Okla. Stat. tit. 36, § 36-5122 — OK Code / Title 36 / Section 36-5122
Requirements for allowance of credit
Status: in_force

A. Credit for reinsurance shall be allowed a domestic ceding

insurer as either an asset or a reduction from liability on account

of reinsurance ceded only when the reinsurer meets the requirements

of subsection B, C, D, E, F, G or H of this section; provided,

further, that the Commissioner may adopt by regulation pursuant to

subsection B of Section 5124 of this title, specific additional

requirements relating to or setting forth the valuation of assets or

reserve credits, the amount and forms of security supporting

reinsurance arrangements described in subsection B of Section 5124

of this title and the circumstances pursuant to which credit will be

reduced or eliminated. Credit shall be allowed under subsection B,

C or D of this section only as respects cessions of those kinds or

classes of business in which the assuming insurer is licensed or

otherwise permitted to write or assume in its state of domicile or,

in the case of a United States branch of an alien assuming insurer,

in the state through which it is entered and licensed to transact

insurance or reinsurance. Credit shall be allowed under subsection

D or E of this section only if the applicable requirements of

subsection I have been satisfied.

B. Credit shall be allowed when the reinsurance is ceded to an

assuming insurer that is licensed to transact insurance or

reinsurance in this state.

C. Credit shall be allowed when the reinsurance is ceded to an

assuming insurer that is accredited by the Insurance Commissioner as

a reinsurer in this state. An accredited reinsurer is one that:

1. Files with the Insurance Commissioner evidence of its

submission to this state's jurisdiction;

2. Submits to this state's authority to examine its books and

records;

3. Is licensed to transact insurance or reinsurance in at least

one state, or in the case of a United States branch of an alien

assuming insurer is entered through and licensed to transact

insurance or reinsurance in at least one state;

Oklahoma Statutes - Title 36. Insurance Page 1036

4. Files annually with the Insurance Commissioner a copy of its

annual statement filed with the insurance department of its state of

domicile and a copy of its most recent audited financial statement;

and

5. Demonstrates to the satisfaction of the Insurance

Commissioner that it has adequate financial capacity to meet its

reinsurance obligations and is otherwise qualified to assume

reinsurance from domestic insurers. An assuming insurer is deemed

to meet this requirement as of the time of its application if it

maintains a surplus as regards policyholders in an amount not less

than Twenty Million Dollars ($20,000,000.00) and its accreditation

has not been denied by the Insurance Commissioner within ninety (90)

days after submission of its application.

D. Credit shall be allowed when the reinsurance is ceded to an

assuming insurer that is domiciled in, or in the case of a United

States branch of an alien assuming insurer is entered through, a

state that employs standards regarding credit for reinsurance

substantially similar to those applicable under this statute and the

assuming insurer or United States branch of an alien assuming

insurer:

1. Maintains a surplus as regards policyholders in an amount

not less than Twenty Million Dollars ($20,000,000.00); and

2. Submits to the authority of this state to examine its books

and records.

The requirement of paragraph 1 of this subsection does not apply

to reinsurance ceded and assumed pursuant to pooling arrangements

among insurers in the same holding company system.

E. 1. Credit shall be allowed when the reinsurance is ceded to

an assuming insurer that maintains a trust fund in a qualified

United States financial institution, as defined in Section 5123.1 of

this title, for the payment of the valid claims of its United States

ceding insurers, their assigns and successors in interest. To

enable the Insurance Commissioner to determine the sufficiency of

the trust fund, the assuming insurer shall report annually to the

Insurance Commissioner information substantially the same as that

required to be reported on the National Association of Insurance

Commissioners Annual Statement form by licensed insurers. The

assuming insurer shall submit to examination of its books and

records by the Commissioner and bear the expense of examination.

2. Credit for reinsurance shall not be granted under this

subsection unless the form of the trust and any amendments to the

trust have been approved by:

a. the Commissioner of the state where the trust is

domiciled, or

b. the Commissioner of another state who, pursuant to the

terms of the trust instrument, has accepted principal

regulatory oversight of the trust.

Oklahoma Statutes - Title 36. Insurance Page 1037

3. The form of the trust and any trust amendments also shall be

filed with the Insurance Commissioner of every state in which the

ceding insurer beneficiaries of the trust are domiciled. The trust

instrument shall provide that contested claims shall be valid and

enforceable upon the final order of any court of competent

jurisdiction in the United States. The trust shall vest legal title

to its assets in its trustees for the benefit of the assuming

insurer's United States ceding insurers, their assigns and

successors in interest. The trust and the assuming insurer shall be

subject to examination as determined by the Insurance Commissioner.

4. The trust shall remain in effect for as long as the assuming

insurer has outstanding obligations due under the reinsurance

agreements subject to the trust.

5. No later than February 28 of each year the trustee of the

trust shall report to the Insurance Commissioner in writing the

balance of the trust and listing the trust's investments at the

preceding year end and shall certify the date of termination of the

trust, if so planned, or certify that the trust shall not expire

prior to the following December 31.

6. The following requirements apply to the following categories

of assuming insurer:

a. the trust fund for a single assuming insurer shall

consist of funds in trust in an amount not less than

the assuming insurer's liabilities attributable to

reinsurance ceded by United States ceding insurers,

and, in addition, the assuming insurer shall maintain

a trusteed surplus of not less than Twenty Million

Dollars ($20,000,000.00), except as provided in

subparagraph b of this paragraph,

b. at any time after the assuming insurer has permanently

discontinued underwriting new business secured by the

trust for at least three (3) full years, the

Commissioner with principal regulatory oversight of

the trust may authorize a reduction in the required

trusteed surplus, but only after a finding, based on

an assessment of the risk, that the new required

surplus level is adequate for the protection of United

States ceding insurers, policyholders and claimants in

light of reasonably foreseeable adverse loss

development. The risk assessment may involve an

actuarial review including an independent analysis of

reserves and cash flows, and shall consider all

material risk factors including when applicable the

lines of business involved, the stability of the

incurred loss estimates and the effect of the surplus

requirements on the assuming insurer's liquidity or

solvency. The minimum required trusteed surplus shall

Oklahoma Statutes - Title 36. Insurance Page 1038

not be reduced to an amount less than thirty percent

(30%) of the assuming insurer's liabilities

attributable to reinsurance ceded by United States

ceding insurers covered by the trust,

c. (1) in the case of a group including incorporated and

individual unincorporated underwriters:

(a) for reinsurance ceded under reinsurance

agreements with an inception, amendment, or

renewal date on or after January 1, 1993,

the trust shall consist of a trusteed

account in an amount not less than the

respective underwriters' several liabilities

attributable to business ceded by United

States-domiciled ceding insurers to any

underwriter of the group,

(b) for reinsurance ceded under reinsurance

agreements with an inception date on or

before December 31, 1992, and not amended or

renewed after that date, notwithstanding the

other provisions of the Credit for

Reinsurance Act, the trust shall consist of

a trusteed account in an amount not less

than the respective underwriters' several

insurance and reinsurance liabilities

attributable to business written in the

United States, and

(c) in addition to these trusts, the group shall

maintain in trust a trusteed surplus of

which One Hundred Million Dollars

($100,000,000.00) shall be held jointly for

the benefit of the United States-domiciled

ceding insurers of any member of the group

for all years of account,

(2) the incorporated members of the group shall not

be engaged in any business other than

underwriting as a member of the group and shall

be subject to the same level of regulation and

solvency control by the group's domiciliary

regulator as are the unincorporated members, and

(3) within ninety (90) days after its financial

statements are due to be filed with the group's

domiciliary regulator, the group shall provide to

the Commissioner an annual certification by the

group's domiciliary regulator of the solvency of

each underwriter member; or if a certification is

unavailable, financial statements, prepared by

Oklahoma Statutes - Title 36. Insurance Page 1039

independent public accountants, of each

underwriter member of the group, and

d. in the case of a group of incorporated underwriters

under common administration, the group shall:

(1) have continuously transacted an insurance

business outside the United States for at least

three (3) years immediately prior to making

application for accreditation,

(2) maintain aggregate policyholders' surplus of at

least Ten Billion Dollars ($10,000,000,000.00),

(3) maintain a trust fund in an amount not less than

the group's several liabilities attributable to

business ceded by United States-domiciled ceding

insurers to any member of the group pursuant to

reinsurance contracts issued in the name of the

group,

(4) in addition, maintain a joint trusteed surplus of

which One Hundred Million Dollars

($100,000,000.00) shall be held jointly for the

benefit of United States-domiciled ceding

insurers of any member of the group as additional

security for these liabilities, and

(5) within ninety (90) days after its financial

statements are due to be filed with the group's

domiciliary regulator, make available to the

Commissioner an annual certification of each

underwriter member's solvency by the member's

domiciliary regulator and financial statements of

each underwriter member of the group prepared by

its independent public accountant.

F. Credit shall be allowed when the reinsurance is ceded to an

assuming insurer that has been certified by the Commissioner as a

reinsurer in this state and secures its obligations in accordance

with the requirements of this subsection.

1. In order to be eligible for certification, the assuming

insurer shall meet the following requirements:

a. the assuming insurer shall be domiciled and licensed

to transact insurance or reinsurance in a qualified

jurisdiction, as determined by the Commissioner

pursuant to paragraph 3 of this subsection,

b. the assuming insurer shall maintain minimum capital

and surplus, or its equivalent, in an amount to be

determined by the Commissioner pursuant to regulation,

c. the assuming insurer shall maintain financial strength

ratings from two or more rating agencies deemed

acceptable by the Commissioner pursuant to regulation,

Oklahoma Statutes - Title 36. Insurance Page 1040

d. the assuming insurer shall agree to submit to the

jurisdiction of this state, appoint the Commissioner

as its agent for service of process in this state and

agree to provide security for one hundred percent

(100%) of the assuming insurer's liabilities

attributable to reinsurance ceded by United States

ceding insurers if it resists enforcement of a final

United States judgment,

e. the assuming insurer shall agree to meet applicable

information filing requirements as determined by the

Commissioner, both with respect to an initial

application for certification and on an ongoing basis,

and

f. the assuming insurer shall satisfy any other

requirements for certification deemed relevant by the

Commissioner.

2. An association including incorporated and individual

unincorporated underwriters, may be a certified reinsurer. In order

to be eligible for certification, in addition to satisfying

requirements of paragraph 1 of this subsection:

a. the association shall satisfy its minimum capital and

surplus requirements through the capital and surplus

equivalents (net of liabilities) of the association

and its members, which shall include a joint central

fund that may be applied to any unsatisfied obligation

of the association or any of its members, in an amount

determined by the Commissioner to provide adequate

protection,

b. the incorporated members of the association shall not

be engaged in any business other than underwriting as

a member of the association and shall be subject to

the same level of regulation and solvency control by

the association's domiciliary regulator as are the

unincorporated members, and

c. within ninety (90) days after its financial statements

are due to be filed with the association's domiciliary

regulator, the association shall provide to the

Commissioner an annual certification by the

association's domiciliary regulator of the solvency of

each underwriter member; or if a certification is

unavailable, financial statements, prepared by

independent public accountants, of each underwriter

member of the association.

3. The Commissioner shall create and publish a list of

qualified jurisdictions under which an assuming insurer licensed and

domiciled in such jurisdiction is eligible to be considered for

certification by the Commissioner as a certified reinsurer.

Oklahoma Statutes - Title 36. Insurance Page 1041

a. In order to determine whether the domiciliary

jurisdiction of a non-United-States assuming insurer

is eligible to be recognized as a qualified

jurisdiction, the Commissioner shall evaluate the

appropriateness and effectiveness of the reinsurance

supervisory system of the jurisdiction, both initially

and on an ongoing basis, and consider the rights,

benefits and the extent of reciprocal recognition

afforded by the non-United-States jurisdiction to

reinsurers licensed and domiciled in the United

States. A qualified jurisdiction shall agree to share

information and cooperate with the Commissioner with

respect to all certified reinsurers domiciled within

that jurisdiction. A jurisdiction shall not be

recognized as a qualified jurisdiction if the

Commissioner has determined that the jurisdiction does

not adequately and promptly enforce final United

States judgments and arbitration awards. Additional

factors may be considered in the discretion of the

Commissioner.

b. A list of qualified jurisdictions shall be published

through the National Association of Insurance

Commissioners (NAIC) Committee Process. The

Commissioner shall consider this list in determining

qualified jurisdictions. If the Commissioner approves

a jurisdiction as qualified that does not appear on

the list of qualified jurisdictions, the Commissioner

shall provide thoroughly documented justification in

accordance with criteria to be developed under

regulations.

c. United States jurisdictions that meet the requirement

for accreditation under the NAIC financial standards

and accreditation program shall be recognized as

qualified jurisdictions.

d. If a certified reinsurer's domiciliary jurisdiction

ceases to be a qualified jurisdiction, the

Commissioner may at his or her discretion suspend the

reinsurer's certification indefinitely, in lieu of

revocation.

4. The Commissioner shall assign a rating to each certified

reinsurer, giving due consideration to the financial strength

ratings that have been assigned by rating agencies deemed acceptable

to the Commissioner pursuant to regulation. The Commissioner shall

publish a list of all certified reinsurers and their ratings.

5. A certified reinsurer shall secure obligations assumed from

United States ceding insurers under this subsection at a level

Oklahoma Statutes - Title 36. Insurance Page 1042

consistent with its rating, as specified in regulations promulgated

by the Commissioner.

a. In order for a domestic ceding insurer to qualify for

full financial statement credit for reinsurance ceded

to a certified reinsurer, the certified reinsurer

shall maintain security in a form acceptable to the

Commissioner and consistent with the provisions of

Section 5123 of this title, or in a multibeneficiary

trust in accordance with subsection E of this section,

except as otherwise provided in this subsection.

b. If a certified reinsurer maintains a trust to fully

secure its obligations subject to subsection E of this

section, and chooses to secure its obligations

incurred as a certified reinsurer in the form of a

multibeneficiary trust, the certified reinsurer shall

maintain separate trust accounts for its obligations

incurred under reinsurance agreements issued or

renewed as a certified reinsurer with reduced security

as permitted by this subsection or comparable laws of

other United States jurisdictions and for its

obligations subject to subsection E of this section.

