the confidentiality provisions of 33-1-409.
History: En. Sec. 4, Ch. 501, L. 2021; amd. Sec. 11, Ch. 157, L. 2023.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 24. Pharmacy Benefit Manager Oversight › 33-2-2405. Marketing and advertising

33-2-2405. Marketing and advertising.
(1) A pharmacy benefit manager may not cause or knowingly permit the use of an advertisement, promotion, solicitation, representation, proposal, or offer that is untrue, deceptive, or misleading.
(2) The commissioner may not review or approve a pharmacy benefit manager's marketing or advertising documents prior to use by the pharmacy benefit manager.
(3) The commissioner shall review complaints related to pharmacy benefit manager marketing and advertising material to determine whether the materials violate the provisions of this section.
History: En. Sec. 5, Ch. 501, L. 2021.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 24. Pharmacy Benefit Manager Oversight › 33-2-2408. Pharmacy benefit manager appeals report

33-2-2408. Pharmacy benefit manager appeals report.
(1) Pharmacy benefit managers shall track, monitor, and report to the commissioner each quarter the following aggregated information related to appeals filed pursuant to 33-22-173:
(a) the number of appeals filed by pharmacies;
(b) whether the appeals were denied or upheld by the pharmacy benefit manager and, if denied, the reasons for the denials;
(c) for each denial, confirmation that the pharmacy benefit manager provided the pharmacy in writing the pricing and other information required under 33-22-173;
(d) the total amount of price adjustments made by the pharmacy benefit manager; and
(e) the average amount of days taken to make price adjustments.
(2) The report must be filed within 30 days of the close of each calendar quarter.
(3) The commissioner may request information required under this section at any time if the commissioner believes the information is reasonably necessary to ensure compliance with this part, 33-22-170 through 33-22-177, and 33-22-180.
History: En. Sec. 8, Ch. 501, L. 2021.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 24. Pharmacy Benefit Manager Oversight › 33-2-2409. Network adequacy

33-2-2409. Network adequacy.
(1) A pharmacy benefit manager shall provide an adequate and accessible pharmacy network for the provision of prescription drugs to ensure reasonable proximity of pharmacies to the businesses or personal residences of enrollees and injured workers.
(2) In determining whether a pharmacy benefit manager has complied with the requirements of this section, consideration must be given to the relative availability of physical pharmacies in a geographic area.
(3) The commissioner shall adopt rules for network adequacy.
History: En. Sec. 9, Ch. 501, L. 2021.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 24. Pharmacy Benefit Manager Oversight › 33-2-2410. Federal 340B drug pricing program

33-2-2410. Federal 340B drug pricing program.
A pharmacy benefit manager or health carrier may not:
(1) prohibit a federally certified health entity or a pharmacy under contract with an entity to provide pharmacy services from participating in the pharmacy benefit manager's or health carrier's provider network;
(2) reimburse a federally certified health entity or a pharmacy under contract with an entity differently than it reimburses other similarly situated pharmacies;
(3) require a claim for a drug to include a modifier to indicate that the drug is a 340B drug unless the claim is for payment, directly or indirectly, by the medicaid program provided for in Title 53, chapter 6, part 1; or
(4) create a restriction or an additional charge on a patient who chooses to receive drugs from a federally certified health entity or a pharmacy under contract with an entity, including but not limited to a patient's inability to fully pay a copayment. (Subsection (3) terminates June 1, 2025--sec. 1, Ch. 259, L. 2023.)
History: En. Sec. 10, Ch. 501, L. 2021.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 24. Pharmacy Benefit Manager Oversight › 33-2-2411. Enforcement -- penalties

33-2-2411. Enforcement -- penalties.
(1) The commissioner shall enforce the provisions of this part, 33-22-170 through 33-22-177, and 33-22-180 and may examine the affairs of a pharmacy benefit manager to determine compliance with the provisions.
(2) Any examination under this section must follow the examination procedures and requirements applicable to insurers under Title 33, chapter 1, part 4, including the confidentiality provisions of 33-1-409.
(3) A pharmacy benefit manager may not be regularly examined under the same time period as required of insurers under 33-1-401 but the commissioner may examine the pharmacy benefit manager at any time if the commissioner believes it is reasonably necessary to ensure compliance with this part.
(4) The commissioner may impose a fine in accordance with 33-1-317 and 33-1-318 for a violation of this part, 33-22-170 through 33-22-177, and 33-22-180.
History: En. Sec. 11, Ch. 501, L. 2021.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 2. Regulation of Insurance Companies › Part 24. Pharmacy Benefit Manager Oversight › 33-2-2412. Rulemaking

