Okla. Stat. tit. 36, § 36-1115

A. Where Oklahoma is the home state of the insured, every

person licensed pursuant to Section 1106 of this title shall collect

and pay as provided in this section a sum for premium tax based on

the total gross premiums charged in connection with any broker-

procured surplus lines insurance, less any return premiums, for

surplus lines insurance sold to the Oklahoma home-state insureds by

the surplus lines broker or licensee.

B. Where Oklahoma is the home state of the insured and the

insurance covers properties, risks or exposures located or to be

Oklahoma Statutes - Title 36. Insurance Page 256

performed both in and out of Oklahoma, the sum payable to the

Oklahoma Insurance Commissioner shall be computed based on an amount

equal to six percent (6%) of the total gross premiums whether the

properties, risks or exposures are located or to be performed inside

or outside Oklahoma. Any such unearned gross premium credited by

the state to the surplus lines broker or licensee shall be returned

to the policyholder by the broker or licensee. The surplus lines

licensee or broker is prohibited from rebating, for any reason, any

part of the tax.

C. Where Oklahoma is the home state of the insured, gross

premiums charged for independently procured insurance, less any

return premiums, are subject to a premium tax at the rate of six

percent (6%) payable to the Oklahoma Insurance Commissioner, whether

the properties, risks or exposures are located or to be performed

inside or outside Oklahoma.

D. The Insurance Commissioner is authorized, in the exercise of

his or her sole discretion and judgment, to participate in the

Nonadmitted Insurance Multi-State Agreement or any other multistate

agreement or compact with the same function and purpose for the

function of collecting and disbursing to reciprocal states any funds

collected pursuant to the Unauthorized Insurers and Surplus Lines

Insurance Act applicable to other properties, risks or exposures

located or to be performed outside of Oklahoma. Until such time as

the Insurance Commissioner may, while not being required to, join

such multistate agreement or compact, premium taxes relating to

Oklahoma home-state insureds shall continue to be paid and accounted

for by nonadmitted insurers through their surplus lines licensees

and brokers as provided in subsections A through C of this section.

E. When the surplus lines coverage of an Oklahoma home-state

insured covers properties, risks or exposures located only in

Oklahoma, the surplus lines licensee or broker or self-procuring

insured shall pay the surplus lines premium tax payable on such

Oklahoma-only risks solely to the Oklahoma Insurance Commissioner.

F. Should the Insurance Commissioner exercise his or her sole

discretion and judgment and decide to join the Nonadmitted Insurance

Multi-State Agreement or any other multistate agreement or compact

with the same function and purpose, the Insurance Commissioner is

authorized in such event to establish a uniform, statewide rate of

taxation applicable to lines of nonadmitted insurance. This rate

shall encompass all existing rates of taxation, fees and assessments

imposed by this state, pursuant to subsections A through C of this

section and the Insurance Commissioner shall document the method by

which the statewide rate is calculated. The Insurance Commissioner

is authorized to receive any monies obtained as premium tax received

through any multistate agreement he or she may in the future in his

or her discretion choose to join and then disburse such funds as

provided by the Insurance Code and other applicable Oklahoma law.

Oklahoma Statutes - Title 36. Insurance Page 257

G. Should the Insurance Commissioner exercise his or her sole

discretion and decide to join the Nonadmitted Insurance Multi-State

Agreement or any other multistate agreement or compact with the same

function and purpose, the Insurance Commissioner is authorized in
such funds as

provided by the Insurance Code and other applicable Oklahoma law.

Oklahoma Statutes - Title 36. Insurance Page 257

G. Should the Insurance Commissioner exercise his or her sole

discretion and decide to join the Nonadmitted Insurance Multi-State

Agreement or any other multistate agreement or compact with the same

function and purpose, the Insurance Commissioner is authorized in

such circumstances to utilize or adopt any allocation schedule

included in the Nonadmitted Insurance Multi-State Agreement or any

other multistate agreement or compact the Insurance Commissioner may

enter in the exercise of his or her sole discretion and judgment

which schedule has the function and purpose of allocating risk and

computing the tax due on the portion of premium attributable to each

risk classification and to each state where properties, risks or

exposures are located.

H. Policies sold to federally recognized Indian tribes shall be

reported as provided in Section 1107 of this title; however, these

policies shall be exempt from the surplus line premium tax to the

extent that the Insurance Commissioner can identify that coverage is

for risks which are wholly owned by a tribe and located within

Indian Country, as defined in Section 1151 of Title 18 of the United

States Code.

I. The surplus line premium tax on insurance on motor transit

operations conducted between this and other states shall be paid on

the total premium charged on all surplus line insurance less:

1. The portion of the premium charged for operations in other

states taxing the premium of an insured where Oklahoma is the home

state; or

2. The premium for operations outside of this state of an

insured maintaining its headquarters office outside of this state

and branch office in this state.

J. Flood insurance policies where Oklahoma is the home state of

the insured and the insurance covers properties, risks or exposures

located in Oklahoma shall be exempt from the surplus line premium

tax.

K. Policies sold to any city or town in this state,

incorporated pursuant to law, or to any school district, as defined

in Section 1-108 of Title 70 of the Oklahoma Statutes, shall be

exempt from the surplus lines premium tax.