Mont. Code Ann. » TITLE 33. INSURANCE AND INSURANCE COMPANIES · CHAPTER 18. UNFAIR TRADE PRACTICES · Part 2. Insurer's Relations With Insured and Claimant
Montana Code Annotated

Mont. Code Ann. § 33-18-201 (2026)

Unfair Claim Settlement Practices Prohibited

✓ current as of May 2026
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  1. MCA Contents
  2. TITLE 33
  3. CHAPTER 18
  4. Part 2
  5. 33-18-201 Unfair claim settlement practices prohibited

TITLE 33. INSURANCE AND INSURANCE COMPANIES

CHAPTER 18. UNFAIR TRADE PRACTICES

Part 2. Insurer's Relations With Insured and Claimant

Unfair Claim Settlement Practices Prohibited

33-18-201. Unfair claim settlement practices prohibited. A person may not, with such frequency as to indicate a general business practice, do any of the following:

(1) misrepresent pertinent facts or insurance policy provisions relating to coverages at issue;

(2) fail to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies;

(3) fail to adopt and implement reasonable standards for the prompt investigation of claims arising under insurance policies;

(4) refuse to pay claims without conducting a reasonable investigation based on all available information;

(5) fail to affirm or deny coverage of claims within a reasonable time after proof of loss statements have been completed;

(6) neglect to attempt in good faith to effectuate prompt, fair, and equitable settlements of claims in which liability has become reasonably clear;

(7) compel insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by the insureds;

(8) attempt to settle a claim for less than the amount to which a reasonable person would have believed the person was entitled by reference to written or printed advertising material accompanying or made part of an application;

(9) attempt to settle claims on the basis of an application that was altered without notice to or knowledge or consent of the insured;

(10) make claims payments to insureds or beneficiaries not accompanied by statements setting forth the coverage under which the payments are being made;

(11) make known to insureds or claimants a policy of appealing from arbitration awards in favor of insureds or claimants for the purpose of compelling them to accept settlements or compromises less than the amount awarded in arbitration;

(12) delay the investigation or payment of claims by requiring an insured, claimant, or physician of either to submit a preliminary claim report and then requiring the subsequent submission of formal proof of loss forms, both of which submissions contain substantially the same information;

(13) fail to promptly settle claims, if liability has become reasonably clear, under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage;

(14) fail to promptly provide a reasonable explanation of the basis in the insurance policy in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement; or

(15) upon request of a policyholder or a producer designated by a policyholder, fail to provide a list of claims charged against a policy as required by 33-15-1126.

History: En. 40-3502.1 by Sec. 1, Ch. 320, L. 1977; R.C.M. 1947, 40-3502.1; amd. Sec. 1206, Ch. 56, L. 2009; amd. Sec. 3, Ch. 229, L. 2025.

