Title 33, Title 33

(1) An exempt commercial purchaser means an individual or business entity who at the time of placement: (a) employs or retains a qualified risk manager to negotiate insurance coverage; (b) has paid aggregate nationwide commercial property and casualty insurance premiums in excess…

(1) A qualified risk manager means a person who: (a) is an employee of or a third-party consultant retained by the commercial policyholder; (b) provides skilled services in loss prevention, loss reduction, or risk and insurance coverage analysis and purchases of insurance; and (c…

(1) A surplus lines insurance producer may collect a flat fee per policy for business placed in the surplus lines insurance market. The fee may not exceed: (a) $50 for a personal lines insurance policy; or (b) $100 for a commercial lines insurance policy. (2) The fees allowed und…

(1) The commissioner may collect a stamping fee not to exceed 1% of the premium payable for surplus lines insurance transacted in this state. The commissioner shall establish the stamping fee by rule commensurate with the expenses of regulating surplus lines. The stamping fee mus…

(1) Following negotiated rulemaking under Title 2, chapter 5, the commissioner may enter into a cooperative or reciprocal agreement with other states, individually or collectively, for the purposes of collecting, allocating, and disbursing premium taxes and fees attributable to m…

At least annually, the commissioner shall make available a list of the kinds of insurance that are presumed to be unobtainable from authorized insurers, known as the approved risk list.

(1) A domestic insurer possessing minimum capital and surplus of at least $15 million, pursuant to a resolution by its board of directors and on the written approval of the commissioner, may be designated as a domestic surplus lines insurer. A domestic surplus lines insurer must …

A surplus lines insurance producer who in this state represents or aids an unauthorized insurer in violation of this part is subject to the penalties and procedures in 33-1-317 and 33-1-318.

This part may be cited as the "Standard Valuation Act".

As used in this part, the following definitions apply unless the context clearly indicates otherwise: (1) "Accident and health insurance" means contracts that incorporate morbidity risk and provide protection against economic loss resulting from accident, sickness, or medical con…

(1) For policies issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of valuation required under 33-2-407, except as provided in subsection (6) or (8) of this section. (2) The operative date of the…

(1) A company domiciled in Montana shall establish reserves using a principle-based valuation that meets the conditions for policies or contracts in this section and as specified in the valuation manual. (2) The principle-based valuation at a minimum must: (a) quantify the benefi…

A company shall submit mortality, morbidity, policyholder behavior, expense experience, and other data as prescribed by the commissioner and in accordance with the valuation manual.

(1) Except as provided in subsection (9), a company's confidential information is confidential information as provided in 2-6-1002 and privileged, is not subject to subpoena or discovery, and is not admissible in evidence in any private civil action. (2) The commissioner may use …

(1) The commissioner shall annually value or cause to be valued the reserve liabilities (reserves) for all outstanding life insurance policies and annuity and pure endowment contracts of every life insurer doing business in this state issued on or before the operative date of the…

(1) This section shall apply to only those policies and contracts issued prior to the operative date of 33-20-213. (2) Except as otherwise provided in 33-2-410 for group annuity and pure endowment contracts, the minimum standard of valuation on all policies of domestic life insur…

(1) This section applies to only those policies and contracts issued prior to the date of adoption of the valuation manual, which is the operative date for the valuation manual, and on or after the operative date of 33-20-213, except as otherwise provided in 33-2-410 for group an…

(1) Except as provided in 33-2-413, the minimum standard for the valuation of all individual annuity and pure endowment contracts issued on or after the operative date of this section, as defined herein, and for all annuities and pure endowments purchased on or after that operati…

(1) Except as otherwise provided in 33-2-412(3) and (4), 33-2-417(2), and subsection (4) of this section, reserves according to the commissioner's reserve valuation method, for the life insurance and endowment benefits of policies providing for a uniform amount of insurance and r…

(1) (a) An insurer's aggregate reserves for all life insurance policies, excluding disability and accidental death benefits issued on or after October 1, 1995, and prior to adoption of the valuation manual by the commissioner by rule may not be less than the aggregate reserves ca…

(1) For policies issued prior to the operative date of the valuation manual, the calendar year statutory valuation interest rates as established in this section must be used in determining the minimum standard for the valuation of: (a) all life insurance policies issued in a part…

(1) The weighting factors referred to in the formulas stated in 33-2-413 are as follows: (a) (i) for life insurance: Guarantee Duration in Years Weighting Factors 10 or less .50 More than 10 but not more than 20 .45 More than 20 .35 (ii) for life insurance, the guarantee duration…

(1) The reference interest rate referred to in the formulas in 33-2-413 is: (a) for all life insurance, the lesser of the average over a period of 36 months and the average over a period of 12 months, ending on June 30 of the calendar year next preceding the year of issue, of Moo…

(1) Domestic life insurers shall deposit and maintain on deposit, in securities and assets, with depositaries and subject to conditions as provided for in part 6 of this chapter, an amount not less than the reserves on its outstanding life insurance policies and annuity contracts…

(1) In the case of a plan of life insurance that provides for future premium determination, the amounts of which are to be determined by the insurer based on then estimates of future experience, or in the case of a plan of life insurance or annuity that is of a nature that the mi…

The commissioner shall adopt rules necessary to implement the provisions of this part, including but not limited to adopting the valuation manual.

