reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 26. Suretyship › Part 1. Surety Insurance › 33-26-107. Deposit of money in bank for safekeeping by executors and other fiduciaries on agreement with surety

33-26-107. Deposit of money in bank for safekeeping by executors and other fiduciaries on agreement with surety.
It is lawful for any executor, administrator, guardian, receiver, trustee, or other party of whom a bond, undertaking, or other obligation is required to agree with the entity's surety or sureties for the deposit of any or all money and assets for which the entity and the surety or sureties are or may be held responsible with a bank, savings bank, safe-deposit, or trust company, authorized by law to do business, or with another depository approved by the court or a judge, if the deposit is otherwise proper, for safekeeping, and in a manner that prevents the withdrawal of the money or assets or any part of the money or assets without the written consent of the surety or sureties or an order of court or a judge made on notice to the surety or sureties that the court or judge may direct. The agreement may not in any manner release from or change the liability of the principal or sureties as established by the terms of the bond.
History: En. Sec. 1, Ch. 146, L. 1943; R.C.M. 1947, 40-1703; amd. Sec. 1241, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 26. Suretyship › Part 1. Surety Insurance › 33-26-108. Rulemaking authority for surety insurers

33-26-108. Rulemaking authority for surety insurers.
The commissioner may adopt rules regarding surety insurers who sell, solicit, or negotiate commercial bail bonds and effect arrests or surrenders pursuant to Title 46, chapter 9. The rules must include but are not limited to rules regarding the receipt of collateral, the description of collateral received, the penalty for failure to return collateral, an annual list of forfeitures of bonds, and the form and manner for reporting surrenders and arrests effected under Title 46, chapter 9.
History: En. Sec. 4, Ch. 427, L. 2003; amd. Sec. 5, Ch. 592, L. 2023.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 27. Independent Liability Fund › Part 1. General Provisions › 33-27-101. Short title

33-27-101. Short title.
Sections 15-30-2118, 15-31-117, 15-31-118, and this chapter may be cited as the "Independent Liability Fund Act".
History: En. Sec. 1, Ch. 564, L. 1987; amd. Sec. 50, Ch. 503, L. 2021.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 27. Independent Liability Fund › Part 1. General Provisions › 33-27-102. Purpose

33-27-102. Purpose.
The purpose of 15-30-2118, 15-31-117, 15-31-118, and this chapter is to create a means by which small businesses operating in Montana may establish independent liability funds to set aside assets or make investments to meet any liability claims that might be made against the small businesses by third parties.
History: En. Sec. 2, Ch. 564, L. 1987; amd. Sec. 51, Ch. 503, L. 2021.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 27. Independent Liability Fund › Part 1. General Provisions › 33-27-103. Definitions

33-27-103. Definitions.
As used in 15-30-2118, 15-31-117, 15-31-118, and this chapter, the following definitions apply:
(1) "Fiscal year" means the 12-month period used by a particular small business in preparing and filing its Montana individual income tax, corporate income tax, or alternative corporate income tax return.
(2) "Independent liability fund" means a collection of money, assets, and investments that has been set aside by a small business to meet the needs of any liability claims, except workers' compensation claims, brought against it by third parties.
(3) "Liability claim" means any legal or extralegal action by a third party asserting a right to compensation for a wrong done to it by a small business with an independent liability fund.
(4) "Small business" means any commercial or nonprofit enterprise qualified to do business in the state and qualified as a small business under the criteria established by the federal small business administration on April 20, 1987.
(5) "Third party" means a person other than an employee or the management of a small business or of a subsidiary or closely related enterprise of a small business.
History: En. Sec. 3, Ch. 564, L. 1987; amd. Sec. 36, Ch. 268, L. 2013; amd. Sec. 52, Ch. 503, L. 2021.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 27. Independent Liability Fund › Part 1. General Provisions › 33-27-104. Rules

33-27-104. Rules.
(1) The commissioner has authority to implement this chapter and to make any rules and regulations required to carry out the purposes of this chapter.
(2) The commissioner shall by rule establish criteria for ascertaining the inviolability and health of each independent liability fund and shall initiate sanctions against funds that are not secure or viable.
History: En. Sec. 19, Ch. 564, L. 1987.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 27. Independent Liability Fund › Part 1. General Provisions › 33-27-111. Right to establish independent liability fund

33-27-111. Right to establish independent liability fund.
A small business operating in the state may establish an independent liability fund to provide for defense, settlement, or payment of any liability claims against it by a third party.
History: En. Sec. 4, Ch. 564, L. 1987.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 27. Independent Liability Fund › Part 1. General Provisions › 33-27-112. Establishment of independent liability fund

