Montana Code 33-15-1108. Limitation on midterm premium increases
33-15-1108. Limitation on midterm premium increases. (1) In any case involving property or casualty insurance that is subject to this part, the insurer may not unilaterally increase the rate charged or decrease the coverage provided for the contract period unless:
Terms Used In Montana Code 33-15-1108
- 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
- Contract: A legal written agreement that becomes binding when signed.
- 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
- Property: means real and personal property. See Montana Code 1-1-205
- 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
- Renewal: means an agreement between an insurer and an insured to extend or continue an existing insurance policy for 90 days or more. See Montana Code 33-15-1102
(a)there is a change in risk during that period because of the addition or removal of persons or property that was included in the rate at last renewal;
(b)the risk was misrepresented by the insured; or
(c)the insured requests a policy change that increases the rate because of that specific request.
(2)This section does not prohibit the cancellation of a policy for any other reason permitted by the policy or by law during an initial policy period not to exceed 60 days.