1. A. The Insurance Commissioner may not issue a license to a captive insurance company unless the company possesses and thereafter maintains free surplus of:

   1. 1. In the case of a pure captive insurance company, not less than One Hundred Fifty Thousand Dollars ($150,000.00);
   2. 2. In the case of an association captive insurance company incorporated as a stock insurer, not less than Three Hundred Fifty Thousand Dollars ($350,000.00);
   3. 3. In the case of an industrial insured captive insurance company incorporated as a stock insurer, not less than Three Hundred Thousand Dollars ($300,000.00);
   4. 4. In the case of an association captive insurance company incorporated as a mutual insurer, not less than Seven Hundred Fifty Thousand Dollars ($750,000.00);
   5. 5. In the case of an industrial insured captive insurance company incorporated as a mutual insurer, not less than Five Hundred Thousand Dollars ($500,000.00);
   6. 6. In the case of a sponsored captive insurance company, not less than Five Hundred Thousand Dollars ($500,000.00); and

   7. 7. In the case of a special purpose captive insurance company, an amount determined by the Insurance Commissioner after giving due consideration to the business plan of the company, feasibility study, and pro formas, including the nature of the risks to be insured.

      The surplus may be in the form of cash, cash equivalent, or an irrevocable letter of credit issued by a bank chartered by this state or a member bank of the Federal Reserve System and approved by the Insurance Commissioner.

2. B. Notwithstanding the requirements of subsection A of this section, a captive insurance company organized as a reciprocal insurer under the Oklahoma Captive Insurance Company Act may not be issued a license unless it possesses and thereafter maintains free surplus of One Million Dollars ($1,000,000.00).
3. C. The Insurance Commissioner may prescribe additional surplus based upon the type, volume, and nature of insurance business transacted. This capital may be in the form of an irrevocable letter of credit issued by a bank chartered by this state, or a member bank of the Federal Reserve System.
4. D. A captive insurance company may not pay a dividend out of, or other distribution with respect to, capital or surplus in excess of the limitations set forth in the Oklahoma Insurance Code without the prior approval of the Insurance Commissioner. Approval of an ongoing plan for the payment of dividends or other distribution must be conditioned upon the retention, at the time of each payment, of capital or surplus in excess of amounts specified by, or determined in accordance with formulas approved by, the Insurance Commissioner.

Added by Laws 2004, HB 2141, c. 334, § 15, emerg. eff. May 25, 2004.