The State of Montana has introduced new legislation that will affect captives companies organised as a reciprocal insurers or a dormant captive insurer.
Signed into law by Governor Steve Bullock, Senate Bill 245 removes the requirement that the insurer have 25 or more persons domiciled in Montana, with regards to a reciprocal insurer.
The law also permits captive insurers to go into dormancy, and removes the requirements of examinations and investigations of the company to a company operating under a certificate of 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 due March 1 of each year and maintain a paid-in capital and surplus of not less than $25,000.
Two board members of the Montana Captive Insurance Association, Brenda Ash and John Huth, had joined the association’s lobbyist in Helena for multiple lobbying during the legislative session, securing the support of key House and Senate members.
The MCIA said in a statement: “This latest positive result builds off MCIA successes in previous legislative sessions where it has effectively collaborated with the state’s captive regulators, key business organisations and many members of the Legislature of both political parties to accelerate the growth of Montana’s captive insurance industry.”
Montana, Legislation, Captives, North America