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.
Added at 36 Ok Reg 1927, eff 9-15-19
Amended at 41 Ok Reg, Number 22, effective 8-11-24