33-2-2412. Rulemaking.
The commissioner may adopt rules as necessary to implement the provisions of this part.
History: En. Sec. 12, Ch. 501, L. 2021.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 1. General Provisions › 33-3-101. Scope of chapter

33-3-101. Scope of chapter.
This chapter shall apply only to domestic stock insurers and domestic mutual insurers transacting or proposing to transact insurance on the cash premium or legal reserve plan, except that 33-3-414(2) and 33-3-503 shall also apply to foreign and alien insurers.
History: En. Sec. 418, Ch. 286, L. 1959; R.C.M. 1947, 40-4701.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 1. General Provisions › 33-3-102. Definitions

33-3-102. Definitions.
(1) A "domestic mutual insurer" is an incorporated insurer without capital stock, and the governing body of which is elected by the policyholders.
(2) A "domestic stock insurer" is an incorporated insurer with capital divided into shares and owned by its stockholders.
History: En. Secs. 419, 420, Ch. 286, L. 1959; R.C.M. 1947, 40-4702, 40-4703.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 1. General Provisions › 33-3-103. Applicability of general corporation statutes

33-3-103. Applicability of general corporation statutes.
(1) The applicable laws of this state as to domestic corporations formed for profit shall apply as to domestic stock insurers and domestic mutual insurers except where in conflict with the express provisions of this code and the reasonable implications of such provisions.
(2) Except as provided in part 6 of this chapter, 35-14-1401 through 35-14-1405 apply to the voluntary dissolution of a domestic insurer.
History: En. Sec. 421, Ch. 286, L. 1959; R.C.M. 1947, 40-4704; amd. Sec. 1, Ch. 389, L. 1987; amd. Sec. 188, Ch. 368, L. 1991; amd. Sec. 231, Ch. 271, L. 2019.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 1. General Provisions › 33-3-104. Extinguishment of unused corporate charters

33-3-104. Extinguishment of unused corporate charters.
(1) The corporate charter of any corporation formed under the laws of this state for the purpose of becoming an insurer, and which corporation during any period of 36 consecutive months after January 1, 1961, is not actively engaged in business as a domestic insurer under a certificate of authority issued to it by the commissioner under law currently in force, is automatically hereby extinguished and nullified at the expiration of such 36-month period.
(2) The period during which any such corporation referred to in subsection (1) above is the subject of delinquency proceedings under part 13, chapter 2, of this title shall not be counted as part of any such 36-month period.
History: En. Sec. 467, Ch. 286, L. 1959; R.C.M. 1947, 40-4750(2), (3); amd. Sec. 141, Ch. 575, L. 1981.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 1. General Provisions › 33-3-105. Commissioner's request of biographical information

33-3-105. Commissioner's request of biographical information.
(1) The commissioner may request from domestic insurers biographical information from officers, directors, and persons in a position to control the activity of the following entities:
(a) insurers provided for in Title 33, chapter 3;
(b) farm mutual insurers provided for in Title 33, chapter 4;
(c) reciprocal insurers provided for in Title 33, chapter 5;
(d) health service corporations provided for in Title 33, chapter 30;
(e) health maintenance organizations provided for in Title 33, chapter 31; and
(f) the state fund provided for in Title 39, chapter 71, part 23.
(2) Officers, directors, or other persons in a position to control the activity of the entities listed in subsection (1) shall submit biographical information on a form prescribed by the commissioner.
History: En. Sec. 2, Ch. 227, L. 2001; amd. Sec. 7, Ch. 62, L. 2019.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 2. Formation › 33-3-202. Articles of incorporation -- approval

