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.
The Oklahoma Insurance Department (OID) webpage for the Oklahoma Captive program indicates there are currently six kinds of captives allowed in the state-
- Association Captive Insurance Company
- Branch Captive Insurance Company
- Industrial Insured Captive Insurance Company
- Pure Captive Insurance Company
- 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.
- 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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