This bill establishes a legal duty of cooperation for insured individuals and third-party claimants when interacting with insurers regarding claims and the recovery of benefits under insurance policies. It specifies that if an insured or third-party claimant breaches this duty, the insurer can assert this breach as an affirmative defense in any legal action initiated under Section 33-18-242, MCA, which pertains to claims alleging the insurer's breach of contract or breach of the implied covenant of good faith and fair dealing.

Additionally, the bill allows insurers to present evidence related to the conduct of the insured or third-party claimant in any legal proceedings under the same section. It amends Section 33-18-242, MCA, to incorporate these provisions and stipulates that the bill will take effect immediately upon passage.

Statutes affected:
SB0165_1.pdf: 33-18-242
SB0165_2.pdf: 33-18-242
Amended: 33-18-242
Introduced: 33-18-242