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

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

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

Oklahoma Statutes - Title 36. Insurance

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.

Oklahoma Statutes - Title 36. Insurance

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.

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.