33-27-112. Establishment of independent liability fund.
A small business shall notify the commissioner, on a form supplied by the commissioner, of its intention to establish an independent liability fund. The small business shall fully and clearly designate the money, assets, or investments it is setting aside for its independent liability fund.
History: En. Sec. 5, Ch. 564, L. 1987.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 27. Independent Liability Fund › Part 1. General Provisions › 33-27-113. Additions to independent liability fund

33-27-113. Additions to independent liability fund.
Within the limits provided in 33-27-114, a small business may make such additions to its independent liability fund as it considers appropriate.
History: En. Sec. 6, Ch. 564, L. 1987.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 27. Independent Liability Fund › Part 1. General Provisions › 33-27-114. Limit on the amount of fund

33-27-114. Limit on the amount of fund.
The independent liability fund of any small business may not be greater than the larger of the following:
(1) the total of all legally required liability insurance; or
(2) five times the gross sales of the small business in its most recent fiscal year.
History: En. Sec. 7, Ch. 564, L. 1987.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 27. Independent Liability Fund › Part 1. General Provisions › 33-27-115. Composition of independent liability fund

33-27-115. Composition of independent liability fund.
The money, assets, and investments contributed to an independent liability fund must meet the criteria established for investments by an insurance company in chapter 12 and must be valued as those assets and investments would be valued.
History: En. Sec. 8, Ch. 564, L. 1987; amd. Sec. 48, Ch. 304, L. 1999.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 27. Independent Liability Fund › Part 1. General Provisions › 33-27-116. Inviolability of fund

33-27-116. Inviolability of fund.
Once money, assets, or investments have been contributed to an independent liability fund, they may not be used or removed from the fund except in the manner prescribed by 33-27-117 and 33-27-119.
History: En. Sec. 12, Ch. 564, L. 1987.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 27. Independent Liability Fund › Part 1. General Provisions › 33-27-117. Deduction of costs

33-27-117. Deduction of costs.
(1) The actual costs of administering an independent liability fund may be deducted from the fund or from income arising out of the money, assets, and investments in the fund. Such costs include the cost of defending against or negotiating a settlement of any liability claim, as well as the full amount of any claim paid.
(2) A small business may not deduct the cost of any in-house administration of its independent liability fund. The commissioner may review any third-party arrangement for administration of an independent liability fund to ascertain whether such costs are deductible under this section.
History: En. Sec. 13, Ch. 564, L. 1987.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 27. Independent Liability Fund › Part 1. General Provisions › 33-27-118. Taxation of independent liability fund contributions

33-27-118. Taxation of independent liability fund contributions.
The net value of independent liability fund contributions for any given fiscal year is taxed in accordance with 33-2-705(2)(a).
History: En. Sec. 16, Ch. 564, L. 1987; amd. Sec. 3, Ch. 377, L. 2015.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 27. Independent Liability Fund › Part 1. General Provisions › 33-27-119. Termination of independent liability fund

33-27-119. Termination of independent liability fund.
(1) A small business with an independent liability fund may terminate the independent liability fund by:
(a) providing a trust to administer any principal remaining in its fund and to pay any outstanding claims for whichever is longer:
(i) any legally required period of insurance coverage; or
(ii) 5 years; or
(b) substituting an equivalent liability insurance policy plus five times the amount of the deductible for any legally required period of insurance coverage or 5 years, whichever is longer.
(2) If an equivalent insurance policy as provided for in subsection (1)(b) cannot be procured for the full period required, the small business shall deposit the estimated premium for the required equivalent insurance policy in a suitable trust account. The trust account must be used to purchase liability insurance for the required period of insurance coverage.
(3) The principal of an independent liability fund must remain inviolate, except as it is needed to pay just claims, for the full applicable termination period as provided in subsection (1). However, income from the principal not needed for administrative costs may be paid during the termination period to the person or persons who are designated to ultimately receive the principal of the fund, and the income is taxable to that person or persons.
History: En. Sec. 17, Ch. 564, L. 1987; amd. Sec. 3, Ch. 111, L. 2001.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 28. Captive Insurance Companies › Part 1. General Provisions and Licensing › 33-28-103. Names of captive insurance companies

33-28-103. Names of captive insurance companies.
A captive insurance company may not adopt a name that is the same, deceptively similar, or likely to be confused with or mistaken for any other existing business name registered in the state of Montana.
History: En. Sec. 3, Ch. 298, L. 2001.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 28. Captive Insurance Companies › Part 1. General Provisions and Licensing › 33-28-104. Minimum capital surplus -- letter of credit

