33-17-1111. Resident insurance producer required -- reciprocity -- countersignature -- records. (1) An authorized insurer may not issue a policy covering a subject of insurance residing, located, or to be performed in Montana unless:
     (a) the policy is written through a licensed insurance producer residing in Montana;
     (b) the policy is written through a licensed nonresident insurance producer and, if a countersignature would be required by the resident state of the nonresident insurance producer upon a Montana resident insurance producer writing business in the resident state of the nonresident insurance producer, the policy or countersignature endorsement attached to the policy is countersigned by a Montana resident licensed insurance producer; or
     (c) the policy is written through a licensed nonresident insurance producer who is a resident of a state that does not require countersignatures.
     (2) A countersignature may not be made in blank. The insurance producer may by express written authorization given in advance delegate to his salaried clerical employee the power to countersign in the name of the insurance producer those policies or classes of policies designated in the authorization if the initials of the employee are written below the insurance producer's name on the countersignature, but the insurance producer may not thereby delegate or have power to delegate to a person the power or authority to bind an insurer with respect to a risk not already bound by the insurance producer or other person having clear authority from the insurer to bind. The insurance producer is responsible for all of the acts of the employee within the scope of the authority delegated. The insurance producer shall keep a record of all coverages countersigned by him or by his authority.
     (3) This section does not apply to:
     (a) reinsurance;
     (b) life insurance, disability insurance, or annuity contracts;
     (c) insurance of the rolling stock, vessels, or aircraft of any common carrier in interstate or foreign commerce or of any vehicle principally garaged and used in another state or covering any liability or other risks incident to the ownership, maintenance, or operation of any common carrier or vehicle;
     (d) insurance of property in course of transportation interstate or in foreign trade or any liability or risk incident to the insurance;
     (e) insurance of wet marine and transportation risks;
     (f) countersignature to policies issued through insurance producers compensated only by salary or issued by insurers not using insurance producers in the general solicitation of business;
     (g) bid bonds, as required under Title 18, chapter 1, part 2.
     (4) Violation of this section does not invalidate a policy otherwise valid as between the insurer and the insured.

     History: En. Sec. 67, Ch. 286, L. 1959; amd. Sec. 1, Ch. 72, L. 1963; R.C.M. 1947, 40-2822; amd. Sec. 12, Ch. 345, L. 1979; amd. Sec. 2, Ch. 395, L. 1983; amd. Sec. 56, Ch. 713, L. 1989.