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Oklahoma Captive Program Grows 572% In Two Years

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Oklahoma Captive Program Grows

The Oklahoma Captive program added 63 captives in the last two years.   In 2013, Oklahoma had 11 captives.  The explosive growth of captives may be another way that the larger employers looked to reduce costs without going through the opt-out process.

Captive Insurance Division oklahoma captive program emblem from web
(c) oklahomainsurancedepartment

The Oklahoma Insurance Department  (OID) webpage for the Oklahoma Captive program indicates there are currently six kinds of captives allowed in the state-

  1. Association Captive Insurance Company
  2. Branch Captive Insurance Company
  3. Industrial Insured Captive Insurance Company
  4. Pure Captive Insurance Company
  5. Special Purpose Captive Insurance Company – A captive insurance company that is formed or licensed under the Oklahoma Captive Insurance Company Act that does not meet the definition of any other type of captive insurance company defined in this section and is designated as a special purpose captive insurance company by the Commissioner.
  6. Sponsored Captive (Protected Cell) Insurance Company

This spike in growth was attributed to Oklahoma’s captive insurance statutes and regulations having been updated during recent years to encompass the best of modern trends.

The state is now able to offer flexible options for the creation and capitalization of captive insurance companies with low tax rates and fees.   These attributes are similar to other states’ captive programs:

  • Premium Tax Cap of $100,000
  • Low application and licensure fees
  • No in-state annual board meeting requirement
  • No in-state board member requirement
  • No in-state manager requirement
  • 1st year paid in capital and surplus of $150,000 for
    pure captives
  • Optional Provisional Licensure
  • First Dollar and Excess Worker’s Compensation as
    authorized lines

As Oklahoma is an intensive oil-based economy, the oil companies may have and will become captives even with the downturn in the oil markets.

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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