Okla. Stat. tit. 36, § 36-1448 — OK Code / Title 36 / Section 36-1448
Administrator's bond - Amount - Requirements - Purpose -
Status: in_force

limits of cumulative liability - Cancellation.

A. Every administrator shall be bonded.

B. Prior to issuance of a license as an administrator, the

applicant shall file with the Insurance Commissioner and thereafter

keep in effect as long as the license remains in effect, a surety

bond in an amount sufficient to protect those with whom the

administrator deals, as determined by the Insurance Commissioner,

which amount shall not be less than Ten Thousand Dollars

($10,000.00), and in a form acceptable to the Insurance

Commissioner. The bond is intended to secure performance of the

administrator in conformity with the laws, rules and regulations

governing third-party administrators. The bond shall be for the

benefit of parties injured by the actions of the administrator.

C. In no event shall the cumulative liability of the Surety be

more than the penal sum of the bond. In no event shall the Surety

cancel the bond without first giving thirty (30) days' written

notice to the principal and the Insurance Commissioner.
Okla. Stat. tit. 36, § 36-3111 — OK Code / Title 36 / Section 36-3111
Disposition of fees - Personnel
Status: in_force

All filing fees and examination costs collected under this act

shall be credited to the General Fund of the State of Oklahoma. The

Commissioner is authorized to employ such personnel as may be

necessary to carry out the provisions of this act and to fix their

Oklahoma Statutes - Title 36. Insurance Page 761

compensation within the amounts made available by appropriation and

by the fund established by this section.
Okla. Stat. tit. 36, § 36-4902 — OK Code / Title 36 / Section 36-4902
Venue of actions against surety insurers
Status: in_force

Any surety insurer may be sued in respect of any surety bond by

it issued in the county where such bond, recognizance, stipulation

or undertaking was made or guaranteed, or in the county where the

principal office of such insurer in this state is located, and for

the purposes hereof, the same shall be treated as made or guaranteed

in the county in which such office is located or in which it is

filed, or in the county in which the principal resided when it was

made or guaranteed.
Okla. Stat. tit. 36, § 36-632.1 — OK Code / Title 36 / Section 36-632.1
Home service contracts and home warranties not
Status: in_force

insurance.

Home service contracts and home warranties, as defined in

Section 6752 of Title 36 of the Oklahoma Statutes, are not insurance

in this state or otherwise regulated under the Insurance Code.
Okla. Stat. tit. 36, § 36-3610 — OK Code / Title 36 / Section 36-3610
Approval of forms
Status: in_force

A. No insurance policy form or application form, where written

application is required and is to be made a part of the policy,

rider or endorsement form other than surety bond forms and such

other insurance policy forms as are hereinafter specifically

otherwise provided for shall be issued, delivered, or used unless

filed with and approved by the Insurance Commissioner. This section

shall not apply to policies, riders or endorsements of unique

character designed for and used with relation to insurance upon a

particular subject or which relate to the manner of distribution of

benefits or to the reservation of rights and benefits under life or

accident and health policies, and are used at the request of the

individual policyholder, contract holder, or certificate holder.

B. Every such filing shall be made not less than sixty (60)

days in advance of any such delivery. At the expiration of such

sixty (60) days the form so filed shall be deemed approved unless

Oklahoma Statutes - Title 36. Insurance Page 776

prior thereto it has been affirmatively approved or disapproved by

order of the Insurance Commissioner. Approval of any such form by

the Commissioner shall constitute a waiver of any unexpired portion

of such waiting period. The Insurance Commissioner may extend by

not more than an additional thirty (30) days the period within which

he may so affirmatively approve or disapprove any such form, by

giving notice of such extension before expiration of the initial

sixty-day period. At the expiration of any such period as so

extended, and in the absence of such prior affirmative approval or

disapproval, any such form shall be deemed approved. The Insurance

Commissioner may at any time, after notice and for cause shown,

withdraw any such approval.

C. Any order of the Insurance Commissioner disapproving any

such form or withdrawing a previous approval shall state the grounds

therefor.

D. The Insurance Commissioner may, by order, exempt from the

requirements of this section for so long as he deems proper any

insurance document or form or type thereof as specified in such

order, to which, in his discretion this section may not practicably

be applied, or the filing and approval of which are, in his opinion,

not desirable or necessary for the protection of the public.

E. This section shall apply also to any such form used by

domestic insurers for delivery in a jurisdiction outside Oklahoma,

if the insurance supervisory official of such jurisdiction informs

the Insurance Commissioner that such form is not subject to approval

or disapproval by such official, and upon the Commissioner's order

requiring the form to be submitted to him for the purpose.
Okla. Stat. tit. 36, § 36-6470.15 — OK Code / Title 36 / Section 36-6470.15
Investment requirements – Loans
Status: in_force

A. An association captive insurance company, a sponsored

captive insurance company, and a risk retention group shall comply

with the investment requirements contained in the Oklahoma Insurance

Code. The Insurance Commissioner may approve the use of alternative

investment requirements upon application by such captive insurance

company.

B. Except as to unimpaired paid-in capital as provided in

paragraph 7 of subsection A of Section 6470.6 of this title, a pure

captive insurance company, a special purpose captive insurance

company, a branch captive insurance company, a series captive

insurance company, and an industrial insured captive insurance

company are not subject to any restrictions on allowable investments

contained in the Oklahoma Insurance Code; however, the Insurance

Commissioner may prohibit or limit an investment that threatens the

solvency or liquidity of the company.

C. Loans of minimum capital and surplus funds required by

Section 6470.6 of this title are prohibited.

D. Subject to subsections A and B of this section and Section

6470.31 of this title, as applicable, a captive insurance company

may own securities of or other interests in another captive

insurance company, whether voting or nonvoting.
Okla. Stat. tit. 36, § 36-303 — OK Code / Title 36 / Section 36-303
Official seal of Insurance Commissioner
Status: in_force

The Insurance Commissioner shall have an official seal, the

center of which shall be the same as that of the Great Seal of the

State of Oklahoma, and which shall be distinguished by the words

"Insurance Commissioner - State of Oklahoma" inscribed in the

circular band surrounding the remainder of the device. This seal

shall be the official seal of the office. Every certificate and

other document or paper duly executed by the Insurance Commissioner,

authorized employees of the Insurance Department, or independent

hearing examiners and all copies or photographic copies of papers

certified by authority of the Commissioner and authenticated by the

seal shall have the same force and effect as the original would in

any suit or proceedings in any court of this state.
Okla. Stat. tit. 36, § 36-6011 — OK Code / Title 36 / Section 36-6011
Application to Oklahoma Employees Health Insurance Plan
Status: in_force

A. Any mandated health insurance coverage signed into law after

November 1, 2016, for specific health services, benefits, diseases,

copay structure, formulary structure or for certain providers of

health care services shall also apply to the Oklahoma Employees

Health Insurance Plan.

B. As used in this section, "Oklahoma Employees Health

Insurance Plan" shall have the same meaning as "health insurance

plan" as defined in Section 1303 of Title 74 of the Oklahoma

Statutes.
Okla. Stat. tit. 36, § 36-3639.3 — OK Code / Title 36 / Section 36-3639.3
Homeowner coverage as condition of financing – Amount
Status: in_force

not to exceed replacement value - Definitions.

A. No lender, as a condition of financing a residential

mortgage or providing other financing arrangements for residential

property, including a mobile or manufactured home, may require a

borrower to purchase homeowner insurance coverage, mobile or

manufactured home insurance coverage, dwelling fire coverage, or

other residential property coverage in an amount that exceeds the

replacement value of the dwelling and its contents, regardless of

the amount of the mortgage or other financing arrangement entered

into by the borrower. As used in this section, “replacement value”

shall not include the cleanup costs or the value of outbuildings if

the limits of coverage are separate from the dwelling limits

coverage.

B. A lender may not include the fair market value of the land

on which a dwelling is located in the replacement value of the

dwelling and its contents.

C. A lender may accept the value of the dwelling determined by

the insurer, or use the value placed on the dwelling that is

determined by an appraisal of the real property by the lender to

determine the replacement value.

D. As used in this section:

Oklahoma Statutes - Title 36. Insurance Page 816

1. "Lender" means any person, partnership, corporation,

association, or other entity, or any agent, loan agent, servicing

agent, or any loan or mortgage broker, who lends money and receives

or otherwise acquires a mortgage, lien, deed of trust, or any other

security interest in or upon any real or personal property as

security for such loan; and

2. "Borrower" means any person, partnership, corporation,

association, or other entity, who has or acquires a legal or

equitable interest in real or personal property which is or becomes

subject to a mortgage, lien, security agreement, deed of trust, or

other security instrument.Oklahoma Statutes - Title 36. Insurance Page 24
Okla. Stat. tit. 36, § 36-2656 — OK Code / Title 36 / Section 36-2656
Filing of forms and rates; disapproval
Status: in_force

On and after the effective date of this act, no contract

providing for optometric service or indemnity shall be issued or

delivered to any person in this state, nor shall any application,

rider or endorsement be issued in connection therewith, until a copy

of the form thereof, and the rates pertaining thereto, have been

filed with and approved by the Insurance Commissioner. If the

Insurance Commissioner disapproves the contract, application, rider

or endorsement form, or rates, said Commissioner shall make a

written decision stating the reason or reasons therefor and shall

deliver a copy thereof to the corporation and it shall be unlawful

for any such corporation to use any such form in this state. Any

such corporation shall have twenty (20) days from date of receipt of

the notice of disapproval in which to request a hearing on such

disapproval.
Okla. Stat. tit. 36, § 36-961 — OK Code / Title 36 / Section 36-961
Premium discount or rate reduction for resistance to
Status: in_force

tornado or other wind events.

A. Commencing on April 1, 2018, insurance companies shall

provide a premium discount or insurance rate reduction in an amount

and manner as established in subsection D of this section and

pursuant to Section 3 of this act only when the company determines

that the premium discount or rate reduction is actuarially justified

and there is sufficient and credible evidence of cost savings, which

can be attributed to the construction standards set forth in

subsection B of this section. A premium discount or rate reduction

shall be available under the terms specified in this section to any

owner who builds or locates a new insurable property in the State of

Oklahoma to resist loss due to tornado or other catastrophic

windstorm events. Insurance companies shall be required to offer

such a premium discount or rate reduction only when the insurer

determines they are actuarially justified and there is sufficient

and credible evidence of cost savings, which can be attributed to

the construction standards set forth in subsection B of this

section. In addition, insurance companies may also offer additional

adjustments in deductible, other risk differentials, or a

combination thereof, collectively referred to as other adjustments.

B. To obtain the premium discount, rate reduction, or other

adjustment provided in this section, an insurable property located

in this state shall be certified as constructed in accordance with

Appendix Y of the 2015 Oklahoma Uniform Building Code, as amended,

including all tornado mitigation construction requirements, as long

as its standards are equal to or greater than the FORTIFIED Home

High Wind and Hail Standards as certified by the Institute for

Business and Home Safety (IBHS), or the FORTIFIED Home High Wind and

Hail Standards as may from time to time be adopted by the Institute

for Business and Home Safety or successor entity. An insurable

property shall be certified as conforming to the applicable building

code only after an inspection of the insurable property has been

satisfactorily completed by a certified or licensed building

inspector and certified to be conforming to the applicable building

code including all high wind and hail mitigation construction

requirements. An insurable property shall be certified as

conforming to the FORTIFIED Home High Wind and Hail Standards only

after evaluation and certification by an evaluator certified

pursuant to the FORTIFIED Home High Wind and Hail Standards.

Oklahoma Statutes - Title 36. Insurance Page 220

C. An owner of insurable property claiming a premium discount,

rate reduction, or other adjustment pursuant to this section shall

maintain sufficient certification records and construction records

including, but not limited to, a certification of compliance with

the applicable building code or the FORTIFIED Home High Wind and

Hail Standards provided in subsection B of this section, receipts

from contractors, receipts for materials and records from local

building officials. The records shall be subject to audit by the

Insurance Commissioner, or his or her representatives, and copies of

any such records shall be presented to the insurer or potential

insurer of a property owner before the premium discount, rate

reduction, or other adjustment becomes effective for the insurable

property.

D. Insurers that write policies that are subject to the premium

discount or rate reduction in this section and that are required to

submit rates and rating plans to the Commissioner pursuant to

Section 987 of Title 36 of the Oklahoma Statutes shall submit a

rating plan certified by their actuary as actuarially justified

providing for the premium discount or rate reduction described in

this section. An insurer is not required to provide the same amount

of premium discount, rate reduction, or other adjustment for a

building code insurable property as the insurer would to an

insurable property conforming to the FORTIFIED Home High Wind and

Hail Standards. A premium discount, rate reduction, or other

adjustment shall only apply to policies that provide wind or hail

coverage and to that portion of the premium for wind or hail

coverage. A premium discount, rate reduction, or other adjustment

shall apply exclusively to the wind and hail premium applicable to

improved insurable property. If an insurer already offers an

actuarially justified hail resistance discount, that hail-related

discount shall be deemed as having met the requirements of this act

as it pertains to hail-related discounts or rate reductions and no

additional hail-related discount or rate reduction shall be

required. If an insurer already offers an actuarially justified

discount for IBHS FORTIFIED Home standards, that discount shall be

deemed as having met the requirements of this act as it pertains to

wind-related discounts or rate reductions and no additional wind-

related discount or rate reduction shall be required. Insurers

shall apply any applicable premium discount, rate reduction or other

adjustment to the wind and hail premium at the policy renewal that

follows the submission of the certification to the insurer. At the

time of a policy renewal for which a premium discount, rate

reduction, or other adjustment has previously been made, the insurer

may request documentation or recertification that the fortified

standards as described in subsection C of this section continue to

be met. In addition to the requirements of this section, an insurer

Oklahoma Statutes - Title 36. Insurance Page 221

may voluntarily offer any other mitigation adjustment that the

insurer deems appropriate.
Okla. Stat. tit. 36, § 36-3624 — OK Code / Title 36 / Section 36-3624
Assignment of policies
Status: in_force

Except as provided in Section 6055 of this title, a policy may

be assignable or not assignable, as provided by its terms. Subject

to its terms relating to assignability, any life or accident and

health policy, whether heretofore or hereafter issued, under the

terms of which the beneficiary may be changed upon the sole request

of the insured, may be assigned either by pledge or transfer of

title, by an assignment executed by the insured alone and delivered

to the insurer, whether or not the pledgee or assignee is the

insurer. Any such assignment shall entitle the insurer to deal with

the assignee as the owner or pledgee of the policy in accordance

with the terms of the assignment, until the insurer has received at

its home office written notice of termination of the assignment or

pledge, or written notice by or on behalf of some other person

claiming some interest in the policy in conflict with the

assignment.
Okla. Stat. tit. 36, § 36-320 — OK Code / Title 36 / Section 36-320
Judicial review
Status: in_force

A. Any person aggrieved by a final order of the Insurance

Commissioner may obtain judicial review in accordance with the

Administrative Procedures Act. The venue of any such action shall

be in the district court of Oklahoma County. A copy of such

petition shall also forthwith be served upon the Insurance

Commissioner and other parties in interest, if any, and the

Insurance Commissioner shall thereupon certify and file in such

court a transcript of the record of such hearing and a copy of the

order appealed from.

B. Upon filing of the petition the court shall have full

jurisdiction, and shall determine whether such filing shall operate

as a stay of the order appealed from.

Oklahoma Statutes - Title 36. Insurance Page 105
Okla. Stat. tit. 36, § 36-1704 — OK Code / Title 36 / Section 36-1704
Trust companies as depositaries
Status: in_force

A. Upon request of the insurer, the Insurance Commissioner may

designate any solvent trust company or other solvent financial

institution having trust powers domiciled in this State as the

Commissioner's depositary to receive and hold any such deposit. Any

such deposit so held shall be at the expense of the insurer.

B. The State of Oklahoma shall be responsible for the

safekeeping and return of all funds and securities deposited

pursuant to this Code with the Commissioner or in any depositary so

designated by the Commissioner.
Okla. Stat. tit. 36, § 36-2203 — OK Code / Title 36 / Section 36-2203
Creation of trust – Conditions – Entities insured – Law
Status: in_force

governing reserves and surplus – Conversion of domestic stock

insurers.

A. An association may create a trust to self-insure physicians,

allied health care professionals or health care institutions against

medical professional liability claims and related risks upon

complying with the following conditions:

1. Establishment of a trust to provide coverage against medical

professional liability claims and related risks;

2. Employment of appropriate professional staff and consultants

for program management and purchase of such administrative services

as may be required;

3. The trust investment powers and limitations shall be the

same as those of any Oklahoma domestic casualty insurance company;

and

4. Performance of all acts necessary or desirable to the

conduct of the business of a medical professional liability insurer.

B. A trust may purchase, on behalf of the members of the

organizing association, specific excess insurance, aggregate excess

insurance, and reinsurance, as in the opinion of the trustee are

necessary. A trust is further authorized to purchase risk

Oklahoma Statutes - Title 36. Insurance Page 657

management services as may be required and pay claims that arise

under any deductible provisions.

C. If the terms of the trust so authorize, the trust may insure

the following entities against medical professional liability claims

and related risks:

1. Organizations or associations in which physicians, allied

health care professionals or health care institutions are qualified

members;

2. Entities that own or operate otherwise qualified health care

institutions under the Oklahoma Medical Professional Liability

Trusts Act;

3. Physicians’ professional practice entities; and

4. Any person for whose acts or omissions an insured may be

held legally responsible.

D. Laws of this state and the provisions of any chapters,

articles or sections of Title 36 of the Oklahoma Statutes related to

required amounts of reserves and surplus are declared inapplicable

to a trust organized and operated under the Oklahoma Medical

Professional Liability Trusts Act, except as provided in the

Oklahoma Medical Professional Liability Trusts Act.

E. A licensed domestic stock insurer that prior to the

effective date of this act writes physicians’, allied health care

professionals’ or health care institutions’ medical professional

liability insurance and is owned wholly by an association shall be

entitled to convert to a trust by:

1. Filing a plan, statement of conversion and trust instrument

with the Commissioner. The plan, statement of conversion and trust

instrument shall list all conditions to be fulfilled by a designated

date, upon which such conversion will be effective, and all base

rates to be charged by the trust;

2. Approval by vote or written consent of three-fourths (3/4)

of the board of directors or trustees of the insurer’s parent

association;

3. Creation of a trust by the insurer’s parent association;

4. Transfer of the assets and liabilities of the insurer to the

trust;

5. Upon ninety (90) days’ prior written notice to affected

policyholders, replacement of the insurer’s outstanding policies by

the trust; and

6. Surrender or divesture for reasonable consideration of the

insurer’s license.
Okla. Stat. tit. 36, § 36-1219 — OK Code / Title 36 / Section 36-1219
Clean claims - Reimbursement - Notice of defective claims
Status: in_force

- Interest on overdue payments - Attorney's fees.

