{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-6470.19","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-6470.19","heading":"Captive insurance tax rates – Definitions","body":"A. Each captive insurance company, other than a sponsored\n\ncaptive insurance company, and each protected cell of a sponsored\n\ncaptive insurance company, shall pay to the Insurance Department, by\n\nMarch 1 of each year, a tax at the rate of two-tenths of one percent\n\n(0.2%) on the direct premiums collected or contracted for on\n\npolicies or contracts of insurance written by the captive insurance\n\ncompany during the year ending December 31 next preceding, after\n\ndeducting from the direct premiums subject to the tax the amounts\n\npaid to policyholders as return premiums which shall include\n\ndividends on unabsorbed premiums or premium deposits returned or\n\ncredited to policyholders up to a maximum tax for such year of One\n\nHundred Thousand Dollars ($100,000.00); provided however, that no\n\ntax shall be due or payable as to consideration received for annuity\n\ncontracts.\n\nB. A captive insurance company, other than a sponsored captive\n\ninsurance company, and each protected cell of a sponsored captive\n\ninsurance company, shall pay to the Department, by March 1 of each\n\nyear, a tax at the rate of one-tenth of one percent (0.1%) of\n\nassumed reinsurance premium. However, no reinsurance tax applies to\n\npremiums for risks or portions of risks which are subject to\n\ntaxation on a direct basis pursuant to subsection A of this section.\n\nA premium tax is not payable in connection with the receipt of\n\nassets in exchange for the assumption of loss reserves and other\n\nliabilities of another insurer under common ownership and control if\n\nthe transaction is part of a plan to discontinue the operations of\n\nthe other insurer and if the intent of the parties to the\n\ntransaction is to renew or maintain business with the captive\n\ninsurance company.\n\nC. A sponsored captive insurance company shall pay to the\n\nDepartment, by March 1 of each year, a tax on direct and assumed\n\npremiums equal, in the aggregate, to the minimum tax provided in\n\nsubsection D of this section.\n\nD. Except as provided in this section for a series captive\n\ninsurance company, if the aggregate taxes to be paid by a captive\n\ninsurance company or a protected cell of a sponsored captive\n\ninsurance company calculated under subsections A and B of this\n\nsection amount to less than Five Thousand Dollars ($5,000.00) in any\n\nyear, the captive insurance company or protected cell shall pay a\n\nminimum tax of Five Thousand Dollars ($5,000.00) for that year.\n\nHowever, in the calendar year in which a captive insurance company\n\nis first licensed, or the protected cell is approved by the\n\nCommissioner, the minimum tax will be prorated on a quarterly basis.\n\nFor those licensed in the first quarter, the prorated minimum tax is\n\nFive Thousand Dollars ($5,000.00). For those licensed in the second\n\nquarter, the prorated minimum tax is Three Thousand Seven Hundred\n\nFifty Dollars ($3,750.00). For those licensed in the third quarter,\n\nthe prorated minimum tax is Two Thousand Five Hundred Dollars\n\n($2,500.00). For those licensed in the fourth quarter, the prorated\n\nminimum tax is One Thousand Two Hundred Fifty Dollars ($1,250.00).\n\nIn the calendar year in which a captive insurance company is first\n\nlicensed or the protected cell is first approved by the\n\nCommissioner, if the aggregate taxes to be paid calculated under\n\nsubsections A and B of this section amount to less than the minimum\n\ntax prorated on a quarterly basis, the captive or protected cell\n\nshall pay the prorated minimum tax for that calendar year. Each\n\nseries captive insurance company shall pay an annual minimum\n\naggregate tax of Three Thousand Five Hundred Dollars ($3,500.00).\n\nThe aggregation of the tax paid by more than one series captive\n\ninsurance company formed within a limited liability company or\n\nstatutory trust or the corresponding law of another state shall not\n\nbe restricted by the annual maximum premium tax limitations\n\nspecified in subsections A and B of this section.\nl pay an annual minimum\n\naggregate tax of Three Thousand Five Hundred Dollars ($3,500.00).\n\nThe aggregation of the tax paid by more than one series captive\n\ninsurance company formed within a limited liability company or\n\nstatutory trust or the corresponding law of another state shall not\n\nbe restricted by the annual maximum premium tax limitations\n\nspecified in subsections A and B of this section.