K-W Industries v. National Surety Corp.

In this case we determine that a business entity which is licensed under Montana law to transact the business of insurance, and which issues as a part of its business a contract of suretyship guaranteeing the performance of an underlying contract in Montana (1) is transacting a class of insurance business under Montana law; (2) is subject in the transaction of its business to the Montana Unfair Claims Settlement Practices Act (Section 33-18-201, et seq. MCA); and (3) is liable in a tort action for violations of Section 33-18-201, MCA, for damages beyond the express terms of the suretyship…