The Washington State Senate has passed a captive bill that would see eligible captive insurers pay a 2 per cent premium tax for insurance directly procured by and provided to its parent or affiliate for Washington risks during the preceding calendar year.
The bill, which passed 49-0, was submitted during the Washington State 2021 legislative session.
The proposed bill would see the creation of a framework for registering eligible captive insurers and imposing a premium tax on the risk covered by premiums allocable to the state.
It would bring $29 million in back taxes and generate revenues of more than $2.5 million per year going forward.
On 11 March, the bill was referred to consumer protection and business. There are no plans for it to be officially read and will be referred until the adoption of the introduction report.
The bill now will go through the same process in the House of Representatives. If the bill passes the house, it can then be signed by respective leaders and sent to Governor Jay Inslee.
Governor Inslee can then sign the bill into law, veto all or part of the bill, or take no action at all.
Washington Insurance Commissioner Mike Kreidler spoke to Captive Insurance Times in February 2020 about his views and plans for captive insurance operating with Washington State.
