Oklahoma State Rep. Kevin Stitt on Tuesday signed the bill into law detailing how premium taxes by captive insurance companies should be distributed.
H. B. 3864, which comes into force July 1, directs the state insurance commissioner to pay 45% of the first $ 500,000 collected in the premium tax collected to the state general income fund, 36% to the Oklahoma Firefighter Fund, 14% to the state police pension and pension system, and 5 % to the state pension fund for law enforcement.
All of the next $ 250,000 in premium tax revenue will go to the Oklahoma Department of Insurance Revolving Fund to be used to implement and administer the state's trapped insurance companies act and all associated regulations, the bill says.
For premium taxes collected in excess of $ 750,000, approximately 30% will go to the insurance department's rotating fund, while 36% will go to the state firefighter's pension and pension fund, 1
The new law maintains the maximum ceiling on annual premium tax id of trapped insurance companies to $ 100,000.