OK SB692

Entities organized under the Interlocal Cooperation Act that transact insurance must undergo an annual audit by an independent certified public accountant and file an audited financial report with the Insurance Commissioner within 180 days of fiscal year end.

Required audit reports must include an independent CPA report, balance sheet, statement of operations, statement of cash flows, statement of changes in assets/liabilities/equity, and footnotes to financial statements.

Filing deadline extensions may be granted by the Commissioner for 30-day periods upon written request submitted at least 10 days before the due date with demonstrated good cause.

The Insurance Commissioner may assess fines up to $500 per day for failure to file the required annual audit, and all audited financial reports are subject to public inspection under the Oklahoma Open Records Act.

School district insurance pooling arrangements under interlocal agreements remain exempt from general insurance regulation, except they must now comply with the new audit requirements under Section 607.1.