reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 4. Farm Mutual Insurers › Part 5. Insurance Operations › 33-4-502. Limit of risk -- retention of liability

33-4-502. Limit of risk -- retention of liability.
(1) Except as provided in subsection (3), the maximum amount of insurance that an insurer may retain on a single risk, after deduction of applicable reinsurance, may not exceed the greater of 10% of the admitted assets of the insurer or $50,000.
(2) For the purposes of this section, a "single risk" as to insurance against fire and hazards other than windstorm, earthquake, or other catastrophic perils includes all properties insured by the same insurer that are reasonably susceptible to loss or damage from the same fire or the same occurrence of another hazard insured against.
(3) A farm mutual insurer:
(a) that insures any portion of a liability risk shall maintain a surplus of at least $50,000;
(b) that retains any portion of a liability risk shall obtain reinsurance on that liability insurance with an insurer that meets the criteria established in 33-4-503. A farm mutual insurer's retention on a single liability risk may not exceed the greater of 3% of admitted assets or $50,000.
(c) may not retain liability risk or risk resulting from insuring growing crops against loss or damage from hail or other hazards greater than the proportional share of each limit of liability in the following schedule:
Surplus as of the
Proportional Share of Each
Preceding December 31:
Limit of Liability Retained:
$1,000,000 or greater
15%
$800,000 to $999,999
12%
$600,000 to $799,999
9%
$400,000 to $599,999
6%
$200,000 to $399,999
3%
Under $200,000
0%
History: En. Sec. 471, Ch. 286, L. 1959; amd. Sec. 1, Ch. 259, L. 1967; amd. Sec. 1, Ch. 94, L. 1975; R.C.M. 1947, 40-4804; amd. Sec. 1, Ch. 319, L. 1979; amd. Sec. 1, Ch. 132, L. 1981; amd. Sec. 3, Ch. 28, L. 1987; amd. Sec. 3, Ch. 158, L. 1997; amd. Sec. 6, Ch. 271, L. 2009; amd. Sec. 3, Ch. 208, L. 2013.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 4. Farm Mutual Insurers › Part 5. Insurance Operations › 33-4-503. Reinsurance

33-4-503. Reinsurance.
A farm mutual insurer may cede reinsurance to any other farm mutual insurer or insurers and to other authorized property insurers and reinsurers meeting the requirements of 33-2-1216 and may accept reinsurance from other farm mutual insurers.
History: En. Sec. 472, Ch. 286, L. 1959; R.C.M. 1947, 40-4805; amd. Sec. 8, Ch. 469, L. 2005; amd. Sec. 7, Ch. 271, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 4. Farm Mutual Insurers › Part 5. Insurance Operations › 33-4-504. Cash premium or assessment plans

33-4-504. Cash premium or assessment plans.
(1) An insurer may transact business either on a cash premium plan or on an assessment plan, depending upon which plan is provided for in its articles of incorporation or bylaws.
(2) If transacting business on the cash premium plan, the insurer shall collect from each member a premium in cash in an amount that the insurer considers adequate to cover losses and expenses incurred during the term of the insurance.
(3) If transacting business on the assessment plan, the insurer shall principally depend for the payment of losses and expenses upon assessments from time to time levied upon members either before or after any losses or expenses have been incurred. This provision may not be construed as preventing any insurer from collecting from each member an initial amount that the insurer considers proper prior to or at the time of the effectuation of the member's insurance, and this provision may not be considered to prohibit the acquisition, accumulation, and maintenance of surplus or unallocated funds.
(4) An insurer transacting business on the cash premium plan may provide in its bylaws and policies for special assessment of its members if the cash premium charged is found by the insurer to be inadequate to pay in full losses and expenses currently incurred. The bylaws must provide a specific limitation on the amount that can be assessed in any one policy year, and the amount may not be less than one or more than six times the premium charged on each member's policy at the annual rate for a term of 1 year.
History: En. Sec. 473, Ch. 286, L. 1959; R.C.M. 1947, 40-4806; amd. Sec. 8, Ch. 271, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 4. Farm Mutual Insurers › Part 5. Insurance Operations › 33-4-505. Certificate of authority required -- issuance -- continuation -- fee

