§36-6470.2. Definitions.
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/ok/title-36-insurance/36-6470-2·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
As used in the Oklahoma Captive Insurance Company Act:
1. "Alien company" means an insurance company formed and licensed pursuant to the laws of a country or jurisdiction other than the United States of America, or any of its states, districts, commonwealths and possessions;
2. "Affiliated company" means a company in the same corporate system as a parent, an industrial insured, or a member organization by virtue of common ownership, control, operation, or management;
3. "Association" means a legal association of individuals, corporations, partnerships, or associations that has been in continuous existence for at least one
(1)year or such lesser period of time approved by the Commissioner:
a. the member organizations of which, or which does
itself or either of them acting in concert directly or
indirectly own, control, or hold with power to vote
all of the outstanding voting securities or interests
of, or have complete voting control over an
association captive insurance company, or
b. the member organizations of which collectively
constitute all of the subscribers of an association
captive insurance company formed as a reciprocal
insurer;
4. "Association captive insurance company" means a captive insurance company that insures risks of the member organizations of the association and their affiliated companies;
5. "Branch business" means any insurance business transacted by a branch captive insurance company in this state;
6. "Branch captive insurance company" means an alien captive insurance company licensed by the Insurance Commissioner to transact the business of insurance in this state through a business unit with
a principal place of business in this state. A branch captive insurance company must be a pure captive insurance company with respect to operations in this state, unless otherwise permitted by the Insurance Commissioner;
7. "Branch operations" means any business operations of a branch captive insurance company in this state;
8. "Capital and surplus" means the amount by which the value of all of the assets of the captive insurance company exceeds all of the liabilities of the captive insurance company, as determined under the method of accounting utilized by the captive insurance company in accordance with the applicable provisions of this act;
9. "Captive insurance company" means a pure captive insurance company, association captive insurance company, sponsored captive insurance company, special purpose captive insurance company, industrial insured captive insurance company, branch captive insurance company, or series captive insurance company formed or licensed under the Oklahoma Captive Insurance Company Act;
10. "Controlled unaffiliated business" means a company:
a. that is not in the corporate system of a parent and
affiliated companies,
b. that has an existing contractual relationship with a
parent or affiliated company, and
c. whose risks are managed by a pure captive insurance
company in accordance with Section 6470.27 of this
title;
11. "Insurance Commissioner" means the Insurance Commissioner of this state or designee of the Insurance Commissioner;
12. "Department" means the Insurance Department;
13. "GAAP" means generally accepted accounting principles;
14. "Industrial insured" means an insured:
a. who procures the insurance of any risk or risks by use
of the services of a full-time employee acting as an
insurance manager or buyer,
b. whose aggregate annual premiums for insurance on all
risks total at least Twenty-five Thousand Dollars
($25,000.00), and
c. who has at least twenty-five full-time employees;
15. "Industrial insured captive insurance company" means a company that insures risks of the industrial insureds that comprise the industrial insured group and their affiliated companies;
16. "Industrial insured group" means a group of industrial insureds that collectively directly or indirectly owns, controls, or holds with power to vote all of the outstanding voting securities or other voting interests or has complete control over an industrial insured captive insurance company;
17. "Member organization" means any individual, corporation, partnership, or association that belongs to an association;
18. "Parent" means any corporation, partnership, or individual that directly or indirectly owns, controls, or holds with power to vote more than fifty percent (50%) of the outstanding voting securities of a pure captive insurance company;
19. "Participant" means an entity as defined in Section 6470.31 of this title, and any affiliates of that entity, that are insured by a sponsored captive insurance company, where the losses of the participant are limited through a participant contract to the participant's pro rata share of the assets of one or more protected cells identified in the participant contract;
20. "Participant contract" means a contract by which a sponsored captive insurance company insures the risks of one or more participants and limits the losses of each participant to its pro rata share of the assets of one or more protected cells identified in the participant contract;
21. "Protected cell" means a separate and distinct account established and maintained by or on behalf of a sponsored captive insurance company in which assets are accounted for and recorded for one or more participants in accordance with the terms of one or more participant contracts to fund the liability of the sponsored captive insurance company assumed on behalf of the participants as set forth in the participant contracts;
22. "Pure captive insurance company" means a company that insures risks of its parent, affiliated companies of its parent, and any controlled unaffiliated business, or a combination thereof. For purposes of this paragraph, "controlled unaffiliated business" means an entity insured by a pure captive insurance company:
a. that is not in the corporate system of a parent and
affiliated companies,
b. that has an existing contractual relationship with a
parent or affiliated company, and
c. whose risks are managed by a pure captive insurance
company;
23. "Reciprocal insurer" has the meaning given that term in Article 29 of the Oklahoma Insurance Code;
24. "Risk retention group" means a risk retention group formed pursuant to the Liability Risk Retention Act of 1986 under Section 3901 of Title 15 of the United States Code;
25. "Series" means a series of members, managers, membership interests or assets under the Oklahoma Limited Liability Company Act pursuant to Section 2054.4 of Title 18 of the Oklahoma Statutes, or the corresponding law of another state;
26. "Series captive insurance company" means a series which has received a certificate of authority pursuant to this act;
27. "Special purpose captive insurance company" means a captive insurance company that is formed or licensed under the Oklahoma Captive Insurance Company Act that does not meet the definition of
any other type of captive insurance company defined in this section and is designated as a special purpose captive insurance company by the Commissioner;
28. "Sponsor" means an entity that meets the requirements of Section 6470.30 of this title and is approved by the Insurance Commissioner to provide all or part of the capital and surplus required by applicable law and to organize and operate a sponsored captive insurance company;
29. "Sponsored captive insurance company" means a captive insurance company:
a. in which the minimum capital and surplus required by
applicable law is provided by one or more sponsors,
b. that is formed or licensed under the Oklahoma Captive
Insurance Company Act,
c. that insures the risks of its participants only
through separate participant contracts, and
d. that funds its liability to each participant through
one or more protected cells and segregates the assets
of each protected cell from the assets of other
protected cells and from the assets of the sponsored
captive insurance company's general account; and
30. "Workers' compensation insurance" means insurance provided in satisfaction of an employer's responsibility as set forth in the Administrative Workers' Compensation Act and the Oklahoma Employee Injury Benefit Act. Added by Laws 2004, c. 334, § 9, emerg. eff. May 25, 2004. Amended by Laws 2013, c. 41, § 5, eff. Nov. 1, 2013; Laws 2015, c. 298, § 14, eff. Nov. 1, 2015; Laws 2016, c. 73, § 12, eff. Nov. 1, 2016; Laws 2021, c. 314, § 14, eff. Nov. 1, 2021; Laws 2022, c. 127, § 1, eff. Nov. 1, 2022.