HOUSE BILL NO. 47

INTRODUCED BY S. ANDERSON

BY REQUEST OF THE STATE AUDITOR

A BILL FOR AN ACT ENTITLED: "AN ACT CREATING A STATUTE OF LIMITATIONS FOR ACTIONS BROUGHT BY THE STATE AUDITOR FOR VIOLATIONS OF THE STATE INSURANCE CODE; AND AMENDING SECTION 33-1-701, MCA."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 33-1-701, MCA, is amended to read:

"33-1-701. Hearings -- discretion -- written demand -- limitations on actions. (1) The commissioner may hold hearings for any purpose within the scope of this code considered necessary.

(2) The commissioner shall hold a hearing if required by any provision or upon written demand by a person aggrieved by any act, threatened act, or failure to act or by any report, rule, or order by the commissioner, other than an order for holding a hearing, an order on a hearing, or an order pursuant to a hearing. The person's demand must specify the grounds relied upon as a basis for the relief sought at the hearing, and unless postponed by mutual consent, the hearing must be held within 30 days after receipt by the commissioner of the demand for a hearing.

(3) If within the 30-day period the commissioner does not either grant the hearing or issue an order refusing to set the hearing , then the hearing must be considered to have been refused.

(4) Unless otherwise provided by law, the department shall commence an action for a violation of the insurance code within 2 years of the date of the violation or within 2 years after the department discovers the violation or through the use of reasonable diligence should have discovered the violation, whichever occurs last. Regardless of when the department discovers a violation or should have discovered a violation through the use of reasonable diligence, an action may not be commenced by the department unless it is brought within 5 years of the date of the violation ."

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