33-4-505. Certificate of authority required -- issuance -- continuation -- fee.
(1) A farm mutual insurer may not insure any risk in this state unless it then holds a subsisting certificate of authority issued to it by the commissioner.
(2) Upon application, the commissioner shall issue a certificate of authority to every insurer qualified under this chapter.
(3) Every certificate of authority continues in force as long as the farm mutual insurer is entitled under this chapter and until suspended, revoked, or otherwise terminated; subject, however, to continuance of the certificate by the farm mutual insurer each year by payment before May 15 of the continuation fee of $10 if a county mutual insurer or $25 if a state mutual insurer, to be deposited by the commissioner with the state treasurer to the credit of the state general fund.
(4) If the farm mutual insurer does not continue its certificate of authority in accordance with subsection (3), its certificate of authority expires at midnight on May 31 next following its failure to continue it in force. The commissioner shall promptly notify a farm mutual insurer that has not continued its certificate of authority of the impending expiration of its certificate of authority.
(5) A certificate of authority is subject to suspension or revocation by the commissioner for violation of or noncompliance with any provision of this chapter or referred to in this chapter.
(6) The commissioner may reinstate a certificate of authority that a farm mutual insurer has inadvertently permitted to expire, after the farm mutual insurer has fully cured all failures that resulted in the expiration and upon payment by the farm mutual insurer of the current continuation fee as provided in subsection (3). If a certificate is not reinstated, the commissioner may grant a farm mutual insurer another certificate of authority only after the farm mutual insurer files an application for a certificate of authority and meets all other requirements for an original certificate of authority in this state.
(7) The commissioner may amend a certificate of authority at any time to accord with changes in the farm mutual insurer's charter of insuring powers.
History: En. Sec. 483, Ch. 286, L. 1959; R.C.M. 1947, 40-4816; amd. Sec. 2, Ch. 327, L. 1987; amd. Sec. 7, Ch. 316, L. 1999.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 4. Farm Mutual Insurers › Part 5. Insurance Operations › 33-4-506. Members -- minimum membership

33-4-506. Members -- minimum membership.
(1) A person may not become a member of a farm mutual insurer except by insuring property owned by the person insurable under this chapter.
(2) The membership of an insurer consists of the persons lawfully insuring in the insurer.
(3) The total membership of the insurer must at all times be not less than the number of persons required by 33-4-201 to incorporate an insurer.
History: En. Sec. 487, Ch. 286, L. 1959; R.C.M. 1947, 40-4820; amd. Sec. 1153, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 4. Farm Mutual Insurers › Part 5. Insurance Operations › 33-4-507. Withdrawal of member -- cancellation by insurer

33-4-507. Withdrawal of member -- cancellation by insurer.
(1) A member of an insurer may withdraw by surrendering the member's policy to the insurer for cancellation and paying all obligations then owed by the member to the insurer.
(2) The insurer may cancel the policy of any member for any cause considered adequate by the insurer and upon not less than 10 days' written notice in advance of cancellation delivered to the member or mailed to the member's last address of record on file with the insurer.
History: En. Sec. 493, Ch. 286, L. 1959; R.C.M. 1947, 40-4826; amd. Sec. 1154, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 4. Farm Mutual Insurers › Part 5. Insurance Operations › 33-4-508. Application for insurance

33-4-508. Application for insurance.
A person desiring insurance shall make written application to the insurer. If the insurer is transacting business on the assessment plan, the applicant shall at the time of application give the applicant's obligation to the insurer for the payment of losses and expenses as provided in the insurer's bylaws and make advance payment in cash as the insurer may require.
History: En. Sec. 510, Ch. 286, L. 1959; R.C.M. 1947, 40-4843; amd. Sec. 1155, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 4. Farm Mutual Insurers › Part 5. Insurance Operations › 33-4-509. Application and policy forms filed with commissioner

33-4-509. Application and policy forms filed with commissioner.
All forms of application for insurance and of policies proposed to be used by an insurer must be filed with and approved by the commissioner prior to the issuance, delivery, or use in this state. The commissioner shall disapprove any form found by the commissioner to be unlawful, illegible, or misleading. An insurer may not use any form after it has received the commissioner's notice of disapproval setting forth the reasons for disapproval.
History: En. Sec. 511, Ch. 286, L. 1959; R.C.M. 1947, 40-4844; amd. Sec. 1156, Ch. 56, L. 2009; amd. Sec. 12, Ch. 157, L. 2023.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 4. Farm Mutual Insurers › Part 5. Insurance Operations › 33-4-510. Rates -- filing -- discrimination

33-4-510. Rates -- filing -- discrimination.
(1) A farm mutual insurer is not required to file any of its insurance rates with the commissioner. No such rate shall be unfairly discriminatory as between subjects of insurance covered for like perils under like policies and having substantially the same insuring, exposure, and underwriting characteristics.
(2) Notwithstanding any provision of subsection (1) or chapter 18, part 2, of this title, a farm mutual insurer transacting insurance under this chapter may refuse to renew a casualty or liability policy upon nonpayment of dues to the farm mutual insurer if payment of dues is a condition for obtaining or continuing such insurance.
History: En. Sec. 512, Ch. 286, L. 1959; R.C.M. 1947, 40-4845; amd. Sec. 1, Ch. 319, L. 1981.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 4. Farm Mutual Insurers › Part 5. Insurance Operations › 33-4-511. Insurance of schools, community houses, and churches

