SENATE BILL NO. 132
INTRODUCED BY J. HERTEL
BY REQUEST OF THE STATE AUDITOR
AN ACT REMOVING MOST INSURANCE FEES AND INSURANCE LICENSE FEES AND REPLACING THEM WITH A FLAT FEE FOR INSURERS APPLYING FOR OR RENEWING A CERTIFICATE OF AUTHORITY; ESTABLISHING CONTINUING EDUCATION COURSE REVIEW AND LATE RENEWAL FEES IN STATUTE RATHER THAN BY RULE WITHOUT INCREASING THE FEES; AMENDING SECTIONS 33-2-117, 33-2-126, 33-2-701, 33-2-708, 33-3-202, 33-3-203, 33-4-505, 33-17-211, 33-17-212, 33-17-214, 33-17-216, 33-17-221, 33-17-231, 33-17-301, 33-17-505, 33-17-1204, AND 33-17-1205, MCA; AND PROVIDING A DELAYED EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 33-2-117, MCA, is amended to read:
"33-2-117. Continuance Renewal, expiration, reinstatement, and amendment of certificate of authority. (1)
Certificates A certificate of authority issued or renewed under this code must continue in force as long as the insurer is
entitled thereto under this code and until suspended, or revoked, or otherwise terminated. A certificate is subject to
continuance renewal by the insurer each year by payment on or prior to March 1 of the continuation fee provided for in
33-2-708.
(2) If not continued by the insurer, the certificate of authority expires at midnight on May 31 following failure of the
insurer to continue it in force. The commissioner shall promptly notify the insurer of its failure to pay the continuation fee
that can result in the expiration of its certificate of authority.
(3) The commissioner may reinstate a certificate of authority that the insurer has inadvertently permitted to expire after
the insurer cures any failures resulting in expiration and upon payment of the a fee of $100 for reinstatement in addition to
the current continuation fee, as fee provided for in 33-2-708. Otherwise, the insurer may be granted another certificate of
authority only after filing an application and meeting all other requirements for an original certificate of authority in this
state.
(4) The commissioner may amend a certificate of authority at any time to accord with changes in the insurer's charter of insuring powers."
Section 2. Section 33-2-126, MCA, is amended to read:
"33-2-126. Admission as domestic insurer -- conversion to foreign insurer. (1) An insurer organized under the laws
of any other state and admitted to do business in this state for the purposes of writing insurance may become a domestic
insurer by complying with all of the laws relative to the organization and licensing of a domestic insurer of the same type,
and designating its principal place of business in this state, and paying the filing fees specified in 33-2-708. An insurer
complying with this subsection is entitled to a certificate of redomestication and a certificate of authority to transact
business in this state, is subject to the authority and jurisdiction of this state, and has the same rights and obligations as
other domestic insurers.
(2) A domestic insurer may, upon approval of the commissioner, transfer its domicile to any other state in which it is
admitted to transact insurance. If the insurer is otherwise qualified, the commissioner shall approve a proposed transfer
unless he the commissioner determines a transfer is not in the interest of the policyholders of this state. Upon a transfer, the
insurer ceases to be a domestic insurer."
Section 3. Section 33-2-701, MCA, is amended to read:
"33-2-701. Annual statement -- revocation or fine for failure to file -- penalty for perjury. (1) Each authorized
insurer shall annually on or before March 1 file with the commissioner a full and true statement of its financial condition,
transactions, and affairs as of the preceding December 31. The statement must be in the general form and context as is
required or not disapproved by the commissioner, as is in current use for similar reports to states in general with respect to
the type of insurer and kinds of insurance to be reported upon, and as supplemented for additional information required by
the commissioner. The statement must be completed in accordance with the annual statement instructions and the
accounting practices and procedures manual of the national association of insurance commissioners. The statement must be
accompanied by an actuarial opinion attesting to the adequacy of the insurer's reserves. The statement must be verified by
the oath of the insurer's president or vice-president vice president and secretary or, if a reciprocal insurer, by the oath of the
attorney-in-fact or its like officers if a corporation. The commissioner may waive the verification under oath.
(2) (a) Each domestic insurer shall file electronic diskette versions of its annual and quarterly financial statements with the national association of insurance commissioners. The filing date for submission of the annual statement diskette is March 1. The filing dates for the quarterly statement diskettes are as follows:
(i) the first calendar quarter filing is due May 15;
(ii) the second calendar quarter filing is due August 15; and
(iii) the third calendar quarter filing is due November 15.
