Depreciation of Labor - Deadline Extension

# COMMISSIONER OF SECURITIES & INSURANCE MATTHEW M. ROSENDALE, SR. COMMISSIONER  OFFICE OF THE MONTANA STATE AUDITOR TO: All Property Insurers and Licensed Adjusters FROM: Derek J. Oestreicher Special Assistant Attorney General DATE: March 5, 2020 SUBJECT: Extension Notice re: CSI Advisory Memorandum on Depreciation of Labor The Commissioner of Securities and Insurance (CSI) issued an advisory memorandum dated December 23, 2019, stating CSI's position that labor may not be depreciated in Montana. In this memo, CSI established March 31, 2020, as the deadline for insurers to submit or resubmit policy forms. Further, CSI established that insurers would be required to supply policyholders and certificate holders with corrected forms within 60 days following approval. After receiving comment from industry stakeholders concerning the above-stated timeframes, CSI is granting an extension as follows: Insurers who have policy forms currently in use that attempt to apply depreciation to labor must revise those policy forms, through an endorsement or otherwise, and submit them to the CSI for approval no later than June 1, 2020. Once the forms have been approved the correct version must be mailed to all policyholders and certificate holders within 60 days following approval. If you have questions regarding claims handling or form filings, please contact the CSI Policyholder Services Bureau or the CSI Forms Bureau. Thank you, Derek J. Oestreicher Derek J. Oestreicher Special Assistant Attorney General Phone: 1-800-332-6148 / (406) 444-2040 / Main Fax: (406) 444-3497 Securities Fax: (406) 444-5558 / PHS Fax: (406) 444-1980 / Legal Fax: (406) 444-3499 840 Helena Ave., Helena, MT 59601 Website: www.csimt.gov E-Mail: csi@mt.gov