Montana Code 33-25-403. Prohibited practices — producer and associates — prohibition of favored insurance producer or insurer

33-25-403. Prohibited practices — producer and associates — prohibition of favored insurance producer or insurer. A producer or associate may not, directly or indirectly, require as a condition, agreement, or understanding of providing another person a loan, loan extension, credit, sale, property, contract, lease, or service that the other person obtain title insurance of any kind from a particular title insurer or title insurance producer. A title insurer or title insurance producer may not knowingly participate in a plan or transaction prohibited by this section.

Terms Used In Montana Code 33-25-403

Associate: means a:

(a)corporation, partnership, or other business entity organized for profit, of which a producer of title business is a director, officer, partner, employee, or owner of 5% or more of its equity or capital;

(b)franchisor or franchisee of a producer of title business;

(c)spouse, parent, or child of a producer of title business;

(d)corporation, partnership, or other business entity that controls, is controlled by, or is under common control with a producer of title business; or

(e)person with whom a producer of title business or an associate has an agreement, arrangement, understanding, or course of conduct having the purpose or substantial effect of evading the provisions of this title. See Montana Code 33-25-105
Contract: A legal written agreement that becomes binding when signed.
Knowingly: means only a knowledge that the facts exist which bring the act or omission within the provisions of this code. See Montana Code 1-1-204
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). ^{Source: OCC}
Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
producer: means a person, corporation, partnership, or other business entity, including an officer, director, or owner of 5% or more of the equity or capital thereof, engaged in this state in the trade, business, occupation, or profession of:

(a)buying or selling interests in real property;

(b)making loans secured by interests in real property; or

(c)acting as broker, insurance producer, or representative of a person described in subsection (8)(a) or (8)(b). See Montana Code 33-25-105
Property: means real and personal property. See Montana Code 1-1-205
Title insurance producer: means a person who holds a valid title insurance producer's license and is authorized in writing by a title insurer to:

(i)solicit title insurance business;

(ii)collect rates;

(iii)determine insurability in accordance with underwriting rules and standards of the insurer; or

(iv)issue policies of the title insurer. See Montana Code 33-25-105
Title insurer: means an insurer formed and authorized under the laws of this state to transact the business of title insurance in this state or a foreign or alien insurer so authorized. See Montana Code 33-25-105

Part 4 Contents