A general overview, not legal advice
This article gives a plain-language overview of Montana unfair claim practices rules and how they relate to property claims. It is general information only. It is not legal advice, and we are not a law firm. If you think your claim has been handled unfairly, talk to a licensed Montana attorney about your situation.
Where the rules come from
Montana’s Unfair Trade Practices Act sits in Title 33, Chapter 18 of the Montana Code Annotated. Among other things, it lists unfair claim settlement practices that insurers doing business in Montana are expected to avoid. Montana law also allows an insured to bring a claim against their own insurer for certain of those practices. When and how that works, including what must be shown and what time limits apply, are legal questions for an attorney.
The regulator is the Office of the Montana Commissioner of Securities and Insurance, or CSI. The CSI is part of the State Auditor’s office, and the State Auditor serves as Commissioner. It licenses insurers and agents, takes consumer complaints and publishes consumer guidance.
The kinds of conduct these laws address
Without quoting or interpreting the statute, unfair claim practices laws like Montana’s generally address conduct such as:
- Misrepresenting facts or policy provisions about coverage.
- Failing to acknowledge and act reasonably promptly on communications about a claim.
- Failing to follow reasonable standards for investigating claims.
- Refusing to pay a claim without conducting a reasonable investigation.
- Not affirming or denying coverage within a reasonable time after proof of loss is completed.
- Not attempting in good faith to settle promptly and fairly once liability is reasonably clear.
- Failing to promptly explain the basis for a denial or a compromise offer.
Read the statute itself, or ask an attorney, for the exact wording and how it has been applied. We don’t summarize court decisions here.
A disagreement isn’t automatically unfair
Many claim disputes are honest differences over price or scope. A carrier’s estimate coming in lower than your contractor’s bid doesn’t, by itself, mean the carrier acted unfairly. That kind of disagreement is exactly what the appraisal clause is designed to resolve. Concerns about Montana unfair claim practices tend to involve how a claim was handled: long delays, unexplained denials, ignored documentation or misstatements about the policy.
How appraisal and claim-handling concerns fit together
Appraisal decides the amount of loss. It generally doesn’t decide whether the insurer handled the claim properly. The two can exist side by side. Some policyholders go through appraisal and later talk to an attorney about claim handling; others consult an attorney first. Taking part in appraisal can affect other rights in ways that depend on the facts, which is one more reason to get legal advice early if you have concerns.
Keep a record of claim handling
Whatever path you choose, a clean record helps. Keep:
- A dated log of every call, email, letter and inspection, with names.
- Copies of every estimate, reinspection report and payment letter.
- Your written requests for explanations, and the carrier’s responses or lack of them.
- Your policy, all endorsements and any certified copy you requested.
Our claim deadline calendar helps you track dates from your own policy. It can’t tell you which legal deadlines apply; only an attorney can do that.
Using the CSI complaint process
If you believe an insurer isn’t handling your claim properly, you can file a complaint with the CSI. The office generally reviews the complaint, asks the insurer for a response and can help clarify what is expected of the company. A complaint isn’t a lawsuit and doesn’t replace legal advice, but it creates a record and sometimes gets a stalled claim moving. Check the CSI’s current website for its complaint form and instructions.
When you file, keep it factual: the claim number, the dates, what you asked for, what the carrier did and copies of key documents. Avoid speculation about motives and stick to what happened.
When to call a licensed Montana attorney
Consider talking to a licensed Montana attorney if:
- The carrier denies coverage or cites an exclusion you don’t understand.
- You’ve gone a long time without a decision or a meaningful response.
- The carrier raises a policy-condition defense, such as late notice or a missing proof of loss.
- You believe the carrier misrepresented your policy.
- Time limits in your policy or under Montana law may be approaching.
Many attorneys offer an initial consultation. Bring your claim file, your policy and your log so the conversation can be specific.
Where we fit, and where we don’t
Our role is narrow. We value disputed property losses and work through the appraisal process as your appraiser or as a neutral umpire. We don’t evaluate whether an insurer broke the law, and we don’t pursue claims against insurers. If those questions come up during an appraisal, we’ll tell you it’s time to talk to a lawyer.
We are appraisers, not attorneys, and nothing here is legal advice. Learn more about our firm, or browse our appraisal questions.