Montana § 33-18-250 - Unfair Financial Planning Practices -- Producers

§ 33-18-250. Unfair Financial Planning Practices -- Producers

(Effective January 1, 2026) Unfair financial planning practices -- producers. (1) (a) An insurance producer may not directly or indirectly hold the insurance producer out to the public as a financial planner, investment adviser, consultant, financial counselor, or any other type of specialist engaged in the business of providing financial planning or advice relating to investments, insurance, real estate, tax matters, or trust and estate matters if the insurance producer: (i) is engaged in only the sale of insurance policies; and (ii) does not hold a formal and recognized financial planning or consultant certification or designation. (b) Subsection (1)(a) does not preclude an insurance producer who holds a formal and recognized financial planning or consultant certification or designation from displaying the certification or designation when only selling insurance. An insurance producer who is selling insurance as provided in this subsection (1)(b) may not charge an additional fee for services that are customarily associated with the solicitation, negotiation, or servicing of policies. (2) (a) An insurance producer may not engage in the business of financial planning without disclosing to the client prior to the execution of the agreement that: (i) the insurance producer is also an insurance producer; and (ii) a commission for the sale of an insurance product will be received by the insurance producer in addition to the fee for financial planning. (b) The disclosure requirement under subsection (2)(a) may be met by including the required information in any disclosure required by federal or state securities law. (3) (a) An insurance producer may not charge fees for financial planning unless the fees are based on a written agreement signed by the party to be charged before the services under the agreement are performed. (b) A copy of the agreement must be provided to the party to be charged at the time the agreement is signed by the party. The written agreement must specifically state: (i) the services for which the fee is to be charged; (ii) the amount of the fee to be charged or how it will be determined or calculated; and (iii) that the client is under no obligation to purchase an insurance product through the insurance producer or consultant. (c) The insurance producer shall retain a copy of the agreement for not less than 3 years after completion of services, and a copy must be available to the commissioner on request.