Captive insurance companies insuring risk in Washington state must comply with state law. Risk may be insured in Washington state through an admitted insurer or unauthorized insurer placed by a surplus line broker. It's unlawful for captive insurers to operate or insure risk in Washington without being admitted or placing their business through a surplus line broker licensed in this state.
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.