33-28-104. Minimum capital surplus -- letter of credit.
(1) A captive insurance company may not be issued a certificate of authority unless it possesses and maintains unimpaired paid-in capital and surplus of:
(a) in the case of a pure captive insurance company, not less than $250,000;
(b) in the case of an industrial insured captive insurance company, including a captive risk retention group, not less than $500,000;
(c) in the case of an association captive insurance company, not less than $500,000;
(d) in the case of a special purpose captive insurance company, an amount determined by the commissioner after giving due consideration to the company's business plan, feasibility study, and pro forma documents, including the nature of the risks to be insured;
(e) in the case of a protected cell captive insurance company, not less than $500,000. However, if the protected cell captive insurance company does not assume any risks, the risks insured by the protected cells are homogenous, and if there are not more than 10 cells, the commissioner may reduce the amount required in this subsection (1)(e) to an amount not less than $250,000.
(f) in the case of a branch captive insurance company, not less than the applicable amount of capital and surplus required in subsections (1)(a) through (1)(e), as determined based upon the organizational form of the foreign captive insurance company. The minimum capital and surplus must be jointly held by the commissioner and the branch captive insurance company in a bank of the federal reserve system approved by the commissioner.
(g) in the case of a captive reinsurance company, not less than 50% of the capital that would be required for that type of captive insurance company.
(2) The commissioner may require additional capital and surplus based upon the type, volume, and nature of insurance business transacted.
(3) Capital and surplus may be in the form of cash, cash equivalent, or an irrevocable letter of credit on a form prescribed by the commissioner and issued by a bank chartered by the state of Montana, a member bank of the federal reserve system, or a bank chartered by another state if that state-chartered bank is approved by the commissioner.
History: En. Sec. 4, Ch. 298, L. 2001; amd. Sec. 10, Ch. 383, L. 2003; amd. Sec. 5, Ch. 518, L. 2007; amd. Sec. 31, Ch. 271, L. 2009; amd. Sec. 3, Ch. 75, L. 2011; amd. Sec. 19, Ch. 169, L. 2013; amd. Sec. 3, Ch. 335, L. 2015; amd. Sec. 3, Ch. 223, L. 2019.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 28. Captive Insurance Companies › Part 1. General Provisions and Licensing › 33-28-106. Dividends

33-28-106. Dividends.
(1) A captive insurance company may not pay a dividend out of, or other distribution with respect to, capital or surplus without the prior approval of the commissioner.
(2) Approval of an ongoing plan for the payment of dividends or other distributions must be conditioned upon retention, at the time of each payment, of capital surplus in excess of the amounts specified by or determined in accordance with formulas approved by the commissioner.
History: En. Sec. 6, Ch. 298, L. 2001; amd. Sec. 7, Ch. 518, L. 2007.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 28. Captive Insurance Companies › Part 1. General Provisions and Licensing › 33-28-109. Suspension or revocation of certificate of authority

33-28-109. Suspension or revocation of certificate of authority.
(1) The certificate of authority of a captive insurance company doing insurance business in this state may be suspended by the commissioner for any of the following reasons:
(a) insolvency or impairment of capital or surplus;
(b) failure to meet and maintain the requirements of 33-28-104;
(c) refusal or failure to submit an annual report, as required by 33-28-107, or any other report or statement required by law or by lawful order of the commissioner;
(d) failure to comply with the provisions of its own charter, bylaws, or other organizational document;
(e) failure to submit to examination or to perform any legal obligation as required by 33-28-108;
(f) use of methods that, although not otherwise specifically prohibited by law, nevertheless render its operation detrimental or its condition unsound with respect to the public or to its policyholders;
(g) failure to pay the tax provided for in 33-28-201; or
(h) failure otherwise to comply with the laws of this state.
(2) If the commissioner finds, upon examination, hearing, or other evidence, that any captive insurance company has committed any of the acts specified in subsection (1), the commissioner may suspend or revoke the company's certificate of authority if the commissioner considers it in the best interest of the public or the policyholders of the captive insurance company.
(3) If the certificate of authority has not been terminated within the period of suspension, the company's certificate of authority may be reinstated if the commissioner finds that the causes of the suspension have been removed or that the insurer is otherwise in compliance with the requirements of this code.
History: En. Sec. 9, Ch. 298, L. 2001; amd. Sec. 6, Ch. 335, L. 2015; amd. Sec. 31, Ch. 151, L. 2017.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 28. Captive Insurance Companies › Part 1. General Provisions and Licensing › 33-28-110. Excess workers' compensation insurance -- reinsurance of self-insured plans

33-28-110. Excess workers' compensation insurance -- reinsurance of self-insured plans.
(1) A captive insurance company may provide excess workers' compensation insurance to its parent and affiliated companies, unless the laws of the state having jurisdiction over the transaction prohibit providing the insurance.
(2) A captive insurance company may reinsure workers' compensation of a qualified self-insured plan of its parent and affiliated companies.
History: En. Sec. 5, Ch. 383, L. 2003; Sec. 33-28-305, MCA 2005; redes. 33-28-110 by Sec. 21(1), Ch. 518, L. 2007.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 28. Captive Insurance Companies › Part 1. General Provisions and Licensing › 33-28-111. Captive mergers

