Montana Revises Captive Statutes

Montana Governor Steve Bullock has signed two captive-related legislative bills, one of which will now allow public-sector entities to establish captive insurance companies in the state.

The Montana Captive Insurance Association (MCIA) worked with Office of the Commissioner of Securities and Insurance (CSI) to draft and lobby for the passage of the legislation that authorizes public-sector entities to form captives. In addition, MCIA was successful in securing the other captive-related legislation that clarified existing statutes allowing captive insurance companies to be set up as limited liability companies.

H.B. 536 was initiated following the rejection, based on conflicting state statutes, of a proposal by a public-entity self-insurance pool in Montana to form a captive for providing workers compensation insurance.

"We are once again pleased to report to our membership and the larger captive insurance industry that MCIA has been successful in making meaningful improvements to what is already one of the country's premier captive domiciles," said John Jones, Montana Captive Insurance Association president, in a press release. "We certainly could not have done this without the support of our members and from our regulator partners at CSI."

View H.B. 536 and H.B. 537 on the Montana Legislature website.