It shall be a condition to the grant of certification

under this subsection that the certified reinsurer

shall have bound itself, by the language of the trust

and agreement with the Commissioner with principal

regulatory oversight of each such trust account, to

fund, upon termination of any such trust account, out

of the remaining surplus of such trust any deficiency

of any other such trust account.

c. The minimum trusteed surplus requirements provided in

subsection E of this section are not applicable with

respect to a multibeneficiary trust maintained by a

certified reinsurer for the purpose of securing

obligations incurred under this subsection, except

that such trust shall maintain a minimum trusteed

surplus of Ten Million Dollars ($10,000,000.00).

d. With respect to obligations incurred by a certified

reinsurer under this subsection, if the security is

insufficient, the Commissioner shall reduce the

allowable credit by an amount proportionate to the

deficiency, and may at his or her discretion impose

further reductions in allowable credit upon finding

that there is a material risk that the certified

reinsurer's obligations will not be paid in full when

due.

6. If an applicant for certification has been certified as a

reinsurer in an NAIC-accredited jurisdiction, the Commissioner may

Oklahoma Statutes - Title 36. Insurance Page 1043

at his or her discretion defer to that jurisdiction's certification,

and may in his or her discretion defer to the rating assigned by

that jurisdiction, and such assuming insurer shall be considered to

be a certified reinsurer in this state.

7. A certified reinsurer that ceases to assume new business in

this state may request to maintain its certification in inactive

status in order to continue to qualify for a reduction in security

for its in-force business. An inactive certified reinsurer shall

continue to comply with all applicable requirements of this

subsection, and the Commissioner shall assign a rating that takes

into account, if relevant, the reasons why the reinsurer is not

assuming new business.

8. For purposes of this subsection:

a. a certified reinsurer whose certification has been

terminated for any reason shall be treated as a

certified reinsurer required to secure one hundred

percent (100%) of its obligations, and

b. the term "terminated" refers to revocation,

suspension, voluntary surrender and inactive status.

If the Commissioner continues to assign a higher

rating as permitted by this section, the requirement

to secure one hundred percent (100%) of its

obligations shall not apply to a certified reinsurer

in inactive status or to a reinsurer whose

certification has been suspended.

G. 1. Credit shall be allowed when the reinsurance is ceded to

an assuming insurer meeting all of the following conditions:

a. the assuming insurer shall have its head office or be

domiciled, as applicable, and licensed in a reciprocal

jurisdiction. For purposes of this subparagraph,

"reciprocal jurisdiction" is a jurisdiction that is

one of the following:

(1) a non-United States jurisdiction that is subject

to an in-force, covered agreement with the United

States, each within its legal authority, or, in

the case of a covered agreement between the

United States and the European Union, is a member

state of the European Union. For purposes of

this subparagraph, a "covered agreement" is an

agreement entered into pursuant to Dodd-Frank

Wall Street Reform and Consumer Protection Act,

31 U.S.C. Sections 313 and 314, that is currently

in effect or in a period of provisional

application and addresses the elimination, under

specified conditions, of collateral requirements

as a condition for entering into any reinsurance

agreement with a ceding insurer domiciled in this

Oklahoma Statutes - Title 36. Insurance Page 1044

state or for allowing the ceding insurer to

recognize credit for reinsurance,

(2) a United States jurisdiction that meets the

requirements for accreditation under the National

Association of Insurance Commissioners financial

standards and accreditation program, or

(3) a qualified jurisdiction, as determined by the

Commissioner pursuant to paragraph 3 of

subsection F of this section, that is not

otherwise described in division 1 or 2 of

subparagraph a of paragraph 1 of this subsection

and meets additional requirements consistent with

the terms and conditions of in-force, covered

agreements, as specified by the Commissioner in

rules,

b. the assuming insurer shall have and maintain, on an

ongoing basis, minimum capital and surplus, or its

equivalent, calculated according to the methodology of

its domiciliary jurisdiction, in an amount to be set

forth in Insurance Department rules. If the assuming

insurer is an association including incorporated and

individual unincorporated underwriters, it shall have

and maintain, on an ongoing basis, minimum capital and

surplus equivalents (net of liabilities), calculated

according to the methodology applicable in its

domiciliary jurisdiction, and a central fund

containing a balance in amounts to be set forth in

Department rules,

c. the assuming insurer shall have and maintain, on an

ongoing basis, a minimum solvency or capital ratio, as

applicable, which will be set forth in Department

rules. If the assuming insurer is an association

including incorporated and individual unincorporated

underwriters, it shall have and maintain, on an

ongoing basis, a minimum solvency or capital ratio in

the reciprocal jurisdiction where the assuming insurer

has its head office or is domiciled and is also

licensed,

d. the assuming insurer shall agree and provide adequate

assurance to the Insurance Commissioner, in a form

specified by the Commissioner, as follows:

(1) the assuming insurer shall provide prompt written

notice and explanation to the Commissioner if it

falls below the minimum requirements set forth in

subparagraph b or c of this paragraph, or if any

regulatory action is taken against it for serious

noncompliance with applicable law,

Oklahoma Statutes - Title 36. Insurance Page 1045

(2) the assuming insurer shall consent in writing to

the jurisdiction of the courts of this state and

to the appointment of the Commissioner as agent

for service of process. The Commissioner may

require that consent for service of process be

provided to the Commissioner and included in each

reinsurance agreement. Nothing in this provision

shall be construed to limit, or in any way alter,

the capacity of parties to a reinsurance

agreement to agree to alternative dispute

resolution mechanisms, except to the extent such

agreements are unenforceable under applicable

insolvency or delinquency laws,

(3) the assuming insurer shall consent in writing to

pay all final judgments, wherever enforcement is

sought, obtained by a ceding insurer or its legal

successor, that have been declared enforceable in

the jurisdiction where the judgment was obtained,

(4) each reinsurance agreement shall include a

provision requiring the assuming insurer to

provide security in an amount equal to one

hundred percent (100%) of the liabilities of the

assuming insurer attributable to reinsurance

ceded pursuant to that agreement if the assuming

insurer resists enforcement of a final judgment

that is enforceable under the law of the

jurisdiction in which it was obtained or a

properly enforceable arbitration award, whether

obtained by the ceding insurer or by its legal

successor on behalf of its resolution estate, and

(5) the assuming insurer shall confirm that it is not

presently participating in any solvent scheme of

arrangement that involves the ceding insurers of

this state, and agree to notify the ceding

insurer and the Commissioner and to provide

security in an amount equal to one hundred

percent (100%) of the liabilities of the assuming

insurer to the ceding insurer, should the

assuming insurer enter into such a solvent scheme

of arrangement. The security shall be in a form

consistent with the provisions of subsection F of

Section 5122 and Section 5123 of this title,

specified by the Commissioner in rule,

e. the assuming insurer or its legal successor shall

provide, on behalf of itself and any legal

predecessors, any additional documentation requested

by the Commissioner in regulation,

Oklahoma Statutes - Title 36. Insurance Page 1046

f. the assuming insurer shall maintain a practice of

prompt payment of claims under reinsurance agreements,

pursuant to criteria set forth in rule,

g. the supervisory authority of the assuming insurer

shall confirm to the Commissioner on an annual basis,

as of the preceding December 31 or at the annual date

otherwise statutorily reported to the reciprocal

jurisdiction, that the assuming insurer complies with

the requirements set forth in subparagraphs b and c of

this paragraph, and

h. nothing in this provision shall be construed to

preclude an assuming insurer from providing the

Commissioner with information on a voluntary basis.

2. The Commissioner shall timely create and publish a list of

reciprocal jurisdictions.

a. A list of reciprocal jurisdictions is published

through the National Association of Insurance

Commissioners Committee Process. The list shall

include any reciprocal jurisdiction as defined under

subparagraph a of paragraph 1 of this subsection and

shall consider any other reciprocal jurisdiction

included on the National Association of Insurance

Commissioners list. The Commissioner may approve a

jurisdiction that does not appear on the list of

reciprocal jurisdictions in accordance with criteria

to be developed through rules issued by the

Commissioner.

b. The Commissioner may remove a jurisdiction from the

list of reciprocal jurisdictions upon a determination

that the jurisdiction no longer meets the requirements

of a reciprocal jurisdiction, in accordance with a

process set forth in rules issued by the Commissioner,

except that the Commissioner shall not remove from the

list a reciprocal jurisdiction as defined under

subparagraph a of paragraph 1 of this subsection.

Upon removal of a reciprocal jurisdiction from this

list, credit for reinsurance ceded to an assuming

insurer that has its home office or is domiciled in

that jurisdiction shall be allowed, if otherwise

allowed pursuant to this act.

3. The Commissioner shall timely create and publish a list of

assuming insurers that have satisfied the conditions set forth in

this subsection and to which cessions shall be granted credit in

accordance with this subsection. The Commissioner may add an

assuming insurer to such list if a National Association of Insurance

Commissioners accredited jurisdiction has added the assuming insurer

to a list of such assuming insurers or if, upon initial eligibility,

Oklahoma Statutes - Title 36. Insurance Page 1047

the assuming insurer submits the information to the Commissioner as

required under subparagraph d of paragraph 1 of this subsection and

complies with any additional requirements that the Commissioner may

impose by regulation, except to the extent that they conflict with

an applicable covered agreement.

4. If the Commissioner determines that an assuming insurer no

longer meets one or more of the requirements under this subsection,

the Commissioner may revoke or suspend the eligibility of the

assuming insurer for recognition under this subsection in accordance

with procedures set forth in Department rules.

a. While the eligibility of an assuming insurer is

suspended, no reinsurance agreement issued, amended or

renewed after the effective date of the suspension

qualifies for credit except to the extent that the

obligations of the assuming insurer under the contract

are secured in accordance with the provisions of

Section 5123 of this title.

b. If the eligibility of an assuming insurer is revoked,

no credit for reinsurance may be granted after the

effective date of the revocation with respect to any

reinsurance agreements entered into by the assuming

insurer including reinsurance agreements entered into

prior to the date of revocation, except to the extent

that the obligations of the assuming insurer under the

contract are secured in a form acceptable to the

Commissioner.

5. If subject to a legal process of rehabilitation, liquidation

or conservation, as applicable, the ceding insurer or its

representative may seek and, if determined appropriate by the court

in which the proceedings are pending, may obtain an order requiring

that the assuming insurer post security for all outstanding ceded

liabilities.

6. Nothing in this subsection shall be construed to limit or in

any way alter the capacity of parties to a reinsurance agreement to

agree on requirements for security or other terms in that

reinsurance agreement, except as expressly prohibited by this act or

other applicable law or rule.

7. Credit may be taken under this subsection only for

reinsurance agreements entered into, amended or renewed on or after

the effective date of this act, and only with respect to losses

incurred and reserves reported on or after the later of (1) the date

on which the assuming insurer has met all eligibility requirements

pursuant to paragraph 1 of this subsection, and (2) the effective

date of the new reinsurance agreement, amendment or renewal.

a. This paragraph does not alter or impair the right of a

ceding insurer to take credit for reinsurance, to the

extent that credit is not available under this

Oklahoma Statutes - Title 36. Insurance Page 1048

subsection, as long as the reinsurance qualifies for

credit under any other applicable provision of this

act.

b. Nothing in this subsection shall be construed to

authorize an assuming insurer to withdraw or reduce

the security provided under any reinsurance agreement,

except as permitted by the terms of the agreement.

c. Nothing in this subsection shall be construed to

limit, or in any way alter, the capacity of parties to

any reinsurance agreement to renegotiate the

agreement.

H. Credit shall be allowed when the reinsurance is ceded to an

assuming insurer not meeting the requirements of subsection B, C, D,

E, F or G of this section but only as the insurance of risks located

in jurisdictions where the reinsurance is required by applicable law

or regulation of that jurisdiction.

I. If the assuming insurer is not licensed, accredited or

certified to transact insurance or reinsurance in this state, the

credit permitted by subsections D and E of this section shall not be

allowed unless the assuming insurer agrees in the reinsurance

agreements:

1. That in the event of the failure of the assuming insurer to

perform its obligations under the terms of the reinsurance

agreement, the assuming insurer, at the request of the ceding

insurer, shall submit to the jurisdiction of any court of competent

jurisdiction in any state of the United States, will comply with all

requirements necessary to give the court jurisdiction, and will

abide by the final decision of the court or of any appellate court

in the event of an appeal; and

2. To designate the Insurance Commissioner or a designated

attorney as its true and lawful attorney upon whom may be served any

lawful process in any action, suit or proceeding instituted by or on

behalf of the ceding insurer. This subsection is not intended to

conflict with or override the obligation of the parties to a

reinsurance agreement to arbitrate their disputes, if this

obligation is created in the agreement.

J. If the assuming insurer does not meet the requirements of

subsection B, C, D, or G of this section, the credit permitted by

subsection E or F of this section shall not be allowed unless the

assuming insurer agrees in the trust agreements to the following

conditions:

1. Notwithstanding any other provisions in the trust

instrument, if the trust fund is inadequate because it contains an

amount less than the amount required by paragraph 6 of subsection E

of this section, or if the grantor of the trust has been declared

insolvent or placed into receivership, rehabilitation, liquidation

or similar proceedings under the laws of its state or country of

Oklahoma Statutes - Title 36. Insurance Page 1049

domicile, the trustee shall comply with an order of the Commissioner

with regulatory oversight over the trust or with an order of a court

of competent jurisdiction directing the trustee to transfer to the

Commissioner with regulatory oversight all of the assets of the

trust fund;

2. The assets shall be distributed by and claims shall be filed

with and valued by the Commissioner with regulatory oversight in

accordance with the laws of the state in which the trust is

domiciled that are applicable to the liquidation of domestic

insurance companies;

3. If the Commissioner with regulatory oversight determines

that the assets of the trust fund or any part thereof are not

necessary to satisfy the claims of the United States ceding insurers

of the grantor of the trust, the assets or part thereof shall be

returned by the Commissioner with regulatory oversight to the

trustee for distribution in accordance with the trust agreement; and

4. The grantor shall waive any right otherwise available to it

under United States law that is inconsistent with this provision.

