House Passes Bill Allowing Termination of Benefits for Fraud, Factual Mistakes

The Montana House of Representatives over the weekend passed a bill that would allow carriers to terminate benefits on claims they accepted either as a result of fraudulent statements or factual mistakes. Senate Bill 184, by Sen. Frederick Moore, R-Miles City, would authorize carriers to deny liability for already accepted claims if those claims were accepted “because of fraud or mutual mistake of a material fact.” The measure would also allow carriers to shut down accepted claims upon receiving “clear and convincing evidence that the insurer was not liable for the compe...