Okla. Stat. tit. 36, § 36-311A.14.1 — OK Code / Title 36 / Section 36-311A.14.1
Internal audit function requirements - Exemptions
Status: in_force

A. Exemption – An insurer is exempt from the requirements of

this section if:

1. The insurer has annual direct written and unaffiliated

assumed premium, including international direct and assumed premium,

but excluding premiums reinsured with the Federal Crop Insurance

Corporation and Federal Flood Program less than Five Hundred Million

Dollars ($500,000,000.00); or

2. If the insurer is a member of a group of insurers that has

annual direct written and unaffiliated assumed premium, including

international direct and assumed premium, but excluding premiums

reinsured with the Federal Crop Insurance Corporation and Federal

Flood Program, less than One Billion Dollars ($1,000,000,000.00).

B. Function – The insurer or group of insurers shall establish

an internal audit function providing independent, objective and

reasonable assurance to the audit committee and insurer management

regarding the insurer's governance, risk management and internal

controls. This assurance shall be provided by performing general

and specific audits, reviews and tests and by employing other

techniques deemed necessary to protect assets, evaluate control

effectiveness and efficiency and evaluate compliance with policies

and regulations.

C. Independence – In order to ensure that internal auditors

remain objective, the internal audit function must be

organizationally independent. Specifically, the internal audit

function will not defer ultimate judgment on audit matters to

others, and shall appoint an individual to head the internal audit

function who will have direct and unrestricted access to the board

of directors. Organizational independence does not preclude dual-

reporting relationships.

D. Reporting – The head of the internal audit function shall

report to the audit committee regularly, but no less than annually,

on the periodic audit plan, factors that may adversely impact the

internal audit function's independence or effectiveness, material

findings from completed audits and the appropriateness of corrective

actions implemented by management as a result of audit findings.

E. Additional Requirements – If an insurer is a member of an

insurance holding company system or included in a group of insurers,

the insurer may satisfy the internal audit function requirements set

Oklahoma Statutes - Title 36. Insurance Page 94

forth in this section at the ultimate controlling parent level, an

intermediate holding company level or the individual legal entity

level.

F. Upon written request and with good cause shown, the

Insurance Commissioner may grant an exemption from the internal

audit function.
Okla. Stat. tit. 36, § 36-334.1 — OK Code / Title 36 / Section 36-334.1
Training of rate analysts and assistant rate analysts -
Status: in_force

Tuition and fees.

The Insurance Commissioner is hereby authorized to arrange for

the training of rate analysts and assistant rate analysts. Funds

appropriated to the Insurance Commissioner may be used to pay the

tuition and fees of the above personnel while receiving training

related to the operations of the Property and Casualty Division.
Okla. Stat. tit. 36, § 36-4501 — OK Code / Title 36 / Section 36-4501
Eligible groups
Status: in_force

Group accident and health insurance is hereby declared to be

that form of accident and health insurance covering groups of

persons as defined below, with or without one or more members of

their families or one or more of their dependents, or covering one

or more members of the families or one or more dependents of persons

in such groups, and issued upon the following basis:

1. Under a policy issued to an association, which has been in

existence for at least twelve (12) months, including a labor union,

which shall have a constitution and bylaws and which has been

organized and is maintained in good faith for purposes other than

that of obtaining insurance, insuring at least ten members,

employees, or employees of members of the association for the

benefit of persons other than the association or its officers or

trustees. The term "employees" as used herein shall be deemed to

include retired employees;

2. Under a policy issued to the trustees of a fund established

by two or more employers or by one or more labor unions or by one or

more employers and one or more labor unions, which trustees shall be

deemed the policyholder, to insure employees of the employers or

members of the unions for the benefit of persons other than the

employers or the unions. The term "employees" as used herein shall

be deemed to include the officers, managers and employees of the

employer, and the individual proprietor or partners if the employer

is an individual proprietor or partnership. The term "employees" as

used herein shall be deemed to include retired employees. The

policy may provide that the term "employees" shall include the

trustees or their employees, or both, if their duties are

principally connected with such trusteeship;

3. Under a policy issued to any persons or organizations to

which a policy of group life insurance may be delivered in this

state, to insure any class or classes of individuals that could be

insured under such group life policy;

4. Under a health insurance policy issued to an employer or

trustees of a fund established by an employer, who shall be deemed

the policyholder insuring at least one employee of such employer for

the benefit of persons other than the employer. The term "employee"

as used herein shall be deemed to include the officers, managers,

and employees of the employer, the individual proprietor or partners

if the employer is an individual proprietor or partnership, the

officers, managers, and employees of subsidiary or affiliated

Oklahoma Statutes - Title 36. Insurance Page 978

corporations, the individual proprietors, partners and employees of

individuals and firms, if the business of the employer and such

individual or firm is under common control through stock ownership,

contract, or otherwise. The term "employee" as used herein shall be

deemed to include retired employees and their dependents and the

dependents of employees eligible for Medicare. A policy issued to

insure employees of a public body may provide that the term

"employees" shall include elected or appointed officials;

5. Under a policy issued to cover any other substantially

similar group which, in the discretion of the Insurance

Commissioner, may be subject to the issuance of a group accident and

health policy or contract; and

6. Nothing in this article validates any charge or practice

illegal under any rule of law or regulation governing usury, small

loans, retail installment sales, or the like, or extends the

application of any such rule of law or regulation to any transaction

not otherwise subject thereto.
Okla. Stat. tit. 36, § 36-4015 — OK Code / Title 36 / Section 36-4015
Excluded or restricted coverage
Status: in_force

A clause in any policy of life insurance providing that such

policy shall be incontestable after a specified period shall

preclude only a contest of the validity of the policy, and shall not

preclude the assertion at any time of defenses based upon provisions

in the policy which exclude or restrict coverage, whether or not

such restrictions or exclusions are excepted in such clause; nor

shall it be construed to preclude adjustment at any time of the

amount payable or benefits accruing under the policy for

misstatement of age, whether or not such age adjustment provision is

excepted in such clause.
Okla. Stat. tit. 36, § 36-5101 — OK Code / Title 36 / Section 36-5101
Short title
Status: in_force

Sections 22 through 34 of this act shall be known and may be

cited as the "Reinsurance Intermediary Act".
Okla. Stat. tit. 36, § 36-1101.1 — OK Code / Title 36 / Section 36-1101.1
Domestic surplus line insurers
Status: in_force

A. An Oklahoma domestic insurer possessing policyholder surplus

of at least Fifteen Million Dollars ($15,000,000.00) may, pursuant

to a resolution by its board of directors, and with the written

approval of the Insurance Commissioner, be designated as a domestic

surplus line insurer. Such insurers may write surplus line

insurance in this state and in any other jurisdiction allowed under

the Nonadmitted and Reinsurance Reform Act of 2010.

B. The premiums of a domestic surplus line insurer shall be

subject to surplus line premium tax pursuant to Section 1115 of this

title. The surplus lines broker or licensee shall pay all premium

taxes to the Insurance Commissioner when Oklahoma is the home state

of the insured until and unless in the exercise of his or her sole

discretion and judgment, the Insurance Commissioner decides to join

the Nonadmitted Insurance Multi-State Agreement or any other

multistate agreement or compact with the same function and purpose.

C. A domestic surplus line insurer may not issue a policy

designed to satisfy the motor vehicle financial responsibility

requirement of this state, the Workers' Compensation Code, or any

Oklahoma Statutes - Title 36. Insurance Page 249

other law mandating insurance coverage by a licensed insurance

company.

D. A domestic surplus line insurer is not subject to the

provisions of the Oklahoma Property & Casualty Insurance Guaranty

Association Act nor the Oklahoma Life and Health Insurance Guaranty

Association Act.
Okla. Stat. tit. 36, § 36-365 — OK Code / Title 36 / Section 36-365
Insurance-related crime property - Forfeiture - Replevin
Status: in_force

A. The following are subject to forfeiture:

1. Any tool used to commit an insurance-related crime;

2. Any implement of an insurance-related crime;

3. Any instrumentality of an insurance-related crime; and

4. Any fruit of an insurance-related crime.

B. A forfeiture of an item or other conveyance encumbered by a

bona fide security interest is subject to the interest of the

secured party where the secured party neither had knowledge of nor

consented to the act or omission forming the ground for the

forfeiture.

C. Property, described in subsection A of this section, seized

and held for forfeiture shall not be subject to replevin and is

subject only to the order and judgments of a court of competent

jurisdiction hearing the forfeiture proceedings.

D. 1. The district attorney in the county where the seizure

occurs or the Attorney General or the Insurance Department shall

bring an action for forfeiture in a court of competent jurisdiction.

The forfeiture action shall be brought within sixty (60) days from

the date of seizure except where the attorney prosecuting the

forfeiture in the sound exercise of discretion determines that no

forfeiture action should be brought because of the rights of

property owners, lienholders or secured creditors or because of

exculpatory, exonerating or mitigating facts and circumstances.

2. The attorney prosecuting the forfeiture shall give notice of

the forfeiture proceeding by mailing a copy of the complaint in the

forfeiture proceeding to each person whose right, title, or interest

of record in the Oklahoma Tax Commission, the Department of Public

Safety, the Federal Aviation Agency, or any other department of the

state or any other state or territory of the United States, or of

the federal government, if the property is required to be registered

in any such department.

3. Notice of the proceeding shall be given to any other person

as may appear, from the facts and circumstances, to have any right,

title or interest in or to the property.

4. The owner of the property or any person having or claiming

right, title or interest in the property may, within sixty (60) days

after the mailing of the notice, file a verified answer to the

complaint and may appear at the hearing on the action for

forfeiture.

5. The attorney prosecuting the forfeiture shall show at a

forfeiture hearing, by a preponderance of the evidence, that the

Oklahoma Statutes - Title 36. Insurance Page 116

property was used in the commission of a violation of an insurance-

related crime, or was the fruit of an insurance-related crime.

6. The owner of property may show by a preponderance of the

evidence that the owner did not know and did not have reason to know

that the property was to be used or possessed in the commission of

any violation or that any of the exceptions to forfeiture are

applicable.

7. Unless the attorney prosecuting the forfeiture shall make

the showing required of it, the court shall order the property

released to the owner. Where the attorney prosecuting the

forfeiture has made such a showing, the court may order:

a. the property to be destroyed by the agency which

seized it or some other agency designated by the

court,

b. the property be delivered and retained for use by the

Insurance Department, or

c. the property be sold at public sale.

E. A copy of a forfeiture order shall be filed with the sheriff

of the county in which the forfeiture occurs and with each federal

or state department with which the property is required to be

registered. The order, when filed, constitutes authority for the

issuance to the Insurance Department of a title certificate,

registration certificate or other special certificate as may be

required by law considering the condition of the property.

F. Proceeds from sale at public auction, after payment of all

reasonable charges and expenses incurred by the agency designated by

the court to conduct the sale in storing and selling the property,

shall be paid to the Insurance Department Anti-Fraud Revolving Fund.

G. Seizing agencies shall utilize their best efforts to arrange

for the towing and storing of motor vehicles in the most economical

manner possible. The owner of a motor vehicle or a motor vehicle

part shall not be required to pay more than the minimum reasonable

costs of towing and storage.

H. A seized item that is neither forfeited nor unidentifiable

shall be held subject to the order of the court in which the

criminal action is pending or, if a request for its release from the

custody is made until the district attorney has notified the

defendant or the defendant's attorney of the request and both the

prosecution and defense have been afforded a reasonable opportunity

for an examination of the property to determine its true value and

to produce or reproduce, by photographs or other identifying

techniques, legally sufficient evidence for introduction at trial or

other criminal proceedings. Upon expiration of a reasonable time

for the completion of the examination which shall not exceed

fourteen (14) days from the date of service upon the defense of the

notice of request for return of property as provided, the property

shall be released to the person making the request after

Oklahoma Statutes - Title 36. Insurance Page 117

satisfactory proof of the person's entitlement to the possession

thereof. Upon application by either party with notice to the other,

the court may order retention of the property if it determines that

retention is necessary in the furtherance of justice.

I. When a seized item is forfeited, restored to its owner or

disposed of as unidentifiable, the seizing agency shall retain a

report of the transaction for a period of at least one (1) year from

the date of the transaction.

J. When an applicant for a certificate of title or salvage

certificate presents to the Oklahoma Tax Commission proof that the

applicant purchased or acquired an item at a public sale conducted

pursuant to this section and the fact is attested to by the seizing

agency, the Oklahoma Tax Commission shall issue the appropriate

certificate of title upon receipt of the statutory fee and properly

executed application for a certificate of title.
Okla. Stat. tit. 36, § 36-4030.3 — OK Code / Title 36 / Section 36-4030.3
Applicability of act
Status: in_force

This act shall not apply to any reinsurance, group annuity

purchased under a retirement plan or plan of deferred compensation

established or maintained by an employer (including a partnership or

sole proprietorship) or by an employee organization, or by both,

other than a plan providing individual retirement accounts or

individual retirement annuities under Section 408 of the Internal

Revenue Code, as now or hereafter amended, premium deposit fund,

variable annuity, investment annuity, immediate annuity, any

deferred annuity contract after annuity payments have commenced, or

reversionary annuity, nor to any contract which shall be delivered

outside this state through an agent or other representative of the

company issuing the contract.
Okla. Stat. tit. 36, § 36-7004 — OK Code / Title 36 / Section 36-7004
Interstate Insurance Product Regulation Compact
Status: repealed

A. Pursuant to terms and conditions of this act, the State of

Oklahoma seeks to join with other states and establish the

Interstate Insurance Product Regulation Compact, and thus become a

member of the Interstate Insurance Product Regulation Commission.

B. The Insurance Commissioner of the State of Oklahoma is

hereby designated to serve as the representative of this state to

the Commission.

C. The Governor is hereby authorized and directed to execute a

Compact on behalf of this state with any other state or states

legally joining therein in the form substantially as follows:

INTERSTATE INSURANCE PRODUCT REGULATION COMPACT

ARTICLE I. PURPOSES

The purposes of this Compact are, through means of joint and

cooperative action among the compacting states:

1. To promote and protect the interest of consumers of

individual and group annuity, life insurance, disability income and

long-term care insurance products;

2. To develop uniform standards for insurance products covered

under the Compact;

3. To establish a central clearinghouse to receive and provide

prompt review of insurance products covered under the Compact and,

in certain cases, advertisements related thereto, submitted by

insurers authorized to do business in one or more compacting states;

4. To give appropriate regulatory approval to those product

filings and advertisements satisfying the applicable uniform

standard;

5. To improve coordination of regulatory resources and

expertise between state insurance departments regarding the setting

of uniform standards and review of insurance products covered under

the Compact;

6. To create the Interstate Insurance Product Regulation

Commission; and

Oklahoma Statutes - Title 36. Insurance Page 1462

7. To perform these and such other related functions as may be

consistent with the state regulation of the business of insurance.

ARTICLE II. DEFINITIONS

For purposes of this Compact:

1. “Advertisement” means any material designed to create public

interest in a product, or induce the public to purchase, increase,

modify, reinstate, borrow on, surrender, replace or retain a policy,

as more specifically defined in the rules and operating procedures

of the Commission;

2. “Bylaws” means those bylaws established by the Commission

for its governance, or for directing or controlling the Commission’s

actions or conduct;

3. “Compacting state” means any state which has enacted this

Compact legislation and which has not withdrawn pursuant to Section

1 of Article XIV of this Compact, or been terminated pursuant to

Section 2 of Article XIV of this Compact;

4. “Commission” means the “Interstate Insurance Product

Regulation Commission” established by this Compact;

5. “Commissioner” means the chief insurance regulatory official

of a state including, but not limited to, commissioner,

superintendent, director or administrator;

6. “Domiciliary state” means the state in which an insurer is

incorporated or organized or, in the case of an alien insurer, its

state of entry;

7. “Insurer” means any entity licensed by a state to issue

contracts of insurance for any of the lines of insurance covered by

this act;

8. “Member” means the person chosen by a compacting state as

its representative to the Commission, or his or her designee;

9. “Noncompacting state” means any state which is not at the

time a compacting state;

10. “Operating procedures” means procedures promulgated by the

Commission implementing a rule, uniform standard or a provision of

this Compact;

11. “Product” means the form of a policy or contract, including

any application, endorsement, or related form which is attached to

and made a part of the policy or contract, and any evidence of

coverage or certificate, for an individual or group annuity, life

insurance, disability income or long-term care insurance product

that an insurer is authorized to issue;

12. “Rule” means a statement of general or particular

applicability and future effect promulgated by the Commission,

including a uniform standard developed pursuant to Article VII of

this Compact, designed to implement, interpret, or prescribe law or

policy or describing the organization, procedure, or practice

requirements of the Commission, which shall have the force and

effect of law in the compacting states;

Oklahoma Statutes - Title 36. Insurance Page 1463

13. “State” means any state, district or territory of the

United States of America;

14. “Third-party filer” means an entity that submits a product

filing to the Commission on behalf of an insurer; and

15. “Uniform standard” means a standard adopted by the

Commission for a product line, pursuant to Article VII of this

Compact, and shall include all of the product requirements in

aggregate; provided, that each uniform standard shall be construed,

whether express or implied, to prohibit the use of any inconsistent,

misleading or ambiguous provisions in a product and the form of the

product made available to the public shall not be unfair,

inequitable or against public policy as determined by the

Commission.

ARTICLE III. ESTABLISHMENT OF THE COMMISSION AND VENUE

1. The compacting states hereby create and establish a joint

public agency known as the “Interstate Insurance Product Regulation

Commission”. Pursuant to Article IV of this Compact, the Commission

will have the power to develop uniform standards for product lines,

receive and provide prompt review of products filed therewith, and

give approval to those product filings satisfying applicable uniform

standards; provided, it is not intended for the Commission to be the

exclusive entity for receipt and review of insurance product

filings. Nothing herein shall prohibit any insurer from filing its

product in any state wherein the insurer is licensed to conduct the

business of insurance; and any such filing shall be subject to the

laws of the state where filed.

2. The Commission is a body corporate and politic, and an

instrumentality of the compacting states.

3. The Commission is solely responsible for its liabilities

except as otherwise specifically provided in this Compact.

4. Venue is proper and judicial proceedings by or against the

Commission shall be brought solely and exclusively in a court of

competent jurisdiction where the principal office of the Commission

is located.

ARTICLE IV. POWERS OF THE COMMISSION

The Commission shall have the following powers:

1. To promulgate rules, pursuant to Article VII of this

Compact, which shall have the force and effect of law and shall be

binding in the compacting states to the extent and in the manner

provided in this Compact;

2. To exercise its rulemaking authority and establish

reasonable uniform standards for products covered under the Compact,

and advertisement related thereto, which shall have the force and

effect of law and shall be binding in the compacting states, but

only for those products filed with the Commission; provided, that a

compacting state shall have the right to opt out of such uniform

standard pursuant to Article VII of this Compact, to the extent and

Oklahoma Statutes - Title 36. Insurance Page 1464

in the manner provided in this Compact; and provided further, that

any uniform standard established by the Commission for long-term

care insurance products may provide the same or greater protections

for consumers as, but shall not provide less than, those protections

set forth in the National Association of Insurance Commissioners’

Long-Term Care Insurance Model Act and Long-Term Care Insurance

Model Regulation, respectively, adopted as of 2001. The Commission

shall consider whether any subsequent amendments to the NAIC Long-

Term Care Insurance Model Act or Long-Term Care Insurance Model

Regulation adopted by the NAIC require amending of the uniform

standards established by the Commission for long-term care insurance

products;

3. To receive and review in an expeditious manner products

filed with the Commission, and rate filings for disability income

and long-term care insurance products, and give approval of those

products and rate filings that satisfy the applicable uniform

standard, where such approval shall have the force and effect of law

and be binding on the compacting states to the extent and in the

manner provided in the Compact;

4. To receive and review in an expeditious manner advertisement

relating to long-term care insurance products for which uniform

standards have been adopted by the Commission, and give approval to

all advertisement that satisfies the applicable uniform standard.

