Senate Bill No. 80

Introduced By hertel

By Request of the State Auditor

A Bill for an Act entitled: An Act prohibiting underwriting on or after the issue date of the policy, certificate, or subscriber contract except under certain conditions

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

Section 1.  Postclaim underwriting prohibited -- condition. An insurer, health service corporation, or health maintenance organization may not place an elimination rider on or rescind coverage provided by a disability policy, certificate, or subscriber contract after a policy, certificate, or contract has been issued unless the insured has made a material misrepresentation or fraudulent misstatement on the application or has failed to pay the premium when due.

Section 2.  Codification instruction. [Section 1] is intended to be codified as an integral part of Title 33, chapter 18, part 2, and the provisions of Title 33, chapter 18, part 2, apply to [section 1].

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