reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 1. Casualty and Property Insurance Guaranty Associations › 33-10-115. Recovery -- sequence -- nonduplication

33-10-115. Recovery -- sequence -- nonduplication.
(1) Any person having a claim against an insurer under any provision in an insurance policy other than a policy of an insolvent insurer that is also a covered claim must be required to exhaust the person's right under the policy. Any amount payable on a covered claim under this part must be reduced by the amount of any recovery under the insurance policy.
(2) Any person having a claim that may be recovered under more than one insurance guaranty association or its equivalent shall seek recovery first from the association of the place of residence of the insured, except that if it is a first party claim for damage to property with a permanent location, the person shall seek recovery first from the association of the location of the property, and if it is a workers' compensation claim, the person shall seek recovery first from the association of the residence of the claimant. Any recovery under this part must be reduced by the amount of recovery from any other insurance guaranty association or its equivalent.
History: En. Sec. 12, Ch. 63, L. 1971; R.C.M. 1947, 40-5712; amd. Sec. 1179, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 1. Casualty and Property Insurance Guaranty Associations › 33-10-116. Assessment

33-10-116. Assessment.
(1) The association shall assess insurers amounts necessary to pay the obligations of the association under 33-10-105(1)(a) subsequent to an insolvency, the expenses of handling covered claims subsequent to an insolvency, the cost of examinations under 33-10-108, and other expenses authorized by this part.
(2) The assessments of each member insurer shall be in the proportion that the net direct written premiums of the member insurer for the preceding calendar year bear to the net direct written premiums of all member insurers for the preceding calendar year. Each member insurer shall be notified of the assessment not later than 30 days before it is due. No member insurer may be assessed in any year an amount greater than 2% of that member insurer's net direct written premiums for the preceding calendar year.
(3) If the maximum assessment together with the other assets of the association does not provide in any one year an amount sufficient to make all necessary payments, the funds available shall be prorated and the unpaid portion shall be paid as soon thereafter as funds become available.
(4) The association may exempt or defer, in whole or in part, the assessment of any member insurer, if the assessment would cause the member insurer's financial statement to reflect amounts of capital or surplus less than the minimum amounts required for a certificate of authority by any jurisdiction in which the member insurer is authorized to transact insurance.
(5) Each member insurer may set off against any assessment authorized payments made on covered claims and expenses incurred in the payment of such claims by the member insurer.
History: En. Sec. 8, Ch. 63, L. 1971; R.C.M. 1947, 40-5708(1)(c).
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 1. Casualty and Property Insurance Guaranty Associations › 33-10-117. Recognition of assessments in rates

33-10-117. Recognition of assessments in rates.
The rates and premiums charged for insurance policies to which this part applies shall include amounts sufficient to recoup a sum equal to the amounts paid to the association by the member insurer less any amounts returned to the member insurer by the association, and such rates shall not be deemed excessive because they contain an amount reasonably calculated to recoup assessments paid by the member insurer.
History: En. Sec. 16, Ch. 63, L. 1971; R.C.M. 1947, 40-5716.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-201. Short title, purpose, and construction

33-10-201. Short title, purpose, and construction.
(1) This part may be cited as the "Montana Life and Health Insurance Guaranty Association Act".
(2) The purpose of this part is to protect policyowners, insureds, beneficiaries, annuitants, payees, and assignees of life insurance policies, health insurance policies, annuity contracts, and supplemental contracts, subject to certain limitations, against failure in the performance of contractual obligations due to the impairment or insolvency of the insurer issuing the policies or contracts.
(3) To provide this protection:
(a) an association of insurers is created to enable the guaranty of payment of benefits and of continuation of coverages;
(b) members of the association are subject to assessment to provide funds to carry out the purpose of this part; and
(c) the association is authorized to assist the commissioner, in the prescribed manner, in the detection and prevention of insurer impairments or insolvencies.
(4) This part must be liberally construed to effect the purpose under subsections (2) and (3), which constitute an aid and guide to interpretation.
(5) This part may not be construed to reduce the liability for unpaid assessments of the insureds of an impaired or insolvent insurer operating under a plan with assessment liability.
History: En. 40-5801 thru 40-5804, 40-5814 by Secs. 1 thru 4, 14, Ch. 245, L. 1974; R.C.M. 1947, 40-5801, 40-5802, 40-5803, 40-5804, 40-5814(1); amd. Sec. 1, Ch. 576, L. 1987; amd. Sec. 56, Ch. 596, L. 1993; amd. Sec. 39, Ch. 379, L. 1995; amd. Sec. 3, Ch. 195, L. 2003; amd. Sec. 1, Ch. 27, L. 2011.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-203. Creation of association -- accounts -- supervision by commissioner