K. If an accredited or certified reinsurer ceases to meet the

requirements for accreditation or certification, the Commissioner

may suspend or revoke the reinsurer's accreditation or

certification.

1. The Commissioner shall give the reinsurer notice and

opportunity for hearing. The suspension or revocation shall not

take effect until after the Commissioner's order on hearing, unless:

a. the reinsurer waives its right to hearing,

b. the Commissioner's order is based on regulatory action

by the reinsurer's domiciliary jurisdiction or the

voluntary surrender or termination of the reinsurer's

eligibility to transact insurance or reinsurance

business in its domiciliary jurisdiction or in the

primary certifying state of the reinsurer under

paragraph 6 of subsection F of this section, or

c. the Commissioner finds that an emergency requires

immediate action and a court of competent jurisdiction

has not stayed the Commissioner's action.

2. While a reinsurer's accreditation or certification is

suspended, no reinsurance contract issued or renewed after the

effective date of the suspension qualifies for credit except to the

extent that the reinsurer's obligations under the contract are

secured in accordance with Section 5123 of this title. If a

reinsurer's accreditation or certification is revoked, no credit for

reinsurance shall be granted after the effective date of the

revocation except to the extent that the reinsurer's obligations

under the contract are secured in accordance with paragraph 5 of

subsection F of this section or Section 5123 of this title.

L. Concentration Risk.

Oklahoma Statutes - Title 36. Insurance Page 1050

1. A ceding insurer shall take steps to manage its reinsurance

recoverables proportionate to its own book of business. A domestic

ceding insurer shall notify the Commissioner within thirty (30) days

after reinsurance recoverables from any single assuming insurer, or

group of affiliated assuming insurers, exceeds fifty percent (50%)

of the domestic ceding insurer's last reported surplus to

policyholders, or after it is determined that reinsurance

recoverables from any single assuming insurer, or group of

affiliated assuming insurers, is likely to exceed this limit. The

notification shall demonstrate that the exposure is safely managed

by the domestic ceding insurer.

2. A ceding insurer shall take steps to diversify its

reinsurance program. A domestic ceding insurer shall notify the

Commissioner within thirty (30) days after ceding to any single

assuming insurer, or group of affiliated assuming insurers, more

than twenty percent (20%) of the ceding insurer's gross written

premium in the prior calendar year, or after it has determined that

the reinsurance ceded to any single assuming insurer, or group of

affiliated assuming insurers, is likely to exceed this limit. The

notification shall demonstrate that the exposure is safely managed

by the domestic ceding insurer.
Okla. Stat. tit. 36, § 36-1636 — OK Code / Title 36 / Section 36-1636
Transactions within an insurance holding company -
Status: in_force

Standards.

A. 1. Transactions within an insurance holding company system

to which an insurer subject to registration is a party shall be

subject to the following standards:

a. the terms shall be fair and reasonable,

Oklahoma Statutes - Title 36. Insurance Page 471

b. agreements for cost-sharing services and management

shall include such provisions as required by rule and

regulation issued by the Commissioner,

c. charges or fees for services performed shall be

reasonable,

d. expenses incurred and payment received shall be

allocated to the insurer in conformity with customary

insurance accounting practices consistently applied,

e. the books, accounts and records of each party to all

such transactions shall be so maintained as to clearly

and accurately disclose the nature and details of the

transactions including such accounting information as

is necessary to support the reasonableness of the

charges or fees to the respective parties,

f. the insurer's surplus as regards policyholders

following any dividends or distributions to

shareholder affiliates shall be reasonable in relation

to the insurer's outstanding liabilities and adequate

to meet its financial needs,

g. if an insurer subject to this act is deemed by the

Commissioner to be in a hazardous financial condition

as defined by Section 1905 of this title and

applicable regulations in Title 365 of the Oklahoma

Administrative Code or a condition that would be

grounds for supervision, conservation, or a

delinquency proceeding, then the Commissioner may

require the insurer to secure and maintain from any

affiliate with whom the insurer has services or

management agreements either a deposit, held by the

Commissioner, or a bond, as determined by the insurer

at the insurer's discretion, for the protection of the

insurer for the duration of the contract(s) or

agreement(s), or the existence of the condition for

which the Commissioner required the deposit or the

bond. In determining whether a deposit or a bond is

required, the Commissioner should consider whether

concerns exist with respect to the affiliated person's

ability to fulfill the contract(s) or agreement(s) if

the insurer were to be put into liquidation. Once the

insurer is deemed to be in a hazardous financial

condition or a condition that would be grounds for

supervision, conservation, or a delinquency

proceeding, and a deposit or bond is necessary, the

Commissioner has discretion to determine the amount of

the deposit or bond, not to exceed the value of the

contract(s) or agreement(s) in any one (1) year, and

whether such deposit or bond should be required for a

Oklahoma Statutes - Title 36. Insurance Page 472

single contract, multiple contracts, or a contract

only with a specific person(s),

h. all records and data of the insurer held by an

affiliate are and remain the property of the insurer,

are subject to control of the insurer, are

identifiable, and are segregated or readily capable of

segregation, at no additional cost to the insurer,

from all other persons' records and data. This

includes all records and data that are otherwise the

property of the insurer, in whatever form maintained,

including, but not limited to, claims and claim files,

policyholder lists, application files, litigation

files, premium records, rate books, underwriting

manuals, personnel records, financial records, or

similar records within the possession, custody, or

control of the affiliate. At the request of the

insurer, the affiliate shall provide that the receiver

can obtain a complete set of all records of any type

that pertain to the insurer's business; obtain access

to the operating systems on which the data is

maintained; obtain the software that runs those

systems either through assumption of licensing

agreements or otherwise; and restrict the use of the

data by the affiliate if it is not operating the

insurer's business. The affiliate shall provide a

waiver of any landlord lien or other encumbrance to

give the insurer access to all records and data in the

event of the affiliate's default under a lease or

other agreement, and

i. premiums or other funds belonging to the insurer that

are collected by or held by an affiliate are the

exclusive property of the insurer and are subject to

the control of the insurer. Any right of offset in

the event an insurer is placed into receivership shall

be subject to Article 19 of this title regarding

rehabilitation and liquidation of insurers.

2. The following transactions involving a domestic insurer and

any person in its insurance holding company system, including

amendments or modifications of affiliate agreements previously filed

pursuant to this section, which are subject to any materiality

standards contained in subparagraphs a through g of this paragraph,

shall not be entered into unless the insurer has notified the

Commissioner in writing of its intention to enter into the

transaction at least thirty (30) days prior thereto, or such shorter

period as the Commissioner may permit, and the Commissioner has not

disapproved it within that period. The notice for amendments or

modifications shall include the reasons for the change and the

Oklahoma Statutes - Title 36. Insurance Page 473

financial impact on the domestic insurer. Informal notice shall be

reported, within thirty (30) days after a termination of a

previously filed agreement, to the Commissioner for determination of

the type of filing required, if any:

a. sales, purchases, exchanges, loans, extensions of

credit, or investments, provided the transactions are

equal to or exceed:

(1) with respect to nonlife insurers, the lesser of

three percent (3%) of the insurer's admitted

assets or twenty-five percent (25%) of surplus as

regards policyholders as of the 31st day of

December next preceding, and

(2) with respect to life insurers, three percent (3%)

of the insurer's admitted assets as of the 31st

day of December next preceding,

b. loans or extensions of credit to any person who is not

an affiliate, where the insurer makes loans or

extensions of credit with the agreement or

understanding that the proceeds of the transactions,

in whole or in substantial part, are to be used to

make loans or extensions of credit to, to purchase

assets of, or to make investments in, any affiliate of

the insurer making the loans or extensions of credit

provided the transactions are equal to or exceed:

(1) with respect to nonlife insurers, the lesser of

three percent (3%) of the insurer's admitted

assets or twenty-five percent (25%) of surplus as

regards policyholders as of the 31st day of

December next preceding, and

(2) with respect to life insurers, three percent (3%)

of the insurer's admitted assets as of the 31st

day of December next preceding,

c. reinsurance agreements or modifications thereto,

including:

(1) all reinsurance pooling agreements, and

(2) agreements in which the reinsurance premium or a

change in the insurer's liabilities, or the

projected reinsurance premium or a change in the

insurer's liabilities in any of the next three

(3) years, equals or exceeds five percent (5%) of

the insurer's surplus as regards policyholders,

as of the 31st day of December next preceding,

including those agreements which may require as

consideration the transfer of assets from an

insurer to a nonaffiliate, if an agreement or

understanding exists between the insurer and

nonaffiliate that any portion of the assets will

Oklahoma Statutes - Title 36. Insurance Page 474

be transferred to one or more affiliates of the

insurer,

d. all management agreements, service contracts, tax

allocation agreements, guarantees and all cost-sharing

arrangements,

e. guarantees when made by a domestic insurer; provided,

however, that a guarantee which is quantifiable as to

amount is not subject to the notice requirements of

this paragraph unless it exceeds the lesser of one-

half of one percent (.5%) of the insurer's admitted

assets or ten percent (10%) of surplus as regards

policyholders as of the 31st day of December next

preceding. Further, all guarantees which are not

quantifiable as to amount are subject to the notice

requirements of this paragraph,

f. direct or indirect acquisitions or investments in a

person that controls the insurer or in an affiliate of

the insurer in an amount which, together with its

present holdings in such investments, exceeds two and

one-half percent (2.5%) of the insurer's surplus to

policyholders. Direct or indirect acquisitions or

investments in subsidiaries acquired pursuant to

Section 1632 of this title (or authorized under any

other section of this title), or in nonsubsidiary

insurance affiliates that are subject to the

provisions of this act, are exempt from this

requirement, and

g. any material transactions, specified by regulation,

which the Commissioner determines may adversely affect

the interests of the insurer's policyholders.

Nothing in this paragraph shall be deemed to authorize or permit

any transactions which, in the case of an insurer not a member of

the same insurance holding company system, would be otherwise

contrary to law.

3. A domestic insurer may not enter into transactions which are

part of a plan or series of like transactions with persons within

the insurance holding company system if the purpose of those

separate transactions is to avoid the statutory threshold amount and

thus avoid the review that would occur otherwise. If the

Commissioner determines that separate transactions were entered into

over any twelve-month period for that purpose, the Commissioner may

exercise his or her authority under Section 1641 of this title.

4. The Commissioner, in reviewing transactions pursuant to

paragraph 2 of this subsection, shall consider whether the

transactions comply with the standards set forth in paragraph 1 of

this subsection and whether they may adversely affect the interests

of policyholders.

Oklahoma Statutes - Title 36. Insurance Page 475

5. The Commissioner shall be notified within thirty (30) days

of any investment of the domestic insurer in any one corporation if

the total investment in the corporation by the insurance holding

company system exceeds ten percent (10%) of the corporation's voting

securities.

6. a. Any affiliate that is party to an agreement or

contract with a domestic insurer that is subject to

subparagraph d of paragraph 2 of this subsection shall

be subject to the jurisdiction of any supervision,

seizure, conservatorship, or receivership proceedings

against the insurer and to the authority of any

supervisor, conservator, rehabilitator, or liquidator

for the insurer appointed pursuant to Article 18 or 19

of this title regarding rehabilitation and liquidation

of insurers for the purpose of interpreting,

enforcing, and overseeing the affiliate's obligations

under the agreement or contract to perform services

for the insurer that are:

(1) an integral part of the insurer's operations,

including, but not limited to, management,

administrative, accounting, data processing,

marketing, underwriting, claims handling,

investment, or any other similar functions, or

(2) essential to the insurer's ability to fulfill its

obligations under insurance policies.

b. The Commissioner may require that an agreement or

contract pursuant to subparagraph d of paragraph 2 of

this subsection for the provision of services

described in divisions (1) and (2) of subparagraph a

of this paragraph specify the affiliate consents to

the jurisdiction as set forth in this paragraph.

B. No domestic insurer shall pay any extraordinary dividend or

make any other extraordinary distribution to its shareholders until

thirty (30) days after the Commissioner has received notice of the

declaration thereof and has not within that period disapproved the

payment, or until the Commissioner has approved the payment within

the thirty-day period. For purposes of this section, an

extraordinary dividend or distribution includes any dividend or

distribution of cash or other property whose fair market value

together with that of other dividends or distributions made within

the preceding twelve (12) months exceeds the greater of:

1. Ten percent (10%) of the insurer's surplus as regards

policyholders as of the 31st day of December next preceding; or

2. The net gain from operations of the insurer, if the insurer

is a life insurer, or the net income, if the insurer is not a life

insurer, not including realized capital gains, for the twelve-month

period ending the 31st day of December next preceding, but shall not

Oklahoma Statutes - Title 36. Insurance Page 476

include pro rata distributions of any class of the insurer's own

securities.

In determining whether a dividend or distribution is

extraordinary, an insurer other than a life insurer may carry

forward net income from the previous two (2) calendar years that has

not already been paid out as dividends. This carry-forward shall be

computed by taking the net income from the second and third

preceding calendar years, not including realized capital gains, less

dividends paid in the second and immediate preceding calendar years.

Notwithstanding any other provision of law, an insurer may

declare an extraordinary dividend or distribution which is

conditional upon the Commissioner's approval, and the declaration

shall confer no rights upon shareholders until (1) the Commissioner

has approved the payment of the dividend or distribution or (2) the

Commissioner has not disapproved payment within the thirty-day

period.

C. 1. Notwithstanding the control of a domestic insurer by any

person, the officers and directors of the insurer shall not thereby

be relieved of any obligation or liability to which they would

otherwise be subject by law, and the insurer shall be managed so as

to assure its separate operating identity consistent with this act.

2. Nothing in this section shall preclude a domestic insurer

from having or sharing a common management or cooperative or joint

use of personnel, property or services with one or more other

persons under arrangements meeting the standards of paragraph 1 of

subsection A of this section.

