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Key Person Insurance in Montana

A life policy’s guaranty-association death-benefit protection in Montana is capped at $300,000 per insured life. If your business is insuring more than one key person or buying a large benefit, ask how the state limit applies to each insured and to policies held by the same owner. Montana’s group employee-life statute requires the policy to cover all employees or a class defined by employment conditions when the employer is policyholder. Ask the broker whether the proposal is an individual key-person policy or a group policy subject to that class rule. Compare your ownership and insured’s role with Mont. Code Ann. § 33-20-1101(1)–(2). 4,1

What Is Key Person?

Key person insurance pays the business, not the person’s family, when a founder, partner or employee it relies on dies. Disability, overhead expense and buyout funding are separate products to discuss on their own. Read the national Key person guide.

What to Watch for in Montana

  • Document the Business Interest

    Montana’s group employee-life statute requires the policy to cover all employees or a class defined by employment conditions when the employer is policyholder. Ask the broker whether the proposal is an individual key-person policy or a group policy subject to that class rule. 1

  • Complete Written Notice and Consent

    Montana defines employee life insurance as individual policies issued on at least five employees with employer or fund premium contributions. If your proposal is a single-person policy, ask the carrier to confirm which policy form and state classification it uses. 2,3

  • Check the State Guaranty Backstop

    NOLHGA’s Montana entry sets the reported death-benefit protection at $300,000. This is not a limit on the contract; ask the broker how it applies to your employer-owned benefit. Review it alongside the replacement-cost estimate for this insured. For issuance, also check Mont. Code Ann. § 33-20-1101(1)–(2). 4,5,1

Who Regulates Insurance in Montana

Montana Commissioner of Securities and Insurance

The Commissioner of Securities and Insurance regulates Montana insurers and producers and acts as a consumer advocate. The office accepts written or online complaints about insurers and insurance professionals. 6,7,8

Surplus-lines tax and stamping office

Reported tax rate: 2.75% of total premium (0.75% for legal professional liability) + 2.50% fire tax on applicable fire premium + 0.175% SLIP+ transaction fee on total premium Montana requires an eligible surplus-lines insurer and a statutory placement path when it is the insured’s home state. Before placement, the producing producer must advise you that the insurer is unauthorized in Montana and is not subject to the same supervision as an authorized insurer, and that if the surplus-lines insurer becomes insolvent, Montana’s property-and-casualty guaranty fund will not pay losses under the surplus-lines coverage. Confirm the applicable placement route and tax and fee bases with the producer. 9,10,12,13

  • Montana surplus-lines placement routes: When Montana is home state, §33-2-302 generally calls for an eligible insurer and evidence that the line or full amount is unavailable from authorized insurers (or, at renewal, has not become available). The evidence routes are a diligent search of at least three insurers actually writing that line in Montana (or the smaller actual market), the kind appearing on the current Approved Risk List, or natural-disaster multiperil coverage. The list names kinds and classes; it does not prove that a particular business or BOP qualifies. Section 302 separately waives search requirements for an authorized quote with a premium rate at least 10% above the eligible unauthorized quote, if commissioner-approved disclosure is provided; and for a qualifying exempt commercial purchaser (ECP), after disclosure that coverage may or may not be available from an authorized insurer that may provide greater protection with more regulatory oversight, followed by the purchaser’s later written request. Under §318, an ECP must employ or retain a qualified risk manager as defined in §319, have paid over $100,000 in nationwide commercial P&C premiums in the prior 12 months, and meet one additional §318(1)(c) criterion. Some financial thresholds adjust every five years. 12,13,11,15,18,19
  • Check the fire-tax allocation on a commercial package: Section 33-2-311 generally requires the surplus-lines producer to collect and pay the tax when Montana is home state, subject to §33-2-323. For a single-state risk with Montana as home state, §33-2-323(4) requires submission to the Commissioner, who collects the tax. Ask the producer which filing and payment route applies. CSI’s July 2026 guide lists code 1005, Commercial Package (Property & Casualty), with a 50% presumptively reasonable allocation and a 1.25% effective fire-tax rate. Treat this as an example: verify the code and allocation used for the policy; do not assume every BOP is classified as code 1005. CSI’s current schedule sets annual tax due dates (quarterly tax payments are accepted) and separate quarterly SLIP+ transaction-fee deadlines. 14,17,16,20