33-4-511. Insurance of schools, community houses, and churches.
(1) A contract of insurance effected upon the property of any school district, rural community house, rural church, or rural public building pursuant to 33-4-501 does not constitute the school district or the owners of the community house, church, or public building a member of the insurer.
(2) A contract of insurance effected upon any rural school building, rural community house, rural church, or other rural public building referred to in 33-4-501(1)(d) is not invalid because the directors or any director or officer of the insurer at the time of effecting the insurance coverage was a trustee, director, insurance producer, custodian, or manager or in any way in control, supervision, or management of any or all of the property insured.
History: En. Sec. 513, Ch. 286, L. 1959; R.C.M. 1947, 40-4846; amd. Sec. 1, Ch. 713, L. 1989; amd. Sec. 144, Ch. 42, L. 1997.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 4. Farm Mutual Insurers › Part 5. Insurance Operations › 33-4-521. Farm mutual insurers -- merger

33-4-521. Farm mutual insurers -- merger.
(1) A domestic farm mutual insurer may not merge or consolidate with a stock insurer.
(2) A domestic farm mutual insurer may merge or consolidate with another farm mutual insurer or another domestic mutual insurer if:
(a) the insurers transact similar lines of business;
(b) the insurers agree on a plan for merger or consolidation which must be submitted to all members of each insurer by ballot and approved by two-thirds of the members voting for each respective insurer; and
(c) after submitting the plan for review and opportunity for a hearing, the commissioner provides written approval or denial of the merger or consolidation within a reasonable time.
(3) After opportunity for a hearing in subsection (2), the commissioner may not approve the merger or consolidation if evidence shows that it:
(a) is inequitable to the policyholders of any domestic mutual insurer involved;
(b) would substantially reduce the security of and service to be rendered to policyholders of the domestic mutual insurer; or
(c) is contrary to law.
(4) Sections 33-3-217(5) and 33-3-218 also apply to mergers and consolidations of mutual insurers with farm mutual insurers.
(5) Upon merger or consolidation of a domestic farm mutual insurer with another domestic mutual insurer under this chapter, the corporate charter of the merged or consolidated domestic farm mutual insurer must automatically be extinguished and nullified.
History: En. Sec. 1, Ch. 184, L. 2015.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 4. Farm Mutual Insurers › Part 5. Insurance Operations › 33-4-522. Bulk reinsurance -- farm mutual insurers

33-4-522. Bulk reinsurance -- farm mutual insurers.
(1) A domestic farm mutual insurer may reinsure all or substantially all its business in force, or all or substantially all of a major class of its business, with another insurer, stock or mutual, by an agreement of bulk reinsurance after compliance with this section. An agreement may not become effective unless filed with the commissioner and approved by the commissioner in writing.
(2) The commissioner shall approve an agreement within a reasonable time after filing if the commissioner finds it to be fair and equitable to each domestic insurer involved and that the reinsurance if effectuated would not substantially reduce the protection or service to its policyholders. If the commissioner does not approve the agreement, the commissioner shall notify each insurer involved in writing specifying the reasons for disapproval.
(3) The plan and agreement for reinsurance must be approved by a quorum of the board of directors of each farm mutual insurer involved in the agreement.
History: En. Sec. 2, Ch. 184, L. 2015.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 1. General Provisions › 33-5-101. Scope of chapter -- existing insurers

33-5-101. Scope of chapter -- existing insurers.
(1) All authorized reciprocal insurers shall be governed by those sections of this chapter not expressly made applicable to domestic reciprocals.
(2) Existing authorized reciprocal insurers shall after January 1, 1961, comply with the provisions of this chapter and shall make such amendments to their subscribers' agreement, power of attorney, policies, and other documents and accounts and perform such other acts as may be required for such compliance.
History: En. Sec. 540, Ch. 286, L. 1959; R.C.M. 1947, 40-5003.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 1. General Provisions › 33-5-102. Definitions

33-5-102. Definitions.
(1) "Reciprocal insurance" is that resulting from an interexchange among persons, known as "subscribers", of reciprocal agreements of indemnity, the interexchange being effectuated through an attorney-in-fact common to all such persons.
(2) A "reciprocal insurer" means an unincorporated aggregation of subscribers operating individually and collectively through an attorney-in-fact to provide reciprocal insurance among themselves.
History: En. Secs. 538, 539, Ch. 286, L. 1959; R.C.M. 1947, 40-5001, 40-5002.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 1. General Provisions › 33-5-103. Name -- suits

33-5-103. Name -- suits.
A reciprocal insurer shall:
(1) have and use a business name. The name shall include the word "reciprocal", "interinsurer", "interinsurance", "exchange", "underwriters", or "underwriting".
(2) sue and be sued in its own name.
History: En. Sec. 542, Ch. 286, L. 1959; R.C.M. 1947, 40-5005.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 1. General Provisions › 33-5-104. Attorney -- not doing business

33-5-104. Attorney -- not doing business.
(1) "Attorney", as used in this chapter, refers to the attorney-in-fact of a reciprocal insurer. The attorney may be an individual, firm, or corporation.
(2) The attorney of a foreign or alien reciprocal insurer, which insurer is duly authorized to transact insurance in this state, shall not, by virtue of discharge of its duties as such attorney with respect to the insurer's transactions in this state, be thereby deemed to be doing business in this state within the meaning of any laws of this state applying to foreign firms or corporations.
History: En. Sec. 543, Ch. 286, L. 1959; R.C.M. 1947, 40-5006.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 2. Formation › 33-5-201. Organization of reciprocal insurer

