NU Online News Service, Feb. 17, 1:22 p.m.EST

Legislation to update Montana's captive insurance law passedunanimously in the House Business and Labor Committee.

The MontanaCaptive Insurance Association said it organized a team ofsupporters to testify in favor of the legislation, includingassociation board Chair Brenda Olson and Director John Huth.

Steve Matthews, captive coordinator, Office of the Commissionerof Securities & Insurance (CSI), told NU Online NewsService that the regulators supported the MCIA-backedbill.

“I think it's good that our association brought that forward andthat it was well received and the department supported it,” Mr.Matthews said.

The bill, HB 419, is now expected to be voted on by the fullHouse on Saturday, and will then be considered by the Senate, theMCIA said.

Mr. Matthews explained that the bill adds incorporated cellcaptives; reduces capitalization required for association captivesfrom $750,000 to $500,000; and includes a special purpose captive,allowing for consideration of a captive where criteria isn'testablished. “This gives a little more flexibility,” he said.

The legislation also would change the due date of the annualreport for pure captives from March 1 to April 1, he said. RRGs,however, are still required to report on March 1.

MCIA said it will provide a full report on legislativedevelopments and other topics at its upcoming Spring Summit event,scheduled for March 30 in Helena, Mont.