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Key Person Insurance in Washington

Washington’s reported life guaranty limit is $500,000 for death benefits, which can leave a large key-person benefit above the association’s stated coverage level. Confirm the legal insurer and treat the guaranty limit as a backstop, not a policy limit. Washington requires written consent before employer-owned life insurance takes effect and bars retaliation for refusal. Within 30 days after purchase, the employer must also disclose the carrier, maximum face amount, and beneficiary in writing. Ask for both documents. Compare your ownership and insured’s role with Wash. Rev. Code §§ 48.18.030(3)(a), .580(2)–(4); WAC 284-23-580(1)–(3). 4,1

What Is Key Person?

Key person insurance pays the business, not the person’s family, when a founder, partner or employee it relies on dies. Disability, overhead expense and buyout funding are separate products to discuss on their own. Read the national Key person guide.

What to Watch for in Washington

  • Document the Business Interest

    Washington requires written consent before employer-owned life insurance takes effect and bars retaliation for refusal. Within 30 days after purchase, the employer must also disclose the carrier, maximum face amount, and beneficiary in writing. Ask for both documents. 1

  • Complete Written Notice and Consent

    Washington requires an insurer to verify and retain evidence that a business has an insurable interest and that the insured was a key person when the contract was made. Its rule defines key person by role, ownership above 5%, or highly compensated status; ask what evidence the carrier will keep. 2,3

  • Check the State Guaranty Backstop

    NOLHGA’s Washington entry sets the reported death-benefit protection at $500,000. This is not a limit on the contract; ask the broker how it applies to your employer-owned benefit. Review it alongside the replacement-cost estimate for this insured. For issuance, also check Wash. Rev. Code §§ 48.18.030(3)(a), .580(2)–(4); WAC 284-23-580(1)–(3). 4,5,1

Who Regulates Insurance in Washington

Washington State Office of the Insurance Commissioner

The Washington State Office of the Insurance Commissioner administers Washington insurance laws, oversees insurers and insurance producers within its authority, and provides regulatory and consumer resources. You can use the department's complaint process to raise an insurance issue and its licensing resources to check insurance professionals. 6,7,8

Surplus-lines tax and stamping office

Reported tax rate: 2% of premium The NAIC's state chart lists a 2% of premium charge for surplus-lines coverage for Washington (the chart's state entries were reviewed in October 2025). Your broker may collect the applicable amount with the premium. Surplus-lines insurers are not licensed in the state and generally are outside state guaranty-association protection; ask your broker to explain the insurer's financial protections and any diligent-search requirement that applies to your placement. 9,10

Providers With Documented State Licenses

These providers publish a national listing for Key person; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Washington. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. 18

Questions to Ask Before You Buy in Washington

  1. What Washington law supports our business’s insurable interest in this person, and what should we retain to prove the role?
  2. What written notice and consent must the insured receive before this policy is issued, and can coverage continue after employment ends?
  3. How would Washington’s guaranty-association limit apply to this policy and our other business-owned life policies?

Key Person in Washington: FAQ

How much of a key person life policy is protected if an insurer fails in Washington? 4,5

For Washington life benefits, the stated protection amount is $500,000. Ask the broker whether multiple policies on different people are subject to the owner aggregate. NOLHGA reports an aggregate $5 million limit for one owner’s multiple nongroup life policies. 4,5

Does my business need an employee’s consent for key person insurance in Washington? 2,3,1

Yes. Federal rules require written notice and consent before issue for the employer-owned life tax exception. Washington requires an insurer to verify and retain evidence that a business has an insurable interest and that the insured was a key person when the contract was made. Its rule defines key person by role, ownership above 5%, or highly compensated status; ask what evidence the carrier will keep. Ask who will retain the consent and how the insured can access it. For state-law details, check Wash. Rev. Code §§ 48.18.030(3)(a), .580(2)–(4); WAC 284-23-580(1)–(3). 2,3,1

Key Person in Other States

Other Coverage in Washington

Sources

  1. Washington Revised Code § 48.18.580 and WAC 284-23-580 — Employer-Owned Key-Person Insurance. State statute (Justia U.S. Codes and Statutes); Wash. Rev. Code §§ 48.18.030(3)(a), .580(2)–(4); WAC 284-23-580(1)–(3). Accessed 2026-09-28.
  2. 26 U.S.C. § 101(j) — Certain employer-owned life insurance contracts. Office of the Law Revision Counsel, U.S. House of Representatives; 26 U.S.C. § 101(j)(2), (4). Accessed 2026-09-28.
  3. Internal Revenue Bulletin 2009-24 — Employer-Owned Life Insurance Contracts. Internal Revenue Service; Notice 2009-48, Q&A 6–7; written notice and consent. Accessed 2026-09-28.
  4. How You’re Protected: Coverage Levels by State. National Organization of Life & Health Insurance Guaranty Associations; Coverage Levels by State; life insurance death benefits; report current as of May 2025. Accessed 2026-09-28.
  5. Life and Health Insurance Guaranty Association Model Act. National Association of Insurance Commissioners; Section 8(A)(2)(d), owner aggregate benefit cap. Accessed 2026-09-28.
  6. Washington State Office of the Insurance Commissioner. Washington State Office of the Insurance Commissioner; Official regulator website; insurance oversight and consumer/professional resources. Accessed 2026-09-28.
  7. Insurance Department Directory. National Association of Insurance Commissioners; Washington State Office of the Insurance Commissioner entry; official contact and website listing. Accessed 2026-09-28.
  8. Surplus Lines Insurance Premium Taxes. National Association of Insurance Commissioners; WA row; state surplus-lines premium-tax rate reviewed October 2025. Accessed 2026-09-28.
  9. Guaranty Associations & Funds. National Association of Insurance Commissioners; Coverage of claims from insolvencies of insurers licensed in a state; surplus-lines insurers are nonadmitted. Accessed 2026-09-28.
  10. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  11. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  12. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  13. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  14. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  15. About Risklytics. Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16.
  16. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  17. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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