An Interlocal Entity is a group created under the Interlocal Cooperation Act. If this group provides insurance to Oklahoma schools, it is treated like an insurance company.

• It must follow the same rules as insurance companies.
• It must have a certificate (official permission) that allows it to sell insurance in Oklahoma.

Any Interlocal Entity that collects any amount of insurance money from Oklahoma schools must:

• Have a yearly audit by an independent certified public accountant (CPA).
• Send the audit report to the Insurance Commissioner within 180 days after its fiscal year ends.

The audited financial report must include:

• A report from a certified public accountant that follows U.S. accounting rules.
• A balance sheet showing assets, liabilities, and equity.
• A statement of operations (income and expenses).
• A statement of cash flows.
• A statement of changes in assets, liabilities, and equity.
• Footnotes explaining important information.
• An unqualified opinion stating the report is fair and follows accounting rules.

A qualified actuary must also write a report within 180 days after the fiscal year.

This report must confirm:

• The reserves for future claims are enough.
• The premiums charged are correct and adequate.

The actuary must follow official actuarial standards.

If the report is late, the entity may be fined $500 for each day it is overdue.

Entities may request more time if needed. The request must:

• Be submitted at least 10 days before the due date.
• Explain why more time is needed.
• Be emailed to RIS@oid.ok.gov.

Starting Nov. 1, 2021, new rules allow the Commissioner to review entities that may be in financial trouble.

If there is a concern:

• The Commissioner notifies the insurer and its members.
• The insurer must send an action plan within 30 days.
• The Commissioner may place the insurer under supervision.

Audited financial statements and actuarial opinions are public under 36 O.S. § 607.1 and may be viewed through an Open Records Request.

OPEN RECORDS REQUEST