Montana Licenses ItsFirst Captive
Sometimes states provide the impetus for captive insurers to locate within their borders, but in Montana it was an established captive that provided the push to make the state a captive venue, company and state officials said.
Victoria Orze, general counsel for the Missoula, Mont.-based Attorneys Liability Protection Society, parent company of ALPS Re, which was formerly located in Vermont, said captive legislation in Montana was a goal because the lawyers group wanted to be in its home state, but “we couldnt domicile in Montana.”
ALPS Re became the states first captive on Dec. 31, 2001 as a result of new legislation that was introduced last year.
John Huth, Montanas captive insurance coordinator, said Robert Minto, president of ALPS, “provided testimony and support for the bill and helped sell the idea as a viable tool for industry in Montana.”
Initiating captive legislation in Montana “fit a need for some of the companies here,” Ms. Orze said. “It is also an economic development measure for the state.” Vermont, she noted, “makes a big industry” out of captive insurers.
While pleased that the state is now open for business as a domicile, Mr. Huth added that “were not looking to steal from Vermont, though our first captive came from Vermont.”
Ms. Orze explained that the effort “was a partnership. We started the legislation by giving them some models. The state was interested in having us do that, and I dont think they had the resources to put something like that together.”
Mr. Huth commented that interest in the state is high. So far five or six other organizations have expressed interest in domiciling in Montana, he said.
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, January 28, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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