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Montana's Proposed 2017 Captive Insurance Legislative Changes

Montana Capitol Building 480x377
February 28, 2017

The Montana Captive Insurance Association, Inc. (MCIA), is actively promoting the passage of Senate Bill 245 (SB 245), which would affect captive companies organized as reciprocal insurers or as dormant captive insurers. With regard to a reciprocal insurer, Montana's proposed captive legislation removes the requirement that the insurer have 25 or more persons domiciled in Montana. All other provisions related to reciprocal insurers are still applicable.

The bill also introduces new law that will permit captive insurers to be placed into dormancy. The certificate of dormancy is subject to expiration at the end of a consecutive 5-year period, with the company being subject to a $1,000 annual dormancy tax (to be due March 1 of each year) and maintain a paid-in capital and surplus of not less than $25,000. Montana's proposed captive legislation also removes the requirements of examinations and investigations of companies existing under a certificate of dormancy.

MCIA board members Brenda Ash and John Huth joined the association's lobbyist, testifying in support of SB 245 at a hearing before the Senate's Business and Labor Committee. SB 245 is sponsored by Senator Dan Salomon, and the MCIA has indicated it is cautiously optimistic about the passage of the legislation.

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