(1) Section 49-2-309, MCA, and this subchapter are applicable to all insurance policies, plans, and coverages subject to the laws of Montana and issued or entered into on or after October 1, 1985.
(2) Any term, payment, or benefit of an insurance policy, plan, or coverage in effect prior to October 1, 1985, may be exercised in accordance with the terms of that policy, plan, or coverage. Options to increase or decrease coverage, annual rate adjustments, and settlement options in life insurance policies are examples of terms which if included in a policy, plan, or coverage in effect prior to October 1, 1985, may be exercised without regard to 49-2-309, MCA, or these rules.
(3) Section 49-2-309, MCA, and these rules, are applicable to any agreement whereby an insurer and an insured agree to an extension or continuation of a pre-October 1, 1985, insurance policy plan or coverage when no consideration was given in the pre-October 1, 1985, contract for the right to extend or continue upon the same terms. The fact that the contract formed by extension or continuation is identical to the pre-October 1, 1985, contract is not material if no consideration for the right to extend or continue the pre-October 1, 1985, terms was given.