Okla. Admin. Code § 365:25-15-1.1

Current through Vol. 42, No. 8, January 2, 2025

Section 365:25-15-1.1 - Definitions

The following words and terms, when used in this subchapter and the Oklahoma Captive Insurance Company Act, shall have the following meaning, unless the context clearly indicates otherwise:

"Business plan" means the business activity of the company designed to accomplish its stated purpose. At a minimum, it must include the following:

(A) identity of the ownership and management;

(B) the type and expected volume of business to be written;

(C) details of any reinsurance agreements to be entered into;

(D) details of any management services or tax allocation agreements; and

(E) financial projections as required per subsection (a)(1)(G) above.

"Feasibility study" means an analysis of the owner/insured's risk profile and financial condition. The analysis must include and consider the following issues, but is not limited to:

(A) a detailed analysis as to how the captive will effect risk management and loss control;

(B) risks to be insured;

(C) recommendations and projections by a qualified independent actuary or any other person approved by the Commissioner of recommended premiums, losses, expenses and retentions;

(D) tax projections;

(E) domicile options that address the impact on operating costs and tax issues;

(F) comparison of a captive program with other viable risk financing alternatives;

(G) five-year pro forma financial statements and projections, analysis of the financial impact of establishing a captive, of any form; and

(H) identification of management procedures, underwriting procedures, managerial oversight methods, investment policies, and reinsurance agreements.

Okla. Admin. Code § 365:25-15-1.1

Adopted by Oklahoma Register, Volume 36, Issue 24, September 3, 2019, eff. 9/15/2019

Amended by Oklahoma Register, Volume 41, Issue 22, August 1, 2024, eff. 8/11/2024