The Washington Office of the Insurance Commissioner published a news release announcing the passage of House Bill 1842, allowing public utility districts to form captive insurers.

A public utility district (PUD) is a type of special purpose district authorized to provide utilities such as electricity, telecommunications, and water and sewer services. Washington law allows local government entities to self-insure. HB 1842 expands this authority to allow PUDs to create captive insurers, as long as they meet the requirements.

Captives insurers must be wholly or partially owned by the PUD, insure the risks of its owner and affiliates, have one or more insureds whose principal place of business is in Washington, and have assets that exceed its liabilities by $1 million, as verified by audited financial statements.