3. Not less than one-third (1/3) of the directors of a domestic

insurer, and not less than one-third (1/3) of the members of each

committee of the board of directors of any domestic insurer, shall

be persons who are not officers or employees of the insurer or of

any entity controlling, controlled by, or under common control with

the insurer and who are not beneficial owners of a controlling

interest in the voting stock of the insurer or entity. At least one

such person must be included in any quorum for the transaction of

business at any meeting of the board of directors or any committee

thereof.

4. The board of directors of a domestic insurer shall establish

one or more committees comprised solely of directors who are not

officers or employees of the insurer or of any entity controlling,

controlled by, or under common control with the insurer and who are

not beneficial owners of a controlling interest in the voting stock

of the insurer or any such entity. The committee or committees

shall have responsibility for nominating candidates for director for

election by shareholders or policyholders, evaluating the

performance of officers deemed to be principal officers of the

insurer and recommending to the board of directors the selection and

compensation of the principal officers.

Oklahoma Statutes - Title 36. Insurance Page 477

5. The provisions of paragraphs 3 and 4 of this subsection

shall not apply to a domestic insurer if the person controlling the

insurer, such as an insurer, a mutual insurance holding company, or

a publicly held corporation, has a board of directors and committees

thereof that meet the requirements of paragraphs 3 and 4 of this

subsection with respect to such controlling entity.

6. An insurer may make application to the Commissioner for a

waiver from the requirements of this subsection, if the insurer's

annual direct written and assumed premium, excluding premiums

reinsured with the Federal Crop Insurance Corporation and Federal

Flood Program, is less than Three Hundred Million Dollars

($300,000,000.00). An insurer may also make application to the

Commissioner for a waiver from the requirements of this subsection

based upon unique circumstances. The Commissioner may consider

various factors including, but not limited to, the type of business

entity, volume of business written, availability of qualified board

members, or the ownership or organizational structure of the entity.

D. For purposes of this act, in determining whether an

insurer's surplus as regards policyholders is reasonable in relation

to the insurer's outstanding liabilities and adequate to meet its

financial needs, the following factors, among others, shall be

considered:

1. The size of the insurer as measured by its assets, capital

and surplus, reserves, premium writings, insurance in force and

other appropriate criteria;

2. The extent to which the insurer's business is diversified

among several lines of insurance;

3. The number and size of risks insured in each line of

business;

4. The extent of the geographical dispersion of the insurer's

insured risks;

5. The nature and extent of the insurer's reinsurance program;

6. The quality, diversification and liquidity of the insurer's

investment portfolio;

7. The recent past and projected future trend in the size of

the insurer's investment portfolio;

8. The surplus as regards policyholders maintained by other

comparable insurers;

9. The adequacy of the insurer's reserves; and

10. The quality and liquidity of investments in affiliates.

The Commissioner may treat any such investment as a disallowed asset

for purposes of determining the adequacy of surplus as regards

policyholders whenever in the judgment of the Commissioner the

investment so warrants.
Okla. Stat. tit. 36, § 36-709 — OK Code / Title 36 / Section 36-709
"Title insurance" defined
Status: in_force

"Title insurance" is insurance of owners of property or others

having an interest therein, or liens or encumbrances thereon,

against loss by encumbrance, or defective titles, or invalidity, or

adverse claim to title.
Okla. Stat. tit. 36, § 36-3010 — OK Code / Title 36 / Section 36-3010
Actions on policies or insurance contracts – Process –
Status: in_force

Judgment - Costs.

Action on any policy or contract of insurance issued by an

attorney for the underwriters may be brought against the attorney.

In such action, summons and process shall be served on either the

Insurance Commissioner or on the attorney-in-fact, and when so

served shall have the same effect as if served on the attorney and

on each underwriter personally. A judgment in any such action

against the attorney shall be binding upon and be judgment against

each and all of the underwriters as their several liabilities may

appear in the contract of insurance on which the action is brought.

And such summons or other process shall be served in triplicate,

and the Insurance Commissioner shall forthwith, by registered mail,

send one copy thereof to the attorney for the underwriters at the

principal office designated in the application for license or latest

amendment thereof. The party commencing any action against the

underwriters at a Lloyd's and securing service of process in this

manner shall at the time of such service pay to such Insurance

Commissioner a fee of Three Dollars ($3.00), which the party shall

be entitled to collect as taxable costs in the action if he shall

prevail.
Okla. Stat. tit. 36, § 36-6467 — OK Code / Title 36 / Section 36-6467
Reciprocal agreements
Status: in_force

Oklahoma Statutes - Title 36. Insurance Page 1209

The Commissioner may make reciprocal agreements with other

states to further the purposes of this act.
Okla. Stat. tit. 36, § 36-311A.3 — OK Code / Title 36 / Section 36-311A.3
Definitions
Status: in_force

As used in the Oklahoma Annual Financial Report Act:

1. "Accountant" or "independent certified public accountant"

means an independent certified public accountant or accounting firm

in good standing with the American Institute of Certified Public

Accounts (AICPA), and in all states in which the accountant is

licensed to practice and for Canadian and British companies, it

means a Canadian-chartered or British-chartered accountant;

2. An "affiliate" of, or person "affiliated" with, a specific

person, is a person that directly, or indirectly through one or more

intermediaries, controls, or is controlled by, or is under common

control with, the person specified;

3. "Audit committee" means a committee or equivalent body

established by the board of directors of an entity for the purpose

of overseeing the accounting and financial reporting processes of an

insurer or group of insurers, the internal audit function of an

insurer or group of insurers, if applicable, and external audits of

financial statements of the insurer or group of insurers, and audits

of financial statements of the insurer or group of insurers. The

audit committee of any entity that controls a group of insurers may

be deemed to be the audit committee for one or more of these

controlled insurers solely for the purposes of the Oklahoma Annual

Oklahoma Statutes - Title 36. Insurance Page 79

Financial Report Act at the election of the controlling person. The

exercise of this election shall be pursuant to subsection G of

Section 311A.14 of this title. If an audit committee is not

designated by the insurer, the entire board of directors of the

insurer shall constitute the audit committee;

4. "Audited financial report" means and includes those items

specified in Section 311A.5 of this title;

5. "Indemnification" means an agreement of indemnity or a

release from liability where the intent or effect is to shift or

limit in any manner the potential liability of the person or firm

for failure to adhere to applicable auditing or professional

standards, whether or not resulting in part from knowing of other

misrepresentations made by the insurer or its representatives;

6. "Independent board member" has the same meaning as described

in subsection E of Section 311A.14 of this title;

7. "Insurer" means a licensed insurer as defined in Section 103

of this title. For purposes of the Oklahoma Annual Financial Report

Act, insurer includes but is not limited to fraternal benefit

societies, health maintenance organizations, multiple employer

welfare arrangements, title insurers, and similar organizations

licensed by the Insurance Commissioner;

8. "Group of insurers" means those licensed insurers included

in the reporting requirements of Article 16A of the Oklahoma

Insurance Code, or a set of insurers as identified by management,

for the purpose of assessing the effectiveness of internal control

over financial reporting;

9. "Internal audit function" means a person or persons that

provide independent, objective and reasonable assurance designed to

add value and improve an organization's operations and accomplish

its objectives by bringing a systematic, disciplined approach to

evaluate and improve the effectiveness of risk management, control

and governance processes;

10. "Internal control over financial reporting" means a process

effected by the board of directors, management, and other personnel

of an entity designed to provide reasonable assurance regarding the

reliability of the financial statements, i.e., those items specified

in paragraphs 2 through 7 of subsection B of Section 311A.5 of this

title and includes those policies and procedures that:

a. pertain to the maintenance of records that, in

reasonable detail and accurately, fairly reflect the

transactions and dispositions of assets,

b. provide reasonable assurance that transactions are

recorded as necessary to permit preparation of the

financial statements, i.e., those items specified in

paragraphs 2 through 7 of subsection B of Section

311A.5 of this title and that receipts and

Oklahoma Statutes - Title 36. Insurance Page 80

expenditures are being made only in accordance with

authorizations of management and directors, and

c. provide reasonable assurance regarding prevention or

timely detection of unauthorized acquisition, use, or

disposition of assets that could have a material

effect on the financial statements, i.e., those items

specified in paragraphs 2 through 7 of subsection B of

Section 311A.5 of this title;

11. "SEC" means the United States Securities and Exchange

Commission;

12. "Section 404" means Section 404 of the Sarbanes-Oxley Act

of 2002 and the rules and regulations of the SEC promulgated

thereunder;

13. "Section 404 Report" means the report on internal control

over financial reporting of management as defined by the SEC and the

related attestation report of the independent certified public

accountant; and

14. "SOX Compliant Entity" means an entity that either is

required to be compliant with, or voluntarily is compliant with, all

of the following provisions of the Sarbanes-Oxley Act of 2002:

a. the preapproval requirements of Section 201 (Section

10A(i) of the Securities Exchange Act of 1934),

b. the audit committee independence requirements of

Section 301 (Section 10A(m)(3) of the Securities

Exchange Act of 1934), and

c. the internal control over financial reporting

requirements of Section 404 (Item 308 of SEC

Regulation S-K).
Okla. Stat. tit. 36, § 36-4410 — OK Code / Title 36 / Section 36-4410
Franchise accident and health insurance law
Status: in_force

Accident and health insurance on a franchise plan is hereby

declared to be that form of accident and health insurance issued to:

1. Five or more employees of any corporation, copartnership or

individual employer or any governmental corporation, agency or

department thereof; or

2. Ten or more members, employees or employees of members of

any trade or professional association or of a labor union or of any

other association having had an active existence for at least two

(2) years where such association or union has a constitution or

bylaws and is formed in good faith for purposes other than that of

obtaining insurance;

where such persons, with or without their dependents, are issued the

same form of an individual policy varying only as to amounts and

kinds of coverage applied for by such persons under an arrangement

whereby the premiums on such policies may be paid to the insurer

periodically by the employer, with or without payroll deductions, or

by the association for its members, or by some designated person

acting on behalf of such employer or association. The term

"employees" as used herein may 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.
Okla. Stat. tit. 36, § 36-619.2 — OK Code / Title 36 / Section 36-619.2
Workers' Compensation Fraud Unit of Office of Attorney
Status: in_force

General - Notification of certain violations.

Any insurer which has reason to believe that a person has

engaged in or is engaging in an act or practice that violates any

workers' compensation fraud statute or administrative rule of this

state shall immediately notify the Workers' Compensation Fraud Unit

of the Office of the Attorney General.Oklahoma Statutes - Title 36. Insurance Page 3
Okla. Stat. tit. 36, § 36-4803.1 — OK Code / Title 36 / Section 36-4803.1
Fire insurance policies - Time of expiration
Status: in_force

All fire insurance policies, as defined by Section 4802 of Title

36 of the Oklahoma Statutes, shall expire at 12:01 a.m. Standard

Time on the expiration date stated in the policy. This section shall

apply to all fire insurance policies on the first policy renewal

date after December 31, 1982.
Okla. Stat. tit. 36, § 36-6206 — OK Code / Title 36 / Section 36-6206
Evidence to be furnished for license - Certain personal
Status: in_force

information exempt from disclosure as public records - Mailing

addresses.

A. The Insurance Commissioner shall license as an adjuster only

an individual who has fully complied with the provisions of the

Insurance Adjusters Licensing Act, including the furnishing of

evidence satisfactory to the Commissioner that the applicant:

1. Is at least eighteen (18) years of age;

2. Is a bona fide resident of this state or is a resident of a

state or country which permits adjusters who are residents of this

state to act as adjusters in such other state or country;

3. If a nonresident of the United States, has complied with all

federal laws pertaining to employment and the transaction of

business in the United States;

4. Is a trustworthy person;

5. Has had experience or special education or training of

sufficient duration and extent with reference to the handling of

loss claims pursuant to insurance contracts to make the applicant

competent to fulfill the responsibilities of an adjuster;

6. Has successfully passed an examination as required by the

Commissioner within two (2) years prior to date of application, or

has been exempted from examination, in accordance with the

provisions of Section 6208 of this title; and

7. If the application is for a public adjuster’s license, the

applicant has filed the bond required by Section 6214 of this title.

B. Residence addresses and telephone listings, birth dates, and

social security numbers for insurance adjusters and public adjusters

on file with the Insurance Department are exempt from disclosure as

public records. A separate business or mailing address as provided

by the adjuster shall be considered a public record and upon request

shall be disclosed. If an adjuster’s residence and business address

or residence and business telephone number are the same, such

address or telephone number shall be considered a public record.

C. The mailing address shall appear on all licenses of the

licensee, and the licensee shall promptly notify the Insurance

Commissioner within thirty (30) days of any change in legal name or

preferred mailing address, physical business address, e-mail

address, or physical residential address of the licensee. A change

in legal name or address thirty (30) days after the change must

Oklahoma Statutes - Title 36. Insurance Page 1166

include an administrative fee of Fifty Dollars ($50.00). Failure to

provide acceptable notification of a change of legal name or address

to the Insurance Commissioner within forty-five (45) days of the

date the administrative fee is assessed will result in penalties

pursuant to Section 6220 of this title.

