Bill > HB1842

This bill allows public utility districts (PUDs), which are municipal corporations that provide electricity, water, or other utility services, to form, own, or use captive insurers. A captive insurer is a specialized insurance company created to insure the risks of a specific parent organization or group of organizations. The bill amends several existing laws to explicitly permit PUDs to become captive owners, which means they can create or participate in an insurance company that provides coverage specifically for their own risks or the risks of their affiliated entities. The legislation expands the definition of "captive owner" to include municipal corporations organized under Title 54 RCW (which governs PUDs) and provides these entities with more flexibility in managing their insurance needs. By creating this option, the bill gives PUDs a potential tool to more efficiently and cost-effectively manage their insurance risks, potentially reducing their overall insurance expenses by creating a tailored insurance solution that directly addresses their unique operational challenges and potential liability exposures.

Agriculture and Natural Resources

https://app.leg.wa.gov/billsummary?BillNumber=1842&Year=2025&Initiative=false