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.
HB 1842 is effective June 19, 2026.
The bill summary can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.