{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-639","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-639","heading":"Annual financial report - Actuarial certification -","body":"Quarterly financial statements - Penalties.\n\nA. Every MEWA shall, within ninety (90) days after the end of\n\neach fiscal year of the MEWA, or within any such extension of time\n\nthat the Insurance Commissioner for good cause grants, file a report\n\nwith the Commissioner, on forms acceptable to the Commissioner and\n\nverified by the oath of a member of the board of trustees or chief\n\nexecutive officer of any governing association and by the\n\nadministrator of the MEWA, showing its financial condition on the\n\nlast day of the preceding fiscal year. The report shall contain an\n\naudited financial statement of the MEWA prepared in accordance with\n\ngenerally accepted accounting principles, including its balance\n\nsheet and a statement of the operations for the preceding fiscal\n\nyear certified by an independent accounting firm or independent\n\nindividual holding a permit to practice certified public accounting\n\nin this state. The report shall also include an analysis of the\n\nadequacy of reserves and contributions or premiums charged, based on\n\na review of past and projected claims and expenses.\n\nB. In conjunction with the annual report required in subsection\n\nA of this section, the MEWA shall submit an actuarial certification\n\nprepared by a qualified independent actuary that indicates:\n\n1. The MEWA is actuarially sound, with the certification\n\nconsidering the rates, benefits, and expenses of, and any other\n\nfunds available for the payment of obligations of the MEWA;\n\n2. The rates being charged and to be charged for contracts are\n\nactuarially adequate to the end of the period for which rates have\n\nbeen guaranteed;\n\n3. The recommended amount of cash reserves the MEWA should\n\nmaintain, which shall not be less than the greater of twenty percent\n\n(20%) of the total contributions in the preceding plan year or\n\ntwenty percent (20%) of the total estimated contributions for the\n\ncurrent plan year. The cash reserves shall be calculated with\n\nproper actuarial regard for known claims, paid and outstanding, a\n\nhistory of incurred but not reported claims, claims handling\n\nexpenses, unearned premiums, a trend factor, and a margin for error.\n\nCash reserves required by this section shall be maintained in cash\n\nor federally guaranteed obligations of less than five-year maturity\n\nthat have a fixed or recoverable principal amount or such other\n\ninvestments as the Commissioner may authorize by rule;\n\n4. Whether amounts reserved to cover the cost of health care\n\nbenefits are:\n\na. calculated in accordance with the loss reserving\n\nstandards that would be applicable to a private\n\ninsurance company writing the same coverage,\n\nb. computed in accordance with accepted loss reserving\n\nstandards, including a reserve for Incurred But Not\n\nReported Claims (IBNR), and\n\nc. fairly stated in accordance with sound loss reserving\n\nstandards;\n\n5. The recommended level of specific and aggregate stop-loss\n\ninsurance that the MEWA should maintain and whether the MEWA is\n\nfunding at the aggregate retention plus all other costs of the MEWA;\n\nand\n\n6. Such other information relating to the performance of the\n\nMEWA that is reasonably required by the Commissioner.\n\nC. The MEWA shall send an annual report to all of the\n\nemployers, describing the financial condition of the MEWA as of the\n\nend of the last fiscal year. The report must be sent at the same\n\ntime as the filing of the annual statement of the MEWA.\n\nD. The Commissioner may require a MEWA to file quarterly,\n\nwithin forty-five (45) days after the end of each of the remaining\n\nfiscal quarters, a financial statement on a form prescribed by the\n\nCommissioner, verified by the oath of a member of the board of\n\ntrustees and an administrator of the MEWA, showing its financial\n\ncondition on the last day of the preceding quarter and the statement\n\nof a qualified actuary setting forth the actuary's opinion relating\nhin forty-five (45) days after the end of each of the remaining\n\nfiscal quarters, a financial statement on a form prescribed by the\n\nCommissioner, verified by the oath of a member of the board of\n\ntrustees and an administrator of the MEWA, showing its financial\n\ncondition on the last day of the preceding quarter and the statement\n\nof a qualified actuary setting forth the actuary's opinion relating\n\nto the level of cash reserves in accordance with paragraphs 3 and 4\n\nof subsection B of this section.\n\nE. Any MEWA that fails to file a report as required by this\n\nsection is subject to Section 311 of this title; and, after notice\n\nand opportunity for hearing, the Commissioner may suspend the MEWA's\n\nauthority to enroll new insureds or to do business in this state\n\nwhile the failure continues.","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":"c8e955044233c0f5d6b22dffe175c954339875b069f80762dff96c366d78fda4","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-638","next":"us-ok/okla.-stat.-tit.-36-36-640"},"notice":"GroundRules: Original legal text. Not legal advice."}