Okla. Stat. tit. 36, § 36-6470.19

A. Each captive insurance company, other than a sponsored

captive insurance company, and each protected cell of a sponsored

captive insurance company, shall pay to the Insurance Department, by

March 1 of each year, a tax at the rate of two-tenths of one percent

(0.2%) on the direct premiums collected or contracted for on

policies or contracts of insurance written by the captive insurance

company during the year ending December 31 next preceding, after

deducting from the direct premiums subject to the tax the amounts

paid to policyholders as return premiums which shall include

dividends on unabsorbed premiums or premium deposits returned or

credited to policyholders up to a maximum tax for such year of One

Hundred Thousand Dollars ($100,000.00); provided however, that no

tax shall be due or payable as to consideration received for annuity

contracts.

B. A captive insurance company, other than a sponsored captive

insurance company, and each protected cell of a sponsored captive

insurance company, shall pay to the Department, by March 1 of each

year, a tax at the rate of one-tenth of one percent (0.1%) of

assumed reinsurance premium. However, no reinsurance tax applies to

premiums for risks or portions of risks which are subject to

taxation on a direct basis pursuant to subsection A of this section.

A premium tax is not payable in connection with the receipt of

assets in exchange for the assumption of loss reserves and other

liabilities of another insurer under common ownership and control if

the transaction is part of a plan to discontinue the operations of

the other insurer and if the intent of the parties to the

transaction is to renew or maintain business with the captive

insurance company.

C. A sponsored captive insurance company shall pay to the

Department, by March 1 of each year, a tax on direct and assumed

Oklahoma Statutes - Title 36. Insurance Page 1225

premiums equal, in the aggregate, to the minimum tax provided in

subsection D of this section.

D. Except as provided in this section for a series captive

insurance company, if the aggregate taxes to be paid by a captive

insurance company or a protected cell of a sponsored captive

insurance company calculated under subsections A and B of this

section amount to less than Five Thousand Dollars ($5,000.00) in any

year, the captive insurance company or protected cell shall pay a

minimum tax of Five Thousand Dollars ($5,000.00) for that year.

However, in the calendar year in which a captive insurance company

is first licensed, or the protected cell is approved by the

Commissioner, the minimum tax will be prorated on a quarterly basis.

For those licensed in the first quarter, the prorated minimum tax is

Five Thousand Dollars ($5,000.00). For those licensed in the second

quarter, the prorated minimum tax is Three Thousand Seven Hundred

Fifty Dollars ($3,750.00). For those licensed in the third quarter,

the prorated minimum tax is Two Thousand Five Hundred Dollars

($2,500.00). For those licensed in the fourth quarter, the prorated

minimum tax is One Thousand Two Hundred Fifty Dollars ($1,250.00).

In the calendar year in which a captive insurance company is first

licensed or the protected cell is first approved by the

Commissioner, if the aggregate taxes to be paid calculated under

subsections A and B of this section amount to less than the minimum

tax prorated on a quarterly basis, the captive or protected cell

shall pay the prorated minimum tax for that calendar year. Each

series captive insurance company shall pay an annual minimum

aggregate tax of Three Thousand Five Hundred Dollars ($3,500.00).

The aggregation of the tax paid by more than one series captive

insurance company formed within a limited liability company or

statutory trust or the corresponding law of another state shall not

be restricted by the annual maximum premium tax limitations

specified in subsections A and B of this section.
l pay an annual minimum

aggregate tax of Three Thousand Five Hundred Dollars ($3,500.00).

The aggregation of the tax paid by more than one series captive

insurance company formed within a limited liability company or

statutory trust or the corresponding law of another state shall not

be restricted by the annual maximum premium tax limitations

specified in subsections A and B of this section.

E. Subject to subsections F, G and H of this section, if the

aggregate taxes on direct and assumed premiums to be paid by a

captive insurance company or a protected cell of a sponsored captive

insurance company calculated under subsections A and B of this

section amount to more than One Hundred Thousand Dollars

($100,000.00) in any year, the captive insurance company, protected

cell of a sponsored captive insurance company or a series captive

insurance company shall pay a maximum tax of One Hundred Thousand

Dollars ($100,000.00) for that year.

F. Two or more captive insurance companies under common

ownership and control must be taxed as though they were a single

captive insurance company. Two or more protected cells of a

sponsored captive insurance company that are related by common

ownership and control must be taxed as though they were a single

protected cell.

Oklahoma Statutes - Title 36. Insurance Page 1226

G. As used in this section, “common ownership and control”

means the direct or indirect ownership of eighty percent (80%) or

more of the outstanding voting stock or other voting interests of

two or more captive insurance companies or protected cells of a

sponsored captive insurance company by the same person or persons.

H. A captive insurance company that has employed twenty-five or

more separate qualified individuals throughout a given tax year and

that otherwise would be liable under this section for tax for such

year in an amount exceeding Fifty Thousand Dollars ($50,000.00)

shall pay to the Insurance Commissioner under this section a tax for

such year in the amount of Fifty Thousand Dollars ($50,000.00). For

purposes of this subsection, “qualified individual” means a natural

person employed in this state on a regular basis of thirty-five (35)

or more hours per week either by such captive insurance company, or

by a wholly-owned subsidiary of such captive insurance company that

provides captive insurance company management, operating, investment

or related services exclusively to such captive insurance company.

I. The tax provided for in this section constitutes all taxes

collectible under the laws of this state from a captive insurance

company or a protected cell of a sponsored captive insurance

company, and no other occupation tax or other taxes may be levied or

collected from a captive insurance company by the state or a county,

city, or municipality within this state, except ad valorem taxes on

real and personal property used in the production of income.

J. For the fiscal year beginning July 1, 2020, and for each

fiscal year thereafter, the Insurance Commissioner shall report and

disburse all fees and taxes collected pursuant to this section as

follows:

1. Of the first Five Hundred Thousand Dollars ($500,000.00):

a. thirty-six percent (36%) to the Oklahoma Firefighters

Pension and Retirement Fund,

b. fourteen percent (14%) to the Oklahoma Police Pension

and Retirement System,

c. five percent (5%) to the Law Enforcement Retirement

Fund, and

d. forty-five percent (45%) to the State Treasury to the

credit of the General Revenue Fund of the state;

2. Of the next Two Hundred Fifty Thousand Dollars

($250,000.00), one hundred percent (100%) to the State Insurance

Commissioner Revolving Fund to be used by the Department for the

purposes of implementing and administering the Oklahoma Captive

Insurance Company Act and any accompanying regulations; and

3. Of all amounts in excess of Seven Hundred Fifty Thousand

Dollars ($750,000.00):
state;

2. Of the next Two Hundred Fifty Thousand Dollars

($250,000.00), one hundred percent (100%) to the State Insurance

Commissioner Revolving Fund to be used by the Department for the

purposes of implementing and administering the Oklahoma Captive

Insurance Company Act and any accompanying regulations; and

3. Of all amounts in excess of Seven Hundred Fifty Thousand

Dollars ($750,000.00):

a. thirty-six percent (36%) to the Oklahoma Firefighters

Pension and Retirement Fund,

Oklahoma Statutes - Title 36. Insurance Page 1227

b. fourteen percent (14%) to the Oklahoma Police Pension

and Retirement System,

c. five percent (5%) to the Law Enforcement Retirement

Fund,

d. fifteen percent (15%) to the State Treasury to the

credit of the General Revenue Fund of the state, and

e. thirty percent (30%) to the State Insurance

Commissioner Revolving Fund to be used by the

Department for the purposes of implementing and

administering the Oklahoma Captive Insurance Company

Act and any accompanying regulations.