(b) The commissioner may exempt insurers that operate only in Montana from these filing requirements.
(3) The statement of an alien insurer must relate only to its transactions and affairs in the United States unless the commissioner requires otherwise. If the commissioner requires a statement as to an alien insurer's affairs throughout the world, the insurer shall file the statement with the commissioner as soon as reasonably possible. The statement must be verified by the insurer's United States manager or other authorized officer.
(4) The commissioner may refuse to accept the fee for continuance renewal of the insurer's certificate of authority, as
provided in 33-2-117, or may suspend or revoke the certificate of authority of any insurer failing to file its annual statement
when due or within an extension of time that the commissioner may grant.
(5) Any director, officer, or insurance producer, or employee of any company who subscribes to, makes, or concurs in
making or publishing any annual statement or any other statement required by law knowing that the statement contains any
material statement which that is false shall be punished by a fine of not more than $1,000.
(6) At time of filing, the insurer shall pay to the commissioner the fee for filing its statement as prescribed in 33-2-708.
(7)(6) The commissioner may impose a fine not to exceed $100 a day for each day after March 1 that an insurer fails to
file the annual statement referred to in subsection (1). The fine may not exceed a maximum of $1,000."
Section 4. Section 33-2-708, MCA, is amended to read:
"33-2-708. Fees and licenses. (1) (a) Except as provided in 33-17-212(2), the commissioner shall collect a fee of
$1,900 from each insurer applying for or annually renewing a certificate of authority to conduct the business of insurance in
Montana. and the persons served shall pay to the commissioner the following fees:
(a) certificates of authority:
(i) for filing applications for original certificates of authority, articles of incorporation, except original articles of
incorporation of domestic insurers as provided in subsection (1)(b), and other charter documents, bylaws, financial
statement, examination report, power of attorney to the commissioner, and all other documents and filings required in
connection with the application and for issuance of an original certificate of authority, if issued:
(A) domestic insurers $600.00
(B) foreign insurers 600.00
(ii) annual continuation of certificate of authority 600.00
(iii) reinstatement of certificate of authority 25.00
(iv) amendment of certificate of authority 50.00
(b) articles of incorporation:
(i) filing original articles of incorporation of a domestic insurer, exclusive of fees required to be paid by the corporation
to the secretary of state 20.00
(ii) filing amendment of articles of incorporation, domestic and foreign insurers, exclusive of fees required to be paid to
the secretary of state by a domestic corporation 25.00
(c) filing bylaws or amendment to bylaws when required 10.00
(d) filing annual statement of insurer, other than as part of application for original certificate of authority 25.00
(e) insurance producer's license:
(i) application for original license, including issuance of license, if issued 15.00
(ii) appointment of insurance producer, each insurer, electronically filed 10.00
(iii) appointment of insurance producer, each insurer, nonelectronically filed 15.00
(iv) temporary license 15.00
(v) amendment of license, excluding additions to license, or reissuance of
master license 15.00
(vi) termination of insurance producer, each insurer, electronically filed 10.00
(vii) termination of insurance producer, each insurer, nonelectronically filed 15.00
(f)(b) The commissioner shall collect certain additional fees as follows:
(i) nonresident insurance producer's license:
(i)(A) application for original license, including issuance of license, if issued 100.00
(ii) appointment of insurance producer, each insurer, electronically filed 10.00
(iii) appointment of insurance producer, each insurer, nonelectronically filed 15.00
(iv)(B) annual renewal of license 10.00
(v) amendment of license, excluding additions to license, or reissuance of
master license 15.00
(vi) termination of insurance producer, each insurer, electronically filed 10.00
(vii) termination of insurance producer, each insurer, nonelectronically filed 15.00
(g) examination, if administered by the commissioner, for license as insurance producer, each examination 15.00
(h)(ii) surplus lines insurance producer license:
(i)(A) application for original license and for issuance of license, if issued 50.00
(ii)(B) annual renewal of license 50.00
(i) adjuster's license:
(i) application for original license and for issuance of license, if issued 15.00
(ii) annual renewal of license 15.00
(j) insurance vending machine license, each machine, each year 10.00
(k) motor club representative's license:
(i) application for original license and issuance of license, if issued 15.00
(ii) annual renewal of license 15.00
(l) commissioner's certificate under seal, except when on certificates of authority
or licenses 10.00
(m)(iii) .50 for each page for copies of documents on file in the commissioner's office.