A. In the administration, servicing, or processing of any

accident and health insurance policy, every insurer shall reimburse

all clean claims of an insured, an assignee of the insured, or a

health care provider within forty-five (45) calendar days after

receipt of a paper claim and thirty (30) calendar days after receipt

of an electronic claim by the insurer.

B. As used in this section:

1. "Accident and health insurance policy" or "policy" means any

policy, certificate, contract, agreement or other instrument that

provides accident and health insurance, as defined in Section 703 of

this title, to any person in this state, and any subscriber

certificate or any evidence of coverage issued by a health

maintenance organization to any person in this state;

2. "Clean claim" means a claim that has no defect or

impropriety including a lack of any required substantiating

documentation or particular circumstance requiring special treatment

that impedes prompt payment; and

3. "Insurer" means any entity that provides an accident and

health insurance policy in this state including, but not limited to,

a licensed insurance company, a not-for-profit hospital service and

medical indemnity corporation, a health maintenance organization, a

Oklahoma Statutes - Title 36. Insurance Page 288

fraternal benefit society, a multiple employer welfare arrangement,

or any other entity subject to regulation by the Insurance

Commissioner.

C. If a claim or any portion of a claim is determined to have

defects or improprieties including a lack of any required

substantiating documentation or particular circumstance requiring

special treatment, the insured, enrollee or subscriber, assignee of

the insured, enrollee or subscriber, and health care provider shall

be notified in writing within thirty (30) calendar days after

receipt of the claim by the insurer. The written notice shall

specify the portion of the claim that is causing a delay in

processing and explain any additional information or corrections

needed. Failure of an insurer to provide the insured, enrollee or

subscriber, assignee of the insured, enrollee or subscriber, and

health care provider with the notice shall constitute prima facie

evidence that the claim will be paid in accordance with the terms of

the policy. Provided, if a claim is not submitted into the system

due to a failure to meet basic Electronic Data Interchange (EDI)

and/or Health Insurance Portability and Accountability Act (HIPAA)

edits, electronic notification of the failure to the submitter shall

be deemed compliance with this subsection. Provided further, health

maintenance organizations shall not be required to notify the

insured, enrollee or subscriber, or assignee of the insured,

enrollee or subscriber of any claim defect or impropriety.

Upon receipt of the additional information or corrections which

led to the claim's being delayed and a determination that the

information is accurate, an insurer shall either pay or deny the

claim or a portion of the claim within forty-five (45) calendar days

for a paper claim and thirty (30) calendar days for an electronic

claim.

D. If a clean claim or any portion of a clean claim is denied

for any reason, the insured, enrollee or subscriber, assignee of the

insured, enrollee or subscriber, and health care provider shall be

notified in writing within thirty (30) calendar days after receipt

of the claim by the insurer. The written notice shall specify in

detail the reason for the denial including instructions on where a

person or entity that received notification may respond through

dedicated facsimile or electronic mail message or the address or

electronic mail message address of the department of appeals of the

insurer. Upon receiving written notice of denial, a recipient may

submit a detailed appeal in writing explaining why the claim should

be approved. If the insurer denies the appeal, the insurer shall

address in writing the specific details included in the written

appeal and provide the phone number of a health plan representative

at the department of appeals of the insurer.

E. Payment shall be considered made on:

Oklahoma Statutes - Title 36. Insurance Page 289

1. The date a draft or other valid instrument which is

equivalent to the amount of the payment is placed in the United

States mail in a properly addressed, postpaid envelope; or

2. If not so posted, the date of delivery.

F. An overdue payment shall bear simple interest at the rate of

ten percent (10%) per year.

G. In the event litigation should ensue based upon such a

claim, the prevailing party shall be entitled to recover a

reasonable attorney fee to be set by the court and taxed as costs

against the party or parties who do not prevail.

H. The Insurance Commissioner shall develop a standardized

prompt pay form for use by providers in reporting violations of

prompt pay requirements. The form shall include a requirement that

documentation of the reason for the delay in payment or

documentation of proof of payment must be provided within ten (10)

days of the filing of the form. The Commissioner shall provide the

form to health maintenance organizations and providers.

I. The provisions of this section shall not apply to the

Oklahoma Life and Health Insurance Guaranty Association or to the

Oklahoma Property and Casualty Insurance Guaranty Association.
Okla. Stat. tit. 36, § 36-311A.2 — OK Code / Title 36 / Section 36-311A.2
Purpose of act
Status: in_force

A. The purpose of the Oklahoma Annual Financial Report Act is

to improve the surveillance of the Insurance Commissioner over the

financial condition of insurers by requiring:

1. An annual audit of financial statements reporting the

financial position and the results of operations of insurers by

independent certified public accountants;

2. Communication of Internal Control Related Matters Noted in

an Audit; and

3. Management's Report of Internal Control over Financial

Reporting.

B. Every insurer as defined in Section 311A.3 of this title

shall be subject to the Oklahoma Annual Financial Report Act.

Insurers having direct premiums written in this state of less than

One Million Dollars ($1,000,000.00) in any calendar year and less

than one thousand policy holders or certificate holders of direct

written policies nationwide at the end of the calendar year shall be

exempt from the Oklahoma Annual Financial Report Act for the year

unless the Commissioner makes a specific finding that compliance is

necessary for the Commissioner to carry out statutory

responsibilities. Insurers having assumed premiums pursuant to

contracts and treaties of reinsurance of One Million Dollars

($1,000,000.00) or more will not be so exempt.

C. Foreign or alien insurers filing the audited financial

reports in another state, pursuant to the requirement of that state

for filing of audited financial reports, which has been found by the

Commissioner to be substantially similar to the requirements of the

Oklahoma Annual Financial Report Act, are exempt from Sections

311A.4 through 311A.13 of this title if:

Oklahoma Statutes - Title 36. Insurance Page 78

1. A copy of the audited financial report, Communication of

Internal Control Related Matters Noted in an Audit, and the

Accountant's Letter of Qualifications that are filed with the other

state are filed with the Commissioner in accordance with the filing

dates specified in Sections 311A.4, 311A.11 and 311A.12 of this

title, respectively. Canadian insurers may submit accountants'

reports as filed with the Office of the Superintendent of Financial

Institutions, Canada; and

2. A copy of any Notification of Adverse Financial Condition

Report filed with the other state is filed with the Commissioner

within the time specified in Section 311A.10 of this title.

D. Foreign or alien insurers required to file Management's

Report of Internal Control over Financial Reporting in another state

are exempt from filing the Report in this state provided the other

state has substantially similar reporting requirements as determined

by the Commissioner and the Report is filed with the Commissioner of

the other state within the time specified.

E. The Oklahoma Annual Financial Report Act shall not prohibit,

preclude, or in any way limit the Commissioner from ordering or

conducting or performing examinations of insurers under the rules of

the Insurance Department and the practices and procedures of the

Insurance Department.
Okla. Stat. tit. 36, § 36-2126.4 — OK Code / Title 36 / Section 36-2126.4
Proxies, consents and authorizations of domestic stock
Status: in_force

insurers.

A. Application of Act. This act is applicable to all domestic

stock insurers having ten or more stockholders and to all persons

who shall solicit, or permit the use of his name to solicit, by mail

or otherwise, any proxy, consent or authorization in respect of any

stock of such insurer.

B. Proxies, consents and authorizations.

No domestic stock insurer, or any director, officer or employee

of such insurer subject to Paragraph A hereof, or any other person

shall solicit, or permit the use of his name to solicit, by mail or

otherwise, any proxy, consent or authorization in respect of any

stock of such insurer in contravention of this act or in

Oklahoma Statutes - Title 36. Insurance Page 637

contravention of rules and regulations prescribed by the Insurance

Commissioner.

C. Disclosure of equivalent information.

Unless proxies, consents or authorizations in respect of a stock

of a domestic insurer subject to Paragraph A hereof are solicited by

or on behalf of the management of such insurer from the holders of

record of stock of such insurer in accordance with this act prior to

an annual or other meeting, such insurer shall, in accordance with

this act and/or such further regulations as the Commissioner may

adopt, file with the Commissioner and transmit to all stockholders

of record information substantially equivalent to the information

which would be required to be transmitted if a solicitation were

made.

D. Definitions.

1. The definitions and instructions set out in Schedule SIS, as

promulgated by the National Association of Insurance Commissioners,

to the extent that they are not in conflict with this act, shall be

applicable for purposes of this act.

2. The terms "solicit" and "solicitation" for purposes of this

act shall include:

(a) any request for a proxy, whether or not

accompanied by or included in a form of proxy; or

(b) any request to execute or not to execute, or

to revoke, a proxy; or

(c) the furnishing of a proxy or other

communication to stockholders under circumstances reasonably

calculated to result in the procurement, withholding or revocation

of a proxy.

3. The terms "solicit" or "solicitation" shall not include:

(a) any solicitation by a person in respect of

stock of which he is the beneficial owner; (b) action by a broker or

other person in respect to stock carried in his name or in the name

of his nominee in forwarding to the beneficial owner of such stock

soliciting material received from the company, or impartially

instructing such beneficial owner to forward a proxy to the person,

if any, to whom the beneficial owner desires to give a proxy, or

impartially requesting instructions from the beneficial owner with

respect to the authority to be conferred by the proxy and stating

that a proxy will be given if the instructions are received by a

certain date.

(c) the furnishing of a form of proxy to a

stockholder upon the unsolicited request of such stockholder, or the

performance by any person of ministerial acts on behalf of a person

soliciting a proxy.

E. Information to be furnished to stockholders.

1. No solicitation subject to this act shall be made unless

each solicited is concurrently furnished or has previously been

Oklahoma Statutes - Title 36. Insurance Page 638

furnished with a written proxy statement which meets the

requirements and contains information specified and described in

Items 1 to 16 inclusive, as set forth in subparagraph (a) of this

subparagraph 1 and which are hereinafter referred to as Schedule A.

(a) Schedule A. Information required in a proxy

statement is as follows:

Item 1. Revocability of proxy.

State whether or not the person giving the proxy has the power

to revoke it. If the right of revocation before the proxy is

exercised is limited or is subject to compliance with any formal

procedure, such limitation or procedure must be described.

Item 2. Dissenters' right of appraisal.

Outline briefly the rights of appraisal or similar rights of

dissenting stockholders with respect to any matter to be acted upon

and indicate any statutory procedure required to be followed by such

stockholders in order to perfect their rights. Where such rights

may be exercised only within a limited time after the date of the

adoption of a proposal, the filing of a charter amendment, or other

similar act, the proposal must state whether the person solicited

will be notified of such date.

Item 3. Persons making solicitations not subject to

Paragraph K.

(1) If the solicitation is made by the management of the

insurer, it must be so stated. The name of any director of the

insurer who has informed the management in writing that he intends

to oppose any action intended to be taken by the management and the

action which he intends to oppose must be stated.

(2) If the solicitation is made otherwise than by the

management of the insurer, the names and addresses of the persons by

whom and on whose behalf it is made and the names and addresses of

the persons by whom the cost of solicitation has been or will be

borne, directly or indirectly, must be stated.

(3) If the solicitation is to be made by specially engaged

employees or paid solicitors, (i) the material features of any

contract or arrangement for such solicitation, (ii) the identity of

the parties, and (iii) the cost or anticipated cost thereof must be

stated.

Item. 4. Interest of certain persons in matters to be

acted upon.

Describe briefly any substantial interest, direct or indirect,

by stockholdings or otherwise, of any director, nominee for election

for director, officer and, if the solicitation is made otherwise

than on behalf of management, each person on whose behalf the

solicitation is made, in any matter to be acted upon other than

elections to office.

Item. 5. Stocks and principal stockholders.

Oklahoma Statutes - Title 36. Insurance Page 639

(1) State, as to each class of voting stock of the insurer

entitled to be voted at the meeting, the number of shares

outstanding and the number of votes to which each class is entitled.

(2) Give the date as of which the record list of stockholders

entitled to vote at the meeting will be determined. If the right to

vote is not limited to stockholders of record on that date, the

conditions under which other stockholders may be entitled to vote

shall be indicated.

Item 6. Nominees and directors.

If action is to be taken with respect to the election of

directors furnish the following information, in tabular form to the

extent practicable, with respect to each person nominated for

election as a director and each other person whose term of office as

a director will continue after the meeting: (a) Name each such

person, state when his term of office or the term of office for

which he is a nominee will expire, and all other positions and

offices with the insurer presently held by him and indicate which

persons are nominees for election as directors at the meeting.

(b) State his present principal occupation or employment and

give the name and principal business of any corporation or other

organization in which such employment is carried on. Furnish

similar information as to all of his principal occupations or

employments during the last five years, unless he is now a director

and was elected to his present term of office by a vote of

stockholders at a meeting for which proxies were solicited under

this act.

(c) If he is or has previously been a director of the insurer,

state the period or periods during which he has served as such.

(d) State, as of the most recent practicable date, the most

recent practicable date, the approximate amount of each class of

stock of the insurer or any of its parents, subsidiaries or

affiliates other than directors' qualifying shares, beneficially

owned directly or indirectly by him. If he is not the beneficial

owner of any such stocks make a statement to that effect.

Item 7. Remuneration and other transactions with

management and others.

Furnish the information reported or required in item one of

Schedule SIS under the heading "Information Regarding Management and

Directors" if action is to be taken with respect to (a) the election

of directors, (b) any remuneration plan, contract or arrangement in

which any director, nominee for election as a director, or officer

of the insurer will participate, (c) any pension or retirement plan

in which any such person will participate, or (d) the granting of

extension to any such person of any options, warrants or rights to

purchase any stocks, other than warrants or rights issued to

stockholders, as such, on a pro rata basis. If the solicitation is

made on behalf of persons other than the management information

Oklahoma Statutes - Title 36. Insurance Page 640

shall be furnished only as to Item IA of the aforesaid heading of

Schedule SIS.

Item 8. Bonus, profit sharing and other remuneration

plans.

If action is to be taken with respect to any bonus, profit

sharing, or other remuneration plan, of the insurer, furnish the

following information: (a) A brief description of the material

features of the plan, each class of persons who will participate

therein, the approximate number of persons in each such class, and

the basis of such participation.

(b) The amounts which would have been distributable under the

plan during the last calendar year to (1) each person named in item

seven of this schedule, (2) directors and officers as a group, and

(3) to all other employees as a group, if the plan had been in

effect.

(c) If the plan to be acted upon may be amended (other than by

a vote of stockholders) in a manner which would materially increase

the cost thereof to the insurer or to materially alter the

allocation of the benefits as between the groups specified in

paragraph (b), of this item the nature of such amendments must be

specified.

Item 9. Pension and retirement plans.

If action is to be taken with respect to any pension or

retirement plan of the insurer, furnish the following information:

(a) A brief description of the material features of the plan, each

class of persons who will participate therein, the approximate

number of persons in each such class, and the basis of such

participation.

(b) State (1) the approximate total amount necessary to fund

the plan with respect to past services, the period over which such

amount is to be paid, and the estimated annual payments necessary to

pay the total amount over such period; (2) the estimated annual

payment to be made with respect to current services; and (3) the

amount of such annual payments to be made for the benefit of (i)

each person named in Item seven of this schedule, (ii) directors and

officers as a group, and (iii) employees as a group.

(c) If the plan to be acted upon may be amended (other than by

a vote of stockholders) in a manner which would materially increase

the cost thereof to the insurer or to materially alter the

allocation of the benefits as between the groups specified in

subparagraph (b) (3) of this item, the nature of such amendments

should be specified.

Item 10. Options, warrants, or rights.

If action is to be taken with respect to the granting or

extension of any options, warrants or rights (all referred to herein

as "warrants") to purchase stock of the insurer or any subsidiary or

affiliate, other than warrants issued to all stockholders on a pro

Oklahoma Statutes - Title 36. Insurance Page 641

rata basis, information must be furnished as follows: (a) The title

and amount of stock called for or to be called for, the prices,

expiration dates and other material conditions upon which the

warrants may be exercised, the consideration received or to be

received by the insurer, subsidiary or affiliate for the granting or

extension of the warrants and the market value of the stock called

for or to be called for by the warrants, as of the latest

practicable date.

(b) If known, state separately the amount of stock called for

or to be called for by warrants received or to be received by the

following persons, naming each such person: (1) each person named in

Item seven of this schedule, and (2) each other person who will be

entitled to acquire five percent (5%) or more of the stock called

for or to be called for by such warrants.

(c) If known, state also the total amount of stock called for

or to be called for by such warrants, received or to be received by

all directors and officers of the company as a group and all

employees, without naming them.

Item 11. Authorization or issuance of stock.

1. If action is to be taken with respect to the authorization

or issuance of any stock of the insurer, the title, amount and

description of the stock to be authorized or issued must be

furnished.

2. If the shares of stock are other than additional shares or

common stock of a class outstanding, furnish a brief summary of the

following, if applicable: dividend, voting, liquidation, preemptive,

and conversion rights, redemption and sinking fund provision,

interest rate and date of maturity.

3. If the shares of stock to be authorized or issued are other

than additional shares of common stock of a class outstanding, the

Commissioner may require financial statements comparable to those

contained in the annual report.

Item 12. Mergers, consolidations, acquisitions and similar

matters.

1. If the action is to be taken with respect to a merger,

consolidation, acquisition, or similar matter, furnish in brief

outline the following information:

(a) The rights of appraisal or similar rights of dissenters

with respect to any matters to be acted upon. Indicate any

procedure required to be followed by dissenting stockholders in

order to perfect such rights.

(b) The material features of the plan or agreement.

(c) The business done by the company to be acquired or whose

assets are being acquired.

(d) If available, the high and low sales prices for each

quarterly period within two years.

Oklahoma Statutes - Title 36. Insurance Page 642

(e) The percentage of outstanding shares which must approve the

transaction before it is consummated.

2. For each company involved in a merger, consolidation or

acquisition, the following financial statements should be furnished:

(a) A comparative balance sheet as of the close of the last two

fiscal years.

(b) A comparative statement of operating income and expenses

for each of the last two fiscal years and, as a continuation of each

statement, a statement of earning per share after related taxes and

cash dividends paid per share.

(c) A pro forma combined balance sheet and income and expenses

statement for the last fiscal year giving effect to the necessary

adjustments with respect to the resulting company.

Item 13. Restatement of accounts.

If action is to be taken with respect to the restatement of any

asset, capital, or surplus of the insurer, furnish the following

information:

(a) State the nature of the restatement and the date as of

which it is to be effective.

