{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-1695","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-1695","heading":"Assets and liabilities of protected cells – Protected","body":"cell income – Insurance securitization.\n\nA. The protected cell assets of any protected cell shall not be\n\ncharged with liabilities arising out of any other business the\n\nprotected cell company may conduct. All contracts or other\n\ndocumentation reflecting protected cell liabilities shall clearly\n\nindicate that only the protected cell assets are available for the\n\nsatisfaction of those protected cell liabilities.\n\nB. Unless otherwise approved by the Insurance Commissioner,\n\nassets attributed to a protected cell shall be valued at their fair\n\nvalue on the date of valuation.\n\nC. The income, gains and losses, realized or unrealized, from\n\nprotected cell assets and protected cell liabilities shall be\n\ncredited to or charged against the protected cell without regard to\n\nother income, gains or losses of the protected cell company,\n\nincluding income, gains or losses of other protected cells. Amounts\n\nattributed to any protected cell and accumulations on the attributed\n\namounts may be invested and reinvested without regard to any\n\nrequirements or limitations imposed on investments of insurance\n\ncompanies domiciled in this state and the investments in any\n\nprotected cell or cells may not be taken into account in applying\n\nthe investment limitations otherwise applicable to the investments\n\nof the protected cell company, subject to any restrictions that may\n\nbe imposed by the Commissioner in accordance with Section 9 of this\n\nact.\n\nD. As permitted by the Commissioner, a protected cell company\n\nmay, in respect of any of its protected cells, engage in fully\n\nfunded indemnity triggered and/or fully funded nonindemnity\n\ntriggered insurance securitization to support in full the protected\n\ncell exposures attributable to that protected cell. A protected\n\ncell company insurance securitization that is nonindemnity triggered\n\nshall qualify as an insurance securitization under the terms of this\n\nsection only after the Commissioner, in accordance with the\n\nauthority granted under Section 9 of this act, adopts regulations\n\naddressing the methods of funding of the portion of the risk that is\n\nnot indemnity-based, accounting, disclosure, risk-based capital\n\ntreatment, and assessing risks associated with those\n\nsecuritizations. A protected cell company insurance securitization\n\nthat is not fully funded, whether indemnity triggered or\n\nnonindemnity triggered, is prohibited. Protected cell assets may be\n\nused to pay interest or other consideration on any outstanding debt\n\nor other obligation attributable to that protected cell, and nothing\n\nin this section shall be construed or interpreted as preventing a\n\nprotected cell company from entering into a swap agreement or other\n\ntransaction for the account of the protected cell that has the\n\neffect of guaranteeing that interest or other consideration.\n\nE. In all protected cell company insurance securitizations, the\n\ncontracts or other documentation effecting the transaction shall\n\ncontain provisions identifying the protected cell to which the\n\ntransaction will be attributed. In addition, the contracts or other\n\ndocumentation shall clearly disclose that the assets of that\n\nprotected cell, and only those assets, are available to pay the\n\nobligations of that protected cell. Notwithstanding the foregoing,\n\nand subject to the provisions of this title and any other applicable\n\nlaw or rules, the failure to include that language in the contracts\n\nor other documentation shall not be used as the sole basis by\n\ncreditors, reinsurers or other claimants to circumvent the\n\nprovisions of this section.\n\nF. At the cessation of business of a protected cell, and in\n\nabsence of any placement under administrative supervision or order\n\nof conservation, rehabilitation or liquidation attributable to that\n\nprotected cell or the protected cell company, the protected cell\n\ncompany shall voluntarily close out the protected cell account in\ners or other claimants to circumvent the\n\nprovisions of this section.\n\nF. At the cessation of business of a protected cell, and in\n\nabsence of any placement under administrative supervision or order\n\nof conservation, rehabilitation or liquidation attributable to that\n\nprotected cell or the protected cell company, the protected cell\n\ncompany shall voluntarily close out the protected cell account in\n\naccordance with a plan approved by the Commissioner.\n\nG. A protected cell company shall only be authorized to\n\nattribute to a protected cell account the insurance obligations\n\nrelating to the protected cell company's general account. Under no\n\ncircumstances shall a protected cell be authorized to issue\n\ninsurance or reinsurance contracts directly to policyholders or\n\nreinsureds or have any obligation to the policyholders or reinsureds\n\nof the protected cell company's general account.","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":"0b633877d3f6403b6d568479bcfababe3f2cba792d090d9382dec2789b44a699","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-1694","next":"us-ok/okla.-stat.-tit.-36-36-1696"},"notice":"GroundRules: Original legal text. Not legal advice."}