Terms Used In Montana Code > Title 33 > Chapter 28 > Part 1 - General Provisions and Licensing

• Affiliated company: means any company in the same corporate system as a parent, an industrial insured, or a member by virtue of common ownership, control, operation, or management. See Montana Code 33-28-101
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• Association: means any legal association of sole proprietorships or business entities that has been in continuous existence for at least 1 year unless the 1-year requirement is waived by the commissioner and the members of which collectively, or the association itself:

  (a)owns, controls, or holds with power to vote all of the outstanding voting securities of an association captive insurance company incorporated as a stock insurer;

  (b)has complete voting control over an association captive insurance company incorporated as a mutual insurer;

  (c)constitutes all of the subscribers of an association captive insurance company formed as a reciprocal insurer; or

  (d)owns, controls, or holds with power to vote all of the outstanding ownership interests of an association captive insurance company organized as a limited liability company. See Montana Code 33-28-101

• Association captive insurance company: means any company that insures risks of the members and the affiliated companies of members. See Montana Code 33-28-101
• Attorney-in-fact: A person who, acting as an agent, is given written authorization by another person to transact business for him (her) out of court.
• Branch business: means any insurance business transacted by a branch captive insurance company in this state. See Montana Code 33-28-101
• Branch captive insurance company: means any foreign captive insurance company authorized by the commissioner to transact the business of insurance in this state through a business unit with a principal place of business in this state. See Montana Code 33-28-101
• Branch operations: means any business operations of a branch captive insurance company in this state. See Montana Code 33-28-101
• Business entity: means a corporation, limited liability company, or other legal entity formed by an organizational document. See Montana Code 33-28-101
• Captive insurance company: means any pure captive insurance company, association captive insurance company, protected cell captive insurance company, special purpose captive insurance company, or industrial insured captive insurance company formed or authorized under the provisions of this chapter. See Montana Code 33-28-101
• Captive reinsurance company: means a captive insurance company authorized in this state that reinsures the risk ceded by any other insurer. See Montana Code 33-28-101
• Captive risk retention group: means a captive insurance risk retention group formed under the laws of this chapter and pursuant to Title 33, chapter 11. See Montana Code 33-28-101
• Cash equivalent: means any short-term, highly liquid investment that is:

  (a)readily convertible to known amounts of cash; and

  (b)so near to its maturity that it presents insignificant risk of changes in value because of changes in interest rates. See Montana Code 33-28-101

• Contract: A legal written agreement that becomes binding when signed.
• Controlled unaffiliated business entity: means a business entity or sole proprietorship:

  (i)that is not in a parent's corporate system consisting of the parent and affiliated companies;

  (ii)that has an existing, controlling contractual relationship with the parent or an affiliated company; and

  (iii)whose risks are managed by a pure captive insurance company. See Montana Code 33-28-101

• Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
• Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. ^{Source: U.S. Courts}
• Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
• Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. ^{Source: OCC}
• Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
• Foreign captive insurance company: means any captive insurance company formed under the laws of any jurisdiction other than this state. See Montana Code 33-28-101
• Industrial insured: means an insured:

  (a)who procures the insurance of any risk or risks by use of the services of a full-time employee acting as an insurance manager or buyer;

  (b)whose aggregate annual premiums for insurance on all risks total at least $25,000; and

  (c)who has at least 25 full-time employees. See Montana Code 33-28-101

• Industrial insured captive insurance company: means any company that insures risks of the industrial insureds that comprise the industrial insured group and their affiliated companies. See Montana Code 33-28-101
• Industrial insured group: means any group that meets either of the following:

  (a)the group collectively:

  (i)owns, controls, or holds with power to vote all of the outstanding voting securities of an industrial insured captive insurance company incorporated as a stock insurer; or

  (ii)has complete voting control over an industrial insured captive insurance company incorporated as a mutual insurer; or

  (b)the group is a captive risk retention group. See Montana Code 33-28-101

• Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
• Member: means a sole proprietorship or business entity that belongs to an association. See Montana Code 33-28-101
• Mutual insurer: means a business entity without capital stock and with a governing body elected by the policyholders. See Montana Code 33-28-101
• Oath: includes an affirmation or declaration. See Montana Code 1-1-201
• Oath: A promise to tell the truth.
• Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
• Organizational document: means articles of incorporation, articles of organization, a subscribers' agreement, a charter, or any other document that establishes a business entity. See Montana Code 33-28-101
• Parent: means a sole proprietorship, business entity, or individual that directly or indirectly owns, controls, or holds with power to vote more than 50% of the outstanding voting securities of a captive insurance company. See Montana Code 33-28-101
• Participant: means a sole proprietorship or business entity and any affiliates that are insured by a protected cell captive insurance company in which the losses of the participant are limited through a participant contract to the participant's share of the assets of one or more protected cells identified in the participant contract. See Montana Code 33-28-101
• Participant contract: means a contract by which a protected cell captive insurance company insures the risks of a participant and limits the losses of each participant in the contract. See Montana Code 33-28-101
• Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
• Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. ^{Source: OCC}
• Property: means real and personal property. See Montana Code 1-1-205
• Protected cell: means a separate account established by a protected cell captive insurance company formed or authorized under the provisions of this chapter, in which an identified pool of assets and liabilities are segregated and insulated, as provided in this chapter, from the remainder of the protected cell captive insurance company's assets and liabilities in accordance with the terms of one or more participant contracts to fund the liability of the protected cell captive insurance company with respect to the participants as set forth in the participant contracts. See Montana Code 33-28-101
• Protected cell captive insurance company: means any captive insurance company:

  (a)in which the minimum capital and surplus required by applicable law are provided by one or more sponsors;

  (b)that is formed or authorized under the provisions of this chapter;

  (c)that insures the risks of separate participants through participant contracts;

  (d)that funds its liability to each participant through one or more protected cells and segregates the assets of each protected cell from the assets of other protected cells and from the assets of the protected cell captive insurance company's general account; and

  (e)that is incorporated or formed as a limited liability company. See Montana Code 33-28-101

• Pure captive insurance company: means any company that insures risks of its parent and affiliated companies and controlled unaffiliated business entities. See Montana Code 33-28-101
• Quorum: The number of legislators that must be present to do business.
• Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
• Service of process: The service of writs or summonses to the appropriate party.
• Sole proprietorship: means an individual doing business in a noncorporate form. See Montana Code 33-28-101
• Special purpose captive insurance company: means a captive insurance company that is formed or authorized under this chapter that does not meet the definition of any other type of captive insurance company defined in this section or is formed by, on behalf of, or for the benefit of a political subdivision of this state. See Montana Code 33-28-101
• State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
• Subpoena: A command to a witness to appear and give testimony.
• Writing: includes printing. See Montana Code 1-1-203