Terms Used In Montana Code 33-11-124

• Hazardous financial condition: means that, based on its present or reasonably anticipated financial condition, a risk retention group, although not yet financially impaired or insolvent, is unlikely to be able to:

  (a)meet obligations to policyholders with respect to known claims and reasonably anticipated claims; or

  (b)pay other obligations in the normal course of business. See Montana Code 33-11-102

• Insurance: means primary insurance, excess insurance, reinsurance, surplus line insurance, and any other arrangement for shifting and distributing risk that is determined to be insurance under the laws of this state. See Montana Code 33-11-102
• Risk retention group: means a corporation or other limited liability association formed under the laws of any state, Bermuda, or the Cayman Islands:

  (a)whose primary activity consists of assuming and spreading all or any portion of the liability exposure of its group members;

  (b)that is organized for the primary purpose of conducting the activity described under subsection (8)(a);

  (c)(i) that is chartered and licensed as a liability insurance company and authorized to engage in the business of insurance under the laws of any state; or

  (ii)that, before January 1, 1985, was chartered or licensed and authorized to engage in the business of insurance under the laws of Bermuda or the Cayman Islands and, before that date, had certified to the insurance regulatory official of at least one state that it satisfied the capitalization requirements of that state. See Montana Code 33-11-102

• State: means any state of the United States or the District of Columbia. See Montana Code 33-11-102
• United States: includes the District of Columbia and the territories. See Montana Code 1-1-201