The Montana Commissioner of Securities and Insurance (CSI) published an advisory memorandum informing insurers of two laws they must comply with. The laws deal with the unlawful possession of an open container in a motor vehicle on a highway and the unlawful possession of marijuana.
M.C.A. 61-8-1026 and 61-8-1027 state that while the unlawful possession of marijuana and marijuana products and the unlawful possession of an open alcoholic beverage container in a motor vehicle are violations, they are not criminal offenses. These laws state that an insurance company cannot hold these violations against an insured or increase their premiums due to the violation.
If any insurers are in violation of the statutes, they should review their rates, rules, and underwriting guidelines, and submit them to CSI. Any overcharged premium should be refunded, with interest, to policyholders. Finally, the insurer must submit a certification form through SERFF to CSI by October 1, 2025.
The certification form is attached to the advisory. The advisory can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.