Okla. Stat. tit. 36, § 36-6470.2

As used in the Oklahoma Captive Insurance Company Act:

1. "Alien company" means an insurance company formed and

licensed pursuant to the laws of a country or jurisdiction other

than the United States of America, or any of its states, districts,

commonwealths and possessions;

2. "Affiliated company" means a company in the same corporate

system as a parent, an industrial insured, or a member organization

by virtue of common ownership, control, operation, or management;

3. "Association" means a legal association of individuals,

corporations, partnerships, or associations that has been in

continuous existence for at least one (1) year or such lesser period

of time approved by the Commissioner:

a. the member organizations of which, or which does

itself or either of them acting in concert directly or

indirectly own, control, or hold with power to vote

all of the outstanding voting securities or interests

of, or have complete voting control over an

association captive insurance company, or

b. the member organizations of which collectively

constitute all of the subscribers of an association

captive insurance company formed as a reciprocal

insurer;

4. "Association captive insurance company" means a captive

insurance company that insures risks of the member organizations of

the association and their affiliated companies;

5. "Branch business" means any insurance business transacted by

a branch captive insurance company in this state;

6. "Branch captive insurance company" means an alien captive

insurance company licensed by the Insurance Commissioner to transact

the business of insurance in this state through a business unit with

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a principal place of business in this state. A branch captive

insurance company must be a pure captive insurance company with

respect to operations in this state, unless otherwise permitted by

the Insurance Commissioner;

7. "Branch operations" means any business operations of a

branch captive insurance company in this state;

8. "Capital and surplus" means the amount by which the value of

all of the assets of the captive insurance company exceeds all of

the liabilities of the captive insurance company, as determined

under the method of accounting utilized by the captive insurance

company in accordance with the applicable provisions of this act;

9. "Captive insurance company" means a pure captive insurance

company, association captive insurance company, sponsored captive

insurance company, special purpose captive insurance company,

industrial insured captive insurance company, branch captive

insurance company, or series captive insurance company formed or

licensed under the Oklahoma Captive Insurance Company Act;

10. "Controlled unaffiliated business" means a company:

a. that is not in the corporate system of a parent and

affiliated companies,

b. that has an existing contractual relationship with a

parent or affiliated company, and

c. whose risks are managed by a pure captive insurance

company in accordance with Section 6470.27 of this

title;

11. "Insurance Commissioner" means the Insurance Commissioner

of this state or designee of the Insurance Commissioner;

12. "Department" means the Insurance Department;

13. "GAAP" means generally accepted accounting principles;

14. "Industrial insured" means an insured:

a. who procures the insurance of any risk or risks by use

of the services of a full-time employee acting as an

insurance manager or buyer,

b. whose aggregate annual premiums for insurance on all

risks total at least Twenty-five Thousand Dollars

($25,000.00), and

c. who has at least twenty-five full-time employees;

15. "Industrial insured captive insurance company" means a

company that insures risks of the industrial insureds that comprise

the industrial insured group and their affiliated companies;

16. "Industrial insured group" means a group of industrial
iums for insurance on all

risks total at least Twenty-five Thousand Dollars

($25,000.00), and

c. who has at least twenty-five full-time employees;

15. "Industrial insured captive insurance company" means a

company that insures risks of the industrial insureds that comprise

the industrial insured group and their affiliated companies;

16. "Industrial insured group" means a group of industrial

insureds that collectively directly or indirectly owns, controls, or

holds with power to vote all of the outstanding voting securities or

other voting interests or has complete control over an industrial

insured captive insurance company;

17. "Member organization" means any individual, corporation,

partnership, or association that belongs to an association;

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18. "Parent" means any corporation, partnership, or individual

that directly or indirectly owns, controls, or holds with power to

vote more than fifty percent (50%) of the outstanding voting

securities of a pure captive insurance company;

19. "Participant" means an entity as defined in Section 6470.31

of this title, and any affiliates of that entity, that are insured

by a sponsored captive insurance company, where the losses of the

participant are limited through a participant contract to the

participant's pro rata share of the assets of one or more protected

cells identified in the participant contract;

20. "Participant contract" means a contract by which a

sponsored captive insurance company insures the risks of one or more

participants and limits the losses of each participant to its pro

rata share of the assets of one or more protected cells identified

in the participant contract;

21. "Protected cell" means a separate and distinct account

established and maintained by or on behalf of a sponsored captive

insurance company in which assets are accounted for and recorded for

one or more participants in accordance with the terms of one or more

participant contracts to fund the liability of the sponsored captive

insurance company assumed on behalf of the participants as set forth

in the participant contracts;

22. "Pure captive insurance company" means a company that

insures risks of its parent, affiliated companies of its parent, and

any controlled unaffiliated business, or a combination thereof. For

purposes of this paragraph, "controlled unaffiliated business" means

an entity insured by a pure captive insurance company:

a. that is not in the corporate system of a parent and

affiliated companies,

b. that has an existing contractual relationship with a

parent or affiliated company, and

c. whose risks are managed by a pure captive insurance

company;

23. "Reciprocal insurer" has the meaning given that term in

Article 29 of the Oklahoma Insurance Code;

24. "Risk retention group" means a risk retention group formed

pursuant to the Liability Risk Retention Act of 1986 under Section

3901 of Title 15 of the United States Code;

25. "Series" means a series of members, managers, membership

interests or assets under the Oklahoma Limited Liability Company Act

pursuant to Section 2054.4 of Title 18 of the Oklahoma Statutes, or

the corresponding law of another state;

26. "Series captive insurance company" means a series which has

received a certificate of authority pursuant to this act;

27. "Special purpose captive insurance company" means a captive

insurance company that is formed or licensed under the Oklahoma

Captive Insurance Company Act that does not meet the definition of

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any other type of captive insurance company defined in this section

and is designated as a special purpose captive insurance company by

the Commissioner;

28. "Sponsor" means an entity that meets the requirements of

Section 6470.30 of this title and is approved by the Insurance

Commissioner to provide all or part of the capital and surplus
of

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any other type of captive insurance company defined in this section

and is designated as a special purpose captive insurance company by

the Commissioner;

28. "Sponsor" means an entity that meets the requirements of

Section 6470.30 of this title and is approved by the Insurance

Commissioner to provide all or part of the capital and surplus

required by applicable law and to organize and operate a sponsored

captive insurance company;

29. "Sponsored captive insurance company" means a captive

insurance company:

a. in which the minimum capital and surplus required by

applicable law is provided by one or more sponsors,

b. that is formed or licensed under the Oklahoma Captive

Insurance Company Act,

c. that insures the risks of its participants only

through separate participant contracts, and

d. that funds its liability to each participant through

one or more protected cells and segregates the assets

of each protected cell from the assets of other

protected cells and from the assets of the sponsored

captive insurance company's general account; and

30. "Workers' compensation insurance" means insurance provided

in satisfaction of an employer's responsibility as set forth in the

Administrative Workers' Compensation Act and the Oklahoma Employee

Injury Benefit Act.