33-3-202. Articles of incorporation -- approval.
(1) The incorporators of a proposed domestic insurer shall deliver an electronic copy of the proposed articles of incorporation to the commissioner. The commissioner shall examine the proposed articles of incorporation. If the commissioner finds that the articles comply with this chapter and are not in conflict with the constitution and laws of the United States or of this state, the commissioner shall approve the articles. However, if the commissioner finds that the proposed insurer would not be eligible for a certificate of authority under 33-2-112, the commissioner shall refuse to approve the articles of incorporation and shall provide in writing the reasons for the refusal. The commissioner shall forward the approved articles and the applicable fees to the secretary of state.
(2) If the commissioner finds that the proposed articles of incorporation do not comply with law, the commissioner shall refuse to approve the proposed articles of incorporation and shall provide a written statement of the reasons for the refusal.
(3) The corporation has legal existence as a corporation upon the issuance of the certificate of incorporation by the secretary of state, but the corporation may not transact business as an insurer until it has qualified for and received from the commissioner a certificate of authority as provided in this title.
(4) A copy of the certificate of incorporation, certified by the secretary of state, is admissible in all the courts of this state as prima facie evidence of proper incorporation.
History: En. Sec. 423, Ch. 286, L. 1959; R.C.M. 1947, 40-4706; amd. Sec. 1, Ch. 373, L. 1983; amd. Sec. 5, Ch. 316, L. 1999; amd. Sec. 17, Ch. 472, L. 1999; amd. Sec. 8, Ch. 62, L. 2019; amd. Sec. 4, Ch. 117, L. 2019.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 2. Formation › 33-3-203. Amendment of articles of incorporation -- grounds for disapproval

33-3-203. Amendment of articles of incorporation -- grounds for disapproval.
(1) A domestic stock insurer may amend its articles of incorporation for any lawful purpose by written authorization of the holders of a majority of the voting power of its outstanding capital stock or by affirmative vote of a majority voting at a lawful meeting of stockholders of which the notice given to stockholders included notice of the proposal to amend.
(2) A domestic mutual insurer may amend its articles of incorporation for any lawful purpose by affirmative vote of a majority of those of its members present or represented by proxy at a lawful meeting of its members of which the notice given members included notice of the proposal to amend.
(3) Upon adoption of an amendment, the insurer shall set forth the amendment and the date and manner of the amendment's adoption in articles of amendment. The articles of amendment must be executed by the insurer's president or vice president and secretary or assistant secretary and acknowledged by them before an officer authorized by law to take acknowledgments of deeds. The insurer shall deliver to the commissioner the articles of amendment. If the commissioner finds that the articles of amendment and the amendment comply with law, the amendment must be approved. The amendment is effective when it has been filed with the secretary of state.
(4) If the commissioner finds that the proposed amendment or the articles of amendment do not comply with the law, the commissioner may not approve the amendment or the articles of amendment and shall provide a written statement of reasons for nonapproval. The filing fee is not returnable.
(5) If an amendment of articles of incorporation would reduce the authorized capital stock of a stock insurer below the amount then outstanding, the commissioner may not approve the amendment if the commissioner has reason to believe that the interests of policyholders or creditors of the insurer would be materially prejudiced by the reduction. If a reduction of capital stock is realized, the insurer may require the return of the original certificates of stock held by each stockholder for exchange for new certificates for the number of shares as the stockholder is then entitled in the proportion that the reduced capital bears to the amount of capital stock outstanding as of immediately prior to the effective date of the reduction.
History: En. Sec. 424, Ch. 286, L. 1959; R.C.M. 1947, 40-4707; amd. Sec. 6, Ch. 316, L. 1999; amd. Sec. 29, Ch. 227, L. 2001; amd. Sec. 5, Ch. 117, L. 2019.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 2. Formation › 33-3-204. Initial qualifications -- domestic mutuals

33-3-204. Initial qualifications -- domestic mutuals.
(1) When newly organized, a domestic mutual insurer may be authorized to transact any of the kinds of insurance as are permitted under 33-2-108.
(2) When applying for an original certificate of authority, the insurer must be otherwise qualified therefor under this code and must have unimpaired surplus funds in an amount not less than the amount of paid-in capital stock required of a domestic stock insurer transacting like kinds of insurance as in 33-2-109, subject further to the additional special surplus requirements of 33-2-110 applicable to such stock insurer. The minimum amount of surplus must thereafter be maintained unimpaired and placed on deposit with the commissioner. The deposit is subject to the provisions of chapter 2, part 6, of this title and 33-2-111.
History: En. Sec. 425, Ch. 286, L. 1959; R.C.M. 1947, 40-4708; amd. Sec. 10, Ch. 303, L. 1981.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 2. Formation › 33-3-205. Formation of mutual insurer -- bond

