{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-5123","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-5123","heading":"Asset or reduction from liability for ceded reinsurance -","body":"Security\n\nAn asset or a reduction from liability for the reinsurance ceded\n\nby a domestic insurer to an assuming insurer not meeting the\n\nrequirements of Section 5122 of this title shall be allowed in an\n\namount not exceeding the liabilities carried by the ceding insurer;\n\nprovided, further, that the Commissioner may adopt by regulation\n\npursuant to subsection B of Section 5124 of this title, specific\n\nadditional requirements relating to or setting forth: the valuation\n\nof assets or reserve credits, the amount and forms of security\n\nsupporting reinsurance arrangements described in subsection B of\n\nSection 5124 of this title and the circumstances pursuant to which\n\ncredit will be reduced or eliminated. The reduction shall be in the\n\namount of funds held by or on behalf of the ceding insurer including\n\nfunds held in trust for the ceding insurer, under a reinsurance\n\ncontract with the assuming insurer as security for the payment of\n\nobligations thereunder, if the security is held in the United States\n\nsubject to withdrawal solely by, and under the exclusive control of,\n\nthe ceding insurer; or, in the case of a trust, held in a qualified\n\nUnited States financial institution, as defined in subsection B of\n\nSection 5123.1 of this title. This security may be in the form of:\n\n1. Cash;\n\n2. Securities listed by the Securities Valuation Office of the\n\nNational Association of Insurance Commissioners including those\n\ndeemed exempt from filing as defined by the Purposes and Procedures\n\nManual of the Securities Valuation Office and qualifying as admitted\n\nassets;\n\n3. a. Clean, irrevocable, unconditional letters of credit,\n\nissued or confirmed by a qualified United States\n\nfinancial institution, as defined in subsection A of\n\nSection 5123.1 of this title, effective no later than\n\nDecember 31 of the year for which the filing is being\n\nmade, and in the possession of, or in trust for, the\n\nceding insurer on or before the filing date of its\n\nannual statement.\n\nb. Letters of credit meeting applicable standards of\n\nissuer acceptability as of the dates of their issuance\n\nor confirmation shall, notwithstanding the issuing or\n\nconfirming institution's subsequent failure to meet\n\napplicable standards of issuer acceptability, continue\n\nto be acceptable as security until their expiration,\n\nextension, renewal, modification or amendment,\n\nwhichever first occurs; or\n\n4. Any other form of security acceptable to the Insurance\n\nCommissioner.","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":"551c432f9ce6259db391c3785217aa08424186c27bd9700de0dd3bbd3f028d46","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-5122","next":"us-ok/okla.-stat.-tit.-36-36-5123.1"},"notice":"GroundRules: Original legal text. Not legal advice."}