For any product covered under this Compact, other than long-term

care insurance products, the Commission shall have the authority to

require an insurer to submit all or any part of its advertisement

with respect to that product for review or approval prior to use, if

the Commission determines that the nature of the product is such

that an advertisement of the product could have the capacity or

tendency to mislead the public. The actions of the Commission as

provided in this section shall have the force and effect of law and

shall be binding in the compacting states to the extent and in the

manner provided in the Compact;

5. To exercise its rulemaking authority and designate products

and advertisement that may be subject to a self-certification

process without the need for prior approval by the Commission;

6. To promulgate operating procedures, pursuant to Article VII

of this Compact, which shall be binding in the compacting states to

the extent and in the manner provided in this Compact;

7. To bring and prosecute legal proceedings or actions in its

name as the Commission; provided, that the standing of any state

insurance department to sue or be sued under applicable law shall

not be affected;

8. To issue subpoenas requiring the attendance and testimony of

witnesses and the production of evidence;

9. To establish and maintain offices;

10. To purchase and maintain insurance and bonds;

Oklahoma Statutes - Title 36. Insurance Page 1465

11. To borrow, accept or contract for services of personnel,

including, but not limited to, employees of a compacting state;

12. To hire employees, professionals or specialists, and elect

or appoint officers, and to fix their compensation, define their

duties and give them appropriate authority to carry out the purposes

of the Compact, and determine their qualifications; and to establish

the Commission’s personnel policies and programs relating to, among

other things, conflicts of interest, rates of compensation and

qualifications of personnel;

13. To accept any and all appropriate donations and grants of

money, equipment, supplies, materials and services, and to receive,

utilize and dispose of the same; provided, that at all times the

Commission shall strive to avoid any appearance of impropriety;

14. To lease, purchase, accept appropriate gifts or donations

of, or otherwise to own, hold, improve or use, any property, real,

personal or mixed; provided, that at all times the Commission shall

strive to avoid any appearance of impropriety;

15. To sell, convey, mortgage, pledge, lease, exchange, abandon

or otherwise dispose of any property, real, personal or mixed;

16. To remit filing fees to compacting states as may be set

forth in the bylaws, rules or operating procedures;

17. To enforce compliance by compacting states with rules,

uniform standards, operating procedures and bylaws;

18. To provide for dispute resolution among compacting states;

19. To advise compacting states on issues relating to insurers

domiciled or doing business in noncompacting jurisdictions,

consistent with the purposes of this Compact;

20. To provide advice and training to those personnel in state

insurance departments responsible for product review, and to be a

resource for state insurance departments;

21. To establish a budget and make expenditures;

22. To borrow money;

23. To appoint committees, including advisory committees

comprising members, state insurance regulators, state legislators or

their representatives, insurance industry and consumer

representatives, and such other interested persons as may be

designated in the bylaws;

24. To provide and receive information from, and to cooperate

with, law enforcement agencies;

25. To adopt and use a corporate seal; and

26. To perform such other functions as may be necessary or

appropriate to achieve the purposes of this Compact consistent with

the state regulation of the business of insurance.

ARTICLE V. ORGANIZATION OF THE COMMISSION

1. Membership, Voting and Bylaws:

a. Each compacting state shall have and be limited to one

member. Each member shall be qualified to serve in

Oklahoma Statutes - Title 36. Insurance Page 1466

that capacity pursuant to applicable law of the

compacting state. Any member may be removed or

suspended from office as provided by the law of the

state from which he or she shall be appointed. Any

vacancy occurring in the Commission shall be filled in

accordance with the laws of the compacting state

wherein the vacancy exists. Nothing herein shall be

construed to affect the manner in which a compacting

state determines the election or appointment and

qualification of its own Commissioner.

b. Each member shall be entitled to one vote and shall

have an opportunity to participate in the governance

of the Commission in accordance with the bylaws.

Notwithstanding any provision herein to the contrary,

no action of the Commission with respect to the

promulgation of a uniform standard shall be effective

unless two-thirds (2/3) of the members vote in favor

thereof.

c. The Commission shall, by a majority of the members,

prescribe bylaws to govern its conduct as may be

necessary or appropriate to carry out the purposes,

and exercise the powers, of the Compact, including,

but not limited to:

i. Establishing the fiscal year of the Commission;

ii. Providing reasonable procedures for appointing

and electing members, as well as holding

meetings, of the Management Committee;

iii. Providing reasonable standards and procedures:

(1) for the establishment and meetings of other

committees, and

(2) governing any general or specific delegation

of any authority or function of the

Commission;

iv. Providing reasonable procedures for calling and

conducting meetings of the Commission that

consist of a majority of Commission members,

ensuring reasonable advance notice of each such

meeting and providing for the right of citizens

to attend each such meeting with enumerated

exceptions designed to protect the public’s

interest, the privacy of individuals, and

insurers’ proprietary information, including

trade secrets. The Commission may meet in camera

only after a majority of the entire membership

votes to close a meeting en toto or in part. As

soon as practicable, the Commission must make

public:

Oklahoma Statutes - Title 36. Insurance Page 1467

(1) a copy of the vote to close the meeting

revealing the vote of each member with no

proxy votes allowed, and

(2) votes taken during such meeting;

v. Establishing the titles, duties and authority and

reasonable procedures for the election of the

officers of the Commission;

vi. Providing reasonable standards and procedures for

the establishment of the personnel policies and

programs of the Commission. Notwithstanding any

civil service or other similar laws of any

compacting state, the bylaws shall exclusively

govern the personnel policies and programs of the

Commission;

vii. Promulgating a code of ethics to address

permissible and prohibited activities of

Commission members and employees; and

viii. Providing a mechanism for winding up the

operations of the Commission and the equitable

disposition of any surplus funds that may exist

after the termination of the Compact after the

payment and/or reserving of all of its debts and

obligations.

d. The Commission shall publish its bylaws in a

convenient form and file a copy thereof and a copy of

any amendment thereto with the appropriate agency or

officer in each of the compacting states.

2. Management Committee, Officers and Personnel

a. A Management Committee comprising no more than

fourteen members shall be established as follows:

i. One member from each of the six compacting states

with the largest premium volume for individual

and group annuities, life, disability income and

long-term care insurance products, determined

from the records of the NAIC for the prior year;

ii. Four members from those compacting states with at

least two percent (2%) of the market based on the

premium volume described above, other than the

six compacting states with the largest premium

volume, selected on a rotating basis as provided

in the bylaws; and

iii. Four members from those compacting states with

less than two percent (2%) of the market, based

on the premium volume described above, with one

selected from each of the four zone regions of

the NAIC as provided in the bylaws.

Oklahoma Statutes - Title 36. Insurance Page 1468

b. The Management Committee shall have such authority and

duties as may be set forth in the bylaws including,

but not limited to:

i. Managing the affairs of the Commission in a

manner consistent with the bylaws and purposes of

the Commission;

ii. Establishing and overseeing an organizational

structure within, and appropriate procedures for,

the Commission to provide for the creation of

uniform standards and other rules, receipt and

review of product filings, administrative and

technical support functions, review of decisions

regarding the disapproval of a product filing,

and the review of elections made by a compacting

state to opt out of uniform standard; provided,

that a uniform standard shall not be submitted to

the compacting states for adoption unless

approved by two-thirds (2/3) of the members of

the Management Committee;

iii. Overseeing the offices of the Commission; and

iv. Planning, implementing, and coordinating

communications and activities with other state,

federal and local government organizations in

order to advance the goals of the Commission.

c. The Commission shall elect annually officers from the

Management Committee, with each having such authority

and duties as may be specified in the bylaws.

d. The Management Committee may, subject to the approval

of the Commission, appoint or retain an executive

director for such period, upon such terms and

conditions and for such compensation as the Commission

may deem appropriate. The executive director shall

serve as secretary to the Commission, but shall not be

a member of the Commission. The executive director

shall hire and supervise such other staff as may be

authorized by the Commission.

3. Legislative and Advisory Committees

a. A legislative committee comprising state legislators

or their designees shall be established to monitor the

operations of, and make recommendations to, the

Commission, including the Management Committee;

provided, that the manner of selection and term of any

legislative committee member shall be as set forth in

the bylaws. Prior to the adoption by the Commission

of any uniform standard, revision to the bylaws,

annual budget or other significant matter as may be

Oklahoma Statutes - Title 36. Insurance Page 1469

provided in the bylaws, the Management Committee shall

consult with and report to the legislative committee.

b. The Commission shall establish two advisory

committees, one of which shall comprise consumer

representatives independent of the insurance industry,

and the other comprising insurance industry

representatives.

c. The Commission may establish additional advisory

committees as its bylaws may provide for the carrying

out of its functions.

4. Corporate Records of the Commission

The Commission shall maintain its corporate books and records in

accordance with the bylaws.

5. Qualified Immunity, Defense and Indemnification

a. The members, officers, executive director, employees

and representatives of the Commission shall be immune

from suit and liability, either personally or in their

official capacity, for any claim for damage to or loss

of property or personal injury or other civil

liability caused by or arising out of any actual or

alleged act, error or omission that occurred, or that

the person against whom the claim is made had a

reasonable basis for believing occurred, within the

scope of Commission employment, duties or

responsibilities; provided, that nothing in this

paragraph shall be construed to protect any such

person from suit and/or liability for any damage,

loss, injury or liability caused by the intentional or

willful and wanton misconduct of that person.

b. The Commission shall defend any member, officer,

executive director, employee or representative of the

Commission in any civil action seeking to impose

liability arising out of any actual or alleged act,

error or omission that occurred within the scope of

Commission employment, duties or responsibilities, or

that the person against whom the claim is made had a

reasonable basis for believing occurred within the

scope of Commission employment, duties or

responsibilities; provided, that nothing herein shall

be construed to prohibit that person from retaining

his or her own counsel; and provided further, that the

actual or alleged act, error or omission did not

result from that person’s intentional or willful and

wanton misconduct.

c. The Commission shall indemnify and hold harmless any

member, officer, executive director, employee or

representative of the Commission for the amount of any

Oklahoma Statutes - Title 36. Insurance Page 1470

settlement or judgment obtained against that person

arising out of any actual or alleged act, error or

omission that occurred within the scope of Commission

employment, duties or responsibilities, or that such

person had a reasonable basis for believing occurred

within the scope of Commission employment, duties or

responsibilities, provided that the actual or alleged

act, error or omission did not result from the

intentional or willful and wanton misconduct of that

person.

ARTICLE VI. MEETINGS AND ACTS OF THE COMMISSION

1. The Commission shall meet and take such actions as are

consistent with the provisions of this Compact and the bylaws.

2. Each member of the Commission shall have the right and power

to cast a vote to which that compacting state is entitled and to

participate in the business and affairs of the Commission. A member

shall vote in person or by such other means as provided in the

bylaws. The bylaws may provide for members’ participation in

meetings by telephone or other means of communication.

3. The Commission shall meet at least once during each calendar

year. Additional meetings shall be held as set forth in the bylaws.

ARTICLE VII. RULES AND OPERATING PROCEDURES:

RULEMAKING FUNCTIONS OF THE COMMISSION AND

OPTING OUT OF UNIFORM STANDARDS

1. Rulemaking Authority. The Commission shall promulgate

reasonable rules, including uniform standards, and operating

procedures in order to effectively and efficiently achieve the

purposes of this Compact. Notwithstanding the foregoing, in the

event the Commission exercises its rulemaking authority in a manner

that is beyond the scope of the purposes of this act, or the powers

granted hereunder, then such an action by the Commission shall be

invalid and have no force and effect.

2. Rulemaking Procedure. Rules and operating procedures shall

be made pursuant to a rulemaking process that conforms to the Model

State Administrative Procedure Act of 1981 as amended, as may be

appropriate to the operations of the Commission. Before the

Commission adopts a uniform standard, the Commission shall give

written notice to the relevant state legislative committee(s) in

each compacting state responsible for insurance issues of its

intention to adopt the uniform standard. The Commission in adopting

a uniform standard shall consider fully all submitted materials and

issue a concise explanation of its decision.

3. Effective Date and Opt Out of a Uniform Standard. A uniform

standard shall become effective ninety (90) days after its

promulgation by the Commission or such later date as the Commission

may determine; provided, however, that a compacting state may opt

out of a uniform standard as provided in this Article. “Opt out”

Oklahoma Statutes - Title 36. Insurance Page 1471

shall be defined as any action by a compacting state to decline to

adopt or participate in a promulgated uniform standard. All other

rules and operating procedures, and amendments thereto, shall become

effective as of the date specified in each rule, operating procedure

or amendment.

4. Opt Out Procedure. A compacting state may opt out of a

uniform standard, either by legislation or regulation duly

promulgated by the Insurance Department under the compacting state’s

Administrative Procedure Act. If a compacting state elects to opt

out of a uniform standard by regulation, it must:

a. Give written notice to the Commission no later than

ten (10) business days after the uniform standard is

promulgated, or at the time the state becomes a

compacting state; and

b. Find that the uniform standard does not provide

reasonable protections to the citizens of the state,

given the conditions in the state. The Commissioner

shall make specific findings of fact and conclusions

of law, based on a preponderance of the evidence,

detailing the conditions in the state which warrant a

departure from the uniform standard and determining

that the uniform standard would not reasonably protect

the citizens of the state. The Commissioner must

consider and balance the following factors and find

that the conditions in the state and needs of the

citizens of the state outweigh:

i. The intent of the Legislature to participate in,

and the benefits of, an interstate agreement to

establish national uniform consumer protections

for the products subject to this act; and

ii. The presumption that a uniform standard adopted

by the Commission provides reasonable protections

to consumers of the relevant product.

Notwithstanding the foregoing, a compacting state may, at the time

of its enactment of this Compact, prospectively opt out of all

uniform standards involving long-term care insurance products by

expressly providing for such opt out in the enacted Compact, and

such an opt out shall not be treated as a material variance in the

offer or acceptance of any state to participate in this Compact.

Such an opt out shall be effective at the time of enactment of this

Compact by the compacting state and shall apply to all existing

uniform standards involving long-term care insurance products and

those subsequently promulgated.

5. Effect of Opt Out. If a compacting state elects to opt out

of a uniform standard, the uniform standard shall remain applicable

in the compacting state electing to opt out until such time the opt

Oklahoma Statutes - Title 36. Insurance Page 1472

out legislation is enacted into law or the regulation opting out

becomes effective.

Once the opt out of a uniform standard by a compacting state

becomes effective as provided under the laws of that state, the

uniform standard shall have no further force and effect in that

state unless and until the legislation or regulation implementing

the opt out is repealed or otherwise becomes ineffective under the

laws of the state. If a compacting state opts out of a uniform

standard after the uniform standard has been made effective in that

state, the opt out shall have the same prospective effect as

provided under Article XIV of this Compact for withdrawals.

6. Stay of Uniform Standard. If a compacting state has

formally initiated the process of opting out of a uniform standard

by regulation, and while the regulatory opt out is pending, the

compacting state may petition the Commission, at least fifteen (15)

days before the effective date of the uniform standard, to stay the

effectiveness of the uniform standard in that state. The Commission

may grant a stay if it determines the regulatory opt out is being

pursued in a reasonable manner and there is a likelihood of success.

If a stay is granted or extended by the Commission, the stay or

extension thereof may postpone the effective date by up to ninety

(90) days, unless affirmatively extended by the Commission;

provided, a stay may not be permitted to remain in effect for more

than one (1) year unless the compacting state can show extraordinary

circumstances which warrant a continuance of the stay, including,

but not limited to, the existence of a legal challenge which

prevents the compacting state from opting out. A stay may be

terminated by the Commission upon notice that the rulemaking process

has been terminated.

7. Not later than thirty (30) days after a rule or operating

procedure is promulgated, any person may file a petition for

judicial review of the rule or operating procedure; provided, that

the filing of such a petition shall not stay or otherwise prevent

the rule or operating procedure from becoming effective unless the

court finds that the petitioner has a substantial likelihood of

success. The court shall give deference to the actions of the

Commission consistent with applicable law and shall not find the

rule or operating procedure to be unlawful if the rule or operating

procedure represents a reasonable exercise of the Commission’s

authority.

ARTICLE VIII. COMMISSION RECORDS AND ENFORCEMENT

1. The Commission shall promulgate rules establishing

conditions and procedures for public inspection and copying of its

information and official records, except such information and

records involving the privacy of individuals and insurers’ trade

secrets. The Commission may promulgate additional rules under which

it may make available to federal and state agencies, including law

Oklahoma Statutes - Title 36. Insurance Page 1473

enforcement agencies, records and information otherwise exempt from

disclosure, and may enter into agreements with such agencies to

receive or exchange information or records subject to nondisclosure

and confidentiality provisions.

2. Except as to privileged records, data and information, the

laws of any compacting state pertaining to confidentiality or

nondisclosure shall not relieve any compacting state Commissioner of

the duty to disclose any relevant records, data or information to

the Commission; provided, that disclosure to the Commission shall

not be deemed to waive or otherwise affect any confidentiality

requirement; and further provided, that, except as otherwise

expressly provided in this act, the Commission shall not be subject

to the compacting state’s laws pertaining to confidentiality and

nondisclosure with respect to records, data and information in its

possession. Confidential information of the Commission shall remain

confidential after such information is provided to any Commissioner.

3. The Commission shall monitor compacting states for

compliance with duly adopted bylaws, rules, including uniform

standards, and operating procedures. The Commission shall notify

any noncomplying compacting state in writing of its noncompliance

with Commission bylaws, rules or operating procedures. If a

noncomplying compacting state fails to remedy its noncompliance

within the time specified in the notice of noncompliance, the

compacting state shall be deemed to be in default as set forth in

Article XIV of this Compact.

4. The Commissioner of any state in which an insurer is

authorized to do business, or is conducting the business of

insurance, shall continue to exercise his or her authority to

oversee the market regulation of the activities of the insurer in

accordance with the provisions of the state’s law. The

Commissioner’s enforcement of compliance with the Compact is

governed by the following provisions:

a. With respect to the Commissioner’s market regulation

of a product or advertisement that is approved or

certified to the Commission, the content of the

product or advertisement shall not constitute a

violation of the provisions, standards or requirements

of the Compact except upon a final order of the

Commission, issued at the request of a Commissioner

after prior notice to the insurer and an opportunity

for hearing before the Commission.

b. Before a Commissioner may bring an action for

violation of any provision, standard or requirement of

the Compact relating to the content of an

advertisement not approved or certified to the

Commission, the Commission, or an authorized

Commission officer or employee, must authorize the

Oklahoma Statutes - Title 36. Insurance Page 1474

action. However, authorization pursuant to this

paragraph does not require notice to the insurer,

opportunity for hearing or disclosure of requests for

authorization or records of the Commission’s action on

such requests.