33-10-203. Creation of association -- accounts -- supervision by commissioner.
(1) There is created a nonprofit legal entity to be known as the Montana life and health insurance guaranty association. A member insurer must be and remain a member of the association as a condition of the member's authority to transact insurance in this state. The association shall perform functions under the plan of operation established and approved under 33-10-216 and shall exercise powers through a board of directors established under 33-10-204.
(2) For purposes of administration and assessment, the association shall maintain two accounts:
(a) the health insurance account; and
(b) the life insurance and annuity account that includes the following subaccounts:
(i) the life insurance account;
(ii) the annuity account that includes contracts owned by a governmental retirement plan or the plan's trustee established under section 401, 403(b), or 457 of the Internal Revenue Code, but does not otherwise include unallocated annuities; and
(iii) the unallocated annuity account that must exclude unallocated annuity contracts owned by a governmental retirement benefit plan or the plan's trustee established under section 401, 403(b), or 457 of the Internal Revenue Code.
(3) The association is under the immediate supervision of the commissioner and is subject to the applicable provisions of the insurance laws of this state.
History: En. 40-5806 by Sec. 6, Ch. 245, L. 1974; R.C.M. 1947, 40-5806; amd. Sec. 58, Ch. 596, L. 1993; amd. Sec. 5, Ch. 195, L. 2003; amd. Sec. 9, Ch. 469, L. 2005.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-204. Board of directors -- commissioner approval -- compensation

33-10-204. Board of directors -- commissioner approval -- compensation.
(1) The board of directors of the association consists of not less than seven or more than nine members serving terms as established in the plan of operation. Two of the members must be appointed from the public at large by the commissioner. The other members of the board must be selected by member insurers subject to the approval of the commissioner. Vacancies on the board must be filled for the remaining period of the term in the manner described in the plan of operation. In approving selections or in appointing members to the board, the commissioner shall consider, among other things, whether all member insurers are fairly represented.
(2) Members of the board may be reimbursed from the assets of the association for expenses incurred by them as members of the board of directors, but members of the board may not otherwise be compensated by the association for their services. However, any designated representatives of members of the board who are not full-time employees of the member insurers that designated them may receive reasonable compensation for their services on the board of directors upon annual approval by the members of the association.
History: En. 40-5807 by Sec. 7, Ch. 245, L. 1974; R.C.M. 1947, 40-5807(part); amd. Sec. 3, Ch. 576, L. 1987; amd. Sec. 2, Ch. 65, L. 1995; amd. Sec. 15, Ch. 157, L. 2023.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-206. Records of meetings and negotiations

33-10-206. Records of meetings and negotiations.
Records must be kept of all negotiations and meetings of the board of directors held to discuss the activities of the association in carrying out its powers and duties under this part. Records of negotiations or meetings pertaining to an impaired or insolvent insurer may be made public only upon the termination of a liquidation, rehabilitation, or supervision proceeding involving the impaired or insolvent insurer, upon the termination of the impairment or insolvency of the insurer, or upon the order of a court of competent jurisdiction. This section does not limit the duty of the association to render a report of its activities under 33-10-209.
History: En. 40-5814 by Sec. 14, Ch. 245, L. 1974; R.C.M. 1947, 40-5814(2); amd. Sec. 140, Ch. 575, L. 1981; amd. Sec. 7, Ch. 195, L. 2003.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-207. Immunity

33-10-207. Immunity.
There is not any liability on the part of and a cause of action of any nature may not be brought against any member insurer or its agents or employees, the association or the association's agents or employees, members of the board of directors, or the commissioner or the commissioner's representatives for any action taken by them in the performance of their powers and duties under this part.
History: En. 40-5818 by Sec. 18, Ch. 245, L. 1974; R.C.M. 1947, 40-5818; amd. Sec. 1, Ch. 713, L. 1989; amd. Sec. 8, Ch. 195, L. 2003; amd. Sec. 18, Ch. 380, L. 2003.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-208. Tax exemptions

33-10-208. Tax exemptions.
The association shall be exempt from payment of all fees and all taxes levied by this state or any of its subdivisions except taxes levied on real property.
History: En. 40-5816 by Sec. 16, Ch. 245, L. 1974; R.C.M. 1947, 40-5816.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-209. Examination of the association -- annual report