, per page .50
(n) policy forms:
(i) filing each policy form 25.00
(ii) filing each application, certificate, enrollment form, rider, endorsement, amendment, insert page, schedule of rates,
and clarification of risks 10.00
(iii) maximum charge if policy and all forms submitted at one time or resubmitted for approval within 180 days,
provided that all additional forms relate to the same policy 100.00
(2) (a) The commissioner shall establish by rule fees commensurate with costs for filing documents and conducting the
course reviews required by 33-17-1204 and 33-17-1205 charge a fee of $75 for each course or program submitted for
review as required by 33-17-1204 and 33-17-1205, but may not charge more than $1,500 to a sponsoring organization
submitting courses or programs for review in any biennium.
(b) Insurers and associations composed of members of the insurance industry are exempt from the charge in subsection (2)(a).
(3) The commissioner shall establish by rule an annual accreditation fee to be paid by each domestic and foreign insurer
when it submits a fee for annual continuation of its certificate of authority.
(4) (a) Except as provided in subsection (4)(b), the
(3) The commissioner shall promptly deposit with the state treasurer to the credit of the general fund all fines and
penalties, and those amounts received pursuant to 33-2-311, 33-2-705, and 33-2-706,. and any fees and examination and
miscellaneous charges that are All other fees collected by the commissioner pursuant to Title 33 and the rules adopted
under Title 33, except that all fees for filing documents and conducting the course reviews required by 33-17-1204 and
33-17-1205 must be deposited in the state special revenue fund pursuant to 33-17-1207 to the credit of the state auditor's
office.
(b) The accreditation fee required by subsection (3) and the annual renewal of license fee established in subsection
(1)(f)(iv) must be turned over promptly to the state treasurer who shall deposit the money in the state special revenue fund
to the credit of the commissioner's office. The accreditation fee funds must be used only to pay the expenses of the
commissioner's office in discharging the administrative and regulatory duties that are required to meet the minimum
financial regulatory standards established by the national association of insurance commissioners, subject to the applicable
laws relating to the appropriation of state funds and to the deposit and expenditure of money. The commissioner is
responsible for the proper expenditure of the accreditation money and the renewal fee.
(5) (4) All fees are considered fully earned when received. In the event of overpayment, only those amounts in excess of
$10 will be refunded."
Section 5. Section 33-3-202, MCA, is amended to read:
"33-3-202. Articles of incorporation -- filing and approval. (1) The incorporators of a proposed domestic insurer
shall deliver the quadruplicate originals of the articles of incorporation to the commissioner together with the filing fees
therefor specified in 33-2-708. The commissioner shall examine the proposed articles of incorporation. If the commissioner
finds that the articles comply with this chapter and are not in conflict with the constitution and laws of the United States or
of this state, he the commissioner shall endorse his approval upon approve in writing each set of the articles, except that if
the commissioner finds that the proposed insurer would not be eligible for a certificate of authority under 33-2-112, he the
commissioner shall refuse to approve the articles of incorporation and shall return them to the proposed incorporators
together with a written statement of the reasons for such refusal. If approved by him, the The commissioner shall then
forward the approved articles of incorporation, with his approval endorsed thereon, to the incorporators. The incorporators
shall forthwith subsequently file one set of the articles of incorporation with the secretary of state, one set with the
commissioner, bearing the certification of the secretary of state, and one set with the county clerk of the county wherein is
to be located in which the corporation's principal place of business will be located;, and the remaining set of articles shall
must be made a part of the corporation's record.
(2) If the commissioner finds that the proposed articles of incorporation do not comply with law, he the commissioner
shall refuse to approve the same proposed articles of incorporation and shall return all sets of the proposed articles of
incorporation to the proposed incorporators together with a written statement of the reasons for his the refusal to approve.
(3) The corporation shall have legal existence as such enter into legal existence upon the issuance of the certificate of
incorporation by the secretary of state and the completion of the filings referred to in subsection (1) above, but it shall the
corporation may not transact business as an insurer until it has qualified for and received from the commissioner a
certificate of authority as provided in this code.
(4) A copy of the certificate of incorporation, duly certified by the secretary of state, shall be is admissible in all the
courts of this state as prima facie evidence of due incorporation."
Section 6. Section 33-3-203, MCA, is amended to read:
"33-3-203. Amendment of articles of incorporation -- grounds for disapproval. (1) A domestic stock insurer may
amend its articles of incorporation for any lawful purpose by written authorization of the holders of a majority of the voting
power of its outstanding capital stock or by affirmative vote of such a majority voting at a lawful meeting of stockholders of
which the notice given to stockholders included due notice of the proposal to amend.
