(1) Insurers that use the services of in-house counsel for assistance in handling Montana indemnity claims shall report the cost of that legal assistance. If the insurer does not separately track and report in-house legal costs on a per-claim basis, the insurer shall report the cost allocation information required by this rule.

(2) The purpose of this cost allocation rule is to obtain a figure that reasonably reflects the per-claim cost of having in-house counsel. The insurer shall report annually upon request by the department:

(a) the dollar amount that represents the following information about the cost of in-house legal staff:

(i) total compensation (salary and cost of benefits and employer contributions) of all attorneys who provide counsel on indemnity claims;

(ii) total compensation of support staff (such as secretaries, paralegals, and assistants) working for those attorneys; and

(iii) overhead costs attributable to the legal staff, such as a proportionate share of rent or building expense and administrative costs, such as payroll and accounting; and

(b) a percentage figure that reasonably approximates the percentage of time spent by the attorneys providing advice, counsel or representation on indemnity claims.