Notes of Decisions
Cited in 210 cases (46 in the last 5 years), 1983–2026 · leading case: Lorang v. Fortis Ins., 2008 MT 252 (Mont. 2008).
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Lorang v. Fortis Ins., 2008 MT 252 (Mont. 2008). · cites it 90× “Additionally, in accordance with the Legislature’s express purpose of prohibiting unfair and deceptive claims-adjustment practices, the UTPA provides that punitive damages may be assessed *46 against an insurer for such a misrepresentation.”
Shilhanek v. D-2 Trucking, Inc., 2003 MT 122 (Mont. 2003). · cites it 149× “¶13 The Shilhaneks subsequently filed a cross-claim against Canal, asserting, inter alia, that Canal’s refusal to pay their undisputed medical expenses without a release violated subsections (6) and (13) of § 33-18-201, MCA (1997). Section 33-18-201, MCA (1997), provides, in…”
Jacobsen v. Allstate Ins., 2013 MT 244 (Mont. 2013). · cites it 98× “The named representative did not lack individual standing because of any factual differences in the substantive details of his claim, but for bringing a claim under § 33-18-201, MCA, despite the absence of any judgment in, or settlement of, his underlying claim as required by §…”
Ridley v. Guar. Nat'l Ins., 951 P.2d 987 (Mont. 1997). · cites it 77× “Section 33-18-201, MCA, of the Unfair Claims Practices Act, requires that plaintiff prove that the insurer's conduct complained of occur "with such frequency as to indicate a general business practice" and, therefore, even if Ridley's interpretation of the statute is correct,…”
Klaudt v. Flink, 658 P.2d 1065 (Mont. 1983). · cites it 68× “The sole issue presented by this appeal is whether the Montana Unfair Trade Practices section of the Insurance Code, specifically section 33-18-201(6), MCA, gives the plaintiffs a cause of action against a defendant's insurer, which can be prosecuted jointly with an action…”
Fode v. Farmers Ins. Exch., 719 P.2d 414 (Mont. 1986). · cites it 82× “Fode asks this Court to recognize the common law duty of good faith and fair dealing without reference to the unfair claim settlement practices statute, § 33-18-201, MCA. Rather, the appellant rests his case upon obligations imposed by statute generally.”
Watters v. Guar. Nat'l Ins., 2000 MT 150 (Mont. 2000). · cites it 62× “Accordingly, the discussion and holdings herein are limited by the foregoing, and specifically limited to those claims for damages brought by a third-party claimant against a clearly liable party and his or her automobile liability insurer, and only for the mandatory coverage…”
Juedeman v. Nat'l Farmers Union Prop. & Cas. Co., 833 P.2d 191 (Mont. 1992). · cites it 76× “Plaintiff Cindy Juedeman, mother of Erich Burkstrand, brought suit individually, and as conservator of the estate of Erich Burkstrand against National Farmers Union Property and Casualty Company (Farmers Union) for bad faith under § 33-18-201, which prohibits unfair claims…”
Redies v. Attorneys Liab. Prot. Soc'y, 2007 MT 9 (Mont. 2007). · cites it 32× “ALPS ¶21 On December 9, 2003, Redies filed the instant action alleging, pursuant to § 33-18-242(1), MCA, that ALPS had violated § 33-18-201, MCA, during the foregoing negotiations in Redies v.”
Ridley v. Guar. Nat. Ins. Co., 951 P.2d 987 (Mont. 1998). · cites it 71× “Ridley sought a District Court judgment that § 33-18-201, MCA, of the Montana Unfair Trade Practices Act requires a tort-feasor's insurer to pay the actual medical expenses of a tort victim as they are incurred when liability is reasonably clear.”
Britton v. Farmers Ins. Grp., 721 P.2d 303 (Mont. 1986). · cites it 40× “tled to a directed verdict from the District Court on the question of bad faith and Britton's claim for extra-contractual damages; that the District Court erred in refusing to permit FIG to introduce evidence of information which FIG had obtained and relied on in reaching its…”
