The bill amends the Oklahoma Captive Insurance Company Act to introduce new definitions and regulatory requirements for captive insurance companies, including the establishment of "agency captive insurance companies," which can only insure risks associated with contracts placed through them. It clarifies the role of the Insurance Commissioner, allowing for the disclosure of information to the National Association of Insurance Commissioners under certain conditions, and mandates timely responses from captive insurance companies to inquiries. Additionally, the bill modifies capital and surplus requirements, reducing the minimum for sponsored captive insurance companies from $500,000 to $100,000, contingent on the Insurance Commissioner's assessment of the company's business plan and risks.

Moreover, the bill establishes a tax structure for captive insurance companies based on their assumed reinsurance premiums, with a minimum tax of $5,000 and a maximum cap of $100,000 for aggregate taxes. It introduces new regulatory requirements for sponsored captive insurance companies, including the need for prior written approval from the Insurance Commissioner for significant actions like mergers or dissolutions, and mandates separate maintenance of financial records for each protected cell. The legislation aims to enhance regulatory oversight, ensure financial integrity, and clarify operational procedures for captive insurance companies in Oklahoma, with an effective date of November 1, 2026.

Statutes affected:
Introduced: 36-6470.2, 36-6470.3, 36-6470.10, 36-6470.28