D. An adjuster doing business in this state under any name

other than the adjuster’s legal name shall notify the Insurance

Commissioner and submit any payment necessary electronically and in

the form and manner prescribed by the Commissioner prior to using

the assumed name.Oklahoma Statutes - Title 36. Insurance Page 32
Okla. Stat. tit. 36, § 36-2678 — OK Code / Title 36 / Section 36-2678
Directors
Status: in_force

The directors of a dental service corporation shall at all times

include representatives of:

Oklahoma Statutes - Title 36. Insurance Page 703

1. Dentists licensed to practice in this state; and

2. The general public.
Okla. Stat. tit. 36, § 36-6470.25 — OK Code / Title 36 / Section 36-6470.25
Protected cell - Use of assets
Status: in_force

In the case of a sponsored captive insurance company:

1. The assets of the protected cell may not be used to pay

expenses or claims other than those attributable to the protected

cell; and

2. Its capital and surplus at all times must be available to

pay expenses of or claims against the sponsored captive insurance

company and may not be used to pay expenses or claims attributable

to a protected cell.
Okla. Stat. tit. 36, § 36-2684 — OK Code / Title 36 / Section 36-2684
Exemptions
Status: in_force

The provisions of this Article shall govern and apply only to

nonprofit dental service corporations. Such corporations shall be

exempt from all other provisions of the insurance laws of this

state; provided, however, that Articles 1, 3, 12, 17, 18, and

Section 1606 of Title 36, Oklahoma Statutes, shall apply to such

corporations to the extent that such provisions are not in conflict

with the provisions of this Article.
Okla. Stat. tit. 36, § 36-4079 — OK Code / Title 36 / Section 36-4079
Purchase of annuities authorized
Status: in_force

A qualified charitable organization may use a portion of the

money or property received in exchange for a qualified charitable

gift annuity to purchase an annuity upon the life of the annuitant

of the qualified charitable gift annuity from an insurance company

qualified to transact a business of insurance in this state.
Okla. Stat. tit. 36, § 36-5005 — OK Code / Title 36 / Section 36-5005
Exemptions and application of other laws
Status: in_force

A. Title insurers shall be governed by this article and, to the

extent not modified by or inconsistent with the provisions of this

article or the provisions of this code made applicable to such

insurers, by the general laws of this state governing corporations

organized for profit.

B. To the extent not modified by the provisions of this

article, title insurers shall be subject to and governed by the

other applicable provisions of this code.

C. No new insurance law hereafter enacted shall be deemed to

apply to title insurers unless they be expressly referred to

therein.

Oklahoma Statutes - Title 36. Insurance Page 1019

D. Notwithstanding anything to the contrary, the following

sections, acts and articles of the Insurance Code and related rules

of the Insurance Department shall apply to title insurers in

addition to those applicable to title insurers on November 1, 2008:

1. Section 311 of this title, Annual Financial Statements;

2. Section 615.2 of this title, Duty of Domestic Insurers and

Health Maintenance Organizations to Keep Biographical Information

Current;

3. Article 12, Unfair Practices and Frauds;

4. Article 12A-1, Unfair Claims Settlement Practices Act;

5. Article 16A, Subsidiaries of Insurers;

6. Article 18, Supervision and Conservatorship of Insurers Act;

and

7. Article 19, Rehabilitation and Liquidation.
Okla. Stat. tit. 36, § 36-6939 — OK Code / Title 36 / Section 36-6939
Report of Risk-based Capital (RBC) levels - Formula -
Status: in_force

Adjustment by Commissioner.

A. A domestic health maintenance organization shall, on or

prior to each March 1 filing date, prepare and submit to the

Insurance Commissioner a report of its Risk-based Capital (RBC)

levels as of the end of the calendar year just ended, in a form and

containing such information as is required by the RBC instructions.

In addition, a domestic health maintenance organization shall file

its RBC report:

1. With the National Association of Insurance Commissioners

(NAIC) in accordance with the RBC instructions; and

2. With the Insurance Commissioner in any state in which the

health maintenance organization is authorized to do business, if the

Insurance Commissioner has notified the health maintenance

organization of its request in writing, in which case the health

maintenance organization shall file its RBC report not later than

the later of:

a. fifteen (15) days from the receipt of notice to file

its RBC report with that state, or

b. the filing date.

B. A health maintenance organization’s RBC shall be determined

in accordance with the formula set forth in the RBC instructions.

The formula shall take the following into account and may adjust for

the covariance between, determined in each case by applying the

factors in the manner set forth in the RBC instructions:

1. Asset risk;

2. Credit risk;

3. Underwriting risk; and

4. All other business risks and such other relevant risks as

are set forth in the RBC instructions.

C. If a domestic health maintenance organization files an RBC

report that, in the judgment of the Commissioner, is inaccurate, the

Commissioner shall adjust the RBC report to correct the inaccuracy

and shall notify the health maintenance organization of the

adjustment. The notice shall contain a statement of the reason for

the adjustment. An RBC report as so adjusted is referred to as an

“adjusted RBC report”.
Okla. Stat. tit. 36, § 36-2104 — OK Code / Title 36 / Section 36-2104
Misleading names
Status: in_force

No such name shall be adopted by such corporation which is so

similar to any name already in use by any such existing corporation,

company or association, organized or doing business in this state,

as to be confusing or misleading.
Okla. Stat. tit. 36, § 36-310A.2 — OK Code / Title 36 / Section 36-310A.2
Material acquisitions or dispositions defined -
Status: in_force

Information to be disclosed in report.

A. No acquisitions or dispositions of assets need be reported

pursuant to Section 1 of this act if the acquisitions or

dispositions are not material. For purposes of this act, a material

acquisition, or the aggregate of any series of related acquisitions

during any thirty-day period, or disposition, or the aggregate of

any series of related dispositions during any thirty-day period, is

one that is nonrecurring and not in the ordinary course of business

and involves more than five percent (5%) of the reporting insurer's

total admitted assets as reported in its most recent annual

statement filed with the Insurance Commissioner pursuant to Section

311 of Title 36 of the Oklahoma Statutes.

B. 1. Asset acquisitions subject to Section 1 of this act

include every purchase, lease, exchange, merger, consolidation,

succession or any other acquisition.

2. Asset dispositions subject to this act include every sale,

lease, exchange, merger, consolidation, mortgage, hypothecation,

assignment whether for the benefit of creditors or otherwise,

abandonment, destruction or other disposition.

C. 1. The following information is required to be disclosed in

any report of a material acquisition or disposition of assets:

a. date of the transaction,

b. manner of acquisition or disposition,

c. description of the assets involved,

d. nature and amount of the consideration given or

received,

e. purpose of, or reason for, the transaction,

f. manner by which the amount of consideration was

determined, and

g. gain or loss recognized or realized as a result of the

transaction.

Oklahoma Statutes - Title 36. Insurance Page 70

2. Insurers are required to report material acquisitions and

dispositions on a nonconsolidated basis unless the insurer is part

of a consolidated group of insurers which utilizes a pooling

arrangement or one hundred percent (100%) reinsurance agreement that

affects the solvency and integrity of the insurer's reserves and the

insurer ceded substantially all of its direct and assumed business

to the pool. An insurer is deemed to have ceded substantially all

of its direct and assumed business to a pool if:

a. the insurer has less than One Million Dollars

($1,000,000.00) total direct plus assumed written

premiums during a calendar year that are not subject

to a pooling arrangement, and

b. the net income of the business not subject to the

pooling arrangement represents less than five percent

(5%) of the insurer's capital and surplus.
Okla. Stat. tit. 36, § 36-2504 — OK Code / Title 36 / Section 36-2504
Companies to which applicable; application of other laws;
Status: in_force

use of term "stipulated premium".

Any corporation, company or association issuing policies or

certificates promising money or other benefits to a member or

policyholder, or, upon his decease, to his legal representatives, or

to beneficiaries designated by him, which money or benefit is

derived from stipulated premiums collected in advance from its

members or policyholders, and from interest and other accumulations,

and wherein the money or other benefits so realized is applied to or

accumulated solely for the use and purposes of the corporation as

herein specified, and for the necessary expenses of the corporation,

and the prosecution and enlargement of its business and which shall

comply with all the provisions of this article, shall be deemed to

be engaged in the business of life insurance and accident and health

insurance upon the stipulated premium plan. It shall be unlawful

for any corporation, company or association not having complied with

the provisions of this article to use the term "stipulated premium"

in its application or contracts, or to print or write the same in

its policies, literature or advertisements.
Okla. Stat. tit. 36, § 36-2020.3 — OK Code / Title 36 / Section 36-2020.3
Use of Insurance Guaranty Association to advertise
Status: in_force

prohibited.

No person, including an insurer, insurance producer, or

affiliate of an insurer, shall publish, disseminate, circulate, or

place before the public, or cause, directly or indirectly, to be

published, disseminated, circulated or placed before the public, in

any newspaper, magazine or other publication, or in the form of a

notice, circular, pamphlet, letter or poster, or over any radio

station or television station, or in any other way, any

advertisement, which uses the existence of the Insurance Guaranty

Association of this state for the purpose of sales, solicitation, or

inducement to purchase any form of insurance covered by the Oklahoma

Property and Casualty Insurance Guaranty Association law. However,

this section does not apply to the Insurance Guaranty Association or

to any other entity which does not sell or solicit insurance.
Okla. Stat. tit. 36, § 36-6057.4 — OK Code / Title 36 / Section 36-6057.4
Rules
Status: in_force

The Insurance Commissioner shall promulgate rules for the

implementation and administration of the Health Care Freedom of

Choice Act.
Okla. Stat. tit. 36, § 36-4012 — OK Code / Title 36 / Section 36-4012
Payment of premiums
Status: in_force

There shall be a provision that all premiums after the first

shall be payable in advance, either at the home office of the

company or to an agent of the company, upon the delivery of a

receipt signed by one or more of the officers who shall be

designated in the policy.
Okla. Stat. tit. 36, § 36-1809 — OK Code / Title 36 / Section 36-1809
Venue
Status: in_force

A. Except for causes of action based upon terms of any

insurance policy issued by an insurer placed in conservatorship, any

action filed against such insurer or its conservator during such

conservatorship shall be filed in district court of Oklahoma County,

Oklahoma.

B. The conservator for such insurer may file suit in district

court of Oklahoma County, Oklahoma, against any person for the

purpose of preserving, protecting or recovering any assets or

property of such insurer, including claims or causes of action

belonging to or which may be asserted by such insurer.

C. Nothing in this act shall be construed as authorizing the

staying of litigation against the insurer.
Okla. Stat. tit. 36, § 36-6660 — OK Code / Title 36 / Section 36-6660
Promulgation of rules
Status: in_force

The Commissioner may promulgate rules consistent with the

provisions of the Vehicle Protection Product Act as are necessary to

implement them. Such rules shall include disclosures for the

benefit of the warranty holder, record-keeping, and procedures for

public complaints. These rules may also include the conditions

under which surplus lines insurers may be rejected for the purpose

of underwriting vehicle protection product warranty agreements.
Okla. Stat. tit. 36, § 36-6903 — OK Code / Title 36 / Section 36-6903
Certificate of authority - Application requirements -
Status: in_force

Submission to Insurance Commissioner - Rules.

A. Notwithstanding any law of this state to the contrary, any

person may apply to the Insurance Commissioner for a certificate of

authority to establish and operate a health maintenance organization

pursuant to the provisions of the Health Maintenance Organization

Act of 2003. No person shall establish or operate a health

maintenance organization in this state without obtaining a

certificate of authority pursuant to the provisions of this act. A

foreign corporation may qualify under this act, subject to its

registration to do business in this state as a foreign corporation

and compliance with all provisions of this act and other applicable

state laws. All certificates of authority shall be perpetual and

automatically renewed as of March 1 of each year, unless the health

Oklahoma Statutes - Title 36. Insurance Page 1382

maintenance organization fails to qualify for renewal pursuant to

the provisions of this act and any other applicable provisions of

Title 36 of the Oklahoma Statutes.

B. Any health maintenance organization that has previously

received a certificate of authority from the State Commissioner of

Health, but has not received a certificate of authority from the

Insurance Commissioner to operate as a health maintenance

organization as of the effective date of this act shall submit an

application for a certificate of authority, as provided in

subsection C of this section, by March 1, 2004. Each applicant may

continue to operate until such time as the Insurance Commissioner

acts upon the application if the applicant continues to comply with

the provisions of Title 63 of the Oklahoma Statutes, the rules

promulgated pursuant thereto by the State Board of Health as they

existed immediately prior to the effective date of this act, and

administrative orders entered by the State Commissioner of Health

prior to the effective date of this act. In the event that an

application is denied under the provisions of Section 4 of this act,

the applicant shall thereafter be treated as a health maintenance

organization whose certificate of authority has been revoked.

C. Each application for a certificate of authority shall be

verified by an officer or authorized representative of the

applicant, shall be in a form prescribed by the National Association

of Insurance Commissioners (NAIC), and shall be accompanied by the

following:

1. A copy of the applicant’s organizational documents

including, but not limited to, the articles of incorporation,

articles of association, partnership agreement, trust agreement, or

other applicable documents, and all amendments thereto;

2. A copy of the bylaws, rules, regulations or similar

document, if any, regulating the conduct of the internal affairs of

the applicant;

3. A list of the names, addresses, official positions and

biographical information, on forms acceptable to the NAIC, of the

persons who are to be responsible for the conduct of the affairs and

day-to-day operations of the applicant, including all members of the

board of directors, board of trustees, executive committee or other

governing board or committee, and the principal officers in the case

of a corporation, or the partners or members in the case of a

partnership or association;

4. A copy of any contract form made or to be made between any

class of providers and the health maintenance organization, and a

copy of any contract made or to be made between third party

administrators, marketing consultants or persons listed in paragraph

3 of this subsection and the health maintenance organization;

5. A copy of the form of evidence of coverage to be issued to

enrollees;

Oklahoma Statutes - Title 36. Insurance Page 1383

6. A copy of the form of group contract, if any, to be issued

to employers, unions, trustees or other organizations;

7. Financial statements showing the applicant’s assets,

liabilities and sources of financial support including, but not

limited to:

a. a copy of the applicant’s most recent, regular

certified financial statement,

b. an unaudited current financial statement, and

c. fully audited financial information as to the earnings

and financial condition of each person controlling a

domestic health maintenance organization pursuant to

the provisions of subsection (c) of Section 1651 of

Title 36 of the Oklahoma Statutes for the preceding

five (5) fiscal years for each such acquiring party,

or for such lesser period as such acquiring party and

any predecessors thereof shall have been in existence,

and similar unaudited information as of a date not

earlier than ninety (90) days prior to the filing of

the statement; provided, however, the Insurance

Commissioner shall have the discretionary ability to

waive the audit requirement based upon review of

substantially similar financial disclosure statements

submitted by the acquiring party;

8. A financial feasibility plan that includes detailed

enrollment projections, the methodology for determining premium

rates to be charged during the first twelve (12) months of

operations as certified by an actuary or other qualified person

acceptable to the Insurance Commissioner, a projection of balance

sheets, cash flow statements showing any capital expenditures,

purchase and sale of investments and deposits with the state, and

income and expense statements anticipated from the start of

operations until the organization has had net income for at least

one year, and a statement as to the sources of working capital as

well as any other sources of funding;

9. A power of attorney duly executed by the applicant, if not

domiciled in this state, appointing the Insurance Commissioner, his

or her successors in office and duly authorized deputies, as the

true and lawful attorney of the applicant in and for this state upon

whom all lawful process in any legal action or proceeding against

the health maintenance organization on a cause of action arising in

this state may be served;

10. A statement or map reasonably describing the geographic

area or areas to be served;

11. A description of the internal grievance procedures to be

utilized for the investigation and resolution of enrollee complaints

and grievances;

Oklahoma Statutes - Title 36. Insurance Page 1384

12. A description of the proposed quality assurance program,

including the formal organizational structure, methods for

developing criteria, procedures for comprehensive evaluation of the

quality of care rendered to enrollees, and processes to initiate

corrective action and reevaluation when deficiencies in provider or

organizational performance are identified;

13. A description of the procedures to be implemented to meet

the protection against insolvency provisions of Section 13 of this

act;

14. A list of the names, addresses, and license numbers of all

providers with which the health maintenance organization has

agreements;

15. Other information the Insurance Commissioner may require to

make the determinations required in Section 4 of this act; and

16. An original, along with copies, of all documents required

pursuant to the provisions of this subsection, with all required

fees.

