Okla. Admin. Code § 365:25-15-23

Current through Vol. 41, No. 19, June 17, 2024

Section 365:25-15-23 - Dormant captive insurance companies

(a) As used in this Section, unless the context requires otherwise, "dormant captive insurance company" means a captive insurance company which has:

(1) ceased transacting the business of insurance, including the issuance of insurance policies;

(2) no remaining liabilities associated with insurance business transactions; and

(3) no unpaid premium taxes.

(b) A captive insurance company domiciled in Oklahoma which meets the criteria of paragraph (a) of this Section may apply to the Commissioner for a certificate of dormancy. If, after a period of five (5) years from the date of the written notice being sent to the Commissioner, a dormant captive insurance company has not resumed transacting the business of insurance by assuming risk through the issuance of insurance policies, reinsurance contracts, or both, and accepting premium, whether direct, assumed via reinsurance, or both, the nonrefundable license fee payable under 36 O.S. §6470.35(C)(3). The minimum Five Thousand Dollars ($5,000.00) payable under 36 O.S. § 6470.19(D) shall become applicable for the sixth year of dormancy and for every year of dormancy thereafter.

(c) A dormant captive insurance company which has been issued a certificate of dormancy shall:

(1) possess and thereafter maintain unimpaired, paid-in capital and surplus of not less than Twenty-five thousand dollars ($25,000.00);

(2) prior to March 1 of each year, submit to the Commissioner a report of its financial condition, verified by oath of two of its executive officers, in a form as may be prescribed by the Commissioner; and

(3) pay a license renewal fee as provided in 36 O.S. § 6470.3.

(d) A dormant captive insurance company shall not be subject to or liable for the payment of any premium tax for the initial five (5) year period of dormancy.

(e) A dormant captive insurance company shall apply to the Commissioner for approval to surrender its certificate of dormancy and resume conducting the business of insurance prior to issuing any insurance policies.

(f) A certificate of dormancy shall be revoked if a dormant captive insurance company no longer meets the criteria of paragraph (a) of this Section.

(g) The Commissioner may establish guidelines and procedures as necessary to carry out the provisions of this section.

Okla. Admin. Code § 365:25-15-23

Adopted by Oklahoma Register, Volume 32, Issue 24, September 1, 2015, eff. 9/15/2015

Amended by Oklahoma Register, Volume 38, Issue 23, August 16, 2021, eff. 11/1/2021

Amended by Oklahoma Register, Volume 39, Issue 24, September 1, 2022, eff. 9/11/2022