ARTICLE IX. DISPUTE RESOLUTION

The Commission shall attempt, upon the request of a member, to

resolve any disputes or other issues that are subject to this

Compact and which may arise between two or more compacting states,

or between compacting states and noncompacting states, and the

Commission shall promulgate an operating procedure providing for

resolution of such disputes.

ARTICLE X. PRODUCT FILING AND APPROVAL

1. Insurers and third-party filers seeking to have a product

approved by the Commission shall file the product with, and pay

applicable filing fees to, the Commission. Nothing in this act

shall be construed to restrict or otherwise prevent an insurer from

filing its product with the insurance department in any state

wherein the insurer is licensed to conduct the business of

insurance, and such filing shall be subject to the laws of the

states where filed.

2. The Commission shall establish appropriate filing and review

processes and procedures pursuant to Commission rules and operating

procedures. Notwithstanding any provision herein to the contrary,

the Commission shall promulgate rules to establish conditions and

procedures under which the Commission will provide public access to

product filing information. In establishing such rules, the

Commission shall consider the interests of the public in having

access to such information, as well as protection of personal

medical and financial information and trade secrets, that may be

contained in a product filing or supporting information.

3. Any product approved by the Commission may be sold or

otherwise issued in those compacting states for which the insurer is

legally authorized to do business.

ARTICLE XI. REVIEW OF COMMISSION DECISIONS REGARDING FILINGS

1. Not later than thirty (30) days after the Commission has

given notice of a disapproved product or advertisement filed with

the Commission, the insurer or third-party filer whose filing was

disapproved may appeal the determination to a review panel appointed

by the Commission. The Commission shall promulgate rules to

establish procedures for appointing such review panels and provide

for notice and hearing. An allegation that the Commission, in

disapproving a product or advertisement filed with the Commission,

acted arbitrarily, capriciously, or in a manner that is an abuse of

discretion or otherwise not in accordance with the law, is subject

to judicial review in accordance with Section 4 of Article III of

this Compact.

Oklahoma Statutes - Title 36. Insurance Page 1475

2. The Commission shall have authority to monitor, review and

reconsider products and advertisement subsequent to their filing or

approval upon a finding that the product does not meet the relevant

uniform standard. Where appropriate, the Commission may withdraw or

modify its approval after proper notice and hearing, subject to the

appeal process in Section 1 of this article.

ARTICLE XII. FINANCE

1. The Commission shall pay or provide for the payment of the

reasonable expenses of its establishment and organization. To fund

the cost of its initial operations, the Commission may accept

contributions and other forms of funding from the National

Association of Insurance Commissioners, compacting states and other

sources. Contributions and other forms of funding from other

sources shall be of such a nature that the independence of the

Commission concerning the performance of its duties shall not be

compromised.

2. The Commission shall collect a filing fee from each insurer

and third-party filer filing a product with the Commission to cover

the cost of the operations and activities of the Commission and its

staff in a total amount sufficient to cover the Commission’s annual

budget.

3. The Commission’s budget for a fiscal year shall not be

approved until it has been subject to notice and comment as set

forth in Article VII of this Compact.

4. The Commission shall be exempt from all taxation in and by

the compacting states.

5. The Commission shall not pledge the credit of any compacting

state, except by and with the appropriate legal authority of that

compacting state.

6. The Commission shall keep complete and accurate accounts of

all its internal receipts, including grants and donations, and

disbursements of all funds under its control. The internal

financial accounts of the Commission shall be subject to the

accounting procedures established under its bylaws. The financial

accounts and reports including the system of internal controls and

procedures of the Commission shall be audited annually by an

independent certified public accountant. Upon the determination of

the Commission, but no less frequently than every three (3) years,

the review of the independent auditor shall include a management and

performance audit of the Commission. The Commission shall make an

annual report to the Governor and Legislature of the compacting

states, which shall include a report of the independent audit. The

Commission’s internal accounts shall not be confidential and such

materials may be shared with the Commissioner of any compacting

state upon request; provided, however, that any work papers related

to any internal or independent audit and any information regarding

Oklahoma Statutes - Title 36. Insurance Page 1476

the privacy of individuals and insurers’ proprietary information,

including trade secrets, shall remain confidential.

7. No compacting state shall have any claim to or ownership of

any property held by or vested in the Commission or to any

Commission funds held pursuant to the provisions of this Compact.

ARTICLE XIII. COMPACTING STATES, EFFECTIVE DATE AND AMENDMENT

1. Any state is eligible to become a compacting state.

2. The Compact shall become effective and binding upon

legislative enactment of the Compact into law by two compacting

states; provided, the Commission shall become effective for purposes

of adopting uniform standards for, reviewing, and giving approval or

disapproval of, products filed with the Commission that satisfy

applicable uniform standards only after twenty-six (26) states are

compacting states or, alternatively, by states representing greater

than forty percent (40%) of the premium volume for life insurance,

annuity, disability income and long-term care insurance products,

based on records of the NAIC for the prior year. Thereafter, it

shall become effective and binding as to any other compacting state

upon enactment of the Compact into law by that state.

3. Amendments to the Compact may be proposed by the Commission

for enactment by the compacting states. No amendment shall become

effective and binding upon the Commission and the compacting states

unless and until all compacting states enact the amendment into law.

ARTICLE XIV. WITHDRAWAL, DEFAULT AND TERMINATION

1. Withdrawal

a. Once effective, the Compact shall continue in force

and remain binding upon each and every compacting

state; provided, that a compacting state may withdraw

from the Compact (“withdrawing state”) by enacting a

statute specifically repealing the statute which

enacted the Compact into law.

b. The effective date of withdrawal is the effective date

of the repealing statute. However, the withdrawal

shall not apply to any product filings approved or

self-certified, or any advertisement of such products,

on the date the repealing statute becomes effective,

except by mutual agreement of the Commission and the

withdrawing state unless the approval is rescinded by

the withdrawing state as provided in paragraph e of

this section.

c. The Commissioner of the withdrawing state shall

immediately notify the Management Committee in writing

upon the introduction of legislation repealing this

Compact in the withdrawing state.

d. The Commission shall notify the other compacting

states of the introduction of such legislation within

ten (10) days after its receipt of notice thereof.

Oklahoma Statutes - Title 36. Insurance Page 1477

e. The withdrawing state is responsible for all

obligations, duties and liabilities incurred through

the effective date of withdrawal, including any

obligations, the performance of which extend beyond

the effective date of withdrawal, except to the extent

those obligations may have been released or

relinquished by mutual agreement of the Commission and

the withdrawing state. The Commission’s approval of

products and advertisement prior to the effective date

of withdrawal shall continue to be effective and be

given full force and effect in the withdrawing state,

unless formally rescinded by the withdrawing state in

the same manner as provided by the laws of the

withdrawing state for the prospective disapproval of

products or advertisement previously approved under

state law.

f. Reinstatement following withdrawal of any compacting

state shall occur upon the effective date of the

withdrawing state reenacting the Compact.

2. Default

a. If the Commission determines that any compacting state

has at any time defaulted (“defaulting state”) in the

performance of any of its obligations or

responsibilities under this Compact, the bylaws or

duly promulgated rules or operating procedures, then,

after notice and hearing as set forth in the bylaws,

all rights, privileges and benefits conferred by this

Compact on the defaulting state shall be suspended

from the effective date of default as fixed by the

Commission. The grounds for default include, but are

not limited to, failure of a compacting state to

perform its obligations or responsibilities, and any

other grounds designated in Commission rules. The

Commission shall immediately notify the defaulting

state in writing of the defaulting state’s suspension

pending a cure of the default. The Commission shall

stipulate the conditions and the time period within

which the defaulting state must cure its default. If

the defaulting state fails to cure the default within

the time period specified by the Commission, the

defaulting state shall be terminated from the Compact

and all rights, privileges and benefits conferred by

this Compact shall be terminated from the effective

date of termination.

b. Product approvals by the Commission or product self-

certifications, or any advertisement in connection

with such product, that is in force on the effective

Oklahoma Statutes - Title 36. Insurance Page 1478

date of termination shall remain in force in the

defaulting state in the same manner as if the

defaulting state had withdrawn voluntarily pursuant to

Section 1 of this article.

c. Reinstatement following termination of any compacting

state requires a reenactment of the Compact.

3. Dissolution of Compact

a. The Compact dissolves effective upon the date of the

withdrawal or default of the compacting state which

reduces membership in the Compact to one compacting

state.

b. Upon the dissolution of this Compact, the Compact

becomes null and void and shall be of no further force

or effect, and the business and affairs of the

Commission shall be wound up and any surplus funds

shall be distributed in accordance with the bylaws.

ARTICLE XV. SEVERABILITY AND CONSTRUCTION

1. The provisions of this Compact shall be severable; and if

any phrase, clause, sentence or provision is deemed unenforceable,

the remaining provisions of the Compact shall be enforceable.

2. The provisions of this Compact shall be liberally construed

to effectuate its purposes.

ARTICLE XVI. BINDING EFFECT OF COMPACT AND OTHER LAWS

1. Other Laws

a. Nothing herein prevents the enforcement of any other

law of a compacting state, except as provided in

paragraph b of this section.

b. For any product approved or certified to the

Commission, the rules, uniform standards and any other

requirements of the Commission shall constitute the

exclusive provisions applicable to the content,

approval and certification of such products. For

advertisement that is subject to the Commission’s

authority, any rule, uniform standard or other

requirement of the Commission which governs the

content of the advertisement shall constitute the

exclusive provision that a Commissioner may apply to

the content of the advertisement. Notwithstanding the

foregoing, no action taken by the Commission shall

abrogate or restrict:

i. the access of any person to state courts,

ii. remedies available under state law related to

breach of contract, tort, or other laws not

specifically directed to the content of the

product,

iii. state law relating to the construction of

insurance contracts, or

Oklahoma Statutes - Title 36. Insurance Page 1479

iv. the authority of the Attorney General of the

state including, but not limited to, maintaining

any actions or proceedings, as authorized by law.

c. All insurance products filed with individual states

shall be subject to the laws of those states.

2. Binding Effect of this Compact

a. All lawful actions of the Commission, including all

rules and operating procedures promulgated by the

Commission, are binding upon the compacting states.

b. All agreements between the Commission and the

compacting states are binding in accordance with their

terms.

c. Upon the request of a party to a conflict over the

meaning or interpretation of Commission actions, and

upon a majority vote of the compacting states, the

Commission may issue advisory opinions regarding the

meaning or interpretation in dispute.

d. In the event any provision of the Compact exceeds the

constitutional limits imposed on the Legislature of

any compacting state, the obligations, duties, powers

or jurisdiction sought to be conferred by that

provision upon the Commission shall be ineffective as

to that compacting state, and those obligations,

duties, powers or jurisdiction shall remain in the

compacting state and shall be exercised by the agency

thereof to which those obligations, duties, powers or

jurisdiction are delegated by law in effect at the

time this Compact becomes effective.
Okla. Stat. tit. 36, § 36-707 — OK Code / Title 36 / Section 36-707
"Casualty insurance" defined
Status: in_force

"Casualty insurance" includes vehicle insurance as defined in

Section 706 and accident and health insurance as defined in Section

703, of this article, and in addition includes:

1. Liability insurance, which is insurance against legal

liability for the death, injury, or disability of any human being,

or for damage to property; and provision of medical, hospital,

surgical, disability benefits to injured persons and funeral and

death benefits to dependents, beneficiaries or personal

representatives of persons killed, irrespective of legal liability

of the insured, when issued as an incidental coverage with or

supplemental to liability insurance.

2. Workers' compensation and employers' liability insurance,

which is insurance of the obligations accepted by, imposed upon, or

assumed by employers for death, disablement, or injury of employees.

3. Burglary and theft insurance, which is insurance against

loss or damage by burglary, theft, larceny, robbery, forgery, fraud,

vandalism, malicious mischief, confiscation, or wrongful conversion,

disposal, or concealment, or from any attempt at any of the

foregoing, including supplemental coverages for medical, hospital,

surgical, and funeral benefits sustained by the named insured or

other person as a result of bodily injury during the commission of a

burglary, robbery, or theft by another; also insurance against loss

of or damage to monies, coins, bullion, securities, notes, drafts,

acceptances, or any other valuable papers and documents, resulting

from any cause.

4. Personal property floater insurance, which is insurance upon

personal effects against loss or damage from any cause.

5. Glass insurance, which is insurance against loss or damage

to glass, including its lettering, ornamentation, and fittings.

6. Boiler and machinery insurance, which is insurance against

any liability and loss or damage to property or interest resulting

from accidents to or explosion of boilers, pipes, pressure

containers, machinery, or apparatus, and to make inspection of and

issue certificates of inspection upon boilers, machinery, and

apparatus of any kind, whether or not insured.

7. Leakage and fire extinguishing equipment insurance, which is

insurance against loss or damage to any property or interest caused

by the breakage or leakage of sprinklers, hoses, pumps, and other

fire extinguishing equipment or apparatus, water pipes and

containers, or by water entering through leaks or openings in

Oklahoma Statutes - Title 36. Insurance Page 193

buildings, and insurance against loss or damage to such sprinklers,

hoses, pumps, and other fire extinguishing equipment or apparatus.

8. Credit insurance, which is insurance against loss or damage

resulting from failure of debtors to pay their obligations to the

insured.

9. Malpractice insurance, which is insurance against legal

liability of the insured, and against loss, damage, or expense

incidental to a claim of such liability, and including medical,

hospital, surgical, and funeral benefits to injured persons,

irrespective of legal liability of the insured, arising out of the

death, injury, or disablement of any person, or arising out of

damage to the economic interest of any person, as the result of

negligence in rendering expert, fiduciary, or professional services.

10. Entertainments insurance, which is insurance indemnifying

the producer of any motion picture, television, radio, theatrical,

sport, spectacle, entertainment, or similar production, event, or

exhibition against loss from interruption, postponement, or

cancellation thereof due to death, accidental injury, or sickness of

performers, participants, directors, or other principals.

11. Miscellaneous insurance, which is insurance against any

other kind of loss, damage, or liability properly a subject of

insurance and not within any other kind of insurance as defined in

this article, if such insurance is not disapproved by the Insurance

Commissioner as being contrary to law or public policy.
Okla. Stat. tit. 36, § 36-625 — OK Code / Title 36 / Section 36-625
Credit against tax by investment in Oklahoma securities
Status: in_force

A. If the annual statement of any insurance company or other

entity taxed pursuant to the provisions of Section 624 of this title

covering the period of time from January 1, 1988 through June 30,

1988, shows it to have investments at the close of said period of

time in Oklahoma securities, as hereinafter defined, of as much as

two percent (2%) but less than twelve percent (12%) of its admitted

assets, it will be entitled to a credit on the premium tax levied on

premiums collected during said period of time by paragraph 2 of

Section 624 of this article so as to reduce the same to a tax of two

and three-fourths percent (2 3/4%); if said investments are as much

as twelve percent (12%) but less than fourteen percent (14%) of said

assets its annual premium tax shall be reduced to a tax of two and

one-half percent (2 1/2%); if said investments are as much as

fourteen percent (14%) but less than sixteen percent (16%) of said

assets its annual premium tax shall be reduced to a tax of two and

one-fourth percent (2 1/4%); if said investments are as much as

sixteen percent (16%) but less than eighteen percent (18%) of said

assets its annual premium tax shall be reduced to a tax of two

percent (2%); if said investments are as much as eighteen percent

(18%) but less than twenty percent (20%) of said assets its annual

premium tax shall be reduced to a tax of one and three-fourths

percent (1 3/4%); if said investments are as much as twenty percent

(20%) but less than twenty-two percent (22%) of said assets its

annual premium tax shall be reduced to a tax of one and one-half

percent (1 1/2%); if said investments are as much as twenty-two

percent (22%) but less than twenty-four percent (24%) of said assets

its annual premium tax shall be reduced to a tax of one and one-

fourth percent (1 1/4%); if said investments are as much as twenty-

four percent (24%) but less than twenty-six percent (26%) of said

assets its annual premium tax shall be reduced to a tax of one

percent (1%); if said investments are as much as twenty-six percent

(26%) percent but less than twenty-eight percent (28%) of said

assets its annual premium tax shall be reduced to a tax of three-

fourths of one percent (3/4 of 1%); if said investments are as much

as twenty-eight percent (28%) but less than thirty percent (30%) of

Oklahoma Statutes - Title 36. Insurance Page 144

said assets its annual premium tax shall be reduced to a tax of one-

half of one percent (1/2 of 1%); if said investments are as much as

thirty percent (30%) of said assets its annual premium tax shall be

reduced to no percent (0%).

B. If the annual statement of any insurance company or other

entity taxed pursuant to the provisions of Section 624 of this title

covering calendar year 1988 shows it to have investments in Oklahoma

securities, as hereinafter defined, for the period of time beginning

July 1, 1988 through December 31, 1988, of as much as two percent

(2%) but less than twelve percent (12%) of its admitted assets, it

will be entitled to a credit on the premium tax levied by paragraph

2 of Section 624 of this article so as to reduce the same to a tax

of two and three-fourths percent (2 3/4%); if said investments are

as much as twelve percent (12%) but less than fourteen percent (14%)

of said assets its annual premium tax shall be reduced to a tax of

two and one-half percent (2 1/2%); if said investments are as much

as fourteen percent (14%) but less than sixteen percent (16%) of

said assets its annual premium tax shall be reduced to a tax of two

and one-fourth percent (2 1/4%); if said investments are as much as

sixteen percent (16%) but less than eighteen percent (18%) of said

assets its annual premium tax shall be reduced to a tax of two

percent (2%); if said investments are as much as eighteen percent

(18%) but less than twenty percent (20%) of said assets its annual

premium tax shall be reduced to a tax of one and three-fourths

percent (1 3/4%); if said investments are as much as twenty percent

(20%) but less than twenty-two percent (22%) of said assets its

annual premium tax shall be reduced to a tax of one and one-half

percent (1 1/2%); if said investments are as much as twenty-two

percent (22%) but less than twenty-four percent (24%) of said assets

its annual premium tax shall be reduced to a tax of one and one-

fourth percent (1 1/4%); if said investments are as much as twenty-

four percent (24%) of said assets its annual premium tax shall be

reduced to a tax of one percent (1%). The credits authorized by

this subsection and the credits authorized by Section 624.1 of this

title shall not reduce the premium tax rate for premiums collected

on or after July 1, 1988 through December 31, 1988, of an insurance

company or other entity subject to said tax to less than one percent

(1%).

C. Beginning with the taxes payable for calendar year 1989, the

premium tax levied by Section 624 of this title shall not be reduced

by the credits for investment of assets provided for in this

section.

D. Oklahoma securities as used in this section shall mean real

estate in this state, bonds of the State of Oklahoma, bonds or

interest-bearing warrants of any county, city, town, school district

or municipality or subdivision of the State of Oklahoma, notes or

bonds secured by mortgages or other liens on real estate located in

Oklahoma Statutes - Title 36. Insurance Page 145

the State of Oklahoma, cash deposits in regularly established

national or state banks, Federal Savings and Loan Associations,

Federal Savings Banks, or any institution insured by either the

Federal Deposit Insurance Corporation or Federal Savings and Loan

Insurance Corporation, in this state on the basis of the average

monthly deposits throughout the calendar year, policy loans secured

by the legal reserve on policies insuring residents of the State of

Oklahoma, and any other Oklahoma property or securities in which by

the laws of the State of Oklahoma such insurance companies may

invest their funds.