33-5-201. Organization of reciprocal insurer.
(1) (a) Twenty-five or more persons domiciled in this state may organize a domestic reciprocal insurer and apply to the commissioner for a certificate of authority to transact insurance.
(b) Eight or more employers with a total of more than 500 employees may organize a domestic reciprocal insurer and apply to the commissioner for a certificate of authority to transact insurance for the purpose of providing workers' compensation coverage for their employees.
(2) The proposed attorney shall file with the commissioner when applying for a certificate of authority a declaration setting forth:
(a) the name of the insurer;
(b) the location of the insurer's principal office, which must be the same as that of the attorney and must be maintained within this state;
(c) the kinds of insurance proposed to be transacted, which in the case of a reciprocal insurer organized pursuant to subsection (1)(b) may only be workers' compensation coverage for employees;
(d) the names and addresses of the original subscribers;
(e) the designation and appointment of the proposed attorney and a copy of the power of attorney;
(f) the names and addresses of the officers and directors of the attorney, if a corporation, or its members, if a firm;
(g) the powers of the subscribers' advisory committee and the names and terms of office of the members of the committee;
(h) that all money paid to the reciprocal insurer must, after deducting any sum payable to the attorney, be held in the name of the insurer and for the purposes specified in the subscribers' agreement;
(i) a copy of the subscribers' agreement;
(j) a statement that each of the original subscribers has in good faith applied for insurance of a kind proposed to be transacted and that the insurer has received from each subscriber the full premium or premium deposit required for the policy applied for, for a term of not less than 6 months at an adequate rate filed with and approved by the commissioner;
(k) a statement of the financial condition of the insurer, a schedule of its assets, and a statement that the surplus as required by 33-5-401 is on hand; and
(l) a copy of each policy, endorsement, and application form proposed for issue or use.
(3) The declaration must be acknowledged by the attorney in the manner required for the acknowledgment of deeds.
History: En. Sec. 545, Ch. 286, L. 1959; R.C.M. 1947, 40-5008; amd. Sec. 15, Ch. 198, L. 1979; amd. Sec. 1, Ch. 500, L. 2003.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 2. Formation › 33-5-202. Merger or conversion

33-5-202. Merger or conversion.
(1) A domestic reciprocal insurer, upon affirmative vote of not less than two-thirds of its subscribers who vote on a merger pursuant to due notice and the approval of the commissioner of the terms, may merge with another reciprocal insurer or be converted to a stock or mutual insurer.
(2) A stock or mutual insurer is subject to the same capital or surplus requirements and has the same rights as a similar domestic insurer transacting the same kinds of insurance.
(3) The commissioner may not approve any plan for merger or conversion that is inequitable to subscribers or that, if for conversion to a stock insurer, does not give each subscriber a preferential right to acquire stock of the proposed insurer proportionate to the subscriber's interest in the reciprocal insurer as determined in accordance with 33-5-411 and a reasonable length of time within which to exercise the right.
History: En. Sec. 564, Ch. 286, L. 1959; R.C.M. 1947, 40-5027; amd. Sec. 1157, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 3. Management › 33-5-301. Power of attorney

33-5-301. Power of attorney.
(1) The rights and powers of the attorney of a reciprocal insurer shall be as provided in the power of attorney given it by the subscribers.
(2) The power of attorney must set forth:
(a) the powers of the attorney;
(b) that the attorney is empowered to accept service of process on behalf of the insurer in actions against the insurer upon contracts exchanged;
(c) the general services to be performed by the attorney;
(d) the maximum amount to be deducted from advance premiums or deposits to be paid to the attorney and the general items of expense in addition to losses to be paid by the insurer; and
(e) except as to nonassessable policies, a provision for a contingent several liability of each subscriber in a specified amount, which amount shall be not less than 1 or more than 10 times the premium or premium deposit stated in the policy.
(3) The power of attorney may:
(a) provide for the right of substitution of the attorney and revocation of the power of attorney and rights thereunder;
(b) impose such restrictions upon the exercise of the power as are agreed upon by the subscribers;
(c) provide for the exercise of any right reserved to the subscribers directly or through their advisory committee; and
(d) contain other lawful provisions deemed advisable.
(4) The terms of any power of attorney or agreement collateral thereto shall be reasonable and equitable, and no such power or agreement shall be used or be effective as to a domestic reciprocal insurer until approved by the commissioner.
History: En. Sec. 547, Ch. 286, L. 1959; R.C.M. 1947, 40-5010.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 3. Management › 33-5-302. Modifications

33-5-302. Modifications.
Modifications of the terms of the subscribers' agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney and the subscribers' advisory committee. No such modification shall be effective retroactively or as to any insurance contract issued prior thereto.
History: En. Sec. 548, Ch. 286, L. 1959; R.C.M. 1947, 40-5011.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 3. Management › 33-5-303. Attorney's bond

