{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-1693","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-1693","heading":"Definitions","body":"As used in the Protected Cell Companies Act:\n\n1. \"Commissioner\" means the Oklahoma Insurance Commissioner;\n\n2. \"Domestic insurer\" means an insurance or reinsurance company\n\ndomiciled in the State of Oklahoma or a captive insurance or\n\nreinsurance company domiciled in the State of Oklahoma;\n\n3. \"Fair value\" of an asset or liability means the monetary\n\namount at which that asset or liability could be bought, incurred,\n\nsold or settled in a current transaction between willing parties\n\nother than in a forced or liquidation sale. Quoted market prices in\n\nactive markets are the best evidence of fair value and shall be used\n\nas the basis for the measurement, if available. If a quoted market\n\nprice is available, the fair value is the product of the number of\n\ntrading units times market price. If quoted market prices are not\n\navailable, the estimate of fair value shall be based on the best\n\ninformation available. The estimate of fair value shall consider\n\nprices for similar assets and liabilities and the results of\n\nvaluation techniques to the extent available in the circumstances.\n\nExamples of valuation techniques include the present value of\n\nestimated expected future cash flows using a discount rate\n\ncommensurate with the risks involved, option pricing models, matrix\n\npricing, option-adjusted spread models and fundamental analysis.\n\nValuation techniques for measuring financial assets and liabilities\n\nand servicing assets and liabilities shall be consistent with the\n\nobjective of measuring fair value. Those techniques shall\n\nincorporate assumptions that market participants would use in their\n\nestimates of values, future revenues and future expenses, including\n\nassumptions about interest rates, default, prepayment and\n\nvolatility. When measuring financial liabilities and servicing\n\nliabilities at fair value by discounting estimated future cash\n\nflows, the objective is to use discount rates at which those\n\nliabilities could be settled in an arm's-length transaction.\n\nEstimates of expected future cash flows, if used to estimate fair\n\nvalue, shall be the best estimate based on reasonable and\n\nsupportable assumptions and projections. All available evidence\n\nshall be considered in developing estimates of expected future cash\n\nflows. The weight given to the evidence shall be commensurate with\n\nthe extent to which the evidence can be verified objectively. If a\n\nrange is estimated for the amount or timing of possible cash flows,\n\nthe likelihood of possible outcomes shall be considered in\n\ndetermining the best estimate of future cash flows;\n\n4. \"Fully funded\" means that, with respect to any exposure\n\nattributed to a protected cell, the fair value of the protected cell\n\nassets, on the date on which the insurance securitization is\n\neffected, equals or exceeds the maximum possible exposure\n\nattributable to the protected cell with respect to those exposures;\n\n5. \"General account\" means the assets and liabilities of a\n\nprotected cell company other than protected cell assets and\n\nprotected cell liabilities;\n\n6. \"Indemnity trigger\" means a transaction term by which relief\n\nof the issuer's obligation to repay investors is triggered by the\n\nissuer incurring a specified level of losses under its insurance or\n\nreinsurance contracts;\n\n7. \"Nonindemnity trigger\" means a transaction term by which\n\nrelief of the issuer's obligation to repay investors is triggered\n\nsolely by some event or condition other than the individual\n\nprotected cell company incurring a specified level of losses under\n\nits insurance or reinsurance contracts;\n\n8. \"Protected cell\" means an identified pool of assets and\n\nliabilities of a protected cell company segregated and insulated by\n\nmeans of this act from the remainder of the protected cell company's\n\nassets and liabilities;\n\n9. \"Protected cell account\" means a specifically identified\ned level of losses under\n\nits insurance or reinsurance contracts;\n\n8. \"Protected cell\" means an identified pool of assets and\n\nliabilities of a protected cell company segregated and insulated by\n\nmeans of this act from the remainder of the protected cell company's\n\nassets and liabilities;\n\n9. \"Protected cell account\" means a specifically identified\n\nbank or custodial account established by a protected cell company\n\nfor the purpose of segregating the protected cell assets of one\n\nprotected cell from the protected cell assets of other protected\n\ncells and from the assets of the protected cell company's general\n\naccount;\n\n10. \"Protected cell assets\" means all assets, contract rights\n\nand general intangibles identified with and attributable to a\n\nspecific protected cell of a protected cell company;\n\n11. \"Protected cell company\" means a domestic insurer that has\n\none or more protected cells;\n\n12. \"Protected cell company insurance securitization\" means the\n\nissuance of debt instruments, the proceeds from which support the\n\nexposures attributed to the protected cell, by a protected cell\n\ncompany, where repayment of principal and/or interest to investors\n\npursuant to the transaction terms is contingent upon the occurrence\n\nor nonoccurrence of an event with respect to which the protected\n\ncell company is exposed to loss under insurance or reinsurance\n\ncontracts it has issued;\n\n13. \"Protected cell liabilities\" means all liabilities and\n\nother obligations identified with and attributable to a specific\n\nprotected cell of a protected cell company; and\n\n14. \"Receiver\" means the Commissioner, where the Commissioner\n\nis acting as a rehabilitator, liquidator or administrative\n\nsupervisor of a company, or any person appointed to carry out an\n\norder of rehabilitation or liquidation of a company.","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":"dd1b42faee19932fe547a5501efebd9d6140564970cd899883fb81f272614256","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-1692","next":"us-ok/okla.-stat.-tit.-36-36-1694"},"notice":"GroundRules: Original legal text. Not legal advice."}