Montana Administrative Code

2.55.320 METHOD FOR ASSIGNMENT OF CLASSIFICATIONS OF EMPLOYMENTS Risks insured by the State Fund must be divided by the State Fund into classifications. An individual classification must group together risks so that each classification reflects exposures common to those employers…

2.55.321 CALCULATION OF EXPERIENCE RATES (REPEALED) Authorizing statute(s): 39-71-2315, 39-71-2316, MCA Implementing statute(s): 39-71-2311, 39-71-2316, 39-71-2330, MCA History: EMERG, NEW, 1992 MAR p. 300, Eff. 2/28/92; AMD, 1992 MAR p. 907, Eff. 5/1/92; AMD, 1996 MAR p. 410, Ef…

2.55.322 CALCULATION OF CREDIBILITY WEIGHTED RATE (REPEALED) Authorizing statute(s): 39-71-2315, 39-71-2316, MCA Implementing statute(s): 39-71-2311, 39-71-2316, 39-71-2330, MCA History: EMERG, NEW, 1992 MAR p. 300, Eff. 2/28/92; AMD, 1992 MAR p. 907, Eff. 5/1/92; AMD, 1995 MAR p…

2.55.323 OVERALL RATE LEVEL In order to determine the aggregate premium to be charged to new and renewal policies for the fiscal year that begins on the next July 1, the State Fund actuary shall evaluate the adequacy of the projected overall rate level for the fiscal year of the …

2.55.324 PREMIUM RATESETTING - HORSE RACING AND BOARD INTERIM MODIFICATION OF RATES Payrolls for horse racing activities conducted at licensed Montana race tracks and hauling of horses between those race tracks from March 1 through September 30 of each year have been determined n…

2.55.325 VARIABLE PRICING WITHIN A CLASSIFICATION (REPEALED) Authorizing statute(s): 39-71-2315, 39-71-2316, MCA Implementing statute(s): 39-71-2311, 39-71-2316, 39-71-2330, 39-71-2341, MCA History: EMERG, NEW, 1992 MAR p. 300, Eff. 2/28/92; AMD, 1992 MAR p. 907, Eff. 5/1/92; AMD…

2.55.326 MINIMUM LOSS BASED PREMIUM The State Fund, subject to the approval of the State Fund board of directors, may establish each fiscal year and charge a minimum loss based premium to a policy with an effective date between July 1 and June 30 inclusive, in order to cover the …

2.55.327 CONSTRUCTION INDUSTRY PREMIUM CREDIT PROGRAM (REPEALED) Authorizing statute(s): 39-71-2315, 39-71-2316, MCA Implementing statute(s): 39-71-2211, 39-71-2311, 39-71-2316, 39-71-2330, MCA History: NEW, 1992 MAR p. 907, Eff. 5/1/92; AMD, 1993 MAR p. 340, Eff. 3/12/93; AMD, 1…

2.55.327A CONSTRUCTION INDUSTRY PREMIUM CREDIT PROGRAM The State Fund shall each fiscal year offer a program which provides a premium credit to insureds in the construction industry who pay their workers wages equal to or in excess of 1.168 times the state's average weekly wage. …

2.55.328 EMPLOYERS' LIABILITY - LIMITS AND RATES The State Fund may, upon approval of the board, provide employers liability insurance as part of the workers' compensation policy for employers insured by the State Fund. The board shall approve the terms and conditions of employer…

2.55.401 EXPERIENCE MODIFICATION FACTOR An insured, whose premium level qualifies, must be assigned an experience modification factor that reflects the insured's actual experience in comparison to the expected experience. "Experience modification factor" means a factor derived fr…

2.55.402 MEDICAL DEDUCTIBLE The state fund offers an annual (fiscal year July l through June 30) medical deductible plan for policies with effective dates between each July 1 and June 30 inclusive, in increments of $500, $1,000, $1,500, $2,000 and $2,500 per claim. This plan allo…

2.55.403 VOLUME DISCOUNT The state fund may establish each fiscal year for insureds covered by the state fund a percentage reduction of premium for policies with effective dates between each July 1 and June 30 inclusive, based on premium volume. The state fund may provide a group…

2.55.404 SCHEDULED RATING - HIGH LOSS MODIFIER (IS HEREBY REPEALED) Authorizing statute(s): Sec. 39-71-2315 and 39-71-2316 MCA Implementing statute(s): Sec. 39-71-2316 and 39-71-2341 MCA History: NEW, 1993 MAR p. 2527, Eff. 10/29/93; AMD, 1994 MAR p. 661, Eff. 4/1/94; AMD, 1995 M…

2.55.405 SCHEDULED RATING - LOSS CONTROL NONCOMPLIANCE MODIFIER (IS HEREBY REPEALED) Authorizing statute(s): Sec. 39-71-2315 and 39-71-2316 MCA Implementing statute(s): Sec. 39-71-2316, 39-71-2330 and 39-71-2341 MCA History: NEW, 1994 MAR p. 292, Eff. 2/11/94; AMD, 1996 MAR p. 41…

