On November 6, 2024, the Montana Commissioner of Securities and Insurance (CSI) issued an Advisory Memorandum regarding defense within limits (DWL) provisions.

The Advisory Memorandum states that DWL or like provisions are not acceptable in personal insurance policies and that the Commissioner will disapprove any proposed personal insurance form that contains such provisions. For commercial lines of insurance, DWL provisions will be permitted and not disapproved by the Commissioner as long as the provision is conspicuously disclosed in terms of its appearance within the form and the practical meaning and effect of the provision. An example of the conspicuous disclosure that should occur prominently on the first page of the declaration page and policy application is provided.

Please see the Advisory Memorandum for more information.