33-10-209. Examination of the association -- annual report.
The association shall be subject to examination and regulation by the commissioner. The board of directors shall submit to the commissioner, not later than May 1 of each year, a financial report for the preceding calendar year in a form approved by the commissioner and a report of its activities during the preceding calendar year.
History: En. 40-5815 by Sec. 15, Ch. 245, L. 1974; R.C.M. 1947, 40-5815.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-210. Unfair trade practice -- notice to policyowners

33-10-210. Unfair trade practice -- notice to policyowners.
(1) It is a prohibited unfair trade practice for any person to make use in any manner of the protection afforded by this part in the sale of insurance.
(2) The association shall prepare a summary document, complying with subsection (3) and describing the general purposes and current limitations of this part. The document must be submitted to the commissioner for approval. Sixty days after receiving approval, a member insurer may not deliver a policy or contract described in 33-10-224(2)(a) to a policyowner or contract owner unless the document is delivered to the policyowner or contract owner prior to or at the time of delivery of the policy or contract. The document must be available upon request by a policyowner. The distribution, delivery, contents, or interpretation of this document does not mean that either the policy or the contract or the owner of the policy or contract would be covered in the event of the impairment or insolvency of a member insurer. The description document must be revised by the association as amendments to this part may require. Failure to receive this document does not give the policyowner, contract owner, certificate holder, or insured any greater rights than those stated in this part.
(3) The document prepared under subsection (2) must contain a clear and conspicuous disclaimer on its face. The commissioner shall promulgate a rule establishing the form and content of the disclaimer. The disclaimer must:
(a) state the name and address of the life and health insurance guaranty association and insurance department;
(b) prominently warn the policyowner or contract owner that the life and health insurance guaranty association may not cover the policy or, if coverage is available, it will be subject to substantial limitations and exclusions and conditioned on continued residence in the state;
(c) state that the insurer and its insurance producers are prohibited by law from using the existence of the life and health insurance guaranty association for the purpose of sales, solicitation, or inducement to purchase any form of insurance;
(d) emphasize that the policyowner or contract owner should not rely on coverage under the life and health insurance guaranty association when selecting an insurer;
(e) provide other information as directed by the commissioner.
History: En. 40-5814 by Sec. 14, Ch. 245, L. 1974; R.C.M. 1947, 40-5814(5); amd. Sec. 59, Ch. 596, L. 1993; amd. Sec. 9, Ch. 195, L. 2003; amd. Sec. 4, Ch. 27, L. 2011; amd. Sec. 3, Ch. 25, L. 2019.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-215. Duties and powers of commissioner

33-10-215. Duties and powers of commissioner.
(1) In addition to the duties and powers enumerated elsewhere in this part, the commissioner shall:
(a) notify the board of directors of the existence of an impaired or insolvent insurer after an order of impairment or insolvency is entered or the commissioner receives notice of impairment or insolvency;
(b) upon request of the board of directors, provide the association with a statement of the premiums in the appropriate states for each member insurer;
(c) when an impairment or insolvency is declared and the amount of the impairment or insolvency is determined, serve a demand upon the impaired or insolvent insurer to make good the impairment or insolvency within a reasonable time. Notice to the impaired or insolvent insurer constitutes notice to its shareholders, if any. The failure of the insurer to promptly comply with the demand does not excuse the association from the performance of its powers and duties under this part.
(2) The commissioner may suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any member insurer that fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the commissioner may levy a fine on any member insurer that fails to pay an assessment when due. The fine may not exceed 5% of the unpaid assessment per month, except that the fine may not be less than $100 per month.
(3) A final action of the board of directors may be appealed to the commissioner by a member insurer if the appeal is taken within 60 days of the member insurer's receipt of notice of the final action being appealed. A final action or order of the commissioner is subject to judicial review in a court of competent jurisdiction in accordance with the laws of this state that apply to the actions or orders of the commissioner.
(4) The liquidator, rehabilitator, or conservator of an impaired or insolvent insurer may notify all affected persons of the effect of this part.
History: En. 40-5811 by Sec. 11, Ch. 245, L. 1974; R.C.M. 1947, 40-5811(1); amd. Sec. 10, Ch. 195, L. 2003; amd. Sec. 4, Ch. 25, L. 2019.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-218. Examination by commissioner -- cost