\n\nE. Subject to subsections F, G and H of this section, if the\n\naggregate taxes on direct and assumed premiums to be paid by a\n\ncaptive insurance company or a protected cell of a sponsored captive\n\ninsurance company calculated under subsections A and B of this\n\nsection amount to more than One Hundred Thousand Dollars\n\n($100,000.00) in any year, the captive insurance company, protected\n\ncell of a sponsored captive insurance company or a series captive\n\ninsurance company shall pay a maximum tax of One Hundred Thousand\n\nDollars ($100,000.00) for that year.\n\nF. Two or more captive insurance companies under common\n\nownership and control must be taxed as though they were a single\n\ncaptive insurance company. Two or more protected cells of a\n\nsponsored captive insurance company that are related by common\n\nownership and control must be taxed as though they were a single\n\nprotected cell.\n\nG. As used in this section, “common ownership and control”\n\nmeans the direct or indirect ownership of eighty percent (80%) or\n\nmore of the outstanding voting stock or other voting interests of\n\ntwo or more captive insurance companies or protected cells of a\n\nsponsored captive insurance company by the same person or persons.\n\nH. A captive insurance company that has employed twenty-five or\n\nmore separate qualified individuals throughout a given tax year and\n\nthat otherwise would be liable under this section for tax for such\n\nyear in an amount exceeding Fifty Thousand Dollars ($50,000.00)\n\nshall pay to the Insurance Commissioner under this section a tax for\n\nsuch year in the amount of Fifty Thousand Dollars ($50,000.00). For\n\npurposes of this subsection, “qualified individual” means a natural\n\nperson employed in this state on a regular basis of thirty-five (35)\n\nor more hours per week either by such captive insurance company, or\n\nby a wholly-owned subsidiary of such captive insurance company that\n\nprovides captive insurance company management, operating, investment\n\nor related services exclusively to such captive insurance company.\n\nI. The tax provided for in this section constitutes all taxes\n\ncollectible under the laws of this state from a captive insurance\n\ncompany or a protected cell of a sponsored captive insurance\n\ncompany, and no other occupation tax or other taxes may be levied or\n\ncollected from a captive insurance company by the state or a county,\n\ncity, or municipality within this state, except ad valorem taxes on\n\nreal and personal property used in the production of income.\n\nJ. For the fiscal year beginning July 1, 2020, and for each\n\nfiscal year thereafter, the Insurance Commissioner shall report and\n\ndisburse all fees and taxes collected pursuant to this section as\n\nfollows:\n\n1. Of the first Five Hundred Thousand Dollars ($500,000.00):\n\na. thirty-six percent (36%) to the Oklahoma Firefighters\n\nPension and Retirement Fund,\n\nb. fourteen percent (14%) to the Oklahoma Police Pension\n\nand Retirement System,\n\nc. five percent (5%) to the Law Enforcement Retirement\n\nFund, and\n\nd. forty-five percent (45%) to the State Treasury to the\n\ncredit of the General Revenue Fund of the state;\n\n2. Of the next Two Hundred Fifty Thousand Dollars\n\n($250,000.00), one hundred percent (100%) to the State Insurance\n\nCommissioner Revolving Fund to be used by the Department for the\n\npurposes of implementing and administering the Oklahoma Captive\n\nInsurance Company Act and any accompanying regulations; and\n\n3. Of all amounts in excess of Seven Hundred Fifty Thousand\n\nDollars ($750,000.00):\nstate;\n\n2. Of the next Two Hundred Fifty Thousand Dollars\n\n($250,000.00), one hundred percent (100%) to the State Insurance\n\nCommissioner Revolving Fund to be used by the Department for the\n\npurposes of implementing and administering the Oklahoma Captive\n\nInsurance Company Act and any accompanying regulations; and\n\n3. Of all amounts in excess of Seven Hundred Fifty Thousand\n\nDollars ($750,000.00):\n\na. thirty-six percent (36%) to the Oklahoma Firefighters\n\nPension and Retirement Fund,\n\nb. fourteen percent (14%) to the Oklahoma Police Pension\n\nand Retirement System,\n\nc. five percent (5%) to the Law Enforcement Retirement\n\nFund,\n\nd. fifteen percent (15%) to the State Treasury to the\n\ncredit of the General Revenue Fund of the state, and\n\ne. thirty percent (30%) to the State Insurance\n\nCommissioner Revolving Fund to be used by the\n\nDepartment for the purposes of implementing and\n\nadministering the Oklahoma Captive Insurance Company\n\nAct and any accompanying regulations.","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":"474c8907cebf45c3f152e8fa404e917e3d794b266c501f58dd738baf05be7523","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-6470.18","next":"us-ok/okla.-stat.-tit.-36-36-6470.2"},"notice":"GroundRules: Original legal text. Not legal advice."}