26 November 2019Law & regulation

Bahamas-based captive banned from doing business in Washington

The insurance commissioner for the State of Washington has issued a cease and desist order to 2A Insurance, a captive insurance company, preventing it from engaging in any insurance-related activities in the state.

Specifically, the order prevents 2A or CCW Safe, its Oklahoma-based owner, from “seeking, pursuing and obtaining any insurance or service contract” in the state, or soliciting any Washington residents to buy or sell insurance.

CCW is a “legal service membership plan” which “takes on the burden of the expenses associated with defending a self defence / use of force critical incident.” It offers various plans to members, all of which include upfront funds for for criminal or civil defence with no caps, access to legal support, coverage for appeals and funds for missed work, counseling sessions and crime scene clean up.

2A Insurance, a segregated account of First Property and Casualty, is based in the Bahamas and managed by Hamilton Captive Management.

The cease and desist order states: “Neither 2A, Madison nor Hamilton hold a certificate of authority to transact insurance in Washington state,” or a surplus line broker license to place non-admitted insurance in the state.

CCW and 2A also failed to pay 2 percent premium taxes, the order said.