(2) A domestic mutual insurer heretofore or hereafter formed may amend its articles of incorporation for any lawful
purpose by affirmative vote of a majority of those of its members present or represented by proxy at a lawful meeting of its
members of which the notice given members included due notice of the proposal to amend.
(3) Upon adoption of such an amendment the insurer shall make in quadruplicate under its corporate seal a certificate
(sometimes referred to as "articles of amendment") setting forth such the amendment and the date and manner of the
amendment's adoption thereof, which. The certificate shall must be executed by the insurer's president or vice-president
vice president and secretary or assistant secretary and acknowledged by them before an officer authorized by law to take
acknowledgments of deeds. The insurer shall deliver to the commissioner the quadruplicate originals of the certificate,
together with the filing fee specified therefor in 33-2-708. If he the commissioner finds that the certificate and amendments
comply with law, the commissioner shall endorse his approval upon approve in writing each of the quadruplicate originals
and return them to the insurer. The insurer shall forthwith subsequently file one set of such endorsed articles of amendment
with the secretary of state, one set with the commissioner, bearing the certification of the secretary of state, and one set with
the county clerk of the county in which is located the insurer's principal place of business will be located, and shall retain
the remaining set in the corporate records. The amendment shall be is effective when such the filings have been completed.
(4) If the commissioner finds that the proposed amendment or certificate does not comply with the law, he shall the
commissioner may not approve the same amendment or certificate and shall return the quadruplicate certificate of
amendment to the insurer together with his a written statement of reasons for nonapproval. The filing fee shall not be is not
returnable.
(5) If an amendment of articles of incorporation would reduce the authorized capital stock of a stock insurer below the
amount thereof then outstanding, the commissioner shall may not approve the amendment if he the commissioner has
reason to believe that the interests of policyholders or creditors of the insurer would be materially prejudiced by such the
reduction. If any such a reduction of capital stock is effectuated, the insurer may require return of the original certificates of
stock held by each stockholder for exchange for new certificates for such the number of shares as such the stockholder is
then entitled in the proportion that the reduced capital bears to the amount of capital stock outstanding as of immediately
prior to the effective date of such the reduction."
Section 7. Section 33-4-505, MCA, is amended to read:
"33-4-505. Certificate of authority required -- issuance -- continuation -- fee. (1) A farm mutual insurer may not insure any risk in this state unless it then holds a subsisting certificate of authority issued to it by the commissioner.
(2) Upon application, therefor the commissioner shall issue such a certificate of authority to every insurer qualified
therefor under this chapter.
(3) Every such certificate of authority continues in force as long as the farm mutual insurer is entitled thereto under this
chapter and until suspended, revoked, or otherwise terminated; subject, however, to continuance of the certificate by the
farm mutual insurer each year by payment before May 15 of the continuation fee of $10 if a county mutual insurer or $25 if
a state mutual insurer, to be deposited by the commissioner with the state treasurer to the credit of the state general fund.
(4) If the farm mutual insurer does not continue its certificate of authority in accordance with subsection (3), its certificate of authority expires at midnight on May 31 next following its failure to continue it in force. The commissioner shall promptly notify a farm mutual insurer that has not continued its certificate of authority of the impending expiration of its certificate of authority.
(5) A certificate of authority is subject to suspension or revocation by the commissioner for violation of or
noncompliance with any provision of this chapter or referred to herein in this chapter.
(6) The commissioner may in his discretion reinstate a certificate of authority that a farm mutual insurer has
inadvertently permitted to expire, after the farm mutual insurer has fully cured all failures that resulted in the expiration and
upon payment by the farm mutual insurer of the fee for reinstatement as provided in 33-2-708 in addition to the current
continuation fee as provided in subsection (3). If a certificate is not reinstated, the commissioner may grant a farm mutual
insurer another certificate of authority only after the farm mutual insurer files an application for a certificate of authority
and meets all other requirements for an original certificate of authority in this state.
(7) The commissioner may amend a certificate of authority at any time to accord with changes in the farm mutual insurer's charter of insuring powers."
