Montana Code 33-5-303. Attorney’s bond
33-5-303. Attorney’s bond. (1) Concurrently with the filing of the declaration provided for in 33-5-201, the attorney of a domestic reciprocal insurer shall file with the commissioner a bond in favor of this state for the benefit of all persons damaged as a result of breach by the attorney of the conditions of the attorney’s bond as set forth in subsection (2). The bond must be executed by the attorney and by an authorized corporate surety and must be subject to the commissioner’s approval.
Terms Used In Montana Code 33-5-303
- Attorney: as used in this chapter , refers to the attorney-in-fact of a reciprocal insurer. See Montana Code 33-5-104
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
- Property: means real and personal property. See Montana Code 1-1-205
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
- Writing: includes printing. See Montana Code 1-1-203
(2)The bond must be in the penal sum of $25,000, aggregate in form, conditioned that the attorney will faithfully account for all money and other property of the insurer coming into the attorney’s possession and that the attorney will not withdraw or appropriate to the attorney’s own use from the funds of the insurer any money or property to which the attorney is not entitled under the power of attorney.
(3)The bond must provide that it is not subject to cancellation unless 30 days’ advance notice in writing of cancellation is given to both the attorney and the commissioner.