Unofficial Draft Copy
**** As of: 11/06/2024, 12:34:05
69th Legislature 2025 Drafter: Jameson Walker, **** LC 0197
1 **** BILL NO. ****
2 INTRODUCED BY ****
3
4 A BILL FOR AN ACT ENTITLED: “AN ACT REVISING INSURANCE LAWS TO ALLOW INSURERS TO
5 PROVIDE FOR A BENEFIT OR PREMIUM REDUCTION TO A POLICYHOLDER RELATING TO FIRE
6 PREVENTION; AMENDING SECTIONS 33-15-1108, 33-16-203, AND 33-18-210, MCA.”
7
8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
9
10 NEW SECTION. Section 1. Premium reduction for homeowners in wildland-urban interface
11 areas. (1) For homeowners insurance, an insurer may provide a benefit or a premium reduction to a
12 policyholder relating to fire preventative measures. Fire preventative measures may include, but are not limited Commented [JW1]: This could be moved to (3), below,
by creating a definition for “fire preventative measures”.
13 to any of the following:
14 (a) using fire resistive or noncombustible building materials in construction, including
15 noncombustible roofing or coating;
16 (b) maintaining an adequate outside water source;
17 (c) providing annually, if requested by the insurer, confirmation that the insured has employed
18 defensible space landscaping around the insured's structures; and
19 (d) compliance with any local, state, or federal fire prevention or community preparedness
20 programs.
21 (2) An insurer must include the benefit or premium reduction in writing to the policyholder as
22 provided in this section. A premium reduction or a benefit provided by an insurer under this section does not
23 constitute an illegal rebate under 33-18-210.
24 (3) For purposes of this section the following terms apply:
25 (a) "Benefit" means any rebate, discount, abatement, credit, reduction of premium, or other
26 advantage to the policyholder provided under the terms of a fire preventative agreement.
27 (b) "Policyholder" a person who is a present named insured in a homeowners' property insurance
28 policy.
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 Unofficial Draft Copy
**** As of: 11/06/2024, 12:34:05
69th Legislature 2025 Drafter: Jameson Walker, **** LC 0197
1
2 Section 2. Section 33-15-1108, MCA, is amended to read:
3 "33-15-1108. Limitation on midterm premium increases. (1) In any case involving property or Commented [JW2]: I have included this statute mostly
for educational purposes – it only applies to midterm
4 casualty insurance that is subject to this part, the insurer may not unilaterally increase the rate charged or premium increases. I don’t think the final bill will need
to amend this.
5 decrease the coverage provided for the contract period unless:
6 (a) there is a change in risk during that period because of the addition or removal of persons or
7 property that was included in the rate at last renewal;
8 (b) the risk was misrepresented by the insured; or
9 (c) the insured requests a policy change that increases the rate because of that specific request.
10 (2) This section does not prohibit the cancellation of a policy for any other reason permitted by the
11 policy or by law during an initial policy period not to exceed 60 days."
12
13 Section 3.Section 2. Section 33-16-203, MCA, is amended to read:
14 "33-16-203. Rates filed. (1) Every insurer, rating organization, or advisory organization shall file with
15 the commissioner all rates intended for use within this state, together with supporting data sufficient to
16 substantiate the filing. The filing required by this subsection may be made by rating organizations on behalf of
17 their members and subscribers. However, this provision does not prohibit a member or subscriber from filing
18 rates on its own behalf. Any deviations from a rating organization's rates by a member or subscriber must be
19 filed with the commissioner and must be accompanied by supporting data.
20 (2) Rates filed must provide for a premium reduction to:
21 (a) qualified insured operators 55 years of age or older in accordance with 33-16-222; or
22 (b) qualified members of the Montana national guard in accordance with 33-16-230.
23 (3) Rates may provide a premium reduction for fire preventative measures taken by the insured
24 under [section 1]."
25
26 Section 4.Section 3. Section 33-18-210, MCA, is amended to read:
27 "33-18-210. Unfair discrimination and rebates prohibited for title, property, casualty, or surety
28 insurance -- exceptions -- limitations. (1) Except as provided in subsections (3), (4), and (11)(a), a title,
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 Unofficial Draft Copy
**** As of: 11/06/2024, 12:34:05
69th Legislature 2025 Drafter: Jameson Walker, **** LC 0197
1 property, casualty, or surety insurer or an employee, representative, or insurance producer of an insurer may
2 not, as an inducement to purchase insurance or after insurance has been effected, pay, allow, or give or offer to
3 pay, allow, or give, directly or indirectly, a:
4 (a) rebate, discount, abatement, credit, or reduction of the premium named in the insurance policy;
5 (b) special favor or advantage in the dividends or other benefits to accrue on the policy; or
6 (c) valuable consideration or inducement not specified in the policy, except to the extent provided
7 for in an applicable filing with the commissioner as provided by law.
8 (2) Except as provided in subsections (3), (4), and (11)(a), an insured named in a policy or an
9 employee of the insured may not knowingly receive or accept, directly or indirectly, a:
10 (a) rebate, discount, abatement, credit, or reduction of premium;
11 (b) special favor or advantage; or
12 (c) valuable consideration or inducement.
