(1)  The following is a description of the organization of the Office of the State Auditor, ex officio Commissioner of Insurance, ex officio Commissioner of Securities.

(a)  History.  The position of the State Auditor was created by Article VII, section 1, of the 1889 Constitution of Montana and was continued by Article VI, section 1, of the 1972 Constitution.  The position of State Auditor, ex officio Commissioner of Insurance, was created by 2-15-1903, MCA, effective January 1, 1961.  The position of State Auditor, ex officio Commissioner of Securities, was created by 2-15-1901, MCA, effective July 1, 1961. The Office of the State Auditor operates as a criminal justice agency.

(b)  State Auditor.  The State Auditor is the department head and is elected by the qualified voters of Montana as provided by law at a statewide general election and holds office for a term of four years, and until a successor is elected and qualified.  The State Auditor is responsible for administration of the Office of the State Auditor and its divisions, and serves as both ex officio Commissioner of Insurance, and ex officio Securities Commissioner.  The State Auditor also serves as a member of the Board of Land Commissioners and the Crop Hail Insurance Board. 

(c)  Deputy State Auditor.  The Deputy State Auditor is the highest-ranking appointment in the agency.  The Deputy State Auditor provides oversight of the Insurance, Securities, and Legal Services Divisions.

(d)  Divisions and Units:  The Office of the State Auditor consists of four divisions and a separate Communications Unit.  The divisions are further divided into bureaus or units, headed by chiefs, directors, or deputies.  A list of the divisions and units are as follows: 

(i)  Insurance Division;

(ii)  Securities Division;

(iii)  Legal Services Division;

(iv)  Central Services Division;

(v)  Communications Unit.

(2)  Functions of divisions and unit are as follows:

(a)  The State Auditor's Office works to ensure compliance with the Montana insurance and securities laws, promotes captive insurance formations, supports capital formation in the state, and assists consumers with complaints involving the securities and insurance industries.  The State Auditor is charged with licensing, registering, and regulating insurance companies and producers, securities issuers, salespeople, broker-dealers, investment advisors, and investment adviser representatives with the State of Montana. 

(b)  Insurance Division.  The Insurance Division is headed by the deputy insurance commissioner.  The Insurance Division is responsible for providing protection for Montana insurance consumers and resolving insurance consumer inquiries and complaints involving agents, coverage, and companies, and for administering the Montana Insurance Code to keep it consistent with the Securities Division.  The division also monitors the financial solvency of insurance companies operating in Montana through financial analyses and examinations; collects premium taxes and company fees paid by insurance companies operating in Montana; reviews rate and form filings to ensure compliance with the Montana Insurance Code; and licenses and provides continuing education to insurance agents, agencies, and adjustors.  The division is comprised of the following five bureaus:  Examinations and Captives, Producer Licensing and Market Conduct, Rates, Forms, and Insurance Consumer Services.  

(c)  Securities Division.  The Securities Division is headed by the deputy securities commissioner.  The Securities Division educates Montana consumers and investors, promotes capital formation, and oversees Montana's intrastate securities industry and is responsible for administration of the Securities Act of Montana.  The department is responsible for registering securities, security issuers, salespeople, broker-dealers, investment advisers, and investment adviser representatives. The division also investigates unregistered or fraudulent securities transactions.

(d)  Legal Services Division.  The Legal Services Division is headed by the chief legal counsel and provides legal support for the agency.  The Legal Services Division handles agency legal questions, Advisory Memoranda and opinion requests, administrative actions, court proceedings, and other legal matters.  The Legal Services Division enforces Montana securities and insurance laws, holds bad actors accountable through prosecution of criminal and civil cases, and represents the Commissioner and agency in legal matters or cases.  The Investigations Bureau is housed within the Legal Services Division, and investigates criminal and civil insurance fraud, complaints, as well as other violations of the Montana Insurance Code.

(e)  Central Services Division.  The Central Services Division is headed by the Chief of Staff, and provides administrative support in the areas of accounting, fiscal, and budget, human resources, and information technology.  Additionally, the Central Services Division provides support in fulfilling the Commissioner's duties as a member of the Board of Land Commissioners and Crop Hail Insurance Board.  The division is also a conduit for the distribution of the state fire and police retirement program.  The division consists of the following three units: Accounting, Fiscal & Budget; Human Resources; and Information Technology.

(f)  Communications Unit.  The Communications Unit, which is also headed by the chief of staff, handles public inquiries and distributes information to the public.

(3)  Information or submissions.  General inquiries regarding the Office of the State Auditor may be addressed to the State Auditor.  Specific inquiries regarding the functions of a particular division may be addressed to the deputy in charge of that division.  All requests for hearing, declaratory rulings, and participation in rulemaking may be addressed to the State Auditor unless the notice in the Montana Administrative Register makes specific provisions for submissions.

(4)  Chart of the Office of the State Auditor.  An organizational chart of the Office of the State Auditor follows this rule and is incorporated by this reference.