D. 1. The Insurance Commissioner may promulgate rules for the

proper administration of this act and to require a health

maintenance organization, subsequent to receiving its certificate of

authority, to submit the information, modifications or amendments to

the items described in subsection C of this section to the Insurance

Commissioner, either for approval or for information only, prior to

the effectuation of the modification or amendment, or to require the

health maintenance organization to indicate the modifications to

both the State Commissioner of Health and the Insurance Commissioner

at the time of the next succeeding site visit or examination.

2. Any modification or amendment for which the Insurance

Commissioner’s approval is required shall be deemed approved unless

disapproved within thirty (30) days, provided that the Insurance

Commissioner may postpone the action for such further time, not

exceeding an additional sixty (60) days, as necessary for proper

consideration.
Okla. Stat. tit. 36, § 36-1219.5 — OK Code / Title 36 / Section 36-1219.5
Modification of existing or issuance of new coverage -
Status: in_force

Consent.

No insurer shall modify a group or individual policy of existing

coverage or issue new coverage under an accident and health

insurance policy unless written consent for such modification or

issuance is obtained from the policyholder. However, this section

shall not be construed as prohibiting a modification that is

provided for in an existing policy that has been filed and approved

by the Insurance Commissioner.
Okla. Stat. tit. 36, § 36-3602 — OK Code / Title 36 / Section 36-3602
"Policy" defined
Status: in_force

Oklahoma Statutes - Title 36. Insurance Page 769

"Policy" means contract of or agreement for effecting insurance,

or the certificate thereof, by whatever name called, and includes

all clauses, riders, endorsements and papers attached thereto and a

part thereof.
Okla. Stat. tit. 36, § 36-2907 — OK Code / Title 36 / Section 36-2907
Surplus funds required
Status: in_force

A. A domestic reciprocal insurer hereunder formed, if it has

otherwise complied with the provisions of this Code, may be

authorized to transact insurance if it deposits and maintains on

deposit with the State Treasurer, through the office of the

Insurance Commissioner, surplus funds as follows:

1. To transact property insurance, surplus funds of not less

than One Hundred Thousand Dollars ($100,000.00).

2. To transact vehicle insurance, surplus funds of not less

than One Hundred Fifty Thousand Dollars ($150,000.00).

B. A domestic reciprocal insurer may be authorized to transact

additional kinds of insurance if it has otherwise complied with the

provisions of this Code therefor and possesses and so maintains on

deposit surplus funds in amount equal to the minimum capital

required of a stock insurer for authority to transact a like

combination of kinds of insurance.
Okla. Stat. tit. 36, § 36-6570.58 — OK Code / Title 36 / Section 36-6570.58
Violations — Penalties
Status: in_force

A. 1. The Insurance Commissioner may, if the Commissioner

finds that any person or organization has violated the provisions of

this act, 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.

2. No penalty shall be imposed except upon written order of the

Commissioner or the appointed independent hearing examiner, stating

the findings of the Commissioner or the appointed independent

hearing examiner after the notice and opportunity for a hearing in

accordance with Article II of the Administrative Procedures Act.

B. 1. The Attorney General may, if the Attorney General finds

that a pharmacy benefits manager has violated the provisions of this

act, 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.

2. No penalty shall be imposed except upon written order of the

Attorney General or the appointed independent hearing examiner,

stating the findings of the Attorney General or the appointed

independent hearing examiner after the notice and opportunity for a

hearing in accordance with Article II of the Administrative

Procedures Act.
Okla. Stat. tit. 36, § 36-4527 — OK Code / Title 36 / Section 36-4527
Members of boards of directors – Conflict of interest –
Status: in_force

Definition of “affiliated”.

A. A member of a board of directors of a Health Insurance

Purchasing Group (HIPG) shall not serve as an employee or paid

consultant to the HIPG, but may receive reasonable reimbursement for

travel expenses for purposes of attending meetings of the board or

committees thereof.

B. An individual is not eligible to serve in a paid or unpaid

capacity on the board of directors of a HIPG or as an employee of

the HIPG, if the individual is employed by, represents in any

capacity, owns, or controls any ownership interest in an

organization from whom the HIPG receives contributions, rents, or

other funds not connected with a contract for coverage through the

HIPG.

C. An individual who is serving on a board of directors of a

HIPG as a representative described in subsection B of this section

shall not be employed by or affiliated with a HIPG health carrier.

For purposes of this subsection, the term "affiliated" does not

include membership in a health benefits plan or the obtaining of

health benefits coverage offered by a HIPG health carrier.
Okla. Stat. tit. 36, § 36-6470.21 — OK Code / Title 36 / Section 36-6470.21
Rules
Status: in_force

The Insurance Commissioner may promulgate and, from time to

time, amend rules and issue orders relating to captive insurance

companies as are necessary to enable the Insurance Commissioner to

carry out the provisions of the Oklahoma Captive Insurance Company

Act.
Okla. Stat. tit. 36, § 36-6926 — OK Code / Title 36 / Section 36-6926
Provisions of laws not applicable to health maintenance
Status: in_force

organizations.

A. Except as otherwise provided in the Health Maintenance

Organization Act of 2003 or unless expressly made applicable to

health maintenance organizations, provisions of the insurance law

and provisions of hospital or medical service corporation laws shall

not be applicable to a health maintenance organization granted a

certificate of authority under the provisions of this act. This

provision shall not apply to an insurer or hospital or medical

service corporation licensed and regulated pursuant to the insurance

law or the hospital or medical service corporation laws of this

state except with respect to its health maintenance organization

activities authorized and regulated pursuant to this act.

B. Solicitation of enrollees by a health maintenance

organization granted a certificate of authority, or its

representatives, shall not be construed to violate any provision of

law relating to solicitation or advertising by health professionals.

C. Any health maintenance organization authorized under this

act shall not be deemed to be practicing medicine and shall be

exempt from the provisions of Title 59 of the Oklahoma Statutes

related to the practice of medicine.
Okla. Stat. tit. 36, § 36-1532 — OK Code / Title 36 / Section 36-1532
Immunity for Commissioner and employees
Status: in_force

There shall be no liability on the part of, and no cause of

action shall arise against, the Insurance Commissioner or the

Insurance Department or its employees or agents for any action taken

by them in the performance of their powers and duties under this

act.
Okla. Stat. tit. 36, § 36-1694 — OK Code / Title 36 / Section 36-1694
Establishment of protected cells – Plan of operation
Status: in_force

A. A protected cell company may establish one or more protected

cells, with the prior written approval of the Insurance Commissioner

of a plan of operation or amendments to a plan of operation

submitted by the protected cell company with respect to each

protected cell. Upon the written approval of the Commissioner of

the plan of operation or amendments to a plan of operation, which

shall include, but not be limited to, the specific business

objectives and investment guidelines of the protected cell, the

protected cell company may, in accordance with the approved plan of

operations, attribute to the protected cell amounts both reflective

of insurance obligations with respect to its insurance business and

obligations relating to the insurance securitization and assets to

fund the obligations. Each protected cell of a protected cell

company shall have its own distinct name or designation, which shall

include the words "protected cell". The protected cell company

shall transfer all assets attributable to each protected cell to one

Oklahoma Statutes - Title 36. Insurance Page 515

or more separately established and identified protected cell

accounts bearing the name or designation of that protected cell.

Protected cell assets shall be held in the protected cell accounts

for the purpose of satisfying the obligations of that protected

cell.

B. All attributions of assets and liabilities between a

protected cell and the general account shall be in accordance with

the plan of operation approved by the Commissioner or shall be

otherwise approved by the Commissioner. Unless otherwise approved

by the Commissioner, no other attribution of assets or liabilities

shall be made by a protected cell company between the protected cell

company's general account and one or more of its protected cells.

Any attribution of assets and liabilities between the general

account and a protected cell, or from investors in the form of

principal on a debt instrument issued by a protected cell company in

connection with a protected cell company securitization, shall be in

cash or readily marketable securities with established market values

unless otherwise approved in advance in writing by the Commissioner.

C. The creation of a protected cell does not create, in respect

of that protected cell, a legal person separate from the protected

cell company. Amounts attributed to a protected cell under this

act, including assets transferred to a protected cell account, are

owned by the protected cell company and the protected cell company

may not be, nor hold itself out to be, a trustee with respect to

those protected cell assets of that protected cell account.

Notwithstanding the foregoing, the protected cell company may allow

for a security interest to attach to protected cell assets or a

protected cell account when in favor of a creditor of the protected

cell and otherwise allowed under applicable law.

D. Nothing in the Protected Cell Companies Act shall be

construed to prohibit the protected cell company from contracting

with or arranging for an investment advisor, commodity trading

advisor or other third party to manage the protected cell assets of

a protected cell, provided that all remuneration, expenses and other

compensation of the third-party advisor or manager are payable from

the protected cell assets of that protected cell and not from the

protected cell assets of other protected cells or the assets of the

protected cell company's general account. The contract shall

clearly reference the protected cell or cells for which the contract

has been arranged and shall contain a nonrecourse provision in favor

of the company that prohibits the contracting party from seeking

recourse against, or attaching the assets of the general account, or

the assets of another protected cell, to satisfy the obligations of

any one or more protected cells which are the subject of the

contract.

E. A protected cell company shall establish any administrative

and accounting procedures that are necessary to properly identify

Oklahoma Statutes - Title 36. Insurance Page 516

the one or more protected cells of the protected cell company and

the protected cell assets and protected cell liabilities

attributable to the protected cells. It shall be the duty of the

directors of a protected cell company to:

1. Keep protected cell assets and protected cell liabilities

separate and separately identifiable from the assets and liabilities

of the protected cell company's general account; and

2. Keep protected cell assets and protected cell liabilities

attributable to one protected cell separated and separately

identifiable from protected cell assets and protected cell

liabilities attributable to other protected cells.

Notwithstanding other provisions of this section, if this

section is violated, the remedy of tracing shall be applicable to

protected cell assets when commingled with protected cell assets of

other protected cells or the assets of the protected cell company's

general account. The remedy of tracing shall not be construed as an

exclusive remedy.

F. Unless otherwise approved by the Commissioner, the protected

cell company shall, when establishing a protected cell, attribute

the protected cell assets a value at least equal to the reserves and

other insurance liabilities attributed to that protected cell.
Okla. Stat. tit. 36, § 36-6060.30 — OK Code / Title 36 / Section 36-6060.30
Living organ donor protection
Status: in_force

No insurer in this state shall refuse to insure, or refuse to

continue to insure, or limit the amount, extent or kind of coverage

available for life insurance, disability insurance or long-term care

insurance to an individual, or charge an individual a different rate

for the same coverage solely because of his or her status as a

living organ donor. With respect to all other conditions, persons

who are living organ donors shall be subject to the same standards

of sound actuarial principles or actual or reasonably anticipated

experience as are persons who are not organ donors.
Okla. Stat. tit. 36, § 36-6053 — OK Code / Title 36 / Section 36-6053
Short title and application
Status: in_force

A. Sections 6053 through 6057 of this title and Sections 6

through 9 of this act shall be known and may be cited as the “Health

Care Freedom of Choice Act”.

B. The provisions of the Health Care Freedom of Choice Act

shall not apply to contracts executed with a preferred provider

organization to provide health care services for employer-sponsored

self-funded plans covered by the federal Employee Retirement Income

Security Act (ERISA).
Okla. Stat. tit. 36, § 36-3616.1 — OK Code / Title 36 / Section 36-3616.1
Coverage of trustor under property or motor vehicle
Status: in_force

liability policy.

A. Unless specifically excluded in a separate written

endorsement between the named insured and the insurer, every

property or motor vehicle liability policy issued in the state in

which the named insured is a trust created under the laws of this

state and the property or motor vehicle is owned by or is an asset

of the trust, the trustor of the trust shall also be considered a

named insured under the policy and shall be afforded coverage under

the policy.

B. Coverage of the trustor of a named insured trust as provided

for in subsection A of this section, shall be continuous and shall

not be limited unless specifically provided for in the policy.
Okla. Stat. tit. 36, § 36-332 — OK Code / Title 36 / Section 36-332
Commissioner examinations and investigations
Status: in_force

A. The Insurance Commissioner may conduct such examinations and

investigations of matters, within the scope of the authority of the

Commissioner, as the Commissioner may deem proper to secure

information useful in the lawful administration of the applicable

provisions of the Oklahoma Insurance Code and other statutes for

which the Commissioner has jurisdiction.

