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69th Legislature 2025 HB 464.1
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1 HOUSE BILL NO. 464
2 INTRODUCED BY S. FITZPATRICK
3
4 A BILL FOR AN ACT ENTITLED: “AN ACT REVISING INSURANCE LAWS RELATING TO INTEREST OF A
5 NAMED INSURED AND CHANGE OF INTEREST BY TRANSFER ON DEATH; PROVIDING THAT INTEREST
6 IN PROPERTY BY A TRANSFER ON DEATH DEED ON THE DEATH OF AN INSURED DOES NOT AVOID
7 AN INSURANCE OF REAL PROPERTY; AMENDING SECTIONS 33-15-206 AND 72-6-412, MCA; AND
8 PROVIDING AN IMMEDIATE EFFECTIVE DATE.”
9
10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
11
12 Section 33-15-206, MCA, is amended to read:
13 "33-15-206. (1) When the
14 name of the person insured is specified in a policy insuring property, the insurance can be applied only to the
15 person's own proper interest.
16 (2) A change of interest, by will or succession, on the death of the insured does not avoid an
17 insurance of property, and the insurance passes to the person taking the insured's interest in the thing insured.
18 A change of interest in real property by a transfer on death deed on the death of the insured does not avoid an
19 insurance of real property, and the insurance coverage continues beyond the death of the named insured in
20 accordance with 72-6-412(5) and policy coverage.
21 (3) A transfer of interest by one of several partners, joint owners, or owners in common, who are
22 jointly insured, to the others does not avoid an insurance of property even though it has been agreed that the
23 insurance must cease upon an alienation of the thing insured."
24
25 Section 72-6-412, MCA, is amended to read:
26 "72-6-412.
27 in the transfer on death deed, in 72-2-712, 72-2-716, 72-2-813, 72-2-814, 72-6-112, or in this section, and
28 subject to chapter 2, part 2, of this title, on the death of the transferor, the following rules apply to property that ****
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1 is the subject of a transfer on death deed and owned by the transferor at death:
2 (a) Subject to subsection (1)(b), the interest in the property is transferred to the designated
3 beneficiary in accordance with the deed.
4 (b) The interest of a designated beneficiary is contingent on the designated beneficiary surviving
5 the transferor. The interest of a designated beneficiary that fails to survive the transferor lapses.
6 (c) Subject to subsection (1)(d), concurrent interests are transferred to the beneficiaries in equal
7 and undivided shares with no right of survivorship.
8 (d) If the transferor has identified two or more designated beneficiaries to receive concurrent
9 interests in the property, the share of one which lapses or fails for any reason is transferred to the other, or to
10 the others in proportion to the interest of each in the remaining part of the property held concurrently.
11 (2) Subject to Title 70, chapter 21, a beneficiary takes the property subject to all conveyances,
12 encumbrances, assignments, contracts, mortgages, liens, and other interests to which the property is subject at
13 the transferor's death. For the purposes of this subsection and Title 70, chapter 21, the recording of the transfer
14 on death deed is deemed to have occurred at the transferor's death.
15 (3) If a transferor is a joint owner and is:
16 (a) survived by one or more other joint owners, the property that is the subject of a transfer on
17 death deed belongs to the surviving joint owner or owners with right of survivorship; or
18 (b) the last surviving joint owner, the transfer on death deed is effective.
19 (4) A transfer on death deed transfers property without covenant or warranty of title even if the
20 deed contains a contrary provision.
21 (5) (a) On transfer of interest in the property after the death of the owner pursuant to a transfer on
22 death deed in this section, any insurance coverage on the real property transferred must be extended to cover
23 losses to the real property as if the designated beneficiary identified on the transfer on death deed was the
24 named insured. The beneficiary's temporary coverage terminates the earlier of:
25 (i) 45 days after the date of the owner's death;
26 (ii) the expiration date of the policy; or
27 (iii) on placement of the beneficiaries' replacement policy.
28 (b) Nothing in this subsection (5) affects any coverage provided under the policy to household ****
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1 members or others who are considered to be insureds on the death of the owner."
2
3 NEW SECTION. Section 3. [This act] is effective on passage and approval.
4 - END -