Washington has cleared public utility districts to use captive insurers and reset filing deadlines, CPA rules, and definitions for the state's captive market.
The Washington Office of the Insurance Commissioner adopted permanent amendments to its captive insurer regulations on May 19, 2026, implementing House Bill 1842 (2025). The law lets public utility districts own, form, or use captive insurers. The rule takes effect 31 days after filing.
The order, WSR 26-11-056 under Insurance Commissioner Matter R 2025-14, amends four sections of the Washington Administrative Code governing captives: WAC 284-201-130, 284-201-210, 284-201-220, and 284-201-240. It was adopted under the authority of RCW 48.02.060, RCW 48.201.060, and Chapter 53, Laws of 2025. The proposed version was filed on December 22, 2025, as WSR 26-01-174.
The Commissioner also used the rule-making to update several definitions and submission requirements that captive insurers and their advisors deal with each year.
The definition of a captive insurer was rewritten. The previous version defined a captive by its ownership structure – wholly or partially owned by a captive owner and insuring the risks of that owner or its affiliates. The amended definition now describes a captive simply as an entity licensed as a captive insurer by the jurisdiction in which it is domiciled.
The financial statement definition was also updated. Captives that have existed for less than a full fiscal year previously had no clear submission standard. The amended rule now allows the audited financial statement to cover either the last fiscal year or the time period the captive has been in existence if less than one fiscal year. The CPA preparing the statement must hold a valid CPA license and be in good standing with a board of accountancy regulatory authority.
Several deadlines moved. The annual renewal deadline shifted from June 30 to July 31. The renewal period now runs from August 1 through July 31, rather than July 1 through June 30. The recommended filing date for a timely renewal moved from April 1 to June 1. The deadline for captives to submit their Washington-risk allocation methodology and supporting analysis to the Commissioner also moved from April 1 to June 1.
The registration fee remains at $2,500. The annual renewal fee is capped at $2,500 and published on the Commissioner's website.
The premium tax framework was not loosened. Registered eligible captives still owe a two percent tax on premiums for insurance directly procured by and provided to a parent or affiliate for Washington risks, due on or before March 1 each year. Captives that fail to remit by the last day of the month the tax becomes due remain subject to the tax, penalties, and interest provided in RCW 48.14.060. The prior-period rule covering Washington risks insured after January 1, 2011, also stays in place, and applies to all types of insurance covering Washington risks, not just property and casualty.
The rule was signed by Insurance Commissioner Patty Kuderer.