33-5-303. Attorney's bond.
(1) Concurrently with the filing of the declaration provided for in 33-5-201, the attorney of a domestic reciprocal insurer shall file with the commissioner a bond in favor of this state for the benefit of all persons damaged as a result of breach by the attorney of the conditions of the attorney's bond as set forth in subsection (2). The bond must be executed by the attorney and by an authorized corporate surety and must be subject to the commissioner's approval.
(2) The bond must be in the penal sum of $25,000, aggregate in form, conditioned that the attorney will faithfully account for all money and other property of the insurer coming into the attorney's possession and that the attorney will not withdraw or appropriate to the attorney's own use from the funds of the insurer any money or property to which the attorney is not entitled under the power of attorney.
(3) The bond must provide that it is not subject to cancellation unless 30 days' advance notice in writing of cancellation is given to both the attorney and the commissioner.
History: En. Sec. 549, Ch. 286, L. 1959; R.C.M. 1947, 40-5012; amd. Sec. 1158, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 3. Management › 33-5-304. Action on bond

33-5-304. Action on bond.
Action on the attorney's bond or to recover against any such deposit made in lieu thereof may be brought at any time by one or more subscribers suffering loss through a violation of its conditions or by a receiver or liquidator of the insurer. Amounts recovered on the bond shall be deposited in and become part of the insurer's funds. The total aggregate liability of the surety shall be limited to the amount of the penalty of such bond.
History: En. Sec. 550, Ch. 286, L. 1959; R.C.M. 1947, 40-5013.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 3. Management › 33-5-305. Subscribers' advisory committee -- duties

33-5-305. Subscribers' advisory committee -- duties.
(1) The advisory committee of a domestic reciprocal insurer exercising the subscribers' rights shall be selected under such rules as the subscribers adopt.
(2) Not less than two-thirds of such committee shall be subscribers other than the attorney or any person employed by, representing, or having a financial interest in the attorney.
(3) The committee shall:
(a) supervise the finances of the insurer;
(b) supervise the insurer's operations to such extent as to assure conformity with the subscribers' agreement and power of attorney;
(c) procure the audit of the accounts and records of the insurer and of the attorney at the expense of the insurer; and
(d) have such additional powers and functions as may be conferred by the subscribers' agreement.
History: En. Sec. 555, Ch. 286, L. 1959; R.C.M. 1947, 40-5018.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 4. Finance › 33-5-401. Surplus funds required

33-5-401. Surplus funds required.
(1) A domestic reciprocal insurer subject to this part, if it has otherwise complied with the applicable provisions of this code, may be authorized to transact insurance if it has and maintains surplus funds as follows:
(a) to transact property insurance, surplus funds of not less than $500,000;
(b) to transact casualty insurance:
(i) including authority for workers' compensation insurance, surplus funds of not less than $750,000; or
(ii) excluding authority for workers' compensation insurance, surplus funds of not less than $500,000.
(2) In addition to surplus funds required to be maintained under subsection (1), the insurer must have, when first authorized, expendable surplus in the same amount as required of a like foreign reciprocal insurer under 33-2-110.
(3) A domestic reciprocal insurer may be authorized to transact additional kinds of insurance if it has otherwise complied with the provisions of this code for the additional kinds of insurance and maintains surplus funds in an amount equal to the minimum capital stock required of a stock insurer for authority to transact a like combination of kinds of insurance.
History: En. Sec. 544, Ch. 286, L. 1959; R.C.M. 1947, 40-5007; amd. Sec. 1, Ch. 307, L. 1979; amd. Sec. 37, Ch. 379, L. 1995; amd. Sec. 34, Ch. 227, L. 2001.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 4. Finance › 33-5-402. Contributions to insurer

33-5-402. Contributions to insurer.
The attorney or other parties may advance to a domestic reciprocal insurer upon reasonable terms funds that it may require from time to time in its operations. Sums advanced may not be treated as a liability of the insurer. Except upon liquidation of the insurer, during any calendar year, the total of withdrawals and repayments of the advanced sums may not exceed the lesser of the insurer's realized earned surplus or 10% of the sums advanced as of the previous December 31. A withdrawal or repayment may not be made without the advance approval of the commissioner. This section does not apply to bank loans or to loans for which security is given.
History: En. Sec. 552, Ch. 286, L. 1959; R.C.M. 1947, 40-5015; amd. Sec. 19, Ch. 531, L. 1997; amd. Sec. 23, Ch. 472, L. 1999.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 4. Finance › 33-5-403. Financial condition -- method of determining

33-5-403. Financial condition -- method of determining.
In determining the financial condition of a reciprocal insurer the commissioner shall apply the following rules:
(1) The commissioner shall charge as liabilities the same reserves that are required of incorporated insurers issuing nonassessable policies on a reserve basis.
(2) The surplus deposits of subscribers must be allowed as assets, except that any premium deposits delinquent for 90 days must first be charged against the surplus deposit.
(3) The surplus deposits of subscribers may not be charged as a liability.
(4) All premium deposits that are delinquent for less than 90 days must be allowed as assets.
(5) An assessment levied upon subscribers and not collected may not be allowed as an asset.
(6) The contingent liability of subscribers may not be allowed as an asset.
(7) The computation of reserves must be based upon premium deposits other than membership fees and without any deduction for expenses and the compensation of the attorney.
History: En. Sec. 553, Ch. 286, L. 1959; R.C.M. 1947, 40-5016; amd. Sec. 1159, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 4. Finance › 33-5-404. Subscribers' liability

