WAC 284-201-130

The definitions in RCW 48.201.020, apply in this regulation unless otherwise specified or unless the context clearly requires otherwise. The following definitions apply to this chapter and to chapter 48.201 RCW:

(1) "Captive insurer" means an entity that is licensed as a captive insurer by the jurisdiction in which it is domiciled.

(2) "Eligible captive insurer" has the same meaning as set forth in chapter 48.201 RCW.

(3) "Financial statement" means an audited financial statement for the last fiscal year, or for the time period the captive has been in existence if less than one fiscal year, prepared by an independent certified public accountant (CPA). The CPA must hold a valid CPA license and be in good standing with a board of accountancy regulatory authority.

(4) "Insurer" has the same meaning as set forth in RCW 48.01.050.

(5) "Principal place of business" refers to the place where a business entity's management direct, control, and coordinate the corporation's activities, i.e., its "nerve center," which will typically be found at its corporate headquarters. Except where the parent corporation is the alter ego of the subsidiary, subsidiaries are analyzed separately from their parent or holding companies. For example, if a captive insurer insures a subsidiary that is headquartered in Washington, then this state would be the principal place of business for the insured subsidiary, even if the parent company was headquartered elsewhere.

(6) "Registered eligible captive insurer" means an eligible captive insurer who submitted an application that was approved by the commissioner. A registered eligible captive insurer that fails to properly renew its registration will no longer be considered registered under chapter 48.201 RCW.

(7) "Reinsurance" means a form of insurance issued to insurers.

(8) "Reinsurer" means an insurer that assumes all or part of an insurance or reinsurance policy written by the ceding insurer.