MCIA Urges Treasury and IRS to Consider Regulatory Burden of Captive Regulation
Association Supports National Advocacy Campaign to Protect Small Captive Insurance Companies
July 21, 2017 - The Montana Captive Insurance Association (MCIA) this week issued formal comments to the U.S. Department of Treasury and the Internal Revenue Service (IRS) regarding Notice 2016-66 (‘the Notice’) as part of an ongoing review by the Administration of regulatory burdens on U.S. taxpayers. Specifically, MCIA asked the Treasury and IRS to review and rescind the Notice due to the burdens it has placed on the Montana captive industry. The formal comments also support the recent request made by the Self-Insurance Institute of America (SIIA) to Treasury on the Notice.
The Notice is causing negative and unintended consequences for Montana, a domicile where captive insurance is growing under an appropriate and structured regulatory environment. MCIA remains committed to working with our state and federal policymakers in seeking appropriate regulation, improving captive practices, and continuing the growth of the industry.
As expressed in the comment letter, the State of Montana has become a leading U.S. captive insurance domicile, currently domiciling more than 300 captive insurance vehicles and licensing 35 new captives last year alone. This has led to the development and promotion of a growing and vibrant captive domicile industry that, in partnership with the Montana Insurance Department, is helping small and medium sized companies mitigate their business risks appropriately.
Please click here to access MCIA’s comment letter.
This action by MCIA is the latest example of how the association continues to take a proactive role in advocating for public policies at both the state and federal level that will facilitate the continued growth of the Montana captive insurance domicile.
The association held a successful annual conference last week in Whitefish, MT. Mark your calendars now for next year’s conference, which is scheduled for July 24-26, 2018.