33-3-205. Formation of mutual insurer -- bond.
(1) Before soliciting applications for insurance to raise surplus funds to qualify for the original certificate of authority, the incorporators of the proposed insurer shall file with the commissioner a corporate surety bond in the penalty of $50,000, in favor of the state and for the use and benefit of the state and of applicant members and creditors of the corporation. The bond shall be conditioned as follows:
(a) for the prompt return to applicant members of all premiums collected in advance;
(b) for payment of all indebtedness of the corporation; and
(c) for payment of costs incurred by the state in event of any legal proceedings for liquidation or dissolution of the corporation, all in the event the corporation fails to complete its organization and secure a certificate of authority within 1 year after the date of its certificate of incorporation.
(2) In lieu of such bond, the incorporators may deposit with the commissioner $50,000 in cash or United States government bonds, negotiable and payable to the bearer, with a market value at all times of not less than $50,000, to be held in trust upon the same conditions as required for the bond.
(3) Any such bond filed or deposit or remaining portion thereof held under this section shall be released and discharged upon settlement and termination of all liabilities against it.
History: En. Sec. 426, Ch. 286, L. 1959; R.C.M. 1947, 40-4709; amd. Sec. 11, Ch. 303, L. 1981.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 2. Formation › 33-3-206. Applications for insurance in formation of mutual insurer

33-3-206. Applications for insurance in formation of mutual insurer.
(1) Upon receipt of the commissioner's approval of the bond or deposit as provided in 33-3-205, the directors and officers of the proposed domestic mutual insurer may commence solicitation of such requisite applications for insurance policies as they may accept and may receive deposits of premiums thereon.
(2) All such applications shall be in writing signed by the applicant, covering subjects of insurance resident, located, or to be performed in this state.
(3) All such applications shall provide that:
(a) issuance of the policy is contingent upon the insurer qualifying for and receiving a certificate of authority;
(b) no insurance is in effect unless and until the certificate of authority has been issued; and
(c) the prepaid premium or deposit and membership or policy fee, if any, shall be refunded in full to the applicant if organization is not completed and the certificate of authority is not issued and received by the insurer before a specified reasonable date, which date shall be not later than 1 year after the date of the certificate of incorporation.
(4) All qualifying premiums collected shall be in cash.
(5) Solicitation for such qualifying applicants for insurance shall be by licensed insurance producers of the corporation, and the commissioner shall, upon the corporation's application therefor, issue temporary insurance producer's licenses expiring on the date specified pursuant to subsection(3)(c) above to individuals qualified as for a resident insurance producer's license except as to the taking or passing of an examination. The commissioner may suspend or revoke any such license for any of the causes and pursuant to the same procedures as are applicable to suspension or revocation of licenses of insurance producers in general under chapter 17.
History: En. Sec. 427, Ch. 286, L. 1959; R.C.M. 1947, 40-4710; amd. Sec. 1, Ch. 713, L. 1989.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 2. Formation › 33-3-207. Formation of mutuals -- trust deposit of premiums -- issuance of policies

33-3-207. Formation of mutuals -- trust deposit of premiums -- issuance of policies.
(1) All sums collected by a domestic mutual corporation as premiums or fees on qualifying applications for insurance therein shall be deposited in trust in a bank or trust company in this state under a written trust agreement consistent with this section and with 33-3-206(3)(c). The corporation shall file an executed copy of such trust agreement with the commissioner.
(2) Upon issuance to the corporation of a certificate of authority as an insurer for the kind of insurance for which such applications were solicited, all funds so held in trust shall become the funds of the insurer, and the insurer shall thereafter in due course issue and deliver its policies for which premiums had been paid and accepted. The insurance provided by such policies shall be effective as of the date of the certificate of authority or thereafter as provided by the respective policies.
History: En. Sec. 428, Ch. 286, L. 1959; R.C.M. 1947, 40-4711.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 2. Formation › 33-3-208. Formation of mutuals -- failure to qualify

