Helena
14 February 2017
Reporter: Becky Butcher

Montana introduces dormant status for captives


Montana’s lawmakers have introduced a new captive bill that will allow inactive captive insurance companies to apply for dormant status.

The new bill, introduced to the legislature on 13 February, will provide dormant captive insurance fees and requirements if it comes into effect.

The bill, sponsored by senator Daniel Salomon, defines a dormant captive as a captive insurance company, other than a risk retention group, that has ceased transacting the business of insurance, including the issuance of insurance policies. and has no remaining liabilities associated with insurance business transactions or insurance policies issued prior to the filing of its application for a certificate of dormancy.

A dormant captive will possess and maintain unimpaired, paid-in capital and surplus of no less than $25,000 within 90 days of each fiscal year end, and submit a report to the insurance commissioner of its financial condition.

The dormant captive will also have to pay $1,000 annual dormancy tax due on or before 1 March of each year for any portion of the preceding year in which the captive held a certificate of dormancy.

Dormant captives will also be exempt from the insurance commissioner’s five-year audits.

More news
The latest news from Captive Insurance Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Cayman captive industry generated $100m in 2016
14 December 2017 | Grand Cayman | Reporter: Ned Holmes
The Cayman Islands captive insurance industry generated $100 million for the island’s economy in 2016, according to a recent economic impact survey.
BDA board gains new chair
14 December 2017 | Hamilton | Reporter: Ned Holmes
Paul Scope has been elected as the new chair of the Bermuda Business Development Agency (BDA) and Shelby Weldon has been appointed to the board of directors.
Ameriprise captive rated ‘excellent’, says A.M. Best
14 December 2017 | New Jersey | Reporter: Ned Holmes
Ameriprise Captive Insurance Company (ACIC) has received a financial strength rating of “A (Excellent)” and a long-term issuer credit rating of “a+” from A.M. Best.
PRIIA to help grow Puerto Rico as a captive domicile
13 December 2017 | San Juan | Reporter: Ned Holmes
The Puerto Rico International Insurance Association (PRIIA) will play an expanded role in helping to grow the country into a leading captive insurance domicile, according to PRIIA president Hugo Cordova.
Brit launches new Bermuda-based SPI
13 December 2017 | Bermuda | Reporter: Ned Holmes
Insurance and reinsurance group Brit has launched a new Bermuda-domiciled collateralised reinsurance platform, Sussex Capital.
Two funds complete trade on ILSBlockchain
12 December 2017 | St Peter Port | Reporter: Ned Holmes
Two funds have completed what is believed to be the first secondary market securities trade on notes digitised on the ILSBlockchain, a private blockchain set up by Guernsey incorporated cell company Solidum Re.
NiSource captive rated ‘excellent’ by A.M. Best
11 December 2017 | Oldwick | Reporter: Ned Holmes
A.M. Best has given the financial strength rating of “A- (Excellent)” and the long-term issuer credit rating of “a-” to NiSource Insurance Corporation (NICI).