Section 8. Section 33-17-211, MCA, is amended to read:
"33-17-211. General qualifications -- application for license. (1) An individual applying for a license shall apply on a form specified by the commissioner and declare under penalty of refusal, suspension, or revocation of the license that statements made in the application are true, correct, and complete to the best of the individual's knowledge and belief. Before approving the application, the commissioner shall verify that the individual:
(a) is 18 years of age or older;
(b) has not committed an act that is a ground for refusal, suspension, or revocation as set forth in 33-17-1001;
(c) has paid the license fees stated in 33-2-708;
(d) has successfully passed the examinations for each kind of insurance for which the individual has applied within 12 months of application;
(e) is a resident of this state or of another state that grants similar privileges to residents of this state. Licenses issued based upon Montana state residency terminate if the licensee relocates to another state;
(f) is competent, trustworthy, and of good reputation;
(g) has experience or training or otherwise is qualified in the kind or kinds of insurance for which the applicant applies to be licensed and is reasonably familiar with the provisions of this code which govern the applicant's operations as an insurance producer; and
(h) if applying for a license as to life or disability insurance:
(i) is not a funeral director, undertaker, or mortician operating in this or any other state;
(ii) is not an officer, employee, or representative of a funeral director, undertaker, or mortician operating in this or any other state; or
(iii) does not hold an interest in or benefit from a business of a funeral director, undertaker, or mortician operating in this or any other state.
(2) A person acting as an insurance producer shall obtain a license. A person shall apply for a license on a form specified by the commissioner. Before approving the application, the commissioner shall verify that:
(a) the person meets the requirements listed in subsection (1);
(b) the person has paid the licensing fees stated in 33-2-708 for each individual licensed in conjunction with the person's license. A licensed person shall promptly notify the commissioner of each change relating to an individual listed in the license.
(c) the person has designated a licensed officer responsible for compliance by the person with the insurance laws and rules of this state;
(d) each member and employee of a partnership and each officer, director, stockholder, or employee of a corporation who is acting as an insurance producer in this state has obtained a license;
(e) (i) if the person is a partnership or corporation, the transaction of insurance business is within the purposes stated in the partnership agreement or the articles of incorporation; and
(ii) if the person is a corporation, the secretary of state has issued a certificate of existence or authorization under 35-1-1312 or filed articles of incorporation under 35-1-220.
(3) The commissioner may license as a resident insurance producer an association of licensed Montana insurance
producers, whether or not incorporated, formed and existing substantially for purposes other than insurance. The license
must be used solely for the purpose of enabling the association to place, as a resident insurance producer, insurance of the
properties, interests, and risks of the state of Montana and of other public agencies, bodies, and institutions and to receive
the customary commission for the placement. The president and secretary of the association shall apply for the license in
the name of the association, and the commissioner shall issue the license to the association in its name alone. The fee for
the license is the same as that required by 33-2-708(1)(a) for the license of an insurance producer. The commissioner may,
after a hearing with notice to the association, revoke the license if the commissioner finds that continuation of the license is
not in the public interest or that a ground listed in 33-17-1001 exists.
(4) An insurance producer using an assumed business name shall register the name with the commissioner before using it."
Section 9. Section 33-17-212, MCA, is amended to read:
"33-17-212. Examination required -- exceptions -- fees. (1) Except as provided in subsection (7)(6), an individual
applying for a license shall is required to pass a written examination. The examination must test the knowledge of the
individual concerning each kind of insurance listed in subsection (6)(5) for which application is made, the duties and
responsibilities of an insurance producer, and the insurance laws and rules of this state. The examination must be developed
and conducted under rules adopted by the commissioner.
(2) The commissioner may conduct the examination or make arrangements, including contracting with an outside
testing service, for administering the examination and collecting the fees required by 33-2-708. The commissioner may
arrange for the testing service to recover the cost of the examination from the applicant.
(3) Each individual applying for an examination shall remit the fees required by 33-2-708.
(4)(3) An individual who fails to appear for the examination as scheduled or fails to pass the examination may reapply
for an examination and shall remit all required fees and forms before being rescheduled for another examination.
(5)(4) If the applicant is a partnership or corporation, each individual who is to be named in the license as having
authority to act for the applicant in its insurance transactions under the license shall take the examination.
(6)(5) Examination of an applicant for a license must cover all of the kinds of insurance for which the applicant has
applied to be licensed, as constituted by any one or more of the following classifications:
(a) life insurance;
(b) disability insurance;
(c) property insurance. For the purposes of this provision, property insurance includes marine insurance.
(d) casualty insurance;
(e) surety insurance;
(f) credit life and disability insurance;
(g) title insurance.