2.55.406 SCHEDULED RATING - UNIQUE RISK CHARACTERISTICS MODIFIER The state fund may modify the premium for an insured to acknowledge characteristics of the business that are not reflected in its experience. Such characteristics may include but are not limited to the condition of …

2.55.407 OPTIONAL DEDUCTIBLE PLANS The state fund may offer to an employer an optional deductible plan for benefits payable under the Workers' Compensation Act. The board shall establish deductible plans for each fiscal year. The board shall determine the factors, multipliers, ra…

2.55.408 RETROSPECTIVE RATING PLANS The State Fund may offer an employer, or a group, a retrospective rating plan for coverage under the Workers' Compensation Act. The board shall establish employer retrospective rating plans for each fiscal year utilizing the methods and formula…

2.55.409 EXPENSE CONSTANT The state fund may assess an expense constant on all policies in effect during a fiscal year. The amount of the charge shall be determined annually by the board for the future fiscal year, and may be in addition to any other charge, premium or loss based…

2.55.501 DEFINITIONS The following definitions apply to ARM 2.55.502: "Dividend factors" means the percentage multiplied times premium to arrive at the dividend amount payable to an eligible policyholder. "Fiscal year" or "dividend year" means the period of time between July 1 an…

2.55.502 INDIVIDUAL LOSS SENSITIVE DIVIDEND DISTRIBUTION PLAN Upon declaration of a dividend by the State Fund board of directors (board) as of the end of any fiscal year, but in no event prior to July 1, 1998, the following factors and procedures shall be utilized to determine t…

2.59.1001 MERGER APPLICATION The application to merge one or more banks located in Montana or to merge two or more banks doing business in this state must be in the following form: An application fee of $2,000 plus $200 for each bank involved in the merger must be paid to the dep…

2.59.1002 MERGER APPLICATION PROCEDURES An application to merge one or more banks located in Montana pursuant to 32-1-370, MCA, must be on the form in ARM 2.59.1001. An application to merge any two or more banks doing business in this state pursuant to 32-1-371, MCA, must be on t…

2.59.101 BANKS - RESERVE REQUIREMENTS No bank shall act as a reserve bank unless: the bank has unimpaired paid-up capital and surplus of at least $1,000,000. For purposes of this rule, "unimpaired paid-up capital and surplus" shall mean the aggregate of the bank's capital stock a…

2.59.102 BANKS - DIRECT LEASING OF PERSONAL PROPERTY Under authority granted by 32-1-362 , MCA, the department hereby permits state banks of Montana to engage in the business of direct leasing of personal property under the following regulations: A bank may purchase personal prop…

2.59.103 RETENTION OF BANK RECORDS (REPEALED) Authorizing statute(s): 32-1-491, MCA Implementing statute(s): 32-1-491, MCA History: NEW, 1983 MAR p. 1458, Eff. 10/14/83; REP, 1994 MAR p. 1137, Eff. 4/29/94; TRANS, from Commerce, 2001 MAR p. 1178.

2.59.104 SEMIANNUAL ASSESSMENT Thedepartment invoices banks, investment companies, and trust companiesfor semiannual assessments every June and December. The assessment is based on eachinstitution's total assets provided in its previous March and September call reports. The fee i…

2.59.105 INVESTMENT SECURITIES (REPEALED) Authorizing statute(s): 32-1-433, MCA Implementing statute(s): 32-1-433, MCA History: NEW, 1989 MAR p. 2196, Eff. 12/22/89; REP, 1994 MAR p. 1137, Eff. 4/29/94; TRANS, from Commerce, 2001 MAR p. 1178.

2.59.106 INVESTMENT IN CORPORATE STOCK Ownership of stock in a bank service corporation is subject to the following conditions: The department adopts the definition of bank service corporation in 12 USC 1861 (a corporation organized to perform services authorized by this Act, all…

2.59.107 INVESTMENTS OF FINANCIAL INSTITUTIONS (REPEALED) Authorizing statute(s): 32-1-424, MCA Implementing statute(s): 32-1-424, MCA History: NEW, 1993 MAR p. 2776, Eff. 11/25/93; TRANS, from Commerce, 2001 MAR p. 1178; REP, 2002 MAR p. 901, Eff. 3/29/02.

2.59.108 LIMITATIONS ON LOANS (REPEALED) Authorizing statute(s): 32-1-432, MCA Implementing statute(s): 32-1-432, MCA History: NEW, 1993 MAR p. 2776, Eff. 11/25/93; AMD, 1996 MAR p. 2161, Eff. 8/9/96; TRANS, from Commerce, 2001 MAR p. 1178; AMD, 2014 MAR p. 675, Eff. 4/11/14; REP…

2.59.109 LOANS TO A MANAGING OFFICER, OFFICER, DIRECTOR, OR PRINCIPAL SHAREHOLDER OF A BANK The definitions of capital and unimpaired surplus are as follows: "Capital" shall mean the aggregate of the bank's outstanding capital stock account(s) minus any deficit balance existing i…

2.59.110 FEES FOR THE APPROVAL OF POINT-OF-SALE TERMINALS (REPEALED) Authorizing statute(s): 32-6-401, MCA Implementing statute(s): 32-6-305, MCA History: NEW, 1994 MAR p. 1143, Eff. 4/29/94; REP, 1998 MAR p. 2478, Eff. 9/11/98; TRANS, from Commerce, 2001 MAR p. 1178.