33-10-218. Examination by commissioner -- cost.
(1) The commissioner may conduct the examination requested by the board pursuant to 33-10-217(4). The examination may be conducted as a national association of insurance commissioners examination or may be conducted by persons whom the commissioner designates. The cost of the examination must be paid by the association, and the examination report must be treated as are other examination reports.
(2) The examination report may not be released to the board of directors of the association prior to its release to the public, but this may not excuse the commissioner from the obligation to comply with subsection (4). The commissioner shall notify the board of directors when the examination is completed.
(3) The request for an examination must be kept on file by the commissioner, but it may not be open to public inspection prior to the release of the examination report to the public and must be released at that time only if the examination discloses that the examined insurer is unable or potentially unable to meet its contractual obligations.
(4) The commissioner shall report to the board of directors when the commissioner has reasonable cause to believe that any member insurer examined at the request of the board of directors may be unable or potentially unable to fulfill its contractual obligations.
History: En. 40-5812 by Sec. 12, Ch. 245, L. 1974; R.C.M. 1947, 40-5812(part); amd. Sec. 61, Ch. 596, L. 1993.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-219. Repealed

33-10-219. Repealed.
Sec. 13, Ch. 27, L. 2011.
History: En. 40-5808 by Sec. 8, Ch. 245, L. 1974; R.C.M. 1947, 40-5808(1), (2); amd. Sec. 140, Ch. 575, L. 1981; amd. Sec. 4, Ch. 576, L. 1987; amd. Sec. 12, Ch. 195, L. 2003.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-220. Repealed

33-10-220. Repealed.
Sec. 13, Ch. 27, L. 2011.
History: En. 40-5808 by Sec. 8, Ch. 245, L. 1974; R.C.M. 1947, 40-5808(3) thru (6); amd. Sec. 140, Ch. 575, L. 1981; amd. Sec. 5, Ch. 576, L. 1987; amd. Sec. 13, Ch. 195, L. 2003.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-221. Nomination of liquidator by association -- notification given by liquidator

33-10-221. Nomination of liquidator by association -- notification given by liquidator.
(1) The association may recommend an individual to serve as a special deputy to act for the commissioner and under the commissioner's supervision in the liquidation, rehabilitation, or supervision of any member insurer.
(2) The liquidator, rehabilitator, or supervisor of any impaired or insolvent insurer may notify all interested persons of the effect of this part.
History: En. 40-5811, 40-5813 by Secs. 11, 13, Ch. 245, L. 1974; R.C.M. 1947, 40-5811(4), 40-5813; amd. Sec. 140, Ch. 575, L. 1981; amd. Sec. 14, Ch. 195, L. 2003.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-222. Stay of proceedings -- reopening default judgments

33-10-222. Stay of proceedings -- reopening default judgments.
(1) All proceedings in which the insolvent insurer is a party in any court in this state must be stayed 180 days from the date an order of liquidation, rehabilitation, or supervision is final to permit proper legal action by the association on any matters germane to its powers or duties.
(2) As to a judgment under any decision, order, verdict, or finding based on default, the association may apply to have the judgment set aside by the same court that made the judgment and must be permitted to defend against the suit on the merits.
History: En. 40-5819 by Sec. 19, Ch. 245, L. 1974; R.C.M. 1947, 40-5819; amd. Sec. 140, Ch. 575, L. 1981; amd. Sec. 15, Ch. 195, L. 2003; amd. Sec. 7, Ch. 27, L. 2011.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-223. Assignment by beneficiaries -- subrogation

33-10-223. Assignment by beneficiaries -- subrogation.
(1) Any person receiving benefits under this part must be considered to have assigned the person's rights under the covered policy or contract, pertaining to any causes of action against the person for losses resulting from or otherwise relating to the covered policy or contract, to the association to the extent of the benefits received because of this part whether the benefits are payments of contractual obligations or continuation of coverage or provision of substitute or alternative coverage. The association may require an assignment to it of the rights by any payee, policyowner or contract owner, beneficiary, insured, or annuitant as a condition precedent to the receipt of any rights or benefits conferred by this part upon the person. The association must be subrogated to these rights against the assets of any impaired or insolvent insurer.
(2) The subrogation rights of the association under this section have the same priority against the assets of the impaired or insolvent insurer as that possessed by the person entitled to receive benefits under this part.
(3) In addition to the rights detailed in this section, the association has all common-law rights of subrogation and any other equitable or legal remedy that would have been available to the impaired or insolvent insurer or owner, beneficiary, or payee of a policy or contract with respect to the policy or contract, including without limitation, in the case of a structured settlement annuity, any rights of the owner, beneficiary, or payee of the annuity, to the extent of benefits received pursuant to this part, against a person originally or by succession responsible for the losses arising from the personal injury relating to the annuity or payment for the annuity, except for any person responsible solely by reason of serving as an assignee with respect to a qualified assignment under section 130 of the Internal Revenue Code.
(4) If subsections (1) through (3) are invalid or ineffective with respect to any person or claim for any reason, the amount payable by the association with respect to the related covered obligations must be reduced by the amount realized by any other person with respect to the person or claim that is attributable to the policy or a portion of the policy covered by the association.
(5) If the association has provided benefits with respect to a covered obligation and a person recovers any amount to which the association has rights as described in this section, the person shall pay to the association the portion of the recovery attributable to the policy or a portion of the policy covered by the association.
History: En. 40-5808 by Sec. 8, Ch. 245, L. 1974; R.C.M. 1947, 40-5808(9); amd. Sec. 16, Ch. 195, L. 2003; amd. Sec. 8, Ch. 27, L. 2011.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-225. Association as creditor -- use of assets

