Commissioner signs off captive regulations
The Office of the Insurance Commissioner in Washington has adopted its proposed regulations to implement new captive insurance laws passed in May.
Under the proposals published in August, captives active in the state must register and pay insurance premium tax. Registrations must be renewed annually. Two per cent on premium tax for insurance directly procured by and provided to its parent or another affiliate for Washington risks during the previous calendar year must be paid for all premiums written since 1 January 2011, if these have not previously been paid to the commissioner.
An independent study commissioned by the commissioner’s office previously estimated that captives would owe more than $29 million in past premium taxes.
Earlier this month, during state elections, voters roundly rejected the new law, along with a number of others in advisory votes that must be held under state law on tax-raising measures.
Nevertheless, the commissioner’s regulations will take effect from 21 December 2021.