Terms Used In Montana Code > Title 33 > Chapter 2 > Part 3 - Authorization of Surplus Lines Insurers, Insurance Producers, and Insurance

• Affiliated: means that a person directly or indirectly controls, is controlled by, or is under common control with the insured. See Montana Code 33-2-301
• Affiliated group: means any group of persons that are affiliated. See Montana Code 33-2-301
• Approved risk list: means the list approved by the commissioner of the kinds of insurance presumed unobtainable from authorized insurers when Montana is the home state of the insured. See Montana Code 33-2-301
• Authorized insurer: means an insurer authorized pursuant to 33-2-101 to transact insurance in this state. See Montana Code 33-2-301
• Business entity: means a corporation, a limited liability company, an association, a partnership, a limited liability partnership, or other legal entity. See Montana Code 33-2-301
• Contract: A legal written agreement that becomes binding when signed.
• Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
• Disability income insurance: has the meaning provided in 33-1-235 for:

  (A)individuals employed in professional sports or the entertainment industry; or

  (B)a business entity insuring a principal to cover liability or provide assurance for the business entity's loans or contracts. See Montana Code 33-2-301

• Eligible surplus lines insurer: means an unauthorized insurer that is eligible to issue surplus lines insurance under 33-2-307. See Montana Code 33-2-301
• Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
• Exempt commercial purchaser: has the meaning provided in 33-2-318. See Montana Code 33-2-301
• Home state: means , with respect to an insured:

  (i)the state in which the insured maintains its principal place of business or, in the case of an individual, the individual's principal residence;

  (ii)if 100% of the insured risk is located outside the state referred to in subsection (3)(k)(i), the state with the greatest allocated percentage of the insured's taxable premium for that surplus lines insurance contract;

  (iii)if more than one insured from an affiliated group are named insureds on a single surplus lines insurance contract, the home state as determined under subsection (3)(k)(i) or (3)(k)(ii) for the member of the affiliated group that has the largest percentage of premium attributed to it under the surplus lines insurance contract; or

  (iv)if a group policyholder pays 100% of the premium from its own funds, the home state of the group policyholder as determined under subsection (3)(k)(i) or, if a group policyholder does not pay 100% of the premiums from its own funds, the home state of the group member as determined under subsection (3)(k)(i). See Montana Code 33-2-301

• Independently procured insurance: means surplus lines insurance procured directly by an insured from an eligible surplus lines insurer. See Montana Code 33-2-301
• Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
• Multistate risk: means a risk covered by an unauthorized insurer with insured exposures in more than one state. See Montana Code 33-2-301
• Natural disaster multiperil insurance: means any combination of flood, earthquake, and landslide insurance that may be sold as surplus lines insurance. See Montana Code 33-2-301
• Oversight: Committee review of the activities of a Federal agency or program.
• Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
• Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
• Plaintiff: The person who files the complaint in a civil lawsuit.
• Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
• Principal place of business: means the state where the insured business maintains its headquarters and where the insured's high-level officers direct, control, and coordinate the business activities of the insured. See Montana Code 33-2-301
• Principal residence: means the state where an individual insured resides for the greatest number of days during a calendar year or, if the insured's principal residence is located outside of any state, the state to which the greatest percentage of the insured's taxable premium for that insurance contract is located. See Montana Code 33-2-301
• Process: means a writ or summons issued in the course of judicial proceedings. See Montana Code 1-1-202
• Producing insurance producer: means a Montana-licensed property and casualty insurance producer dealing directly with a person seeking insurance. See Montana Code 33-2-301
• Property: means real and personal property. See Montana Code 1-1-205
• Public law: A public bill or joint resolution that has passed both chambers and been enacted into law. Public laws have general applicability nationwide.
• Qualified risk manager: has the meaning provided in 33-2-319. See Montana Code 33-2-301
• Single-state risk: means a risk covered by an unauthorized insurer with exposures in only one state. See Montana Code 33-2-301
• State: means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, the Virgin Islands, and American Samoa. See Montana Code 33-2-301
• Surplus lines insurance: means any property, casualty, or inland marine insurance permitted in a state to be placed directly or through a surplus lines insurance producer with an unauthorized insurer eligible to accept the insurance. See Montana Code 33-2-301
• Surplus lines insurance producer: means an individual or business entity licensed under 33-2-305 to place surplus lines insurance on risks resident, located, or to be performed in this state with unauthorized insurers eligible to accept the insurance. See Montana Code 33-2-301
• Unauthorized insurer: means , with respect to a state, an insurer not authorized to transact the business of insurance in the state. See Montana Code 33-2-301
• under common control with: means that:

  (i)the person directly or indirectly or acting through one or more other persons owns, controls, or has the power to vote 25% or more of any class of voting securities of a business entity; or

  (ii)the person controls in any manner the election of a majority of the directors or trustees of a business entity. See Montana Code 33-2-301

• United States: includes the District of Columbia and the territories. See Montana Code 1-1-201
• Venue: The geographical location in which a case is tried.
• Writing: includes printing. See Montana Code 1-1-203