HELENA – Montana Commissioner of Securities and Insurance (CSI) Matt Rosendale today threw his support behind Senate Bill 58 to protect Montana insurance consumers from unreasonable policy cancellations.
The bill was heard this morning in the Montana Senate Business and Labor committee.
SB 58 would prohibit zero dollar claims from being considered in insurance policy cancellations or refusals to renew. Zero dollar claims can occur if a policyholder makes a claim but decides to pay out of pocket, hasn’t met the deductible and pays out of pocket, or simply asks about filing a claim.
“As Commissioner, my first responsibility is to advocate for Montana consumers,” Rosendale said. “This common sense, bipartisan bill protects Montanans from having their policies cancelled over claims that cost insurance companies no money.”
“This would be a big win for Montanans who are complying with insurance policies that require them to notify the companies about a potential claim, or are simply trying to find out who should pay a claim. Consumers shouldn’t be punished for doing the right thing, especially when it comes at no cost to insurers,” Rosendale (R-Mont.) continued.
State Senator Mary McNally (D-Billings) sponsored the bill and hailed the bipartisan effort to pass SB 58.
“Montanans shouldn’t have their insurance policies cancelled for claims their company didn’t pay: it’s a matter of fairness. I’ve been proud to work with both a Democratic and Republican Insurance Commissioner on this bipartisan effort to help homeowners keep their coverage. I know it will help many families in Billings and across the state,” she said.
Insurance companies both encourage and require their customers notify them of potential claims. Zero dollar claims are claims in which the insurance company pays out zero dollars.
The Office of the Montana Commissioner of Securities and Insurance has received recent complaints over policies being canceled for zero dollar claims.