Read the full stored bill text
- 2025
69th Legislature 2025 HB 324
- 1 - Authorized Print Version – HB 324
ENROLLED BILL
AN ACT REVISING VOLUNTARY PAYMENTS LAWS TO INCLUDE ALL CLAIMS; REVISING LEGISLATIVE
POLICY FOR VOLUNTARY PAYMENTS TO INCLUDE ALL CLAIMS; PROVIDING THAT CERTAIN BAD
FAITH INSURANCE ACTIONS DO NOT APPLY TO VOLUNTARY PAYMENTS; AMENDING SECTIONS 26-1-
701, 26-1-703, AND 26-1-706, MCA; AND PROVIDING AN APPLICABILITY DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 26-1-701, MCA, is amended to read:
"26-1-701. Legislative policy. The legislature declares that the health, welfare, and safety of the
people of the state of Montana would be enhanced by the expeditious handling of liability claims. The
legislature further declares that the handling of liability claims would be expedited if voluntary payment by or on
behalf of one person to or on behalf of a person who has sustained injury to that person or damage to that
person's property could possesses a claim may not be construed as an admission of fault or liability as to any
claim arising out of the occurrence that gave rise to the injury or damage."
Section 2. Section 26-1-703, MCA, is amended to read:
"26-1-703. Voluntary partial payment of claim not an admission of fault or waiver. (1) No A
voluntary partial payment of a claim against any person based on alleged liability of that person for injury to
person, including death, or damage to property arising out of any occurrence shall may not be construed as an
admission of fault or liability or as a waiver or release of claim by the person to whom or in whose behalf such
the payment was made. No A voluntary partial payment shall may not be construed to reduce the amount of
damages which that may be pleaded or proved in any action arising out of such the occurrence.
(2) This section does not apply to actions brought under 33-18-201 or 33-18-242.
(3) This section does not apply to proceedings to determine attorney fees relating to breach of
- 2025
69th Legislature 2025 HB 324
- 2 - Authorized Print Version – HB 324
ENROLLED BILL
contract, including but not limited to proceedings involving:
(a) offers of judgment; or
(b) claims seeking attorney fees from an insurer.
(4) This section does not apply to damages awarded after the entry of a verdict at the discretion of
the court, including as provided in 30-14-133, 33-25-402, 70-16-106, 70-16-107, and 70-27-206."
Section 3. Section 26-1-706, MCA, is amended to read:
"26-1-706. Effect of payment on judgment. After entry of a judgment in an action for damages for
personal injuries, including death, or for damage to property arising out of any occurrence, any voluntary partial
payment theretofore made shall up to that time must be treated as a credit against such the judgment and shall
must be deductible from the amount of such the judgment. If after partial voluntary payments are made as
herein provided for in this section, it shall must be determined by a court of competent jurisdiction that the
person who made such the payments or on whose behalf such the payments were are made is liable for an
amount which that is less than the amount of the voluntary payments already made, such the person shall may
not have no a right of action for the recovery of the amount by which the voluntary payments exceeded the
amount of the judgment."
Section 4. Applicability. [This act] applies to liability claims in which a cause of action has accrued
on or after October 1, 2025.
- END -
I hereby certify that the within bill,
HB 324, 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. 324
INTRODUCED BY S. FITZPATRICK
AN ACT REVISING VOLUNTARY PAYMENTS LAWS TO INCLUDE ALL CLAIMS; REVISING LEGISLATIVE
POLICY FOR VOLUNTARY PAYMENTS TO INCLUDE ALL CLAIMS; PROVIDING THAT CERTAIN BAD FAITH
INSURANCE ACTIONS DO NOT APPLY TO VOLUNTARY PAYMENTS; AMENDING SECTIONS 26-1-701, 26-
1-703, AND 26-1-706, MCA; AND PROVIDING AN APPLICABILITY DATE.