On November 2nd, 2020, the Montana Commissioner of Securities and Insurance released a notice which rescinded an Advisory Memorandum issued on January 23, 2013, titled “Form Provisions Limiting Coverage of Defense Expenses, Including Defense Within Limits Provisions – Montana Code § 33-1-502”.
For Commercial lines, any form that is providing Defense within the limits of liability will need to provide, with the submission of forms, the limits that will be offered with that product. A determination will be made with each filing. If it is determined appropriate and will be allowed under the discretion of the Commissioner in compliance with MCA 33-1-502(2).
The Commissioner still requires forms containing defense within limits provisions to include “conspicuous disclosure” of the meaning and implications of those provisions. Defense within limits provisions that lack adequate disclosure may violate insurance consumers reasonable expectations. See MCA 33-1-502(3). The Notice of Recession can be found HERE.
For more information on this Bulletin, or any other regulatory compliance matter, please contact Westmont Associates, Inc.