Captive insurance companies insuring risk in Washington state must comply with state law. Existing law allows for risk to be insured in Washington state through an admitted insurer or through an unauthorized insurer placed by a surplus line broker. Captive insurers operating or insuring risk in the state of Washington who are not admitted in this state or who do not place their business through a surplus line broker licensed in this state are acting unlawfully.
Insurance Commissioner Mike Kreidler will reduce fines and penalties for captive insurers who self-report their activity in Washington state.
How the plan works
Premium tax, interest on premium tax, and the tax penalty will be calculated based off of the look-back period. Activity outside of the look-back period will be forgiven. Reporting prior to December 31, 2019 will result in the shortest look-back period. Captives who self-report will take advantage of a reduced tax penalty and discounted fine.