The Washington State Office of the Insurance Commissioner (OIC) has imposed a US$5,000 penalty on one of Maple Shade Assurance’s segregated cells, finding that the cell operated as a captive insurer in Washington without proper registration.
In issuing Order 25-0041, the OIC determined that the cell had written coverage for Washington risks without first registering under state law.
Under Washington regulations, insurers — including captives — must register with the OIC before covering risks or policyholders in the state, regardless of where the company is domiciled.
Hartley Hartman, an officer of Maple Shade Assurance, has a differing view with the OIC’s handling of the application process. He says that OIC staff raised questions about meeting the US$1 million assets-over-liabilities requirement but then failed to follow up as it was referred up to a different division in the OIC.
“There was radio silence on this from OIC and a follow-up was sent in March 2024, and there was continued silence from the OIC until later in the year when they got back to us indicating that we needed to infuse US$1 million at which time the Series funding was increased to comply with the stated regulations,” he explains.
Because Maple Shade Assurance never received formal notice that its application was unapproved, the cell continued issuing policies “with business as usual,” Hartman adds, noting also that “the 2023 and 2024 taxes to Washington had been paid on time.”
He further indicates that the company “is considering appealing this decision”.