33-10-225. Association as creditor -- use of assets.
(1) For the purpose of carrying out its obligations under this part, the association is a creditor of the impaired or insolvent insurer to the extent of assets attributable to covered policies reduced by any amounts to which the association is entitled as subrogee pursuant to 33-10-223.
(2) All assets of the impaired or insolvent insurer attributable to covered policies must be used to continue all covered policies and pay all contractual obligations of the impaired or insolvent insurer as required by this part. Assets attributable to covered policies, as used in this section, is that proportion of the assets which the reserves that should have been established for such policies bear to the reserve that should have been established for all policies of insurance written by the impaired or insolvent insurer.
(3) As a creditor of the impaired or insolvent insurer, as established in this part and consistent with 33-2-1363, the association and other similar associations are entitled to receive a disbursement of assets out of the marshalled assets, from time to time as the assets become available to reimburse it, as a credit against contractual obligations under this part. If, within 120 days of the receivership court issuing a final determination of insolvency of an insurer, the liquidator has not made an application to the court for the approval of a proposal to disburse assets out of marshalled assets to guaranty associations having obligations because of the insolvency, then the association may make application to the receivership court for approval of its own proposal to disburse those assets.
History: En. 40-5814 by Sec. 14, Ch. 245, L. 1974; R.C.M. 1947, 40-5814(3); amd. Sec. 10, Ch. 27, L. 2011.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-226. Distribution of ownership rights -- distribution to shareholders

33-10-226. Distribution of ownership rights -- distribution to shareholders.
(1) Prior to the termination of any liquidation, rehabilitation, or supervision proceeding, the court may take into consideration the contributions of the respective parties, including the association, the shareholders, and policyowners of the impaired or insolvent insurer and any other party with a bona fide interest, in making an equitable distribution of the ownership rights of the impaired or insolvent insurer. In the determination, consideration must be given to the welfare of the policyowners of the continuing or successor insurer.
(2) A distribution to stockholders, if any, of an impaired or insolvent insurer may not be made until and unless the association has fully recovered the total amount of valid claims of the association, with interest, for funds expended in carrying out its powers and duties under this part.
History: En. 40-5814 by Sec. 14, Ch. 245, L. 1974; R.C.M. 1947, 40-5814(4); amd. Sec. 140, Ch. 575, L. 1981; amd. Sec. 18, Ch. 195, L. 2003; amd. Sec. 11, Ch. 27, L. 2011.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-228. Repealed

33-10-228. Repealed.
Sec. 13, Ch. 27, L. 2011.
History: En. 40-5811 by Sec. 11, Ch. 245, L. 1974; R.C.M. 1947, 40-5811(2), (3).
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-229. Repealed

33-10-229. Repealed.
Sec. 71, Ch. 596, L. 1993.
History: En. 40-5814 by Sec. 14, Ch. 245, L. 1974; R.C.M. 1947, 40-5814(6); amd. Sec. 18, Ch. 198, L. 1979.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-230. Tax -- writeoffs of certificates of contribution

33-10-230. Tax -- writeoffs of certificates of contribution.
(1) Unless a longer period has been allowed by the commissioner, a member insurer shall at its option have the right to show a certificate of contribution for a Class B assessment only as an asset in the form approved by the commissioner pursuant to 33-10-227(9), at percentages of the original face amount approved by the commissioner, for calendar years as follows:
(a) 100% for calendar year of issuance;
(b) 80% for the first calendar year after year of issuance;
(c) 60% for second calendar year after year of issuance;
(d) 40% for third calendar year after year of issuance;
(e) 20% for fourth calendar year after year of issuance.
(2) The insurer may offset the amount written off by it in the calendar year under subsection (1) above against its premium tax liability to this state accrued with respect to business transacted in the calendar year.
(3) Any sums acquired by refund, pursuant to 33-10-227(7), from the association which have therefore been written off by contributing insurers and offset against premium taxes as provided in subsection (2) above and are not then needed for purposes of this part must be paid by the association to the commissioner and deposited by the commissioner with the state treasurer for credit to the general fund of this state.
History: En. 40-5817 by Sec. 17, Ch. 245, L. 1974; R.C.M. 1947, 40-5817; amd. Sec. 8, Ch. 576, L. 1987; amd. Sec. 70, Ch. 596, L. 1993.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 10. Insurance Guaranty Associations › Part 2. Life and Health Insurance Guaranty Associations › 33-10-236. Deposits paid to association

