Montana Code 33-21-102. Purpose and scope
33-21-102. Purpose and scope. (1) The purpose of this chapter is to promote the public welfare by regulating credit life insurance and credit disability insurance. Nothing in this chapter is intended to prohibit or discourage reasonable competition. The provisions of this chapter shall be liberally construed.
Terms Used In Montana Code 33-21-102
- Credit disability insurance: means insurance on a debtor or joint debtors to provide indemnity for payments becoming due on a specific loan or other credit transaction while the debtor or either of the joint debtors is disabled as defined in the policy. See Montana Code 33-21-103
- Credit life insurance: means insurance on the life of a debtor or the lives of joint debtors pursuant to or in connection with a specific loan or other credit transaction. See Montana Code 33-21-103
- Credit transaction: means a transaction by the terms of which, at a future date:
(a)repayment of money loaned is made;
(b)a loan commitment is made; or
(c)payment for goods, services, or property sold or leased is made. See Montana Code 33-21-103
- Creditor: means :
(a)a lender of money or vendor or lessor of goods, services, property, rights, or privileges, for which payment is arranged through a credit transaction;
(b)any successor to the right, title, or interest of a lender, vendor, or lessor;
(c)an affiliate, associate, or subsidiary of a lender, vendor, or lessor;
(d)a director, officer, or employee of a lender, vendor, or lessor; or
(e)any other person in any way associated with a lender, vendor, or lessor. See Montana Code 33-21-103
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
(2)Except as provided in subsection (3), this chapter applies to each policy, certificate of insurance, notice of proposed insurance, binder, endorsement, and rider of life insurance and disability insurance delivered or issued for delivery in Montana in connection with loans or other credit transactions for personal, family, or household purposes.
(3)This chapter does not apply to life insurance or disability insurance delivered or issued for delivery in connection with:
(a)a loan or other credit transaction of more than 15 years’ duration;
(b)a credit transaction that is:
(i)secured by a first mortgage or deed of trust; and
(ii)made to finance the purchase of real property or the construction of a dwelling thereon or to refinance a prior credit transaction made for that purpose; or
(c)a credit transaction that is an isolated transaction on the part of the insurer and that is not related to an agreement or a plan for insuring debtors of the creditor.