Insurance Requirements

The Department of Labor and Industry is the regulatory agency for the workers' compensation system in Montana. In order for the department to identify your company, we must have your Federal Employer Identification number, NCCI number, and NAIC number. Our database tracks carriers by these numbers and will not allow policy or claims reporting and processing without these numbers.

Montana laws require insurers to report all policies issued and canceled within specified time frames. New and renewal policies must be reported within 30 days of the policy issuance date, and cancellations require 20 days notice. Beginning January 1, 2006, notice to the department under this section must be provided electronically. Please refer to 39-71-2204 and 2205 MCA.

Montana is a National Council on Compensation Insurance (NCCI) proof of coverage state. Insurance companies providing workers' compensation for Montana employers will be required to submit coverage information directly to NCCI on forms prescribed by NCCI, namely Form #WC 00 00 01A for new and renewal policies, and form #WC 8 06 09A for cancellations. For more information on reporting to NCCI please call 1-800-622-4123.

Coverage information is provided to the Montana Department of Labor and Industry electronically from NCCI's database. Reporting the insured's Federal Identification number (FEIN) is mandatory for each Montana Workers' Compensation policy.

Insurance companies who write workers' compensation policies for Professional Employer Organizations (PEOs) are required to submit a PEO Client Reporting form to the department, unless individual policies are written for the clients and reported to NCCI. This form is in addition to the policy reporting requirements stated in Section 39-71-2204 MCA. The form has been developed to track individual client companies and is needed whenever addition or termination of coverage occurs for individual client companies pursuant to Section 39-71-2205 MCA. All changes of coverage for client companies of PEOs must be reported to the department using this form or a facsimile. Please note, the department cannot verify proper Montana coverage for employees leased to a client without receipt of the Client Reporting form from the insurance company, unless individual policies are written for the clients and reported to NCCI. 

As specified in 39-8-403 MCA, an insurer of a PEO must base classifications and rates applicable to the payroll of a worker as though the worker is a direct employee of the client. In addition, insurers who write workers' compensation policies in Montana for Professional Employer Organizations are required to audit policies issued to a PEO within 90 days of the policy effective date. The audit is to determine whether all classifications, experience modification factors, and estimated payroll used are appropriate. Please contact Amber Weekes at amber.weekes2@mt.gov or at 406-444-7748 for more information.

The department requires that each insurer maintain a claims examiner in Montana or utilize the services of an independent claims examiner within the state. The person examining the claims is required to determine the entitlement of benefits, authorize payment of all benefits due, manage the claim and have authority to settle the claim. If you are authorized for workers' compensation in Montana, please advise us who will represent your company.

The department requires insurers and examiners to notify us of any location changes with respect to the handling of Montana workers' compensation claims. The office of the claims examiner assuming the account must notify the department in writing within 30 days from the time the account is transferred. It is ultimately the responsibility of the insurer to continually inform the department of the location of Montana claim files.

Insurers are to file a complete report of every accident with the department, either on a paper claim form purchased from the department or by electronic means. If you have any questions on electronic claims reporting, please contact Doug Roope at (406) 444-1600 or doug.roope@mt.gov.

When insurers issue a policy to employers, they must also provide the employers with an Employee Notice, which employers in turn must post at each worksite. The Department of Labor can provide the standardized format to insurers, and insurers are responsible for having the Employee Notice reprinted in the same format and distributed to employers. The department now has available a Spanish version of the Employee Notice. To obtain this form, please call (406) 444-6543.

Quarterly Expenditure Report forms must be submitted on a quarterly basis, beginning when your company writes policies for Montana and/or has "paid losses" during the applicable period, per 39-71-306 MCA. Report forms can be obtained from the department by calling (406) 444-6543; the report forms include instructions located at the bottom of the page. Insurance carriers and self-insurers authorized to write workers' compensation insurance in Montana are subject to various assessments.

At the end of each State fiscal year, July 1 through June 30,each insurer will receive the Administrative Assessment Report and an Assessment Billing Statement. The Administrative Assessment funds the operations of the Employment Relations Division.

The costs are equitably distributed to all authorized carriers annually. The calculation is 3% of all compensation and medical benefits (except medical paid in excess of $200,000 per claim) paid during the preceding calendar year, with a minimum of $500. The annual reconciliation benefits paid information is to be submitted to the department by March 1st of each year.

The division can assess each insurer to maintain the Subsequent Injury Fund. The assessment amount, distributed against all insurers, is the total amount of paid losses reimbursed from the Fund in the preceding calendar year and the expense of administering the Fund. Notification of this assessment will be sent prior to May 31 of each year.

• Montana is a NCCI proof of coverage state.
• Insurers must report notice of coverage within 30 days of policy issuance, per 39- 71-2204 MCA.
• Insurers must report coverage to Montana – requires a FEIN of the insured.
• Insurers must provide policy cancellations at least 20 days prior to the date of cancellation , per 39–71–2205 MCA.
• Insurers must report PEO client companies on Client Company Reporting

    forms directly to the department, if individual policies are not written.

• Insurers are to utilize a claims examiner in this state, per 39–71–107, MCA.
• Insurers are required to submit quarterly expenditure reports, 39-71-306 MCA.
• Insurers of PEOs are required to audit within 90 days of effective date, per 39-8-403 MCA.
• Insurers are assessed annually in Montana, per 39-71-201, 915, and 1004, MCA.

This information is by no means a complete guide to the Montana workers' compensation system. If you would like a copy of the Montana Workers' Compensation & Occupational Disease Law, please click here for the Blue Book order form.

 If you have any questions, please call (406) 444-6543.

Employment Relations Division
PO Box 8011
Helena, MT 59604-8011
(406) 444-6543