Provided, that if any insurance company, copartnership,

association, interinsurance exchange, person, insurer, nonprofit

hospital service and medical indemnity corporation, or health

maintenance organization secures such a credit prior to such a

holding, it shall, within ninety (90) days after the mailing thereto

by the Insurance Commissioner of a registered notice of said holding

and the amount of said credit, pay said amount to the Insurance

Commissioner, and if it fails to do so it shall be the duty of the

Attorney General to institute proceedings in the name of the State

of Oklahoma on the relation of the Insurance Commissioner in a court

of competent jurisdiction to collect said amount.
Okla. Stat. tit. 36, § 36-6060.4b — OK Code / Title 36 / Section 36-6060.4b
Standard serological tests for syphilis
Status: in_force

A. As used in this section:

1. “Health benefit plan” has the same meaning as provided by

Section 6060.4 of Title 36 of the Oklahoma Statutes; and

2. “Medically necessary” means services or supplies provided by

a health care provider that are:

a. provided for the diagnosis of syphilis,

b. necessary for and appropriate to the diagnosis of

syphilis,

c. within the generally accepted standards of medical

care in the community, and

d. not solely for the convenience of the insured, the

insured’s family, or the provider.

B. A health benefit plan shall cover the cost of medically

necessary standard serological tests for syphilis required under

Section 1-515 of Title 63 of the Oklahoma Statutes.
Okla. Stat. tit. 36, § 36-319 — OK Code / Title 36 / Section 36-319
Appointment of independent hearing examiner - Fees - Time period for issuance of final
Status: in_force

Oklahoma Statutes - Title 36. Insurance Page 2period for issuance of final order.

In conducting any hearing pursuant to the Insurance Code, the

Insurance Commissioner may appoint an independent hearing examiner

who shall sit as a quasi-judicial officer. The ordinary fees and

costs of such hearing examiner shall be assessed by the hearing

examiner against the respondent, unless the respondent is the

prevailing party. Within thirty (30) days after termination of the

hearing or of any rehearing thereof or reargument thereon, unless

such time is extended by stipulation, a final order shall be issued.
Okla. Stat. tit. 36, § 36-311 — OK Code / Title 36 / Section 36-311
Annual statement by companies - Annual license or
Status: in_force

certificate of authority to transact business.

A. 1. All insurers authorized to do business under the

provisions of this Code shall, annually, on or before the first day

Oklahoma Statutes - Title 36. Insurance Page 72

of March, file with the National Association of Insurance

Commissioners (NAIC), statements which shall exhibit the financial

condition of insurers on the thirty-first day of December of the

previous year and its business of that year. Annual statements

shall be filed electronically as approved by the NAIC, along with

applicable fees. Domestic insurers shall file a printed annual

financial statement along with all supplement filings in the office

of the Insurance Commissioner annually on or before the first day of

March.

2. Foreign insurers shall file an Affidavit of Filing and

Financial Statement Attestation annually on or before the first day

of March. The Insurance Commissioner may require foreign insurers

to file the annual financial statement in a printed format. Such

document required by the Insurance Commissioner shall be due

annually on or before the first day of March.

3. For good cause shown, the Insurance Commissioner may extend

the time within which such statements may be filed. The statements

shall be in such general form and context as approved by the

National Association of Insurance Commissioners for the kinds of

insurance to be reported upon, and as supplemented for additional

information required by the Insurance Commissioner by rule. In

addition, the statements shall be prepared in accordance with the

NAIC annual statement instruction handbooks, including any

supplemental filings described in the NAIC annual instruction

handbook, and follow the accounting procedures and practices

prescribed by the NAIC accounting practices and procedure manuals as

supplemented by the Insurance Commissioner by rule. The assets and

liabilities shall be computed pursuant to the most conservative

method allowed by the laws of this state. Such statements shall be

subscribed and sworn to by the president and secretary and other

proper officers. The license or certificate of authority to

transact the business of insurance in this state shall be renewed

unless the Insurance Commissioner finds that the facts do not

warrant renewal, and that the insurer has not fully complied with

all laws applicable to the insurer. Upon initial licensure, the

Commissioner shall issue a license, or certificate of authority,

subject to all requirements and conditions of the law, to transact

business in this state, specifying in the certificate the particular

kind or kinds of insurance it is authorized to transact. The annual

statement of an insurer of a foreign country shall embrace only its

business and condition in the United States, and shall be subscribed

and sworn to by its resident manager or principal representative in

charge of its United States business, or other officer duly

authorized. Any amendments and addendums to the annual statement

subsequently filed with the Commissioner shall also be filed with

the National Association of Insurance Commissioners, and the insurer

shall pay the applicable filing fees.

Oklahoma Statutes - Title 36. Insurance Page 73

B. In the absence of actual malice, or gross negligence,

members of the National Association of Insurance Commissioners,

their duly authorized committees, subcommittees and task forces,

their delegates, National Association of Insurance Commissioners'

employees, and all others charged with the responsibility of

collecting, reviewing, analyzing and disseminating the information

developed from the filing of the annual statement shall be acting as

agents of the Commissioner under the authority of this section and

shall not be subject to civil liability for libel, slander or any

other cause of action by virtue of their collection, review and

analysis or disseminating of the data and information collected from

the filings required under this section.

C. All financial analysis ratios and examination synopses

pertaining to insurance companies, which are submitted to the

Commissioner by the National Association of Insurance Commissioners'

Insurance Regulatory Information System, are confidential records

which shall not be available for public inspection and shall not be

disclosed by the Commissioner except in receivership proceedings.
Okla. Stat. tit. 36, § 36-4010 — OK Code / Title 36 / Section 36-4010
Table of installments
Status: in_force

There shall be a table showing the amount of installments in

which the policy may provide its proceeds may be payable.
Okla. Stat. tit. 36, § 36-309.6 — OK Code / Title 36 / Section 36-309.6
Payment of charges
Status: in_force

Any insurer or person examined under the provisions of Sections

309.1 through 309.7 of this title shall pay the proper charges

incurred in such examination, including the actual expense of the

Insurance Commissioner or the expenses and compensation of an

Oklahoma Statutes - Title 36. Insurance Page 68

authorized representative and the expense and compensation of

assistants and examiners employed therein. All expenses incurred in

such examination shall be verified by affidavit and a copy shall be

filed in the office of the Commissioner.
Okla. Stat. tit. 36, § 36-6907 — OK Code / Title 36 / Section 36-6907
Reasonable standards of quality of care - Quality
Status: in_force

assurance plan and activities - Record of proceedings - Patient

record system - Medical policy - Credentialing and recredentialing

of health care providers - Termination or nonrenewal of contracts -

Emergency services.

A. Every health maintenance organization shall establish

procedures that ensure that health care services provided to

enrollees shall be rendered under reasonable standards of quality of

care consistent with prevailing professionally recognized standards

of medical practice. The procedures shall include mechanisms to

assure availability, accessibility and continuity of care.

B. The health maintenance organization shall have an ongoing

internal quality assurance program to monitor and evaluate its

health care services, including primary and specialist physician

services and ancillary and preventive health care services across

all institutional and noninstitutional settings. The program shall

include, but need not be limited to, the following:

1. A written statement of goals and objectives that emphasizes

improved health status in evaluating the quality of care rendered to

enrollees;

2. A written quality assurance plan that describes the

following:

a. the health maintenance organization's scope and

purpose in quality assurance,

b. the organizational structure responsible for quality

assurance activities,

c. contractual arrangements, where appropriate, for

delegation of quality assurance activities,

Oklahoma Statutes - Title 36. Insurance Page 1388

d. confidentiality policies and procedures,

e. a system of ongoing evaluation activities,

f. a system of focused evaluation activities,

g. a system for credentialing and recredentialing

providers, and performing peer review activities, and

h. duties and responsibilities of the designated

physician responsible for the quality assurance

activities;

3. A written statement describing the system of ongoing quality

assurance activities including:

a. problem assessment, identification, selection and

study,

b. corrective action, monitoring, evaluation and

reassessment, and

c. interpretation and analysis of patterns of care

rendered to individual patients by individual

providers;

4. A written statement describing the system of focused quality

assurance activities based on representative samples of the enrolled

population that identifies method of topic selection, study, data

collection, analysis, interpretation and report format; and

5. Written plans for taking appropriate corrective action

whenever, as determined by the quality assurance program,

inappropriate or substandard services have been provided or services

that should have been furnished have not been provided.

C. The organization shall record proceedings of formal quality

assurance program activities and maintain documentation in a

confidential manner. Quality assurance program minutes shall be

available to the Insurance Commissioner.

D. The organization shall ensure the use and maintenance of an

adequate patient record system which will facilitate documentation

and retrieval of clinical information for the purpose of the health

maintenance organization's evaluating continuity and coordination of

patient care and assessing the quality of health and medical care

provided to enrollees.

E. Enrollee clinical records shall be available to the

Insurance Commissioner or an authorized designee for examination and

review to ascertain compliance with this section, or as deemed

necessary by the Insurance Commissioner.

F. The organization shall establish a mechanism for periodic

reporting of quality assurance program activities to the governing

body, providers and appropriate organization staff.

G. The organization shall be required to establish a mechanism

under which physicians participating in the plan may provide input

into the plan's medical policy including, but not limited to,

coverage of new technology and procedures, utilization reviewproceedings - Patient record system - Medical policy - Credentialing and recredentialing of healthechanism for periodic

reporting of quality assurance program activities to the governing

body, providers and appropriate organization staff.

G. The organization shall be required to establish a mechanism

under which physicians participating in the plan may provide input

into the plan's medical policy including, but not limited to,

coverage of new technology and procedures, utilization review

Oklahoma Statutes - Title 36. Insurance Page 1389

criteria and procedures, quality, credentialing and recredentialing

criteria, and medical management procedures.

H. As used in this section "credentialing" or

"recredentialing", as applied to physicians and other health care

providers, means the process of accessing and validating the

qualifications of such persons to provide health care services to

the beneficiaries of a health maintenance organization.

Credentialing or recredentialing may include, but need not be

limited to, an evaluation of licensure status, education, training,

experience, competence and professional judgment. Credentialing or

recredentialing is a prerequisite to the final decision of a health

maintenance organization to permit initial or continued

participation by a physician or other health care provider.

1. Physician credentialing and recredentialing shall be based

on criteria as provided in the uniform credentialing application

required by Section 1-106.2 of Title 63 of the Oklahoma Statutes,

with input from physicians and other health care providers.

2. Organizations shall make information on credentialing and

recredentialing criteria available to physician applicants and other

health care providers, participating physicians, and other

participating health care providers and shall provide applicants

with a checklist of materials required in the application process.

3. When economic considerations are part of the credentialing

and recredentialing decision, objective criteria shall be used and

shall be available to physician applicants and participating

physicians. When graduate medical education is a consideration in

the credentialing and recredentialing process, equal recognition

shall be given to training programs accredited by the Accrediting

Council on Graduate Medical Education and by the American

Osteopathic Association. When graduate medical education is

considered for optometric physicians, consideration shall be given

for educational accreditation by the Council on Optometric

Education.

4. Physicians or other health care providers under

consideration to provide health care services under a managed care

plan in this state shall apply for credentialing and recredentialing

on the uniform credentialing application and provide the

documentation as outlined by the plan's checklist of materials

required in the application process.

5. A health maintenance organization (HMO) shall determine

whether a credentialing or recredentialing application is complete.

If an application is determined to be incomplete, the plan shall

notify the applicant in writing within ten (10) calendar days of

receipt of the application. The written notice shall specify the

portion of the application that is causing a delay in processing and

explain any additional information or corrections needed.

Oklahoma Statutes - Title 36. Insurance Page 1390

6. In reviewing the application, the health maintenance

organization (HMO) shall evaluate each application according to the

plan's checklist of materials required in the application process.

7. When an application is deemed complete, the HMO shall

initiate requests for primary source verification and malpractice

history within seven (7) calendar days.

8. A malpractice carrier shall have twenty-one (21) calendar

days within which to respond after receipt of an inquiry from a

health maintenance organization (HMO). Any malpractice carrier that

fails to respond to an inquiry within the allotted time frame may be

assessed an administrative penalty by the Insurance Commissioner.

9. Upon receipt of primary source verification and malpractice

history by the HMO, the HMO shall determine if the application is a

clean application. If the application is deemed clean, the HMO

shall have forty-five (45) calendar days within which to credential

or recredential a physician or other health care provider. As used

in this paragraph, "clean application" means an application that has

no defect, misstatement of facts, improprieties, including a lack of

any required substantiating documentation, or particular

circumstance requiring special treatment that impedes prompt

credentialing or recredentialing.

10. If a health maintenance organization is unable to

credential or recredential a physician or other health care provider

due to an application's not being clean, the HMO may extend the

credentialing or recredentialing process for sixty (60) calendar

days. At the end of sixty (60) calendar days, if the HMO is

awaiting documentation to complete the application, the physician or

other health care provider shall be notified of the delay by

certified mail. The physician or other health care provider may

extend the sixty-day period upon written notice to the HMO within

ten (10) calendar days; otherwise the application shall be deemed

withdrawn.

11. In no event shall the entire credentialing or

recredentialing process exceed one hundred eighty (180) calendar

days.

12. A health maintenance organization shall be prohibited from

solely basing a denial of an application for credentialing or

recredentialing on the lack of board certification or board

eligibility and from adding new requirements solely for the purpose

of delaying an application.

13. Any HMO that violates the provisions of this subsection may

be assessed an administrative penalty by the Insurance Commissioner.

I. Health maintenance organizations shall not discriminate

against enrollees with expensive medical conditions by excluding

practitioners with practices containing a substantial number of

these patients.

Oklahoma Statutes - Title 36. Insurance Page 1391

J. Health maintenance organizations shall, upon request,

provide to a physician whose contract is terminated or not renewed

for cause the reasons for termination or nonrenewal. Health

maintenance organizations shall not contractually prohibit such

requests.

K. No HMO shall engage in the practice of medicine or any other

profession except as provided by law nor shall an HMO include any

provision in a provider contract that precludes or discourages a

health maintenance organization's providers from:

1. Informing a patient of the care the patient requires,

including treatments or services not provided or reimbursed under

the patient's HMO; or

2. Advocating on behalf of a patient before the HMO.

L. Decisions by a health maintenance organization 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. Health maintenance organizations shall not deny an otherwise

covered emergency service based solely upon lack of notification to

the HMO.

N. Health maintenance organizations 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 HMO contract.

O. If within a period of thirty (30) minutes after receiving a

request from a hospital emergency department for a specialty

consultation, a health maintenance organization fails to identify an

appropriate specialist who is available and willing to assume the

care of the enrollee, the emergency department may arrange for

emergency services by an appropriate specialist that are medically

necessary to attain stabilization of an emergency medical condition,

and the HMO shall not deny coverage for the services due to lack of

prior authorization.

P. The reimbursement policies and patient transfer requirements

of a health maintenance organization shall not, directly or

indirectly, require a hospital emergency department or provider to

violate the federal Emergency Medical Treatment and Active Labor

Act. If a member of an HMO is transferred from a hospital emergency

Oklahoma Statutes - Title 36. Insurance Page 1392

department facility to another medical facility, the HMO shall

reimburse the transferring facility and provider for services

provided to attain stabilization of the emergency medical condition

of the member in accordance with the federal Emergency Medical

Treatment and Active Labor Act.
Okla. Stat. tit. 36, § 36-602 — OK Code / Title 36 / Section 36-602
"Foreign" insurer defined
Status: in_force

A "foreign" insurer is one formed under the laws of another

state or government of the United States.
Okla. Stat. tit. 36, § 36-2010 — OK Code / Title 36 / Section 36-2010
Payment of covered claims - Recovery from certain persons
Status: in_force

- Priority of claims.

A. Any person recovering under the Oklahoma Property and

Casualty Insurance Guaranty Association Act shall be deemed to have

assigned the rights of the person under the policy to the Oklahoma

Property and Casualty Insurance Guaranty Association to the extent

of the recovery of the person from the Association. Every insurer

or claimant seeking the protection of this act shall cooperate with

the Association to the same extent as the person would have been

required to cooperate with the insolvent insurer. In the case of an

insolvent insurer operating on a plan with assessment liability,

payment of covered claims by the Association shall not operate to

reduce the liability of insureds to the receiver, liquidator or

statutory successor for unpaid assessments.

B. The Association shall have the right to recover from any

person who is an affiliate of the insolvent insurer all amounts paid

by the Association on behalf of that person pursuant to the

provisions of the Oklahoma Property and Casualty Insurance Guaranty

Association Act, whether for indemnity, defense or otherwise.

C. The receiver, liquidator or statutory successor of an

insolvent insurer shall be bound by settlements of covered claims by

the Association or a similar organization in another state. The

Association shall have a priority over general creditors of the

insolvent insurer against the assets of the insolvent insurer equal

to the amount of covered claims paid by the Association pursuant to

the Oklahoma Property and Casualty Insurance Guaranty Association

Act. No other priority under the provisions of this section unless

the laws of such other state grant a similar priority to the

Association, in which case such other association or similar

organization of another state shall have a priority against the

assets of the insolvent insurer equal to that given to the

Association by such other state.

D. The Association shall periodically file with the receiver or

liquidator of the insolvent insurer statements of the covered claims

paid by the Association and estimates of anticipated claims on the

Association which shall preserve the rights of the Association

against the assets of the insolvent insurer.

Oklahoma Statutes - Title 36. Insurance Page 584
Okla. Stat. tit. 36, § 36-307.5 — OK Code / Title 36 / Section 36-307.5
Insurance Department Anti-Fraud Revolving Fund
Status: in_force

A. There is hereby created in the State Treasury a revolving

fund for the Oklahoma Insurance Department, to be designated the

"Insurance Department Anti-Fraud Revolving Fund". The fund shall be

a continuing fund, not subject to fiscal year limitation, and shall

consist of any monies designated to the fund as provided in

subsections B and C of this section. 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. The fund shall be used for the

purpose of administering investigations of abuse, negligence or

criminal conduct regarding insurance laws or regulations.

B. The Department shall deposit all of the monies obtained as a

result of insurance-related crimes, and other fines, late fees, and

penalties assessed and collected into the Insurance Department Anti-

Fraud Revolving Fund.

C. Each year, the Department shall transfer to the General

Revenue Fund the first Four Hundred Eighty-two Thousand Five Hundred

Dollars ($482,500.00) collected by the Department and deposited in

the Insurance Department Anti-Fraud Revolving Fund. The next Five

Hundred Thousand Dollars ($500,000.00) collected by the Department

each year shall be divided evenly between the Department and the

Oklahoma Attorney General. All collections to be submitted to the

Attorney General shall be deposited in the Attorney General's

Insurance Fraud Unit Revolving Fund. Any collections above Nine

Hundred Eighty-two Thousand Five Hundred Dollars ($982,500.00) shall

be deposited each year into the Insurance Department Anti-Fraud

Revolving Fund and shall be retained for use by the Department for

the purposes of administering investigations of abuse, negligence or

criminal conduct regarding insurance laws or regulations.
Okla. Stat. tit. 36, § 36-6103.10 — OK Code / Title 36 / Section 36-6103.10
Rulemaking
Status: in_force

The Insurance Commissioner may promulgate reasonable rules

necessary to carry out the provisions of Sections 6103.1 through

6103.11 of this title.
Okla. Stat. tit. 36, § 36-6955 — OK Code / Title 36 / Section 36-6955
Transfers for existing health maintenance organizations
Status: in_force

to nonprofit status.

