Oklahoma § 36-6470.10 - Formation of captive reinsurance company or sponsored

§ 36-6470.10. Formation of captive reinsurance company or sponsored

captive insurance company – Organization as reciprocal insurer –

Branch captive insurance company – Considerations for issuance of

license – Privileges and obligations.

A. A captive insurance company may be incorporated as a stock

corporation or as a nonstock corporation, or may be formed as a

limited liability company, partnership, limited partnership,

statutory trust or any lawful form approved by the Insurance

Commissioner.

B. An association captive insurance company, industrial insured

captive insurance company or special purpose captive insurance

company may be organized as a reciprocal insurer.

C. The Commissioner shall not issue the initial license or

review the license of any captive insurer unless the Commissioner

determines the following matters serve the best interest of the

prospective policyholders and promote the general good of the state:

1. The character, reputation, financial standing, and purposes

of the principals, owners or other persons who will direct or

control the affairs of the captive insurer;

2. The character, reputation, financial responsibility,

insurance experience, and business qualifications of the officers

and directors; and

3. Other aspects as the Insurance Commissioner considers

advisable.

D. In the case of a captive insurance company licensed as a

branch captive insurance company, the findings required in

subsection C above shall be in respect to the alien captive

insurance company.

Oklahoma Statutes - Title 36. Insurance

E. 1. A captive insurance company formed under the laws of

this state or under the laws of another jurisdiction that is

licensed under the provisions of this title shall have the

privileges and be subject to the provisions of the laws of this

state or the laws of such other jurisdiction, as applicable, under

which such captive insurance company is organized as well as the

applicable provisions contained in this title. In the event of

conflict between the provisions of the laws of this state or the

laws of such other jurisdiction, as applicable, under which such

captive insurance company is organized, and the provisions of this

title, the latter shall control.

2. A captive insurance company, formed or licensed under the

Oklahoma Captive Insurance Company Act, has the privileges and is

subject to the provisions of Oklahoma law as well as the applicable

provisions contained in the Oklahoma Captive Insurance Company Act.

If a conflict occurs between a provision of the general law of

Oklahoma and a provision of the Oklahoma Captive Insurance Company

Act, the latter controls. No provision of the Oklahoma Insurance

Code, other than those contained in this act or otherwise

specifically referencing such companies, shall apply to captive

insurance companies.

3. In addition to the applicability of law provided in this

section, a captive insurance company operating as a risk retention

group shall be subject to the provisions of the Oklahoma Risk

Retention Act under Sections 6451 through 6468 of this title.

4. All preliminary reports or results, working papers, recorded

information, orders, documents and copies of documents produced by,

obtained by or disclosed to the Commissioner or any other person in

the course of any merger, consolidation, conversion, mutualization

and change of control made under this section are confidential and

are not subject to subpoena and may not be made public by the

Commissioner or any employee or agent of the Commissioner without

the written consent of the company, except to the extent provided in

this subsection. Nothing in this subsection prevents the

Commissioner from using this information in furtherance of the

regulatory authority of the Commissioner under the Oklahoma Captive

Insurance Company Act. The Commissioner may grant access to this

information to public officers having jurisdiction over the

regulation of insurance in any other state or country, or to law

enforcement officers of this state or any other state or agency of

the federal government at any time, so long as the officers

receiving the information agree in writing to use and retain it in

any manner consistent with this section.

5. The terms and conditions set forth in Articles 18 and 19 of

the Oklahoma Insurance Code pertaining to insurance supervision,

conservatorship, rehabilitation, and receiverships apply in full to

captive insurance companies including for this purpose individual

Oklahoma Statutes - Title 36. Insurance

protected cells of sponsored captive insurance companies as provided

in Section 6470.29 of this title.

6. Any insurer which holds a current license to transact the

business of insurance under the laws of any other jurisdiction may

become an Oklahoma domiciled captive insurer by complying with all

of the requirements of Oklahoma law relative to the organization and

licensing of a captive insurer and obtaining the approval of the

insurer's application for redomestication by the chief insurance

regulatory official of the company's current and proposed domiciles.

Added by Laws 2004, c. 334, § 17, emerg. eff. May 25, 2004. Amended

by Laws 2013, c. 41, § 8, eff. Nov. 1, 2013; Laws 2015, c. 298, §

17, eff. Nov. 1, 2015; Laws 2018, c. 306, § 3; Laws 2021, c. 314, §

17, eff. Nov. 1, 2021; Laws 2022, c. 127, § 3, eff. Nov. 1, 2022.

§36-6470.10a. Establishment of series limited liability company.

Captive insurance companies formed or licensed under the

Oklahoma Captive Insurance Company Act may establish a series

limited liability company under the Oklahoma Limited Liability

Company Act. Any exclusion of the business of a domestic insurer

under Title 18 of the Oklahoma Statutes shall not apply to captive

insurance companies formed or licensed under the Oklahoma Captive

Insurance Company Act.

Added by Laws 2022, c. 127, § 4, eff. Nov. 1, 2022.