On May 4, 2017 Montana enacted a new law that will remove the requirement that reciprocal captive insurers have 25 or more persons domiciled in Montana. The law also permits captive insurers to go into dormancy. The certificate of dormancy is subject to expiration at the end of a five-year period and includes a $1,000 annual dormancy tax and a requirement to maintain paid-in capital and surplus of not less than $25,000. Previously, a captive that no longer desired to operate would terminate its license and pay no insurance premium tax after termination. The law also removes the requirements of examinations and investigations of companies existing under a certificate of dormancy. The law went into effect upon its approval on May 4, 2017. 2017 Montana S.B. 245.
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