Montana Code 33-16-1022. Dividends — regulation or prohibition
33-16-1022. Dividends — regulation or prohibition. (1) An advisory organization may not adopt a rule that would regulate or prohibit the payment of dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers.
Terms Used In Montana Code 33-16-1022
- Advisory organization: means a person or organization that either has two or more member insurers or is controlled either directly or indirectly by two or more insurers and that assists insurers in ratemaking-related activities. See Montana Code 33-16-1008
- Contract: A legal written agreement that becomes binding when signed.
- Insurer: means a person licensed to write workers' compensation insurance as a plan No. See Montana Code 33-16-1008
(2)A plan for the payment of dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers is not a rating plan or system. A plan for the payment of dividends, savings, or unabsorbed premium deposits does not relieve an insurer from complying with any requirement of this chapter regarding rating plans or systems.
(3)It is an unfair trade practice under 33-18-1003 to make the payment of a dividend or any portion of it conditioned upon renewal of the policy or contract.