33-15-1104. Anniversary cancellation — anniversary rate increases. (1) An insurer may issue a policy for a term longer than 1 year or for an indefinite term if the policy contains a clause that allows cancellation by the insurer if the insurer gives notice 45 days prior to an anniversary date.

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Terms Used In Montana Code 33-15-1104

  • Anniversary date: means the month and day that rates, rating plans, and rating systems are initially applied to a policy in effect. See Montana Code 33-15-1102
  • Cancellation: means the decision by the insurer to terminate an insurance policy prior to the expiration of its term. See Montana Code 33-15-1102
  • Insurer: means an insurer authorized to transact property or casualty insurance in this state or an unauthorized insurer transacting surplus lines insurance in this state. See Montana Code 33-15-1102
  • Premium: means the contractual consideration charged to an insured for insurance for a specified period of time, regardless of the timing of actual charges. See Montana Code 33-15-1102
  • Rate: means a monetary amount applied to the units of exposure assigned to a classification and used by an insurer to determine the premium for an insured. See Montana Code 33-15-1102

(2)If a policy has been issued for a term longer than 1 year and for additional premium consideration an annual premium has been guaranteed, the insurer may not increase the annual premium for the term of that policy.