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- 2025
69th Legislature 2025 HB 136
- 1 - Authorized Print Version – HB 136
ENROLLED BILL
AN ACT REVISING INSURANCE LAWS TO ALLOW INSURERS TO PROVIDE A BENEFIT OR PREMIUM
REDUCTION TO A POLICYHOLDER FOR MEASURES TAKEN TO REDUCE THE RISK OF DAMAGE TO
PROPERTY FROM FIRE, WIND, AND HAIL; PROVIDING THAT A BENEFIT OR PREMIUM REDUCTION
DOES NOT CONSTITUTE A MIDTERM PREMIUM INCREASE; REQUIRING AN INSURER TO DISCLOSE
THE BENEFIT OR PREMIUM REDUCTION; AND AMENDING SECTIONS 33-15-1108, 33-16-203, AND 33-
18-210, MCA.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Risk preventative measures for homeowners -- premium reduction -- fire, wind, and
hail. (1) An insurer may provide a benefit or a premium reduction to a homeowner's insurance policyholder for
preventative measures taken by the policyholder. Preventative measures include but are not limited to actions
that reduce the risk of damage to property from fire, wind, or hail.
(a) Fire preventative measures include but are not limited to any of the following:
(i) using ignition-resistant, fire-resistive, or noncombustible building materials in construction,
including noncombustible roofing or coating, exterior glazing for fire protection, and interior building materials
designed to stop flame spread and prevent building collapse upon occupants and emergency service
personnel;
(ii) maintaining an adequate outside water source;
(iii) providing annual confirmation, if requested by the insurer, that the insured has employed
defensible space landscaping around the insured's structures;
(iv) keeping a border of at least 5 feet of nonflammable landscaping around the insured property;
(v) complying with any local, state, or federal fire prevention or community preparedness
programs;
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(vi) installing fire alarm or emergency alarm systems;
(vii) complying with the requirements of the International Wildland-Urban Interface Code if a
building is located in a wildland-urban interface area; and
(viii) providing sufficient access to the property for firefighting equipment and authorized emergency
vehicles as defined in 61-8-102.
(b) Wind and hail preventative measures include but are not limited to the following:
(i) using an industry-approved resistant roof shingle;
(ii) anchoring outdoor furniture;
(iii) pruning tree branches or otherwise providing landscaping that reduces potential damage to the
insured property; and
(iv) installing protective coverings to avoid additional damage to the insured property.
(2) An insurer who provides a benefit or premium reduction as provided in this section must
include the benefit or premium reduction in writing to the policyholder. A benefit or premium reduction provided
by an insurer under this section does not constitute an illegal rebate under 33-18-210.
(3) For the purposes of this section, the following definitions apply:
(a) "Benefit" means a rebate, discount, abatement, credit, reduction of premium, or other
advantage to the policyholder provided under the terms of a preventative measures agreement.
(b) "Policyholder" means a person who is the named insured in a homeowner's insurance policy.
Section 2. Section 33-15-1108, MCA, is amended to read:
"33-15-1108. Limitation on midterm premium increases. (1) In any case involving property or
casualty insurance that is subject to this part, the insurer may not unilaterally increase the rate charged or
decrease the coverage provided for the contract period unless:
(a) there is a change in risk during that period because of the addition or removal of persons or
property that was included in the rate at last renewal;
(b) the risk was misrepresented by the insured; or
(c) the insured requests a policy change that increases the rate because of that specific request.
(2) This section does not prohibit the cancellation of a policy for any other reason permitted by the
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policy or by law during an initial policy period not to exceed 60 days.
(3) This section does not prohibit an insurer from providing a benefit or premium reduction relating
to preventative measures taken by a policyholder under [section 1]."
