Oklahoma's insurance commissioner, Glen Mulready, has issued an order authorizing Providence Washington Insurance Company ("PWIC"), a Rhode Island-based insurance company, to submit its insurance business transfer ("IBT") plan to an Oklahoma court for approval.
Commissioner Mulready said in a statement that this was the first IBT approved by an insurance commissioner in the United States.
If approved by the court, the IBT would transfer nearly all of the insurance and reinsurance business underwritten by PWIC to Yosemite Insurance Company, an insurance company in Oklahoma. The transfer would include the liabilities associated with those policies as well as $38.5 million from PWIC to Yosemite as consideration for assuming those liabilities.
The application filed by PWIC and reviewed by the commissioner and department staff included the IBT plan, financial documents, and a plan for how the transaction would be communicated to policyholders and other interested parties. It also included a report from an independent third party who concluded that the proposed transaction would not result in a materially adverse effect on policyholders and claimants.
"This is a big accomplishment for us," Commissioner Mulready said. "We expect the IBT to bring tremendous opportunities to Oklahoma – more jobs to the state, more options for consumers, and a more competitive environment for insurers."
Oklahoma's IBT law became effective in November 2018. The Oklahoma process closely mirrors Part VII of the Financial Services & Markets Act of 2000 in the United Kingdom, which has resulted in nearly 300 transfers.
Learn more: www.oid.ok.gov.
Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].