33-28-111. Captive mergers.
(1) A merger between captive stock insurers must meet the requirements of 33-3-217 and 33-28-105, except that the commissioner may provide notice to the public of the proposed merger prior to approval or disapproval of the merger in place of holding a hearing, at the commissioner's discretion.
(2) A merger between captive mutual insurers must meet the requirements of 33-3-218 and 33-28-105, except that the commissioner may provide notice to the public of the proposed merger prior to approval or disapproval of the merger in place of holding a hearing, at the commissioner's discretion.
(3) (a) An association captive insurance company or industrial insured group formed as a stock or mutual insurer may be converted to or merged with a reciprocal insurer pursuant to this section.
(b) A plan for conversion or merger must:
(i) be fair and equitable to the shareholders in the case of a stock insurer or the policyholders in the case of a mutual insurer; and
(ii) provide for the purchase of the shares of any nonconsenting shareholder of a stock insurer or the policyholder interest of any nonconsenting policyholder of a mutual insurer.
(c) In order to convert to a reciprocal insurer, the conversion must be accomplished under a reasonable plan and procedure approved by the commissioner. The commissioner may not approve the plan unless it:
(i) provides for a hearing upon notice to the insurer, directors, officers, and stockholders or policyholders who have the right to appear at the hearing, unless the commissioner waives or modifies the requirements for the hearing;
(ii) provides for the conversion of the existing stockholder or policyholder interests into subscriber interests in the resulting reciprocal insurer proportionate to stockholder or policyholder interests;
(iii) (A) in the case of a stock insurer, is approved by a majority of the shareholders who are entitled to vote and who are represented at a regular or special meeting at which a quorum is present either in person or by proxy; or
(B) in the case of a mutual insurer, by a majority of the voting interests of the policyholders who are represented at a regular or special meeting at which a quorum is present either in person or by proxy; and
(iv) meets the requirements of 33-28-105.
(d) If the commissioner approves a plan of conversion, the certificate of authority for the converting insurer must be amended to state that it is a reciprocal insurer. The conversion is effective and the corporate existence of the converting entity ceases to exist on the date on which the amended certificate is issued to the attorney-in-fact of the reciprocal insurer. The resulting reciprocal insurer shall file the articles of the merger or conversion with the secretary of state.
History: En. Sec. 1, Ch. 151, L. 2017; amd. Sec. 6, Ch. 223, L. 2019.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 28. Captive Insurance Companies › Part 1. General Provisions and Licensing › 33-28-120. Captive insurance regulatory and supervision account

33-28-120. Captive insurance regulatory and supervision account.
(1) There is an account in the state special revenue fund called the captive insurance regulatory and supervision account, which may be referred to as the captive account.
(2) The purpose of the captive account is to provide the financial means for the commissioner to administer this chapter and for reimbursement of reasonable expenses incurred in promoting captive insurance in this state.
(3) (a) Twenty percent of the premium tax collected under 33-28-201 and all fees and assessments received by the commissioner pursuant to the administration of this chapter must be deposited in the captive account.
(b) All fines and administrative penalties collected pursuant to this chapter must be deposited in the general fund.
(4) All payments from the captive account for the maintenance of staff and associated expenses, including necessary contractual services, may only be disbursed from the state treasury upon warrants issued by the commissioner, after receipt by the commissioner of proper documentation regarding services rendered and expenses incurred.
(5) At the end of each fiscal year, the balance in the captive account must be transferred to the general fund.
History: En. Sec. 2, Ch. 518, L. 2007; amd. Sec. 15, Ch. 6, Sp. L. November 2017; amd. Sec. 1, Ch. 420, L. 2021.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 28. Captive Insurance Companies › Part 2. Operations › 33-28-202. Legal investments

33-28-202. Legal investments.
(1) (a) An industrial insured captive insurance company, an association captive insurance company, and a captive risk retention group shall comply with the investment requirements contained in Title 33, chapter 12, and the rules promulgated in accordance with these provisions.
(b) The commissioner may approve the use of alternative reliable methods of valuation and rating.
(c) When a captive insurance company's admitted assets total less than $5 million, the commissioner may approve an investment of up to 20% of admitted assets in rated credit instruments in any one investment that meets the requirements of 33-12-303(1)(c).
(2) A pure captive insurance company or protected cell captive insurance company is not subject to any restrictions on allowable investments, except that the commissioner may prohibit or limit any investment that threatens the solvency or liquidity of the company.
(3) Any captive insurance company may make loans to any of its affiliates. Loans may not be made without prior written approval of the commissioner and must be evidenced by a note in a form approved by the commissioner. Loans of minimum capital and surplus funds required by 33-28-104 are prohibited.
History: En. Sec. 11, Ch. 298, L. 2001; amd. Sec. 39, Ch. 469, L. 2005; amd. Sec. 11, Ch. 518, L. 2007; amd. Sec. 6, Ch. 28, L. 2009; amd. Sec. 5, Ch. 75, L. 2011; amd. Sec. 20, Ch. 169, L. 2013.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 28. Captive Insurance Companies › Part 2. Operations › 33-28-203. Reinsurance