33-3-208. Formation of mutuals -- failure to qualify.
If the proposed domestic insurer fails to complete its organization and to secure its original certificate of authority within 1 year after the date of its certificate of incorporation, its corporate powers shall cease and the commissioner shall return or cause to be returned to the persons entitled thereto all advance deposits or payments of premiums held in trust under 33-3-207.
History: En. Sec. 429, Ch. 286, L. 1959; R.C.M. 1947, 40-4712.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 2. Formation › 33-3-215. Mutualization of stock insurer

33-3-215. Mutualization of stock insurer.
(1) A stock insurer other than a title insurer may become a mutual insurer under a plan and procedure approved by the commissioner after a hearing thereon.
(2) The commissioner shall not approve any plan, procedure, or mutualization unless:
(a) it is equitable to stockholders and policyholders;
(b) it is subject to approval by the holders of not less than three-fourths of the insurer's outstanding capital stock having voting rights and by not less than two-thirds of the insurer's policyholders who vote on such plan in person, by proxy, or by mail pursuant to such notice and procedure as may be approved by the commissioner;
(c) if a life insurer, the right to vote thereon is limited to holders of policies other than term or group policies and whose policies have been in force for more than 1 year;
(d) mutualization will result in retirement of shares of the insurer's capital stock at a price not in excess of the fair market value thereof as determined by competent disinterested appraisers;
(e) the plan provides for the purchase of the shares of any nonconsenting stockholder in the same manner and subject to the same applicable conditions as provided by Title 35, chapter 14, part 13, as to rights of nonconsenting stockholders, with respect to consolidation or merger of private corporations;
(f) the plan provides for definite conditions to be fulfilled by a designated early date upon which such mutualization will be deemed effective; and
(g) the mutualization leaves the insurer with surplus funds reasonably adequate for the security of its policyholders and to enable it to continue successfully in business in the states in which it is then authorized to transact insurance and for the kinds of insurance included in its certificates of authority in such states.
(3) This section shall not apply to mutualization under order of court pursuant to rehabilitation or reorganization of an insurer under chapter 2, part 13.
History: En. Sec. 460, Ch. 286, L. 1959; R.C.M. 1947, 40-4743; amd. Sec. 13, Ch. 198, L. 1979; amd. Sec. 141, Ch. 575, L. 1981; amd. Sec. 232, Ch. 271, L. 2019.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 2. Formation › 33-3-216. Converting mutual insurer to stock insurer

33-3-216. Converting mutual insurer to stock insurer.
(1) A mutual insurer may become a stock insurer under a plan and procedure as may be approved by the commissioner after a hearing.
(2) The commissioner may not approve any plan or procedure unless:
(a) it is equitable to the insurer's members;
(b) it is subject to approval by vote of not less than three-fourths of the insurer's current members voting on the plan or procedure in person, by proxy, or by mail at a meeting of members called for the purpose pursuant to reasonable notice and procedure that may be approved by the commissioner. If the insurer is a life insurer, the right to vote may be limited to members who hold policies other than term or group policies and whose policies have been in force for not less than 1 year.
(c) the equity of each policyholder in the insurer is determinable under a fair formula approved by the commissioner, which equity must be based upon not less than the insurer's entire surplus, after deducting contributed or borrowed surplus funds, plus a reasonable present equity in its reserves and in all nonadmitted assets;
(d) the policyholders entitled to participate in the purchase of stock or distribution of assets must include all current policyholders and all existing persons who had been policyholders of the insurer within 3 years prior to the date the plan was submitted to the commissioner;
(e) the plan gives to each policyholder of the insurer, as specified in subsection (2)(d), a preemptive right to acquire the policyholder's proportionate part of all of the proposed capital stock of the insurer, within a designated reasonable period, and to apply upon the purchase of the stock the amount of the policyholder's equity in the insurer as determined under subsection (2)(c);
(f) shares are offered to policyholders at a price not greater than the price to be offered to others but at not more than double the par value of the shares;
(g) the plan provides for payment to each policyholder not electing to apply the policyholder's equity in the insurer for or upon the purchase price of stock to which preemptively entitled of cash in the amount of not less than 50% of the amount of the equity not used for the purchase of stock, and which cash payment together with stock purchased, if any, constitutes full payment and discharge of the policyholder's equity as an owner of the mutual insurer; and
(h) the plan, when completed, would provide for the converted insurer paid-in capital stock in an amount not less than the minimum paid-in capital required of a domestic stock insurer transacting like kinds of insurance, together with surplus funds in amount not less than one-half of the required capital.
History: En. Sec. 461, Ch. 286, L. 1959; R.C.M. 1947, 40-4744; amd. Sec. 1132, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 2. Formation › 33-3-218. Mergers and consolidations of mutual insurers

