_________ Bill No. _______

Introduced By _______________________________________________________________________________

A Bill for an Act entitled: "An Act prohibiting denial or limitation of coverage by a credit life insurance or credit disability insurance policy or certificate based on the applicant's or debtor's age; and defining the qualifications for the purchase of credit life insurance and credit disability insurance."

Be it enacted by the Legislature of the State of Montana:

NEW SECTION. Section 1.  Prohibiting denial or limitation of coverage based on age. A policy or certificate of credit life insurance or credit disability insurance may not be issued in Montana or issued for delivery in Montana if it contains a denial or limitation of coverage based on the applicant's or debtor's age.

NEW SECTION. Section 2.  Qualifications for purchase of credit life and credit disability insurance. (1) A policy or certificate of credit disability insurance may not be issued in Montana or issued for delivery in Montana if it contains a limitation that is more restrictive than the requirement that the debtor be actively employed at least 30 hours a week or unemployed solely because of a seasonal layoff.

(2) If a credit life insurance or credit disability insurance policy or certificate is to be medically underwritten, the application must include the medical questions to be used in the underwriting process. All answers in response to the medical questions must be provided by the applicant or applicants on the application.

(3) A credit life or credit disability insurer shall obtain the signatures of the applicant or applicants on the application, indicating their intent to apply for coverage.

(4) A licensed insurance producer shall sign the application attesting to the accuracy of the information contained in the application and shall record on the application the city and state in which and date on which the application was made.

NEW SECTION. Section 3.  Codification instruction. [Sections 1 and 2] are intended to be codified as an integral part of Title 33, chapter 21, part 1, and the provisions of Title 33, chapter 21, part 1, apply to [sections 1 and 2].

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