Section 3. Section 33-16-203, MCA, is amended to read:
"33-16-203. Rates filed. (1) Every insurer, rating organization, or advisory organization shall file with
the commissioner all rates intended for use within this state, together with supporting data sufficient to
substantiate the filing. The filing required by this subsection may be made by rating organizations on behalf of
their members and subscribers. However, this provision does not prohibit a member or subscriber from filing
rates on its own behalf. Any deviations from a rating organization's rates by a member or subscriber must be
filed with the commissioner and must be accompanied by supporting data.
(2) Rates filed must provide for a premium reduction to:
(a) qualified insured operators who are 55 years of age or older in accordance with 33-16-222; or
(b) qualified members of the Montana national guard in accordance with 33-16-230.
(3) Rates filed may provide a benefit or premium reduction for preventative measures taken by the
insured for homeowner's insurance under [section 1]."
Section 4. Section 33-18-210, MCA, is amended to read:
"33-18-210. Unfair discrimination and rebates prohibited for title, property, casualty, or surety
insurance -- exceptions -- limitations. (1) Except as provided in subsections (3), (4), and (11)(a), a title,
property, casualty, or surety insurer or an employee, representative, or insurance producer of an insurer may
not, as an inducement to purchase insurance or after insurance has been effected, pay, allow, or give or offer to
pay, allow, or give, directly or indirectly, a:
(a) rebate, discount, abatement, credit, or reduction of the premium named in the insurance policy;
(b) special favor or advantage in the dividends or other benefits to accrue on the policy; or
(c) valuable consideration or inducement not specified in the policy, except to the extent provided
for in an applicable filing with the commissioner as provided by law.
(2) Except as provided in subsections (3), (4), and (11)(a), an insured named in a policy or an
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employee of the insured may not knowingly receive or accept, directly or indirectly, a:
(a) a rebate, discount, abatement, credit, or reduction of premium;
(b) a special favor or advantage; or
(c) a valuable consideration or inducement.
(3) The prohibitions in subsections (1) and (2) do not apply to a benefit provided for by a telematics
agreement as provided in 33-23-221 through 33-23-226 or a benefit or premium reduction for preventative
measures taken by the insured for homeowner's insurance under [section 1].
(4) The prohibitions under subsections (1) and (2) do not apply to an active, retired, or honorably
separated member of the United States armed forces as described in 33-18-217(1)(a) or to a spouse, surviving
spouse, dependent, or heir of a United States armed forces member as provided in 33-18-217.
(5) An insurer may not make or permit unfair discrimination in the premium or rates charged for
insurance, in the dividends or other benefits payable on insurance, or in any other of the terms and conditions
of the insurance either between insureds or property having like insuring or risk characteristics or between
insureds because of race, color, creed, religion, or national origin.
(6) This section may not be construed as prohibiting the payment of commissions or other
compensation to licensed insurance producers or as prohibiting an insurer from allowing or returning lawful
dividends, savings, or unabsorbed premium deposits to its participating policyholders, members, or subscribers.
(7) An insurer may not make or permit unfair discrimination between individuals or risks of the
same class and of essentially the same hazards by refusing to issue, refusing to renew, canceling, or limiting
the amount of insurance coverage on a property or casualty risk because of the geographic location of the risk,
unless:
(a) the refusal, cancellation, or limitation is for a business purpose that is not a mere pretext for
unfair discrimination; or
(b) the refusal, cancellation, or limitation is required by law or regulatory mandate.
(8) An insurer may not make or permit unfair discrimination between individuals or risks of the
same class and of essentially the same hazards by refusing to issue, refusing to renew, canceling, or limiting
the amount of insurance coverage on a residential property risk or on the personal property contained in the
residential property, because of the age of the residential property, unless:
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(a) the refusal, cancellation, or limitation is for a business purpose that is not a mere pretext for
unfair discrimination; or
(b) the refusal, cancellation, or limitation is required by law or regulatory mandate.
(9) An insurer may not refuse to insure, refuse to continue to insure, or limit the amount of
coverage available to an individual because of the sex or marital status of the individual. However, an insurer
may take marital status into account for the purpose of defining persons eligible for dependents' benefits.
