Okla. Stat. tit. 36, § 36-639

Quarterly financial statements - Penalties.

A. Every MEWA shall, within ninety (90) days after the end of

each fiscal year of the MEWA, or within any such extension of time

that the Insurance Commissioner for good cause grants, file a report

with the Commissioner, on forms acceptable to the Commissioner and

verified by the oath of a member of the board of trustees or chief

executive officer of any governing association and by the

administrator of the MEWA, showing its financial condition on the

last day of the preceding fiscal year. The report shall contain an

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audited financial statement of the MEWA prepared in accordance with

generally accepted accounting principles, including its balance

sheet and a statement of the operations for the preceding fiscal

year certified by an independent accounting firm or independent

individual holding a permit to practice certified public accounting

in this state. The report shall also include an analysis of the

adequacy of reserves and contributions or premiums charged, based on

a review of past and projected claims and expenses.

B. In conjunction with the annual report required in subsection

A of this section, the MEWA shall submit an actuarial certification

prepared by a qualified independent actuary that indicates:

1. The MEWA is actuarially sound, with the certification

considering the rates, benefits, and expenses of, and any other

funds available for the payment of obligations of the MEWA;

2. The rates being charged and to be charged for contracts are

actuarially adequate to the end of the period for which rates have

been guaranteed;

3. The recommended amount of cash reserves the MEWA should

maintain, which shall not be less than the greater of twenty percent

(20%) of the total contributions in the preceding plan year or

twenty percent (20%) of the total estimated contributions for the

current plan year. The cash reserves shall be calculated with

proper actuarial regard for known claims, paid and outstanding, a

history of incurred but not reported claims, claims handling

expenses, unearned premiums, a trend factor, and a margin for error.

Cash reserves required by this section shall be maintained in cash

or federally guaranteed obligations of less than five-year maturity

that have a fixed or recoverable principal amount or such other

investments as the Commissioner may authorize by rule;

4. Whether amounts reserved to cover the cost of health care

benefits are:

a. calculated in accordance with the loss reserving

standards that would be applicable to a private

insurance company writing the same coverage,

b. computed in accordance with accepted loss reserving

standards, including a reserve for Incurred But Not

Reported Claims (IBNR), and

c. fairly stated in accordance with sound loss reserving

standards;

5. The recommended level of specific and aggregate stop-loss

insurance that the MEWA should maintain and whether the MEWA is

funding at the aggregate retention plus all other costs of the MEWA;

and

6. Such other information relating to the performance of the

MEWA that is reasonably required by the Commissioner.

C. The MEWA shall send an annual report to all of the

employers, describing the financial condition of the MEWA as of the

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end of the last fiscal year. The report must be sent at the same

time as the filing of the annual statement of the MEWA.

D. The Commissioner may require a MEWA to file quarterly,

within forty-five (45) days after the end of each of the remaining

fiscal quarters, a financial statement on a form prescribed by the

Commissioner, verified by the oath of a member of the board of

trustees and an administrator of the MEWA, showing its financial

condition on the last day of the preceding quarter and the statement

of a qualified actuary setting forth the actuary's opinion relating
hin forty-five (45) days after the end of each of the remaining

fiscal quarters, a financial statement on a form prescribed by the

Commissioner, verified by the oath of a member of the board of

trustees and an administrator of the MEWA, showing its financial

condition on the last day of the preceding quarter and the statement

of a qualified actuary setting forth the actuary's opinion relating

to the level of cash reserves in accordance with paragraphs 3 and 4

of subsection B of this section.

E. Any MEWA that fails to file a report as required by this

section is subject to Section 311 of this title; and, after notice

and opportunity for hearing, the Commissioner may suspend the MEWA's

authority to enroll new insureds or to do business in this state

while the failure continues.