The procedures listed below should be followed to incorporate a captive insurer in Montana and to apply for a Certificate of Authority from the Montana Commissioner of Insurance:
- Prepare the documents needed for the application for Certificate of Authority. (See the captive application for a list of items.) (Application included)
- Submit the application to the commissioner for review. Include a $200 application fee and a $300 license fee.
- Prepare the documents needed to incorporate the insurer. The services of a local attorney may be desirable. The articles of incorporation must comply with Section 33-3-201, MCA. Section 33-3-202 outlines the procedures for filing the articles of incorporation with the Montana Commissioner of Insurance and the Montana Secretary of State and for obtaining the commissioner’s approval of the proposed articles of incorporation. If the captive insurer will be a mutual company, the bylaws must be filed and approved by the commissioner pursuant to Section 33-3-301. (Check list included)
- Provide information concerning the adequacy of the expertise, experience, and character of the person or persons who will manage the captive insurer. (Biographical Affidavit included) Affidavits required on Directors, Officers and Management Personnel.
- Have your CPA complete the Application Authorization form to perform audits as required for captives. (Application included)
- Have your actuary complete the Application form for authorization to render the opinion on reserves for captive accounts. (Application included)
- If Letter of Credit will be used for Capital & Surplus, see sample.
- The Montana insurance code authorizes the commissioner to obtain services to review the application for a captive insurer at the applicant’s expense. If the commissioner determines that such services are needed, you will be required to submit an additional copy of the application materials to the reviewer and you will be notified of the cost.
- The Department may perform an organizational examination in advance of (6.6.6802) or as soon as possible after you receive the Certificate of Authority and have capitalized the captive. The cost of this examination will be borne by the applicant.
- Montana captive insurers must file an annual statement, Section 33-28-107.
Applications/Forms
- Biographical Affidavit
- Irrevocable Letter of Credit Sample
- Captive Application for Certificate of Authority
- Application for Authorization to Act as CPA for a Montana Captive Insurance Company
- Application for Authorization to Certify Loss Reserves
- Short Form Financial Annual Statement (downloadable Excel file)
Montana's 57th Legislature passed legislation allowing captive insurance companies to do business. This law will be found in Montana Codes Annotated (MCA) Title 33, Chapter 28. Updated MCAs containing this new law are now available on the website at by clicking here.