33-28-203. Reinsurance.
(1) Subject to the prior approval of the commissioner, a captive insurance company may provide reinsurance on risks ceded by any other insurer.
(2) (a) Any captive insurance company may take credit for reserves on risks or portions of risks ceded to reinsurers complying with the provisions of 33-2-1216 and 33-2-1217.
(b) Prior approval of the commissioner is required for ceding or taking credit for reserves on risks or portions of risks ceded to reinsurers not complying with 33-2-1216 and 33-2-1217.
(3) (a) In addition to the credit allowed to reinsurers in 33-2-1216 and 33-2-1217, a captive insurance company may, if approved by the commissioner, take credit for reserves on risks or portions of risks ceded to a pool, exchange, or association acting as a reinsurer that has been authorized by the commissioner.
(b) The commissioner may require any documents, financial information, or other evidence that a pool, exchange, or association will be able to provide adequate security for its financial obligations.
(c) The commissioner may deny authorization or impose any limitations on the activities of a reinsurance pool, exchange, or association that, in the commissioner's judgment, are necessary and proper to provide adequate security for the ceding captive insurance company and for the protection and consequent benefit of the public at large.
History: En. Sec. 12, Ch. 298, L. 2001.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 28. Captive Insurance Companies › Part 2. Operations › 33-28-205. Exemption from compulsory organizations

33-28-205. Exemption from compulsory organizations.
A captive insurance company may not join or contribute financially to any plan, pool, association, or guaranty or insolvency fund in this state, and a captive insurance company, its insureds, its parent, any affiliated company, or any member of an association may not receive any benefit from the plan, pool, association, or guaranty or insolvency fund for claims arising out of the operations of the captive insurance company.
History: En. Sec. 14, Ch. 298, L. 2001; amd. Sec. 12, Ch. 518, L. 2007.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 28. Captive Insurance Companies › Part 2. Operations › 33-28-206. Rules

33-28-206. Rules.
The commissioner may adopt rules necessary to implement the provisions of this chapter. The rules may include but are not limited to rules relating to forms, payment of fees, authorization, capital and surplus, formation of companies, reports, examinations, investigations, redomestications, captive risk retention groups, risk-based capital and holding company systems, letters of credit, risks managed by pure captive insurance companies, standards to ensure that parent or affiliated companies are able to exercise control of the risk management function of any controlled unaffiliated entities to be insured by the pure captive insurance companies, the use of deductible reimbursement with workers' compensation, and suspension and revocation of licenses.
History: En. Sec. 15, Ch. 298, L. 2001; amd. Sec. 13, Ch. 518, L. 2007; amd. Sec. 8, Ch. 335, L. 2015.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 28. Captive Insurance Companies › Part 2. Operations › 33-28-207. Applicable laws

33-28-207. Applicable laws.
(1) The following apply to captive insurance companies:
(a) the definitions of commissioner and department provided in 33-1-202, property insurance provided in 33-1-210, casualty insurance provided in 33-1-206, life insurance provided in 33-1-208, health insurance coverage and group health plans provided in 33-22-140, and disability income insurance provided in 33-1-235;
(b) the limitation provided in 33-2-705 on the imposition of other taxes;
(c) the provisions relating to supervision, rehabilitation, and liquidation of insurance companies as provided for in Title 33, chapter 2, part 13;
(d) the provisions of 33-1-311, 33-1-604 through 33-1-606, 33-2-112, 33-3-431, 33-18-201, 33-18-203, and 33-18-205;
(e) 33-18-242 only applies to captive risk retention group insurers;
(f) the provisions relating to dissolution and liquidation in Title 33, chapter 3, part 6, except that a pure captive insurance company may proceed with voluntary dissolution and liquidation after prior notice to and approval of the commissioner without following the provisions of Title 33, chapter 3, part 6; and
(g) the authority of the commissioner under 33-2-701(6) to impose a fine for failure to timely file an annual statement, except that the annual statement requirements in 33-28-107 apply.
(2) This chapter may not be construed as exempting a captive insurance company, its parent, or affiliated companies from compliance with the laws governing workers' compensation insurance.
(3) A captive insurance company or branch captive insurance company that writes health insurance coverage or group health plans as defined in 33-22-140 shall comply with applicable state and federal laws.
(4) The following provisions apply to captive risk retention groups:
(a) those relating to actuarial opinions in Title 33, chapter 1, part 14;
(b) those relating to risk-based capital in Title 33, chapter 2, part 19; and
(c) those relating to insurance holding company systems in Title 33, chapter 2, part 11.
(5) Except as expressly provided in this chapter, the provisions of Title 33 do not apply to captive insurance companies.
History: En. Sec. 16, Ch. 298, L. 2001; amd. Secs. 15, 17, Ch. 383, L. 2003; amd. Sec. 3, Ch. 205, L. 2005; amd. Sec. 14, Ch. 518, L. 2007; amd. Sec. 7, Ch. 28, L. 2009; amd. Sec. 23, Ch. 227, L. 2011; amd. Sec. 9, Ch. 335, L. 2015; amd. Sec. 12, Ch. 60, L. 2019; amd. Sec. 8, Ch. 223, L. 2019; amd. Sec. 2, Ch. 356, L. 2023.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 28. Captive Insurance Companies › Part 3. Protected Cell Captive Insurance Companies › 33-28-302. Qualification of sponsors

