CAPTIVE INSURANCE NOTICE 2020-01
TO: All Licensed Captive Insurers, Captive Managers, Auditors, Actuaries Licensed in Oklahoma
RE: Reduction of Required Capital for Certain Special Purpose Captive Insurance Companies;
DATE: August 20, 2020
The purpose of this Notice is to advise all participants in the captive insurance industry that the Oklahoma Insurance Department (OID), pursuant to 36 O.S. § 6470.20 and 6470.34 has determined that on and after September 16, 2020, The capitalization requirement for certain special purpose captive insurers shall be $50,000.
This reduction in the minimum capital and surplus is available only to those special-purpose captive insurers organized as a “Series” pursuant to 18 O.S. § 2054.4 and which:
- Does not accept or receive direct or assumed risk
- Does not issue any form of insurance contract
- Insures the risks of its participants only through separate participant contracts, and
- Funds its liability to each participant through one or more protected cells and segregates the assets and liabilities of each protected cell from the assets and liabilities of other protected cells and from the assets of the SPV insurance company’s general account
Written application for this reduction is required and shall be directed to the Captive Division. If such reduction allowance is approved, the reduction will be documented by a company-specific Order.
This Bulletin shall be effective immediately and shall remain in effect unless withdrawn or superseded by subsequent law, regulation or bulletin.
1 An Oklahoma series is a form of business organization and can be licensed as a series captive insurance company, pure captive, agency captive, or as other forms of captive insurance company.