(7)(6) This section does not apply to and an examination is not required of:
(a) an individual lawfully licensed as an insurance producer as to the kind or kinds of insurance to be transacted as of or immediately prior to January 1, 1961, and who continues to be licensed;
(b) an applicant for a license covering the same kind or kinds of insurance as to which the applicant was licensed in this
state, other than under a temporary license, within the 12 months immediately preceding the date of application unless the
commissioner has suspended, revoked, or refused to continue the previous license, except that this subsection (7)(b)(6)(b)
does not apply to a title insurance producer, as defined in 33-25-105;
(c) an applicant for a license as a nonresident insurance producer;
(d) an applicant for a license to sell all-risk federal crop insurance if the applicant provides certification from an appropriate governmental agency to the commissioner that the applicant is qualified to sell the insurance;
(e) transportation ticket agents of common carriers applying for a license to solicit and sell only:
(i) accident insurance ticket policies; or
(ii) insurance of personal effects while being carried as baggage on a common carrier, as incidental to their duties as transportation ticket agents;
(f) an association applying for a license under 33-17-211;
(g) a mechanical breakdown insurance producer;
(h) a service contract insurance producer; or
(i) an individual who, within 60 days of cancellation of a license issued by the state of the individual's residence, files with the commissioner a current letter of clearance certifying that the individual has passed an examination and held an insurance license in good standing in the individual's state of licensure, except that the individual shall take an examination pertaining to this state's law and each kind of insurance for which the individual has applied for a license and that is not covered under the license held in the other state."
Section 10. Section 33-17-214, MCA, is amended to read:
"33-17-214. Issuance of license -- contents -- lapse of license -- change of address. (1) The commissioner shall promptly issue a license to a person pursuant to 33-17-211 and 33-17-212.
(2) The license must state the name and address of the licensee, personal identification number, date of issuance,
general conditions relative to expiration or termination, kind of insurance covered, and such other information as the
commissioner considers necessary.
(3) The license of a partnership, corporation, or association must also state the name of each individual authorized to exercise the license powers.
(4) Each license remains in effect, unless suspended or revoked, as long as the fees required by 33-2-708 are paid.
(5) An individual who allows his license to lapse may, within 12 months from the due date of the unpaid annual fee,
apply for the same license without having to pass a written examination if he pays a penalty in the amount of twice the
unpaid annual fee.
(6)(5) A person shall inform the commissioner in writing of a change of address within 30 days of the change."
Section 11. Section 33-17-216, MCA, is amended to read:
"33-17-216. Temporary insurance producer license -- fee. (1) The commissioner may issue a temporary license to or
with respect to an individual qualified for the temporary license only as to age, residence, and trustworthiness and without
requiring the individual to take an examination, in the following cases:
(a) to the surviving spouse or next of kin or to the administrator or executor, or the employee of the administrator or executor, of a licensed insurance producer upon the insurance producer's death;
(b) to the spouse, next of kin, employee, or legal guardian of a licensed insurance producer disabled by injury or physical or mental illness;
(c) to an employee of a partnership, or officer or employee of a corporation, licensed as an insurance producer, upon the death or disability of an individual designated in the license to exercise the powers of an insurance producer;
(d) to the designee of a licensed insurance producer entering upon active service in the armed forces of the United States of America;
(e) in any other circumstance in which the commissioner finds that the public interest will best be served by issuing
such a temporary license.
(2) The temporary license must be issued upon application filed with the commissioner in the form and containing the
information as the commissioner may reasonably require and upon payment of the applicable fee as provided in 33-2-708.
(3) The temporary license must be for a period of not over 90 days, subject to extension by the commissioner in his at
the commissioner's discretion for an additional period of not more than 90 days, except that a temporary license issued
pursuant to subsection (1)(a) may be continued without payment of an additional fee until the executor or administrator
disposes of the insurance business, but not to exceed a period of 15 months. A temporary license issued to the next of kin
under subsection (1)(a) may not be extended for an additional term after the appointment and qualification of the
administrator or executor.
(4) The fee paid for the temporary license may be applied upon the fee required for a permanent license issued to the
licensee upon or prior to expiration of the temporary license and covering the same kinds of insurance."