B. The Insurance Commissioner shall have the authority to

employ actuaries, statisticians, accountants, attorneys, auditors,

investigators or any other technicians as the Insurance Commissioner

may deem necessary or beneficial to examine any filings for rate

revisions made by insurers or advisory organizations and to examine

such records of the insurers or advisory organizations as may be

deemed appropriate in conjunction with the filing for a rate

revision in order to determine that the rates or other filings are

consistent with the terms, conditions, requirements and purposes of

the Insurance Code, and to verify, validate and investigate the

information upon which the insurer or advisory organization relies

to support such filing.

1. The Commissioner shall maintain a list of technicians

qualified pursuant to rules adopted by the Commissioner who are

proficient in the lines of insurance being reviewed. Upon request

of the Commissioner, the Commissioner shall employ the next

available technician in rotation on the list, proficient in the line

or lines of insurance being reviewed. The Commissioner may deviate

from the list when employing technicians for loss cost filings

pursuant to Section 901.5 of this title.

2. All reasonable expenses incurred in such filing review shall

be paid by the insurer or advisory organization making the filing.

C. The Commissioner shall employ examiners to ensure that the

rates which have been approved by or filed with the Commissioner are

the rates which are being used by the insurer or by the insurers

whose advisory organization has had a rate approval or rate filing.

1. Any insurer or company examined pursuant to the provisions

of this section shall pay all reasonable charges incurred in such

examination including the actual expense of the Commissioner and the

expenses and compensation of the authorized representative of the

Commissioner and the expense and compensation of assistants and

examiners employed therein.

2. All expenses incurred in such examination shall be verified

by affidavit and a copy shall be filed and kept in the office of the

Insurance Commissioner.
Okla. Stat. tit. 36, § 36-1424.17 — OK Code / Title 36 / Section 36-1424.17
Renumbered as § 1435.37 of this title by Laws 2001, c
Status: in_force

156, § 35, eff. Nov. 1, 2001.
Okla. Stat. tit. 36, § 36-4078 — OK Code / Title 36 / Section 36-4078
Applicability of Oklahoma Open Records Act and Oklahoma
Status: in_force

Open Meeting Act.

Nothing herein shall be construed to subject a charitable

organization to the Oklahoma Open Records Act or the Oklahoma Open

Meeting Act; provided, however, that the notices required by Section

4 of this act and the audited financial statements required by

Section 6 of this act which are in the possession of the Oklahoma

Insurance Department shall be deemed a "record" as defined in the

Oklahoma Open Records Act.
Okla. Stat. tit. 36, § 36-1115 — OK Code / Title 36 / Section 36-1115
Tax on surplus lines - Surplus lines insurer
Status: in_force

A. Where Oklahoma is the home state of the insured, every

person licensed pursuant to Section 1106 of this title shall collect

and pay as provided in this section a sum for premium tax based on

the total gross premiums charged in connection with any broker-

procured surplus lines insurance, less any return premiums, for

surplus lines insurance sold to the Oklahoma home-state insureds by

the surplus lines broker or licensee.

B. Where Oklahoma is the home state of the insured and the

insurance covers properties, risks or exposures located or to be

Oklahoma Statutes - Title 36. Insurance Page 256

performed both in and out of Oklahoma, the sum payable to the

Oklahoma Insurance Commissioner shall be computed based on an amount

equal to six percent (6%) of the total gross premiums whether the

properties, risks or exposures are located or to be performed inside

or outside Oklahoma. Any such unearned gross premium credited by

the state to the surplus lines broker or licensee shall be returned

to the policyholder by the broker or licensee. The surplus lines

licensee or broker is prohibited from rebating, for any reason, any

part of the tax.

C. Where Oklahoma is the home state of the insured, gross

premiums charged for independently procured insurance, less any

return premiums, are subject to a premium tax at the rate of six

percent (6%) payable to the Oklahoma Insurance Commissioner, whether

the properties, risks or exposures are located or to be performed

inside or outside Oklahoma.

D. The Insurance Commissioner is authorized, in the exercise of

his or her sole discretion and judgment, to participate in the

Nonadmitted Insurance Multi-State Agreement or any other multistate

agreement or compact with the same function and purpose for the

function of collecting and disbursing to reciprocal states any funds

collected pursuant to the Unauthorized Insurers and Surplus Lines

Insurance Act applicable to other properties, risks or exposures

located or to be performed outside of Oklahoma. Until such time as

the Insurance Commissioner may, while not being required to, join

such multistate agreement or compact, premium taxes relating to

Oklahoma home-state insureds shall continue to be paid and accounted

for by nonadmitted insurers through their surplus lines licensees

and brokers as provided in subsections A through C of this section.

E. When the surplus lines coverage of an Oklahoma home-state

insured covers properties, risks or exposures located only in

Oklahoma, the surplus lines licensee or broker or self-procuring

insured shall pay the surplus lines premium tax payable on such

Oklahoma-only risks solely to the Oklahoma Insurance Commissioner.

F. Should the Insurance Commissioner exercise his or her sole

discretion and judgment and decide to join the Nonadmitted Insurance

Multi-State Agreement or any other multistate agreement or compact

with the same function and purpose, the Insurance Commissioner is

authorized in such event to establish a uniform, statewide rate of

taxation applicable to lines of nonadmitted insurance. This rate

shall encompass all existing rates of taxation, fees and assessments

imposed by this state, pursuant to subsections A through C of this

section and the Insurance Commissioner shall document the method by

which the statewide rate is calculated. The Insurance Commissioner

is authorized to receive any monies obtained as premium tax received

through any multistate agreement he or she may in the future in his

or her discretion choose to join and then disburse such funds as

provided by the Insurance Code and other applicable Oklahoma law.

Oklahoma Statutes - Title 36. Insurance Page 257

G. Should the Insurance Commissioner exercise his or her sole

discretion and decide to join the Nonadmitted Insurance Multi-State

Agreement or any other multistate agreement or compact with the same

function and purpose, the Insurance Commissioner is authorized in

such circumstances to utilize or adopt any allocation schedule

included in the Nonadmitted Insurance Multi-State Agreement or any

other multistate agreement or compact the Insurance Commissioner may

enter in the exercise of his or her sole discretion and judgment

which schedule has the function and purpose of allocating risk and

computing the tax due on the portion of premium attributable to each

risk classification and to each state where properties, risks or

exposures are located.

H. Policies sold to federally recognized Indian tribes shall be

reported as provided in Section 1107 of this title; however, these

policies shall be exempt from the surplus line premium tax to the

extent that the Insurance Commissioner can identify that coverage is

for risks which are wholly owned by a tribe and located within

Indian Country, as defined in Section 1151 of Title 18 of the United

States Code.

I. The surplus line premium tax on insurance on motor transit

operations conducted between this and other states shall be paid on

the total premium charged on all surplus line insurance less:

1. The portion of the premium charged for operations in other

states taxing the premium of an insured where Oklahoma is the home

state; or

2. The premium for operations outside of this state of an

insured maintaining its headquarters office outside of this state

and branch office in this state.

J. Flood insurance policies where Oklahoma is the home state of

the insured and the insurance covers properties, risks or exposures

located in Oklahoma shall be exempt from the surplus line premium

tax.

K. Policies sold to any city or town in this state,

incorporated pursuant to law, or to any school district, as defined

in Section 1-108 of Title 70 of the Oklahoma Statutes, shall be

exempt from the surplus lines premium tax.
Okla. Stat. tit. 36, § 36-2651 — OK Code / Title 36 / Section 36-2651
Corporations authorized
Status: in_force

Oklahoma Statutes - Title 36. Insurance Page 694

Charitable and benevolent corporations may hereafter be

organized not for profit under the laws of the State of Oklahoma,

for the purpose of establishing, maintaining and operating a

nonprofit optometric service or indemnity plan, by complying with

the provisions of this article and shall be exempt from all other

provisions of the insurance laws and the general corporation laws of

this state, unless otherwise specifically provided herein.
Okla. Stat. tit. 36, § 36-636 — OK Code / Title 36 / Section 36-636
Use of words or descriptions causing beneficiaries to
Status: in_force

believe MEWA is insurance company.

No licensed MEWA shall use in its name, contracts, literature,

advertising in any medium, or any other printed matter any words or

descriptions which would cause beneficiaries or potential

beneficiaries to believe it is an insurance company.

Oklahoma Statutes - Title 36. Insurance Page 160
Okla. Stat. tit. 36, § 36-637 — OK Code / Title 36 / Section 36-637
Application for license
Status: in_force

Each MEWA shall file with the Insurance Commissioner an

application for a license on a form prescribed by the Commissioner

and signed under oath by officers of the association or the

administrator of the MEWA. The application shall include or have

attached the following:

1. A copy of any articles of incorporation, constitution and

bylaws of any association;

2. A list of the names, addresses and official capacities with

the MEWA of the individuals who will be responsible for the

management and conduct of the affairs of the MEWA, including all

trustees, officers and directors. Such individuals shall fully

disclose the extent and nature of any contracts or arrangements

between them and the MEWA, including possible conflicts of interest;

3. A copy of the articles of incorporation, bylaws or trust

agreement that governs the operation of the MEWA;

4. A copy of the policy, contract, certificate, summary plan

description or other evidence of the benefits and coverages provided

to covered employees, including a table of the rates charged or

proposed to be charged for each form of such contract. A qualified

actuary shall certify that:

a. the rates are neither inadequate, nor excessive, nor

unfairly discriminatory,

b. the rates are appropriate for the classes of risks for

which that have been computed, and

c. an adequate description of the rating methodology has

been filed with the Commissioner and such methodology

follows consistent and equitable actuarial principles.

For purposes of this section and Section 639 of this title, a

"qualified actuary" is an actuary who is a Fellow of the Society of

Actuaries (FSA), a member of the American Academy of Actuaries, or

an Enrolled Actuary under the Employee Retirement Income Security

Act of 1974, 29 U.S.C., Section 1001 et seq., and has experience in

establishing rates for a self-insured trust and health services

being provided;

5. Any administrator retained by the MEWA must be a licensed

third-party administrator. The MEWA must provide proof of a

fidelity bond which shall protect against acts of fraud or

dishonesty in servicing the MEWA, covering each person responsible

for servicing the MEWA, in an amount equal to the greater of ten

percent (10%) of the contributions received by the MEWA or ten

percent (10%) of the benefits paid, during the preceding calendar

year, with a minimum amount requirement of Twenty Thousand Dollars

($20,000.00) and a maximum amount requirement of Five Hundred

Thousand Dollars ($500,000.00);

Oklahoma Statutes - Title 36. Insurance Page 161

6. A copy of the MEWA's stop-loss agreement. The stop-loss

insurance agreement must be issued by an insurer authorized to do

business in this state and must provide both specific and aggregate

coverage with an aggregate retention of no more than one hundred

twenty-five percent (125%) of the expected claims for the next plan

year and a specific retention amount as annually indicated in the

actuarial opinion;

7. In the initial application, a feasibility study, made by a

qualified actuary with an opinion acceptable to the Commissioner,

that addresses market potential, market penetration, market

competition, operating expenses, gross revenues, net income, total

assets and liabilities, cash flow and other items as the

Commissioner requires. The study shall be for the greater of three

(3) years or until the MEWA has been projected to be profitable for

twelve (12) consecutive months. The study must show that the MEWA

would not, at any month end of the projection period, have less than

ninety percent (90%) of the reserves as required by a qualified

actuary;

8. A copy of an audited financial statement of the MEWA

prepared by an independent licensed certified public accountant;

9. A copy of every contract between the MEWA and any

administrator or service company; and

10. Such additional information as the Commissioner may

reasonably require.
Okla. Stat. tit. 36, § 36-2021 — OK Code / Title 36 / Section 36-2021
Short title
Status: in_force

This act shall be known and may be cited as the Oklahoma Life

and Health Insurance Guaranty Association Act.
Okla. Stat. tit. 36, § 36-2205 — OK Code / Title 36 / Section 36-2205
Trust instrument – Mandatory provisions
Status: in_force

In addition to the requirements of Section 60 of this act, the

trust instrument shall provide:

1. That there shall be a minimum period during which any

insured must participate in the trust;

2. That all insureds shall execute a participation agreement;

3. That the trustee shall be an individual or an institution

such as a bank, insurance company or other appropriate entity;

4. A preliminary assessment of all insureds for initial

expenses necessary to commence operation;

5. For establishment of necessary facilities;

6. Details of the management of the trust;

7. Procedures for assessment of all insureds to defray losses

and expenses;

8. Description of commission arrangements;

9. Description of reasonable and objective underwriting

standards;

10. Procedures for and description of acceptance and cession of

reinsurance;

11. Procedures for and descriptions of appointment of servicing

carriers or other servicing arrangements; and

12. Procedures for determining amounts of insurance to be

provided by the trust.
Okla. Stat. tit. 36, § 36-6103.11 — OK Code / Title 36 / Section 36-6103.11
Discretion to proceed under certain provisions
Status: in_force

The Insurance Commissioner may proceed solely under the

provisions of Sections 6103.1 through 6103.11 of this title or under

said provisions in conjunction with other applicable law.
Okla. Stat. tit. 36, § 36-306.1 — OK Code / Title 36 / Section 36-306.1
Availability of data necessary for review –
Status: in_force

Confidentiality – Sharing of data - Definitions.

A. A supervisory agency shall make available to a requesting

agency any data obtained or generated by, and in the possession of,

the supervisory agency and that the requesting agency deems

necessary for review in connection with the supervision of any

person over which the requesting agency has direct supervisory

authority. However, the requested data must relate to the person,

or an affiliate of the person, over which the requesting agency has

direct supervisory authority. An agency has direct supervisory

authority over a person if such authority is specifically provided

by statute, or the agency granted the person’s charter, license, or

registration, or otherwise granted permission for the person to

conduct its business in this state.

Oklahoma Statutes - Title 36. Insurance Page 56

B. When a requesting agency and a federal regulatory agency or

self-regulatory association have concurrent jurisdiction over a

person, a requesting agency may share with such agency or

association data received from a supervisory agency. However, the

federal regulatory agency or self-regulatory association must return

such shared data to the requesting agency unless the federal

regulatory agency or self-regulatory association has obtained

approval from the supervisory agency to retain the data. The term

“federal regulatory agency” shall not include law enforcement

agencies.

