OK SB340

Interlocal Entities organized to transact insurance and insuring Oklahoma educational institutions must have annual audits by independent certified public accountants regardless of premium amount, with audited financial reports filed within 180 days of fiscal year-end.

Annual audited financial reports must include an independent accountant's report, balance sheet, statement of operations, cash flow statement, changes in equity statement, footnotes, and an unqualified opinion on fair presentation in accordance with generally accepted accounting principles.

Entities must file an actuarial opinion prepared by a qualified actuary within 180 days of fiscal year-end certifying the adequacy of reserves for losses, loss adjustment expenses, Incurred But Not Reported (IBNR) claims, and premium adequacy, consistent with Actuarial Standards of Practice.

Qualified actuary is defined as an individual who is a member of the American Academy of Actuaries and meets their Qualification Standards for Actuaries Issuing Statements of Actuarial Opinions in the United States.

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

The act becomes effective November 1, 2015.