FOR IMMEDIATE RELEASE:
November 26, 2019
Commissioner Mulready Becomes the First Commissioner in the Country to Approve an IBT
OKLAHOMA CITY – On Tuesday, November 26, 2019, Oklahoma Insurance Commissioner Glen Mulready issued an order authorizing Providence Washington Insurance Company (PWIC), a Rhode Island-based insurance company, to submit its Insurance Business Transfer (IBT) Plan to the District Court of Oklahoma County for approval. This is the first IBT approved by an insurance commissioner in the United States.
If approved by the Court, the IBT would transfer nearly all of the insurance and reinsurance business underwritten by PWIC to Yosemite Insurance Company, an insurance company in Oklahoma. The transfer would include the liabilities associated with those policies as well as $38.5 million from PWIC to Yosemite as consideration for assuming those liabilities.
The application filed by PWIC and reviewed by the Commissioner and department staff includes the IBT Plan, extensive financial documents and a plan for how the transaction will be communicated to policyholders and other interested parties. It also includes a report from an independent expert who concluded that the policyholders and claimants of both companies will not have a materially adverse effect by the proposed transaction.
“This is a big accomplishment for us,” Commissioner Mulready said. “We expect the IBT to bring tremendous opportunities to Oklahoma—more jobs to the state, more options for consumers and a more competitive environment for insurers. ”
Oklahoma’s IBT law became effective in November 2018 and is the most expansive such law in the country. The Oklahoma process closely mirrors Part VII of the Financial Services & Markets Act of 2000 in the United Kingdom, which has resulted in nearly 300 successful transfers. This cutting edge mechanism focuses on the protection of consumers while allowing insurance companies to strategically deploy assets to their areas of focus.
If you have questions about other insurance issues, contact the Oklahoma Insurance Department at 1-800-522-0071 or visit our website at www.oid.ok.gov.
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