United States:
Montana Enacts Captive Insurance Law Impacting Reciprocal And Dormant Insurers
10 July 2017
Carlton Fields
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On May 4, 2017 Montana enacted a new law that will remove the
requirement that reciprocal captive insurers have 25 or more
persons domiciled in Montana. The law also permits captive insurers
to go into dormancy. The certificate of dormancy is subject to
expiration at the end of a five-year period and includes a $1,000
annual dormancy tax and a requirement to maintain paid-in capital
and surplus of not less than $25,000. Previously, a captive that no
longer desired to operate would terminate its license and pay no
insurance premium tax after termination. The law also removes the
requirements of examinations and investigations of companies
existing under a certificate of dormancy. The law went into effect
upon its approval on May 4, 2017. 2017 Montana S.B. 245.
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