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The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

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The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance explores the challenges presented by today's business and economic upheaval, as well as the hardening insurance market, and what it means for the captive insurance industry.

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Microsoft Captive Insurer Ordered To Cease and Desist

Washington State 480x377
May 16, 2018

By Saren Goldner and P. Bruce Wright 
Eversheds Sutherland (US) LLP

Editor's note: A news flash from our friends at Eversheds Sutherland. Saren Goldner and P. Bruce Wright are partners in the tax department of Eversheds Sutherland (US) LLP situated in the New York office.

The Washington State Office of the Insurance Commissioner has ordered an Arizona captive owned by Microsoft that provides coverage to the Microsoft group of companies to cease and desist transacting insurance business in the state and soliciting and writing insurance coverage for Washington insureds. In addition, the order imposes the Washington premium tax on the Arizona captive, as Washington has no tax on direct placements or industrial insured placements with nonadmitted insurers. The order indicates that the captive provides coverage to insureds in Washington and has officers and directors that are employees of its insureds located in the state. The cease and desist order, however, is unclear on the precise basis for the commissioner's determinations.

View Order 18-0220 here.

 

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