(b) Outline briefly the reasons for the restatement and for the

selection of the particular effective date.

(c) State the name and amount of each account affected by the

restatement and the effect of the restatement thereon.

Item. 14. Matters not required to be submitted.

If action is to be taken with respect to any matter which is

not required to be submitted to a vote of stockholders, state the

nature of such matter, the reason for submitting it to a vote of

stockholders and what action is intended to be taken by the

management in the event of a negative vote on the matter by the

stockholders.

Item 15. Amendment of charter, bylaws, or other documents.

If action is to be taken with respect to any amendment of the

insurer's charter, bylaws or other documents as to which information

is not required above, state briefly the reasons for and general

effect of such amendment and the vote needed for its approval.

Item 16. Additional information.

1. Additional information in such form and detail as the

Commissioner may prescribe or request shall be furnished and

included.

2. If the solicitation is made on behalf of the management of

the insurer and relates to an annual meeting of stockholders at

which directors are to be elected, each proxy statement furnished

pursuant to subsection one hereof shall be accompanied or preceded

by an annual report (in preliminary or final form) to such

stockholders containing such financial statements for the last

fiscal year as are referred to in Schedule SIS under the heading

"Financial Reporting to Stockholders." Subject to the foregoing

Oklahoma Statutes - Title 36. Insurance Page 643

requirements with respect to financial statements, the annual report

to stockholders may be in any form deemed suitable by the management

and approved by the Commissioner.

3. Two copies of each report sent to the stockholders pursuant

to this section shall be mailed to the Commissioner not later than

the date on which such report is first sent or given to stockholders

or the date on which preliminary copies of solicitation material are

filed with the Commissioner pursuant to subparagraph 1 of Paragraph

G, whichever date is later.

F. Requirements as to proxy.

1. The form of proxy (a) shall indicate in boldface type

whether or not the proxy is solicited on behalf of the management

(b) shall provide a specially designated blank space for dating the

proxy and (c) shall identify clearly and impartially each matter or

group of related matters intended to be acted upon, whether proposed

by the management, or stockholders. No reference need be made to

proposals as to which discretionary authority is conferred pursuant

to subparagraph 3 of this Paragraph F.

2. Means shall be provided in the proxy for the person

solicited to specify by ballot a choice between approval or

disapproval of each matter or group of related matters referred to

therein, other than elections to office. A proxy may confer

discretionary authority with respect to matters as to which a choice

is not so specified if the form of proxy states in boldface type how

it is intended to vote the shares or authorization represented by

the proxy in each such case.

3. A proxy may confer discretionary authority with respect to

other matters which may come before the meeting, provided the

persons on whose behalf the solicitation is made are not aware a

reasonable time prior to the time the solicitation is made that any

other matters are to be presented for action at the meeting and

provided further that a specific statement to that effect is made in

the proxy statement or in the form of proxy. A proxy may also

confer discretionary authority with respect to any proposal omitted

from the proxy statement and form of proxy pursuant to Paragraph H.

4. No proxy shall confer authority (a) to vote for the

election of any person to any office for which a bona fide nominee

is not named in the proxy statement, or (b) to vote at any annual

meeting other than the next annual meeting (or any adjournment

thereof) to be held after the date on which the proxy statement and

form of proxy are first sent or given to stockholders.

5. The proxy statement or form of proxy shall provide, subject

to reasonable specified conditions, that the proxy will be voted and

that where the person solicited specifies by means of ballot

provided pursuant to subparagraph 2 of this Paragraph F a choice

with respect to any matter to be acted upon, the vote will be in

accordance with the specifications so made.

Oklahoma Statutes - Title 36. Insurance Page 644

6. The information included in the proxy statement shall be

clearly presented and the statements made shall be divided into

groups according to subject matter, with appropriate headings. All

printed proxy statements shall be clearly and legibly presented.

G. Material required to be filed.

1. Two preliminary copies of the proxy statement and form of

proxy and any other soliciting material to be furnished to

stockholders concurrently therewith shall be filed with the

Commissioner at least ten days prior to the date definitive copies

of such material are first sent or given to stockholders, or such

shorter period prior to that date as the Commissioner may authorize

upon a written showing of good cause therefor.

2. Two preliminary copies of any additional soliciting

material relating to the same meeting or subject matter to be

furnished to stockholders subsequent to the proxy statements shall

be filed with the Commissioner at least two days (exclusive of

Saturdays, Sundays or holidays) prior to the date copies of this

material are first sent or given to stockholders or a shorter period

prior to such date as the Commissioner may authorize upon a written

showing of good cause therefor.

3. Two definitive copies of the proxy statement, form of proxy

and all other soliciting material, in the form in which this

material is furnished to stockholders, shall be filed with, or

mailed for filing to, the Commissioner not later than the date such

material is first sent or given to the stockholders.

4. Where any proxy statement, form of proxy or other material

filed pursuant to this act is amended or revised, two of the copies

shall be marked to clearly show such changes.

5. Copies of replies to inquiries from stockholders requesting

further information and copies of communications which do no more

than request that forms of proxy theretofore solicited be signed and

returned need not be filed pursuant to this section.

6. Notwithstanding the provisions of subparagraphs 1 and 2

hereof and of subparagraph 5 of Paragraph K, copies of soliciting

material in the form of speeches, press releases and radio or

television scripts may, but need not, be filed with the Commissioner

prior to use or publication. Definitive copies, however, shall be

filed with or mailed for filing to the Commissioner as required by

subparagraph 3 of this Paragraph G not later than the date such

material is used or published. The provisions of subparagraphs 1

and 2 of this Paragraph G and subparagraph 5 of Paragraph K shall

apply, however, to any reprints or reproductions of all or any part

of such material.

H. Proposals of stockholders.

Proposals of stockholders shall be presented in such form and

detail as may be approved by the Commissioner.

I. False or misleading statements.

Oklahoma Statutes - Title 36. Insurance Page 645

No solicitation subject to this act shall be made by means of

any proxy statement, form of proxy, notice of meeting, or other

communication, written or oral, containing any statement which at

the time and in the light of the circumstances under which it is

made, is false or misleading with respect to any material fact, or

which omits to state any material fact necessary in order to make

the statements therein not false or misleading or necessary to

correct any statement in any earlier communication with respect to

the solicitation of a proxy for the same meeting or subject matter

which has become false or misleading.

J. Prohibition of certain solicitations.

No person making a solicitation which is subject to this act

shall solicit any undated or postdated proxy or any proxy which

provides that it shall be deemed to be dated as of any date

subsequent to the date on which it is signed by the stockholder.

K. Special provisions applicable to election contests.

1. Applicability.

This Paragraph shall apply to any solicitation subject to this

act by any person or group for the purpose of opposing a

solicitation subject to this act by any other person or group with

respect to the election or removal of directors at any annual or

special meeting of stockholders.

2. Participant or participant in a solicitation.

(a) For purposes of this Paragraph the term "participant" and

"participant in a solicitation" include: (i) the insurer; (ii) any

director of the insurer, and any nominee for whose election as a

director proxies are solicited; (iii) any other person, acting alone

or with one or more persons, committees or groups, in organizing,

directing or financing the solicitation.

(b) For the purposes of this Paragraph K the terms

"participant" and "participant in a solicitation" do not include:

(i) a bank, broker or dealer who, in the ordinary course of

business, lends money or executes orders for the purchase or sale of

stock and who is not otherwise a participant; (ii) any person or

organization retained or employed by a participant to solicit

stockholders or any person who merely transmits proxy soliciting

material or performs ministerial or clerical duties; (iii) any

person employed in the capacity of attorney, accountant, or

advertising, public relations or financial adviser, and whose

activities are limited to the performance of his duties in the

course of such employment; (iv) any person regularly employed as an

officer or employee of the insurer or any of its subsidiaries or

affiliates who is not otherwise a participant; or (v) any officer or

director of, or any person regularly employed by any other

participant, if such officer, director, or employee is not otherwise

a participant.

3. Filing of required information.

Oklahoma Statutes - Title 36. Insurance Page 646

(a) No solicitation subject to this section shall be made by

any person other than the management of an insurer unless at least

five business days prior thereto, or such shorter period as the

Commissioner may authorize upon a written showing of good cause

therefor, there has been filed with the Commissioner, by or on

behalf of each participant in such solicitation, a statement in

duplicate containing the information specified and described in

Items 1 to 6 inclusive, as set forth in subparagraph (g) of this

subparagraph 3 and which are hereinafter referred to as Schedule B.

A copy of any material proposed to be distributed to stockholders in

furtherance of such solicitation also shall be filed as in this

subparagraph provided. Where preliminary copies of any materials

are filed, distribution to stockholders should be deferred until the

Commissioner's comments mailed within fourteen working days after

the filing have been received and complied with.

(b) Within five business days after a solicitation subject to

this Paragraph K is made by the management of an insurer, or such

longer period as the Commissioner may authorize upon a written

showing of good cause therefor, there shall be filed with the

Commissioner by or on behalf of each participant in such

solicitation, other than the insurer, and by or on behalf of each

management nominee for director, a statement in duplicate containing

the information specified by Schedule B.

(c) If any solicitation on behalf of management or any other

person has been made, or if proxy material is ready for

distribution, prior to a solicitation subject to this section in

opposition thereto, a statement in duplicate containing the

information specified in Schedule B shall be filed with the

Commissioner, by or on behalf of each participant in such prior

solicitation, other than the insurer, as soon as reasonably

practicable after the commencement of the solicitation in opposition

thereto.

(d) If, subsequent to the filing of the statements required by

paragraphs (a), (b) and (c) of this subparagraph 3, additional

persons become participants in a solicitation subject to this rule,

there shall be filed with the Commissioner, by or on behalf of each

such person, a statement in duplicate containing the information

specified by Schedule B, within three business days after such

person becomes a participant, or such longer period as the

Commissioner may authorize upon a written showing of good cause

therefor.

(e) If any material change occurs in the facts reported in any

statement filed by or on behalf of any participant, an appropriate

amendment to such statement shall be filed promptly with the

Commissioner.

(f) Each statement and amendment thereto filed pursuant to this

paragraph shall be part of the public files of the Commissioner.

Oklahoma Statutes - Title 36. Insurance Page 647

(g) Schedule B. Information to be included in statements filed

by or on behalf of a participant (other than the insurer) in a proxy

solicitation in an election contest is as follows:

Item 1. Insurer.

State the name and address of the insurer.

Item 2. Identity and background.

(a) State the following:

(1) Your name and business address. (2) Your present principal

occupation or employment and the name, principal business and

address of any corporation or other organization in which such

employment is carried on.

(b) State the following: (1) Your residence address.

(2) Information as to all material occupations, positions,

offices or employments during the last ten years, giving starting

and ending dates of each and the name, principal business and

address of any business corporation or other business organization

in which each such occupation, position, office or employment was

carried on.

(c) State whether or not you are or have been a participant in

any other proxy contest involving this company or other companies

within the past ten years. If so, identify the principals, the

subject matter and your relationship to the parties and the outcome.

(d) State whether or not, during the past ten years, you have been

convicted in a criminal proceeding (excluding traffic violations or

similar misdemeanors) and, if so, give dates, nature of conviction,

name and location of court, and penalty imposed or other disposition

of the case. A negative answer to this subitem need not be included

in the proxy statement or other proxy soliciting material.

Item 3. Interest in stock of the insurer.

(a) State the amount of each class of stock of the insurer

which you own beneficially, directly or indirectly.

(b) State the amount of each class of stock of the insurer

which you own of record but not beneficially.

(c) State with respect to the stock specified in (a) and (b)

the amounts acquired within the past two years, the dates of

acquisition and the amounts acquired on each date.

(d) If any part of the purchase price or market value of any of

the stock specified in paragraph (c) is represented by funds

borrowed or otherwise obtained for the purpose of acquiring or

holding such stock, so state and indicate the amount of the

indebtedness as of the latest practicable date. If such funds were

borrowed or obtained otherwise than pursuant to a margin account or

bank loan in the regular course of business of a bank, broker or

dealer, briefly describe the transaction, and state the names of the

parties.

(e) State whether or not you are a party to any contracts,

arrangements or understandings with any person with respect to any

Oklahoma Statutes - Title 36. Insurance Page 648

stock of the insurer, including but not limited to joint ventures,

loan or option arrangements, puts or calls, guarantees against loss

or guarantees of profits, division of losses or profits, or the

giving or withholding of proxies. If so name the persons with whom

such contracts, arrangements, or understanding exist and give the

details thereof.

(f) State the amount of stock of the insurer owned

beneficially, directly or indirectly, by each of your associates and

the names and address of each such associate.

(g) State the amount of each class of stock of any parent,

subsidiary or affiliate of the insurer which you own beneficially,

directly or indirectly.

Item 4. Further matters.

(a) Describe the time and circumstances under which you became

a participant in the solicitation and state the nature and extent of

your activities or proposed activities as a participant.

(b) Describe briefly, and where practicable state the

approximate amount of, any material interest, direct or indirect, of

yourself and of each of your associates in any material transactions

since the beginning of the company's last fiscal year, or in any

material proposed transactions, to which the company or any of its

subsidiaries or affiliates was or is to be a party.

(c) State whether or not you or any of your associates have any

arrangement or understanding with any person;

(1) With respect to any future employment by the insurer or its

subsidiaries or affiliates; or

(2) With respect to any future transactions to which the

insurer or any of its subsidiaries or affiliates will or may be a

party.

If so, describe such arrangement or understanding and state the

names of the parties thereto.

Item 5. Additional information.

Additional information in such form and detail as the

Commissioner may prescribe or request shall be furnished and

included.

Item 6. Signature.

The statement shall be dated and signed in the following

manner:

I certify that the statements made in this statement are

true, complete, and correct, to the best of my knowledge and belief.

______________ ____________________

(Date) (Signature of

participant or

authorized

representative)

4. Solicitations prior to furnishing required written proxy

statement.

Oklahoma Statutes - Title 36. Insurance Page 649

Notwithstanding the provisions of subparagraph 1 of Paragraph

5, a solicitation subject to this section may be made prior to

furnishing stockholders a written proxy statement containing the

information specified in Schedule A with respect to such

solicitation, provided that:

(a) The statements required by subparagraph 3 of this Paragraph

K are filed by or on behalf of each participant in such

solicitation.

(b) No form of proxy is furnished to stockholders prior to the

time the written proxy statement required by subsection one of

section five is furnished to such persons; provided, however, that

this paragraph (b) shall not apply where a proxy statement then

meeting the requirements of Schedule A has been furnished to

stockholders.

(c) At least the information specified in paragraphs (b) and

(c) of the statements required by subparagraph 3 of this Paragraph K

to be filed by each participant, or an appropriate summary thereof,

are included in each communication sent or given to stockholders in

connection with the solicitation.

(d) A written proxy statement containing the information

specified in Schedule A with respect to a solicitation is sent or

given stockholders at the earliest practicable date.

5. Solicitations prior to furnishing required written proxy

statement - Filing requirements.

Two copies of any soliciting material proposed to be sent or

given to stockholders prior to the furnishing of the written proxy

statement required by subparagraph 1 of Paragraph E shall be filed

with the Commissioner in preliminary form at least five business

days prior to the date definitive copies of such material are first

sent or given to such persons, or shorter period as the Commissioner

may authorize upon a written showing of good cause therefor.

6. Application of Paragraph K to report.

Notwithstanding the provisions of subparagraphs 2 and 3 of

Paragraph E, two copies of any portion of the report referred to in

subparagraph 2 of Paragraph E which comments upon or refers to any

solicitation subject to this Paragraph, or to any participant in any

such solicitation, other than the solicitation by the management,

shall be filed with the Commissioner as proxy material subject to

this regulation. Such portion of the report shall be filed with the

Commissioner in preliminary form at least five business days prior

to the date copies of the report are first sent or given to

stockholders.

L. Fee imposed on insurers - Purpose - Dedication

For the purpose of carrying into effect the provisions of this

Act, there is hereby levied upon each insurer subject to this Act,

an annual fee of One Hundred Dollars ($100.00). Such fee shall be

due and payable on October 1, 1965, and on July 15 of each

Oklahoma Statutes - Title 36. Insurance Page 650

succeeding year and shall be paid to the Insurance Commissioner. All

moneys collected by the Commissioner from the fees herein provided

for, shall be deposited with the State Treasurer, who shall place

the same to the credit of the Insurance Commissioner, in a

depository fund to be known as the "Solicitations and Trading

Regulatory Fund", under and subject exclusively to the control of

the Commissioner for the purpose of fulfilling and accomplishing the

conditions and purposes of this Act. The Commissioner shall employ

and fix the salaries of such employees as are necessary to carry out

the purpose of this Act and the administration thereof. All

necessary salaries, and expenses incurred by the Commissioner in the

performance of the duties placed upon him under this Act shall be a

proper charge against, and shall be paid from such fund upon proper

vouchers approved by the Commissioner. At the close of each fiscal

year hereafter the Commissioner shall file with the State Auditor

and Inspector a true and correct report of all fees collected by him

during the previous fiscal year. All of said fees are hereby

dedicated, appropriated and pledged to the accomplishment and

fulfillment of the purposes of this Act, provided however, any of

said moneys not so expended at the end of each fiscal year shall

revert to the general revenue fund of this State.

M. Commissioner empowered to make rules.

The Insurance Commissioner is hereby authorized and empowered

to promulgate such reasonable rules and regulations as are necessary

to implement the purposes of this Act.

N. Definition of terms.

The term "insurer" when used in this Act means any domestic

stock insurer. The term "Commissioner" when used in this Act means

the Insurance Commissioner of the State of Oklahoma created by this

Act. The term "person" when used in this Act includes any firm,

partnership, association or corporation.
Okla. Stat. tit. 36, § 36-307.3 — OK Code / Title 36 / Section 36-307.3
State Insurance Commissioner Revolving Fund
Status: in_force

A. Effective July 1, 2009, there is hereby created in the State

Treasury a revolving fund for the Insurance Commissioner called the

State Insurance Commissioner Revolving Fund. The revolving fund

shall be used to fund the operations of the Office of the Insurance

Commissioner.

1. Notwithstanding any other law to the contrary, the revolving

fund shall consist of and consolidate all funds that are or have

been paid or collected by the Insurance Commissioner pursuant to the

Oklahoma Statutes - Title 36. Insurance Page 59

laws of this state and the rules of the Insurance Department except

that the revolving fund shall not include:

a. premium taxes,

b. monies transferred to the Attorney General's Insurance

Fraud Unit Revolving Fund pursuant to Section 362 of

this title,

c. funds paid to and collected pursuant to the Oklahoma

Certified Real Estate Appraisers Act, Sections 858-700

through 858-732 of Title 59 of the Oklahoma Statutes,

d. health carrier access payments paid to and collected

by the Insurance Commissioner and deposited into the

Health Carrier Access Payment Revolving Fund,

e. recoveries obtained as a result of insurance-related

crimes, and other fines, late fees, and penalties

assessed and collected, and

f. monies collected for or received from the Workers'

Compensation Commission.

