House Bill No. introduced by N. Nicol aims to revise insurance laws in Montana to enhance competition in the workers' compensation market. The bill amends Section 33-16-1020 of the Montana Code Annotated (MCA) to include workers' compensation plans among those that the state auditor must consider when assessing market concentration. Specifically, it includes Plan No. 3, the state fund, in the evaluation of competitive markets. The bill establishes that a competitive market is presumed to exist unless the commissioner determines otherwise after a hearing, and it introduces annual measurements of market concentration using the Herfindahl-Hirschman index for both Plan No. 2 and Plan No. 3.

Additionally, the bill outlines corrective measures that the commissioner can implement if a lack of competition is confirmed, such as promoting new insurers, limiting large mergers, and enhancing consumer education regarding insurance options. It also allows for the prohibition or limitation of premium writings by producer agencies to monopoly carriers until competition is restored. The commissioner is required to notify all stakeholders involved in workers' compensation in the state upon taking action to improve market concentration. Overall, the bill seeks to ensure a more competitive insurance market for workers' compensation in Montana.

Statutes affected:
LC Text: 33-16-1020
HB0727_1(1): 33-16-1020
HB0727_1(2): 33-16-1020
HB0727_1(3): 33-16-1020
HB0727_1(4): 33-16-1020
HB0727_1: 33-16-1020