33-5-404. Subscribers' liability.
(1) The liability of each subscriber, other than as to a nonassessable policy, for the obligations of the reciprocal insurer must be an individual, several, and proportionate liability, and not joint liability.
(2) Except as to a nonassessable policy, each subscriber must have a contingent assessment liability, in the amount provided for in the power of attorney or in the subscribers' agreement, for payment of actual losses and expenses incurred while the subscriber's policy was in force. The contingent liability may be at the rate of not less than 1 or more than 10 times the premium or premium deposit stated in the policy, and the maximum aggregate contingent liability must be computed in the manner set forth in 33-5-406.
(3) Each assessable policy issued by the insurer must contain a statement of the contingent liability.
History: En. Sec. 556, Ch. 286, L. 1959; R.C.M. 1947, 40-5019; amd. Sec. 1160, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 4. Finance › 33-5-405. Subscribers' liability on judgment

33-5-405. Subscribers' liability on judgment.
(1) An action may not lie against any subscriber upon any obligation claimed against the insurer until a final judgment has been obtained against the insurer and remains unsatisfied for 30 days.
(2) Any judgment described in subsection (1) is binding upon each subscriber only in the proportion that the subscriber's interests may appear and in an amount not exceeding the subscriber's contingent liability, if any.
History: En. Sec. 557, Ch. 286, L. 1959; R.C.M. 1947, 40-5020; amd. Sec. 1161, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 4. Finance › 33-5-406. Assessments

33-5-406. Assessments.
(1) Assessments may from time to time be levied upon subscribers of a domestic reciprocal insurer liable for the assessment under the terms of their policies by the attorney upon approval in advance by the subscribers' advisory committee and the commissioner or by the commissioner in liquidation of the insurer.
(2) Each subscriber's share of a deficiency for which an assessment is made, but not exceeding in any event the subscriber's aggregate contingent liability as stated in accordance with 33-5-404, must be computed by applying to the premium earned on the subscriber's policy or policies during the period to be covered by the assessment the ratio of the total deficiency to the total premiums earned during the period upon all policies subject to the assessment.
(3) In computing the earned premiums for the purposes of this section, the gross premium received by the insurer for the policy must be used as a base, deducting only charges not recurring upon the renewal or extension of the policy.
(4) A subscriber may not have an offset against any assessment for which the subscriber is liable on account of any claim for unearned premium or losses payable.
History: En. Sec. 558, Ch. 286, L. 1959; R.C.M. 1947, 40-5021; amd. Sec. 1162, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 4. Finance › 33-5-407. Time limit for assessments

33-5-407. Time limit for assessments.
Every subscriber of a domestic reciprocal insurer having contingent liability must be liable for and shall pay the subscriber's share of any assessment, as computed and limited in accordance with this chapter, if:
(1) while the subscriber's policy is in force or within 1 year after its termination, the subscriber is notified by either the attorney or the commissioner of the intention to levy an assessment; or
(2) an order to show cause why a receiver, conservator, rehabilitator, or liquidator of the insurer should not be appointed is issued while the subscriber's policy is in force or within 1 year after its termination.
History: En. Sec. 559, Ch. 286, L. 1959; R.C.M. 1947, 40-5022; amd. Sec. 1163, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 4. Finance › 33-5-408. Aggregate liability

33-5-408. Aggregate liability.
No one policy or subscriber as to such policy shall be assessed or charged with an aggregate of contingent liability as to obligations incurred by a domestic reciprocal insurer in any one calendar year in excess of the amount provided for in the power of attorney or in the subscribers' agreement, computed solely upon premium earned on such policy during that year.
History: En. Sec. 560, Ch. 286, L. 1959; R.C.M. 1947, 40-5023.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 4. Finance › 33-5-409. Nonassessable policies

33-5-409. Nonassessable policies.
(1) If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum capital stock required of a domestic stock insurer authorized to transact similar kinds of insurance, upon application of the attorney and as approved by the subscribers' advisory committee, the commissioner shall issue a certificate authorizing the insurer to extinguish the contingent liability of subscribers under its policies then in force in this state and to omit provisions imposing contingent liability in all policies delivered or issued for delivery in this state for as long as all the surplus remains unimpaired.
(2) Upon impairment of the surplus, the commissioner shall revoke the certificate. The revocation may not make a policy subject to contingent liability if the policy is then in force and for the remainder of the period for which the premium has been paid. However, after the revocation, a policy may not be issued or renewed without providing for contingent assessment liability of the subscriber.
(3) The commissioner may not authorize a domestic reciprocal insurer to extinguish the contingent liability of any of its subscribers or in any of its policies to be issued unless it qualifies to and does extinguish the liability of all its subscribers and in all policies for all kinds of insurance transacted by it. However, if required by the laws of another state in which the insurer is transacting insurance as an authorized insurer, the insurer may issue policies providing for the contingent liability of those of its subscribers that may acquire the policies in that state and need not extinguish the contingent liability applicable to policies previously in force in that state.
History: En. Sec. 561, Ch. 286, L. 1959; R.C.M. 1947, 40-5024; amd. Sec. 1164, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 4. Finance › 33-5-410. Distribution of savings