Any existing Oklahoma licensed domestic health maintenance

organization that amends its Certificate of Incorporation and is

approved as a nonprofit health maintenance organization corporation

by the Insurance Commissioner may utilize its existing contracts,

forms and rates already on file with the Commissioner.
Okla. Stat. tit. 36, § 36-6060 — OK Code / Title 36 / Section 36-6060
Mammography screening and diagnostic examination
Status: in_force

A. For the purposes of this section:

1. "Breast magnetic resonance imaging" means a diagnostic tool

used to produce detailed pictures of the structure of the breast;

2. "Breast ultrasound" means a noninvasive, diagnostic imaging

technique that uses high-frequency sound waves to produce detailed

images of the breast;

3. "Diagnostic examination for breast cancer" means a medically

necessary and clinically appropriate examination, as defined by

current guidelines and as determined by a clinician who is

evaluating the individual for breast cancer, to evaluate the

abnormality in the breast that is:

a. seen or suspected from a screening examination for

breast cancer,

b. detected by another means of examination, or

c. suspected based on the medical history or family

medical history of the individual.

This examination may include, but is not limited to, a contrast–

enhanced mammogram, diagnostic mammogram, breast magnetic resonance

imaging, a breast ultrasound, or molecular breast imaging;

4. "Diagnostic mammography" means a diagnostic tool that:

a. uses X-ray, and

b. is designed to evaluate abnormality in a breast;

5. "Health benefit plan" means any plan or arrangement as

defined in subsection C of Section 6060.4 of this title;

6. "Low-dose mammography" means:

a. the X-ray examination of the breast using equipment

specifically dedicated for such purpose, with an

average radiation exposure delivery of less than one

rad mid-breast and with two views for each breast,

b. digital mammography, or

c. breast tomosynthesis;

7. "Breast tomosynthesis" means a radiologic mammography

procedure involving the acquisition of projection images over a

Oklahoma Statutes - Title 36. Insurance Page 1083

stationary breast to produce cross-sectional digital three-

dimensional images of the breast from which breast cancer screening

diagnoses may be made;

8. "Screening mammography" means a radiologic procedure

provided to a woman, who has no signs or symptoms of breast cancer,

for the purpose of early detection of breast cancer, including

breast tomosynthesis; and

9. "Supplemental examination" means a medically necessary and

appropriate examination of the breast, including, but not limited

to, such an examination using contrast–enhanced mammography, breast

magnetic resonance imaging, breast ultrasound, or molecular breast

imaging that is:

a. used to screen for breast cancer when there is no

abnormality seen or suspected, and

b. based on personal or family medical history or

additional factors that increase the individual's risk

of breast cancer, including heterogeneously or

extremely dense breasts.

B. All health benefit plans shall include the coverage

specified by this section for a low-dose mammography screening for

the presence of occult breast cancer and a diagnostic and

supplemental examination for breast cancer. Such coverage shall

not:

1. Be subject to the policy deductible, co-payments and co-

insurance limits of the plan; or

2. Require that a female undergo a mammography screening at a

specified time as a condition of payment.

C. 1. Any female thirty-five (35) through thirty-nine (39)

years of age shall be entitled pursuant to the provisions of this

section to coverage for a low-dose mammography screening once every

five (5) years.

2. Any female forty (40) years of age or older shall be

entitled pursuant to the provisions of this section to coverage for

an annual low-dose mammography screening.

D. If application of this act would result in health savings

account ineligibility under Section 223 of the federal Internal

Revenue Code, as amended, the provisions of this section shall only

apply to health savings accounts with qualified high deductible

health plans with respect to the deductible of such a plan after the

enrollee has satisfied the minimum deductible. Provided, however,

the provisions of this section shall apply to items of services that

are preventive care pursuant to Section 223(c)(2)(c) of the federal

Internal Revenue Code, as amended, regardless of whether the minimum

deductible has been satisfied.
Okla. Stat. tit. 36, § 36-311A.18 — OK Code / Title 36 / Section 36-311A.18
Canadian and British insurers - Letter of conformity
Status: in_force

A. In the case of Canadian and British insurers, the annual

audited financial report shall be defined as the annual statement of

total business on the form filed by such companies with their

supervision authority duly audited by an independent chartered

accountant.

B. For such insurers, the letter required in subsection B of

Section 311A.6 of this title shall state that the accountant is

aware of the requirements relating to the annual audited financial

report filed with the Insurance Commissioner pursuant to Section

311A.4 of this title and shall affirm that the opinion expressed is

in conformity with those requirements.
Okla. Stat. tit. 36, § 36-7130 — OK Code / Title 36 / Section 36-7130
Redeposit of improperly withdrawn monies
Status: in_force

In the event the Insurance Commissioner determines that monies

have been improperly paid by the trustee to the organization during

the period covered by the examination, the Commissioner shall order

the organization to redeposit to the trust the monies improperly

withdrawn within sixty (60) days.
Okla. Stat. tit. 36, § 36-6003 — OK Code / Title 36 / Section 36-6003
Exceptions
Status: in_force

Nothing in this Act shall apply to life, accident, health and

hospitalization policies or annuity contracts.
Okla. Stat. tit. 36, § 36-1923 — OK Code / Title 36 / Section 36-1923
Exemption of Commissioner from fees
Status: in_force

The Insurance Commissioner shall not be required to pay any fee

to any public officer in this state for filing, recording, issuing a

transcript or certificate or authenticating any paper or instrument

pertaining to the exercise by the Insurance Commissioner of any of

the powers or duties conferred upon him under this article, whether

or not such paper or instrument be executed by the Insurance

Commissioner or his assistants, deputies, employees or attorneys of

record and whether or not it is connected with the commencement of

any action or proceeding by or against the Insurance Commissioner,

or with the subsequent conduct of such action or proceeding.
Okla. Stat. tit. 36, § 36-6157 — OK Code / Title 36 / Section 36-6157
Rules and regulations
Status: in_force

The Commissioner may adopt any rules and regulations necessary

for the implementation and administration of the provisions of the

Prepaid Dental Plan Act.
Okla. Stat. tit. 36, § 36-6470.3 — OK Code / Title 36 / Section 36-6470.3
License – Limitations on risks covered – Requirements
Status: in_force

for conducting business in state – Information required – Fees –

Provisional license.

A. A captive insurance company, when permitted by its articles

of incorporation or charter, may apply to the Insurance Commissioner

for a license to do any and all insurance authorized by this title;

however:

1. A pure captive insurance company may not insure any risks

other than those of its parent, affiliated companies of its parent,

or any controlled unaffiliated business, or a combination thereof;

2. An association captive insurance company may not insure any

risks other than those of the member organizations of its

association and their affiliated companies;

3. An industrial insured captive insurance company may not

insure any risks other than those of the industrial insureds that

Oklahoma Statutes - Title 36. Insurance Page 1213

comprise the industrial insured group and their affiliated

companies;

4. A special purpose captive insurance company may provide

insurance or reinsurance, or both, for risks as approved by the

Insurance Commissioner;

5. A captive insurance company may not provide personal motor

vehicle or homeowner's insurance coverage or any component of these

coverages;

6. Any captive insurance company may provide workers'

compensation insurance, insurance in the nature of workers'

compensation insurance, and reinsurance of such policies, unless

prohibited by federal law or laws of this state or any other state

having jurisdiction over the transaction; and

7. A series captive insurance company may not insure any risks

other than those permitted in paragraphs 1 through 6 of this

subsection. A series may elect to apply for a certificate of

authority as an association captive insurance company, industrial

insured captive insurance company, a pure captive insurance company,

series captive insurance company, or a special purpose captive

insurance company.

B. To conduct insurance business in this state a captive

insurance company shall:

1. Obtain from the Insurance Commissioner a license authorizing

it to conduct insurance business in this state;

2. Maintain a place of business in this state designated as its

registered office; and

3. Appoint a resident registered agent to accept service of

process and to otherwise act on its behalf in this state. Whenever

the registered agent cannot with reasonable diligence be found at

the registered office of the captive insurance company, the

Insurance Commissioner shall be deemed an agent of the captive

insurance company upon whom any process, notice, or demand may be

served.

C. 1. Before receiving a license, a captive insurance company

shall file with the Commissioner a certified copy of its

organizational documents, a statement under oath of its president or

other authorized person showing its financial condition, a

feasibility study, a business plan, and any other statements,

information or documents required by the Commissioner.

2. In addition to the information required by paragraph 1 of

this subsection, an applicant captive insurance company shall file

with the Insurance Commissioner evidence of:

a. the amount and liquidity of its assets relative to the

risks to be assumed,

b. the adequacy of the expertise, experience, and

character of the person or persons who will manage it,

c. the overall soundness of its plan of operation,

Oklahoma Statutes - Title 36. Insurance Page 1214

d. the adequacy of the loss prevention programs of its

insureds, and

e. such other factors considered relevant by the

Insurance Commissioner in ascertaining whether the

proposed captive insurance company will be able to

meet its obligations.

3. Information submitted pursuant to this subsection is

confidential and may not be made public by the Insurance

Commissioner or an agent or employee of the Insurance Commissioner

without the written consent of the company, except that:

a. information may be discoverable by a party in a civil

action or contested case to which the captive

insurance company that submitted the information is a

party, upon a showing by the party seeking to discover

the information that:

(1) the information sought is relevant to and

necessary for the furtherance of the action or

case,

(2) the information sought is unavailable from other

nonconfidential sources, and

(3) a subpoena issued by a judicial or administrative

officer of competent jurisdiction has been

submitted to the Insurance Commissioner; however,

the provisions of this paragraph do not apply to

an industrial insured captive insurance company

insuring the risks of an industrial insured

group, and

b. the Insurance Commissioner may disclose the

information to a public officer having jurisdiction

over the regulation of insurance in another state if:

(1) the public official agrees in writing to maintain

the confidentiality of the information, and

(2) the laws of the state in which the public

official serves require the information to be

confidential.

D. Except for a special purpose captive insurance company, a

captive insurance company shall pay to the Department a

nonrefundable application fee of Two Hundred Dollars ($200.00) for

reviewing its application to determine whether it is complete and in

addition, the Insurance Commissioner may retain legal, financial,

and examination services from outside the Department, the reasonable

cost of which may be charged against the applicant. A special

purpose captive insurance company shall pay to the Department a

nonrefundable fee of Three Hundred Dollars ($300.00). Also, a

captive insurance company shall pay a license fee for the year of

registration and a renewal fee of Three Hundred Dollars ($300.00).

Oklahoma Statutes - Title 36. Insurance Page 1215

E. If the Insurance Commissioner is satisfied that the

documents and statements filed by the captive insurance company

comply with the provisions of the Oklahoma Captive Insurance Company

Act, the Insurance Commissioner may grant a license authorizing the

company to do insurance business in this state until the succeeding

March 1 at which time the license may be renewed.

F. 1. Notwithstanding any other provision of this act, the

Insurance Commissioner may issue a provisional license to any

applicant captive insurance company if the Insurance Commissioner

deems that the public interest will be served by the issuance of

such license.

2. As a condition precedent to the issuance of a provisional

license under this section, the applicant shall have filed a

complete application containing all information required by this

section, paid all fees required for licensure and the Insurance

Commissioner shall have made a preliminary finding that the

expertise, experience and character of the person or persons who

will control and manage the applicant captive insurer are

acceptable.

3. The Insurance Commissioner may by order limit the authority

of any provisional licensee in any way deemed necessary to protect

insureds and the public. The Insurance Commissioner may by order

revoke a provisional license if the interests of insureds or the

public are endangered. If the applicant fails to complete the

regular licensure application process, the provisional license shall

terminate automatically.
Okla. Stat. tit. 36, § 36-6455 — OK Code / Title 36 / Section 36-6455
Conditions for doing business in state - Prohibited acts
Status: in_force

Risk retention groups chartered and licensed in states other

than this state and seeking to do business as risk retention groups

in this state shall observe and abide by the laws of this state as

follows:

A. Before offering insurance in this state, a risk retention

group shall submit to the Commissioner of this state, on a form

prescribed by the National Association of Insurance Commissioners of

this state:

1. A statement identifying the state or states in which the

risk retention group is chartered and licensed as a liability

insurance company, the date of chartering, its principal place of

business, and such other information, including information on its

membership, as the Commissioner of this state may require to verify

that the group is qualified to be licensed as a risk retention

group;

2. A copy of its plan of operation or a feasibility study and

revisions of such plan or study submitted to its state of domicile;

provided, however, that the provision relating to the submission of

a plan of operation or a feasibility study shall not apply with

respect to any line or classification of liability insurance which:

a. was defined in the federal Product Liability Risk

Retention Act of 1981 before October 27, 1986, and

b. was offered before such date by a risk retention group

which had been chartered and operating for not less

than three (3) years before such date;

3. A copy of any material revision to its plan of operation or

feasibility study required by subsection B of Section 6454 within

thirty (30) days of the date of approval of the revision by the

Insurance Commissioner of its chartering state, or within thirty

(30) days of filing if no such approval is required; and

Oklahoma Statutes - Title 36. Insurance Page 1201

4. A statement of registration which designates the

Commissioner of this state as its agent for the purpose of receiving

service of legal documents or process.

The risk retention group shall pay a filing fee, in an amount

determined by the Commissioner.

B. Any risk retention group doing business in this state shall

submit to the Commissioner of this state:

1. A copy of the group's financial statement submitted to its

state of domicile, which shall be certified by an independent public

accountant or certified public accountant and contain a statement of

opinion on loss and loss adjustment expense reserves made by a

member of the American Academy of Actuaries or a loss reserve

specialist qualified pursuant to criteria established by the

National Association of Insurance Commissioners;

2. A copy of each examination of the risk retention group as

certified by a Commissioner or public official conducting the

examination;

3. Upon request by the Commissioner of this state, a copy of

any audit performed with respect to the risk retention group; and

4. Such information as may be required to verify its continuing

qualification as a risk retention group.

C. 1. Each risk retention group shall be liable for the

payment of premium taxes and taxes on premiums of direct business

for risk, and shall be subject to taxation at the same rate and

subject to the same interest, fines, and penalties for nonpayment as

that applicable to foreign admitted insurers.

2. To the extent licensed agents or brokers are utilized

pursuant to Section 6462 of this title, they shall report to the

Commissioner premiums for direct business for risks resident or

located within the state which the licensees have placed with or on

behalf of a risk retention group not chartered in this state.

3. To the extent that insurance agents or brokers are utilized

pursuant to Section 6462 of this title, each agent or broker shall

keep a complete and separate record of all policies procured from

each such risk retention group, which record must be open to

examination by the Insurance Commissioner or a designee of the

Insurance Commissioner or a representative of the Insurance

Commissioner on demand. These records shall, for each policy and

each kind of insurance provided thereunder, include the following:

a. the limit of liability,

b. the time period covered,

c. the effective date,

d. the name of the risk retention group which issued the

policy,

e. the gross premium charged, and

f. the amount of return premiums, if any.

Oklahoma Statutes - Title 36. Insurance Page 1202

D. Any risk retention group, its agents and representatives

shall comply with the provisions of the Unfair Claims Settlement

Practices Act of this state.

E. Any risk retention group shall comply with the laws of this

state regarding deceptive, false or fraudulent acts or practices.

However, if the Commissioner of this state seeks an injunction

regarding such conduct, the injunction shall be obtained from a

court of competent jurisdiction.

F. Any risk retention group shall submit to an examination by

the Commissioner of this state to determine its financial condition

if the Commissioner of the jurisdiction in which the group is

chartered has not initiated an examination or does not initiate an

examination within sixty (60) days after a request to do so is made

by the Commissioner of this state. Any such examination shall be

coordinated to avoid unjustified repetition of examination by

Commissioners of other states and shall be conducted in an

expeditious manner and in accordance with the National Association

of Insurance Commissioner's Examiner Handbook.

G. Every application form for insurance from a risk retention

group and every policy issued by a risk retention group shall

contain in ten-point type on the front page and the declaration

page, the following notice:

NOTICE

This policy is issued by your risk retention group. Your risk

retention group may not be subject to all of the insurance laws and

regulations of your state. State insurance insolvency guaranty

funds are not available for your risk retention group.

H. The following acts by a risk retention group are hereby

prohibited:

1. The solicitation or sale of insurance by a risk retention

group to any person who is not eligible for membership in such

group; and

2. The solicitation or sale of insurance by, or operation of, a

risk retention group that is in a hazardous financial condition or

is financially impaired.

I. No risk retention group shall be allowed to do business in

this state if an insurance company is directly or indirectly a

member or owner of such risk retention group, other than in the case

of a risk retention group all of whose members are insurance

companies.

J. The terms of any insurance policy offered by a risk

retention group shall not provide, or be construed to provide,

coverage prohibited generally by the Insurance Code or any other law

of this state or declared unlawful by the highest court of this

state whose law applies to insurance policy.

K. A risk retention group which is not chartered in this state

but is doing business in this state shall comply with a lawful order

Oklahoma Statutes - Title 36. Insurance Page 1203

issued in a voluntary dissolution proceeding or in a delinquency

proceeding commenced by an Insurance Commissioner of any state if

there has been a finding of financial impairment after an

examination by any state Insurance Commissioner under subsection F

of this section.
Okla. Stat. tit. 36, § 36-6060.7 — OK Code / Title 36 / Section 36-6060.7
Audiological services and hearing aids for children
Status: in_force

A. 1. Any health benefit plan that is offered, issued, or

renewed on or after the effective date of this act shall provide

coverage for audiological services and hearing aids for children up

to eighteen (18) years of age.

2. Such coverage:

a. shall only apply to hearing aids that are prescribed,

filled and dispensed by a licensed audiologist, and

b. may limit the hearing aid benefit payable for each

hearing-impaired ear to every forty-eight (48) months;

provided, however, coverage may provide for up to four

additional ear molds per year for children up to two

(2) years of age.

B. Nothing in this section shall be construed to extend the

practice or privileges of any health care provider beyond that

provided in the laws governing the practice and privileges of the

provider.

C. 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, § 36-2691.4 — OK Code / Title 36 / Section 36-2691.4
Deposit for protection of subscribers
Status: in_force

A. Each corporation governed by this article shall at all times

have on deposit with the Insurance Commissioner the sum of Fifteen

Thousand Dollars ($15,000.00). In addition every such corporation

shall deposit with the Commissioner, not later than each February 1,

an amount equal to two percent (2%) of the gross subscriptions

collected during the preceding calendar year, until the deposit of

such corporation reaches a total of Twenty-five Thousand Dollars

($25,000.00). All such deposits shall be held by the Commissioner

in trust for the benefit and protection of the subscribers of the

corporation making the deposit.