33-28-302. Qualification of sponsors.
A sponsor of a protected cell captive insurance company must be an insurer authorized under the laws of any state, a reinsurer authorized under the laws of any state, a captive insurance company formed or authorized under this chapter, an insurance producer licensed under chapter 17 of this title and approved by the commissioner, or any other person approved by the commissioner.
History: En. Sec. 2, Ch. 383, L. 2003; amd. Sec. 16, Ch. 518, L. 2007; amd. Sec. 7, Ch. 75, L. 2011; amd. Sec. 11, Ch. 335, L. 2015.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 28. Captive Insurance Companies › Part 3. Protected Cell Captive Insurance Companies › 33-28-303. Delinquency of protected cell captive insurance company

33-28-303. Delinquency of protected cell captive insurance company.
If delinquency proceedings have been taken against a protected cell captive insurance company:
(1) the assets of a protected cell may not be used to pay any expenses other than those attributable to the protected cell; and
(2) the capital and surplus of the protected cell captive insurance company must be available at all times to pay expenses of or claims against the protected cell captive insurance company.
History: En. Sec. 3, Ch. 383, L. 2003; amd. Sec. 17, Ch. 518, L. 2007.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 28. Captive Insurance Companies › Part 3. Protected Cell Captive Insurance Companies › 33-28-304. Participants in protected cell captive insurance companies

33-28-304. Participants in protected cell captive insurance companies.
(1) An individual or business entity may be a participant in a protected cell captive insurance company.
(2) A sponsor may be a participant in a protected cell captive insurance company.
(3) A participant is not required to be a shareholder of a protected cell captive insurance company or its affiliate.
History: En. Sec. 4, Ch. 383, L. 2003; amd. Sec. 18, Ch. 518, L. 2007; amd. Sec. 8, Ch. 75, L. 2011.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 28. Captive Insurance Companies › Part 3. Protected Cell Captive Insurance Companies › 33-28-306. Repealed

33-28-306. Repealed.
Sec. 11, Ch. 223, L. 2019.
History: En. Sec. 6, Ch. 383, L. 2003; amd. Sec. 19, Ch. 518, L. 2007; amd. Sec. 32, Ch. 151, L. 2017.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 28. Captive Insurance Companies › Part 3. Protected Cell Captive Insurance Companies › 33-28-310. Investments by protected cell captive insurance companies

33-28-310. Investments by protected cell captive insurance companies.
The assets of two or more protected cells may be combined for the purposes of investment by a protected cell captive insurance company, and the combination of the protected cells may not be construed as defeating the segregation of the assets for accounting or other purposes.
History: En. Sec. 3, Ch. 518, L. 2007.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 28. Captive Insurance Companies › Part 4. Dormant Captive Insurers › 33-28-401. Dormant captive insurer

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.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 30. Health Service Corporations › Part 1. General Provisions › 33-30-101. Definitions

33-30-101. Definitions.
As used in this chapter, the following definitions apply:
(1) (a) "Health service corporation" means a nonprofit corporation organized or operating for the purposes of establishing and operating a nonprofit plan or plans under which prepaid hospital care, medical-surgical care, and other health care and services, or reimbursement for the preceding care and services, may be furnished to a member or beneficiary.
(b) The term does not include a direct patient care agreement established pursuant to 50-4-107.
(2) "Health services" means the health care and services provided by hospitals or other health care institutions, organizations, associations, or groups and by doctors of medicine, osteopathy, dentistry, chiropractic, optometry, and podiatry; nursing services; licensed acupuncturist services; licensed social worker, licensed professional counselor, or psychologist services; medical appliances, equipment, and supplies; and drugs, medicines, ambulance services, and other therapeutic services and supplies.
(3) "Membership contract" means any agreement, contract, or certificate by which a health service corporation describes the health services or benefits provided to its members or beneficiaries.
History: En. 40-5901 by Sec. 1, Ch. 319, L. 1975; R.C.M. 1947, 40-5901(1) thru (3); amd. Sec. 14, Ch. 544, L. 1983; amd. Sec. 3, Ch. 606, L. 1987; amd. Sec. 2, Ch. 362, L. 1991; amd. Sec. 10, Ch. 262, L. 2021.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 30. Health Service Corporations › Part 1. General Provisions › 33-30-102. Application of chapter -- construction of other related laws

