Committee considers bill updating insurance unfair-trade rules, banks seek clarifying amendments

Representative Steve Fitzpatrick, R-House District 24, opened a hearing on House Bill 114, a measure requested by the State Auditor's Office that updates Montana law on unfair insurance trade practices and incorporates elements of a National Association of Insurance Commissioners model.

"What this is is this is an update to some of the unfair trade practices acts," Fitzpatrick said. He told the committee HB 114 includes a new section on unfair financial planning practices and additions to misrepresentation and advertising provisions.

Frank Cote, representing the State Auditor's Office and the commissioner of insurance and securities, said the bill is based on an NAIC model and that the office had circulated the proposal to affected industry parties. "We base this bill off the NAIC, National Association of Insurance Commissioners model act," Cote said. He told the committee the auditor's office had heard concerns from banking interests and planned amendments to address perception issues…