Insurance Business Transfer ("IBT")

The attorneys at Odom & Sparks are leaders in the growing field of Insurance Business Transfer ("IBT")

John Sparks and Michael Ridgeway represented the parties involved in the first IBT filed in the United States, from the initial application (Providence Washington Insurance Company, Case No. 19-738-IBT (Oklahoma Insurance Department, November 26, 2019)), through to the final Judgment and Order of Approval and Implementation of the IBT Plan (CJ-2019-6689, (October 15, 2020, Oklahoma County, Oklahoma)).

Oklahoma’s IBT Act enables the transfer and novation of insurance and/or reinsurance policies from a transferring insurer or reinsurer to an assuming insurer, after obtaining approval from the Insurance Commissioner and District Court. Oklahoma’s IBT Act was modeled after a similar and well-established United Kingdom law which allows for “Part VII Transfers.” An IBT Plan will be approved if, instead of obtaining individual policyholder consent, the Insurance Commissioner and District Court determine, “the implementation of the Insurance Business Transfer Plan would not materially adversely affect the interests of policyholders or claimants that are part of the subject business[.]” Okla. Stat. tit. 36, § 1686(C)(3) (underline added).

In 2018, then-Senator Sparks co-authored S.B. 826, with then-Representative Mulready, which established the first IBT statute in the United States. Michael Ridgeway previously served as General Counsel for the Oklahoma Insurance Department and General Counsel and Board Secretary for the Dubai Financial Services Authority, the Dubai government agency that regulates financial services in or from the Dubai International Financial Centre.

Odom & Sparks is a Corporate Partner of the Association of Insurance & Reinsurance Run-Off Companies (AIRROC).

Please contact either John Sparks or Michael Ridgeway if you wish to further discuss this matter.