B. The deposit prescribed by this section shall be subject to

withdrawal in whole or in part on the order of and as directed by

the Commissioner and may be invested in bonds of the United States

or of the State of Oklahoma, or any political subdivision thereof,

or state warrants, which shall be assigned to the Commissioner and

held by the Commissioner as provided for original deposits. The

securities may, with the approval of the Commissioner, be exchanged

for similar securities or cash of equal amount. Interest on

Oklahoma Statutes - Title 36. Insurance Page 707

securities so deposited shall be payable to the corporation

depositing the same.

C. An unsettled final judgment, arising upon a certificate of

participation against such a corporation, shall be a lien on the

deposit prescribed by this section, subject to execution after

thirty (30) days from the entry of final judgment. If the deposit

is reduced thereby, it shall be replenished within ninety (90) days.

D. Upon the liquidation or dissolution of such corporation and

the satisfaction of all its liabilities, any balance remaining in

the deposit in the hands of the Commissioner and any other assets of

the insurer shall be distributed in the manner directed by the

directors of the chiropractic service corporation.
Okla. Stat. tit. 36, § 36-6124.1 — OK Code / Title 36 / Section 36-6124.1
Transfer of prepaid funeral benefit permits -
Status: in_force

Notification – Application.

A. No prepaid funeral benefit permit shall be transferable from

one organization to another except as provided in this section. The

selling organization shall notify the Insurance Commissioner at

least forty-five (45) days prior to transfer of ownership.

Notification shall be electronic in the manner and form prescribed

by the Insurance Commissioner and shall contain at a minimum the

following information:

1. The name of the acquiring organization;

Oklahoma Statutes - Title 36. Insurance Page 1140

2. The date the acquiring organization will take control of the

selling organization;

3. A listing of all unrealized prepaid funeral benefit

contracts funded by insurance assignments;

4. A listing of all unrealized prepaid funeral benefit

contracts funded by trusts;

5. A detailed description of existing trusts to include, but

not be limited to, the name of the contract holder and the trust

value per contract; and

6. Any other information the Insurance Commissioner may

request.

B. The Insurance Commissioner may waive or lessen the notice

requirement provided for in subsection A of this section upon good

cause shown.

C. The acquiring organization shall make application for a

permit at least thirty (30) days prior to the transfer of ownership.

Approval is contingent upon the acquiring organization receiving an

establishment license as provided for in Sections 395.1 through

396.33 of Title 59 of the Oklahoma Statutes. The permit application

shall include an assumption agreement executed by the acquiring

organization and the selling organization.

D. The acquiring organization shall be issued a prepaid funeral

benefit permit prior to the relinquishment of control of the trust

by the selling organization. The acquiring organization shall not

access funds held in the trust until authorization has been given by

the Insurance Commissioner.

E. Upon good cause shown, the Insurance Commissioner may deny

transfer of the trust from the selling organization to the acquiring

organization.

F. The Insurance Commissioner may take any actions pursuant to

Articles 18 and 19 of this title as a means of safeguarding the

rights and interests of the individual contract holders or

purchasers, their beneficiaries, successors, or personal

representatives, or whenever necessary to protect the public

welfare. The organization may make application to the Insurance

Commissioner to draw down funds upon fulfillment of the prepaid

funeral service contract.

G. Whenever an organization refuses to submit the books,

records, papers and instruments of the prepaid funeral benefit

contracts to the examination and inspection of the assistants or

examiners of the Insurance Commissioner, or refuses or neglects to

establish or maintain a prepaid funeral benefit permit in accordance

with the requirements of the Prepaid Funeral Benefits Act within

ninety (90) days after a written demand to establish or maintain a

prepaid funeral benefit permit is made by the Insurance

Commissioner, or in any manner obstructs or interferes with the

examination of its prepaid funeral benefit contracts or refuses to

Oklahoma Statutes - Title 36. Insurance Page 1141

be examined on oath concerning any of the affairs of its prepaid

funeral benefit contracts, or for any other grounds listed in

Article 18 or 19 of this title, the Insurance Commissioner may make

application for receivership in the manner of a domestic insurer or

take any other action pursuant to Articles 18 and 19 of this title,

in addition to the penalties and other enforcement provisions of

this act.

H. The Insurance Commissioner may prescribe rules concerning

matters incidental to this section.

I. For the purposes of Sections 6121 through 6136.18 of this

title, "personal representative" means the person or persons

designated by the purchaser of the contract for prepaid funeral

benefits as having rights of ownership and control to the prepaid

funds upon death of the purchaser; the guardian, executor, or the

personal representative of the estate of the purchaser; or the

claiming successor or successors establishing lawful right to the

prepaid funds in accordance with Section 393 of Title 58 of the

Oklahoma Statutes.
Okla. Stat. tit. 36, § 36-1628 — OK Code / Title 36 / Section 36-1628
Definitions - Deposit of securities - Custodial
Status: in_force

responsibilities.

A. As used in this section:

1. "Agent" shall mean a national bank, state bank, or trust

company which maintains an account in its name in a clearing

corporation or which is a member of the Federal Reserve System and

through which a custodian participates in a clearing corporation or

the Federal Reserve book-entry system, except that with respect to

securities issued by institutions organized or existing under the

laws of any foreign country or securities used to meet the deposit

requirements pursuant to the laws of a foreign country as a

condition of doing business therein, "agent" may, with the prior

approval of the Commissioner, include a corporation which is

organized or existing under the laws of any foreign country and

which is legally qualified under such law to accept custody of

securities;

2. "Clearing corporation" shall mean a corporation as defined

in paragraph (5) of subsection (a) of Section 8-102 of Title 12A of

the Oklahoma Statutes which is organized for the purpose of

effecting transactions in securities by computerized book-entry,

except that with respect to securities issued by institutions

organized or existing under the laws of any foreign country or

securities used to meet the deposit requirements pursuant to the

laws of a foreign country as a condition of doing business therein,

"clearing corporation" may include a corporation which is organized

or existing under the laws of any foreign country and which is

legally qualified under such laws to effect transactions in

securities by computerized book-entry. The term “clearing

corporation” also includes “Treasury/Reserve Automated Debt Entry

Securities System” and “Treasury Direct” book-entry securities

systems established pursuant to 31 U.S.C., Section 3100 et seq., 12

U.S.C. pt. 391 and 5 U.S.C. pt. 301. Clearing corporations shall

have been approved for use by the Commissioner;

3. "Commissioner" shall mean the Insurance Commissioner of the

State of Oklahoma or an authorized representative;

Oklahoma Statutes - Title 36. Insurance Page 441

4. "Custodian" shall mean a national bank, state bank, or trust

company which has at all times aggregate capital, surplus, and

undivided profits of not less than Five Hundred Thousand Dollars

($500,000.00) and which is regulated by either state banking laws or

is a member of the Federal Reserve System and which is legally

qualified to accept custody of securities in accordance with the

standards set forth below, or a broker-dealer as defined by Section

1-102 of Title 71 of the Oklahoma Statutes that is registered with

and subject to the jurisdiction of the Securities and Exchange

Commission, maintains membership in the Securities Investor

Protection Corporation, and has a tangible net worth equal to or

greater than Two Hundred Fifty Million Dollars ($250,000,000.00),

except that with respect to securities issued by institutions

organized or existing under the laws of any foreign country, or

securities used to meet the deposit requirements pursuant to the

laws of a foreign country as a condition of doing business therein,

"custodian" may include a bank, trust company, or similar

institution which has at all times aggregate capital, surplus, and

undivided profits of not less than the equivalent of Five Hundred

Thousand Dollars ($500,000.00) and which is legally qualified to

accept custody of securities;

5. "Federal Reserve book-entry system" shall mean the

computerized systems sponsored by the United States Department of

the Treasury and certain agencies and instrumentalities of the

United States for holding and transferring securities of the United

States government and the agencies and instrumentalities,

respectively, in Federal Reserve Banks through banks which are

members of the Federal Reserve System or which otherwise have access

to the computerized systems; and

6. "Securities" shall mean certificated securities and

uncertificated securities as defined in paragraphs (4) and (18) of

subsection (a) of Section 8-102 of Title 12A of the Oklahoma

Statutes.

B. 1. a. Notwithstanding any other provision of law, a domestic

insurance company may deposit or arrange for the

deposit of securities held in or purchased for its

general account and its separate accounts in a

clearing corporation or the Federal Reserve book-entry

system. When securities are deposited with a clearing

corporation, certificates representing securities of

the same class of the same issuer may be merged and

held in bulk in the name of the nominee of the

clearing corporation with any other securities

deposited with the clearing corporation by any person,

regardless of the ownership of the securities, and

certificates representing securities of small

denominations may be merged into one or more

Oklahoma Statutes - Title 36. Insurance Page 442

certificates of larger denominations. The records of

any agent through which an insurance company holds

securities in the Federal Reserve book-entry system,

and the records of any custodian banks through which

an insurance company holds securities in a clearing

corporation, shall at all times show that the

securities are held for the insurance company and for

which accounts thereof.

b. Ownership of, and other interests in, the securities

may be transferred by bookkeeping entry on the books

of the clearing corporation or in the Federal Reserve

book-entry system without, in either case, physical

delivery of certificates representing such securities;

and

2. Notwithstanding any other provision of law, securities

eligible for deposit under the Oklahoma Insurance Code relating to

deposit of securities by an insurance company as a condition of

commencing or continuing to do an insurance business in this state

may be deposited with a clearing corporation or held in the Federal

Reserve book-entry system and used to meet the deposit requirements

under the Oklahoma Insurance Code and shall be under the control of

the Commissioner and shall not be withdrawn by the insurance company

without the approval of the Commissioner. Any insurance company

holding securities in this manner shall provide to the Commissioner

evidence issued by its custodian or an agent through which the

insurance company has deposited securities with a clearing

corporation or held in the Federal Reserve book-entry system,

respectively, in order to establish that the securities are actually

recorded in an account in the name of the custodian or agent and

evidence that the records of the custodian or agent reflect that

the securities are held subject to the order of the Commissioner.

C. 1. An insurance company may, by written agreement with a

custodian, provide for the custody of its securities with a

custodian, which securities may be held by the custodian or its

agent or in a clearing corporation or in the Federal Reserve book-

entry system. Securities so held, whether held by the custodian or

its agent or in a clearing corporation or in the Federal Reserve

book-entry system, are referred to herein as "custodied securities";

2. Any such agreement shall be in writing and shall be

authorized by a resolution of the board of directors of the

insurance company or of an authorized committee thereof. The terms

of the agreement shall comply with the following:

a. certified securities held by the custodian shall be

held either separate from the securities of the

custodian and of all of its other customers or in a

fungible bulk of securities as part of a Filing of

Securities by Issue (FOSBI) arrangement,

Oklahoma Statutes - Title 36. Insurance Page 443

b. securities held in a fungible bulk by the custodian

and securities in a clearing corporation or in the

Federal Reserve book-entry system shall be separately

identified on the custodian's official records as

being owned by the insurance company. The records

shall identify which custodied securities are held by

the custodian or by its agent and which securities are

in a clearing corporation or in the Federal Reserve

book-entry system. If the securities are in a

clearing corporation or in the Federal Reserve book-

entry system, the records shall also identify where

the securities are and if in a clearing corporation,

the name of the clearing corporation and if through an

agent, the name of the agent,

c. all custodied securities that are registered shall be

registered in the name of the company or in the name

of a nominee of the company or in the name of the

custodian or its nominee or, if in a clearing

corporation, in the name of the clearing corporation

or its nominee,

d. custodied securities shall be held subject to the

instructions of the insurance company and shall be

withdrawable upon the demand of the insurance company,

except that custodied securities used to meet the

deposit requirements set forth in the Insurance Code

shall, to the extent required by the Code, be under

the control of the Commissioner and shall not be

withdrawn by the insurance company without the

approval of the Commissioner,

e. the custodian shall be required to send or cause to be

sent to the insurance company a confirmation of all

transfers of custodied securities to or from the

account of the insurance company. In addition, the

custodian shall be required to furnish the insurance

company with reports of holdings of custodied

securities at such times and containing such

information as may be reasonably requested by the

insurance company,

f. during the course of the custodian's regular business

hours, any officer or employee of the insurance

company, any independent accountant selected by the

insurance company, and any representative of an

appropriate regulatory body shall be entitled to

examine, on the premises of the custodian, the

custodian's records relating to custodied securities,

but only upon furnishing the custodian with written

Oklahoma Statutes - Title 36. Insurance Page 444

instructions to that effect from an appropriate

officer of the insurance company,

g. the custodian and its agents shall be required to send

to the insurance company

(1) all reports which they receive from a clearing

corporation or the Federal Reserve book-entry

system on their respective systems of internal

accounting control, and

(2) any reports prepared by outside auditors on the

custodian's or its agents' internal accounting

control of custodied securities that the

insurance company may reasonably request,

h. the custodian shall maintain records sufficient to

determine and verify information relating to custodied

securities that may be reported in the insurance

company's annual statement and supporting schedules

and information required in any audit of the financial

statements of the insurance company,

i. the custodian shall provide, upon written request from

an appropriate officer of the insurance company, the

appropriate affidavits, substantially in the form

provided in subsections F, G and H of this section,

with respect to custodied securities,

j. the custodian shall be obligated to indemnify the

insurance company for any loss of custodied securities

occasioned by the negligence or dishonesty of the

custodian's officers and employees, or burglary,

robbery, holdup, theft or mysterious disappearance,

including loss by damage or destruction,

k. in the event that there is a loss of custodied

securities for which the custodian shall be obligated

to indemnify the insurance company as provided in

subparagraph j of this paragraph, the custodian shall

promptly replace the securities or the value thereof

and the value of any loss of rights or privileges

resulting from said loss of securities,

l. the agreement may provide that the custodian will not

be liable for any failure to take any action required

to be taken under the agreement in the event and to

the extent that the taking of such action is prevented

or delayed by war (whether declared or not and

including existing wars), revolution, insurrection,

riot, civil commotion, act of God, accident, fire,

explosion, stoppage of labor, strikes or other

differences with employees, laws, regulations, orders

or other acts of any governmental authority, or any

Oklahoma Statutes - Title 36. Insurance Page 445

other cause whatever beyond its reasonable control,

and

m. in the event that the custodian gains entry in a

clearing corporation or in the Federal Reserve book-

entry system through an agent, there shall be an

agreement between the custodian and the agent under

which the agent shall be subject to the same liability

for loss of custodied securities as the custodian,

provided, however, that, if the agent shall be subject

to regulation under the laws of a jurisdiction which

is different from the jurisdiction the laws of which

regulate the custodian, the Commissioner may accept a

standard of liability applicable to the agent which is

different from the standard of liability applicable to

the custodian.

D. A company may loan stocks or obligations held by it pursuant

to the provisions of this act to a broker-dealer registered under

the Securities Exchange Act of 1934 or a member bank. The loan must

be evidenced by a written agreement which provides that:

1. The loan will be fully collateralized by cash or obligations

issued or guaranteed by the United States or an agency or an

instrumentality thereof, and the collateral will be adjusted each

business day during the term of the loan to maintain the required

collateralization in the event of market value changes in the loaned

securities or collateral;

2. The loan may be terminated by the company at any time, and

the borrower will return the loaned stocks or obligations or their

equivalent within five (5) business days after termination; and

3. The company has the right to retain the collateral or use

the collateral to purchase investments equivalent to the loaned

securities if the borrower defaults under the terms of the agreement

and the borrower remains liable for any losses and expenses incurred

by the company due to default that are not covered by the

collateral.

E. An investment may consist of an individual interest in a

pool of obligations or a fractional interest in a single obligation

if the certificate of participation or interest or the confirmation

of participation or interest in the investment shall be issued in

the name of the company or the name of the custodian bank or the

nominee of either and the certificate or confirmation must, if held

by a custodian bank, be kept separate and apart from the investments

of others so that at all times the participation may be identified

as belonging solely to the company making the investment.

F. The following shall be substantially the form of custodian

affidavit for use by a custodian bank where securities entrusted to

its care have not been redeposited elsewhere:

FORM A

Oklahoma Statutes - Title 36. Insurance Page 446

CUSTODIAN AFFIDAVIT

(For use by a custodian bank where securities entrusted to its care

have not been redeposited elsewhere.)

STATE OF _____________________)

) ss

COUNTY OF ____________________)

________________________, being duly sworn deposes and says that he

or she is _______________ of ___________________, a banking

corporation organized under and pursuant to the laws of the _______

with the principal place of business at __________________________

(hereinafter called the "bank"):

That his or her duties involve supervision of activities of the bank

as custodian and records relating thereto;

That the bank is custodian for certain securities of _______________

_____________________ having a place of business at ________________

_____________________________________________ (hereinafter called

the "insurance company") pursuant to an agreement between the bank

and the insurance company;

That the schedule attached hereto is a true and complete statement

of securities (other than those caused to be deposited with The

Depository Trust Company or like entity or a Federal Reserve Bank

under the Federal Reserve book-entry procedure) which were in the

custody of the bank for the account of the insurance company as of

the close of business on _______________; that, unless otherwise

indicated on the schedule, the next maturing and all subsequent

coupons were then either attached to coupon bonds or in the process

of collection; and that, unless otherwise shown on the schedule, all

such securities were in bearer form or in registered form in the

name of the insurance company or its nominee or of the bank or its

nominee, or were in the process of being registered in such form;

That the bank as custodian has the responsibility for the

safekeeping of the securities as that responsibility is specifically

set forth in the agreement between the bank as custodian and the

insurance company; and

That, to the best of his or her knowledge and belief, unless

otherwise shown on the schedule, the securities were the property of

the insurance company and were free of all liens, claims, or

encumbrances whatsoever.

Subscribed and sworn to

before me this ______ day

of________19__

_____________________(L.S.)

Vice President (or other

authorized officer)

G. The following shall be substantially the form of custodian

affidavit for use in instances where a custodian bank maintains

Oklahoma Statutes - Title 36. Insurance Page 447

securities on deposit with The Depository Trust Company or like

entity:

FORM B

CUSTODIAN AFFIDAVIT

(For use in instances where a custodian bank maintains securities on

deposit with The Depository Trust Company or like entity.)

STATE OF _____________________)

) ss

COUNTY OF ____________________)

________________________, being duly sworn deposes and says that he

or she is _______________ of ___________________, a banking

corporation organized under and pursuant to the laws of the _______

with the principal place of business at ____________________

(hereinafter called the "bank"):

That his or her duties involve supervision of activities of the bank

as custodian and records relating thereto;

That the bank is custodian for certain securities of _______________

with a place of business at _________________ (hereinafter called

the "insurance company") pursuant to an agreement between the bank

and the insurance company;

That the bank has caused certain of such securities to be deposited

with _______________________ and that the schedule attached hereto

is a true and complete statement of the securities of the insurance

company of which the bank was custodian as of the close of business

on______________________________, and which were so deposited on

such date;

That the bank as custodian has the responsibility for the

safekeeping of the securities both in the possession of the bank or

deposited with __________ as is specifically set forth in the

agreement between the bank as custodian and the insurance company;

and

That, to the best of his or her knowledge and belief, unless

otherwise shown on the schedule, the securities were the property of

the insurance company and were free of all liens, claims, or

encumbrances whatsoever.

