33-28-401. Dormant captive insurer. (1) As used in this section, unless the context requires otherwise, "dormant captive insurance company" means a captive insurance company, other than a captive risk retention group, that has:
(a) ceased transacting the business of insurance, including the issuance of insurance policies; and
(b) no remaining liabilities associated with insurance business transactions or insurance policies issued prior to the filing of its application for a certificate of dormancy under this section.
(2) A captive insurance company domiciled in Montana that meets the criteria of this section may apply to the commissioner for a certificate of dormancy. The certificate of dormancy is subject to expiration at the end of a consecutive 5-year period and may not be renewed.
(3) (a) A dormant captive insurance company that has been issued a certificate of dormancy shall:
(i) possess and thereafter maintain unimpaired, paid-in capital and surplus of not less than $25,000;
(ii) within 90 days of each fiscal year end, submit to the commissioner a report of its financial condition, verified by oath of two of its executive officers, in a form as may be prescribed by the commissioner; and
(iii) pay $1,000 annual dormancy tax due on or before March 1 of each year for any portion of the preceding year in which the captive insurance company held a certificate of dormancy. Each series of members as defined in 35-8-102 or protected cell as defined in 33-28-101 is considered separate pursuant to this section for purposes of paying the $1,000 annual dormancy tax under a certificate of dormancy. A dormant captive insurance company is not otherwise liable for any annual renewal as provided in 33-28-102.
(b) A dormant captive insurance company that has been issued a certificate of dormancy may not:
(i) be subject to or liable for the payment of any tax under 33-28-201;
(ii) be subject to examinations as provided in 33-28-108.
(4) A dormant captive insurance company shall apply to the commissioner for approval to surrender its certificate of dormancy and resume conducting the business of insurance prior to issuing any insurance policies.
(5) A certificate of dormancy must be revoked if a dormant captive insurance company no longer meets the criteria of this section.
History: En. Sec. 1, Ch. 304, L. 2017; amd. Sec. 10, Ch. 223, L. 2019.