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Wednesday, December 4, 2013
OKLAHOMA CITY - A new insurance law is expected to boost the Oklahoma economy.
HB 1108, spearheaded by Oklahoma Insurance Commissioner John D. Doak, makes Oklahoma more attractive as a home state to captive insurance companies. Captive insurance companies are an arrangement used by many large to medium-sized businesses to self-insure their own risk. Several Oklahoma businesses own captives, but they are based in other states.
“The captive market is growing rapidly. As a result of this new legislation, Oklahoma is well-positioned to take advantage of that growth,” said Doak. “As the market grows here, we hope to bring some of those Oklahoma companies home. We want them doing business in our state. This means jobs for Oklahoma.”
Beneficial changes to Oklahoma’s captive law include the following:
· Lower premium tax,
· Less restrictive surplus requirements for pure captives,
· Availability of a 60-day provisional license,
· Use of generally accepted accounting principles,
· Ability to hold board meetings outside Oklahoma.
While delivering his paper “Capturing the Captives: The Policy Development and Economic Impact of HB 1108” to the Oklahoma Political Science Association, University of Central Oklahoma Finance Professor Dr. Stuart MacDonald predicted that the new law will attract new insurance companies to Oklahoma and make a positive impact on the state’s economy.
“This includes new jobs in our state, as well as increased capital resources,” said MacDonald.
More information, including an application form, is available on the Captive Insurance section of the Oklahoma Insurance Department’s website, www.oid.ok.gov.
About the Oklahoma Insurance Department
The Oklahoma Insurance Department, an agency of the State of Oklahoma, is responsible for the education and protection of the insurance-buying public and for oversight of the insurance industry in the state.
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