2. The revolving fund shall be a continuing fund, not subject

to fiscal year limitations. Expenditures from the revolving fund

shall be made pursuant to the laws of this state and the statutes

relating to the Insurance Department. Warrants for expenditures

from the revolving fund shall be drawn by the State Treasurer, based

on claims signed by an authorized employee or employees of the

Insurance Department and filed with the Director of the Office of

Management and Enterprise Services.

B. All funds collected by the Insurance Commissioner shall be

paid into the State Treasury weekly.

C. After the effective date of this act, the State Treasury is

authorized and directed to deduct from the funds paid or collected

by the Insurance Commissioner a sum equal to seventy-six and one-

half percent (76.5%) of the payment and place the same to the credit

of the General Revenue Fund of the state. The State Treasurer shall

place to the credit of the State Insurance Commissioner Revolving

Fund the remainder of the funds so paid and collected by the

Insurance Commissioner.
Okla. Stat. tit. 36, § 36-963 — OK Code / Title 36 / Section 36-963
Insurable property defined
Status: in_force

For the purposes of this act, the term "insurable property"

includes single-family residential property. Insurable property

also includes modular homes satisfying the codes, standards or

techniques as provided in Section 1 or 2 of this act. Manufactured

homes or mobile homes are excluded, except as expressly provided in

subsection B of Section 2 of this act.
Okla. Stat. tit. 36, § 36-6462 — OK Code / Title 36 / Section 36-6462
License required before commencing business activity –
Status: in_force

Soliciting liability insurance for purchasing groups.

A. No person, firm, association or corporation shall act or aid

in any manner in soliciting, negotiating, or procuring liability

insurance in this state from a risk retention group unless such

person, firm, association or corporation is licensed as an insurance

agent or a broker, pursuant to the Oklahoma Insurance Code.

B. 1. No person, firm, association or corporation shall act or

aid in any manner in soliciting, negotiating, or procuring liability

insurance coverage in this state for a purchasing group from an

authorized insurer or a risk retention group unless such person,

firm, association or corporation is licensed as an insurance agent a

broker pursuant to the Oklahoma Insurance Code.

2. No person, firm, association or corporation shall act or aid

in any manner in soliciting, negotiating, or procuring liability

insurance coverage in this state from any member of a purchasing

group under a policy of a purchasing group unless such person, firm,

association or corporation is licensed as an insurance agent or a

broker pursuant to the Oklahoma Insurance Code.

3. No person, firm, association or corporation shall act or aid

in any manner in soliciting, negotiating or procuring liability

insurance from an insurer not authorized to do business in this

state on behalf of a purchasing group located in this state unless

the person, firm, association or corporation is licensed as a

surplus lines agent or excess line broker pursuant to the Oklahoma

Insurance Code.

C. For purposes of acting as an agent or broker for a risk

retention group or purchasing group pursuant to subsections A and B

of this section, the requirement of residence in this state shall

not apply.

Oklahoma Statutes - Title 36. Insurance Page 1208

D. Every person licensed as an agent or broker as required in

this section, on business placed with risk retention groups or

written through a purchasing group, shall inform each prospective

insured of the provisions of the notice required by the Oklahoma

Risk Retention Act.
Okla. Stat. tit. 36, § 36-660.2 — OK Code / Title 36 / Section 36-660.2
Effect of conversion
Status: in_force

A. On the effective date of a plan of reorganization, all of

the following occur:

1. The converting mutual insurer becomes a converted stock

insurer. The amended or restated articles of incorporation and

bylaws of the converting mutual insurer shall be filed with the

Oklahoma Insurance Commissioner as part of the plan and shall become

effective on the effective date of the conversion. The Insurance

Commissioner shall amend the certificate of authority of the

converting mutual insurer on the effective date of the conversion;

2. All membership interests and rights in surplus of the

converting mutual insurer are extinguished and the members of the

converting mutual insurer become members of the mutual holding

company in accordance with this act and the articles of

incorporation and bylaws of the mutual holding company;

3. Any owner of one or more policies of insurance, other than a

policy of reinsurance, issued by the converted stock insurer after

the effective date of the conversion and, if permitted under the

articles of incorporation or bylaws of the mutual holding company,

Oklahoma Statutes - Title 36. Insurance Page 167

any holder of one or more policies of insurance, other than a policy

of reinsurance, issued by any other insurer that is a direct or

indirect subsidiary or affiliate of the mutual holding company after

the effective date of the reorganization becomes a member of the

mutual holding company;

4. The mutual holding company or, if created, an intermediate

stock holding company acquires and shall retain all shares of the

voting stock of the converted stock insurer;

5. The mutual holding company acquires and shall retain all

shares of the voting stock of any intermediate stock holding

company; and

6. A converted stock insurer continues the corporate existence

of the converting mutual insurer. Except as provided in the plan,

the conversion does not annul, modify or change any existing license

or other authority or any of the existing civil actions, rights,

contracts or liabilities of the converting mutual insurer. The

converted stock insurer retains all property, debts and choices in

action and every other interest belonging to the converting mutual

insurer before the conversion without further action needed. On and

after the effective date of the conversion, the converted stock

insurer may exercise all rights and powers conferred and shall

perform all duties imposed by law on insurers writing the classes of

insurance written by the converted stock insurer, shall retain the

rights and contracts of the converting mutual insurer existing

immediately before the conversion and shall be subject to all

obligations and liabilities of the converting mutual insurer

existing immediately before the conversion, subject to the terms of

the plan.

B. Any intermediate stock holding company created at the time

of reorganization to hold the stock of the converting mutual insurer

shall be incorporated under Title 18 of the Oklahoma Statutes and

may engage in any business or activity permitted by Title 18 of the

Oklahoma Statutes.

C. The converted stock insurer and any intermediate stock

holding company may issue to third parties debt securities, stock

other than voting stock, and voting stock if all of the following

apply:

1. No shares of stock representing a majority of the voting

power of all issued and outstanding voting stock of either the

converted stock insurer or the intermediate stock holding company,

if any, are issued to third parties; and

2. A majority of the voting stock of the converted stock

insurance company is at all times owned by the mutual holding

company or by the intermediate stock holding company, a majority of

whose voting stock is held by the mutual holding company, and such

majority interest in the converted stock insurance company and any

intermediate stock holding company is not conveyed, transferred,

Oklahoma Statutes - Title 36. Insurance Page 168

assigned, pledged, subjected to a security interest or lien, placed

in a voting trust, encumbered or otherwise hypothecated or alienated

by the mutual holding company or by the intermediate stock holding

company. Any conveyance, transfer, assignment, pledge, security

interest, lien, placement in a voting trust, encumbrance or

hypothecation or alienation of, in or on a majority of the voting

shares of the converted stock insurer or the intermediate stock

holding company in violation of this paragraph is void in inverse

chronological order as to the shares necessary to constitute a

majority of such voting stock.

D. Unless otherwise specified in the plan, the directors and

officers of the converting mutual insurer shall serve as directors

and officers of the mutual holding company, any intermediate stock

holding company and the converted stock insurer until new directors

and officers are elected.
Okla. Stat. tit. 36, § 36-121 — OK Code / Title 36 / Section 36-121
Computation of time periods
Status: in_force

In computing any period of time prescribed or allowed by this

title, by the rules of the Insurance Commissioner, or by any

applicable statute, the day of the act, event or default from which

the designated period of time begins to run shall not be included.

The last day of the period so computed shall be included, unless it

is a Saturday, a Sunday, a legal holiday as defined by the Oklahoma

Statutes or any day when the office of the Commissioner does not

remain open for public business until 4:00 p.m., in which event the

period runs until the end of the next day when the office of the

Commissioner is open until 4:00 p.m. When the period of time

prescribed or allowed is less than seven (7) days, intermediate

Saturdays, Sundays and legal holidays shall be excluded in the

computation.
Okla. Stat. tit. 36, § 36-4421 — OK Code / Title 36 / Section 36-4421
Short title
Status: in_force

Section 4421 et seq. of this title shall be a part of the

Insurance Code and shall be known and may be cited as the "Long-Term

Care Insurance Act".
Okla. Stat. tit. 36, § 36-4020 — OK Code / Title 36 / Section 36-4020
Misstatement of age; annuities
Status: in_force

In an annuity or pure endowment contract, other than a

reversionary, survivorship, or group annuity, there shall be a

provision that if the age of the person or persons upon whose life

or lives the contract is made, or any of them, has been misstated,

the amount payable or benefits accruing under the contract shall be

such as the stipulated payment or payments to the insurer would have

purchased according to the correct age; and that if the insurer

shall make or has made any overpayment or overpayments on account of

any such misstatement, the amount thereof, with interest at the rate

to be specified in the contract but not exceeding six percent (6%)

per annum, may be charged against the current or next succeeding

payment or payments to be made by the insurer under the contract.
Okla. Stat. tit. 36, § 36-4061 — OK Code / Title 36 / Section 36-4061
Definitions - Reserves and related actuarial items - Appropriate computation and
Status: in_force

adequacy - Periodic opinion and memorandum of qualified actuary - Requirements - Liability -Appropriate computation and adequacy - Periodic opinion and

memorandum of qualified actuary - Requirements - Liability -

Actuarial Opinion of Reserves - Confidentiality.

A. Definitions. For the purposes of this section, the

following definitions shall apply on or after the operative date of

the valuation manual:

1. "Accident and health insurance" means contracts that

incorporate morbidity risk and provide protection against economic

loss resulting from accident, sickness, or medical conditions and as

may be specified in the valuation manual;

2. "Appointed actuary" means a qualified actuary who is

appointed in accordance with the valuation manual to prepare the

actuarial opinion required in this section;

3. "Company" means an entity which:

a. has written, issued, or reinsured life insurance

contracts, accident and health insurance contracts, or

deposit-type contracts in this state and has at least

one such policy in force or on claim, or

b. has written, issued, or reinsured life insurance

contracts, accident and health insurance contracts, or

deposit-type contracts in any state and is required to

hold a certificate of authority to write life

insurance, accident and health insurance, or deposit-

type contracts in this state;

4. "Deposit-type contract" means contracts that do not

incorporate mortality or morbidity risks and as may be specified in

the valuation manual;

5. "Life insurance" means contracts that incorporate mortality

risk, including annuity and pure endowment contracts, and as may be

specified in the valuation manual;

6. "NAIC" means the National Association of Insurance

Commissioners;

Oklahoma Statutes - Title 36. Insurance Page 905

7. "Principle-based valuation" means a reserve valuation that

uses one or more methods or one or more assumptions determined by

the insurer and is required to comply with subsection Q of Section

1510 of this title as specified in the valuation manual;

8. "Qualified actuary" means an individual who is qualified to

sign the applicable statement of actuarial opinion in accordance

with the American Academy of Actuaries qualification standards for

actuaries signing such statements and who meets the requirements

specified in the valuation manual; and

9. "Valuation manual" means the manual of valuation

instructions adopted by the NAIC as specified in Section 1510 of

this title or as subsequently amended.

B. Actuarial Opinion Beginning January 1, 1998, and Prior to

the Operative Date of the Valuation Manual.

1. Every life insurance company doing business in this state

shall annually, and quarterly if required by the Insurance

Commissioner, submit the opinion of a qualified actuary as to

whether the reserves and related actuarial items held in support of

the policies and contracts specified by the Insurance Commissioner

by rule are computed appropriately, are based on assumptions which

satisfy contractual provisions, are consistent with prior reported

accounts and comply with applicable laws of this state. The

Commissioner by rule shall define the specifics of this opinion and

add any other items deemed to be necessary to its scope.

2. a. Every life insurance company, except as exempted by or

pursuant to rule, shall also annually, and quarterly

if required by the Insurance Commissioner, include in

the opinion required by paragraph 1 of this

subsection, an opinion of the same qualified actuary

as to whether the reserves and related actuarial items

held in support of the policies and contracts

specified by the Commissioner by rule, when considered

in light of the assets held by the company with

respect to the reserves and related actuarial items,

including but not limited to the investment earnings

on the assets and the considerations anticipated to be

received and retained under the policies and

contracts, make adequate provision for the company's

obligations under the policies and contracts,

including but not limited to the benefits under and

expenses associated with the policies and contracts.

b. The Commissioner may provide by rule for a transition

period for establishing any higher reserves which the

qualified actuary may deem necessary in order to

render the opinion required by this section.

3. Each opinion required by paragraph 2 of this subsection

shall be accompanied by a memorandum, in form and substance

Oklahoma Statutes - Title 36. Insurance Page 906

acceptable to the Commissioner as specified by rule, prepared to

support each actuarial opinion. If the insurance company fails to

provide a supporting memorandum at the request of the Commissioner

within a period specified by rule, or the Commissioner determines

that the supporting memorandum provided by the insurance company

fails to meet the standards prescribed by the rules or is otherwise

unacceptable to the Commissioner, the Commissioner may engage a

qualified actuary at the expense of the company to review the

opinion and the basis for the opinion and prepare such supporting

memorandum as is required by the Commissioner.

4. Every opinion shall be governed by the following provisions:

a. the opinion shall be submitted with the annual

statement and quarterly statement, if a quarterly

statement is required by the Commissioner, reflecting

the valuation of such reserve liabilities for each

year,

b. the opinion shall apply to all business in force

including individual and group health insurance plans,

in form and substance acceptable to the Commissioner

as specified by rule,

c. the opinion shall be based on standards adopted from

time to time by the Actuarial Standards Board and on

such additional standards as the Commissioner may by

rule prescribe,

d. in the case of an opinion required to be submitted by

a foreign or alien company, the Commissioner may

accept the opinion filed by that company with the

insurance supervisory official of another state if the

Commissioner determines that the opinion reasonably

meets the requirements applicable to a company

domiciled in this state,

e. except in cases of fraud or willful misconduct, the

qualified actuary shall not be liable for damages to

any person, other than the insurance company and the

Commissioner, for any act, error, omission, decision

or conduct with respect to the actuary's opinion, and

f. disciplinary action by the Commissioner against the

company or the qualified actuary shall be defined in

rules by the Commissioner.

5. a. Any memorandum in support of the opinion, and any

other material provided by the company to the

Commissioner in connection therewith, shall be kept

confidential by the Commissioner and shall not be made

public and shall not be subject to subpoena, other

than for the purpose of defending an action seeking

damages from any person by reason of any action

required by this section or by rules promulgated

Oklahoma Statutes - Title 36. Insurance Page 907

hereunder; provided, however, that the memorandum or

other material may otherwise be released by the

Commissioner as follows:

(1) with the written consent of the company, or

(2) to the American Academy of Actuaries upon request

stating that the memorandum or other material is

required for the purpose of professional

disciplinary proceedings and setting forth

procedures satisfactory to the Commissioner for

preserving the confidentiality of the memorandum

or other material.

b. Once any portion of the confidential memorandum is

cited by the company in its marketing or is cited

before any governmental agency other than a state

insurance department or is released by the company to

the news media, all portions of the confidential

memorandum shall be no longer confidential.

6. For the purposes of this section, "qualified actuary" means

a member in good standing of the American Academy of Actuaries who

meets the requirements set forth in rules promulgated by the

Insurance Commissioner.

C. Actuarial Opinion of Reserves after the Operative Date of

the Valuation Manual.

1. Every company with outstanding life insurance contracts,

accident and health insurance contracts or deposit-type contracts in

this state and subject to regulation by the commissioner shall

annually, and quarterly if required by the Insurance Commissioner,

submit the opinion of the appointed actuary as to whether the

reserves and related actuarial items held in support of the policies

and contracts are computed appropriately, are based on assumptions

which satisfy contractual provisions, are consistent with prior

reported accounts and comply with applicable laws of this state.

The valuation manual will prescribe the specifics of this opinion

including any items deemed to be necessary to its scope.

2. Every life insurance company with outstanding life insurance

contracts, accident health insurance contracts or deposit type

contracts in this state and subject to regulation by the

commissioner, except as exempted in the valuation manual, shall also

annually, and quarterly if required by the Insurance Commissioner,

include in the opinion required by paragraph 1 of this subsection,

an opinion of the same appointed actuary as to whether the reserves

and related actuarial items held in support of the policies and

contracts specified in the valuation manual, when considered in

light of the assets held by the company with respect to the reserves

and related actuarial items, including, but not limited to, the

investment earnings on the assets and the considerations anticipated

to be received and retained under the policies and contracts, make

Oklahoma Statutes - Title 36. Insurance Page 908

adequate provision for the company's obligations under the policies

and contracts, including, but not limited to, the benefits under and

expenses associated with the policies and contracts.

3. Each opinion required by paragraph 2 of this subsection

shall be accompanied by a memorandum, in form and substance as

specified in the valuation manual, and acceptable to the

Commissioner, prepared to support each actuarial opinion. If the

insurance company fails to provide a supporting memorandum at the

request of the Commissioner within a period specified in the

valuation manual or is otherwise unacceptable to the Commissioner,

the Commissioner may engage a qualified actuary at the expense of

the company to review the opinion and the basis for the opinion and

prepare such supporting memorandum as is required by the

Commissioner.

4. Every opinion shall be governed by the following provisions:

a. the opinion shall be in form and substance as

specified in the valuation manual and acceptable to

the Commissioner,

b. the opinion shall be submitted with the annual

statement and quarterly statement, if a quarterly

statement is required by the Commissioner, reflecting

the valuation of such reserve liabilities for each

year ending on or after the operative date of the

valuation manual,

c. the opinion shall apply to all policies and contracts

subject to paragraph 2 of this subsection, plus other

actuarial liabilities as may be specified in the

valuation manual,

d. the opinion shall be based on standards adopted from

time to time by the Actuarial Standards Board or its

successor, and on such additional standards as may be

prescribed in the valuation manual,

e. in the case of an opinion required to be submitted by

a foreign or alien company, the Commissioner may

accept the opinion filed by that company with the

insurance supervisory official of another state if the

Commissioner determines that the opinion reasonably

meets the requirements applicable to a company

domiciled in this state,

f. except in cases of fraud or willful misconduct, the

appointed actuary shall not be liable for damages to

any person, other than the insurance company and the

Commissioner, for any act, error, omission, decision

or conduct with respect to the appointed actuary's

opinion, and

Oklahoma Statutes - Title 36. Insurance Page 909

g. disciplinary action by the Commissioner against the

company or the appointed actuary shall be defined in

rules by the Commissioner.