13 (3) The prohibitions in subsections (1) and (2) do not apply to a benefit provided for by a telematics
14 agreement as provided in 33-23-221 through 33-23-226 or a premium reduction for fire preventative measures
15 as provided in [section 1].
16 (4) The prohibitions under subsections (1) and (2) do not apply to an active, retired, or honorably
17 separated member of the United States armed forces as described in 33-18-217(1)(a) or to a spouse, surviving
18 spouse, dependent, or heir of a United States armed forces member as provided in 33-18-217.
19 (5) An insurer may not make or permit unfair discrimination in the premium or rates charged for
20 insurance, in the dividends or other benefits payable on insurance, or in any other of the terms and conditions
21 of the insurance either between insureds or property having like insuring or risk characteristics or between
22 insureds because of race, color, creed, religion, or national origin.
23 (6) This section may not be construed as prohibiting the payment of commissions or other
24 compensation to licensed insurance producers or as prohibiting an insurer from allowing or returning lawful
25 dividends, savings, or unabsorbed premium deposits to its participating policyholders, members, or subscribers.
26 (7) An insurer may not make or permit unfair discrimination between individuals or risks of the
27 same class and of essentially the same hazards by refusing to issue, refusing to renew, canceling, or limiting
28 the amount of insurance coverage on a property or casualty risk because of the geographic location of the risk,
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1 unless:
2 (a) the refusal, cancellation, or limitation is for a business purpose that is not a mere pretext for
3 unfair discrimination; or
4 (b) the refusal, cancellation, or limitation is required by law or regulatory mandate.
5 (8) An insurer may not make or permit unfair discrimination between individuals or risks of the
6 same class and of essentially the same hazards by refusing to issue, refusing to renew, canceling, or limiting
7 the amount of insurance coverage on a residential property risk or on the personal property contained in the
8 residential property, because of the age of the residential property, unless:
9 (a) the refusal, cancellation, or limitation is for a business purpose that is not a mere pretext for
10 unfair discrimination; or
11 (b) the refusal, cancellation, or limitation is required by law or regulatory mandate.
12 (9) An insurer may not refuse to insure, refuse to continue to insure, or limit the amount of
13 coverage available to an individual because of the sex or marital status of the individual. However, an insurer
14 may take marital status into account for the purpose of defining persons eligible for dependents' benefits.
15 (10) An insurer may not terminate or modify coverage or refuse to issue or refuse to renew a
16 property or casualty policy or contract of insurance solely because the applicant or insured or any employee of
17 either is mentally or physically impaired. However, this subsection does not apply to accident and health
18 insurance sold by a casualty insurer, and this subsection may not be interpreted to modify any other provision
19 of law relating to the termination, modification, issuance, or renewal of any insurance policy or contract.
20 (11) (a) An insurer may not refuse to insure, refuse to continue to insure, charge higher rates, or
21 limit the amount of coverage available to an individual under a private passenger automobile policy based
22 solely on adverse information contained in an individual's claims history and driving record that is 3 years old or
23 older. An insurer may provide discounts to an insured under a private passenger automobile policy based on
24 favorable aspects of an insured's claims history.
25 (b) An insurer may not refuse to insure, refuse to continue to insure, charge higher rates, or limit
26 the amount of coverage available under a commercial automobile policy based solely on adverse information
27 contained in the loss experience or an insured's driving records that is 5 years old or older. An insurer may
28 provide discounts to an insured under a commercial automobile policy based on favorable aspects of an
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1 insured's claims history.
2 (c) An insurer may not refuse to insure, refuse to continue to insure, charge higher rates, or limit
3 the amount of coverage available under a personal homeowner policy based solely on adverse information
4 contained in the loss experience that is 7 years old or older. An insurer may provide discounts to an insured
5 under a personal homeowner policy based on favorable aspects of an insured's claims history.
6 (d) As used in subsection (11)(a), "private passenger automobile policy" means an automobile
7 insurance policy issued to individuals or families but does not include policies known as commercial automobile
8 policies.
9 (e) As used in subsection (11)(c), "personal homeowner policy" means property insurance under
10 33-1-210 that is sold by an insurer for personal, family, or household purposes.
11 (12) An insurer may not charge points or surcharge a private passenger motor vehicle policy
12 because of a claim submitted under the insured's policy if the insured was not at fault.
13 (13) (a) An insurer that provides personal lines insurance for an insured may not consider the
14 insured's inquiries or claims made to any insurer that did not result in a payment by any insurer in considering
15 an application for, renewal of, or change in an insurance policy as defined in 33-15-102.
16 (b) This subsection (13) does not apply to an insurer's consideration of a claim that was the basis
17 for a criminal or civil insurance fraud action by a state or regulatory enforcement entity.
18 (c) (i) For the purposes of this subsection (13), the term "personal lines insurance" means vehicle
19 insurance under 33-1-206(1)(a) and property insurance under 33-1-210 that is sold by an insurer for personal,
20 family, or household purposes.
21 (ii) The term does not include disability insurance or insurance for commercial, business, or
22 professional services, products, or activities."
23
24
25 NEW SECTION. Section 5. Codification instruction. [Section 1] is intended to be codified as an
26 integral part of Title 33, and the provisions of Title 33 apply to [section 1].
27 - END -
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