December 10, 2018
OLYMPIA - Insurance Commissioner Mike Kreidler is allowing captive insurance companies that have unlawfully insured any risk in Washington state in the past 15 years to pay a substantially reduced fine and premium tax penalty for self-reporting the activity.
How the plan works:
- The self-reporting period will last 18 months, from Jan. 1, 2019 through June 30, 2020.
- Starting July 1, 2019, the fine amount and tax penalty will increase for every six months that the captive insurer waits to self-report, until June 30, 2020.
- Kreidler will pursue maximum fines and tax penalties against captive insurers that have unlawfully insured risk in Washington state after the 18-month grace period ends on June 30, 2020.
Kreidler’s office also encourages captive insurers who insured risk in Washington more than 15 years ago to self-report those policies from Jan. 1, 2019 through June 30, 2020, without facing fines and premium taxes. If they do not self-report before June 30, 2020, Kreidler will pursue the maximum fines and tax penalties.
Kreidler reached a settlement with Cypress, a captive insurer for Microsoft, in August 2018.