b'Insurance Regulatory | US/NAIC | Insurance Business Transfer and Division MechanismsThe approval by the Oklahoma County District CourtYosemite was not licensed in Massachusetts or New came nearly a year after the transfer plan was initiallyYork and the guaranty association concerns expressed, filed with the Oklahoma Insurance Department onpolicies and reinsurance agreements regulated by November 13, 2019. Regulatory approval was obtainedMassachusetts and New York were not part of the on November 26, 2019 from Oklahoma, the transfereetransfer plan. Following the approval, all rights, obliga-Yosemites state of domicile, after first obtaining ations or liabilities with respect to PWIC were non-disapproval letter from Rhode Island, the trans- extinguished, PWIC was released from any and all feror PWICs state of domicile. The IBT experienced aobligation or liabilities under the policies, and all relatively uncontentious review process in which noproperty and liabilities, including ceded reinsurance of objections were filed with the court and no third partythe transferred policies and contracts, were ordered requested to be heard at the court hearing. Notably,transferred to Yosemite.the court approval referred to a comment letter filedThe approval of the first US IBT is a landmark event. by the National Conference of Insurance GuarantyOklahomas second IPT transaction received Funds, providing that an IBT should not reduce,approval from the Oklahoma Commissioner on eliminate, create, expand or in any way impact guar- December 2, 2020, and involves the transfer of a anty fund coverage. The court approval also statedblock of reinsurance business written by Wisconsin-that no individual state guaranty association or regula- domiciled Sentry Insurance Company to National tor had filed any objection or claim asserting that theLegacy Insurance Company, an Oklahoma-domiciled transfer plan would reduce, eliminate or in any waysubsidiary of Randall & Quilter Investment Holdings, impact guaranty association coverage. As a result ofLtd. One can expect that, with this success, more the approval, all of the insurance policies subject to thesuch transfers will follow and, perhaps, more jurisdic-transfer plan (with respect to both policyholders andtions will see value in adopting legislation which reinsureds) were transferred and, in effect, novatedallows such transfers to occur. gpursuant to Oklahomas IBT statute. Given that MAYER BROWN 69'