Umbrella and excess liability, professional liability, surety and fidelity bonds, and other specialty casualty coverages are covered in the national Other Casualty guide. Montana's Casualty exam adds a few state rules, mainly protections for professionals who buy malpractice coverage.

Professional liability in Montana

• Who counts as a professional (Mont. Code Ann. 33-9-101). Montana's professional liability definitions cover:

  • attorneys
  • certified public accountants and public accountants
  • architects
  • veterinarians
  • pharmacists
  • professional engineers
  • licensed health care providers

• What malpractice insurance is (33-1-206(1)(j)). Montana classifies it as casualty insurance against liability for negligence in rendering expert, fiduciary or professional service.

• Unfounded claims can't be held against the insured (33-23-301). A claim later found unfounded, on which nothing was paid, can't be the ground for canceling the policy or raising the premium during the policy term.

• 60 days' notice for a physician's coverage (33-23-302). An insurer covering a physician's professional liability must give at least 60 days' written notice before it:

  • cancels the policy,
  • alters it, or
  • raises the premium rate.

  The general P&C notice for midterm cancellation is only 10 days, so this is longer.

Defense costs and limits

The commissioner may disapprove a casualty form that puts defense costs inside the policy limits, unless the commissioner permits it (33-1-502(2)).

Related Montana classifications

• Boiler and machinery (equipment breakdown) insurance is a kind of casualty insurance in Montana (33-1-206(1)(g)).
• Credit insurance, against loss from debtors' failure to pay, is also a casualty line (33-1-206(1)(i)).
• Surplus lines placements are often used for unusual liability risks. The producer must first make a diligent effort with three authorized insurers, and must tell the insured the guaranty fund won't pay if the surplus lines insurer fails (33-2-302, 33-2-303).

Common exam traps

• Changing or canceling a physician's malpractice policy, or raising its rate, requires 60 days' notice.
• An unfounded claim with no payment can't be used to cancel or surcharge during the term.
• Montana may reject forms with defense inside limits unless the commissioner allows it.