Saturday, August 24, 2019


A captive insurance company may not be issued a license unless it possesses and maintains unimpaired paid-in capital and surplus of:

a. pure captive insurance company: $250,000.

b. industrial insured captive insurance company: $500,000.

c. association captive insurance company: $500,000.

d. special purpose captive: Amount determined by the Commissioner based on business plan.

e. protected cell captive: $500,000 (or $250,000 if less than 11 cells & homogenous risk).

f. special purpose series LLC captive: $50,000 in the core and not less than a 4-to-1 premiums to surplus ratio in each series business unit.

g. reinsurance captive: Half the capital requirement for same type of direct-writing captive.

The Commissioner may require additional capital and surplus based on the type, volume, and nature of insurance business transacted.

Capital and surplus may be in the form of cash or an irrevocable letter of credit issued by a bank chartered by the state of Montana or a member bank of the federal reserve system and approved by the Commissioner.