Subscribed and sworn to

before me this _____day

of _______19__

_____________________(L.S.)

Vice President (or other

authorized officer)

H. The following shall be substantially the form of custodian

affidavit for use where ownership is evidenced by book-entry at a

Federal Reserve Bank:

FORM C

CUSTODIAN AFFIDAVIT

Oklahoma Statutes - Title 36. Insurance Page 448

(For use where ownership is evidenced by book-entry at a Federal

Reserve Bank.)

STATE OF _____________________)

) ss

COUNTY OF ____________________)

________________________, being duly sworn deposes and says that he

is _______________ of the ________________, a banking corporation

organized under and pursuant to the laws of the _________ with the

principal place of business at ___________________ (hereinafter

called the "bank"):

That his or her duties involve supervision of activities of the bank

as custodian and records relating thereto;

That the bank is custodian for certain securities of _____________

with a place of business at ____________________ (hereinafter called

the "insurance company") pursuant to an agreement between the bank

and the insurance company;

That it has caused certain securities to be credited to its

book-entry account with the Federal Reserve Bank of ______________

under the Federal Reserve book-entry procedure; and that the

schedule attached hereto is a true and complete statement of the

securities of the insurance company of which the bank was custodian

as of the close of business on __________ which were in a "General"

book-entry account maintained in the name of the bank on the books

and records of the Federal Reserve Bank of __________________ at

that date;

That the bank has the responsibility for the safekeeping of the

securities both in the possession of the bank or in the "General"

book-entry account as is specifically set forth in the agreement

between the bank as custodian and the insurance company; and

That, to the best of his or her knowledge and belief, unless

otherwise shown on the schedule, the securities were the property

of the insurance company and were free of all liens, claims, or

encumbrances whatsoever.

Subscribed and sworn to

before me this ____ day

of __________ 19__

__________________(L.S.)

Vice President (or other

authorized officer)
Okla. Stat. tit. 36, § 36-1254 — OK Code / Title 36 / Section 36-1254
Renumbered as § 1250.5 of this title by Laws 1994, c
Status: in_force

342, § 20, eff. Sept. 1, 1994.
Okla. Stat. tit. 36, § 36-1435.4 — OK Code / Title 36 / Section 36-1435.4
License required for selling, soliciting, or
Status: in_force

negotiating - Waiver of penalty.

A. A person shall not sell, solicit, or negotiate insurance in

this state for any class or classes of insurance unless the person

is licensed for that line of authority in accordance with the

Oklahoma Producer Licensing Act.

B. A penalty for selling, soliciting, negotiating, or procuring

surplus lines insurance in this state without a surplus lines broker

license shall be waived if the Insurance Commissioner receives an

application for licensure as a surplus lines broker within thirty

(30) days from the effective date of the policy at issue.

Oklahoma Statutes - Title 36. Insurance Page 334
Okla. Stat. tit. 36, § 36-1204 — OK Code / Title 36 / Section 36-1204
Unfair methods of competition and unfair or deceptive
Status: in_force

acts or practices defined.

The following are hereby defined as unfair methods of

competition and unfair and deceptive acts or practices in the

business of insurance:

1. Misrepresentations and false advertising of policy

contracts. Making, issuing, circulating, or causing to be made,

issued or circulated, any estimate, illustration, circular or

statement misrepresenting the terms of any policy issued or to be

issued or the benefits or advantages promised thereby or the

dividends or share of the surplus to be received thereon, or making

any false or misleading statement as to the dividends or share of

surplus previously paid on similar policies, or making any

misleading representation or any misrepresentation as to the

financial condition of any insurer, or as to the legal reserve

system upon which any life insurer operates, or using any name or

title of any policy or class of policies misrepresenting the true

nature thereof, or making any misrepresentation to any policyholder

insured in any company for the purpose of inducing or tending to

induce such policyholder to lapse, forfeit, or surrender his or her

insurance;

2. False information and advertising generally. Making,

publishing, disseminating, circulating, or placing before the

public, or causing, directly or indirectly, to be made, published,

disseminated, circulated, or placed before the public, in a

newspaper, magazine, or other publication, or in the form of a

notice, circular, pamphlet, letter or poster, or over any radio or

television station, or in any other way an advertisement,

announcement or statement containing any assertion, representation

or statement with respect to the business of insurance or with

respect to any person in the conduct of his or her insurance

business which is untrue, deceptive or misleading. No insurance

company shall issue, or cause to be issued, any policy of insurance

of any type or description upon life, or property, real or personal,

whenever such policy of insurance is to be furnished or delivered to

the purchaser or bailee of any property, real or personal, as an

inducement to purchase or bail such property, real or personal, and

no other person shall advertise, offer or give free insurance,

insurance without cost or for less than the approved or customary

rate, in connection with the sale or bailment of real or personal

property, except as provided in Section 4101 of this title. No

Oklahoma Statutes - Title 36. Insurance Page 272

person that is not an insurer shall assume or use any name which

deceptively infers or suggests that it is an insurer;

3. Defamation. Making, publishing, disseminating, or

circulating, directly or indirectly, or aiding, abetting or

encouraging the making, publishing, disseminating or circulating of

any oral or written statement or any pamphlet, circular, article or

literature which is false, or maliciously critical of or derogatory

to the financial condition of an insurer, and which is calculated to

injure any person engaged in the business of insurance;

4. Boycott, coercion and intimidation. Entering into any

agreement to commit, or by any concerted action committing, any act

of boycott, coercion or intimidation resulting in or tending to

result in unreasonable restraint of, or monopoly in, the business of

insurance;

5. False financial statements. Filing with any supervisory or

other public official, or making, publishing, disseminating,

circulating or delivering to any person, or placing before the

public or causing directly or indirectly, to be made, published,

disseminated, circulated, delivered to any person or placed before

the public, any false statement of financial condition of an insurer

with intent to deceive.

Making any false entry in any book, report or statement of any

insurer with intent to deceive any agent or examiner lawfully

appointed to examine into its condition or into any of its affairs,

or any public official to whom such insurer is required by law to

report, or who has authority by law to examine into its condition or

into any of its affairs, or, with like intent, willfully omitting to

make a true entry of any material fact pertaining to the business of

such insurer in any book, report or statement of such insurer;

6. Stock operations and advisory board contracts. Issuing or

delivering or permitting agents, officers, or employees to issue or

deliver agency company stock or other capital stock, or benefit

certificates or shares in any common-law corporation, or securities

or any special or advisory board contracts or other contracts of any

kind promising returns and profits as an inducement to insurance;

7. Unfair discrimination.

(a) Making or permitting any unfair discrimination between

individuals of the same class and equal expectation of

life in the rates charged for any contract of life

insurance or of life annuity or in the dividends or

other benefits payable thereon, or in any other of the

terms and conditions of such contract.

(b) Making or permitting any unfair discrimination between

individuals of the same class and of essentially the

same hazard in the amount of premium, policy fees, or

rates charged for any policy or contract of accident

or health insurance or in the benefits payable

Oklahoma Statutes - Title 36. Insurance Page 273

thereunder, or in any of the terms or conditions of

such contract, or in any other manner whatever.

(c) As to kinds of insurance other than life and accident

and health, no person shall make or permit any unfair

discrimination in favor of particular persons, or

between insureds or subjects of insurance having

substantially like insuring, risk, and exposure

factors, or expense elements, in the terms or

conditions of any insurance contract, or in the rate

or amount of premium charged therefor. This paragraph

shall not apply as to any premium rate in effect

pursuant to Article 9 of the Oklahoma Insurance Code;

8. Rebates.

(a) Except as otherwise expressly provided by law,

knowingly permitting or offering to make or making any

contract of insurance or agreement as to such contract

other than as plainly expressed in the contract issued

thereon; or paying or allowing, or giving or offering

to pay, allow or give, directly or indirectly, as

inducement to any contract of insurance, any rebate of

premiums payable on the contract, or any special favor

or advantage in the dividends or other benefits

thereon, or any valuable consideration or inducement

whatever not specified in the contract; except in

accordance with an applicable rate filing, rating plan

or rating system filed with and approved by the

Insurance Commissioner; or giving or selling or

purchasing or offering to give, sell, or purchase as

inducement to such insurance, or in connection

therewith, any stocks, bonds or other securities of

any company, or any dividends or profits accrued

thereon, or anything of value whatsoever not specified

in the contract or receiving or accepting as

inducement to contracts of insurance, any rebate of

premium payable on the contract, or any special favor

or advantage in the dividends or other benefit to

accrue thereon, or any valuable consideration or

inducement not specified in the contract.

(b) Nothing in paragraph 7 or subparagraph (a) of this

paragraph shall be construed as including within the

definition of discrimination or rebates any of the

following practices:

(1) in the case of any contract of life insurance or

life annuity, paying bonuses to policyholders or

otherwise abating their premiums in whole or in

part out of surplus accumulated from

nonparticipating insurance, provided that any

Oklahoma Statutes - Title 36. Insurance Page 274

such bonuses or abatement of premiums shall be

fair and equitable to policyholders and for the

best interest of the company and its

policyholders,

(2) in the case of life or accident and health

insurance policies issued on the industrial debit

or weekly premium plan, making allowance to

policyholders who have continuously for a

specified period made premium payments directly

to an office of the insurer in an amount which

fairly represents the saving in collection

expense,

(3) making a readjustment of the rate of premium for

a policy based on the loss or expense experience

thereunder, at the end of the first or any

subsequent policy year of insurance thereunder,

which may be made retroactive only for such

policy year,

(4) in the case of life insurance companies, allowing

its bona fide employees to receive a commission

on the premiums paid by them on policies on their

own lives,

(5) issuing life or accident and health policies on a

salary saving or payroll deduction plan at a

reduced rate commensurate with the savings made

by the use of such plan, and

(6) paying commissions or other compensation to duly

licensed agents or brokers, or allowing or

returning to participating policyholders, members

or subscribers, dividends, savings or unabsorbed

premium deposits.

(c) As used in this section, the word “insurance” includes

suretyship and the word “policy” includes bond;

9. Coercion prohibited. Requiring as a condition precedent to

the purchase of, or the lending of money upon the security of, real

or personal property, that any insurance covering such property, or

liability arising from the ownership, maintenance or use thereof, be

procured by or on behalf of the vendee or by the borrower in

connection with such purchase or loan through any particular person

or agent or in any particular insurer, or requiring the payment of a

reasonable fee as a condition precedent to the replacement of

insurance coverage on mortgaged property at the anniversary date of

the policy; provided, however, that this provision shall not prevent

the exercise by any such vendor or lender of the right to approve or

disapprove any insurer selected to underwrite the insurance, but any

disapproval of any insurer shall be on reasonable grounds;

Oklahoma Statutes - Title 36. Insurance Page 275

10. Inducements. No insurer, agent, broker, solicitor, or

other person shall, as an inducement to insurance or in connection

with any insurance transaction, provide in any policy for or offer,

sell, buy, or offer or promise to buy, sell, give, promise, or allow

to the insured or prospective insured or to any other person in his

or her behalf in any manner whatsoever:

(a) any employment,

(b) any shares of stock or other securities issued or at

any time to be issued or any interest therein or

rights thereto,

(c) any advisory board contract, or any similar contract,

agreement or understanding, offering, providing for,

or promising any special profits,

(d) any prizes, goods, wares, merchandise, or tangible

property of an aggregate value in excess of One

Hundred Dollars ($100.00), or

(e) any special favor, advantage or other benefit in the

payment, method of payment or credit for payment of

the premium through the use of credit cards, credit

card facilities, credit card lists, or wholesale or

retail credit accounts of another person. The

provisions of this paragraph shall not apply to

individual policies insuring against loss resulting

from bodily injury or death by accident as defined by

Article 44 of the Oklahoma Insurance Code;

11. Premature disposal of premium notes prohibited. No insurer

or agent thereof shall hypothecate, sell, or dispose of a promissory

note received in payment of any part of a premium on a policy of

insurance applied for prior to the delivery of the policy;

12. Fraudulent statement in application. Any insurance agent,

examining physician, or other person who knowingly or willfully

makes a false or fraudulent statement or representation in or

relative to an application for insurance, or who makes any such

statement to obtain a fee, commission, money, or benefit, shall be

guilty of a misdemeanor;

13. Deceptive use of financial institution’s name in

notification or solicitation. Verbally or by any other means

notifying or soliciting any person in a manner that:

(a) mentions the name of an unrelated and unaffiliated

financial institution,

(b) mentions an insurance product or the possible lack of

insurance coverage,

(c) does not mention the actual or trade name of the

insurance agency or company on whose behalf the

notification or solicitation is provided, and

(d) thereby creates an impression or implication,

including by omission, that the financial institution

Oklahoma Statutes - Title 36. Insurance Page 276

or a financial-institution-authorized entity is or may

be the one making the notification or solicitation.

Nothing in this paragraph shall be interpreted to prohibit the

reference to or use of the name of a financial institution made

pursuant to a contractual agreement between the insurer and the

financial institution; and

14. No insurer or prepaid vision plan organization as defined

in Section 1 of this act which offers multiple prepaid vision plans

may require as a condition of participation in any one prepaid

vision plan that a vision care provider participate in any of the

other prepaid vision plans offered by the insurer or prepaid vision

plan organization.
Okla. Stat. tit. 36, § 36-2102 — OK Code / Title 36 / Section 36-2102
"Stock" insurer defined
Status: in_force

A "stock" insurer is an incorporated insurer with capital

divided into shares and owned by its shareholders.

Oklahoma Statutes - Title 36. Insurance Page 624
Okla. Stat. tit. 36, § 36-110 — OK Code / Title 36 / Section 36-110
Application as to particular types of insurers
Status: in_force

No provision of the Oklahoma Insurance Code, Section 101 et seq.

of this title, shall apply to:

1. Nonprofit hospital service and medical indemnity

corporations, except as stated in Sections 601 et seq. and 2601 et

seq. of this title;

2. Fraternal benefit societies, except as stated in Section

2701.1 et seq. of this title;

3. Farmers' mutual fire insurance associations, except as

stated in Section 2801 et seq. of this title;

4. Mutual benefit associations, except as stated in Section

2401 et seq. of this title;

5. Domestic burial associations;

6. Any domestic association organized subject to the

supervision or by the authority of any incorporated Grange Order of

Patrons of Husbandry, when the association is formed exclusively for

the mutual benefit of the members of such order. Effective January

1, 1982, The Oklahoma State Union of the Farmers' Educational and

Cooperative Union of America shall comply with all provisions of the

Oklahoma Insurance Code;

7. Trust companies organized pursuant to the provisions of

Title 6 of the Oklahoma Statutes except that the title insurance and

Oklahoma Statutes - Title 36. Insurance Page 44

surety insurance business of such trust companies shall be subject

to the Oklahoma Insurance Code;

8. Soliciting agents of mutual insurance corporations or

associations, operating only in this state, that issue no stock or

other form of security, do not operate for profit, and have none of

their funds inure to the benefit of individuals except in the form

of less expensive insurance and necessary expenses of operation, if

provisions are made in the bylaws of the insurer for the election of

any soliciting agents by a majority of the policyholders in the area

where the soliciting agent solicits insurance;

9. The Mutual Aid Association of the Church of the Brethren or

the Mutual Aid Association of the Mennonite and Brethren in Christ;

10. Incorporated or unincorporated banking associations having

been in existence for over fifteen (15) years and consisting of more

than seventy-five (75) member banks within this state for issuance

of blanket fidelity bonds for banks within this state for each

bank's own use, or any nonprofit trust sponsored by such

associations' member banks providing employee benefits such as life,

health, accident, disability, pension and retirement benefits for

banks, bank holding companies and subsidiaries thereof, the

associations' employees and associate members;

11. A religious organization, or members of the organization,

if the organization:

a. is a nonprofit religious organization,

b. is limited to participants who are members of the same

religion,

c. acts as an organizational clearinghouse for

information between participants who have financial,

physical or medical needs and participants with the

present ability to pay for the benefit of those

participants with present financial or medical needs.

Nothing in this subparagraph shall prevent the

organization from establishing qualifications of

participation relating to the health of the

prospective participant, nor shall it prevent the

participants from limiting the financial or medical

needs that may be eligible for payment among the

participants,

d. provides for the financial or medical needs of a

participant through payments directly from one

participant to another, and

e. suggests amounts that participants may voluntarily

give with no assumption of risk or promise to pay

either among the participants or between the

participants and the organization. Nothing in this

subparagraph shall prevent the organization from

cancelling the membership of a participant if the

Oklahoma Statutes - Title 36. Insurance Page 45

participant indicates unwillingness to participate by

failing to make a payment to another participant for a

period in excess of sixty (60) days; or

12. Charitable organizations that:

a. are described in Section 501(c)(3) of the Internal

Revenue Code and Section 170(c) of the Internal

Revenue Code,

b. issue qualified charitable gift annuity contracts,

c. have a minimum of One Hundred Thousand Dollars

($100,000.00) in unrestricted assets that are

exclusive of the assets comprising its qualified

charitable gift annuities, and

d. have been in continuous operation for at least three

(3) years or are successors or affiliates of a

charitable organization that has been in continuous

operation for at least three (3) years,

except as stated in the Oklahoma Charitable Gift Annuity Act.
Okla. Stat. tit. 36, § 36-1509 — OK Code / Title 36 / Section 36-1509
Increase of inadequate reserves - Present value discounting - Annual actuarial opinions -
Status: in_force

Oklahoma Statutes - Title 36. Insurance Page 12discounting - Annual actuarial opinions - Investment limitations -

Unusual dividend or benefit payments.

A. If the Insurance Commissioner determines in writing that an

insurer's unearned premium reserve, however computed, is inadequate,

the Commissioner may require the insurer to compute the reserve or

any part thereof according to any other method or methods as are

prescribed in this article.

B. If the loss experience of an insurer shows that its loss

reserves, however estimated, are inadequate, the Commissioner, in

writing, shall require the insurer to maintain loss reserves in an

increased amount as is needed to make them adequate.

C. 1. Insurers shall not use present value discounting for

computing reserves for property and casualty insurance, except for

workers' compensation carriers and physicians' and hospitals'

professional liability insurance written on an occurrence basis.

Workers' compensation carriers may use present value discounting at

a rate of four percent (4%) for disability and death claims.

Property and casualty insurers which elect to use present value

discounting for computing reserves on physicians' and hospitals'

professional liability insurance shall file initially, and

thereafter annually, an actuarial opinion certifying to the adequacy

of such reserves which shall include an analysis of the propriety of

loss payout patterns, interest rate assumptions used in developing

the discount and the adequacy of the insurer's rates. Additionally,

the actuary shall consider the quality and liquidity of the

insurer's assets and the nature and extent of the insurer's

reinsurance program. In no event shall the interest rate used to

compute the discounted reserves exceed the insurer's average yield

on invested assets for the year, less one percent (1%).

2. Annual actuarial opinions required pursuant to this

subsection shall be filed by the insurer on or before the first day

of April. All actuarial opinions shall be from an independent

actuary with membership in the American Academy of Actuaries or The

Casualty Actuarial Society.

