BEFORE THE COMMISSIONER OF SECURITIES AND INSURANCE

OFFICE OF THE MONTANA STATE AUDITOR

 

In the matter of the amendment of ARM 6.6.2102 pertaining to rates and premiums, and the repeal of ARM 6.6.2103 pertaining to payment or benefits

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NOTICE OF PROPOSED AMENDMENT AND REPEAL   NO PUBLIC HEARING CONTEMPLATED

 

TO: All Concerned Persons

 

1. The Commissioner of Securities and Insurance, Office of the Montana State Auditor (CSI) proposes to amend and repeal the above-stated rules.

 

2. The CSI will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the CSI no later than 5:00 p.m. on December 1, 2021, to advise us of the nature of the accommodation that you need. Please contact Sam Loveridge, CSI Communications Director, 840 Helena Avenue, Helena, Montana, 59601; telephone (406) 444-3152; fax (406) 444-3497; TDD (406) 444-3246; or e-mail csi@mt.gov.

 

3. The rule as proposed to be amended provides as follows, new matter underlined, deleted matter interlined:

 

            6.6.2102  RATES AND PREMIUMS; PROPERTY AND CASUALTY INSURANCE (1)  Rates or premiums for any property or casualty insurance policy, plan, or coverage on a risk, when the risk is resident, located, or to be performed in the state of Montana shall not be based on sex or marital status.

            (2)  Factors which an insurer may take into account to determine rates or premiums for motor vehicle liability and property coverage include, but are not limited to:

            (a)  the age of the driver;

            (b)  the sex of the driver;

            (c)  the marital status of the driver;

            (b) (d)  the length of driving experience;

            (c) (e)  the number of years licensed to operate a motor vehicle;

            (d) (f)  a determination of which driver, among several insured individuals, is the primary driver of a covered vehicle, based upon the proportionate use of each vehicle insured under the policy by individual drivers insured or to be insured under the policy;

            (e) (g)  average number of miles driven over a period of time;

            (f) (h)  type of use, such as business, farm, or pleasure use;

            (g) (i)  vehicle characteristics, features, and options such as engine displacement, ability of vehicle and its equipment to protect passengers from injury, vehicle make and model, and design characteristics related to damageability of the vehicle;

            (h) (j)  commuting mileage over a period of time;

            (i) (k)  the number of cars insured or number of licensed operators in the household, without regard to the sex or marital status of the licensed operators.  An insurer may not utilize a policy of establishing insurance rates for an individual based upon the driving record of a spouse who is a licensed operator but not a primary driver of the vehicle to be insured unless the policy is applied in the same manner to households of individuals not married to each other;

            (j) (l)  the amount of insurance;

            (k) (m)  the anticipated cost of vehicle repairs or replacement, which may be measured by age, price, cost, or value of the insured automobile, and other related factors;

            (l) (n)  geographic location;

            (m) (o)  the accident record of the insured, including accidents for which the insured, although not cited, was substantially at fault; and

            (n) (p)  the driving record of the insured, including citations.

 

AUTH: 33-1-313, MCA

IMP: 33-1-502, 49-2-309, MCA

 

REASON: The CSI proposes these changes to ARM 6.6.2102 due to the elimination of the prohibition against using sex or marital status as a basis for establishing insurance premium rates effective January 1, 2022.

 

4. The CSI proposes to repeal the following rule:

 

6.6.2103  PAYMENT OR BENEFITS

 

AUTH: 33-1-313, MCA

IMP: 33-1-502, 49-2-309, MCA

 

REASON: The CSI proposes to repeal ARM 6.6.2103 due to the elimination of the prohibition against using sex or marital status as a basis for establishing insurance premium rates effective January 1, 2022.

 

5. Concerned persons may submit their data, views, or arguments concerning the proposed actions in writing to: Richard E. Wootton, CSI Legal Counsel, 840 Helena Avenue, Helena, Montana, 59601; telephone (406) 444-5234; fax (406) 444-3497; TDD (406) 444 3246; or e-mail Richard.Wootton@mt.gov., and must be received no later than 5:00 p.m., December 17, 2021.

 

6. If persons who are directly affected by the proposed actions wish to express their data, views, or arguments orally or in writing at a public hearing, they must make written request for a hearing and submit this request along with any written comments to Richard E. Wootton at the above address no later than 5:00 p.m., December 17, 2021.

 

7. If the agency receives requests for a public hearing on the proposed actions from either 10 percent or 25, whichever is less, of the persons directly affected by the proposed actions; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date. Notice of the hearing will be published in the Montana Administrative Register.  Ten percent of those directly affected has been determined to be far in excess of 25 persons based on the actions impacting every insured person in Montana.

 

8. The CSI maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request.  Such written request may be mailed or delivered to the contact person in paragraph 2 above or may be made by completing a request form at any rules hearing held by the CSI.

 

9. An electronic copy of this proposal notice is available through the CSI web site at https://csimt.gov/laws-rules and through the Secretary of State's web site at http://sosmt.gov/ARM/Register. The CSI and the Secretary of State strive to make the electronic copy of this notice conform to the official version of the notice, but advise all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered. In addition, although the CSI and the Secretary of State work to keep their web sites accessible at all times, concerned persons should be aware that the web sites may be unavailable during some periods, due to system maintenance or technical problems, and that technical difficulties in accessing or posting to the CSI e-mail address do not excuse late submission of comments.

 

10. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

 

11. With regard to the requirements of 2-4-111, MCA, the CSI has determined that the amendment and repeal of the above-referenced rules will not significantly and directly impact small businesses.

 

 

/s/ Richard E. Wootton                                /s/ Ole Olson                        

Richard E. Wootton                                     Ole Olson

Rule Reviewer                                             Chief Legal Counsel Commissioner of Securities and Insurance, Office of the Montana State Auditor

           

Certified to the Secretary of State November 9, 2021.