{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-1694","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-1694","heading":"Establishment of protected cells – Plan of operation","body":"A. A protected cell company may establish one or more protected\n\ncells, with the prior written approval of the Insurance Commissioner\n\nof a plan of operation or amendments to a plan of operation\n\nsubmitted by the protected cell company with respect to each\n\nprotected cell. Upon the written approval of the Commissioner of\n\nthe plan of operation or amendments to a plan of operation, which\n\nshall include, but not be limited to, the specific business\n\nobjectives and investment guidelines of the protected cell, the\n\nprotected cell company may, in accordance with the approved plan of\n\noperations, attribute to the protected cell amounts both reflective\n\nof insurance obligations with respect to its insurance business and\n\nobligations relating to the insurance securitization and assets to\n\nfund the obligations. Each protected cell of a protected cell\n\ncompany shall have its own distinct name or designation, which shall\n\ninclude the words \"protected cell\". The protected cell company\n\nshall transfer all assets attributable to each protected cell to one\n\nor more separately established and identified protected cell\n\naccounts bearing the name or designation of that protected cell.\n\nProtected cell assets shall be held in the protected cell accounts\n\nfor the purpose of satisfying the obligations of that protected\n\ncell.\n\nB. All attributions of assets and liabilities between a\n\nprotected cell and the general account shall be in accordance with\n\nthe plan of operation approved by the Commissioner or shall be\n\notherwise approved by the Commissioner. Unless otherwise approved\n\nby the Commissioner, no other attribution of assets or liabilities\n\nshall be made by a protected cell company between the protected cell\n\ncompany's general account and one or more of its protected cells.\n\nAny attribution of assets and liabilities between the general\n\naccount and a protected cell, or from investors in the form of\n\nprincipal on a debt instrument issued by a protected cell company in\n\nconnection with a protected cell company securitization, shall be in\n\ncash or readily marketable securities with established market values\n\nunless otherwise approved in advance in writing by the Commissioner.\n\nC. The creation of a protected cell does not create, in respect\n\nof that protected cell, a legal person separate from the protected\n\ncell company. Amounts attributed to a protected cell under this\n\nact, including assets transferred to a protected cell account, are\n\nowned by the protected cell company and the protected cell company\n\nmay not be, nor hold itself out to be, a trustee with respect to\n\nthose protected cell assets of that protected cell account.\n\nNotwithstanding the foregoing, the protected cell company may allow\n\nfor a security interest to attach to protected cell assets or a\n\nprotected cell account when in favor of a creditor of the protected\n\ncell and otherwise allowed under applicable law.\n\nD. Nothing in the Protected Cell Companies Act shall be\n\nconstrued to prohibit the protected cell company from contracting\n\nwith or arranging for an investment advisor, commodity trading\n\nadvisor or other third party to manage the protected cell assets of\n\na protected cell, provided that all remuneration, expenses and other\n\ncompensation of the third-party advisor or manager are payable from\n\nthe protected cell assets of that protected cell and not from the\n\nprotected cell assets of other protected cells or the assets of the\n\nprotected cell company's general account. The contract shall\n\nclearly reference the protected cell or cells for which the contract\n\nhas been arranged and shall contain a nonrecourse provision in favor\n\nof the company that prohibits the contracting party from seeking\n\nrecourse against, or attaching the assets of the general account, or\n\nthe assets of another protected cell, to satisfy the obligations of\n\nany one or more protected cells which are the subject of the\n\ncontract.\ne the protected cell or cells for which the contract\n\nhas been arranged and shall contain a nonrecourse provision in favor\n\nof the company that prohibits the contracting party from seeking\n\nrecourse against, or attaching the assets of the general account, or\n\nthe assets of another protected cell, to satisfy the obligations of\n\nany one or more protected cells which are the subject of the\n\ncontract.\n\nE. A protected cell company shall establish any administrative\n\nand accounting procedures that are necessary to properly identify\n\nthe one or more protected cells of the protected cell company and\n\nthe protected cell assets and protected cell liabilities\n\nattributable to the protected cells. It shall be the duty of the\n\ndirectors of a protected cell company to:\n\n1. Keep protected cell assets and protected cell liabilities\n\nseparate and separately identifiable from the assets and liabilities\n\nof the protected cell company's general account; and\n\n2. Keep protected cell assets and protected cell liabilities\n\nattributable to one protected cell separated and separately\n\nidentifiable from protected cell assets and protected cell\n\nliabilities attributable to other protected cells.\n\nNotwithstanding other provisions of this section, if this\n\nsection is violated, the remedy of tracing shall be applicable to\n\nprotected cell assets when commingled with protected cell assets of\n\nother protected cells or the assets of the protected cell company's\n\ngeneral account. The remedy of tracing shall not be construed as an\n\nexclusive remedy.\n\nF. Unless otherwise approved by the Commissioner, the protected\n\ncell company shall, when establishing a protected cell, attribute\n\nthe protected cell assets a value at least equal to the reserves and\n\nother insurance liabilities attributed to that protected cell.","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":"c3fb32354f977a0e96644d9f15dffe2b0dfe3cca270bacc63448b943a8270b86","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-1693","next":"us-ok/okla.-stat.-tit.-36-36-1695"},"notice":"GroundRules: Original legal text. Not legal advice."}