33-5-410. Distribution of savings.
A reciprocal insurer may from time to time return to its subscribers any unused premiums, savings, or credits accruing to their accounts. Any such distribution shall not unfairly discriminate between classes of risks or policies or between subscribers, but this shall not prevent retrospective rating, distribution on a retrospective plan, or distribution varying as to classes of subscribers based on the experience of such subscribers.
History: En. Sec. 562, Ch. 286, L. 1959; R.C.M. 1947, 40-5025.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 4. Finance › 33-5-411. Subscribers' share in assets

33-5-411. Subscribers' share in assets.
Upon the liquidation of a domestic reciprocal insurer, its assets remaining after discharge of its indebtedness and policy obligations, the return of any contributions of the attorney or other persons to its surplus made as provided in 33-5-402, and the return of any unused premium, savings, or credits then standing on subscribers' accounts shall be distributed to its subscribers who were such within the 12 months prior to the last termination of its certificate of authority, according to such reasonable formula as the commissioner may approve.
History: En. Sec. 563, Ch. 286, L. 1959; R.C.M. 1947, 40-5026.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 4. Finance › 33-5-412. Impaired reciprocals

33-5-412. Impaired reciprocals.
(1) If the assets of a reciprocal insurer are at any time insufficient to discharge its liabilities, other than any liability on account of funds contributed by the attorney or others, and to maintain the required surplus, its attorney shall make up the deficiency or levy an assessment upon the subscribers for the amount needed to make up the deficiency, but subject to the limitation set forth in the power of attorney or policy.
(2) If the attorney fails to make up the deficiency or to make the assessment within 30 days after the commissioner orders the attorney to do so or if the deficiency is not fully made up within 60 days after the date the assessment was made, the insurer is considered insolvent and must be proceeded against as authorized by this code.
(3) If liquidation of an insurer is ordered, an assessment must be levied upon the subscriber for an amount, subject to limits as provided by this chapter, that the commissioner determines to be necessary to discharge all liabilities of the insurer, exclusive of any funds contributed by the attorney or other persons but including the reasonable cost of the liquidation.
History: En. Sec. 565, Ch. 286, L. 1959; R.C.M. 1947, 40-5028; amd. Sec. 1165, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 4. Finance › 33-5-413. Annual statement

33-5-413. Annual statement.
(1) The annual statement of a reciprocal insurer shall be made and filed by its attorney.
(2) The statement shall be supplemented by such information as may be required by the commissioner relative to the affairs and transactions of the attorney insofar as they relate to the reciprocal insurer.
History: En. Sec. 551, Ch. 286, L. 1959; R.C.M. 1947, 40-5014.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 5. Insurance Operations › 33-5-501. Insuring powers of reciprocals

33-5-501. Insuring powers of reciprocals.
(1) A reciprocal insurer may, upon qualifying therefor as provided for by this code, transact any kind or kinds of insurance defined by this code, other than life or title insurances.
(2) Such an insurer may purchase reinsurance and may grant reinsurance as to any kind of insurance it is authorized to transact.
History: En. Sec. 541, Ch. 286, L. 1959; R.C.M. 1947, 40-5004.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 5. Insurance Operations › 33-5-502. Certificate of authority

33-5-502. Certificate of authority.
(1) The certificate of authority of a reciprocal insurer shall be issued to its attorney in the name of the insurer.
(2) The commissioner may refuse, suspend, or revoke the certificate of authority, in addition to other grounds therefor, for failure of the attorney to comply with any provision of this code.
History: En. Sec. 546, Ch. 286, L. 1959; R.C.M. 1947, 40-5009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 5. Reciprocal Insurers › Part 5. Insurance Operations › 33-5-503. Eligible subscribers -- liability of representative

33-5-503. Eligible subscribers -- liability of representative.
(1) Individuals, partnerships, and corporations of this state may make application, enter into agreement for, hold policies or contracts in or with, and be a subscriber of any domestic, foreign, or alien reciprocal insurer. Any corporation now or hereafter organized under the laws of this state shall, in addition to the rights, powers, and franchises specified in its articles of incorporation, have full power and authority as a subscriber to exchange insurance contracts through such reciprocal insurer. The right to exchange such contracts is hereby declared to be incidental to the purposes for which such corporations are organized and to be as fully granted as the rights and powers expressly conferred upon such corporations.
(2) Government or governmental agencies, state or political subdivisions thereof, boards, associations, estates, trustees, or fiduciaries are authorized to exchange nonassessable reciprocal interinsurance contracts with each other and with individuals, partnerships, and corporations to the same extent that individuals, partnerships, and corporations are herein authorized to exchange reciprocal interinsurance contracts.
(3) Any officer, representative, trustee, receiver, or legal representative of any such subscriber shall be recognized as acting for or on its behalf for the purpose of such contract but shall not be personally liable upon such contract by reason of acting in such representative capacity.
History: En. Sec. 554, Ch. 286, L. 1959; R.C.M. 1947, 40-5017.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 6. Benevolent Associations › Part 1. General Provisions › 33-6-101. Repealed