D. Confidentiality.

1. For purposes of this subsection "confidential information"

means:

a. a memorandum in support of an opinion submitted under

this section and any other documents, materials and

other information, including, but not limited to, all

working papers, and copies thereof, created, produced

or obtained by or disclosed to the commissioner or any

other person in connection with such memorandum,

b. all documents, materials and other information,

including, but not limited to, all working papers, and

copies thereof, created, produced or obtained by or

disclosed to the commissioner or any other person in

the course of an examination made under paragraph 6 of

subsection P of Section 1510 of this title; provided,

however, that if an examination report or other

material prepared in connection with an examination

made under Sections 309.1 through 309.7 of this title

is not held as private and confidential information

under Sections 309.1 through 309.7 of this title, an

examination report or other material prepared in

connection with an examination made under paragraph 6

of subsection P of Section 1510 of this title shall

not be "Confidential Information" to the same extent

as if such examination report or other material had

been prepared under Sections 309.1 through 309.7 of

this title,

c. any reports, documents, materials and other

information developed by a company in support of, or

in connection with, an annual certification by the

company under subparagraph (b) of paragraph 2 of

subsection Q of Section 1510 of this title evaluating

the effectiveness of the company's internal controls

with respect to a principle-based valuation and any

other documents, materials and other information,

including, but not limited to, all working papers, and

copies thereof, created, produced or obtained by or

disclosed to the commissioner or any other person in

connection with such reports, documents, materials and

other information,

d. any principle-based valuation report developed under

subparagraph (c) of paragraph 2 of subsection Q of

Section 1510 of this title and any other documents,

materials and other information, including, but not

Oklahoma Statutes - Title 36. Insurance Page 910

limited to, all working papers, and copies thereof,

created, produced or obtained by or disclosed to the

commissioner or any other person in connection with

such report, and

e. any documents, materials, data and other information

submitted by a company under subsection R of Section

1510 of this title, collectively, "experience data",

and any other documents, materials, data and other

information, including, but not limited to, all

working papers, and copies thereof, created or

produced in connection with such experience data, in

each case that include any potentially company-

identifying or personally identifiable information,

that is provided to or obtained by the commissioner,

together with any "experience data", the "experience

materials", and any other documents, materials, data

and other information, including, but not limited to,

all working papers, and copies thereof, created,

produced or obtained by or disclosed to the

commissioner or any other person in connection with

such experience materials.

2. Privilege for, and Confidentiality of, Confidential

Information.

a. except as provided in this subsection, a company's

Confidential Information is confidential by law and

privileged, and shall not be subject to Oklahoma Open

Records Act, shall not be subject to subpoena and

shall not be subject to discovery or admissible in

evidence in any private civil action; provided,

however, that the commissioner is authorized to use

the Confidential Information in the furtherance of any

regulatory or legal action brought against the company

as a part of the commissioner's official duties,

b. neither the commissioner nor any person who received

Confidential Information while acting under the

authority of the commissioner shall be permitted or

required to testify in any private civil action

concerning any Confidential Information,

c. in order to assist in the performance of the

commissioner's duties, the commissioner may share

Confidential Information:

(1) with other state, federal and international

regulatory agencies and with the NAIC and its

affiliates and subsidiaries,

(2) in the case of Confidential Information specified

in subparagraphs (a) and (d) of paragraph 1 of

this subsection, with the Actuarial Board for

Oklahoma Statutes - Title 36. Insurance Page 911

Counseling and Discipline or its successor upon

request stating that the Confidential Information

is required for the purpose of professional

disciplinary proceedings and with state, federal

and international law enforcement officials, and

(3) in the case of (1) and (2), provided that such

recipient agrees, and has the legal authority to

agree, to maintain the confidentiality and

privileged status of such documents, materials,

data and other information in the same manner and

to the same extent as required for the

commissioner.

d. the commissioner may receive documents, materials,

data and other information, including otherwise

confidential and privileged documents, materials, data

or information, from the NAIC and its affiliates and

subsidiaries, from regulatory or law enforcement

officials of other foreign or domestic jurisdictions

and from the Actuarial Board for Counseling and

Discipline or its successor and shall maintain as

confidential or privileged any document, material,

data or other information received with notice or the

understanding that it is confidential or privileged

under the laws of the jurisdiction that is the source

of the document, material or other information,

e. the commissioner may enter into agreements governing

sharing and use of information consistent with

paragraph 2 of this subsection,

f. no waiver of any applicable privilege or claim of

confidentiality in the Confidential Information shall

occur as a result of disclosure to the commissioner

under this section or as a result of sharing as

authorized in subparagraph (c) of paragraph 2 of this

subsection,

g. a privilege established under the law of any state or

jurisdiction that is substantially similar to the

privilege established under paragraph 2 of this

subsection shall be available and enforced in any

proceeding in, and in any court of, this state,

h. in this subsection "regulatory agency", "law

enforcement agency" and the "NAIC" include, but are

not limited to, their employees, agents, consultants

and contractors.

3. Notwithstanding paragraph 2 of this subsection, any

Confidential Information specified in subparagraphs a and d of

paragraph 1 of this subsection:

Oklahoma Statutes - Title 36. Insurance Page 912

a. may be subject to subpoena for the purpose of

defending an action seeking damages from the appointed

actuary submitting the related memorandum in support

of an opinion submitted under this section or

principle-based valuation report developed under

subparagraph c of paragraph 2 of subsection Q of

Section 1510 of this title by reason of an action

required by Section 1510 of this title or by rules

promulgated hereunder,

b. may otherwise be released by the commissioner with the

written consent of the company, and

c. once any portion of a memorandum in support of an

opinion submitted under this section or a principle-

based valuation report developed under subparagraph c

of paragraph 2 of subsection Q of Section 1510 of this

title is cited by the company in its marketing or is

publicly volunteered to or before a governmental

agency other than a state insurance department or is

released by the company to the news media, all

portions of such memorandum or report shall no longer

be confidential.
Okla. Stat. tit. 36, § 36-1109 — OK Code / Title 36 / Section 36-1109
Validity of surplus line insurance - Notice of
Status: in_force

limitations of coverage.

A. Insurance contracts procured as surplus line coverage from

surplus lines insurers in accordance with this article shall be

fully valid and enforceable as to all parties, and shall be given

recognition in all matters and respects to the same effect as like

contracts issued by admitted insurers.

B. Insurance contracts procured as surplus line coverage shall

contain in bold-face type notification stamped by the surplus lines

licensee or broker or surplus lines insurer on the declaration page

of the policy that the contracts are not subject to the protection

of any guaranty association in the event of liquidation or

receivership of the surplus lines insurer. The Commissioner is

Oklahoma Statutes - Title 36. Insurance Page 254

hereby authorized to promulgate rules to establish further

disclosure requirements for the purpose of protecting consumers of

surplus line coverage.
Okla. Stat. tit. 36, § 36-3649 — OK Code / Title 36 / Section 36-3649
Violations - Penalties
Status: in_force

Violation of any provision of the Life, Accident and Health

Insurance Policy Language Simplification Act may result in censure

of the insurer, corporation or organization found to be in

violation, suspension or revocation of the certificate or license of

said insurer, corporation, or organization, or a fine of not more

than One Thousand Dollars ($1,000.00) per incident, or any

combination of such penalties.
Okla. Stat. tit. 36, § 36-6055 — OK Code / Title 36 / Section 36-6055
Performance of services and procedures by practitioners -
Status: in_force

Freedom of choice - Exclusions - Compensation of practitioners -

Decisions to authorize or deny emergency services.

A. Under any accident and health insurance policy, hereafter

renewed or issued for delivery from out of Oklahoma or in Oklahoma

by any insurer and covering an Oklahoma risk, the services and

procedures may be performed by any practitioner selected by the

insured, or the parent or guardian of the insured if the insured is

a minor, if the services and procedures fall within the licensed

scope of practice of the practitioner providing the same.

B. An accident and health insurance policy may:

1. Exclude or limit coverage for a particular illness, disease,

injury or condition; but, except for such exclusions or limits,

shall not exclude or limit particular services or procedures that

can be provided for the diagnosis and treatment of a covered

illness, disease, injury or condition, if such exclusion or

limitation has the effect of discriminating against a particular

class of practitioner. However, such services and procedures, in

order to be a covered medical expense, must:

a. be medically necessary,

b. be of proven efficacy, and

c. fall within the licensed scope of practice of the

practitioner providing same; and

2. Provide for the application of deductibles and copayment

provisions, when equally applied to all covered charges for services

and procedures that can be provided by any practitioner for the

diagnosis and treatment of a covered illness, disease, injury or

condition.

C. 1. Paragraph 2 of subsection B of this section shall not be

construed to prohibit differences in cost-sharing provisions such as

deductibles and copayment provisions between practitioners,

hospitals, ambulatory surgical centers, home care agencies, or other

health care providers or facilities that are licensed or certified

by the state who are participating preferred provider organization

providers and practitioners, hospitals, ambulatory surgical centers,

home care agencies, or other health care providers or facilities

Oklahoma Statutes - Title 36. Insurance Page 1070

that are licensed or certified by the state who are not

participating in the preferred provider organization, subject to the

following limitations:

a. the amount of any annual deductible per covered person

or per family for treatment in a hospital or

ambulatory surgical center that is not a preferred

provider shall not exceed three times the amount of a

corresponding annual deductible for treatment in a

hospital or ambulatory surgical center that is a

preferred provider,

b. if the policy has no deductible for treatment in a

preferred provider hospital or ambulatory surgical

center, the deductible for treatment in a hospital or

ambulatory surgical center that is not a preferred

provider shall not exceed One Thousand Dollars

($1,000.00) per covered-person visit,

c. the amount of any annual deductible per covered person

or per family treatment, other than inpatient

treatment, by a practitioner that is not a preferred

practitioner shall not exceed three times the amount

of a corresponding annual deductible for treatment,

other than inpatient treatment, by a preferred

practitioner,

d. if the policy has no deductible for treatment by a

preferred practitioner, the annual deductible for

treatment received from a practitioner that is not a

preferred practitioner shall not exceed Five Hundred

Dollars ($500.00) per covered person, and

e. the percentage amount of any coinsurance to be paid by

an insured to a practitioner, hospital or ambulatory

surgical center that is not a preferred provider shall

not exceed by more than thirty (30) percentage points

the percentage amount of any coinsurance payment to be

paid to a preferred provider.

2. The Commissioner has discretion to approve a cost-sharing

arrangement which does not satisfy the limitations imposed by this

subsection if the Commissioner finds that such cost-sharing

arrangement will provide a reduction in premium costs.

D. 1. A practitioner, hospital, ambulatory surgical center,

home care agency, or other health care provider or facility that is

licensed or certified by the state that is not a preferred provider

shall disclose to the insured, in writing, that the insured may be

responsible for:

a. higher coinsurance and deductibles, and

b. practitioner, hospital or ambulatory surgical center

charges which exceed the allowable charges of a

preferred provider, and

Oklahoma Statutes - Title 36. Insurance Page 1071

c. a good-faith estimate of the total cost to the

insured.

2. When a referral is made to a nonparticipating hospital or

ambulatory surgical center, the referring practitioner must disclose

in writing to the insured, any ownership interest in the

nonparticipating hospital or ambulatory surgical center.

E. Upon submission of a claim by a practitioner, hospital, home

care agency, ambulatory surgical center, or other health care

provider or facility that is licensed or certified by the state to

an insurer on a uniform health care claim form adopted by the

Insurance Commissioner pursuant to Section 6581 of this title, the

insurer shall provide a timely explanation of benefits to the

practitioner, hospital, home care agency, ambulatory surgical

center, or other health care provider or facility that is licensed

or certified by the state regardless of the network participation

status of such person or entity.

F. Benefits available under an accident and health insurance

policy, at the option of the insured, shall be assignable to a

practitioner, hospital, home care agency, ambulatory surgical

center, or other health care provider or facility that is licensed

or certified by the state who has provided services and procedures

which are covered under the policy. A practitioner, hospital, home

care agency, ambulatory surgical center, or other health care

provider or facility that is licensed or certified by the state

shall be compensated directly by an insurer for services and

procedures which have been provided when the following conditions

are met:

1. Benefits available under a policy have been assigned in

writing by an insured to the practitioner, hospital, home care

agency, ambulatory surgical center, or other health care provider or

facility that is licensed or certified by the state;

2. A copy of the assignment has been provided by the

practitioner, hospital, home care agency, ambulatory surgical

center, or other health care provider or facility that is licensed

or certified by the state to the insurer;

3. A claim has been submitted by the practitioner, hospital,

home care agency, ambulatory surgical center, or other health care

provider or facility that is licensed or certified by the state to

the insurer on a uniform health insurance claim form adopted by the

Insurance Commissioner pursuant to Section 6581 of this title; and

4. A copy of the claim and the estimate required in

subparagraph c of paragraph 1 of subsection D of this section have

been provided by the practitioner, hospital, home care agency,

ambulatory surgical center, or other health care provider or

facility that is licensed or certified by the state to the insured.

G. The provisions of subsection F of this section shall not

apply to:

Oklahoma Statutes - Title 36. Insurance Page 1072

1. Any preferred provider organization (PPO), as defined by

generally accepted industry standards, that contracts with

practitioners that agree to accept the reimbursement available under

the PPO agreement as payment in full and agree not to balance bill

the insured; or

2. Any statewide provider network which:

a. provides that a practitioner, hospital, home care

agency, ambulatory surgical center, or other health

care provider or facility that is licensed or

certified by the state who joins the provider network

shall be compensated directly by the insurer,

b. does not have any terms or conditions which have the

effect of discriminating against a particular class of

practitioner,

c. allows any practitioner, hospital, home care agency,

ambulatory surgical center, or other health care

provider or facility that is licensed or certified by

the state, except a practitioner who has a prior

felony conviction, to become a network provider if the

hospital or practitioner is willing to comply with the

terms and conditions of a standard network provider

contract, and

d. contracts with practitioners that agree to accept the

reimbursement available under the network agreement as

payment in full and agree not to balance bill the

insured.

The provisions of this section shall not be deemed to prohibit a

policyholder from assigning benefits available pursuant to an

accident and health insurance policy, provided that the benefits of

such policy include out-of-network provisions and are being assigned

to an out-of-network practitioner, hospital, home care agency,

ambulatory surgical center, or other health care provider or

facility that is licensed or certified by the state. The

assignability of an accident and health insurance policy related to

out-of-network care shall only be subject to the terms and

conditions specified in subsection F of this section.

H. A nonparticipating practitioner, hospital or ambulatory

surgical center may request from an insurer and the insurer shall

supply a good-faith estimate of the allowable fee for a procedure to

be performed upon an insured based upon information regarding the

anticipated medical needs of the insured provided to the insurer by

the nonparticipating practitioner.

I. A practitioner shall be equally compensated for covered

services and procedures provided to an insured on the basis of

charges prevailing in the same geographical area or in similar sized

communities for similar services and procedures provided to

Oklahoma Statutes - Title 36. Insurance Page 1073

similarly ill or injured persons regardless of the branch of the

healing arts to which the practitioner may belong, if:

1. The practitioner does not authorize or permit false and

fraudulent advertising regarding the services and procedures

provided by the practitioner; and

2. The practitioner does not aid or abet the insured to violate

the terms of the policy.

J. Nothing in the Health Care Freedom of Choice Act shall

prohibit an insurer from establishing a preferred provider

organization and a standard participating provider contract

therefor, specifying the terms and conditions, including, but not

limited to, provider qualifications, and alternative levels or

methods of payment that must be met by a practitioner selected by

the insurer as a participating preferred provider organization

provider.

K. A preferred provider organization, in executing a contract,

shall not, by the terms and conditions of the contract or internal

protocol, discriminate within its network of practitioners with

respect to participation and reimbursement as it relates to any

practitioner who is acting within the scope of the practitioner's

license under the law solely on the basis of such license.

L. Decisions by an insurer or a preferred provider organization

(PPO) to authorize or deny coverage for an emergency service shall

be based on the patient presenting symptoms arising from any injury,

illness, or condition manifesting itself by acute symptoms of

sufficient severity, including severe pain, such that a reasonable

and prudent layperson could expect the absence of medical attention

to result in serious:

1. Jeopardy to the health of the patient;

2. Impairment of bodily function; or

3. Dysfunction of any bodily organ or part.

M. An insurer or preferred provider organization (PPO) shall

not deny an otherwise covered emergency service based solely upon

lack of notification to the insurer or PPO.

N. An insurer or a preferred provider organization (PPO) shall

compensate a provider for patient screening, evaluation, and

examination services that are reasonably calculated to assist the

provider in determining whether the condition of the patient

requires emergency service. If the provider determines that the

patient does not require emergency service, coverage for services

rendered subsequent to that determination shall be governed by the

policy or PPO contract.

O. Nothing in the Health Care Freedom of Choice Act shall be

construed as prohibiting an insurer, preferred provider organization

or other network from determining the adequacy of the size of its

network.

Oklahoma Statutes - Title 36. Insurance Page 1074

P. An insurer or a preferred provider organization shall not

unilaterally remove a provider from the network solely because the

provider informs an enrollee of the full range of physicians and

providers available to the enrollee including out-of-network

providers. Nothing in the Health Care Freedom of Choice Act

prohibits any insurer from allowing a contract to expire by its own

terms or negotiating a new contract with the provider at the end of

the contract term. A provider agreement shall not, as a condition

of the agreement, prohibit, penalize, terminate, or otherwise

restrict a preferred provider from referring to an out-of-network

provider; provided, the insured signs an acknowledgment of referral

that the insured may be responsible for:

1. Higher coinsurance and deductibles; and

2. Charges which exceed the allowable charges of a preferred

provider.
Okla. Stat. tit. 36, § 36-2617 — OK Code / Title 36 / Section 36-2617
Tax exemption
Status: in_force

Every corporation doing business pursuant to this article is

hereby declared to be a not-for-profit institution and to be exempt

from state, county, district, municipal and school tax, including

the taxes prescribed by this Code, and excepting only the fees

prescribed by Article 3 of the Insurance Code (Insurance Department

and Insurance Commissioner), the premium tax levied pursuant to

Article 6 of the Insurance Code (Authorization of Insurers and

General Requirements), and taxes on real and tangible personal

property situate within this state.
Okla. Stat. tit. 36, § 36-3605 — OK Code / Title 36 / Section 36-3605
Insurable interest with respect to property insurance
Status: in_force

A. No insurance contract on property or of any interest therein

or arising therefrom shall be enforceable as to the insurance except

for the benefit of persons having an insurable interest in the

things insured.