33-10-236. Deposits paid to association.
(1) A deposit in this state that is held pursuant to law or required by the commissioner to be held for the benefit of creditors, including policyowners, and that is not turned over to the liquidator upon entry of the final order of liquidation or upon entry of the order approving a rehabilitation plan of an insurer domiciled in this state or in a reciprocal state pursuant to 33-2-1381 must be promptly paid to the association.
(2) The association is entitled to retain a portion of any amount paid under this section equal to the percentage determined by dividing the aggregate amount of policyowner claims related to the insolvency for which the association has provided statutory benefits by the aggregate amount of all policyowner claims in this state related to the insolvency. The association shall remit to the domiciliary receiver the amount paid to the association and not retained under this section.
History: En. Sec. 2, Ch. 195, L. 2003.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 11. Liability Risk Retention and Purchasing Groups › Part 1. General Provisions › 33-11-101. Purpose

33-11-101. Purpose.
The purpose of this part is to regulate the formation and operation of risk retention groups and purchasing groups in this state formed pursuant to the provisions of the federal Liability Risk Retention Act of 1986 (15 U.S.C. 3901, et seq.).
History: En. Sec. 1, Ch. 249, L. 1987.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 11. Liability Risk Retention and Purchasing Groups › Part 1. General Provisions › 33-11-105. Compulsory associations

33-11-105. Compulsory associations.
(1) A risk retention group may not join or contribute financially to any insurance insolvency guaranty fund or similar mechanism in this state. In addition, a risk retention group or its insureds may not receive any benefit from any guaranty fund for claims arising out of the operations of the risk retention group.
(2) A risk retention group shall participate in this state's joint underwriting associations, mandatory liability pools, and similar mechanisms.
(3) When a purchasing group obtains insurance covering its members' risks from an insurer not authorized in this state or from a risk retention group, the risks, wherever resident or located, may not be covered by any insurance guaranty fund or similar mechanism in this state.
(4) When a purchasing group obtains insurance covering its members' risks from an authorized insurer, only risks resident or located in this state may be covered by the state guaranty fund, subject to Title 33, chapter 10, part 1.
History: En. Sec. 5, Ch. 249, L. 1987; amd. Sec. 56, Ch. 10, L. 1993; amd. Sec. 65, Ch. 596, L. 1993; amd. Sec. 21, Ch. 475, L. 2005; amd. Sec. 1, Ch. 21, L. 2021.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 11. Liability Risk Retention and Purchasing Groups › Part 1. General Provisions › 33-11-106. Repealed

33-11-106. Repealed.
Sec. 73, Ch. 227, L. 2001.
History: En. Sec. 6, Ch. 249, L. 1987.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 11. Liability Risk Retention and Purchasing Groups › Part 1. General Provisions › 33-11-107. Purchasing groups -- exemption from certain laws relating to group purchase of insurance

33-11-107. Purchasing groups -- exemption from certain laws relating to group purchase of insurance.
A purchasing group meeting the criteria established under the provisions of the federal Liability Risk Retention Act of 1986 (15 U.S.C. 3901, et seq.) is exempt from any law of this state relating to the formation of groups for the purchase of insurance, prohibition of group purchasing, or any law that would discriminate against a purchasing group or its members. In addition, an insurer is exempt from any law of this state that prohibits providing or offering to provide to a purchasing group or its members advantages based on their loss and expense experience not afforded to other persons with respect to rates, policy forms, coverages, or other matters. A purchasing group is subject to all other applicable laws of this state.
History: En. Sec. 7, Ch. 249, L. 1987.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 11. Liability Risk Retention and Purchasing Groups › Part 1. General Provisions › 33-11-108. Notice and registration requirements of purchasing groups