33-6-101. Repealed.
Sec. 6, Ch. 26, L. 2019.
History: (1), (2)En. Sec. 521, Ch. 286, L. 1959; Sec. 40-4901, R.C.M. 1947; (3)En. Sec. 537, Ch. 286, L. 1959; amd. Sec. 1, Ch. 297, L. 1971; Sec. 40-4917, R.C.M. 1947; R.C.M. 1947, 40-4901, 40-4917; amd. Sec. 141, Ch. 575, L. 1981; amd. Sec. 45, Ch. 304, L. 1999; amd. Sec. 9, Ch. 60, L. 2019.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 6. Benevolent Associations › Part 1. General Provisions › 33-6-102. Definition

33-6-102. Definition.
(1) An entity is considered a "benevolent association" for the purposes of this chapter if the entity:
(a) is a corporation, association, or society, or by whatever name called, that issues any certificate, policy, or membership agreement or makes any promise or agreement with its members under which, upon the death of a member, any money or other benefit, charity, aid, or relief is to be paid, provided, or rendered by the corporation, association, or society to the deceased's legal representatives or to the beneficiary designated by the deceased and the money, benefit, charity, aid, or relief is derived from voluntary donations or from admission fees, dues, or assessments or any of those items collected or to be collected from the members of the entity or members of a class of the entity or interest or gains on the items or accumulations of the items; and
(b) uses the money or other benefit, charity, aid, or relief for the uses and purposes specified in this chapter, the uses of the corporation, association, or society, or the expenses of management and prosecution of its business.
(2) The definition of benevolent association in subsection (1) is not applicable to:
(a) burial or death benefits, annuities, endowments, or any other benefit payments of any legal reserve life or disability insurer or of any labor union, railroad brotherhood, or lodge having as a primary business the improvement of working conditions;
(b) any auxiliaries to any labor union, railroad brotherhood, or lodge referred to in subsection (2)(a); or
(c) the benevolent plans within fraternal orders if limited to members and if the plan is not the principal object for the formation or continuance of the fraternal order.
History: (1)En. Sec. 522, Ch. 286, L. 1959; amd. Sec. 20, Ch. 535, L. 1975; Sec. 40-4902, R.C.M. 1947; (2) thru (4)En. Secs. 523, 524, 525, Ch. 286, L. 1959; Secs. 40-4903, 40-4904, 40-4905, R.C.M. 1947; R.C.M. 1947, 40-4902, 40-4903, 40-4904, 40-4905; amd. Sec. 1166, Ch. 56, L. 2009; amd. Sec. 1, Ch. 26, L. 2019.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 6. Benevolent Associations › Part 1. General Provisions › 33-6-103. New benevolent associations prohibited -- foreign associations

33-6-103. New benevolent associations prohibited -- foreign associations.
(1) A benevolent association may not transact or be authorized to transact any business in this state if the benevolent association did not have authority to transact business in this state immediately prior to January 1, 1961.
(2) A new benevolent association may not be organized or formed in this state on or after January 1, 1961.
(3) A benevolent association formed or existing under the laws of any other state or jurisdiction may not be authorized to transact business in this state.
History: En. Sec. 526, Ch. 286, L. 1959; R.C.M. 1947, 40-4906; amd. Sec. 2, Ch. 26, L. 2019.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 6. Benevolent Associations › Part 1. General Provisions › 33-6-104. Repealed

33-6-104. Repealed.
Sec. 6, Ch. 26, L. 2019.
History: En. Sec. 527, Ch. 286, L. 1959; R.C.M. 1947, 40-4907.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 6. Benevolent Associations › Part 2. Management (Repealed) › 33-6-201. Repealed

33-6-201. Repealed.
Sec. 6, Ch. 26, L. 2019.
History: En. Sec. 528, Ch. 286, L. 1959; R.C.M. 1947, 40-4908.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 6. Benevolent Associations › Part 3. Finance (Repealed) › 33-6-301. Repealed

33-6-301. Repealed.
Sec. 6, Ch. 26, L. 2019.
History: En. Sec. 531, Ch. 286, L. 1959; R.C.M. 1947, 40-4911.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 6. Benevolent Associations › Part 3. Finance (Repealed) › 33-6-302. Repealed

33-6-302. Repealed.
Sec. 6, Ch. 26, L. 2019.
History: En. Sec. 533, Ch. 286, L. 1959; amd. Sec. 1, Ch. 224, L. 1975; R.C.M. 1947, 40-4913.