Montana Captive Insurance Information
Montana is a great place to do business. And the captive insurance industry has flourished inside the state.Montana based captives enjoy the benefits of autonomy, tax deductions, and regulatory efficiency. A cooperative and helpful state Insurance Department and knowledgable elected officials make licensing and operating captive insurance companies within the state an enjoyable business venture. To read, in full, Montana's adopted captive law, click here.
Benefits of Doing Business in Montana
Who Regulates Captives in Montana?
The office of Montana State Auditor Matt Rosendale handles all Montana Captive related inquiries. Rosendale is also the State Insurance Commissioner and has primary regulatory oversight of captives within the domicile. The public contact at Rosendale's office is Steve Matthews, who can be reached at 406-444-4372 or via email at firstname.lastname@example.org.
State Captive Requirements
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.
Additional Information and Forms