33-11-108. Notice and registration requirements of purchasing groups.
(1) A purchasing group that intends to do business in this state shall furnish notice to the commissioner that:
(a) identifies the state where the group is domiciled and all other states in which the group intends to do business;
(b) specifies the lines and classifications of liability insurance that the purchasing group intends to purchase;
(c) identifies the insurer from which the purchasing group intends to purchase its insurance and the domicile of that insurer;
(d) identifies the Montana-licensed insurance producer or Montana-licensed surplus lines insurance producer through which the purchasing group intends to place its business;
(e) identifies the principal place of business of the purchasing group;
(f) provides information required by the commissioner to verify that the purchasing group is qualified under 33-11-102(7); and
(g) identifies the person or persons controlling the activities of the group and includes biographical information on the person or persons.
(2) The purchasing group shall register with and designate the commissioner as its agent solely for the purpose of receiving service of legal documents or process. However, the requirements do not apply in the case of a purchasing group:
(a) (i) that was domiciled before April 2, 1986, in any state of the United States; and
(ii) that was domiciled on and after October 27, 1986, in any state of the United States;
(b) (i) that, before October 27, 1986, purchased insurance from an insurer licensed in any state; and
(ii) that, since October 27, 1986, purchased its insurance from an insurer licensed in any state;
(c) that was a purchasing group under the requirements of the federal Product Liability Risk Retention Act of 1981 (15 U.S.C. 3901 through 3904) before it was amended by Public Law 99-563, approved on October 27, 1986; and
(d) that does not purchase insurance that was not authorized for purposes of an exemption under the federal Product Liability Risk Retention Act of 1981, as in effect before October 27, 1986.
(3) Upon completion of registration requirements, the commissioner shall issue a proper certificate of registration to the purchasing group.
History: En. Sec. 8, Ch. 249, L. 1987; amd. Sec. 3, Ch. 180, L. 1991; amd. Sec. 15, Ch. 451, L. 1993; amd. Sec. 66, Ch. 596, L. 1993; amd. Sec. 43, Ch. 379, L. 1995.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 11. Liability Risk Retention and Purchasing Groups › Part 1. General Provisions › 33-11-109. Restriction on insurance purchased by purchasing groups

33-11-109. Restriction on insurance purchased by purchasing groups.
(1) A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state or from an insurer not authorized in the state where the purchasing group is located, unless the purchase is effected through a licensed insurance producer acting pursuant to the surplus lines laws and regulations of that state.
(2) For purposes of subsection (1), the state where a purchasing group is located is each state where a member of the purchasing group has a risk resident, located, or to be performed.
(3) A purchasing group that obtains liability insurance from an insurer not admitted in this state or from a risk retention group shall inform each of the members of the group who have a risk resident or located in this state that the risk is not protected by an insurance insolvency guaranty fund in this state and that the insurer or risk retention group may not be subject to all insurance laws and regulations of this state.
(4) A purchasing group may not purchase insurance that provides for a deductible or self-insured retention applicable to the group as a whole. Coverage may provide for a deductible or self-insured retention applicable to individual members.
(5) Purchases of insurance by purchasing groups are subject to the same standards regarding aggregate limits that are applicable to all purchases of group insurance.
History: En. Sec. 9, Ch. 249, L. 1987; amd. Sec. 1, Ch. 713, L. 1989; amd. Sec. 67, Ch. 596, L. 1993.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 11. Liability Risk Retention and Purchasing Groups › Part 1. General Provisions › 33-11-110. Taxation of purchasing group

33-11-110. Taxation of purchasing group.
Premium taxes and taxes on premiums paid for coverage of risks resident or located in this state by a purchasing group or any members of the purchasing group must be:
(1) imposed at the same rate and subject to the same interest, fines, and penalties as those applicable to premium taxes and taxes on premiums paid to surplus lines insurers and authorized insurers, pursuant to 33-2-311 and 33-2-705, respectively; and
(2) paid by the authorized or surplus lines insurers and, if not paid by them, paid by the insurance producer for the purchasing group and, if not paid by the insurance producer, paid by the purchasing group and, if not paid by the purchasing group, paid by each of its members.
History: En. Sec. 34, Ch. 596, L. 1993.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 11. Liability Risk Retention and Purchasing Groups › Part 1. General Provisions › 33-11-121. Administrative and procedural authority regarding risk retention groups and purchasing groups

33-11-121. Administrative and procedural authority regarding risk retention groups and purchasing groups.
The commissioner is authorized to use any powers established under this title to enforce the laws of this state so long as those powers are not specifically preempted by the federal Liability Risk Retention Act of 1986 (15 U.S.C. 3901, et seq.). The commissioner's powers include but are not limited to the commissioner's administrative authority to investigate, issue subpoenas, conduct depositions and hearings, issue orders, and impose penalties. With regard to any investigation, administrative proceedings, or litigation, the commissioner may rely on the procedural law and regulations of the state. The injunctive authority of the commissioner in regard to risk retention groups is restricted by the requirement that any injunction be issued by a court of competent jurisdiction.
History: En. Sec. 10, Ch. 249, L. 1987.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 11. Liability Risk Retention and Purchasing Groups › Part 1. General Provisions › 33-11-122. Penalties