In any determination of the financial condition of an insurer, there must be allowed as assets only assets that are owned by the insurer and that consist of: (1) cash in the possession of the insurer or in transit under its control and including the true balance of any deposit in…

In addition to assets impliedly excluded by the provisions of 33-2-501, the following expressly may not be allowed as assets in any determination of the financial condition of an insurer: (1) goodwill, trade names, and other like intangible assets; (2) advances to officers, other…

Assets may be allowed as deductions from corresponding liabilities, liabilities may be charged as deductions from assets, and deductions from assets may be charged as liabilities, in accordance with the form of annual statement applicable to the insurer as prescribed by the commi…

In any determination of the financial condition of an insurer, capital stock and liabilities to be charged against its assets shall include: (1) the amount of its capital stock outstanding, if any; (2) the amount, estimated consistent with the provisions of this code, necessary t…

(1) As to insurance against loss or damage to property, except as provided in 33-2-513, and as to all general casualty insurance and surety insurance, every insurer shall maintain an unearned premium reserve on all policies in force. (2) The commissioner may require that such res…

As to marine and transportation insurance, the entire amount of premiums on trip risks not terminated shall be deemed unearned and the commissioner may require the insurer to carry a reserve equal to 100% of premiums on trip risks written during the month ended as of the date of …

(1) For all disability insurance policies, the insurer shall maintain an active life reserve that places a sound value on its liabilities under the policies and that may not be less than the pro rata gross unearned premiums for the policies. (2) The commissioner may promulgate ru…

If loss experience shows that an insurer's loss reserves, however computed or estimated, are inadequate, the commissioner shall require the insurer to maintain loss reserves in such increased amount as is needed to make them adequate.

(1) In addition to an adequate reserve as to outstanding losses as required under 33-2-511, a title insurer shall maintain a guaranty fund or unearned premium reserve of not less than an amount computed as follows: (a) Ten percent of the total amount of the risk premiums written …

(1) (a) In determining the financial condition of a property and casualty insurer for the purpose of applying the provisions of this chapter and in any financial statement or report of an insurer, loss reserves and loss expense reserves at least equal to the amounts required unde…

The following deposits of insurers when made through the commissioner must be accepted and held and are subject to the provisions of this part: (1) deposits required under this code for authority to transact insurance in this state; (2) deposits of domestic insurers when required…

Such deposits shall be held for purposes as follows: (1) Deposits made in this state under 33-2-111 shall be held for the purpose stated in such section. (2) A deposit made in this state by a domestic insurer transacting insurance in another state, province, or country and as req…

(1) All deposits required under 33-2-111 for authority to transact insurance in this state must consist of certificates of deposit or the following securities: (a) United States or Canadian government bonds, notes, warrants, or other evidences of indebtedness that are direct obli…

(1) Deposits made in this state under this code must be made through the office of the commissioner or under custodial arrangements as required or approved by the commissioner consistent with the purposes of the deposit. The deposit must be made with a bank or trust company locat…

(1) The commissioner shall give to the depositing insurer vouchers as to all assets and securities deposited by it in this state through the commissioner as provided in this code. (2) The commissioner shall keep a record of the assets and securities comprising each deposit, showi…

All securities not negotiable by delivery and deposited under this code must be duly assigned to the commissioner. In the case of securities held under custodial arrangements outside this state pursuant to 33-2-604(2), the custodian's receipt for the securities must be delivered,…

The commissioner may, prior to acceptance for deposit of any particular asset or security or at any later time while deposited, have the asset or security appraised or valued by competent appraisers. The reasonable costs of any appraisal or valuation must be borne by the insurer.

So long as the insurer remains solvent and is in compliance with this code it may: (1) demand, receive, sue for, and recover the income from the assets or securities deposited; (2) exchange and substitute for the deposited assets or securities, or any part thereof, other eligible…

No judgment creditor or other claimant of an insurer shall have the right to levy upon any of the assets or securities held in this state as a deposit for the protection of the insurer's policyholders or policyholders and creditors. As to deposits pursuant to the retaliatory law,…

If for any reason the market value of assets and securities of an insurer held on deposit in this state or in another state under custodial arrangements authorized by 33-2-604(2) falls below the amount required under this code to be held, the insurer shall promptly deposit other …