Thanks to a surge in captive formations, Oklahoma's captive count has risen. In 2022, 11 new captives were licensed in Oklahoma, bringing, after 4 dissolutions, the total captive count to 52, up from 45 in 2021.
And that growth is continuing. "I am not only pleased with 2022's growth. but to date in 2023, Oklahoma has already issued three additional captive insurance licenses," said Oklahoma Insurance Commissioner Glen Mulready.
"Our Captive Insurance Division's dedication and efficient regulation of captive insurance companies have helped raise awareness about captive insurance in Oklahoma. We look forward to continuing this momentum and expanding our efforts in 2023," said Oklahoma Insurance Department Captive Insurance Director Steve Kinion.
In addition, Oklahoma's captive statute has many appealing features, Mr. Mulready noted.
For example, while single-parent captives have to maintain at least $250,000 in capital and surplus, only $150,000 has to be contributed at the time the captive is being licensed, with the remaining $100,000 to be paid on or before the first anniversary of the issuance of the initial license.
Capital and surplus requirements for other captives include $250,000 for branch captives, $500,000 for sponsored captives, $750,000 for trade association captives, and $1 million for risk retention groups.
The tax rate on direct premiums is .2 percent of 1 percent, with annual captive premium taxes capped at $100,000. A $5,000 minimum annual premium tax is assessed.
Unlike many other domiciles, Oklahoma does not require captive insurance companies to have annual in-state meetings, and a captive's manager does not have to be based in the state.
Any change in a captive's business from what is stated in its plan of business filed with the Oklahoma insurance commissioner requires prior approval by the commissioner.
Captives also are required to file with the insurance commissioner annual financial reports, verified by two of their financial officers, by March 1.
Oklahoma teams up every year with the Missouri, Nevada, and Utah captive associations to host the Western Region Captive Insurance Conference (WRCIC).
The next conference is scheduled for April 15–17, 2024, at the Tulsa Club in Tulsa, Oklahoma. For more information about the conference, contact the WRCIC at (775) 283–4237, or email at [email protected].