3. Except for workers' compensation insurance carriers,

insurers discounting reserves pursuant to this subsection shall

invest and maintain their funds only in cash; securities described

in the following sections of this Code:

Oklahoma Statutes - Title 36. Insurance Page 389

a. Section 1607 (securities of or guaranteed by the

United States),

b. Section 1608 (state and Canadian public obligations),

c. Section 1609 (county, municipal and district

obligations),

d. Section 1610 (public improvement bonds),

e. Section 1611 (obligations payable from public utility

revenues) limited to issues which, at time of

purchase, are rated A or better by Standard and Poor's

Bond Guide or Moody's Bond Record,

f. Section 1614 (corporate obligations) limited to issues

which, at time of purchase, are rated A or better by

Standard and Poor's Bond Guide or Moody's Bond Record,

and

g. Section 1620 (deposits, banks, savings and loans);

and any other investment specifically approved by the Commissioner.

4. This subsection applies to reserves established in

connection with incidents of loss occurring on or after January 1,

1989. The investment limitations prescribed by this subsection

shall be applicable on or after January 1, 1989.

D. During any period of reserve strengthening mandated by the

Commissioner pursuant to the provisions of this section, no insurer

shall pay dividends or other benefits which would not be normal

payments under the terms of a policy to any stockholder or

policyholder of such insurer and such insurer shall be subject to

any additional reasonable restrictions as the Commissioner shall

deem prudent.

E. Insurers shall report, on a form prescribed by the

Commissioner and filed with their annual statement, all funds

collected through policy fees or assessments which were collected in

response to a written request to increase inadequate reserves from

the Commissioner made pursuant to the provisions of this section.

F. 1. Insurers domiciled in this state that are issuing

policies of medical professional liability insurance to physicians,

allied health care professionals and health care institutions, as

defined by Section 2202 of this title, on July 1, 2004, are granted

a moratorium on the applicability of any provisions of the laws of

this state that require the maintenance of adequate reserves. The

moratorium shall be in effect until December 31, 2008.

2. Any insurer eligible to utilize the moratorium provided by

this section that elects to utilize the moratorium shall notify the

Commissioner in writing of the election prior to the application of

the moratorium to the insurer.

3. Any policy issued by an insurer utilizing the moratorium

provided by this section shall, during the moratorium period,

contain the following notice in ten-point type on the front page and

the declaration page:

Oklahoma Statutes - Title 36. Insurance Page 390

NOTICE

The insurer is not subject to the insurance laws and regulations

related to maintenance of reserves and surplus.
Okla. Stat. tit. 36, § 36-6060.2 — OK Code / Title 36 / Section 36-6060.2
Treatment of diabetes - Equipment, supplies and
Status: in_force

services.

A. 1. Every health benefit plan issued or renewed on or after

November 1, 1996, shall, subject to the terms of the policy contract

or agreement, include coverage for the following equipment, supplies

and related services for the treatment of Type I, Type II, and

gestational diabetes, when medically necessary and when recommended

or prescribed by a physician or other licensed health care provider

legally authorized to prescribe under the laws of this state:

a. blood glucose monitors,

b. blood glucose monitors to the legally blind,

c. test strips for glucose monitors,

d. visual reading and urine testing strips,

Oklahoma Statutes - Title 36. Insurance Page 1085

e. insulin,

f. injection aids,

g. cartridges for the legally blind,

h. syringes,

i. insulin pumps and appurtenances thereto,

j. insulin infusion devices,

k. oral agents for controlling blood sugar, and

l. podiatric appliances for prevention of complications

associated with diabetes.

2. The State Board of Health shall develop and annually update,

by rule, a list of additional diabetes equipment, related supplies

and health care provider services that are medically necessary for

the treatment of diabetes, for which coverage shall also be

included, subject to the terms of the policy, contract, or

agreement, if the equipment and supplies have been approved by the

federal Food and Drug Administration (FDA). Additional FDA-approved

diabetes equipment and related supplies, and health care provider

services shall be determined in consultation with a national

diabetes association affiliated with this state, and at least three

(3) medical directors of health benefit plans, to be selected by the

State Department of Health.

3. All policies specified in this section shall also include

coverage for:

a. podiatric health care provider services as are deemed

medically necessary to prevent complications from

diabetes, and

b. diabetes self-management training. As used in this

subparagraph, "diabetes self-management training"

means instruction in an inpatient or outpatient

setting which enables diabetic patients to understand

the diabetic management process and daily management

of diabetic therapy as a method of avoiding frequent

hospitalizations and complications. Diabetes self-

management training shall comply with standards

developed by the State Board of Health in consultation

with a national diabetes association affiliated with

this state and at least three medical directors of

health benefit plans selected by the State Department

of Health. Coverage for diabetes self-management

training, including medical nutrition therapy relating

to diet, caloric intake, and diabetes management, but

excluding programs the only purpose of which are

weight reduction, shall be limited to the following:

(1) visits medically necessary upon the diagnosis of

diabetes,

(2) a physician diagnosis which represents a

significant change in the symptoms or condition

Oklahoma Statutes - Title 36. Insurance Page 1086

of the patient making medically necessary changes

in the self-management of the patient, and

(3) visits when reeducation or refresher training is

medically necessary;

provided, however, payment for the coverage required for diabetes

self-management training pursuant to the provisions of this section

shall be required only upon certification by the health care

provider providing the training that the patient has successfully

completed diabetes self-management training.

4. Diabetes self-management training shall be supervised by a

licensed physician or other licensed health care provider legally

authorized to prescribe under the laws of this state. Diabetes

self-management training may be provided by the physician or other

appropriately registered, certified, or licensed health care

professional as part of an office visit for diabetes diagnosis or

treatment. Training provided by appropriately registered,

certified, or licensed health care professionals may be provided in

group settings where practicable.

5. Coverage for diabetes self-management training and training

related to medical nutrition therapy, when provided by a registered,

certified, or licensed health care professional, shall also include

home visits when medically necessary and shall include instruction

in medical nutrition therapy only by a licensed registered dietician

or licensed certified nutritionist when authorized by the

supervising physician of the patient when medically necessary.

6. Coverage may be subject to the same annual deductibles or

coinsurance as may be deemed appropriate and as are consistent with

those established for other covered benefits within a given policy.

7. Any health benefit plan, as defined pursuant to Section

6060.4 of this title, that provides coverage for insulin pursuant to

this section shall cap the total amount that a covered person is

required to pay for insulin at an amount not to exceed Thirty

Dollars ($30.00) per thirty-day supply or Ninety Dollars ($90.00)

per ninety-day supply of insulin for each covered insulin

prescription, regardless of the amount or type of insulin needed to

fill the prescription or prescriptions of the covered person.

a. Nothing in this paragraph shall prevent a health

benefit plan from reducing the cost-sharing of a

covered person to an amount less than Thirty Dollars

($30.00) per thirty-day supply or Ninety Dollars

($90.00) per ninety-day supply.

b. The Insurance Commissioner shall ensure all health

benefit plans comply with the requirements of this

paragraph.

c. The Commissioner may promulgate rules as necessary to

implement and administer the requirements of this

paragraph and to align with federal requirements.

Oklahoma Statutes - Title 36. Insurance Page 1087

B. 1. Health benefit plans shall not reduce or eliminate

coverage due to the requirements of this section.

2. Enforcement of the provisions of this act shall be performed

by the Insurance Department and the State Department of Health.

C. 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, § 36-1681 — OK Code / Title 36 / Section 36-1681
Short title - Insurance Business Transfer Act
Status: in_force

This act shall be known and may be cited as the "Insurance

Business Transfer Act".
Okla. Stat. tit. 36, § 36-3634.11 — OK Code / Title 36 / Section 36-3634.11
Coverage of vision care or medical diagnosis and
Status: in_force

treatment services – Referral to optometrists – Equal compensation.

A. Any health benefit plan which offers services for vision

care or medical diagnosis and treatment for the eye shall allow

optometrists to be providers of those services.

B. With respect to optometric services, any health benefit plan

which uses a gatekeeper or equivalent for referrals for services for

vision care or for medical diagnosis and treatment of the eye shall

require such covered services be provided on a referral basis within

the medical group or network at the request of an enrollee who has a

condition requiring vision care or medical diagnosis and treatment

of the eye if:

1. A referral is necessitated in the judgment of the primary

care physician; and

Oklahoma Statutes - Title 36. Insurance Page 806

2. Treatment for the condition falls within the licensed scope

of practice of an optometrist.

C. Each health benefit plan shall have a defined set of

standards and procedures for selecting providers, including

specialists, to serve enrollees. The standards and procedures shall

be drafted in such a manner that they are applicable to all

categories of providers and shall be utilized by the health benefit

plan in a manner that is without bias for or discrimination against

a particular category or categories of providers.

D. No health benefit plan shall require a provider to have

hospital privileges if hospital privileges are not usual and

customary for the services the provider provides.

E. Health benefit plans shall provide that optometrists 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 as provided in the Health Care Freedom of

Choice Act, if the services are within the scope of practice of

optometry.

F. Nothing in this section shall be construed to:

1. Prohibit a health benefit plan which offers services for

vision care or medical diagnosis and treatment for the eye from

determining the adequacy of the size of its network;

2. Prohibit an optometrist from agreeing to a fee schedule;

3. Limit, expand, or otherwise affect the scope of practice of

optometry; or

4. Alter, repeal, modify or affect the laws of this state

except where such laws are in conflict or are inconsistent with the

express provisions of this section.

G. Existing health benefit plans shall comply with the

requirements of this section upon issuance or renewal on or after

the effective date of this act.

H. As used in this section, "health benefit plan" means

individual or group hospital or medical insurance coverage, a not-

for-profit hospital or medical service or indemnity plan, a prepaid

health plan, a health maintenance organization plan, a preferred

provider organization plan, the State and Education Employees Group

Health Insurance Plan, any program funded under Title XIX of the

Social Security Act or such other publicly funded program, and

coverage provided by a Multiple Employer Welfare Arrangement (MEWA)

or employee self-insured plan except as exempt under federal ERISA

provisions.
Okla. Stat. tit. 36, § 36-1505 — OK Code / Title 36 / Section 36-1505
Liabilities - Mandatory securities valuation reserves
Status: in_force

Oklahoma Statutes - Title 36. Insurance Page 386

A. In any determination of the financial condition of an

insurer, capital stock and liabilities to be charged against its

assets shall include:

1. The amount of its capital stock outstanding, if any.

2. The amount, estimated consistent with the provisions of this

Code, necessary to pay all of its unpaid losses and claims incurred

on or prior to the date of statement, whether reported or

unreported, together with the expenses of adjustment or settlement

thereof.

3. With reference to life and disability insurance and annuity

contracts:

(a) The amount of reserves on life insurance policies and

annuity contracts in force, valued according to the tables of

mortality, rates of interest, and methods adopted pursuant to this

Code which are applicable thereto,

(b) Reserves for disability benefits, for both active and

disabled lives,

(c) Reserves for accidental death benefits, and

(d) Any additional reserves which may be required by the

Insurance Commissioner consistent with practice formulated or

approved by the National Association of Insurance Commissioners, on

account of such insurance.

4. With reference to insurance other than specified in

subsection 3 this section, and other than title insurance, the

amount of reserves equal to the unearned portions of the gross

premiums charged on policies in force, computed in accordance with

this article.

5. Taxes, expenses and other obligations due or accrued at the

date of the statement.

B. All life insurance companies and fraternal benefit societies

shall establish and maintain mandatory securities valuation reserves

in accordance with the guidelines established by the National

Association of Insurance Commissioners. Life insurance companies

without mandatory securities valuation reserves as of December 31,

1989, shall begin accruing twenty percent (20%) of the mandatory

securities value reserves per year and have reserves in accordance

with the required guidelines within five (5) years.
Okla. Stat. tit. 36, § 36-5402 — OK Code / Title 36 / Section 36-5402
Reimbursement to 340B entities — Restrictions
Status: in_force

A. With respect to reimbursement to a 340B entity for 340B

drugs, a health insurance issuer, pharmacy benefits manager, other

third-party payor, or its agent shall not:

1. Reimburse a 340B entity for 340B drugs at a rate lower than

that paid for the same drug to entities that are not 340B entities

or lower reimbursement for a claim on the basis that the claim is

for a 340B drug;

2. Impose any terms or conditions on any 340B entity with

respect to any of the following that differ from such terms or

conditions applied to non-340B entities on the basis that the entity

participates in the federal 340B drug discount program set forth in

Section 256b of Title 42 of the United States Code or that a drug is

a 340B drug including, without limitation, any of the following:

a. fees, charges, clawbacks, or other adjustments or

assessments. For purposes of this subsection, the

term "other adjustments" includes placing any

additional requirements, restrictions, or unnecessary

burdens upon the 340B entity that result in

administrative costs or fees to the 340B entity that

are not placed upon other entities that do not

participate in the 340B drug discount program,

including affiliate pharmacies of the health insurance

issuer, pharmacy benefits manager, or other third-

party payor,

b. dispensing fees that are less than the dispensing fees

for non-340B entities,

Oklahoma Statutes - Title 36. Insurance Page 1055

c. restrictions or requirements regarding participation

in standard or preferred pharmacy networks,

d. requirements relating to the frequency or scope of

audits of inventory management systems,

e. requirements that a claim for a drug include any

identification, billing modifier, attestation, or

other indication that a drug is a 340B drug in order

to be processed or resubmitted unless it is required

by the Centers for Medicare and Medicaid Services or

the Oklahoma Health Care Authority for the

administration of the Oklahoma Medicaid program, or

f. any other restrictions, conditions, practices, or

policies that are not imposed on non-340B entities;

3. Require a 340B entity to reverse, resubmit, or clarify a

claim after the initial adjudication unless these actions are in the

normal course of pharmacy business and not related to 340B drug

pricing;

4. Discriminate against a 340B entity in a manner that prevents

or interferes with any patient's choice to receive such drugs from

the 340B entity, including the administration of such drugs. For

purposes of this subsection, it is considered a discriminatory

practice that prevents or interferes with a patient's choice to

receive drugs at a 340B entity if a health insurance issuer,

pharmacy benefits manager, or other third-party payor places any

additional requirements, restrictions, or unnecessary burdens upon

the 340B entity that results in administrative costs or fees to the

340B entity, including but not limited to, requiring a claim for a

drug to include any identification, billing modifier, attestation,

or other indication that a drug is a 340B drug in order to be

processed or resubmitted unless it is required by the Centers for

Medicare and Medicaid Services or the Oklahoma Health Care Authority

in administration of the Oklahoma Medicaid program;

5. Include any other provision in a contract between a health

insurance issuer, pharmacy benefits manager, or other third-party

payor and a 340B entity that discriminates against the 340B entity

or prevents or interferes with an individual's choice to receive a

prescription drug from a 340B entity, including the administration

of the drug, in person or via direct delivery, mail, or other form

of shipment, or creation of a restriction or additional charge on a

patient who chooses to receive drugs from a 340B entity;

6. Require or compel the submission of ingredient costs or

pricing data pertaining to 340B drugs to any health insurance

issuer, pharmacy benefits manager, or other third-party payor; or

7. Exclude any 340B entity from the health insurance issuer,

pharmacy benefits manager, or other third-party payor network on the

basis that the 340B entity dispenses drugs subject to an agreement

under Section 256b of Title 42 of the United States Code, or

Oklahoma Statutes - Title 36. Insurance Page 1056

refusing to contract with a 340B entity for reasons other than those

that apply equally to non-340B entities.

B. Nothing in this section applies to the Oklahoma Medicaid

program as payor when Medicaid provides reimbursement for covered

outpatient drugs as defined in Section 1396r-8(k) of Title 42 of the

United States Code.
Okla. Stat. tit. 36, § 36-322 — OK Code / Title 36 / Section 36-322
Violations — Penalties
Status: in_force

The Insurance Commissioner may, if the Commissioner finds that

any person or organization has violated the provisions of any

statute, rule, bulletin, or order for which the Commissioner has

jurisdiction, impose a penalty of not more than Five Thousand

Dollars ($5,000.00) for each such violation. Such penalties may be

in addition to any other penalty provided by law.

No penalty shall be imposed except upon a written order of the

Commissioner or the appointed independent hearing examiner, stating

the findings of the Commissioner or the appointed independent

hearing examiner after notice and opportunity for a hearing in

accordance with Article II of the Administrative Procedures Act.
Okla. Stat. tit. 36, § 36-6935 — OK Code / Title 36 / Section 36-6935
Services provided to out-of-state enrollees
Status: in_force

Basic health care services as herein provided may be furnished

to enrollees of health maintenance organizations outside this state

only in accordance with the laws of the state or of the United

States that govern the provision of such services in the state or

place concerned; provided, that an enrollee may be reimbursed

directly for emergency health care expenses incurred by the enrollee

while temporarily outside the state, when such expenses would have

been provided under the enrollee's program had the enrollee been

within the state. Such reimbursement made by a health maintenance

organization shall not be construed as an indemnity and no health

maintenance organization shall be an insurer or make any contract of

insurance of any kind whatsoever.
Okla. Stat. tit. 36, § 36-3614.2 — OK Code / Title 36 / Section 36-3614.2
Genetic nondiscrimination in employment
Status: in_force

A. This section shall be known and may be cited as the "Genetic

Nondiscrimination in Employment Act".

B. For purposes of the Genetic Nondiscrimination in Employment

Act:

1. "DNA" means deoxyribonucleic acid;

2. "Employer" means employer as such term is defined in Section

3(d) of the Fair Labor Standards Act of 1938, 29 U.S.C., Section

203(d);

3. "Genetic information" means information derived from the

results of a genetic test. Genetic information shall not include

family history, the results of a routine physical examination or

test, the results of a chemical, blood or urine analysis, the

results of a test to determine drug use, the results of a test for

the presence of the human immunodeficiency virus, or the results of

any other test commonly accepted in clinical practice at the time it

is ordered by the insurer;

4. "Genetic test" means a laboratory test of the DNA, RNA, or

chromosomes of an individual for the purpose of identifying the

presence or absence of inherited alterations in the DNA, RNA, or

chromosomes that cause a predisposition for a clinically recognized

disease or disorder. "Genetic test" shall not include:

a. a routine physical examination or a routine test

performed as a part of a physical examination,

b. a chemical, blood, or urine analysis,

c. a test to determine drug use,

d. a test for the presence of the human immunodeficiency

virus, or

e. any other test commonly accepted in clinical practice

at the time it is ordered by the insurer; and

5. "RNA" means ribonucleic acid.

C. For purposes of distinguishing between or discriminating

against or restricting any right or benefit otherwise due or

available to an employee or prospective employee, other than in

connection with the determination of insurance coverage or benefits,

no employer shall:

1. Seek to obtain, or use a genetic test or genetic information

of the employee or the prospective employee; or

2. Require a genetic test of or require genetic information

from the employee or prospective employee.

D. Any employer violating the provisions of this section, upon

conviction thereof, shall be guilty of a misdemeanor and may be

Oklahoma Statutes - Title 36. Insurance Page 788

punished by a fine of not more than Twenty-five Thousand Dollars

($25,000.00) or by imprisonment in the county jail for not more than

one (1) year, or by both fine and imprisonment.

E. Notwithstanding any language in this section to the

contrary, this section shall not apply to an insurer or to an

individual or third-party dealing with an insurer in the ordinary

course of underwriting, conducting, or administering the business of

life, disability income, or long-term care insurance, including, but

not limited to, actions taken by an insurer or to an individual or

third-party dealing with an insurer in connection with life,

disability income, or long-term care insurance made available by an

employer to its employees.