Montana Life Insurance Laws and Regulations Flashcards

Understanding Montana life insurance laws is essential for policyholders, agents, and insurers. This guide presents key laws and regulations in an easy-to-digest flashcard-style format, helping you quickly grasp important provisions.

Regulatory Framework

📌 Who regulates life insurance in Montana?
✔️ The Montana Commissioner of Securities and Insurance (CSI).

📌 Which law governs life insurance policies?
✔️ Title 33, Chapter 20 of the Montana Code Annotated (MCA).

Key Policy Provisions

📌 What is the grace period for missed premium payments?
✔️ Montana requires a grace period, ensuring a policy remains active for a set time after a missed payment.

📌 What is an incontestability clause?
✔️ After two years, insurers cannot dispute policy claims due to misstatements, except in cases of fraud.

📌 What are nonforfeiture benefits?
✔️ These benefits allow policyholders to retain some value even if they stop paying premiums.

Consumer Protections

📌 What happens if an insurer goes bankrupt?
✔️ The Montana Life and Health Insurance Guaranty Association covers policyholders up to:

• $300,000 in death benefits
• $100,000 in cash surrender value
• A total cap of $500,000 per person

Agent and Company Regulations

📌 Who can sell life insurance in Montana?
✔️ Only licensed agents who comply with state training and ethics standards.

📌 What is required of life insurance companies?
✔️ They must be registered and follow fair business practices.

Group Life Insurance

📌 Do group policies have different rules?
✔️ Yes, they must meet specific Montana regulations, ensuring fair coverage for all participants.

Viatical Settlements

📌 What is a viatical settlement?
✔️ It allows terminally ill policyholders to sell their life insurance for immediate cash, regulated for consumer protection.

Conclusion

Montana’s life insurance laws protect consumers, ensuring fair treatment and financial security. Use these flashcards to quickly review key regulations and stay informed.

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