Montana State introduced a new law relating to captive insurance companies. The new law, which is titled HB 160, authorizes a captive insurance company to write surety insurance. The law states that a pure captive has the option to write surety bonds for its parent and associated companies but only for its members if it is an association captive. The SFAA and AIA resisted this bill, but it is comparable to the laws of other states. The SFAA examined the law of Vermont, Hawaii and South Carolina, which are states that house the most U.S. captives and these laws allow captives to write almost all property-casualty lines, excluding auto, homeowners and workers’ compensation. The SFAA communicated with the Vermont captive association and the Vermont Insurance Department because Vermont is home to the most captives. The SFAA discovered that there are a very limited amount of captives in Vermont that have the ability to write surety bonds. The Insurance Department helped back the bill and the fact that other states allow captives to write surety bonds made the bill pass. HB 160 was activated on July 1st, 2009.