(1) Except as provided in (2) , disability insurance is synonymous with health insurance and includes insurance of human beings:

(a) against bodily injury, disablement, or death by accident or accidental means or the medical expense or indemnity involved; or

(b) against disablement or medical expense or indemnity resulting from sickness.

(2) Disability insurance does not include credit disability insurance or workers' compensation insurance.

(3) The insurance policy must meet the requirements of the small employer health insurance availability act described in 33-22-1801 , MCA, except to the extent that part of Title 33 is inconsistent with the provisions of 15-31-132 , MCA, before the insurance premiums paid by the employer are eligible for the credit.

(4) If a corporation qualifies for the credit and has elected S-corporation status, the credit may be claimed by the individual shareholders based upon the pro rata share of ownership in the corporation.

(5) If a partnership qualifies for the credit, the credit must be attributed to the partners in the same proportion used to report the partnership's income or loss for Montana income tax purposes.

(6) Form HI must be completed for the year the credit is claimed and attached to Montana form 2, for an individual taxpayer, and to form CLT-4, for a C corporation.

(7) A taxpayer who files a tax return electronically must complete form HI and retain the form and submit it to the department upon request.