Welcome to the
Welcome to the
Montana licensed its first captive insurance company in January 2002. Since then the number of active captive insurance companies has grown to more than 300 captive insurance entities. These captives insure rural hospitals, nursing homes, fuel stations, commercial trucking firms, an investment firm, a medical professional firm, a construction company and attorneys.
The Montana Captive Insurance Association, Inc. (MCIA) is dedicated to promoting the development and expansion of captive insurance programs within the state of Montana. As part of this mission it will provide its membership with unbiased industry information, networking and educational opportunities. It also provides the state's captive industry an effective voice in the legislative/regulatory process.
May 25, 2021 - The 67th Session of the Montana Legislature has adjourned with another positive result for the state’s captive insurance industry due to the involvement of the Montana Captive Insurance Association, Inc. (MCIA).
Association lobbyists were actively engaged with two pieces of legislation and worked in close coordination with representatives of the Office of Commissioner of Insurance.
Senate Bill (SB) 28, introduced by Senator Dan Salomon (R), was drafted to improve Montana’s captive insurance company examination process and make it more consistent with other leading captive domiciles. MCIA testified in favor of the legislation and lobbied individual members for passage.
The bill subsequently passed the Legislature and was signed into law by the Governor on March 8, 2021.
Senator Salomon also introduced SB 76. This bill was drafted to address funding issues to support the state captive insurance regulatory team. Once again, MCIA worked side-by-side with the insurance commissioner to testify in support of this bill.
This was the second session in a row the Commissioner’s office had brought this bill. The bill proposed to make certain accounting changes that would result in increased funding to the Commissioner’s captive insurance program.
Specifically, the proposed changes would increase the percentage of the premium tax, all fees and assessments received by the Commissioner to operate the captive insurance program from 5 percent to 20 percent.
MCIA testified in support of SB 76 and stated the captive insurance industry has grown since its inception in 2001; but, the funding stream for the captives’ insurance program has not changed since the beginning of the program.
This advocacy produced another positive result as the legislation was passed and signed into law on May 14, 2021.
Learn about these legislative developments as part of MCIA’s upcoming Annual Conference, scheduled for July 20-22, in beautiful Whitefish, MT.
MCIA Supports Captive Industry Litigation Effort in Response to IRS Regulatory Overreach
July 23, 2020 - The Montana Captive Insurance Association, Inc. (MCIA) joined with nearly two dozen other captive insurance organizations this week to file an amicus brief before the U.S. Supreme Court in the case of CIC Services LLC v. IRS ('CIC'). The objective of this litigation effort is to encourage U.S. Supreme Court to overturn a decision by the 6th Circuit Court that challenged IRS authority under Notice 2016-66 ("the Notice").
At issue is that the captive industry believes the Notice unfairly imposes significant administrative burdens on owners, advisors and managers who participate in certain captive transactions, and stakeholders were offered no meaningful opportunity to provide comment or feedback prior to the Notice's immediate implementation in 2016, nor the ability to appeal the filing requirements until paying a penalty.
"As the trade association representing one of the leading captive insurance domiciles in the United States, we believed it was important to support this effort, both in name and through a financial contribution," said MCIA Chairman John Huth. "While our association remains focused on issues within the state of Montana, we concluded that this national issue is directly affecting several of our members."
The coalition amicus brief, prepared by Kevin Doherty and Tony Greer of Dickinson Wright PLLC, focuses on three key arguments at issue in the CIC case. First, that the Court should consider the heavy regulatory burden and harm being caused to taxpayers, namely the captive insurance industry. The Notice requires taxpayers to report duplicative information and imposes an undue financial burden to small- and medium- sized businesses, all for little to no benefit to the IRS.
Second, the Administrative Procedures Act ("APA") requires federal agencies to allow for a meaningful opportunity for public comment on proposed rules. The industry brief points out that the IRS did not comply with the APA as it simply issued the Notice without offering public comment and review.
Finally, the brief argues that the Anti-Injunction Act ("AIA") prohibition on preventing challenges to the IRS should not extend to reporting requirement, such as are imposed by the Notice.
A link to the full coalition brief can be found here.
Montana Captive Insurance Association, Inc. (MCIA)
1302 24th St West #303
Billings, MT 59102-3861