If a small company can no longer offer group disability insurance, can employees convert their coverage to individual policies?

Under Montana law, when a group disability insurance policy is terminated, employees generally have the right to convert their group coverage to individual policies. However, this right to convert is conditioned on the length of time that the employees were insured under the group policy. If employees have been insured for at least three months, they are eligible to apply for individual policies without having to provide evidence of insurability. This provision assists in ensuring that employees do not face a gap in coverage after the group policy ends.

The three-month requirement is significant because it establishes a threshold of continuity in coverage, which helps insurers manage their risk while still allowing employees some flexibility in maintaining their insurance protection. Therefore, the correct answer reflects the legal provision that offers employees the ability to secure individual policies after being part of the group plan for the stipulated duration.