True or False: Captive Insurance is allowed in Washington State.

Captive insurance is indeed allowed in Washington State, which means the correct answer is actually true. Captive insurance companies are formed to provide coverage for the risks of their parent organization, and Washington has legislation that governs the formation and operation of captive insurance companies. This allows businesses to establish captives as a means to manage their own risk more effectively while providing regulatory oversight to ensure compliance with state laws and regulations.

In Washington, captive insurance companies must adhere to specific statutory requirements, including obtaining a license and maintaining certain financial standards. Therefore, the assertion that it is not allowed in the state is inaccurate. The regulation of captive insurance helps maintain a structured and accountable environment for businesses that utilize this form of risk management.