Montana's First Captive Made The Venue

By Caroline McDonald

NU Online News Service, Jan. 18, 10:13 a.m. EST?Sometimes states provide the impetus for captive insurers to locate within their borders, but in Montana it was an insurer that provided the push to make the state a captive venue, company and state officials said.

Victoria Orze, general counsel for Missoula, Mont.-based Attorneys Liability Protection Society, parent company of ALPS Re, which was formerly located in Vermont, said captive legislation in Montana was a goal because the lawyers group wanted to be in its home state, but "we couldn't domicile in Montana."

ALPS Re became the state's first captive on Dec. 31, 2001 as a result of new legislation that was introduced last year.

John Huth, Montana's captive insurance coordinator, said that Robert Minto, president of Attorneys Liability Protection Society, "Provided testimony and support of the bill and helped sell the idea as a viable tool for industry in Montana."

Mr. Minto, he said, worked with state auditor John Morrison to get the necessary legislation passed.

Ms. Orze said Mr. Minto worked closely with the state and was "instrumental in getting the legislation started here."

Initiating captive legislation in Montana "fit a need for some of the companies here," she said. "It is also an economic development measure for the state." Vermont, she continued, "makes a big industry" out of captive insurers.

While pleased that the state is now open for business as a domicile, Mr. Huth added that "We're not looking to steal from Vermont, though our first captive came from Vermont."

Ms. Orze explained that the effort, "was a partnership. We started the legislation by giving them some models. The state was interested in having us do that, and I don't think they had the resources to put something like that together."

Mr. Huth commented that interest in the state is high. So far five or six other organizations have expressed interest in domiciling in Montana, he said.

Special Reports /

Montana's First Captive Made The Venue

Related Stories

Recommended For You