33-11-122. Penalties.
A risk retention group that violates any provision of this part is subject to fines and penalties applicable to licensed insurers generally, including revocation of its license to do business in this state.
History: En. Sec. 11, Ch. 249, L. 1987.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 11. Liability Risk Retention and Purchasing Groups › Part 1. General Provisions › 33-11-123. Duty of insurance producers to obtain license

33-11-123. Duty of insurance producers to obtain license.
A person acting or offering to act as an insurance producer for a risk retention group or purchasing group that solicits members, sells insurance coverage, purchases coverage for its members located within the state, or otherwise does business in this state shall, before commencing such activity, obtain a license from the commissioner.
History: En. Sec. 12, Ch. 249, L. 1987; amd. Sec. 1, Ch. 713, L. 1989.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 11. Liability Risk Retention and Purchasing Groups › Part 1. General Provisions › 33-11-124. Enforceability of orders issued in United States district court

33-11-124. Enforceability of orders issued in United States district court.
An order issued by any district court of the United States enjoining a risk retention group from soliciting or selling insurance or operating in any state, territory, or possession of the United States upon a finding that such a group is in a hazardous financial condition is enforceable in the courts of this state.
History: En. Sec. 13, Ch. 249, L. 1987.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 11. Liability Risk Retention and Purchasing Groups › Part 1. General Provisions › 33-11-125. Rules and regulations

33-11-125. Rules and regulations.
The commissioner may make and amend any reasonable rules relating to risk retention groups and purchasing groups necessary or desirable to carry out the provisions of this part.
History: En. Sec. 14, Ch. 249, L. 1987.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 12. Insurer Investments › Part 1. General Provisions › 33-12-101. Purpose and scope

33-12-101. Purpose and scope.
(1) The purpose of this chapter is to protect the interests of insureds by promoting insurer solvency and financial strength. This purpose will be accomplished through the application of investment standards that facilitate a reasonable balance of the following objectives:
(a) to preserve principal;
(b) to ensure reasonable diversification as to type of investment, issuer, and credit quality; and
(c) to allow insurers to allocate investments in a manner consistent with principles of prudent investment management to achieve an adequate return so that obligations to insureds are adequately met and financial strength is sufficient to cover reasonably foreseeable contingencies.
(2) This chapter applies only to investments and investment practices of domestic insurers and United States branches of alien insurers entered through this state. This chapter does not apply to separate accounts of an insurer.
History: En. Sec. 1, Ch. 304, L. 1999.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 12. Insurer Investments › Part 1. General Provisions › 33-12-104. Authorization of investments by board of directors

33-12-104. Authorization of investments by board of directors.
(1) An insurer's board of directors shall adopt a written plan for acquiring and holding investments and for engaging in investment practices that specifies guidelines as to the quality, maturity, and diversification of investments and that contains other specifications including investment strategies intended to ensure that the investments and investment practices are appropriate for the business conducted by the insurer, its liquidity needs, and its capital and surplus.
(2) The board of directors is ultimately responsible for investment decisions and shall review, at least annually, whether all investments acquired and held under this chapter have been made in accordance with delegations, standards, limitations, and investment objectives prescribed by the board or a committee of the board charged with the responsibility to direct its investments.
(3) An insurer's board of directors or committee of the board of directors shall:
(a) on no less than a quarterly basis and more often if considered appropriate, receive and review a summary report on the insurer's investment portfolio, its investment activities, and investment practices engaged in under delegated authority, in order to determine whether the investment activity of the insurer is consistent with its written plan; and
(b) on no less than an annual basis and more often if considered appropriate, review and revise, as appropriate, the written plan.
(4) In discharging its duties under this section, the board of directors may require that records of any authorizations or approvals, other documentation as the board may require, and reports of any action taken under authority delegated under the plan referred to in subsection (1) may be made available on a regular basis to the board of directors.
(5) If an insurer does not have a board of directors, all references to the board of directors in this chapter are considered to be references to the governing body of the insurer having authority equivalent to that of a board of directors.
(6) In discharging their duties under this section, the directors of an insurer shall perform their duties as provided in 35-14-830.
History: En. Sec. 4, Ch. 304, L. 1999; amd. Sec. 237, Ch. 271, L. 2019.