Montana Code 33-10-201. Short title, purpose, and construction
33-10-201. Short title, purpose, and construction. (1) This part may be cited as the “Montana Life and Health Insurance Guaranty Association Act”.
Terms Used In Montana Code 33-10-201
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Association: means the Montana life and health insurance guaranty association created under 33-10-203. See Montana Code 33-10-202
- authorized: when used in the context of assessments means a specified amount of money authorized for collection from member insurers by a resolution of the board of directors established in 33-10-204. See Montana Code 33-10-202
- Insolvent insurer: means a member insurer that is placed under an order of liquidation by a court of competent jurisdiction upon a finding of insolvency. See Montana Code 33-10-202
(2)The purpose of this part is to protect policyowners, insureds, beneficiaries, annuitants, payees, and assignees of life insurance policies, health insurance policies, annuity contracts, and supplemental contracts, subject to certain limitations, against failure in the performance of contractual obligations due to the impairment or insolvency of the insurer issuing the policies or contracts.
(3)To provide this protection:
(a)an association of insurers is created to enable the guaranty of payment of benefits and of continuation of coverages;
(b)members of the association are subject to assessment to provide funds to carry out the purpose of this part; and
(c)the association is authorized to assist the commissioner, in the prescribed manner, in the detection and prevention of insurer impairments or insolvencies.
(4)This part must be liberally construed to effect the purpose under subsections (2) and (3), which constitute an aid and guide to interpretation.
(5)This part may not be construed to reduce the liability for unpaid assessments of the insureds of an impaired or insolvent insurer operating under a plan with assessment liability.