Heggem Ex Rel. Heggem v. Capitol Indem. Corp., 2007 MT 74 (Mont. 2007). · cites it 28× “Section 33-18-242(1), MCA, establishes a cause of action by an insured or a third-party claimant against an insurer for actual damages caused by the insurer’s violation of subsection (1), (4), (5), (6), (9), or (13) of § 33-18-201, MCA. Although the Heggems did not reference a…”
Show all 210 citing cases →
— Mont. Code Ann. § 33-18-201(1) — 24 cases
Jacobsen v. Allstate Ins., 2013 MT 244 (Mont. 2013). “The named representative did not lack individual standing because of any factual differences in the substantive details of his claim, but for bringing a claim under § 33-18-201, MCA, despite the absence of any judgment in, or settlement of, his underlying claim as required by §…”
Lorang v. Fortis Ins., 2008 MT 252 (Mont. 2008). “Additionally, in accordance with the Legislature’s express purpose of prohibiting unfair and deceptive claims-adjustment practices, the UTPA provides that punitive damages may be assessed *46 against an insurer for such a misrepresentation.”
Heggem Ex Rel. Heggem v. Capitol Indem. Corp., 2007 MT 74 (Mont. 2007). “Section 33-18-242(1), MCA, establishes a cause of action by an insured or a third-party claimant against an insurer for actual damages caused by the insurer’s violation of subsection (1), (4), (5), (6), (9), or (13) of § 33-18-201, MCA. Although the Heggems did not reference a…”
Jacobsen v. Allstate Ins., 2009 MT 248 (Mont. 2009).
Marshall v. Safeco Ins. Co. of Ill., 2018 MT 45 (Mont. 2018).
— Mont. Code Ann. § 33-18-201(10) — 1 case
O Hern v. Prankratz, 2001 MT 35 (Mont. 2001).
— Mont. Code Ann. § 33-18-201(13) — 13 cases
Ridley v. Guar. Nat'l Ins., 951 P.2d 987 (Mont. 1997). “Section 33-18-201, MCA, of the Unfair Claims Practices Act, requires that plaintiff prove that the insurer's conduct complained of occur "with such frequency as to indicate a general business practice" and, therefore, even if Ridley's interpretation of the statute is correct,…”
Juedeman v. Nat'l Farmers Union Prop. & Cas. Co., 833 P.2d 191 (Mont. 1992). “Plaintiff Cindy Juedeman, mother of Erich Burkstrand, brought suit individually, and as conservator of the estate of Erich Burkstrand against National Farmers Union Property and Casualty Company (Farmers Union) for bad faith under § 33-18-201, which prohibits unfair claims…”
Harris v. Am. Gen. Life Ins. Co. of Del., 658 P.2d 1089 (Mont. 1983).
Ridley v. Guar. Nat. Ins. Co., 951 P.2d 987 (Mont. 1998). “Ridley sought a District Court judgment that § 33-18-201, MCA, of the Montana Unfair Trade Practices Act requires a tort-feasor's insurer to pay the actual medical expenses of a tort victim as they are incurred when liability is reasonably clear.”
Watters v. Guar. Nat'l Ins., 2000 MT 150 (Mont. 2000). “Accordingly, the discussion and holdings herein are limited by the foregoing, and specifically limited to those claims for damages brought by a third-party claimant against a clearly liable party and his or her automobile liability insurer, and only for the mandatory coverage…”
— Mont. Code Ann. § 33-18-201(14) — 6 cases
Wiard v. Liberty Nw. Ins. Corp., 2003 MT 295 (Mont. 2003).
Safeco Ins. v. Ellinghouse, 725 P.2d 217 (Mont. 1986).
Montana Petroleum Tank Release Comp. Bd. v. Capitol Indem. Co., 2006 MT 133 (Mont. 2006).
Ensey v. Colorado Cas., 2001 MT 152 (Mont. 2001).
Parker v. Safeco Ins. Co. of Am., 2016 MT 173 (Mont. 2016).
— Mont. Code Ann. § 33-18-201(2) — 7 cases
Palmer v. Farmers Ins. Exch., 861 P.2d 895 (Mont. 1993).
Julie Holmgren v. State Farm Mut. Auto. Ins. Co., Julie Holmgren v. State Farm Mut. Auto. Ins. Co., 976 F.2d 573 (9th Cir. 1992).
Nelson v. Farmers Union Mut. Ins., 2003 MT 101 (Mont. 2003).
Am. Cas. Co. of Reading v. Bank of Montana Sys., 675 F. Supp. 538 (D. Minnesota 1987).
Samson v. Cincinnati Ins. (In Re Blixseth), 470 B.R. 871 (Bankr. D. Mont. 2012).
— Mont. Code Ann. § 33-18-201(2)(3) — 1 case
State Ex Rel. United States Fid. & Guar. Co. v. Montana Second Jud. Dist. Court, 783 P.2d 911 (Mont. 1989).
— Mont. Code Ann. § 33-18-201(3) — 2 cases