33-30-102. Application of chapter -- construction of other related laws.
(1) All health service corporations are subject to the provisions of this chapter. In addition to the provisions contained in this chapter, other chapters and provisions of this title apply to health service corporations as follows: [33-2-714;] 33-2-1212; 33-3-307; 33-3-308; 33-3-401; 33-3-431; 33-3-701 through 33-3-704; 33-17-101; Title 33, chapter 2, parts 13, 19, 23, and 24; Title 33, chapter 3, part 6; Title 33, chapter 17, parts 2 and 10 through 12; and Title 33, chapters 1, 10, 12, 15, 18, 19, 22, and 32, except 33-22-111.
(2) A law of this state other than the provisions of this chapter applicable to health service corporations must be construed in accordance with the fundamental nature of a health service corporation, and in the event of a conflict, the provisions of this chapter prevail. (Bracketed reference in subsection (1) to 33-2-714 terminates June 30, 2025, on occurrence of contingency--sec. 48, Ch. 415, L. 2019.)
History: En. 40-5902 by Sec. 2, Ch. 319, L. 1975; R.C.M. 1947, 40-5902; amd. Sec. 3, Ch. 558, L. 1987; amd. Sec. 67, Ch. 379, L. 1995; amd. Sec. 38, Ch. 531, L. 1997; amd. Sec. 63, Ch. 227, L. 2001; amd. Sec. 44, Ch. 380, L. 2003; amd. Sec. 32, Ch. 271, L. 2009; amd. Sec. 32, Ch. 428, L. 2015; amd. Sec. 33, Ch. 151, L. 2017; amd. Sec. 8, Ch. 231, L. 2017; amd. Sec. 8, Ch. 25, L. 2019; amd. Sec. 22, Ch. 415, L. 2019; amd. Sec. 17, Ch. 501, L. 2021.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 30. Health Service Corporations › Part 1. General Provisions › 33-30-103. Purposes of health service corporation

33-30-103. Purposes of health service corporation.
A health service corporation may be organized for the purposes of:
(1) (a) establishing and operating a voluntary, nonprofit plan or plans under which health services, or reimbursement therefor, are furnished to persons who become members or beneficiaries; or
(b) acting as agent or intermediary for other health service corporations, for governmental body or agency, or for other corporations, associations, partnerships, or individuals in the field of health care and services; and
(2) research, education, or related activity to further objects within the purview of this chapter.
History: En. 40-5903 by Sec. 3, Ch. 319, L. 1975; R.C.M. 1947, 40-5903.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 30. Health Service Corporations › Part 1. General Provisions › 33-30-104. No profit organization may be a health service corporation

33-30-104. No profit organization may be a health service corporation.
No group, association, or organization created for or engaged in business or activity for profit, provision for the incorporation of which is made by any of the corporation laws of this state, may be organized or operated, directly or indirectly, as a health service corporation under this chapter.
History: En. 40-5904 by Sec. 4, Ch. 319, L. 1975; R.C.M. 1947, 40-5904.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 30. Health Service Corporations › Part 1. General Provisions › 33-30-105. Examination of health service corporation

33-30-105. Examination of health service corporation.
(1) If the commissioner believes a health service corporation is unable or potentially unable to fulfill its contractual obligations to its members, the commissioner may conduct an examination of that corporation.
(2) In addition to the examination authorized in subsection (1), at least once every 4 years, the commissioner shall conduct an examination of each health service corporation to determine if the corporation is fulfilling its contractual obligations by prompt satisfaction of claims at the highest monetary level consistent with reasonable dues or fees and that the corporation's management exercises appropriate fiscal controls, operations, and personnel policies to ensure that efficient and economic administration restrains overhead costs for the benefit of its members.
(3) Each health service corporation examined and its officers, employees, and insurance producers shall produce and make available to the commissioner or the commissioner's examiners the accounts, records, documents, files, information, assets, and matters in its possession or control relating to the subject of the examination.
(4) The commissioner or the commissioner's examiner shall make a verified report of the examination.
(5) The report must comprise only facts appearing from the books, papers, records, or documents of the corporation examined or ascertained from the testimony, under oath, of individuals concerning its affairs and conclusions and recommendations as warranted by those facts.
(6) The commissioner shall furnish a copy of the proposed report to the corporation examined not less than 20 days prior to its filing in the commissioner's office. If the corporation requests a hearing, in writing, within the 20-day period, the commissioner shall grant a hearing with respect to the report and may not file the report until after the hearing and after modifications, if any, that the commissioner considers proper.
(7) The health service corporation shall pay for each examination conducted pursuant to subsections (1) and (2) in accordance with 33-1-413.
History: En. 40-5912 by Sec. 12, Ch. 319, L. 1975; R.C.M. 1947, 40-5912; amd. Sec. 3, Ch. 452, L. 1981; amd. Sec. 4, Ch. 558, L. 1987; amd. Sec. 1, Ch. 713, L. 1989; amd. Sec. 1242, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 30. Health Service Corporations › Part 1. General Provisions › 33-30-106. Montana Administrative Procedure Act applicable

