The Montana Commissioner of Securities and Insurance issued an advisory memorandum on the allowable uses of defense within limits (DWL) provisions according to the Montana Insurance Code.

A defense within limits provision is where the amount paid by the insurer to defend the insured against a suit or claim reduces the policy's total limit. 

Defense within limits or comparable provisions are not allowed in personal insurance policies. The Commissioner will not approve any personal insurance form that contains a DWL provision or similar provision that limits coverage for defense costs. 

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