§36-6470.29. Sponsored captive insurance company – Supplemental
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/ok/title-36-insurance/36-6470-29·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
materials – Protected cells.
A. In addition to the provisions of Sections 6470.1 through 6470.28 of this title and the provisions of Sections 6470.29 through 6470.31 of this title shall apply to sponsored captive insurance companies, and the provisions of Section 6470.24.1 of this title shall apply to each protected cell of a sponsored captive insurance company.
B. Supplemental license application materials.
In addition to the information required by subsection C of Section 6470.3 of this title, each applicant sponsored captive insurance company shall file with the Commissioner the following:
1. Materials demonstrating to the satisfaction of the Commissioner how the applicant will report to the Commissioner on, and account for, the loss and expense experience of each protected cell;
2. A statement acknowledging that all financial records of the sponsored captive insurance company, including records pertaining to any protected cells, shall be made available for inspection or examination by the Commissioner or the Commissioner's designated agent;
3. All contracts or sample contracts between the sponsored captive insurance company and any participants; and
4. Evidence that expenses shall be allocated to each protected cell in a fair and equitable manner.
C. One or more sponsors may form a sponsored captive insurance company under the Oklahoma Captive Insurance Company Act.
D. A sponsored captive insurance company formed or licensed under the Oklahoma Captive Insurance Company Act may establish and maintain one or more protected cells to insure risks of one or more participants, subject to the following conditions:
1. The persons holding the voting interests of a sponsored captive insurance company must be limited to its participants and sponsors; provided, that a sponsored captive insurance company may issue nonvoting securities or interests to other persons on terms approved by the Commissioner;
2. Each protected cell must be accounted for separately on the books and records of the sponsored captive insurance company to reflect the financial condition and results of operations of the protected cell, net income or loss, dividends or other distributions
to participants, and other factors may be provided in the participant contract or required by the Insurance Commissioner;
3. The assets of a protected cell must not be chargeable with liabilities of any other protected cell or, unless otherwise agreed in the applicable participant contract, of the sponsored captive insurance company;
4. No sale, exchange, or other transfer of assets, or dividend or other distribution, may be made with respect to a protected cell by the sponsored captive insurance company without the consent of the participants of each affected protected cell;
5. No sale, exchange, transfer of assets, dividend, or distribution, other than a payment to a sponsor in accordance with the applicable participant contract, may be made from a protected cell to a sponsor or participant without the approval of the Insurance Commissioner and in no event may the approval be given if the sale, exchange, transfer, dividend, or distribution would result in insolvency or impairment with respect to a protected cell;
6. A sponsored captive insurance company annually shall file with the Insurance Commissioner financial reports the Insurance Commissioner requires, which shall include, but are not limited to, accounting statements detailing the financial experience of each protected cell;
7. A sponsored captive insurance company shall notify the Insurance Commissioner in writing within ten
(10)business days of a protected cell that is insolvent or otherwise unable to meet its claim or expense obligations; and
8. No participant contract shall take effect without the prior written approval of the Insurance Commissioner, and the addition of each new protected cell and withdrawal of any participant or termination of any existing protected cell constitutes a change in the business plan of the sponsored captive insurance company requiring the prior written approval of the Insurance Commissioner. Added by Laws 2004, c. 334, § 36, emerg. eff. May 25, 2004. Amended by Laws 2013, c. 41, § 21, eff. Nov. 1, 2013; Laws 2015, c. 298, § 25, eff. Nov. 1, 2015.