NU Online News Service, Feb. 17, 1:22 p.m. EST
Legislation to update Montana’s captive insurance law passed unanimously in the House Business and Labor Committee.
The Montana Captive Insurance Association said it organized a team of supporters to testify in favor of the legislation, including association board Chair Brenda Olson and Director John Huth.
Steve Matthews, captive coordinator, Office of the Commissioner of Securities & Insurance (CSI), told NU Online News Service that the regulators supported the MCIA-backed bill.
“I think it’s good that our association brought that forward and that 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 full House on Saturday, and will then be considered by the Senate, the MCIA said.
Mr. Matthews explained that the bill adds incorporated cell captives; reduces capitalization required for association captives from $750,000 to $500,000; and includes a special purpose captive, allowing for consideration of a captive where criteria isn’t established. “This gives a little more flexibility,” he said.
The legislation also would change the due date of the annual report 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 legislative developments and other topics at its upcoming Spring Summit event, scheduled for March 30 in Helena, Mont.