Oklahoma § 36-6979 - Tangible net equity requirements — Trust deposit

§ 36-6979. Tangible net equity requirements — Trust deposit

A. 1. Except as approved in accordance with subsection B of

this section, each prepaid vision plan organization shall at all

times have and maintain tangible net equity equal to the greater of:

a.

Fifty Thousand Dollars ($50,000.00), or

b.

two percent (2%) of the organization’s annual gross

premium income, up to a maximum of the required

capital and surplus of an accident and health insurer.

2. A prepaid vision plan organization that has uncovered

expenses in excess of Fifty Thousand Dollars ($50,000.00), as

reported on the most recent annual financial statement filed with

the Insurance Commissioner, shall maintain tangible net equity equal

to twenty-five percent (25%) of the uncovered expenses in excess of

Fifty Thousand Dollars ($50,000.00) in addition to the tangible net

equity required by paragraph 1 of this subsection.

B. 1. Each prepaid vision plan organization shall deposit in

trust with the Commissioner cash, securities eligible for the

investment of capital funds under the Oklahoma Insurance Code, other

measures deemed acceptable by the Commissioner, or any combination

thereof in an amount equal to Twenty-five Thousand Dollars

($25,000.00) plus twenty-five percent (25%) of the tangible net

equity required in subsection A of this section; provided, however,

that the deposit shall not be required to exceed One Hundred

Thousand Dollars ($100,000.00). Any securities deposited under this

subsection shall be issued to the Commissioner and the prepaid

vision plan organization and shall not be released by any company

holding such security without the signatures of the Commissioner and

the authorized prepaid vision plan organization’s personnel.

Oklahoma Statutes - Title 36. Insurance

2. The deposit shall be an admitted asset of the prepaid vision

plan organization in the determination of tangible net equity.

3. All income from deposits shall be an asset of the prepaid

vision plan organization. A prepaid vision plan organization may

withdraw a deposit or any part thereof after making a substitute

deposit of an equal amount and value. Any securities shall be

approved by the Commissioner before being substituted.

4. The deposit shall be used to protect the interests of the

members of the prepaid vision plan organization and to assure

continuation of vision plan services to members of a prepaid vision

plan organization that is in rehabilitation or conservation. If a

prepaid vision plan organization is placed in receivership or

liquidation, the deposit shall be an asset subject to the provisions

of Article 19 of the Oklahoma Insurance Code pursuant to Section

1901 et seq. of Title 36 of the Oklahoma Statutes, provided the

deposit shall not be subject to attachment by any creditors of the

prepaid vision plan organization.

5. The deposit shall not apply to a prepaid vision plan

organization that is funded by the United States government, this

state, or a political subdivision thereof.

Added by Laws 2024, c. 360, § 8, emerg. eff. May 30, 2024.