SB 1488 Summary

• Establishes a new certification process for reinsurers in Oklahoma, requiring certified reinsurers to be domiciled in qualified jurisdictions, maintain specified financial strength ratings, and comply with capital and surplus requirements determined by the Insurance Commissioner.

• Creates standards for accredited and certified reinsurers, including requirements for financial capacity demonstration, maintenance of trust funds, and secured obligations for United States ceding insurers.

• Authorizes associations of incorporated and unincorporated underwriters to become certified reinsurers if they satisfy minimum capital and surplus requirements through joint central funds and provide annual solvency certifications.

• Requires the Insurance Commissioner to publish a list of qualified jurisdictions for eligible reinsurers and permits suspension or revocation of reinsurer certification when requirements are no longer met, with notice and hearing procedures.

• Mandates ceding insurers to manage reinsurance concentration risk by notifying the Commissioner within 30 days when reinsurance recoverables from single or affiliated assuming insurers exceed 50% of surplus, and to diversify reinsurance programs when ceding more than 20% of gross written premium to any single or affiliated assuming insurer.

• Effective November 1, 2016.