Life insurance in Montana

How your policy is protected if an insurer fails

If a life or health insurer licensed in Montana is found insolvent and ordered liquidated, the Montana Life & Health Insurance Guaranty Association protects Montana residents who own its policies and annuities, usually by transferring the policies to a healthy insurer or by continuing them itself. The association's mailing address is in Adel, Iowa, but it covers Montana residents. Keep paying premiums so your coverage stays in force.

Limits are as of October 4, 2026, from the association's FAQ. Allocated group annuity certificate holders and structured settlement payees are each covered up to $250,000. The annuity limit applies per owner per insolvent company, so three $100,000 annuities with the same failed insurer are protected for $250,000 in total; the excess becomes a claim in the receivership.

The association is a private entity created by state law, not a government agency, and it is funded by the insurers licensed in Montana. Montana law prohibits agents and companies from using it in advertising or as a reason to buy a policy, because it is no substitute for choosing a well-managed, financially stable insurer. See state life and health guaranty associations and what happens if your life insurance company fails.

Who regulates life insurance in Montana

Montana's elected State Auditor also serves as Commissioner of Securities and Insurance (CSI). The office licenses insurers and producers, reviews rates and handles insurance complaints about coverage, claims, premiums, sales misrepresentation and cancellations. Call 800-332-6148 toll-free (406-444-2040), or reach the consumer services staff for life and health insurance at 406-444-2524.

Free look, grace periods and policy rules

• Free look: every individual life policy must tell you that if you're not satisfied for any reason you can return it within 10 days of delivery, or longer if the policy allows, and get your premium refunded directly to you. A returned policy is void from the beginning (MCA 33-15-415). See the free-look period: returning a policy for a refund.
• Grace period: you get 30 days, or one month of at least 30 days, to pay any premium after the first, and the policy stays in force meanwhile; if the insured dies during that time, the unpaid premium can be deducted from the benefit (MCA 33-20-104).
• Cancellation notice: an insurer can't cancel a life policy or annuity for nonpayment until it has mailed or delivered a written cancellation notice, separate from the bill, giving at least 30 days; that period runs at the same time as the grace period. When you apply for an individual policy, the insurer must also tell you that you can name a third party, such as an adult child, to receive a copy of any lapse notice (MCA 33-20-141).
• Paying death claims: settlement is due within 60 days of proof of death, and a claim paid after the first 30 days must include interest from the 30th day, at the greater of the policy rate or a benchmark commercial paper rate, whether or not the policy says so (MCA 33-20-114).

Taxes, estates and community property

Montana no longer collects estate or inheritance taxes. Its inheritance tax was repealed in November 2000 and does not apply to deaths after January 1, 2001, according to the Montana Department of Revenue. See state estate and inheritance taxes and life insurance for the federal rules.

Montana is not a community property state.

Finding a lost policy or unclaimed benefits

Montana's Unclaimed Life Insurance Benefits Act (MCA 33-20-1601 to 33-20-1606) requires insurers to compare their in-force life policies, annuities and retained asset accounts against the Social Security Death Master File at least twice a year and to follow up on matches within 90 days. You can also file a free request with the NAIC Life Insurance Policy Locator and look through bank statements and mail for premium payments. Benefits that are never claimed go to the Montana Department of Revenue, which runs the state's unclaimed property search. If the insured lived or worked in Idaho, Wyoming or North Dakota, search there too. See how to find a lost life insurance policy and unclaimed life insurance money and state unclaimed property.

Where to get help

• Commissioner of Securities and Insurance: 800-332-6148, csimt.gov, 840 Helena Avenue, Helena, MT 59601. Use the insurance complaint page and its complaint form; if you file for someone else, include the signed third-party authorization. See how to file a complaint against a life insurer.
• Montana Life & Health Insurance Guaranty Association: 877-678-1048, mtlifega.org, P.O. Box 123, Adel, IA 50003.
• Unclaimed property: the Department of Revenue's unclaimed property search.