B. "Insurable interest" as used in this section means any

actual, lawful, and substantial economic interest in the safety or

preservation of the subject of the insurance free from loss,

destruction, or pecuniary damage or impairment.

C. The measure of an insurable interest in property is the

extent to which the insured might be damnified by loss, injury, or

impairment thereof.
Okla. Stat. tit. 36, § 36-6971 — OK Code / Title 36 / Section 36-6971
Electronic provider directories for health benefit plans
Status: in_force

A. As used in this section:

1. “Health benefit plan” means a plan as defined pursuant to

Section 6060.4 of Title 36 of the Oklahoma Statutes;

2. “Health care facility” means a facility as defined pursuant

to Section 1-725.2 of Title 63 of the Oklahoma Statutes;

3. “Health care professional” means a professional as defined

pursuant to Section 6802 of Title 36 of the Oklahoma Statutes;

4. “Hospital” means a hospital as defined pursuant to Section

1-701 of Title 63 of the Oklahoma Statutes; and

5. “Provider” means a health care provider as defined pursuant

to Section 6571 of Title 36 of the Oklahoma Statutes.

B. Any insurer of a health benefit plan that is offered,

issued, or renewed in this state on or after the effective date of

this act shall publish an electronic provider directory for each of

its network plans, to be updated every sixty (60) days. The insurer

shall make clear the provider directory that applies to each network

Oklahoma Statutes - Title 36. Insurance Page 1445

plan as marketed and issued in this state. The electronic directory

shall be published on an easily accessible website in a

standardized, downloadable, and searchable format. The electronic

directory shall include the following information:

1. For health care professionals:

a. name,

b. contact information, including a website address,

physical address, and phone number, and

c. specialty, if applicable;

2. For hospitals:

a. hospital name,

b. hospital type, including, but not limited to, acute,

rehabilitation, children’s, or cancer,

c. participating hospital location,

d. hospital accreditation status,

e. customer service telephone number, and

f. website address; and

3. For health care facilities other than hospitals:

a. facility name,

b. facility type,

c. types of services performed,

d. participating facility location or locations,

e. customer service telephone number, and

f. website address.

C. Any insurer of a health benefit plan that publishes a

provider directory pursuant to this section shall ensure that the

general public is able to view all of the current providers for a

network plan, through a clearly identifiable hyperlink or website

tab, without requiring any person to create or sign into an account

or submit a policy or contract number.

D. For each network plan published, an insurer of a health

benefit plan shall include in plain language the following

information:

1. A description of the criteria used to build its provider

network; and

2. If applicable:

a. a description of the criteria used to tier providers,

b. how the plan designates the different provider tiers

or levels, including, but not limited to, by name,

symbols, or grouping, in the network and for each

specific provider in the network, which tier each is

placed for an insured or a prospective insured to be

able to identify the provider tier, and

c. a notice that authorization or referral may be

required to access some providers.

E. 1. Provider directories, whether in electronic or, if

offered, print format, shall be accessible to individuals with

Oklahoma Statutes - Title 36. Insurance Page 1446

disabilities and individuals with limited English proficiency as

defined in 45 C.F.R. Sections 92.201 and 155.205.

2. The plan shall include a disclosure in any print directory

issued under this subsection that the information in the directory

is accurate as of the date of printing and that an insured or

prospective insured should consult the electronic provider directory

on the website of the plan or call the listed customer service

telephone number to obtain current provider directory information.

F. 1. The health benefit plan shall include in both its online

and print directories, if offered, a clearly identifiable telephone

number, email address, or link to a webpage which an insured or the

general public may use to report to the plan inaccurate information

listed in the provider directory. Whenever a plan receives a

report, it shall promptly investigate the report and, not later than

two (2) days following the receipt of such report, either verify the

accuracy of the information or update the information.

2. A plan shall take appropriate steps to ensure the accuracy

of the information concerning each provider listed in the provider

directory. The plan shall contact providers as necessary to ensure

that the information provided in the directory is up to date.

3. The plan shall, at least annually, audit its provider

directories for accuracy. The audit should be focused on the top

four utilized specialties to include at least one specialty related

to mental health. Alternatively, plans may audit based on a

reasonable sample size of providers, as long as the sample size

includes behavioral health providers. The plan shall retain

documentation of any audit conducted under this paragraph to be made

available to the Insurance Commissioner. Based on the results of a

given audit, the plan shall verify and attest to the accuracy of the

information or update the information.

G. An insurer of a health benefit plan shall, by certified

mail, return receipt requested, or by electronic mail, read receipt

requested, notify any provider of its removal from the network if

the provider has not submitted claims to the plan or otherwise

communicated intent to continue participation in the plan network

within a twelve-month period. If the provisions of the contract

entered between the plan and the provider provides notice terms, the

notice shall be provided in accordance with such terms. If the plan

does not receive a response from the provider within thirty (30)

days of such notification, the plan shall remove the provider from

the network.

H. In accordance with any timeframes and requirements that may

be established by the Commissioner, an insurer of a health benefit

plan shall report to the Commissioner the following:

1. The number of reports received pursuant to subsection F of

this section, the timeliness of the response from the plan, and the

corrective action or actions taken; and

Oklahoma Statutes - Title 36. Insurance Page 1447

2. All auditing reports conducted by the plan pursuant to

subsection F of this section.

I. If an insured reasonably relies upon materially inaccurate

information contained in a provider directory of a plan, the

Commissioner may require the plan to provide coverage for all

covered health care services provided to the insured and to

reimburse the insured for any amount that he or she would have to

pay if the services would have been delivered by an in-network

provider under the network plan. Provided, the Commissioner shall

take into consideration that health benefit plan insurers are

relying on health care providers to report changes to their

information prior to requiring any reimbursement to an insured. In

the event that the Commissioner finds that the provider has not

provided updated information for the network directory of the

insurer of a health benefit plan, the Commissioner may require that

the provider be reimbursed at the assignment of benefits rate for

the service if it were conducted in-network. Prior to requiring

reimbursement under this subsection, the Commissioner shall conclude

that the services received by the plan were covered services under

the insured’s network plan. If the services satisfy requirements of

this subsection, a plan shall not deny reimbursement to an insured

based on the provider of the services being out-of-network.

J. The Commissioner may promulgate rules to effectuate the

provisions of this section.
Okla. Stat. tit. 36, § 36-6060.8 — OK Code / Title 36 / Section 36-6060.8
Prostate cancer screening coverage
Status: in_force

A. Any health benefit plan that is offered, issued or renewed

in this state on or after January 1, 2000, that provides coverage to

men forty (40) years of age or older in this state shall offer

coverage for annual screening for the early detection of prostate

cancer in men over the age of fifty (50) years and in men over the

Oklahoma Statutes - Title 36. Insurance Page 1098

age of forty (40) years who are in high-risk categories. The

coverage shall not be subject to policy deductibles. The coverage

shall not exceed the actual cost of the prostate cancer screening up

to a maximum of Sixty-five Dollars ($65.00) per screening.

B. The benefit required to be provided by subsection A of this

section shall in no way diminish or limit diagnostic benefits

otherwise allowable under a health benefit plan.

C. The prostate cancer screening coverage shall be offered as

follows:

1. The screening shall be performed by a qualified medical

professional including, but not limited to, a urologist, internist,

general practitioner, doctor of osteopathy, nurse practitioner, or

physician assistant;

2. The screening shall consist, at a minimum, of the following

tests:

a. a prostate-specific antigen blood test, and

b. a digital rectal examination;

3. At least one screening per year shall be covered for any man

fifty (50) years of age or older; and

4. At least one screening per year shall be covered for any man

from forty (40) to fifty (50) years of age who is at increased risk

of developing prostate cancer as determined by a physician.

D. As used in this section, “health benefit plan” means any

plan or arrangement as defined in subsection C of Section 6060.4 of

this title.
Okla. Stat. tit. 36, § 36-6050.3 — OK Code / Title 36 / Section 36-6050.3
Minimum reimbursement rate set by local governmental
Status: in_force

entity — Default rate — Payment.

A. A local governmental entity, or ambulance service provider

operating on its behalf, may annually submit to the Insurance

Department, in the form and manner prescribed by the Insurance

Commissioner, the ambulance service rates set or approved, whether

in contract or ordinance, by the local governmental entity.

B. By January 1, 2026, the Department shall establish and

maintain on its public website a database listing all submitted

rates.

Oklahoma Statutes - Title 36. Insurance Page 1066

C. The minimum allowable reimbursement rate under any health

care benefit plan issued by a health care insurer to an out-of-

network ambulance service provider for providing covered ambulance

services shall be the rates set or approved, whether in contract or

ordinance on May 1, 2025, submitted by a local governmental entity

in the jurisdiction in which the covered ambulance services

originate, or ambulance service provider operating on its behalf, as

provided in subsection A of this section, if the local governmental

entity has submitted such rates.

D. In absence of the rates provided in subsection A of this

section, the rate shall be the lesser of:

1. Three hundred twenty-five percent (325%) of the current

published rate for ambulance services as established by the Centers

for Medicare and Medicaid Services under Title XVIII of the Social

Security Act for the same services provided in the same geographic

area; or

2. The ambulance service provider’s billed charges.

E. Payment made in compliance with this section shall be

considered payment in full for the covered ambulance services

provided, except for any copayment, coinsurance, deductible, and

other cost-sharing feature amounts required to be paid by the

enrollee. An ambulance service provider is prohibited from billing

the enrollee for any additional amounts for the paid covered

ambulance services in excess of what the health care insurer pays.

F. All copayments, coinsurance, deductible, and other cost-

sharing feature amounts applicable to amounts calculated in

accordance with subsection A of this section shall not exceed the

in-network copayment, coinsurance, deductible, and other cost-

sharing features for the covered ambulance services received by the

enrollee.

G. In administering and paying claims, a health care insurer

shall comply with Section 1219 of this title.

H. The Department shall review the data from the database and

submit a report by January 1, 2027, to the Governor, the President

Pro Tempore of the Oklahoma State Senate, and the Speaker of the

Oklahoma House of Representatives. The rates provided for in

subsections C and D of this section shall cease to remain in effect

unless the rates are modified by the Oklahoma Legislature prior to

December 31, 2027.
Okla. Stat. tit. 36, § 36-4509.3 — OK Code / Title 36 / Section 36-4509.3
Rules
Status: in_force

The Insurance Commissioner shall adopt and promulgate rules for

the provisions of Sections 4501 and 4509.1 of Title 36 of the

Oklahoma Statutes and Section 3 of this act.
Okla. Stat. tit. 36, § 36-2413 — OK Code / Title 36 / Section 36-2413
Reports; examination of records
Status: in_force

Every mutual benefit association doing business within this

state under this article, shall on or before the last day of

February, of each year, make and file with the Insurance

Commissioner of this state, a report and a statement of its affairs,

business and operations, during the year ending on the thirty-first

day of December immediately preceding. Such annual report shall be

on blanks prepared by the Insurance Commissioner, verified under

oath by a duly authorized officer of such association, and shall, so

Oklahoma Statutes - Title 36. Insurance Page 673

far as applicable, be substantially as provided in Section 623,

Article 6 of this Code.

B. No such association shall act as an insurer and no such

association shall transact insurance in this state except as

authorized by a subsisting authority granted to it by the Insurance

Commissioner.
Okla. Stat. tit. 36, § 36-2030 — OK Code / Title 36 / Section 36-2030
Assessments
Status: in_force

A. For the purpose of providing the funds necessary to carry

out the powers and duties of the Oklahoma Life and Health Insurance

Guaranty Association, the Board of Directors of the Oklahoma Life

and Health Insurance Guaranty Association shall assess the member

insurers, separately for each account, at such time and for such

amounts as the Board finds necessary. Assessments shall be due not

less than thirty (30) days after prior written notice to the member

insurers and shall accrue interest at six percent (6%) per annum on

and after the due date.

Oklahoma Statutes - Title 36. Insurance Page 614

B. There shall be two classes of assessments, as follows:

1. Class A assessments shall be made for the purpose of meeting

administrative and legal costs and other expenses and examinations.

Class A assessments may be made whether or not related to a

particular impaired or insolvent insurer;

2. Class B assessments shall be made to the extent necessary to

carry out the powers and duties of the Association under Section

2028 of this title with regard to an impaired or an insolvent

foreign or domestic insurer.

C. 1. The amount of any Class A assessment shall be determined

by the Board and may be made on a pro rata or non-pro rata basis.

If pro rata, the Board may provide that it be credited against

future Class B assessments. A non-pro rata assessment shall be

credited against future insolvency.

The amount of any Class B assessment, except for assessments

related to long-term care insurance, shall be allocated for

assessment purposes among the accounts and among the subaccounts of

the life insurance and annuity account, pursuant to an allocation

formula which may be based on the premiums or reserves of the

impaired or insolvent insurer or any other standard deemed by the

Board in its sole discretion as being fair and reasonable under the

circumstances.

The amount of the Class B assessment for long-term care

insurance written by the impaired or insolvent insurer shall be

allocated according to a methodology included in the plan of

operation and approved by the Commissioner. The methodology shall

provide for fifty percent (50%) of the assessment to be allocated to

accident and health member insurers and fifty percent (50%) to be

allocated to life and annuity member insurers.

2. Class B assessments against member insurers for each account

shall be in the proportion that the premiums received on business in

this state by each assessed member insurer on policies or contracts

covered by each account for the three (3) most recent calendar years

for which information is available preceding the year in which the

member insurer became impaired or insolvent, as the case may be,

bears to such premiums received on business in this state for such

calendar years by all assessed member insurers.

3. Assessments for funds to meet the requirements of the

Association with respect to an impaired or insolvent insurer shall

not be made until necessary to implement the purposes of this act.

Classification of assessments under subsection B of this section and

computation of assessments under this subsection shall be made with

a reasonable degree of accuracy, recognizing that exact

determinations may not always be possible.

D. The Association may abate, or defer in whole or in part, the

assessment of a member insurer if, in the opinion of the Board,

payment of the assessment would endanger the ability of the member

Oklahoma Statutes - Title 36. Insurance Page 615

insurer to fulfill its contractual obligations. In the event an

assessment against a member insurer is abated, or deferred in whole

or in part, the amount by which such assessment is abated or

deferred may be assessed against the other member insurers in a

manner consistent with the basis for assessments set forth in this

section.

E. The total of all assessments upon a member insurer for each

account in any one (1) calendar year shall not exceed two percent

(2%) of such average premiums of the insurer received in this state

during the three (3) calendar years preceding the assessment on the

policies and contracts covered by the account and in which the

member insurer became an impaired or insolvent insurer. If the

maximum assessment together with the other assets of the Association

in any account does not provide in any one (1) year in either

account an amount sufficient to carry out the responsibilities of

the Association, the necessary additional funds shall be assessed as

soon thereafter as permitted by the Oklahoma Life and Health

Insurance Guaranty Association Act. The Board may provide in the

plan of operation, a method of allocating funds among claims,

whether relating to one or more impaired or insolvent insurers, when

the maximum assessment will be insufficient to cover anticipated

claims.

F. The Board may, by an equitable method as established in the

plan of operation, refund to member insurers, in proportion to the

contributions of each insurer to that account, the amount by which

the assets of the account exceed the amount the Board finds is

necessary to carry out the obligations of the Association during the

coming year with regard to that account, including assets accruing

from assignment, subrogation, net realized gains and income from

investments. A reasonable amount may be retained in any account to

provide funds for the continuing expenses of the Association and for

future losses.

G. It shall be proper for any member insurer to consider the

amount reasonably necessary to meet its obligations under this act

in determining its premium rates and policy owner dividends as to

any kind of insurance or health maintenance organization business

within the scope of the Oklahoma Life and Health Insurance Guaranty

Association Act.

H. The Association shall issue to each member insurer paying an

assessment under the Oklahoma Life and Health Insurance Guaranty

Association Act, other than a Class A assessment, a certificate of

contribution, in a form prescribed by the Commissioner, for the

amount of the assessment so paid. All outstanding certificates

shall be of equal priority without reference to amounts or dates of

issue. A certificate of contribution may be shown by the member

insurer in its financial statement as an asset in such form and for

Oklahoma Statutes - Title 36. Insurance Page 616

such amount, if any, and period of time as the Commissioner may

approve.

I. A member insurer may offset against its premium, franchise

or income tax liability to this state, an assessment described in

subsection H of this section to the extent of twenty percent (20%)

of the amount of such assessment for each of the five (5) calendar

years following the year in which such assessment was paid. In the

event a member insurer should cease doing business, all uncredited

assessments may be credited against its premium, franchise or income

tax liability for the year it ceases doing business.

J. Any sums acquired by refund, pursuant to subsection F of

this section, from the Association which have theretofore been

written off by contributing insurers and offset against premium,

franchise or income taxes as provided in subsection I of this

section, and are not then needed for purposes of the Oklahoma Life

and Health Insurance Guaranty Association Act, shall be paid by the

Association to the Insurance Commissioner who shall dispense such

funds in accordance with the statutes regarding disbursement of such

taxes.
Okla. Stat. tit. 36, § 36-6071 — OK Code / Title 36 / Section 36-6071
Payment of commissions to officers or directors of life
Status: in_force

insurance companies - Restrictions.