Providers With Documented State Licenses

These providers publish a national listing for Key person; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Montana. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. 27

Questions to Ask Before You Buy in Montana

  1. What Montana law supports our business’s insurable interest in this person, and what should we retain to prove the role?
  2. What written notice and consent must the insured receive before this policy is issued, and can coverage continue after employment ends?
  3. How would Montana’s guaranty-association limit apply to this policy and our other business-owned life policies?

Key Person in Montana: FAQ

How much of a key person life policy is protected if an insurer fails in Montana? 4,5

$300,000 is the reported Montana ceiling for life death benefits. The amount applies to guaranty coverage; ask how your ownership and insured lives are counted. NOLHGA reports an aggregate $5 million limit for one owner’s multiple nongroup life policies. 4,5

Does my business need an employee’s consent for key person insurance in Montana? 2,3,1

Yes. Federal rules require written notice and consent before issue for the employer-owned life tax exception. Montana defines employee life insurance as individual policies issued on at least five employees with employer or fund premium contributions. If your proposal is a single-person policy, ask the carrier to confirm which policy form and state classification it uses. Confirm the stated maximum face amount matches the application. For state-law details, check Mont. Code Ann. § 33-20-1101(1)–(2). 2,3,1

Key Person in Other States

Other Coverage in Montana

Sources

  1. 2025 Montana Code § 33-20-1101 — Employee Groups. State statute (Justia U.S. Codes and Statutes); Mont. Code Ann. § 33-20-1101(1)–(2). Accessed 2026-09-28.
  2. 26 U.S.C. § 101(j) — Certain employer-owned life insurance contracts. Office of the Law Revision Counsel, U.S. House of Representatives; 26 U.S.C. § 101(j)(2), (4). Accessed 2026-09-28.
  3. Internal Revenue Bulletin 2009-24 — Employer-Owned Life Insurance Contracts. Internal Revenue Service; Notice 2009-48, Q&A 6–7; written notice and consent. Accessed 2026-09-28.
  4. How You’re Protected: Coverage Levels by State. National Organization of Life & Health Insurance Guaranty Associations; Coverage Levels by State; life insurance death benefits; report current as of May 2025. Accessed 2026-09-28.
  5. Life and Health Insurance Guaranty Association Model Act. National Association of Insurance Commissioners; Section 8(A)(2)(d), owner aggregate benefit cap. Accessed 2026-09-28.
  6. Insurance. Montana Commissioner of Securities and Insurance; Official insurance regulator page; describes CSI as regulator and consumer advocate. Accessed 2026-09-28.
  7. Producer, Adjuster & Consultant Licensing. Montana Commissioner of Securities and Insurance; CSI page links to the state’s SBS Licensee Lookup and Company Lookup. Accessed 2026-09-28.
  8. Insurance Complaints & Fraud. Montana Commissioner of Securities and Insurance; Official page accepts online or written complaints about companies, producers and others; consumer advocate lines 800-332-6148 / 406-444-2040. Accessed 2026-09-28.
  9. Surplus Lines. Montana Commissioner of Securities and Insurance; CSI page: from 2026, Montana-home-state transactions use SLIP+; 2025 and earlier use the legacy portal. States the 2.75% total-premium tax (0.75% for legal professional liability), 2.50% fire tax on applicable fire premium and 0.175% total-premium SLIP+ fee; links to current Approved Risk List and eligible-surplus-lines-company list. Accessed 2026-09-29.
  10. MCA §33-2-303: Filing and endorsement of contract -- submission form. Montana Legislature / Montana Code Annotated; MCA 2025, §33-2-303(2)(b)(i)-(ii): before placement the producer affirms notice that the insurer is unauthorized and not under the same supervision, and that Montana’s P&C guaranty fund will not pay surplus-lines losses. Accessed 2026-09-29.
