Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations
We're working to fix a technical issue causing problems with our broadcasts. We'll have it resolved as soon as possible. We apologize for the inconvenience.
Montana politics, elections and legislative news

Senate Bill 84 Seeks To Revise Claims History For Homeowners Insurance

Sen. Mary McNally (D) - Billings.
Courtesy Montana Legislature

Last spring a hailstorm pounded Billings leaving thousands of homeowners filing claims for new roofs, siding, windows, and other property damage. Later several filed complaints with the state Insurance Commissioner that their insurance company dropped their coverage.

McNally says currently insurance companies can go back up to 20 years to look at adverse claims in deciding whether to renew a policy. Her bill (Senate Bill 84) would limit that to 5 years.

"Why is this important? If a homeowner loses their insurance it makes it difficult if not impossible to get insurance with another company," McNally said. "If they have a mortgage they are required to get insurance and it could become cost prohibitive for them to keep their home."

She argues insurance companies use the 5 year look back to set property insurance rates and other states, like North Dakota, have a similar look back requirement.

The state insurance commissioner and a homeowner from Bozeman who was denied renewal spoke in favor of the bill.

Opponents include representatives of the insurance industry.

Greg Van Horssen speaking on behalf of State Farm Insurance Company says opposition to shortening the look back period is because it affects how the company evaluates future risk.

"The bigger the picture, in other words as it relates to this particular bill, the farther we can look back the more accurately we’re able to price the product. Remembering of course we are not, we are not interested in artificially inflating the price of the product. We have to stay competitive in order to get the business. We’re just trying to do it accurately."

The Senate Business, Labor and Economic Affairs Committee did not take immediate action on Senate Bill 84.

Become a sustaining member for as low as $5/month
Make an annual or one-time donation to support MTPR
Pay an existing pledge or update your payment information
Related Content