Montana Life Insurance

Investing in life insurance can help you plan for your family's future. Insurance laws and regulations vary by state, and you can protect yourself and your family by understanding the rules that will apply to your policy. If you're purchasing life insurance in Montana, you may want to learn more about the laws and agencies that regulate the insurance industry. 

Montana Life Insurance Rules and Specifics 

Insurance in Montana is controlled by the laws found in Title 33 of the Montana Code and regulated by the Commissioner of Securities and Insurance (CSI). The office of the CSI is also able to make administrative rules regulating insurance.

Chapter 20 of Title 33 contains laws that apply specifically to life insurance, and insurance companies doing business in Montana must follow these laws. The following are some laws that apply to Montana life insurance policies.

Grace Period

Montana law requires life insurance companies to offer a 30-day grace period if payments on a life insurance policy are late. However, if the policyholder dies with unpaid premiums during a grace period, the late payment may be deducted from the policy payout. 

Notice of Cancellation 

If a company is going to cancel a policy because of unpaid premiums, it must notify the policyholder at least 30 days in advance. The notice must be in writing. The 30 days can be concurrent with the grace period mentioned above.

Incontestability 

If a life insurance policy is in place for more than two years and the insured person dies due to an accident, the insurance company must pay the policy benefit. The only exception is for the nonpayment of premiums. 

Life Insurance Resources in Montana 

Montana residents with questions or concerns about life insurance may consider contacting the following organizations: 

• Commissioner of Securities and Insurance is a state agency designed to protect consumers. It regulates the insurance industry and prosecutes companies violating state laws and regulations. Consumers can file complaints about an insurer with the agency. 
• Office of Consumer Protection with the Montana Department of Justice enforces laws on fraud and deceptive business practices. It also seeks to educate the public and assists in drafting new consumer protection laws. Members of the public can file a complaint about a business online.