Signed by Governor Greg Gianforte

Vote Smart's Synopsis:

Vote to pass a bill that restructures property insurance claims.

Highlights:

• Specifies Rates may not be excessive or inadequate, and they may not be unfairly discriminatory for the following reasons (Sec. 1-1.a):

• A rate may not be held to be excessive unless the rate is unreasonably high for the insurance provided and a reasonable degree of competition does not exist in the area with respect to the classification to which the rate is applicable;

• A rate may not be held to be inadequate unless the rate is unreasonably low for the insurance provided and the continued use of the rate endangers the solvency of the insurer using the rate or unless the rate is unreasonably low for the insurance provided and the use of the rate by the insurer has, or if continued will have, the effect of destroying competition or creating a monopoly.

• Defines “personal homeowner policies” as property insurance under 33-6 1-210 that is sold by an insurer for personal, family, or household purposes (Sec. 1-4.g).

• Authorizes special risk classifications to be established for personal homeowner policies. Special risk classifications may be based upon favorable aspects of an insured individual's claims history. Special risk classifications may not be established based on adverse information contained in an insured individual's claims history that is 5 7 years old or older (Sec. 1-4.d).

• Establishes a title, property, casualty, or surety insurer or an employee, representative, or insurance producer of an insurer may not, as an inducement to purchase insurance or after insurance has been effected, pay, allow, or give or offer to pay, allow, or give, directly or indirectly, the following (Sec. 2-1):

• Rebate, discount, abatement, credit, or reduction of the premium named in the insurance policy;

• Special favor or advantage in the dividends or other benefits to accrue on the policy; or

• Valuable consideration or inducement not specified in the policy, except to the extent provided for in an applicable filing with the commissioner as provided by law.

• Prohibits an insured named in a policy or an employee of the insured from  knowingly receiving or accepting, directly or indirectly, the following (Sec. 2-2):

• Rebate, discount, abatement, credit, or reduction of premium;

• Special favor or advantage; or

• Valuable consideration or inducement.

• Prohibits an insurer from refusing to insure, refusing to continue to insure, charging higher rates, or limiting the amount of coverage available under a personal homeowner policy based solely on adverse information contained in the loss experience that is 5 7 years old or older. An insurer may provide discounts to an insured under a personal homeowner policy based on favorable aspects of an insured's claims history (Sec. 2-11.c).

Full Bill Text