Oklahoma § 36-607.1 - Certain entities considered insurers - Audited financial

§ 36-607.1. Certain entities considered insurers - Audited financial

reports - Actuarial opinions.

A. An entity organized pursuant to the Interlocal Cooperation

Act (an "Interlocal Entity") for the purpose of transacting

insurance that insures an Oklahoma educational institution shall be

considered an insurer for all kinds of insurance that the entity

transacts. Such an entity shall hold a certificate of authority to

transact insurance in this state.

B. Any entity organized pursuant to the Interlocal Cooperation

Act that insures an Oklahoma educational institution and has within

a twelve-month period received premiums or contributions of any

amount for any kind of insurance that the Interlocal Entity

transacts shall have an annual audit by an independent certified

public accountant and shall file an audited financial report by an

independent certified public accountant with the Insurance

Commissioner within one hundred eighty (180) days immediately

following the close of the Interlocal Entity's fiscal year. The

annual audited financial report shall be presented in conformity

with accounting principles generally accepted in the United States

of America and include:

1. The report of an independent certified public accountant in

accordance with accounting principles generally accepted in the

United States of America;

2. A balance sheet reporting assets, liabilities and equity;

3. A statement of operations;

4. A statement of cash flows;

5. A statement of changes in assets, liabilities and equity;

6. Footnotes to financial statements; and

7. An unqualified opinion from the certified public accountant

that the audited financial report represents a fair presentation of

the Interlocal Entity's financial position in conformity with

Oklahoma Statutes - Title 36. Insurance

accounting principles generally accepted in the United States of

America.

C. Any entity subject to the provisions of subsection B of this

section, except those entities which purchase full insurance

coverage as determined by the Commissioner, shall file with the

Insurance Commissioner an actuarial opinion prepared by a qualified

actuary within one hundred eighty (180) days immediately following

the close of the Interlocal Entity's fiscal year. The actuarial

opinion should certify the amount and adequacy of the Interlocal

Entity's reserves for loss and loss adjustment expenses, including

amounts for Incurred But Not Reported (IBNR) Claims, and the

adequacy of the Interlocal Entity's premiums. The actuarial opinion

shall be consistent with the appropriate Actuarial Standards of

Practice (ASOP) as promulgated by the Actuarial Standards Board.

As used in this section, "qualified actuary" means an individual

who is a member of the American Academy of Actuaries and who has met

the Qualification Standards for Actuaries Issuing Statements of

Actuarial Opinions in the United States promulgated by the American

Academy of Actuaries.

D. Extensions of the filing date may be granted by the

Commissioner for thirty-day periods upon a showing by the Interlocal

Entity and its independent certified public accountant or qualified

actuary of the reasons for requesting an extension and determination

by the Commissioner of good cause for an extension. The request for

extension must be submitted in writing not less than ten (10) days

prior to the due date in sufficient detail to permit the

Commissioner to make an informed decision with respect to the

requested extension.

E. The Commissioner may assess a fine for failure to file the

required annual audit or actuarial opinion in an amount of not more

than Five Hundred Dollars ($500.00) per day.

F. The audited financial reports and actuarial opinions

required herein are subject to public inspection pursuant to the

Oklahoma Open Records Act.

G. The Insurance Commissioner shall, if there is substantial

reason to believe that any insurer subject to this section is

insolvent, or if any such insurer's condition is such as to render

the continuance of its business hazardous to the public or to

holders of its policies or certificates of insurance, or it has

exceeded its powers, or it has failed to comply with the law, or if

such insurer gives its consent:

1. Notify the insurer and its participating members of the

Commissioner's determination;

2. Require the insurer to file with the Insurance Commissioner

a written plan of action to abate the Commissioner's determination

within thirty (30) days of notification; and

Oklahoma Statutes - Title 36. Insurance

3. If the Commissioner makes a further determination to

supervise, notify the insurer that it is under supervision pursuant

to this section.

H. An insurer subject to subsection G of this section shall

comply with the lawful requirements of the Commissioner and, if

placed under supervision, shall have ninety (90) days from the date

of notice within which to comply with the requirements of the

Commissioner unless the Commissioner designates a lesser or greater

period of time or unless the Commissioner determines at any time

during or after the ninety-day period of time that judicial or

administrative proceedings should be initiated to place such insurer

in conservation, rehabilitation or liquidation proceedings or other

delinquency proceedings, pursuant to Sections 1801 through 1920 of

this title. If such insurer does not comply with such requirements,

such supervision may continue until such requirements are remedied

or until the Commissioner approves or completes pursuit of

additional options as provided in the Insurance Code.

I. The Commissioner may assess a fine for failure to timely

file a written plan of action required under subsection G of this

section in an amount of not more than Five Hundred Dollars ($500.00)

per day.

J. The Insurance Commissioner may promulgate rules to implement

the provisions of this section.

Added by Laws 1994, c. 214, § 1, eff. July 1, 1994. Amended by Laws

2006, c. 83, § 1, eff. Nov. 1, 2006; Laws 2013, c. 306, § 1, emerg.

eff. May 16, 2013; Laws 2014, c. 39, § 1, eff. Nov. 1, 2014; Laws

2015, c. 296, § 1, eff. Nov. 1, 2015; Laws 2016, c. 73, § 2, eff.

Nov. 1, 2016; Laws 2021, c. 423, § 1, eff. Nov. 1, 2021.