{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-1632","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-1632","heading":"Subsidiaries of domestic insurers - Permissible","body":"investments.\n\nA. A domestic insurer, either by itself or in cooperation with\n\none or more persons, may organize or acquire one or more\n\nsubsidiaries. The subsidiaries may conduct any kind of business or\n\nbusinesses and their authority to do so shall not be limited by\n\nreason of the fact that they are subsidiaries of a domestic insurer.\n\nB. In addition to investments in common stock, preferred stock,\n\ndebt obligations and other securities permitted under all other\n\nsections of Title 36 of the Oklahoma Statutes, a domestic insurer\n\nmay also:\n\n1. Invest in common stock, preferred stock, debt obligations\n\nand other securities of one or more subsidiaries, amounts which do\n\nnot exceed the lesser of ten percent (10%) of the insurer's assets\n\nor fifty percent (50%) of the insurer's surplus as regards\n\npolicyholders, provided that after such investments the insurer's\n\nsurplus as regards policyholders will be reasonable in relation to\n\nthe insurer's outstanding liabilities and adequate to meet its\n\nfinancial needs. In calculating the amount of such investments,\n\ninvestments in domestic or foreign insurance subsidiaries and any\n\nother entity which provides or arranges for the financing or\n\nprovision of health care services or coverage over which the\n\nCommissioner possesses financial solvency and regulatory oversight\n\nauthority shall be excluded, and there shall be included:\n\na. total net monies or other consideration expended and\n\nobligations assumed in the acquisition or formation of\n\na subsidiary, including all organizational expenses\n\nand contributions to capital and surplus of the\n\nsubsidiary whether or not represented by the purchase\n\nof capital stock or issuance of other securities, and\n\nb. all amounts expended in acquiring additional common\n\nstock, preferred stock, debt obligations and other\n\nsecurities, and all contributions to the capital or\n\nsurplus of a subsidiary subsequent to its acquisition\n\nor formation;\n\n2. Invest any amount in common stock, preferred stock, debt\n\nobligations and other securities of one or more subsidiaries engaged\n\nor organized to engage exclusively in the ownership and management\n\nof assets authorized as investments for the insurer provided that\n\neach subsidiary agrees to limit its investments in any asset so that\n\nsuch investments will not cause the amount of the total investment\n\nof the insurer to exceed any of the investment limitations specified\n\nin paragraph 1 of this subsection or in Sections 1601 through 1629\n\nof Title 36 of the Oklahoma Statutes applicable to the insurer. For\n\nthe purpose of this paragraph, \"the total investment of the insurer\"\n\nshall include:\n\na. any direct investment by the insurer in an asset, and\n\nb. the insurer's proportionate share of any investment in\n\nan asset by any subsidiary of the insurer, which shall\n\nbe calculated by multiplying the amount of the\n\nsubsidiary's investment by the percentage of the\n\nownership of the subsidiary; and\n\n3. With the approval of the Commissioner, invest any greater\n\namount in common stock, preferred stock, debt obligations or other\n\nsecurities of one or more subsidiaries, provided that after the\n\ninvestment the insurer's surplus as regards policyholders will be\n\nreasonable in relation to the insurer's outstanding liabilities and\n\nadequate to its financial needs.\n\nC. Investments in common stock, preferred stock, debt\n\nobligations or other securities of subsidiaries made pursuant to\n\nsubsection B of this section shall not be subject to any of the\n\notherwise applicable restrictions or prohibitions contained in Title\n\n36 of the Oklahoma Statutes applicable to such investments of\n\ninsurers.\n\nD. Whether any investment made pursuant to subsection B of this\n\nsection meets the requirements of that subsection is to be\n\ndetermined before the investment is made, by calculating the\n\napplicable investment limitations as though the investment had\nitions contained in Title\n\n36 of the Oklahoma Statutes applicable to such investments of\n\ninsurers.\n\nD. Whether any investment made pursuant to subsection B of this\n\nsection meets the requirements of that subsection is to be\n\ndetermined before the investment is made, by calculating the\n\napplicable investment limitations as though the investment had\n\nalready been made, taking into account the then outstanding\n\nprincipal balance on all previous investments in debt obligations,\n\nand the value of all previous investments in equity securities as of\n\nthe day they were made, net of any return of capital invested, not\n\nincluding dividends.\n\nE. If an insurer ceases to control a subsidiary, it shall\n\ndispose of any investment therein made pursuant to this section\n\nwithin three (3) years from the time of the cessation of control or\n\nwithin such further time as the Commissioner may prescribe, unless\n\nat any time after the investment shall have been made, the\n\ninvestment shall have met the requirements for investment under any\n\nother section of Title 36 of the Oklahoma Statutes, and the insurer\n\nnotifies the Commissioner.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"378382ac2f492407ba941d381c8018060eedfb9dbf825e2374e2e353d4d66a3a","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-1631","next":"us-ok/okla.-stat.-tit.-36-36-1633"},"notice":"GroundRules: Original legal text. Not legal advice."}