Wisconsin-based Sentry Insurance (Sentry) has gained approval from the Oklahoma Insurance Department to submit its Insurance Business Transfer (IBT) Plan to the District Court of Oklahoma County.
This is the second IBT approved by an insurance commissioner in the United States, according to Oklahoma Insurance Commissioner Glen Mulready. The first one was approved by Mulready in November 2019.
If approved by the court, this IBT would transfer a block of reinsurance business underwritten by Sentry to National Legacy Insurance Co., a subsidiary of Randall & Quilter Investment Holdings Ltd. (NLIC), an insurance company domiciled in Oklahoma. The transfer would include the liabilities associated with the reinsurance as well as $2.9 million from Sentry to NLIC as consideration for assuming those liabilities.
The application filed by Sentry and reviewed by the commissioner and department staff includes the IBT Plan, extensive financial documents and a plan for how the transaction will be communicated to policyholders and other interested parties. It also includes a report from an independent expert who concluded that the proposed transaction will not have a materially adverse impact on the policyholders and claimants of both companies.
Oklahoma’s IBT law became effective in November 2018 and is the most expansive such law in the country, according to the OID. The Oklahoma process closely mirrors Part VII of the Financial Services & Markets Act of 2000 in the United Kingdom, which has resulted in over 300 successful transfers.
Source: Oklahoma Insurance Department
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