  11. MCA §33-2-301: Short title -- purpose -- definitions. Montana Legislature / Montana Code Annotated 2025; §33-2-301(3)(c), (h), (n): defines Approved Risk List, eligible surplus-lines insurer and natural-disaster multiperil insurance; definition only, not operative placement test or list contents. Accessed 2026-09-29.
  12. MCA §33-2-302: Home state exclusive authority -- conditions precedent to sale of surplus lines insurance. Montana Legislature / Montana Code Annotated 2025; §33-2-302(1)-(2)(a)-(c): Montana home-state scope; eligible-insurer and unavailability conditions; diligent search (three actual Montana writers or smaller market), current list, natural-disaster multiperil; 10% price and ECP no-search routes with required disclosure and written request. Accessed 2026-09-29.
  13. MCA §33-2-307: Requirements for eligible surplus lines insurers -- list of eligible surplus lines insurers. Montana Legislature / Montana Code Annotated 2025; §33-2-307(1)-(4): eligibility conditions for US-domiciled and alien unauthorized insurers; commissioner publishes an eligible-insurer list at least semiannually. No carrier-specific conclusion drawn. Accessed 2026-09-29.
  14. MCA §33-2-311: Tax on surplus lines insurance. Montana Legislature / Montana Code Annotated 2025; §33-2-311(1)-(2): when Montana is the insured’s home state, surplus-lines producer collects tax from insured and pays Commissioner; when Montana is not home state, Commissioner generally may not collect Montana tax/stamping fee, subject to cited statutory arrangement. Accessed 2026-09-29.
  15. Approved Risk List. Montana Surplus Lines Agents’ Association (current list linked from CSI Surplus Lines page); PDF header p.1: updated 2024-01-16, reviewed 2026-06-18. p.1 GL includes Contractors; pp.1-2 include Property and Builders Risk in Protection Class 9 & 10. The list names kinds/classes, not a blanket BOP or carrier guarantee. Accessed 2026-09-29.
  16. Montana Surplus Lines Premium and Fire Tax Payment and Transaction Fee Schedule. Montana Commissioner of Securities and Insurance; February 2026 schedule p.1, lines 1-6: tax and fee rates/bases; lines 7-73: invoice and due-date schedule; lines 74-76: tax year 2025 and earlier legacy portal/OPTins. Accessed 2026-09-29.
  17. How Fire Tax is Calculated in Montana. Montana Commissioner of Securities and Insurance; July 2026 guide p.1, lines 1-4 and 10-15: 2.50% fire tax is allocated by coverage; code 1005 Commercial Package (Property & Casualty) has a 50% presumptively reasonable allocation and 1.25% effective rate. Example only; does not establish BOP classification. Accessed 2026-09-29.
  18. MCA §33-2-318: Exempt commercial purchaser defined. Montana Legislature / Montana Code Annotated 2025; §33-2-318(1)(a)-(c), (2): qualified risk manager, >$100,000 prior-12-month aggregate nationwide commercial P&C premium, and at least one criterion; financial thresholds in (c)(i),(ii),(iv) adjust every five years. Accessed 2026-09-29.
  19. MCA §33-2-319: Qualified risk manager defined. Montana Legislature / Montana Code Annotated 2025; §33-2-319(1)-(2): QRM role and alternative education, experience, designation or graduate-degree qualifications; ECP note cites the defined term without summarizing those alternatives. Accessed 2026-09-29.
  20. MCA 33-2-323: Authorization for agreements regarding multistate risks. Montana Legislature; 2025 MCA, subsections (1)–(5); subsection (4) single-state transaction submission and Commissioner tax collection; no assertion that a multistate agreement is in effect. Accessed 2026-09-29.
  21. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  22. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  23. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  24. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  25. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  26. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  27. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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