Microsoft Captive Insurer Ordered To Cease and Desist
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.