Oklahoma gives okay on premium tax cap
The US State of Oklahoma’s legislature has approved a premium tax cap of $100,000 for captive insurance companies.
Oklahoma has been a captive domicile since 2004, but few captive insurance companies saw the state as an attractive place to do business, according to the Oklahoma Insurance Department (OID). The department said that it discovered that captive insurance companies were choosing other states because they had a cap on premium tax. It then asked for a change in the law so that new business could be attracted to Oklahoma. Senate Bill 1617 was approved on 25 May. Once Oklahoma governor Mary Fallin signs the bill into law, it will take effect immediately. “This law sends a strong message to the captive insurance industry. Oklahoma is open for business. We have a robust regulatory system and this is a great place to be,” said OID commissioner John Doak.