No life insurance company transacting business in this State

shall pay, or contract to pay, directly or indirectly, to its

president, vice president, secretary, treasurer, actuary, medical

director or other physician charged with the duty of examining risks

or applications for insurance or to any officer of the company other

than a designated agency officer directly responsible for the

production and maintenance of premium income, agent or solicitor,

any commission or other compensation contingent upon the writing or

procuring of any policy of insurance in such company, or procuring

an application therefor by any person whomsoever, or contingent upon

the payment of any renewal premium, or upon the assumption of any

life insurance risk by such company. This section shall not prevent

the payment or receipt of renewal or other deferred commissions to

or by any person solely because such person has ceased to hold a

license to act as an agent. Should any company violate any

provision of this article, it shall be the duty of the Insurance

Commissioner to revoke its certificate of authority to transact

business in this State.
Okla. Stat. tit. 36, § 36-2114 — OK Code / Title 36 / Section 36-2114
Quorum, members of mutual
Status: in_force

A domestic mutual insurer may in its bylaws adopt a reasonable

provision for determining a quorum of members at any meeting

thereof, but no provisions recognizing a quorum of fewer than a

simple majority of all the insurer's members present either in

person or by proxy shall be effective unless approved as reasonable

by the Insurance Commissioner. This section shall not affect any

other provision of law requiring vote of a larger percentage of

members for a specified purpose.
Okla. Stat. tit. 36, § 36-6551 — OK Code / Title 36 / Section 36-6551
Short title
Status: in_force

Sections 1 through 16 of this act shall constitute a part of the

Insurance Code and shall be known and may be cited as the "Hospital

and Medical Services Utilization Review Act".
Okla. Stat. tit. 36, § 36-4055.8 — OK Code / Title 36 / Section 36-4055.8
Disclosures to viator
Status: in_force

A. With each application for a viatical settlement, a viatical

settlement provider or viatical settlement broker shall provide the

viator with at least the following disclosures no later than the

time the application for the viatical settlement contract is signed

by all parties. The disclosures shall be provided in a separate

document that is signed by the viator and the viatical settlement

provider or viatical settlement broker, and shall provide the

following information:

1. There are possible alternatives to viatical settlement

contracts including any accelerated death benefits or policy loans

offered under the viator’s life insurance policy;

2. That a viatical settlement broker represents exclusively the

viator, and not the insurer or the viatical settlement provider, and

owes a fiduciary duty to the viator, including a duty to act

according to the viator’s instructions and in the best interest of

the viator;

3. Some or all of the proceeds of the viatical settlement may

be taxable under federal income tax and state franchise and income

taxes, and assistance should be sought from a professional tax

advisor;

Oklahoma Statutes - Title 36. Insurance Page 884

4. Proceeds of the viatical settlement could be subject to the

claims of creditors;

5. Receipt of the proceeds of a viatical settlement may

adversely affect the viator’s eligibility for Medicaid or other

government benefits or entitlements, and advice should be obtained

from the appropriate government agencies;

6. The viator has the right to rescind a viatical settlement

contract before the earlier of thirty (30) calendar days after the

date upon which the viatical settlement contract is executed by all

parties or fifteen (15) calendar days after the viatical settlement

proceeds have been paid to the viator. Rescission, if exercised by

the viator, is effective only if both notice of the rescission is

given, and the viator repays all proceeds and any premiums, loans

and loan interest paid on account of the viatical settlement within

the rescission period. If the insured dies during the rescission

period, the viatical settlement contract shall be deemed to have

been rescinded, subject to repayment by the viator or the viator’s

estate of all viatical settlement proceeds and any premiums, loans

and loan interest on the viatical settlement within sixty (60) days

of the insured’s death;

7. Funds will be sent to the viator within three (3) business

days after the viatical settlement provider has received the

insurer’s or group administrator’s written acknowledgment that

ownership of the policy or interest in the certificate has been

transferred and the beneficiary has been designated;

8. Entering into a viatical settlement contract may cause other

rights or benefits, including conversion rights and waiver of

premium benefits that may exist under the policy or certificate, to

be forfeited by the viator. Assistance should be sought from a

financial adviser;

9. Disclosure to a viator shall include distribution of a

brochure describing the process of viatical settlements. The

National Association of Insurance Commissioner’s (NAIC’s) form for

the brochure shall be used unless another form is developed or

approved by the Insurance Commissioner;

10. The disclosure document shall contain the following

language: “All medical, financial or personal information solicited

or obtained by a viatical settlement provider or viatical settlement

broker about an insured, including the insured’s identity or the

identity of family members, a spouse or a significant other may be

disclosed as necessary to effect the viatical settlement between the

viator and the viatical settlement provider. If you are asked to

provide this information, you will be asked to consent to the

disclosure. The information may be provided to someone who buys the

policy or provides funds for the purchase. You may be asked to

renew your permission to share information every two (2) years.”;

and

Oklahoma Statutes - Title 36. Insurance Page 885

11. Following execution of a viatical contract, the insured may

be contacted for the purpose of determining the insured’s health

status and to confirm the insured’s residential or business street

address and telephone number, or as otherwise provided in the

Viatical Settlements Act of 2008. This contact shall be limited to

once every three (3) months if the insured has a life expectancy of

more than one (1) year, and no more than once per month if the

insured has a life expectancy of one (1) year or less. All such

contacts shall be made only by a viatical settlement provider

licensed in the state in which the viator resided at the time of the

viatical settlement, or by the authorized representative of a duly

licensed viatical settlement provider.

B. A viatical settlement provider shall provide the viator with

at least the following disclosures no later than the date the

viatical settlement contract is signed by all parties. The

disclosures shall be conspicuously displayed in the viatical

settlement contract or in a separate document signed by the viator

and provide the following information:

1. The affiliation, if any, between the viatical settlement

provider and the issuer of the insurance policy to be viaticated;

2. The document shall include the name, business address and

telephone number of the viatical settlement provider;

3. Any affiliations or contractual arrangements between the

viatical settlement provider and the viatical settlement purchaser;

4. If an insurance policy to be viaticated has been issued as a

joint policy or involves family riders or any coverage of a life

other than the insured under the policy to be viaticated, the viator

shall be informed of the possible loss of coverage on the other

lives under the policy and shall be advised to consult with his or

her insurance producer or the insurer issuing the policy for advice

on the proposed viatical settlement;

5. State the dollar amount of the current death benefit payable

to the viatical settlement provider under the policy or certificate.

If known, the viatical settlement provider shall also disclose the

availability of any additional guaranteed insurance benefits, the

dollar amount of any accidental death and dismemberment benefits

under the policy or certificate and the extent to which the viator’s

interest in those benefits will be transferred as a result of the

viatical settlement contract; and

6. State whether the funds will be escrowed with an independent

third party during the transfer process, and if so, provide the

name, business address, and telephone number of the independent

third-party escrow agent, and the fact that the viator or owner may

inspect or receive copies of the relevant escrow or trust agreements

or documents.

C. A viatical settlement broker shall provide the viator with

at least the following disclosures no later than the date the

Oklahoma Statutes - Title 36. Insurance Page 886

viatical settlement contract is signed by all parties. The

disclosures shall be conspicuously displayed in the viatical

settlement contract or in a separate document signed by the viator

and provide the following information:

1. The name, business address and telephone number of the

viatical settlement broker;

2. A full, complete and accurate description of all offers,

counter-offers, acceptances and rejections relating to the proposed

viatical settlement contract; and

3. A written disclosure of any affiliations or contractual

arrangements between the viatical settlement broker and any person

making an offer in connection with the proposed viatical settlement

contracts.

D. If the viatical settlement provider transfers ownership or

changes the beneficiary of the insurance policy, the provider shall

communicate in writing the change in ownership or beneficiary to the

insured within twenty (20) days after the change.

E. A viatical settlement provider or its viatical settlement

investment agent shall provide the viatical settlement purchaser

with at least the following disclosures no later than at the time of

the assignment, transfer or sale of all or a portion of an insurance

policy. The disclosures shall be contained in a document signed by

the viatical settlement purchaser and viatical settlement provider

or viatical settlement investment agent, and shall make the

following disclosures to the viatical settlement purchaser:

1. Disclose all the life expectancy certifications obtained by

the provider in the process of determining the price paid to the

viator;

2. State whether premium payments or other costs related to the

policy have been escrowed. If escrowed, state the date upon which

the escrowed funds will be depleted and whether the purchaser will

be responsible for payment of premiums thereafter and, if so, the

amount of the premiums;

3. State whether premium payments or other costs related to the

policy have been waived. If waived, disclose whether the investor

will be responsible for payment of the premiums if the insurer that

wrote the policy terminates the waiver after purchase and the amount

of those premiums;

4. Disclose the type of policy offered or sold, i.e., whole

life, term life, universal life or a group policy certificate, any

additional benefits contained in the policy, and the current status

of the policy;

5. If the policy is term insurance, disclose the special risks

associated with term insurance including, but not limited to, the

purchaser’s responsibility for additional premiums if the viator

continues the term policy at the end of the current term;

6. State whether the policy is contestable;

Oklahoma Statutes - Title 36. Insurance Page 887

7. State whether the insurer that wrote the policy has any

additional rights that could negatively affect or extinguish the

purchaser’s rights under the viatical settlement contract, what

these rights are, and under what conditions these rights are

activated; and

8. State the name and address of the person responsible for

monitoring the insured’s condition. Describe how often the

monitoring of the insured’s condition is done, how the date of death

is determined, and how and when this information will be transmitted

to the purchaser.
Okla. Stat. tit. 36, § 36-1647 — OK Code / Title 36 / Section 36-1647
Appeal to district court by aggrieved persons
Status: in_force

A. Any person aggrieved by any act, determination, rule,

regulation or order or any other action of the Commissioner pursuant

to this act may appeal to the district court for Oklahoma County.

The court shall conduct its review without a jury and by trial de

novo, except that if all parties, including the Commissioner, so

stipulate, the review shall be confined to the record. Portions of

the record may be introduced by stipulation into evidence in a trial

de novo as to those parties so stipulating.

B. The filing of an appeal pursuant to this section shall stay

the application of any rule, regulation, order or other action of

the Commissioner to the appealing party unless the court, after

giving the party notice and an opportunity to be heard, determines

that a stay would be detrimental to the interest of policyholders,

shareholders, creditors or the public.

C. Any person aggrieved by any failure of the Commissioner to

act or make a determination required by this act may petition the

district court for Oklahoma County for a writ in the nature of a

mandamus or a peremptory mandamus directing the Commissioner to act

or make a determination.
Okla. Stat. tit. 36, § 36-1476 — OK Code / Title 36 / Section 36-1476
Acts of managing general agent - Imputation to insurer
Status: in_force

The acts of the managing general agent are considered to be the

acts of the insurer on whose behalf the agent is acting. A managing

general agent may be examined as if the agent were the insurer.
Okla. Stat. tit. 36, § 36-6515 — OK Code / Title 36 / Section 36-6515
Premium rates
Status: in_force

A. Premium rates for health benefit plans subject to the Small

Employer Health Insurance Reform Act shall be subject to the

following provisions:

1. The rate manual developed for use by a small employer

carrier shall be filed and approved by the Insurance Commissioner

prior to use. Any changes to the rate manual shall be filed and

approved by the Insurance Commissioner prior to use. Every filing

shall be made not less than thirty (30) days prior to the date the

small employer carrier intends to implement the rates. The rate

manual so filed shall be deemed approved upon expiration of the

thirty-day waiting period unless, prior to the end of the period, it

has been affirmatively approved or disapproved by order of the

Commissioner. Approval of a rate manual by the Commissioner shall

constitute a waiver of any unexpired portion of the thirty-day

waiting period. The Commissioner may extend the period to approve

or disapprove a rate manual by not more than an additional thirty

(30) days by giving notice of such extension before expiration of

the initial thirty-day period. At the expiration of an extended

period, the rate filing shall be deemed approved unless otherwise

approved or disapproved by the Commissioner. The Commissioner may

at any time, after notice and for cause shown, withdraw approval of

a filed rate;

2. A small employer health benefit plan shall not be delivered

or issued for delivery unless the policy form or certificate form

can be expected to return to policyholders and certificate holders

in the form of aggregate benefits provided under the policy form or

certificate form at least sixty percent (60%) of the aggregate

amount of premiums earned. The rate of return shall be estimated

for the entire period for which rates are computed to provide

coverage. The rate of return shall be calculated on the basis of

incurred claims experience or incurred health care expenses where

coverage is provided by a health maintenance organization on a

service rather than reimbursement basis and earned premiums for the

Oklahoma Statutes - Title 36. Insurance Page 1279

period in accordance with accepted actuarial principles and

practices;

3. The index rate for a rating period for any class of business

shall not exceed the index rate for any other class of business by

more than twenty percent (20%);

4. For a class of business, the premium rates charged during a

rating period to small employers with similar case characteristics

for the same or similar coverage, or the rates that could be charged

to such employers under the rating system for that class of

business, shall not vary from the index rate by more than twenty-

five percent (25%) of the index rate;

5. The percentage increase in the premium rate charged to a

small employer for a new rating period may not exceed the sum of the

following:

a. the percentage change in the new business premium rate

measured from the first day of the prior rating period

to the first day of the new rating period. In the

case of a health benefit plan into which the small

employer carrier is no longer enrolling new small

employers, the small employer carrier shall use the

percentage change in the base premium rate, provided

that the change does not exceed, on a percentage

basis, the change in the new business premium rate for

the most similar health benefit plan into which the

small employer carrier is actively enrolling new small

employers,

b. any adjustment, not to exceed fifteen percent (15%)

annually and adjusted pro rata for rating periods of

less than one year, due to the claim experience,

health status or duration of coverage of the employees

or dependents of the small employer as determined from

the rate manual for the class of business of the small

employer carrier, and

c. any adjustment due to change in coverage or change in

the case characteristics of the small employer, as

determined from the rate manual for the class of

business of the small employer carrier;

6. Adjustments in rates for claim experience, health status and

duration of coverage shall not be charged to individual employees or

dependents. Any adjustment shall be applied uniformly to the rates

charged for all employees and dependents of the small employer;

7. A small employer carrier may utilize industry as a case

characteristic in establishing premium rates; provided, the highest

rate factor associated with any industry classification shall not

exceed the lowest rate factor associated with any industry

classification by more than fifteen percent (15%);

Oklahoma Statutes - Title 36. Insurance Page 1280

8. In the case of health benefit plans issued prior to the

effective date of the Small Employer Health Insurance Reform Act, a

premium rate for a rating period may exceed the ranges set forth in

paragraphs 3 and 4 of this subsection for a period of three (3)

years following the effective date of the Small Employer Health

Insurance Reform Act. In such case, the percentage increase in the

premium rate charged to a small employer for a new rating period

shall not exceed the sum of the following:

a. the percentage change in the new business premium rate

measured from the first day of the prior rating period

to the first day of the new rating period. In the

case of a health benefit plan into which the small

employer carrier is no longer enrolling new small

employers, the small employer carrier shall use the

percentage change in the base premium rate, provided

that the change does not exceed, on a percentage

basis, the change in the new business premium rate for

the most similar health benefit plan into which the

small employer carrier is actively enrolling new small

employers, and

b. any adjustment due to change in coverage or change in

the case characteristics of the small employer, as

determined from the rate manual of the carrier for the

class of business;

9. Small employer carriers shall:

a. apply rating factors, including case characteristics,

consistently with respect to all small employers in a

class of business. Rating factors shall produce

premiums for identical groups within the same class of

business which differ only by amounts attributable to

plan design and do not reflect differences due to

claims experience, health status and duration of

coverage, and

b. treat all health benefit plans issued or renewed in

the same calendar month as having the same rating

period;

10. For the purposes of this subsection, a health benefit plan

that utilizes a restricted provider network shall not be considered

similar coverage to a health benefit plan that does not utilize such

a network, provided that utilization of the restricted provider

network results in substantial differences in claims costs;

11. The Insurance Commissioner may establish rules to implement

the provisions of this section and to assure that rating practices

used by small employer carriers are consistent with the purposes of

the Small Employer Health Insurance Reform Act, including:

a. assuring that differences in rates charged for health

benefit plans by small employer carriers are

Oklahoma Statutes - Title 36. Insurance Page 1281

reasonable and reflect objective differences in plan

design, not including differences due to claims

experience, health status or duration of coverage, and

b. prescribing the manner in which case characteristics

may be used by small employer carriers.

B. A small employer carrier shall not transfer a small employer

involuntarily into or out of a class of business. A small employer

carrier shall not offer to transfer a small employer into or out of

a class of business unless the offer is made to transfer all small

employers in the class of business without regard to case

characteristics, claim experience, health status or duration of

coverage.

C. The Commissioner may suspend for a specified period the

application of paragraph 3 of subsection A of this section as to the

premium rates applicable to one or more small employers included

within a class of business of a small employer carrier for one or

more rating periods upon a filing by the small employer carrier and

a finding by the Commissioner either that the suspension is

reasonably necessary in light of the financial condition of the

small employer carrier or that the suspension would enhance the

efficiency and fairness of the marketplace for small employer health

insurance.

D. Nothing in the Small Employer Health Insurance Reform Act

shall prohibit a small employer carrier from including in premium

rate development an employer's bona fide wellness program for its

employees including, but not limited to, a tobacco cessation

program.
Okla. Stat. tit. 36, § 36-6953 — OK Code / Title 36 / Section 36-6953
Certificate of authority to issue contracts
Status: in_force

A nonprofit health maintenance organization corporation may

issue contracts to its subscribers only when the Insurance

Commissioner has, by certificate of authority, authorized it to do

so. Application for such certificate of authority shall be made on

forms supplied or approved by the Commissioner, containing such

information as the Commissioner shall deem necessary. Each

application for a certificate of authority shall be accompanied by

copies of the documents required by Section 6903 of Title 36 of the

Oklahoma Statutes.
Okla. Stat. tit. 36, § 36-3611 — OK Code / Title 36 / Section 36-3611
Grounds for disapproval of forms - Prevention of delivery
Status: in_force

of certain policies - Exemptions.

A. The Insurance Commissioner shall disapprove any form of

policy, application, rider or endorsement or withdraw any previous

approval thereof only:

1. If it is in any respect in violation of or does not comply

with this code, including Section 4509 of this title or any other

applicable statute in the State of Oklahoma;

2. If it contains or incorporates by reference any

inconsistent, ambiguous, or misleading clauses, or exceptions and

conditions which deceptively affect the risks purported to be

assumed in the general coverage of the contract; and

3. If it has any title, heading, or other indication of its

provisions which is misleading.

B. 1. No individual or family accident and health insurance

policy, shall be delivered, or issued for delivery, in this state

unless:

Oklahoma Statutes - Title 36. Insurance Page 777

a. accompanied by an appropriate outline of coverages in

plain and simple language, in no less than 10-point

type, and provided further, at the top of the front

page of the outline of coverage, in no less than 14-

point type, shall state the policy described herein is

a limited policy or a substandard policy or other

appropriate information, as prescribed by the

Insurance Commissioner, and

b. an appropriate outline of coverage is completed and

delivered to the applicant at the time application is

made, and an acknowledgment of receipt or certificate

of delivery of such outline is provided to the insurer

with the application.

In the case of a direct response, such as a written application

to the insurance company from an applicant, the outline of coverage

shall accompany the policy when issued.

2. Such outline of coverage shall contain:

a. a statement identifying the applicable category of

coverage afforded by the policy as based on the

minimum basic standards set forth in the rules and

regulations issued to effect compliance with paragraph

3 of this section and Title 36 of the Oklahoma

Statutes,

b. a brief description of the principal benefits and

coverage provided in the policy,

c. a summary statement of the principal exclusions and

limitations or reductions contained in the policy,

including, but not limited to, pre-existing

conditions, probationary periods, elimination periods,

and any age limitations or reductions,

d. a summary statement of the renewal provision,

including any reservation of the insurer of a right to

change premiums, and

e. a statement that the outline contains a summary only

of the details of the policy as issued or of the

policy as applied for and that the issued policy

should be referred to for the actual contractual

governing provisions.