Section 12. Section 33-17-221, MCA, is amended to read:
"33-17-221. Licensing insurance vending machines. (1) A licensed resident insurance producer may solicit
applications for and issue policies of personal travel accident insurance by means of mechanical vending machines
supervised by him the insurance producer and placed at airports, railroad stations, bus stations, and similar places where
transportation tickets are sold and of convenience to the traveling public, if the commissioner finds that:
(a) the policy to be sold provides reasonable coverage and benefits, is reasonably suited for sale and issuance through a mechanical vending machine, and use of a mechanical vending machine to sell or issue a policy in a particular proposed location would be of material convenience to the public;
(b) the type of mechanical vending machine proposed to be used is reasonably suitable and practical for the purpose;
(c) reasonable means are provided for informing the prospective purchaser of any policy of the coverage and restrictions of the policy; and
(d) reasonable means are provided for refund to the applicant or prospective applicant of money inserted in a defective mechanical vending machine and for which no insurance or a less amount than that paid for is actually received.
(2) As to each mechanical vending machine to be used to sell or issue a policy, the The commissioner shall issue to the
insurance producer a special mechanical vending machine license for each mechanical vending machine to be used to sell
or issue a policy. The license must specify the name and address of the insurer and insurance producer, the name of the
policy to be sold or issued through the mechanical vending machine, the serial number of the mechanical vending machine,
and the place where the machine will operate. The license is subject to annual continuation, expiration, suspension, or
revocation coincidentally with that of the insurance producer. The commissioner shall also revoke the license of a
mechanical vending machine if he the commissioner finds that the conditions upon which the machine was licensed, as
referred to in subsection (1), no longer exist. The license fee is as provided in 33-2-708 for each license year or part of the
year for each respective mechanical vending machine. Proof of the existence of a subsisting license must be displayed on or
about each mechanical vending machine in use in the manner that the commissioner may reasonably require."
Section 13. Section 33-17-231, MCA, is amended to read:
"33-17-231. Appointment of insurance producers -- continuation and termination. (1) Each insurer appointing an
insurance producer in this state shall file with the commissioner the appointment, specifying the kinds of insurance to be
transacted by the insurance producer for the insurer, and pay the fee as stated in 33-2-708. The appointment may be
electronically filed pursuant to rules adopted by the commissioner.
(2) Each appointment remains in effect until the insurance producer's license is revoked or otherwise terminated unless written notice of earlier termination of the appointment is filed with the commissioner by the insurer or the insurance producer. The written notice may be electronically filed pursuant to rules adopted by the commissioner. Termination of the insurer's authority in Montana also terminates the appointment.
(3) Subject to the insurance producer's contract rights, an insurer may terminate an insurance producer's appointment at any time. The insurer shall promptly give written notice of the termination to the commissioner and to the insurance producer. The commissioner may require reasonable proof that the insurer has given notice to the insurance producer.
(4) As part of the notice of termination given the commissioner, the insurer shall file with the commissioner a statement of the facts relative to the termination and the cause of termination. Any information or statement contained in the notice of termination is not admissible as evidence in any action or proceeding against the insurer or any representative of the insurer by or on behalf of any person affected by the termination."
Section 14. Section 33-17-301, MCA, is amended to read:
"33-17-301. Adjuster license -- qualifications -- catastrophe adjustments -- public adjuster. (1) A person may not
act as or hold the person out purport to be an adjuster in this state unless licensed as an adjuster under this chapter. A person
shall apply for an adjuster license to the commissioner according to forms that the commissioner prescribes and furnishes.
The commissioner shall issue the adjuster license to individuals qualified to be licensed as an adjuster upon payment of the
license fee provided in 33-2-708.
(2) To be licensed as an adjuster, the applicant:
(a) must be an individual 18 years of age or more;
(b) must be a resident of Montana or resident of another state that will permit residents of Montana regularly to act as adjusters in the other state;
(c) must be a full-time salaried employee of a licensed adjuster or a graduate of a recognized law school or have had experience or special education or training as to the handling of loss claims under insurance contracts of sufficient duration and extent reasonably to make the applicant competent to fulfill the responsibilities of an adjuster;
(d) must be trustworthy and of good character and reputation; and
(e) must have and shall maintain in this state an office accessible to the public and shall keep in the office for not less than 5 years the usual and customary records pertaining to transactions under the license. This provision does not prohibit maintenance of the office in the home of the licensee.
(3) A partnership or corporation, whether or not organized under the laws of this state, may be licensed as an adjuster if
each individual who is to exercise the adjuster license powers is separately licensed or is named in the partnership or
corporation adjuster license and is qualified for an individual adjuster license. An additional full license fee must be paid
for each individual in excess of one named in the partnership or corporation adjuster license to exercise its powers.
(4) An adjuster license or qualifications are not required for an adjuster who is sent into this state by and on behalf of an insurer or adjusting partnership or corporation for the purpose of investigating or making adjustments of a particular loss under an insurance policy or for the adjustment of a series of losses resulting from a catastrophe common to all losses.
