February 9, 2001
Contact: Lucas Hamilton
Morrison proposes economic development measure Bill would allow captive insurance companies to locate in Montana
In an attempt to promote economic development in Montana, State Auditor John Morrison has proposed a bill to allow the formation and operation of captive insurance companies in the state. The Senate Business and Labor Committee Monday will consider Senate Bill 373, sponsored by Sen. Mike Halligan of Missoula.
A captive insurance company is a subsidiary company established to insure the risks of its parent company and its affiliates.
"Captive insurance is an established industry that has been successful in other states," Morrison said. "The industry provides clean, professional, high-paying jobs."
Vermont has 460 licensed captive insurance companies, which pay $40 million a year in premium taxes.
The industry also has positive secondary impacts on the economy. In Hawaii, for example, 74 captive insurance companies contributed $20 million (excluding taxes) to the state's economy in 1998.
"Montana has the opportunity to become a player in the captive arena, while attracting new business to the state and expanding its tax base," Morrison said.
The hearing on Senate Bill 373 is 8 a.m. Monday in Room 422 of the State Capitol.
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