Members of the Montana Senate have expressed support for a proposed measure aimed at preventing insurance companies from cancelling policies over “zero-dollar claims.”
The bill has been tabled in a senate committee for several weeks with carriers currently able to cancel policies, prevent renewal or hike rates over customer inquiries for a potential claim, even if the company did not shell out for a payout related to the incident.
“What’s particularly ironic about this is most policies require you to report any potential claims, whether anything comes of it or not. I don’t think it’s fair. I don’t think it’s right,” Senator Mary McNally told the
Billings Gazette.
Further, Senator McNally noted that the problem first surfaced when 100s of policies were cancelled in Billings over inquiries made after several hailstorms hit the area based on calculations of risk and not actual payouts.
If passed, the bill would apply to a diverse range of policies, including homeowners, auto, commercial property and professional liability.
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