§ 36-6470.6 — Unimpaired paid-in capital requirements – Branch

Oklahoma § 36-6470.6

• Jurisdiction: Oklahoma
• Title 36: Insurance

Text

companies – Trust funds – Dividends and distributions – Approval required. A. The Insurance Commissioner may not issue or renew the license of a captive insurance company unless the company possesses and thereafter maintains unimpaired aggregate paid-in capital and surplus of: 1. In the case of a pure captive insurance company, not less than Two Hundred Fifty Thousand Dollars ($250,000.00), One Hundred Fifty Thousand Dollars ($150,000.00) of which must be paid-in prior to the issuance of a license, and an additional One Hundred Thousand Dollars ($100,000.00) of which must be paid-in on or before the first anniversary of the issuance of the initial license; 2. In the case of an association captive insurance company incorporated as a stock insurer, not less than Seven Hundred Fifty Thousand Dollars ($750,000.00); 3. In the case of an industrial insured captive insurance company incorporated as a stock insurer, not less than Five Hundred Thousand Dollars ($500,000.00); 4. In the case of a sponsored captive insurance company, not less than Five Hundred Thousand Dollars ($500,000.00); 5. In the case of any captive insurance company doing business as a risk retention group, not less than One Million Dollars ($1,000,000.00); and 6. In the case of a special purpose or branch captive insurance company, not less than Two Hundred Fifty Thousand Dollars ($250,000.00) or an amount determined by the Insurance Commissioner after giving due consideration to the business plan of the company, feasibility study, and pro formas, including the nature of the risks to be insured; 7. In the case of a series captive insurance company, the minimum capital and surplus shall be in an amount specified by the Insurance Commissioner; and 8. The unimpaired paid-in capital may be in the form of cash, cash equivalent, or an irrevocable letter of credit issued by a bank chartered by this state or a member bank of the Federal Reserve System. The issuing bank shall be approved by the Insurance Commissioner. B. The Insurance Commissioner may prescribe additional capital and surplus based upon the type, volume, and nature of insurance business transacted. C. In the case of a branch captive insurance company, as security for the payment of liabilities attributable to branch operations, the Insurance Commissioner may require that a trust fund, funded by an irrevocable letter of credit or other acceptable asset, be established and maintained in the United States for the benefit of United States policyholders and United States ceding insurers. The amount of the security may be no less than the capital and surplus required by the Oklahoma Captive Insurance Company Act and the reserves on these insurance policies or reinsurance contracts. D. A captive insurance company may not pay a dividend out of, or other distribution with respect to, capital or surplus, without the prior approval of the Insurance Commissioner. Approval of an ongoing plan for the payment of dividends or other distributions must be conditioned upon the retention, at the time of each payment, of capital or surplus in excess of amounts specified by, or determined in accordance with formulas approved by, the Insurance Commissioner.

Legislative History

Added by Laws 2004, c. 334, § 13, emerg. eff. May 25, 2004. Amended by Laws 2013, c. 41, § 7, eff. Nov. 1, 2013; Laws 2015, c. 298, § 16, eff. Nov. 1, 2015; Laws 2021, c. 314, § 16, eff. Nov. 1, 2021.