Montana governor Steve Bullock has signed into law a new bill that allows inactive captive insurance companies to apply for dormant status.
The new bill, introduced to the legislature on 13 February, creates a dormant status for captive insurers, and outlines fees and requirements.
The bill, sponsored by senator Daniel Salomon, defines a dormant captive as a captive insurance company, other than a risk retention group, that has ceased transacting and has no remaining liabilities.
A dormant captive must possess and maintain unimpaired, paid-in capital and surplus of no less than $25,000 within 90 days of each fiscal year-end, and submit a report to the insurance commissioner of its financial condition.
A dormant captive will also have to pay a $1,000 annual dormancy tax due on or before 1 March of each year for any portion of the preceding year in which the captive held a certificate of dormancy.
