Commissioner of Securities and Insurance (CSI)

The Montana Commissioner of Securities and Insurance (CSI) is the state agency responsible for regulating the insurance industry in Montana. Unlike many states where the insurance commissioner is appointed, Montana's Commissioner is elected by voters for a four-year term.

The Insurance Commissioner

Election and Term

Exam Tip: Montana is one of 11 states where the Insurance Commissioner is elected rather than appointed. This is a commonly tested fact on the state exam.

Commissioner Authority

The Montana Commissioner has broad regulatory powers under Title 33 of the Montana Code Annotated (MCA):

Montana Insurance Code

Title 33, Montana Code Annotated

The Montana Insurance Code is found in Title 33 of the Montana Code Annotated and covers:

• Chapter 1: General Provisions
• Chapter 2: The Commissioner (CSI office and powers)
• Chapter 3: Authorized Insurers
• Chapter 15: Types of Insurance
• Chapter 17: Producers and Consultants
• Chapter 18: Trade Practices and Frauds

Key Regulatory Principles

1. Solvency Regulation: Ensure insurers can pay claims
2. Rate Regulation: Rates must be adequate, not excessive, not unfairly discriminatory
3. Market Conduct: Fair treatment of policyholders
4. Producer Regulation: Competent, honest producers
5. Consumer Protection: Accessible information and complaint resolution

Rate Regulation System

Montana uses a file-and-use system for most P&C insurance rates:

How File-and-Use Works

Rate Standards

Rates must be:

• Adequate: Sufficient to pay expected claims and expenses
• Not Excessive: Not unreasonably high for the coverage provided
• Not Unfairly Discriminatory: Based on actuarial justification, not prohibited factors

Prior Approval Exceptions

Some rate categories require prior approval before use:

• Workers' compensation insurance rates
• Title insurance rates
• Credit insurance rates

CSI Organizational Structure

Key Divisions

Consumer Protection Services

Filing Complaints

Montana consumers can file insurance complaints through multiple channels:

Complaint Process

1. Consumer submits complaint with documentation
2. CSI acknowledges receipt within 10 business days
3. CSI forwards complaint to insurer for response
4. Insurer must respond within 30 days
5. CSI reviews response and mediates if needed
6. CSI issues final determination

Consumer Rights

Under Montana law, consumers have the right to:

• Receive clear policy information before purchase
• File complaints without retaliation
• Receive timely claims handling
• Appeal claim denials
• Access complaint resolution services

Exam Tip: Know the toll-free consumer hotline number: (800) 332-6148. Questions about how consumers can file complaints with the CSI are common on the exam.

Montana FAIR Plan

For property owners who cannot obtain coverage in the standard market, Montana participates in the FAIR (Fair Access to Insurance Requirements) Plan:

FAIR Plan Overview

Common FAIR Plan Properties

• Properties in wildfire-prone areas
• Older buildings with outdated systems
• Properties with prior claims history
• Vacant or unoccupied structures

Regulatory Examinations

Types of Examinations

Examination Authority

The CSI may:

• Examine books and records of any licensed entity
• Require testimony under oath
• Subpoena documents and witnesses
• Coordinate with other state regulators (NAIC)
• Share examination findings with other regulators