WA HB1714

Two or more small businesses with 20 or fewer employees may form joint self-insurance programs to pool property and liability risks, jointly purchase insurance or reinsurance, and contract for risk management services

Programs require prior approval from the state risk manager, who must review and approve or deny applications within 120 days and adopt rules governing program management, operation, and solvency standards

The state risk manager may issue cease and desist orders and levy fines between $300 and $10,000 for programs operating in violation of the chapter or in unsafe financial condition

Approved programs are exempt from state insurance premium taxes, certain regulatory fees, and business and occupation tax on risk pooling income; exemptions do not extend to insurance companies or third-party administrators serving the programs

Small businesses may participate in multistate programs if ownership is limited to participating entities, a board of directors from participating entities manages the program, and annual audited financial statements are filed within 120 days of fiscal year end