ENGROSSED SENATE BILL NO. 700 Summary

• Prohibits captive insurance companies from voluntarily dissolving, transferring assets, incurring material debt, making material loans, paying out capital and surplus, merging, converting business forms, transferring to other jurisdictions, or amending organizational documents without 30 days' prior written notice and Insurance Commissioner approval.

• Requires captive insurance companies to maintain books, records, documents, and accounts in the state and make them available for Commissioner inspection; original records must be preserved in Oklahoma unless Commissioner approves alternative arrangements.

• Allows captive insurance companies to provide excess workers' compensation insurance to parent and affiliated companies and permits reinsurance of workers' compensation for qualified self-insured plans.

• Establishes a maximum tax of $100,000 annually for captive insurance companies and creates employment incentives allowing companies with 25+ qualified Oklahoma employees to pay reduced tax of $50,000.

• Establishes regulations for sponsored captive insurance companies including requirements for separate accounting of protected cells, participant contracts requiring Commissioner approval, and restrictions on asset transfers between cells.

• Effective date: November 1, 2013.