Dear Friends, Thank you for your interest in Montana's captive insurance opportunities. Here in Montana, we're serious about developing a vibrant captive industry. Captives are a dynamic niche in the insurance marketplace. More and more companies and groups are seeing the advantages of captives: autonomy, tax benefits, regulatory efficiency, and cost, among others. My office would love to show you our cooperative, efficient and timely regulatory atmosphere. I'm confident you'll find Montana to be unique in its ability to offer one-on-one working relationships with Insurance department staff and statewide elected officials. The spectacular scenery, charming Western communities and friendly people don't hurt either. Enclosed you'll find the history of and links to Montana's captive insurance law, a complete captive insurer application packet, business location information and some general information about Montana. I hope you find this information helpful in your decision-making process. Capture some of the Montana mystique. Put your captive right here in Big Sky Country. I look forward to hearing from you soon. |
History of Montana Captive LawsProcedures for Forming a Montana Captive Insurance CompanyMontana Captive Insurer Application Instructions and FormsList of Forms, Statutes & Rules
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Sincerely, Monica J. Lindeen |
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History of Montana Captive LawsThe 2001 Legislature passed a
law allowing captive insurance companies to operate
in
The law requires
Montana-based captives to locate their headquarters
in
As demonstrated by Vermont, the captive insurance industry can provide significant economic benefit to a state. Vermont became a captive domicile in the early 1970’s. Today, Vermont has licensed more than 800 captive insurance companies from which it collects annual premium taxes of more than $25 million. In addition, an infrastructure of professional service providers (managers, accountants, lawyers, actuaries) has developed to support the industry. To date, 37 captive insurance companies have chosen Montana as their domicile, 26 having been licensed since 2005. Captive insurers domiciled in Montana provide insurance to rural hospitals, nursing homes, doctors, commercial trucking companies, contractors, and others. The anticipated premium tax collection in FY 2009 is approximately $350,000. Two Montana based captive management firms have been established in Montana to provide professional services. Long-term benefits to Montana include the potential for new jobs, an expanded tax base and increased economic activity. This year, my office worked with the Montana Legislature to pass a new law that eases requirements for captive insurance operations in Montana and will strengthen our state’s position as a captive domicile.
Procedures for Forming a Montana Captive
Insurance Company
Montana’s 57th Legislature passed legislation
allowing Captive Insurance Companies to do business.
This law will be found in Montana Code
Annotated (MCA) Title 33, Chapter 28. Updated MCAs containing this law are available on the web
site at http://data.opi.state.mt.us/bills/mca_toc/33_28.htm.
The procedures listed below should be followed to
incorporate a captive insurer in Montana and to
apply for a Certificate of Authority from the
Montana Commissioner of Securities an Insurance:
If you have any questions regarding captive insurance companies in Montana, please contact Steve Matthews at 406-444-4372 or at smatthews@mt.gov. Montana Captive Insurer Application Instructions and FormsFinancial Regulation Montana administrative rules require that an independent certified public accountant, approved by the commissioner, audit the captive annually. The applicant must select an accountant who meets the requirements of the administrative rule. You may ask the Department if your CPA is currently approved. See 6.6.6801 through 6.6.6821 ARM. Certification of Reserves Montana administrative rules require that loss reserves and loss expense reserves be certified by a Fellow of the Casualty Actuarial Society, a member in good standing of the American Academy of Actuaries, or an individual who has demonstrated his competence in loss reserve evaluation to the commissioner. The commissioner must approve the actuary. The applicant must select an actuary that meets the requirements of the administrative rule. See 6.6.6816 ARM. Review Firm If it is considered necessary, the commissioner may have the application reviewed by outside experts, with the costs of the review paid by the applicant. The outside review is of an advisory nature only and the commissioner will make final approval or disapproval of an application only. Annual Statement Form Pursuant to Section 3-28-107(2)(a), MCA, on or before March 1 of each year, each captive insurance company shall submit to the commissioner a report of its financial condition in a form and manner as required by the commissioner, verified by oath of two of its executive officers. As required by Section 33-28-107(2)(c), MCA, each captive insurance company shall report using generally accepted accounting principles, unless the commissioner requires the use of statutory accounting principles Captive Risk Retention Groups must file an annual statement on the annual statement blank adopted by the National Association of Insurance Commissioners (NAIC) for property-casualty insurance companies. This form must also be filed with the NAIC. Pure and Industrial Captive Insurance Companies may file the short form financial on or before March 1. The short form financial on the GAAP basis may be downloaded from the list of forms below. Any differences between the statement submitted on March 1 and the CPA audit of June 30 need to be reconciled and the reconciliation must be included in the notes to the financial statements within the CPA's audited financial report. . Location of Captive Records All books, records, and other information necessary for a statutory examination should be located in Montana. |
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List of Forms, Statutes & Rules
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