Okla. Stat. tit. 36, § 36-6470.30.1

The business written by a sponsored captive insurance company

with respect to each protected cell must be:

1. Fronted by an insurance company licensed pursuant to the

laws of any state or any jurisdiction if the insurance company is a

wholly owned subsidiary of an insurance company licensed pursuant to

the laws of any state;

2. Reinsured by a reinsurer authorized or approved by this

state; or

3. Secured by a trust fund in the United States for the benefit

of policyholders and claimants or funded by an irrevocable letter of

credit or other asset acceptable to the Insurance Commissioner. The

amount of security provided may not be less than the reserves

associated with those liabilities, not fronted or reinsured,

including reserves for losses, allocated loss adjustment expenses,

incurred but unreported losses, and unearned premiums for business

written through the protected cell of the participant. The

Insurance Commissioner may require the sponsored captive to increase

the funding of any security arrangement established pursuant to this

subsection. If the form of security is a letter of credit, the

letter of credit must be established, issued, or confirmed by a

financial institution chartered in this state, a member of the

federal reserve system, or a bank chartered by another state if that

state-chartered bank is acceptable to the Insurance Commissioner. A

trust and trust instrument maintained pursuant to this item must be

in a form and upon terms approved by the Insurance Commissioner.