Montana Life Insurance Policy Requirements

Montana law imposes specific requirements on life insurance policies sold in the state under Title 33 of the Montana Code Annotated. These requirements protect consumers and ensure policy standardization.

Regulatory Authority

The Montana Commissioner of Securities and Insurance (CSI) regulates all insurance activities in the state:

• Part of the State Auditor's Office
• Reviews and approves policy forms
• Licenses insurance producers
• Investigates consumer complaints
• Enforces insurance laws and regulations

Free Look Period

Montana provides a free look period for life insurance:

During the free look period, the policyholder can:

• Review the policy
• Return it for a full refund of premiums paid
• No questions asked, no penalty

Exam Tip: Montana follows the standard 10-day free look period for life insurance policies.

Incontestability Clause

Montana requires a 2-year incontestability clause in all life insurance policies under MCA 33-20:

• After 2 years from issue, the insurer cannot contest the policy based on misstatements
• Exceptions: Fraud, non-payment of premiums, or violation of policy conditions
• After 2 years, the policy cannot be invalidated for any reason, even fraud

Montana-Specific Rules

• Incontestability period begins from the issue date
• If policy lapses and is reinstated, a new 2-year period begins
• A clause in any policy providing incontestability shall preclude only a contest of the policy's validity

Suicide Clause

Montana limits the suicide exclusion:

• Suicide exclusion cannot exceed 2 years from policy issue
• After 2 years, death by suicide is covered
• If policy is reinstated, new 2-year period may apply
• Benefits limited to return of premiums if death is within exclusion period

Beneficiary Protections

Montana has enacted the Unclaimed Life Insurance Benefits Act (MCA 33-20, Part 16):

Death Master File Requirement

Montana requires insurers to:

• Cross-check policies against the Social Security Death Master File
• Make reasonable efforts to locate beneficiaries
• Initiate claims process when death is confirmed
• Cannot charge fees for locating beneficiaries

Unfair Trade Practices Under Unclaimed Benefits Act

Failure to comply with the Unclaimed Life Insurance Benefits Act constitutes an unfair trade practice.

Policy Delivery Requirements

Montana requires:

• Policy delivered within reasonable time of issue
• Delivery must include policy summary
• Receipt should be documented
• Electronic delivery permitted with consent

Grace Period

Montana life insurance policies must include:

Reinstatement Rights

Montana policyholders have reinstatement rights:

• May reinstate within 3 years of lapse
• Must provide evidence of insurability
• Must pay back premiums with interest
• New contestability period may begin

Misstatement of Age

If the insured misstates their age:

• Policy remains valid
• Death benefit adjusted to reflect correct age
• Premium correction may apply

Standard Policy Provisions

Montana requires these standard provisions in life insurance policies:

• Entire contract clause
• Misstatement of age adjustment
• Grace period
• Incontestability clause
• Suicide exclusion (2-year maximum)
• Reinstatement provisions