(5) An adjuster license continues in force until expired, suspended, revoked, or terminated. The license is subject to
annual payment to the commissioner of the renewal fee required by 33-2-708, accompanied by a written request for renewal
renewal upon written request to the commissioner.
(6) The commissioner may adopt rules providing for the examination, licensure, bonding, and regulation of public adjusters."
Section 15. Section 33-17-505, MCA, is amended to read:
"33-17-505. Qualification -- fee examination. (1) In order to determine the competency of an applicant for a
consultant license, the commissioner shall require the applicant to pass an examination.
(2) The fee for taking the consultant license examination is $50. The commissioner shall deposit all fees collected in the
general fund. The fee for taking a second or subsequent examination may be no more than the cost of administering the
examination, not to exceed $50."
Section 16. Section 33-17-1204, MCA, is amended to read:
"33-17-1204. Review and approval of continuing education courses by commissioner -- advisory council. (1) The
commissioner shall, after review by and at the recommendations of the advisory council established under subsection (2),
approve only those continuing education courses, lectures, seminars, and instructional programs that the commissioner
determines would improve the product knowledge, management, ethics, or marketing capability of the licensee. Course
content, instructors, material, instructional format, and the sponsoring organization must be approved and periodically
reviewed by the commissioner. The filing fee and process for approval of a course, lecture, seminar, or instructional
program must be determined by the commissioner by rule is listed in 33-2-708(2). The commissioner shall also determine
the number of credit hours to be awarded for completion of an approved continuing education activity.
(2) The commissioner shall appoint an advisory council, pursuant to 2-15-122, consisting of one representative of the independent insurance agents of Montana, one representative of the Montana association of life underwriters, one representative of the professional insurance agents of Montana, two public members who are not directly employed by the insurance industry, one insurance producer or consultant not affiliated with any of the three listed organizations, and a nonvoting presiding officer from the department who will be appointed by the commissioner as a representative of the department. The members of the council shall serve a term of 2 years, except that the initial term of the representative from each organization is 3 years. The commissioner shall consult with the council in formulating rules and standards for the approval of continuing education activities and prior to approving specific education activities. The provisions of 2-15-122(9) and (10) do not apply to this council.
(3) In conducting periodic review of course content, instructors, material, instructional format, or a sponsoring organization, the commissioner may exercise any investigative power of the commissioner provided for in 33-1-311 or 33-1-315.
(4) If after review or investigation the commissioner determines an approved continuing education activity is not being operated in compliance with the standards established under this section, the commissioner may revoke approval, place the activity under probationary approval, or issue a cease and desist order under 33-1-318."
Section 17. Section 33-17-1205, MCA, is amended to read:
"33-17-1205. Compliance -- failure to comply. (1) Each person subject to the requirements of 33-17-1203 shall file
annually on a form supplied by the commissioner written certification as to the approved courses, lectures, seminars, and
instructional programs successfully completed by that person during the preceding calendar year. The form must be
accompanied with a filing fee established by the commissioner.
(2) The commissioner may suspend the license of any person failing to comply with subsection (1) who has not been
granted an extension under 33-17-1203 and may impose a late renewal fee in the amount of twice the annual filing fee of
$20, which is the same amount previously determined by an administrative rule in effect on November 3, 1998. The
suspension must remain in effect until the time that the person demonstrates to the satisfaction of the commissioner that the
person has complied with all the provisions of this part. If the license of an insurance producer or consultant is suspended
by reason of this section for a period exceeding 12 months, the license must be terminated upon notice to the insurance
producer or consultant.
(3) Each person providing approved courses, lectures, seminars, and instructional programs, including insurance company education programs, shall file annually with the commissioner an alphabetical list of the names and addresses of all persons who have successfully completed an approved continuing education activity during the preceding calendar year.
(4) The commissioner may, following the process provided for in 33-1-314, withdraw approval of all courses, lectures, seminars, and instructional programs of any person that fails to comply with subsection (3). The commissioner may, after having conducted a hearing pursuant to 33-1-701, impose a fine upon a person that has failed to comply with subsection (3). The fine may not exceed the penalty permitted by 33-1-317."
Section 18. Effective date. [This act] is effective January 1, 2000, with the application and renewal fee in 33-2-708 being due March 1, 2000, for tax year 1999.
- END -
Latest Version of SB 132 (SB0132.ENR)
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