From: Captive International
Washington state Governor Jay Inslee has signed legislation that creates a framework for captive insurers doing business in the state.
Second Substitute SB 5315 requires captives operating in Washington to register with the Office of the Insurance Commissioner (OIC), and pay a registration fee of $2,500. Captives must also pay an annual 2 percent premium tax on insurance by March 1 every year, starting in 2022.
An independent study commissioned by OIC predicted the rules will generate around $2.5 million in revenue per year. It believes captives will owe more than $29 million in past premium taxes, due July 1, 2021.
The legislation was requested by insurance commissioner Mike Kreidler and sponsored by Democratic senator Mark Mullet.
Kreidler said the legislation is “an important step to allow companies to continue utilising this prudent risk management tool, while paying their fair share of premium tax to the state’s general fund, like other insurance companies have done for decades.”