Montana Code 33-1-215. Prepaid legal insurance
33-1-215. Prepaid legal insurance. (1) For the purposes of this section, prepaid legal insurance means the assumption of a contractual obligation that is to be spread, directly or indirectly, among a group of persons to provide specified legal services or reimbursement for legal expenses in consideration of a specified payment for an interval of time, regardless of whether the payment is made by the beneficiary or by a third person on behalf of the beneficiary.
Terms Used In Montana Code 33-1-215
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
(2)Prepaid legal insurance does not include the provision of or reimbursement for legal services that are incidental to other insurance coverage. The following are not prepaid legal insurance:
(a)retainer contracts made with individual clients with fees based on estimates of the nature and amount of services that will be required;
(b)contracts made with a group of clients involved in the same or closely related legal matters;
(c)plans providing only a referral service or a discount card for legal services;
(d)legal services provided by unions or employee associations to members pertaining to employment or occupation; or
(e)legal services provided by an agency of state or federal government to employees.
(3)Prepaid legal insurance is a type of casualty insurance provided for in 33-1-206.