Landa v. Assurance Co. of Am., 2013 MT 217 (Mont. 2013).
Hop v. Safeco Ins. Co. of Illinois, 2011 MT 215 (Mont. 2011).
— Mont. Code Ann. § 33-18-201(4) — 44 cases
Lorang v. Fortis Ins., 2008 MT 252 (Mont. 2008). “Additionally, in accordance with the Legislature’s express purpose of prohibiting unfair and deceptive claims-adjustment practices, the UTPA provides that punitive damages may be assessed *46 against an insurer for such a misrepresentation.”
Shilhanek v. D-2 Trucking, Inc., 2003 MT 122 (Mont. 2003). “¶13 The Shilhaneks subsequently filed a cross-claim against Canal, asserting, inter alia, that Canal’s refusal to pay their undisputed medical expenses without a release violated subsections (6) and (13) of § 33-18-201, MCA (1997). Section 33-18-201, MCA (1997), provides, in…”
Redies v. Attorneys Liab. Prot. Soc'y, 2007 MT 9 (Mont. 2007). “ALPS ¶21 On December 9, 2003, Redies filed the instant action alleging, pursuant to § 33-18-242(1), MCA, that ALPS had violated § 33-18-201, MCA, during the foregoing negotiations in Redies v.”
Revelation Indus., Inc. v. St. Paul Fire & Marine Ins., 2009 MT 123 (Mont. 2009).
McVey v. USAA Cas. Ins., 2013 MT 346 (Mont. 2013).
— Mont. Code Ann. § 33-18-201(4)(6) — 2 cases
Shilhanek v. D-2 Trucking, Inc., 2003 MT 122 (Mont. 2003). “¶13 The Shilhaneks subsequently filed a cross-claim against Canal, asserting, inter alia, that Canal’s refusal to pay their undisputed medical expenses without a release violated subsections (6) and (13) of § 33-18-201, MCA (1997). Section 33-18-201, MCA (1997), provides, in…”
Shilhanek v. D-2 Trucking, Inc., 2003 MT 122 (Mont. 2003).
— Mont. Code Ann. § 33-18-201(5) — 4 cases
Thomas v. Nw. Nat'l Ins., 1998 MT 343 (Mont. 1998).
Draggin' Y Cattle Co. v. Junkermier, Clark, Campanella, Stevens, P.C., 439 P.3d 935 (Mont. 2019).
Harman v. MIA Serv. Contracts, 858 P.2d 19 (Mont. 1993).
Draggin' Y Cattle Co., Inc. v. Junkermier, Clark, Campanella, Stevens, P.C. (D. Mont. 2020).
— Mont. Code Ann. § 33-18-201(6) — 62 cases
Lorang v. Fortis Ins., 2008 MT 252 (Mont. 2008). “Additionally, in accordance with the Legislature’s express purpose of prohibiting unfair and deceptive claims-adjustment practices, the UTPA provides that punitive damages may be assessed *46 against an insurer for such a misrepresentation.”
Shilhanek v. D-2 Trucking, Inc., 2003 MT 122 (Mont. 2003). “¶13 The Shilhaneks subsequently filed a cross-claim against Canal, asserting, inter alia, that Canal’s refusal to pay their undisputed medical expenses without a release violated subsections (6) and (13) of § 33-18-201, MCA (1997). Section 33-18-201, MCA (1997), provides, in…”
Watters v. Guar. Nat'l Ins., 2000 MT 150 (Mont. 2000). “Accordingly, the discussion and holdings herein are limited by the foregoing, and specifically limited to those claims for damages brought by a third-party claimant against a clearly liable party and his or her automobile liability insurer, and only for the mandatory coverage…”
Klaudt v. Flink, 658 P.2d 1065 (Mont. 1983). “The sole issue presented by this appeal is whether the Montana Unfair Trade Practices section of the Insurance Code, specifically section 33-18-201(6), MCA, gives the plaintiffs a cause of action against a defendant's insurer, which can be prosecuted jointly with an action…”
Jacobsen v. Allstate Ins., 2013 MT 244 (Mont. 2013). “The named representative did not lack individual standing because of any factual differences in the substantive details of his claim, but for bringing a claim under § 33-18-201, MCA, despite the absence of any judgment in, or settlement of, his underlying claim as required by §…”
— Mont. Code Ann. § 33-18-201(7) — 5 cases
Hart-Anderson v. Hauck, 748 P.2d 937 (Mont. 1988).
Kaseta v. N. W. Agency of Gr. Falls, 827 P.2d 804 (Mont. 1992).
Drange v. Mountain West Farm Bureau Mut. Ins. Co. (D. Mont. 2020).
Reeves v. Safeco Ins. Co. of Illinois (D. Mont. 2020).
Fachner v. Safeco Ins. Co. of Am. (D. Mont. 2025).
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