2.59.1101 APPLICATION PROCEDURE FOR APPROVAL TO ESTABLISH A NEW BRANCH BANK An existing state-chartered bank that does not meet the criteria in ARM 2.59.904(2) must file with the department an application for approval to establish and operate a new branch bank. Applications must …

2.59.1102 REVIEW PROCEDURE FOR APPLICATIONS FOR APPROVAL TO ESTABLISH A NEW BRANCH BANK The department must process applications for new branch banks in the order in which they are received. If an application is incomplete, the department will notify the applicant by e-mail. An a…

2.59.1103 PROCEDURE FOLLOWING APPROVAL OF AN APPLICATION TO ESTABLISH A NEW BRANCH BANK A bank must open an approved branch within 18 months of the date of branch bank approval. Upon written request by the applicant and a finding of good cause by the department, the 18-month peri…

2.59.111 RETENTION OF BANK RECORDS Records of customer accounts, as defined in (7), must be held in accordance with 32-1-491, MCA. The publication "Bank Record Retention Periods - Appendix A to ARM 2.59.111" (Appendix A) establishes the minimum period for retention of bank record…

2.59.112 UNDERWRITING OF SECURITIES Banks are permitted to underwrite issues of investment securities if the following conditions are met: No banks having unimpaired capital and surplus of less than $5,000,000 shall underwrite or otherwise participate as principal in the marketin…

2.59.113 INVESTMENTS BY BANKS TO PROMOTE THE PUBLIC WELFARE The department incorporates by reference the Office of the Comptroller of the Currency Code of Federal Regulations (12 CFR Part 24.1 through 24.7, 1996 edition) that implement 12 USC 24, which authorizes national banks t…

2.59.114 TRUST COMPANY EXAMINATION FEES (REPEALED) Authorizing statute(s): 32-1-218, MCA Implementing statute(s): 32-1-211, 32-1-214, MCA History: NEW, 2004 MAR p. 1947, Eff. 8/20/04; REP, 2021 MAR p. 328, Eff. 3/27/21.

2.59.115 ADOPTION OF EXAMINATION PROCEDURE The department adopts the revised Uniform Financial Institution Rating System as one of its examination procedures. The edition adopted is the December 19, 1996, edition as published in the Federal Register at 61 Fed. Reg. 67021. It may …

2.59.116 DEFINITIONS The following definitions apply to ARM 2.59.117 through 2.59.124: "Actuarial method" means the method of allocating payments made on a debt between the amount financed and the finance charge. Under this method, a payment is applied first to the accumulated fi…

2.59.117 DEBT CANCELLATION AND DEBT SUSPENSION PROGRAMS – REQUIREMENTS A bank offering debt cancellation contracts and/or debt suspension agreements shall: manage the risks associated with debt cancellation contracts and debt suspension agreements in accordance with bank safety a…

2.59.118 REQUIRED DISCLOSURES A bank shall provide the following disclosures to the bank's customer: notice of the prohibited acts or practices contained in ARM 2.59.119; the fee applicable to the contract and any payment options; the refund policy; whether the customer is barred…

2.59.119 PROHIBITED ACTS OR PRACTICES A bank is prohibited from engaging in any of the following acts or practices: extending credit or altering the terms or conditions of an extension of credit conditioned upon the customer entering into a debt cancellation agreement or debt sus…

2.59.120 REFUNDS OF FEES UPON TERMINATION OR PREPAYMENT OF COVERED LOAN If a debt cancellation contract or debt suspension agreement is terminated, including, for example, when the customer prepays the covered loan, a bank shall refund to the customer any unearned fees paid for t…

2.59.1201 ADOPTION OF STANDARDIZED FORMS AND PROCEDURES OF THE NMLS The NMLS Policy Guidebook dated September 27, 2021, isadopted by reference and available on the NMLS website at mortgage.nationwidelicensingsystem.org/slr/common/policy/Pages/default.aspx . Except as provided in …

2.59.1202 TRANSITION (REPEALED) Authorizing statute(s): 31-1-221, 31-1-223, MCA Implementing statute(s): 31-1-221, 31-1-223, MCA History: NEW, 2014 MAR p. 2446, Eff. 10/10/14; REP, 2016 MAR p. 2411, Eff. 12/24/16.

2.59.1203 LICENSE RENEWALS The renewal period begins November 1. Every renewal applicant shall apply for renewal through the NMLS. Licensees shall use the NMLS renewal process to request renewal of their license. Licensees shall submit their renewal applications by December 1 of …

2.59.1204 INITIAL LICENSE APPLICATION THROUGH NMLS (REPEALED) Authorizing statute(s): 31-1-221, 31-1-223, MCA Implementing statute(s): 31-1-221, 31-1-223, MCA History: NEW, 2014 MAR p. 2446, Eff. 10/10/14; REP, 2022 MAR p. 228, Eff. 2/12/22.