33-30-106. Montana Administrative Procedure Act applicable.
All final administrative actions or decisions of the commissioner under this chapter are subject to judicial review under and in accordance with the Montana Administrative Procedure Act.
History: En. 40-5916 by Sec. 16, Ch. 319, L. 1975; R.C.M. 1947, 40-5916.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 30. Health Service Corporations › Part 1. General Provisions › 33-30-107. Annual statement

33-30-107. Annual statement.
(1) On or before March 1 of each year, each health service corporation shall file an annual statement for the preceding year on the national association of insurance commissioners' health blank form with the commissioner of insurance. This annual statement must be completed in accordance with the annual statement instructions and the Accounting Practices and Procedures Manual of the national association of insurance commissioners. The statement must be accompanied by an actuarial opinion attesting to the insurer's reserves.
(2) The health service corporation shall file a statement containing any other information concerning its financial affairs that may be reasonably requested by the commissioner.
(3) (a) Each health service corporation shall file electronic versions of its annual and quarterly financial statements with the national association of insurance commissioners. The date for submission of the annual statement electronic filing is March 1. The dates for submission of the quarterly statement electronic filing are as follows:
(i) the first quarter filing is due May 15;
(ii) the second quarter filing is due August 15; and
(iii) the third quarter filing is due November 15.
(b) The commissioner may exempt health service corporations operating only in Montana from these filing requirements.
(c) The health service corporation shall pay all fees and costs associated with preparing the annual statement and other filings and submitting them to the national association of insurance commissioners.
(4) The commissioner may, after notice and hearing, suspend or revoke a health service corporation's certificate of authority or impose a fine not to exceed $100 a day and not to exceed $1,000 upon a health service corporation that fails to file an annual statement as required by this part.
History: En. Sec. 1, Ch. 657, L. 1979; amd. Sec. 68, Ch. 379, L. 1995; amd. Sec. 39, Ch. 531, L. 1997; amd. Sec. 54, Ch. 472, L. 1999; amd. Sec. 64, Ch. 227, L. 2001; amd. Sec. 45, Ch. 380, L. 2003; amd. Sec. 28, Ch. 63, L. 2015.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 30. Health Service Corporations › Part 1. General Provisions › 33-30-108. Certificate required

33-30-108. Certificate required.
(1) A person may not act as a health service corporation and a health service corporation may not conduct business in this state except as authorized by a certificate of authority issued by the commissioner.
(2) The commissioner may issue a certificate of authority after the person has complied with the applicable provisions of this title and has submitted an application on a form prescribed by the commissioner.
(3) A health service corporation is entitled to a continuation of its certificate of authority upon payment of the annual continuation fee specified in 33-30-204 on or before March 1 of each year and upon continued compliance with the provisions of this title.
(4) The commissioner may revoke or suspend any certificate of authority issued under this section for violations of this title.
History: En. Sec. 10, Ch. 558, L. 1987; amd. Sec. 69, Ch. 379, L. 1995; amd. Sec. 65, Ch. 227, L. 2001; amd. Sec. 29, Ch. 63, L. 2015.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 30. Health Service Corporations › Part 1. General Provisions › 33-30-109. Health service corporation amended articles

33-30-109. Health service corporation amended articles.
A health service corporation shall submit a copy of any articles of amendment to the commissioner within 5 business days after the articles have been filed with the office of the secretary of state.
History: En. Sec. 3, Ch. 227, L. 2001.
2023 Montana Code Annotated › Title 33. Insurance and Insurance Companies › Chapter 30. Health Service Corporations › Part 1. General Provisions › 33-30-111. Notice of violation -- conference

33-30-111. Notice of violation -- conference.
If the commissioner shall for any reason have cause to believe that violation of this chapter has occurred or is threatened, the commissioner may give written notice to the health service corporation and to the representatives or other persons who appear to be involved in the suspected violation to arrange a conference with the alleged violators or their authorized representative for the purpose of attempting to ascertain the facts relating to the suspected violation, and in the event it appears that a violation has occurred or is threatened, to arrive at an adequate and effective means of correcting or preventing the violation.
History: En. 40-5920 by Sec. 20, Ch. 319, L. 1975; R.C.M. 1947, 40-5920; amd. Sec. 85, Ch. 370, L. 1987; amd. Sec. 8, Ch. 606, L. 1987.