33-3-218. Mergers and consolidations of mutual insurers.
(1) A domestic mutual insurer may not merge or consolidate with a stock insurer.
(2) A domestic mutual insurer may merge or consolidate with another mutual insurer under the applicable procedures prescribed by the statutes of this state applying to corporations formed for profit, except as provided in this section.
(3) The plan and agreement for merger or consolidation must be submitted to and approved by at least two-thirds of the members of each mutual insurer involved by voting on the issue at meetings called for the purpose pursuant to reasonable notice and procedure that has been approved by the commissioner. If the insurer is a life insurer, the right to vote may be limited to members whose policies are other than term and group policies and have been in effect for more than 1 year.
(4) A merger or consolidation may not be effectuated unless in advance of the merger or consolidation the plan and agreement for the merger or consolidation have been filed with the commissioner and approved by the commissioner after a hearing. The commissioner shall give approval within a reasonable time after the filing unless the commissioner finds that the plan or agreement:
(a) is inequitable to the policyholders of any domestic insurer involved; or
(b) would substantially reduce the security of and service to be rendered to policyholders of the domestic insurer in this state and elsewhere.
(5) If the commissioner does not approve the plan or agreement, the commissioner shall notify the insurers in writing specifying the reasons for disapproval.
(6) Section 33-3-217(5) also applies to mergers and consolidations of mutual insurers.
(7) Upon merger or consolidation of a domestic insurer with another insurer under this chapter, the corporate charter of the merged or consolidated domestic insurer must automatically be extinguished and nullified.
History: En. Secs. 463, 467, Ch. 286, L. 1959; R.C.M. 1947, 40-4746, 40-4750(4); amd. Sec. 1134, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 3. Domestic Stock and Mutual Insurers › Part 3. Management › 33-3-301. Bylaws of mutual

33-3-301. Bylaws of mutual.
(1) A domestic mutual insurer must have bylaws for the governing of its affairs. The initial board of directors of the insurer shall adopt original bylaws, subject to the approval of the insurer's members at the next meeting. The members have the power to make, modify, and revoke bylaws.
(2) The bylaws must provide:
(a) that each member is entitled to one vote upon each matter coming to a vote at meetings of members or to more votes in accordance with a reasonable classification of members as set forth in the bylaws and based upon the amount of insurance in force, upon the number of policies held or the amount of the premiums paid by the member, or upon other reasonable factors. A member has the right to vote in person or by written proxy. A proxy may not be irrevocable or for longer than a reasonable period of time.
(b) for election of directors by the members and the number, qualifications, terms of office, and powers of directors;
(c) the time, notice, quorum, and conduct of annual and special meetings of members and voting at the meetings. The bylaws may provide that the annual meeting must be held at a place, date, and time to be set forth in the policy and without giving other notice of the meeting.
(d) the number, designation, election, terms, and powers and duties of the respective corporate officers;
(e) for deposit, custody, disbursement, and accounting as to corporate funds;
(f) for any other reasonable provisions customary, necessary, or convenient for the management or regulation of its corporate affairs.
(3) A provision in the bylaws for determining a quorum of members at any meeting of less than a majority of all the insurer's members is not effective unless approved by the commissioner. This subsection may not affect any other provision of law requiring the vote of a larger percentage of members for a specified purpose.
(4) The insurer shall promptly file with the commissioner a copy, certified by the insurer's secretary, of its bylaws and of every modification of or addition to the bylaws. The commissioner shall disapprove any bylaw provision that the commissioner considers unlawful, unreasonable, inadequate, unfair, or detrimental to the proper interests or protection of the insurer's members or any class of members. The insurer may not, after receiving written notice of the disapproval and during the existence of the disapproval, effectuate any bylaw provision disapproved.
History: En. Sec. 432, Ch. 286, L. 1959; R.C.M. 1947, 40-4715; amd. Sec. 1135, Ch. 56, L. 2009.