Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
Understanding Montana’s Unfair Claim Settlement Laws
In Montana, insurers must follow the Unfair Insurance Practices Act. Under Montana Code Annotated (MCA) § 33-18-201 et seq., carriers cannot unreasonably delay or deny claims. See MCA § 33-18-201 and following sections for prohibited practices.
1. Review Your Policy and Statutory Rights
Begin by reading your auto insurance policy. Note deadlines for notice, proof of loss, and any appraisal clauses. Compare policy language to the requirements in MCA § 33-18-201 et seq. to see if the insurer violated any specific duties.
2. Document Every Contact
Maintain a detailed log of all communications with your insurer. Record dates, times, names of adjusters, and summaries of conversations. Save emails, letters, and voicemails. This record serves as key evidence if you contest a delay or denial.
3. Send a Formal Written Demand
Draft a demand letter via certified mail. Include your policy number, date of collision, claim number, and a clear statement of the relief you seek (repair cost, medical bills, rental reimbursement). Cite the relevant policy sections and MCA provisions to demonstrate your knowledge of your rights.
4. File a Complaint with the Insurance Commissioner
If the insurer continues unfair practices, file a complaint with the Montana Commissioner of Securities and Insurance. The Commissioner enforces the Unfair Trade Practices Act under MCA § 33-1-201. Submit complaints online at csimt.gov/insurance/file-a-complaint.
5. Consider a Bad-Faith Lawsuit
Montana law allows insureds to sue for bad faith when an insurer unreasonably denies or delays payment. A successful bad-faith action may recover the policy benefits, interest, attorney fees, and in some cases punitive damages. Consult an attorney experienced in insurance litigation to evaluate the strength of your claim.
Helpful Hints
- Confirm policy notice and proof-of-loss deadlines before sending correspondence.
- Use certified mail or delivery tracking for all letters to your insurer.
- Keep all repair estimates, invoices, medical records, and rental receipts together.
- Photograph vehicle damage and the accident scene for use in your claim file.
- Consider hiring a public adjuster or independent appraiser for complex or high-value claims.