(10) An insurer may not terminate or modify coverage or refuse to issue or refuse to renew a
property or casualty policy or contract of insurance solely because the applicant or insured or any employee of
either is mentally or physically impaired. However, this subsection does not apply to accident and health
insurance sold by a casualty insurer, and this subsection may not be interpreted to modify any other provision
of law relating to the termination, modification, issuance, or renewal of any insurance policy or contract.
(11) (a) An insurer may not refuse to insure, refuse to continue to insure, charge higher rates, or
limit the amount of coverage available to an individual under a private passenger automobile policy based
solely on adverse information contained in an individual's claims history and driving record that is 3 years old or
older. An insurer may provide discounts to an insured under a private passenger automobile policy based on
favorable aspects of an insured's claims history.
(b) An insurer may not refuse to insure, refuse to continue to insure, charge higher rates, or limit
the amount of coverage available under a commercial automobile policy based solely on adverse information
contained in the loss experience or an insured's driving records that is 5 years old or older. An insurer may
provide discounts to an insured under a commercial automobile policy based on favorable aspects of an
insured's claims history.
(c) An insurer may not refuse to insure, refuse to continue to insure, charge higher rates, or limit
the amount of coverage available under a personal homeowner policy based solely on adverse information
contained in the loss experience that is 7 years old or older. An insurer may provide discounts to an insured
under a personal homeowner policy based on favorable aspects of an insured's claims history.
(d) As used in subsection (11)(a), "private passenger automobile policy" means an automobile
insurance policy issued to individuals or families but does not include policies known as commercial automobile
policies.
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(e) As used in subsection (11)(c), "personal homeowner policy" means property insurance under
33-1-210 that is sold by an insurer for personal, family, or household purposes.
(12) An insurer may not charge points or surcharge a private passenger motor vehicle policy
because of a claim submitted under the insured's policy if the insured was not at fault.
(13) (a) An insurer that provides personal lines insurance for an insured may not consider the
insured's inquiries or claims made to any insurer that did not result in a payment by any insurer in considering
an application for, renewal of, or change in an insurance policy as defined in 33-15-102.
(b) This subsection (13) does not apply to an insurer's consideration of a claim that was the basis
for a criminal or civil insurance fraud action by a state or regulatory enforcement entity.
(c) (i) For the purposes of this subsection (13), the term "personal lines insurance" means vehicle
insurance under 33-1-206(1)(a) and property insurance under 33-1-210 that is sold by an insurer for personal,
family, or household purposes.
(ii) The term does not include disability insurance or insurance for commercial, business, or
professional services, products, or activities."
Section 5. Codification instruction. [Section 1] is intended to be codified as an integral part of Title
33, chapter 24, and the provisions of Title 33, chapter 24, apply to [section 1].
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I hereby certify that the within bill,
HB 136, originated in the House.
___________________________________________
Chief Clerk of the House
___________________________________________
Speaker of the House
Signed this _______________________________day
of____________________________________, 2025.
___________________________________________
President of the Senate
Signed this _______________________________day
of____________________________________, 2025.
HOUSE BILL NO. 136
INTRODUCED BY S. FITZPATRICK
AN ACT REVISING INSURANCE LAWS TO ALLOW INSURERS TO PROVIDE A BENEFIT OR PREMIUM
REDUCTION TO A POLICYHOLDER FOR MEASURES TAKEN TO REDUCE THE RISK OF DAMAGE TO
PROPERTY FROM FIRE, WIND, AND HAIL; PROVIDING THAT A BENEFIT OR PREMIUM REDUCTION DOES
NOT CONSTITUTE A MIDTERM PREMIUM INCREASE; REQUIRING AN INSURER TO DISCLOSE THE
BENEFIT OR PREMIUM REDUCTION; AND AMENDING SECTIONS 33-15-1108, 33-16-203, AND 33-18-210,
MCA.