HB 1108 Summary

• Amends the Oklahoma Captive Insurance Company Act to expand permitted business activities, including allowing captive insurance companies to provide excess workers' compensation insurance to parent and affiliated companies.

• Modifies organizational requirements by removing the mandated number of incorporators and allowing formation as stock corporations, nonstock corporations, limited liability companies, partnerships, or other lawful forms approved by the Insurance Commissioner.

• Establishes new requirements for captive insurance companies to obtain prior Insurance Commissioner approval for voluntary actions including dissolution, asset transfers, mergers, and material indebtedness, with 30 days' notice.

• Allows sponsored captive insurance companies to combine assets of protected cells for investment purposes while maintaining required asset segregation, and permits protected cells to be fronted, reinsured, or secured by trust funds.

• Increases minimum capital and surplus requirements for various captive types (pure captives to $250,000, association captives to $750,000, industrial insured captives to $500,000) and modifies the tax structure to a flat 0.2% on direct premiums with a $100,000 annual cap.