§36-6979. Tangible net equity requirements — Trust deposit.
468 words·~2 min read·
/ok/title-36-insurance/36-6979·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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.
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.