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B 26-0588

Captive Insurance Company Amendment Act of 2026

26th Council Period (2025-2026) Introduced by Phil Mendelson

DC bill modernizes captive insurance company regulations to update licensing and operational requirements for specialized self-insurance entities.

Public Hearing on B26-0588
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Bill Summary · B 26-0588

Legislative bill overview

Bill B 26-0588 amends the District of Columbia's captive insurance company regulations to modernize licensing, operational, and reporting requirements for these specialized insurance entities. Captive insurers are insurance companies owned by non-insurance businesses or organizations to insure their own risks rather than purchasing coverage from traditional insurers. The bill updates existing statutory frameworks to reflect current industry practices and regulatory standards.

Why is this important

Captive insurance companies represent a significant alternative risk management tool, particularly for large organizations and government entities seeking cost-effective self-insurance solutions. DC's regulatory framework directly impacts whether businesses headquarter captive operations locally, affecting tax revenue and economic development. Modernizing these regulations helps ensure the district remains competitive while maintaining adequate consumer and policyholder protections.

Potential points of contention

  • Regulatory scope and oversight: Questions about whether updated requirements sufficiently protect stakeholders or if they reduce consumer safeguards in favor of industry flexibility
  • Tax implications: Captive insurance operations carry tax considerations that may concern revenue officials; the bill's financial impact on the district is not yet detailed
  • Definition and eligibility criteria: Debates may emerge over which entities qualify as legitimate captive insurers versus potentially problematic risk-shifting arrangements, particularly regarding government entities

Compiled from official sources — confirm details with the bill’s official record.

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