MT| The Montana CSI July 2, 2025 Advisory Memorandum addresses insurers concerning compliance with state laws about open-container and marijuana possession violations by drivers. Insurers are reminded that violations of these laws are civil fines and not criminal offenses, and policyholders must not be penalized through higher premiums or adverse underwriting actions. The memorandum outlines the steps insurers must take if they have unlawfully imposed penalties on policyholders due to such violations.
Key Points:
- Insurers must immediately stop penalizing individuals for open-container or marijuana possession violations in motor vehicles, update their rates and rules accordingly, and refund any overcharged premiums with interest to affected parties.
- All insurers are required to submit updated rates and a signed compliance certification via SERFF to the Commissioner of Securities and Insurance by October 1, 2025, even if prior updates were made.
- Failure to comply or rectify past errors may result in regulatory action, and insurers should consult independent legal counsel as needed, since the CSI is obligated to enforce these legislative requirements.