Washington state bill would allow public utility district captives

Washington state lawmakers are considering a bill that would allow public utility districts to form, own or use captive insurers.

House Bill 1842 would allow local government entities to individually self-insure or join or form a self-insurance program with other entities, become captive owners and jointly purchase insurance or reinsurance for property and liability risks, and health and welfare benefits.

In addition, the entities may provide risk management, claims and administrative services, according to the bill’s text.

The bill passed the House Environment & Energy Committee Thursday.