3. The department shall adopt rules and regulations which

establish minimum standards for the general content of forms of

individual and family health policies, which shall be inclusive of

terms of renewability, initial and subsequent conditions of

eligibility, termination of insurance, probationary periods,

exclusions, limitations, and reductions. The minimum standards

expressed in such rules and regulations shall be in addition to, and

in accordance with, individual accident and sickness policy

provisions as provided in this title.

Oklahoma Statutes - Title 36. Insurance Page 778

4. The department shall adopt rules and regulations which

establish minimum standards of benefits and identification for each

of the following categories of coverage in individual and family

forms, other than conversion policies, of accident and health

insurance:

a. basic hospital expense insurance,

b. basic medical expense insurance,

c. basic surgical expense insurance,

d. hospital confinement indemnity insurance,

e. major medical expense insurance,

f. disability income protection insurance,

g. accident-only insurance, and

h. limited benefit insurance.

Nothing in this section shall preclude the issuance of any

policy which combines two or more of the categories of coverage

enumerated in subparagraphs a through e, or any policy which does

not meet the prescribed minimum standards for categories of coverage

in subparagraphs a through g when such policy is, in the opinion of

the department, either experimental in nature or is demonstrated to

be a type of coverage that will fulfill a reasonable need of the

person or persons to be insured. Any policy so approved will be

identified as to category only as prescribed by the department.

5. The department may, within such time as provided by law for

the disapproval of an individual or family form of accident or

health insurance, group accident and health insurance, or life and

annuity insurance, disapprove any such form if it finds that it does

not comply with applicable law in this state or it finds that such

form is unjust, unfair, or inequitable to the policyholder, any

person insured thereunder, or any beneficiary. In acting upon any

such submission, the Commissioner shall, under this section,

consider whether the benefits afforded under the submitted policy or

benefit form would fulfill a reasonable need of a policyholder.
Okla. Stat. tit. 36, § 36-672 — OK Code / Title 36 / Section 36-672
Definitions
Status: in_force

As used in this act:

1. “Authorized individual” means an individual known to and

screened by the licensee and determined to be necessary and

Oklahoma Statutes - Title 36. Insurance Page 177

appropriate to have access to the nonpublic information held by the

licensee and its information systems;

2. “Commissioner” means the Insurance Commissioner;

3. “Consumer” means an individual, including but not limited to

applicants, policyholders, insureds, beneficiaries, claimants, and

certificate holders, who is a resident of this state and whose

nonpublic information is in the possession, custody, or control of a

licensee;

4. “Cybersecurity event” means an event resulting in

unauthorized access to or disruption or misuse of an information

system or nonpublic information stored on the information system.

The term cybersecurity event shall not include the unauthorized

acquisition of encrypted nonpublic information if the encryption,

process, or key is not also acquired, released, or used without

authorization. Cybersecurity event shall not include an event in

which the licensee has determined that the nonpublic information

accessed by an unauthorized person has not been used or released and

has been returned or destroyed;

5. “Department” means the Insurance Department;

6. “Encrypted” means the transformation of data into a form

which results in a low probability of assigning meaning without the

use of a protective process or key;

7. “Information security program” means the administrative,

technical, and physical safeguards that a licensee uses to access,

collect, distribute, process, protect, store, use, transmit, dispose

of, or otherwise handle nonpublic information;

8. “Information system” means a discrete set of electronic

information resources organized for the collection, processing,

maintenance, use, sharing, dissemination or disposition of nonpublic

information, as well as any specialized system such as industrial or

process controls systems, telephone switching and private branch

exchange systems, and environmental control systems;

9. “Licensee” means any person licensed, authorized to operate,

or registered, or required to be licensed, authorized to operate, or

registered, pursuant to Title 36 of the Oklahoma Statutes; provided,

however, that it shall not include a purchasing group or a risk

retention group chartered and licensed in a state other than this

state or a person that is acting as an assuming insurer that is

domiciled in another state or jurisdiction;

10. “Multi-factor authentication” means authentication through

verification of at least two (2) of the following types of

authentication factors:

a. knowledge factors, such as a password,

b. possession factors, such as a token or text message on

a mobile phone, or

c. inherence factors, such as a biometric characteristic;

Oklahoma Statutes - Title 36. Insurance Page 178

11. “Nonpublic information” means electronic information that

is not publicly available and is:

a. business related information of a licensee, of which

the tampering with or unauthorized disclosure, access,

or use of would cause a material adverse impact to the

business, operations, or security of the licensee,

b. any information concerning a consumer that, because of

name, number, personal mark, or other identifier, can

be used to identify him or her, in combination with

any one or more of the following data elements:

(1) social security number,

(2) driver license number or nondriver identification

card number,

(3) financial account number, credit card number, or

debit card number,

(4) any security code, access code, or password that

would permit access to a consumer’s financial

account, or

(5) biometric records, or

c. any information or data, except age or gender, in any

form or medium created by or derived from a health

care provider or a consumer that can be used to

identify a particular consumer and that relates to:

(1) the past, present, or future physical, mental, or

behavioral health or condition of any consumer or

a member of the family of the consumer,

(2) the provision of health care to any consumer, or

(3) payment for the provision of health care to any

consumer;

12. “Person” means any individual or any nongovernmental entity

including, but not limited to, any nongovernmental partnership,

corporation, branch, agency, or association;

13. “Publicly available information” means any information that

a licensee has reasonable basis to believe is lawfully made

available to the general public from federal, state, or local

government records, widely distributed media, or disclosures to the

general public that are required to be made by federal, state, or

local law. For the purposes of this definition, a licensee has a

reasonable basis to believe that information is lawfully made

available to the general public if the licensee has taken steps to

determine:

a. that the information is of the type that is available

to the general public, and

b. whether a consumer can direct that the information not

be made available to the general public and, if so,

that such consumer has not done so; and

Oklahoma Statutes - Title 36. Insurance Page 179

14. “Third-party service provider” means a person, not

otherwise defined as a licensee, that contracts with a licensee to

maintain, process, store, or otherwise is permitted access to

nonpublic information through its provision of services to the

licensee.
Okla. Stat. tit. 36, § 36-901.2 — OK Code / Title 36 / Section 36-901.2
Definitions
Status: in_force

As used in this act unless the context otherwise requires:

1. "Act" means the Oklahoma Insurance Rating Act;

2. "Commissioner" means the Insurance Commissioner of the State

of Oklahoma or his designee;

3. "Department" means the Insurance Department of the State of

Oklahoma;

4. "Rate" means the cost of insurance per exposure unit,

whether expressed as a single number or as a prospective loss cost

and an adjustment to account for the treatment of expenses, profit

and variations in loss experience, prior to any application of

individual risk variations based on loss or expense considerations,

and does not include minimum premiums:

a. "prospective loss cost", as used in this paragraph,

means that portion of a rate that does not include

provisions for expenses, other than loss adjustment

expenses, or profit, and are based on historical

aggregate losses and loss adjustment expenses adjusted

through development to their ultimate value and

projected through trending to a future point in time,

and

b. "expenses", as used in this paragraph, means that

portion of a rate attributable to acquisition, field

supervision, collection expenses, general expenses,

taxes, licenses, and fees; and

5. "Rating organization, advisory organization or statistical

organization" means any two or more insurers acting in cooperation

or in concert for the purpose of making rates, rating plans or

rating systems.
Okla. Stat. tit. 36, § 36-1911 — OK Code / Title 36 / Section 36-1911
Order of liquidation of domestic insurers
Status: in_force

A. An order to liquidate the business of a domestic insurer

shall direct the Insurance Commissioner forthwith to take possession

of the property of the insurer, to liquidate its business, to deal

with the insurer's property and business in his own name as

Insurance Commissioner or in the name of the insurer, as the court

may direct, and to give notice to all creditors who may have claims

against the insurer to present such claims.

B. The Insurance Commissioner may apply for and secure an order

dissolving the corporate existence of a domestic insurer upon his

application for an order of liquidation of such insurer or at any

time after such order has been granted.
Okla. Stat. tit. 36, § 36-1695 — OK Code / Title 36 / Section 36-1695
Assets and liabilities of protected cells – Protected cell income – Insurance securitization. ... 517
Status: in_force

Oklahoma Statutes - Title 36. Insurance Page 14cell income – Insurance securitization.

A. The protected cell assets of any protected cell shall not be

charged with liabilities arising out of any other business the

protected cell company may conduct. All contracts or other

documentation reflecting protected cell liabilities shall clearly

indicate that only the protected cell assets are available for the

satisfaction of those protected cell liabilities.

B. Unless otherwise approved by the Insurance Commissioner,

assets attributed to a protected cell shall be valued at their fair

value on the date of valuation.

C. The income, gains and losses, realized or unrealized, from

protected cell assets and protected cell liabilities shall be

credited to or charged against the protected cell without regard to

other income, gains or losses of the protected cell company,

including income, gains or losses of other protected cells. Amounts

attributed to any protected cell and accumulations on the attributed

amounts may be invested and reinvested without regard to any

requirements or limitations imposed on investments of insurance

companies domiciled in this state and the investments in any

protected cell or cells may not be taken into account in applying

the investment limitations otherwise applicable to the investments

of the protected cell company, subject to any restrictions that may

Oklahoma Statutes - Title 36. Insurance Page 517

be imposed by the Commissioner in accordance with Section 9 of this

act.

D. As permitted by the Commissioner, a protected cell company

may, in respect of any of its protected cells, engage in fully

funded indemnity triggered and/or fully funded nonindemnity

triggered insurance securitization to support in full the protected

cell exposures attributable to that protected cell. A protected

cell company insurance securitization that is nonindemnity triggered

shall qualify as an insurance securitization under the terms of this

section only after the Commissioner, in accordance with the

authority granted under Section 9 of this act, adopts regulations

addressing the methods of funding of the portion of the risk that is

not indemnity-based, accounting, disclosure, risk-based capital

treatment, and assessing risks associated with those

securitizations. A protected cell company insurance securitization

that is not fully funded, whether indemnity triggered or

nonindemnity triggered, is prohibited. Protected cell assets may be

used to pay interest or other consideration on any outstanding debt

or other obligation attributable to that protected cell, and nothing

in this section shall be construed or interpreted as preventing a

protected cell company from entering into a swap agreement or other

transaction for the account of the protected cell that has the

effect of guaranteeing that interest or other consideration.

E. In all protected cell company insurance securitizations, the

contracts or other documentation effecting the transaction shall

contain provisions identifying the protected cell to which the

transaction will be attributed. In addition, the contracts or other

documentation shall clearly disclose that the assets of that

protected cell, and only those assets, are available to pay the

obligations of that protected cell. Notwithstanding the foregoing,

and subject to the provisions of this title and any other applicable

law or rules, the failure to include that language in the contracts

or other documentation shall not be used as the sole basis by

creditors, reinsurers or other claimants to circumvent the

provisions of this section.

F. At the cessation of business of a protected cell, and in

absence of any placement under administrative supervision or order

of conservation, rehabilitation or liquidation attributable to that

protected cell or the protected cell company, the protected cell

company shall voluntarily close out the protected cell account in

accordance with a plan approved by the Commissioner.

G. A protected cell company shall only be authorized to

attribute to a protected cell account the insurance obligations

relating to the protected cell company's general account. Under no

circumstances shall a protected cell be authorized to issue

insurance or reinsurance contracts directly to policyholders or

Oklahoma Statutes - Title 36. Insurance Page 518

reinsureds or have any obligation to the policyholders or reinsureds

of the protected cell company's general account.
Okla. Stat. tit. 36, § 36-2712.1 — OK Code / Title 36 / Section 36-2712.1
Institutions
Status: in_force

A society may create, maintain and operate, or may establish

organizations to operate, not for profit institutions to further the

purposes permitted by paragraph 2 of subsection A of Section 5 of

this act. Such institutions may furnish services free or at a

reasonable charge. Any real or personal property owned, held or

leased by the society for this purpose shall be reported in every

annual statement, but shall not be allowed as an admitted society

asset. No society shall own or operate funeral homes or undertaking

establishments.
Okla. Stat. tit. 36, § 36-2206 — OK Code / Title 36 / Section 36-2206
Minimum reserves and surplus
Status: in_force

The total of the reserves and surplus of a trust organized under

the Oklahoma Medical Professional Liability Trusts Act, in excess of

the amount necessary to support the trust’s retention, must equal or

exceed forty percent (40%) of a range of values that makes

reasonable provision for losses and loss expenses.
Okla. Stat. tit. 36, § 36-4008 — OK Code / Title 36 / Section 36-4008
Policy loan
Status: in_force

A. There shall be a provision that after three (3) full years'

premiums have been paid, the insurer, at any time while the policy

is in force, will loan on the execution of a proper note or loan

agreement by the owner of the policy, and on proper assignment of

the policy and on the sole security thereof, at a specified rate of

interest, not in excess of six percent (6%) per annum, on policies

issued prior to January 1, 1976, a sum equal to or, at the option of

the owner of the policy, less than the cash value of the policy at

the end of the current policy year and of any dividend additions

thereto. A policy issued on or after such date and prior to July 1,

1982, shall contain either, but not both, of the following policy

loan interest rate provisions:

1. A provision that a policy loan shall bear interest at a

specified rate, not in excess of eight percent (8%) per annum; or

2. A provision that all loans under the policy shall bear

interest at a variable rate, not in excess of eight percent (8%) per

annum, specified from time to time by the insurer. The effective

date of any increase in such variable rate shall not be less than

one (1) year after the effective date of the previous rate.

B. With respect to policies providing for a variable rate, the

insurer shall:

1. When a loan is made and when notification of interest due is

furnished, give notice of the variable rate currently effective;

2. As to any loans outstanding forty (40) days before the

effective date of any increase in the variable rate, give notice of

Oklahoma Statutes - Title 36. Insurance Page 827

any such increase at least thirty (30) days before such effective

date; and

3. As to any loans made during the forty (40) days before the

effective date of this increase, give notice of such increase when

the loan is made.

Every such notice shall be given as directed by the policy owner

and any assignee as shown on the records of the insurer at its home

office.

C. With respect to policies issued on or after July 1, 1982,

the following provisions shall apply:

1. For purposes of this subsection, the "Published Monthly

Average" means:

a. Moody's Corporate Bond Yield Average - Monthly

Average Corporates as published by Moody's Investors Service, Inc.,

or any successor thereto, or

b. in the event that Moody's Corporate Bond Yield

Average - Monthly Average Corporates is no longer published, a

substantially similar average, established by regulation issued by

the Commissioner;

2. Policies issued on or after July 1, 1982, shall provide for

policy loan interest rates as follows:

a. a provision permitting a maximum interest rate

of not more than eight percent (8%) per annum, or

b. a provision permitting an adjustable maximum

interest rate established from time to time by the life insurer as

permitted by law;

3. The rate of interest charged on a policy loan made under

subparagraph b of paragraph 2 of this subsection shall not exceed

the higher of the following:

a. the Published Monthly Average for the calendar

month ending two (2) months before the date on which the rate is

determined, or

b. the rate used to compute the cash surrender

values under the policy during the applicable period plus one

percent (1%) per annum;

4. If the maximum rate of interest is determined pursuant to

subparagraph b of paragraph 2 of this subsection, the policy shall

contain a provision setting forth the frequency at which time the

rate is to be determined for that policy;

5. The maximum rate for each policy must be determined at

regular intervals at least once every twelve (12) months, but not

more frequently than once in any three-month period. At the

intervals specified in the policy:

a. the rate being charged may be increased whenever

such increase as determined under paragraph 3 of this subsection

would increase that rate by one-half of one percent (1/2 of 1%) or

more per annum, or

Oklahoma Statutes - Title 36. Insurance Page 828

b. the rate being charged must be reduced whenever

such reduction as determined under paragraph 3 of this subsection

would decrease that rate by one-half of one percent (1/2 of 1%) or

more per annum;

6. The life insurer shall:

a. notify the policyholder at the time a cash loan

is made of the initial rate of interest on the loan,

b. notify the policyholder with respect to premium

loans of the initial rate of interest on the loan as soon as it is

reasonably practical to do so after making the initial loan. Notice

need not be given to the policyholder when a further premium loan is

added, except as provided in subparagraph c below,

c. send to policyholders with loans reasonable

advance notice of any increase in the rate, and

d. include in the notices required above, the

substance of the pertinent provisions of paragraphs 2 and 4 of this

subsection;

7. The loan value of the policy shall be determined in

accordance with Section 4029 of this title, but no policy shall

terminate in a policy year as the sole result of a change in the

interest rate during that policy year, and the life insurer shall

maintain coverage during that policy year until the time at which

the policy would otherwise have terminated if there had been no

change during that policy year;

8. The substance of the pertinent provisions of paragraphs 2

and 4 of this subsection shall be set forth in the policies to which

they apply;

9. For purposes of this subsection:

a. the rate of interest on policy loans permitted

under this subsection includes the interest rate charged on

reinstatement of policy loans for the period during and after any

lapse of a policy,

b. the term "policy loan" includes any premium loan

made under a policy to pay one or more premiums that were not paid

to the life insurer as they fell due,

c. the term "policyholder" includes the owner of

the policy or the person designated to pay premiums as shown on the

records of the life insurer, and

d. the term "policy" includes certificates issued

by a fraternal benefit society and annuity contracts which provide

for policy loans;

10. No other provision of law shall apply to policy loan

interest rates unless made specifically applicable to such rates;

and

11. The provisions of this act shall not apply to any

insurance contract issued before the effective date of this act

Oklahoma Statutes - Title 36. Insurance Page 829

unless the policyholder agrees in writing to the applicability of

such provisions.

D. The company may deduct from such loan value any existing

indebtedness on or secured by the policy not already deducted in

determining such cash value including interest due or accrued, and

any unpaid balance of the premium for the current policy year, and

any interest which may be allowable on the loan to the end of the

current policy year; provided, that the policy shall reserve to the

insurer the right to defer the granting of a loan, other than for

the payment of any premium to the insurer, for six (6) months after

the application therefor is made. The policy may also provide that

if interest on any indebtedness is not paid when due it shall then

be added to the existing indebtedness and shall bear interest at the

same rate, and that if and when the total indebtedness on the

policy, including interest due or accrued, equals or exceeds the

amount of the loan value thereof, then the policy shall terminate

and become void, but not until at least thirty (30) days' notice

shall have been mailed by the insurer to the last-known address of

the insured or policy owner and of any assignee of record at the

home office of the insurer.

The policy, at the insurer's option, may provide for an

automatic premium loan, subject to an election of the party entitled

to elect. No condition other than as herein provided shall be

exacted as a prerequisite to any such loan. This provision shall not

be required in term insurance, nor shall it apply to temporary

insurance or pure endowment insurance, issued or granted in exchange

for lapsed or surrendered policies.