Interlocal entities collecting or receiving premiums or contributions of any amount for any kind of insurance from Oklahoma educational institutions is required to file audited financial statements annually with the Insurance Commissioner.
Disclaimer: The following is an overview of the laws pertaining to Interlocals. Refer to the Oklahoma Statutes published on the OSCN webpage to research all of the regulations regarding Interlocals.
Regulations: 36 O.S. 607.1 and 70 O.S. 5-117
The required information is subject to the Oklahoma Open Records Act and will be posted on our webpage for public inspection.
An entity organized pursuant to the Interlocal Cooperation Act that insures an Oklahoma educational institution and has within a twelve-month period received premiums or contributions of any amount for any kind of insurance that the Interlocal Entity transacts, is required to have an annual audit by an independent certified public accountant and file the audited financial report with the Insurance Commissioner within one hundred eighty (180) days immediately following the close of the Interlocal Entity’s fiscal year.
The audited financial statement must include:
- The report of an independent certified public accountant in accordance with accounting principles generally accepted in the United States of America;
- A balance sheet reporting assets, liabilities and equity;
- A statement of operations;
- A statement of cash flows;
- A statement of changes in assets, liabilities and equity; and
- Footnotes to financial statements.
- An unqualified opinion from the certified public accountant that the audited financial report represents a fair presentation of the Interlocal Entity’s financial position in conformity with accounting principles generally accepted in the United States of America.
- An actuarial opinion prepared by a *qualified actuary within one hundred eighty (180) days immediately following the close of the Interlocal Entity’s fiscal year. The actuarial opinion should certify the amount and adequacy of the Interlocal Entity’s reserves for loss and loss adjustment expenses, including amounts for Incurred But Not Reported (IBNR) Claims, and the adequacy of the Interlocal Entity’s premiums. The actuarial opinion shall be consistent with the appropriate Actuarial Standards of Practice (ASOP) as promulgated by the Actuarial Standards Board.
*Qualified actuary” means an individual who is a member of the American Academy of Actuaries and who has met the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinions in the United States promulgated by the American Academy of Actuaries.”
Failure to file the required information prior to the due date may result in a $500 per day fine.
Extension: The entity may request an extension by submitting a written request at least 10 days prior to the due date. Provide an explanation for the extension in the request. The request may be emailed to RIS@oid.ok.gov . We will review the request for good cause then respond via email with the decision.
Effective November 1, 2021, 36 O.S. 607.1 is amended to allow a process in which if the Insurance Commissioner has reason to believe that any insurer subject to this section is insolvent, or if any such insurer’s condition is such as to render the continuance of its business hazardous to the public or to holders of its policies or certificates of insurance, or it has exceeded its power, or it has failed to comply with the law, or if such insurer gives its consent the Commissioner will take the following actions:
- Notify the insurer and its participating members of the Commissioner’s determination
- Require the insurer to file with the Department a written plan of action to abate the Commissioner’s determination within thirty (30) days of notification; and
- Notify the insurer if the Commissioner makes a further determination to supervise pursuant to this section of law
An insurer subject to this section shall comply with the lawful requirements and, if placed under supervision, shall have ninety (90) days from the date of notice, within which to comply with the requirements of the Commissioner unless the Commissioner designates a lesser or greater period of time or unless the Commissioner determines at any time during or after the ninety-day period of time that judicial or administrative proceedings should be initiated to place such insurer in conservation, rehabilitation, or liquidation proceedings or other delinquency proceedings as allowed by law.