C. 1. Notwithstanding any other statute, rule, or policy

governing or relating to records of the requesting agency, all data

received by a requesting agency from a supervisory agency shall be

and remain confidential and not open to public inspection, subpoena,

or any other form of disclosure while in the possession of the

requesting agency. Any request for inspection, subpoena, or other

form of disclosure must be directed at the supervisory agency from

which the data originated and disclosure thereof shall be subject to

the laws, rules, and policies governing or relating to records of

the supervisory agency.

2. The provisions of data by a supervisory agency to a

requesting agency under this section shall not constitute a waiver

of, or otherwise affect, any privilege or claim of confidentiality

that a supervisory agency may claim with respect to such data under

any federal laws or laws of this state.

D. A supervisory agency is not required to share original

documents with a requesting agency. A requesting agency shall

reimburse the supervisory agency for costs associated with providing

copies of data to the requesting agency.

E. Nothing in the Oklahoma Financial Privacy Act, Sections 2201

through 2206 of Title 6 of the Oklahoma Statutes, shall prohibit the

sharing of data as described in this section. Additionally, neither

a supervisory agency nor requesting agency shall be required to

follow any procedure described in the Oklahoma Financial Privacy Act

when sharing data as described in this section.

F. As used in this section:

1. “Affiliate” shall mean any person that controls, is

controlled by, or is under common control with another person. A

person shall be deemed to have “control” over any person if the

person:

a. directly or indirectly or acting through one or more

other persons owns, controls, or has power to vote ten

percent (10%) or more of any class of voting

securities of the other person, or

b. the person controls in any manner the election,

appointment, or designation of a majority of the

Oklahoma Statutes - Title 36. Insurance Page 57

directors, trustees, or other managing officers of the

person;

2. “Data” shall mean copies of any documents, reports,

examination reports, letters, correspondence, orders, stipulations,

memorandums of understanding, agreements, or any other records not

open for public inspection generated by a supervisory agency or

obtained by a supervisory agency from the person it supervises,

whether in paper or electronic format. However, “data” shall not

include records that a requesting agency receives from a supervisory

agency pursuant to this section;

3. “Requesting agency” shall mean, as applicable, the Oklahoma

State Banking Department, the Oklahoma Insurance Department, or the

Oklahoma Department of Securities, that requests from a supervisory

agency data relating to a person over which the requesting agency

does not have direct supervisory authority;

4. “Supervision” shall mean any examination, assessment, order,

stipulation, agreement, report, memorandum of understanding, or

other regulatory matter or process that a requesting agency is

authorized to perform in relation to a person; and

5. “Supervisory agency” shall mean, as applicable, the Oklahoma

State Banking Department, the Oklahoma Insurance Department, or the

Oklahoma Department of Securities, that maintains data relating to a

person over which the agency has direct supervisory authority.
Okla. Stat. tit. 36, § 36-1673 — OK Code / Title 36 / Section 36-1673
Applicability of Act
Status: in_force

The Business Transacted with Producer Controlled Insurer Act

shall apply to licensed insurers as defined in Section 14 of this

act, either domiciled in this state or domiciled in a state that is

not an accredited state having in effect a substantially similar

law. All provisions of Article 16A of the Insurance Code, to the

extent they are not superseded by this act, shall continue to apply

to all parties within holding company systems subject to this act.
Okla. Stat. tit. 36, § 36-6801 — OK Code / Title 36 / Section 36-6801
Short title
Status: in_force

This act shall be known and may be cited as the "Oklahoma

Telemedicine Act".

Oklahoma Statutes - Title 36. Insurance Page 1363
Okla. Stat. tit. 36, § 36-1685 — OK Code / Title 36 / Section 36-1685
Notice
Status: in_force

A. Whenever notice is required to be given under the Insurance

Business Transfer Act and except as otherwise permitted or directed

by the court or the Insurance Commissioner, the notice shall be

transmitted within forty-five (45) days of the event triggering the

requirement:

1. By first-class mail, postage prepaid to the chief insurance

regulator in each jurisdiction in which the transferring insurer:

a. holds or has ever held a certificate of authority, and

b. in which policies that are part of the subject

business were issued or policyholders currently

reside;

2. By certified first-class mail, postage prepaid to the

National Conference of Insurance Guaranty Funds, the National

Organization of Life and Health Insurance Guaranty Associations and

all state insurance guaranty associations for the states in which

the transferring insurer:

a. holds or has ever held a certificate of authority, and

b. in which policies that are part of the subject

business were issued or policyholders currently

reside;

3. To reinsurers of the transferring insurer pursuant to the

notice provisions of the reinsurance agreements applicable to the

policies that are part of the subject business, or where an

agreement has no provision for notice, by internationally recognized

delivery service;

4. By United States mail, first-class postage prepaid, or by

any internationally recognized delivery service, to all

policyholders holding policies that are part of the subject

business, at their last-known address as indicated by the records of

Oklahoma Statutes - Title 36. Insurance Page 503

the transferring insurer or to the address to which premium notices

or other policy documents are sent. Notice shall also be sent to

the transferring insurer's agents or brokers of record on the

subject business;

5. By electronic means to any person or entity identified in

subsection A of this section who provided consent to notice or

service in an agreement included in or related to the subject

business or otherwise consents in writing to receiving service by

electronic mail and provides instructions for making the electronic

notice or service. For the purposes of this subsection, "electronic

means" shall include communications by facsimile or electronic mail;

and

6. By publication in a newspaper of general circulation in the

state in which the transferring insurer has its principal place of

business and in such other publications that the Commissioner

requires.

B. If notice is given in accordance with this section, any

information or orders under this act shall be conclusive with

respect to all intended recipients of the notice, whether or not the

intended recipients receive actual notice.

C. Where this act requires that the applicant or petitioner

provide notice, but a receiver of the insurer has been appointed

pursuant to the laws of the insurer's home jurisdiction, the

receiver shall provide the required notice.
Okla. Stat. tit. 36, § 36-1671 — OK Code / Title 36 / Section 36-1671
Short title
Status: in_force

Sections 13 through 19 of this act may be cited as the "Business

Transacted with Producer Controlled Insurer Act".
Okla. Stat. tit. 36, § 36-962 — OK Code / Title 36 / Section 36-962
Premium discount or rate reduction for resistance to
Status: in_force

tornado or other wind events for retrofit properties.

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

provide a premium discount or insurance rate reduction in an amount

and manner as established in subsection D of this section and

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

that the premium discount or rate reduction is actuarially justified

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

can be attributed to the construction standards set forth in

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

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

owner who retrofits his or her insurable property located in the

State of Oklahoma to resist loss due to tornado or other

catastrophic windstorm events. Insurance companies shall be

required to offer a premium discount or rate reduction only when the

insurer has deemed the adjustments to be actuarially justified and

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

be attributed to the construction standards set forth in subsection

B of this section. In addition, insurance companies may also offer

additional adjustments in deductible, other risk differentials, or a

combination thereof, collectively referred to as other adjustments.

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

adjustment provided in this section, an insurable property shall be

retrofitted to the FORTIFIED Home High Wind and Hail Standards, as

may from time to time be adopted by the Institute for Business and

Home Safety (IBHS). Wind-Zone-3-HUD-Code manufactured homes

installed on a permanent foundation and retrofitted as defined in

the FORTIFIED Home High Wind and Hail Standards, as may from time to

time be adopted by the Institute for Business and Home Safety, shall

be eligible for the premium discount or rate reduction provided in

this section. An insurable property shall be certified as

conforming to FORTIFIED Home High Wind and Hail Standards only after

evaluation and certification by an evaluator certified pursuant to

the FORTIFIED Home High Wind and Hail Standards.

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

rate reduction, or other adjustment pursuant to this section shall

maintain sufficient certification records and construction records

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

the FORTIFIED Home High Wind and Hail Standards as provided in

subsection B of this section, receipts from contractors, and

receipts for materials. The records shall be subject to audit by

the Insurance Commissioner, or his or her representatives, and

copies of any such records shall be presented to the insurer or

Oklahoma Statutes - Title 36. Insurance Page 222

potential insurer of a property owner before the premium discount,

rate reduction, or other adjustment becomes effective for the

insurable property.

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

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

submit rates and rating plans to the Commissioner pursuant to

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

plans certified by their actuary as actuarially justified providing

for the premium discounts or rate reductions described in this

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

shall only apply to policies that provide wind or hail coverage and

to that portion of the premium for wind or hail coverage. A premium

discount, rate reduction, or other adjustment shall apply

exclusively to the wind and hail premium applicable to improved

insurable property. If an insurer already offers an actuarially

justified hail resistance discount, that hail-related discount shall

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

to hail-related discounts or rate reductions and no additional hail-Oklahoma Statutes - Title 36. Insurance Page 6um

discount, rate reduction, or other adjustment shall apply

exclusively to the wind and hail premium applicable to improved

insurable property. If an insurer already offers an actuarially

justified hail resistance discount, that hail-related discount shall

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

to hail-related discounts or rate reductions and no additional hail-

related discount or rate reduction shall be required. If an insurer

already offers an actuarially justified discount for IBHS FORTIFIED

Home standards, that discount shall be deemed as having met the

requirements of this act as it pertains to wind-related discounts or

rate reductions and no additional wind-related discount or rate

reduction shall be required. Insurers shall apply the premium

discount, rate reduction, or other adjustment to the wind premium at

the policy renewal that follows the submission of the certification

to the insurer. At the time of a policy renewal for which a premium

discount, rate reduction, or other adjustment has previously been

made, the insurer may request documentation or recertification that

the fortified standards as described in subsection C of this section

continue to be met. In addition to the requirements of this

section, an insurer may voluntarily offer any other mitigation

adjustment that the insurer deems appropriate.
Okla. Stat. tit. 36, § 36-3611.1 — OK Code / Title 36 / Section 36-3611.1
Medicare supplement policies - Definitions -
Status: in_force

Regulations - Issuance - Return and refund - Examination of

insurers.

A. As used in this section:

1. "Commissioner" means the Commissioner of Insurance;

2. "Medicare supplement policy" means a group or individual

policy of accident and health insurance, or a subscriber contract of

a nonprofit hospital service and medical indemnity corporation or a

health maintenance organization which is advertised, marketed or

designed primarily as a supplement to reimbursements under Medicare

Oklahoma Statutes - Title 36. Insurance Page 779

for the hospital, medical or surgical expenses of persons eligible

for Medicare. Such term does not include:

a. a policy or contract of one or more employers or labor

organizations, or of the trustees of a fund

established by one or more employers or labor

organizations, or combination thereof, for employees

or former employees, or combination thereof, or for

members or former members, or combination thereof, of

the labor organizations, or

b. a policy or contract of any professional, trade or

occupational association for its members or former or

retired members, or combination thereof, if such

association:

(1) is composed of individuals all of whom are

actively engaged in the same profession, trade or

occupation,

(2) has been maintained in good faith for purposes

other than obtaining insurance, and

(3) has been in existence for at least two (2) years

prior to the date of its initial offering of such

policy or plan to its members, or

c. individual policies or contracts issued pursuant to a

conversion privilege under a policy or contract of

group or individual insurance; and

3. "Direct response Medicare supplement policy" means a policy

of insurance which is advertised, marketed or designed primarily as

a supplement to reimbursements under Medicare for the hospital,

medical or surgical expenses of persons eligible for Medicare issued

as a result of solicitation of individual insureds by mail or by

mass media advertising.

B. The Commissioner shall issue reasonable regulations to

establish minimum standards for benefit claims payment, marketing

practices, compensation arrangements, and reporting practices for

Medicare supplement policies. The Commissioner shall issue

reasonable regulations to provide for an open enrollment period for

those persons who qualify as disabled pursuant to federal Medicare

guidelines.

C. A Medicare supplement policy may not deny a claim for losses

incurred more than six (6) months from the effective date of

coverage for a preexisting condition. The policy may not define a

preexisting condition more restrictively than "a condition for which

medical advice was given or treatment was recommended by or received

from a physician within six (6) months before the effective date of

coverage".

D. Any premium rate filing for a Medicare supplement policy

shall be filed with and approved by the Insurance Commissioner and

communicated to the policyholder at least forty-five (45) days prior

Oklahoma Statutes - Title 36. Insurance Page 780

to the effective date of a premium rate increase. Such premium

increases shall be implemented no more than once per year.

E. A Medicare supplement policy shall be expected to return to

the policyholder benefits which are reasonable in relation to the

premium charged. The Commissioner shall issue regulations to

establish minimum standards for loss ratios of Medicare supplement

policies on the basis of incurred claims experience, or incurred

health care expenses where coverage is provided by a health

maintenance organization on a service rather than reimbursement

basis, and earned premiums for the period of coverage for which

rates are computed and in accordance with accepted actuarial

principles and practices.

F. 1. No Medicare supplement policy or certificate issued

pursuant to a group Medicare supplement policy shall be delivered or

issued for delivery in this state unless an outline of coverage is

provided to the applicant at the time application is made.

2. The Commissioner shall prescribe by regulation the contents

and a standard form of an informational brochure for persons

eligible for Medicare which is intended to improve the buyer's

ability to select the most appropriate coverage and improve the

buyer's understanding of Medicare. The Commissioner may require by

regulation that the informational brochure be provided with the

outline of coverage to any prospective insureds eligible for

Medicare. With respect to direct response policies, the

Commissioner may require that the prescribed brochure and outline of

coverage be provided upon request to any prospective insureds

eligible for Medicare, but in no event later than the time of policy

delivery.

3. The Commissioner may require notice provisions, designed to

inform prospective insureds that particular insurance coverages are

not Medicare supplement coverages, for all accident and health

insurance policies sold to persons eligible for Medicare by reason

of age, other than:

a. Medicare supplement policies,

b. disability income policies,

c. basic, catastrophic, or major medical expense

policies,

d. single premium, nonrenewable policies, or

e. other policies defined by regulation of the

Commissioner.

4. The Commissioner may adopt from time to time, such

reasonable regulations as are necessary to conform Medicare

supplement policies and certificates to the requirements of federal

law and regulations promulgated thereunder, including but not

limited to:

a. requiring refunds or credits if the policies or

certificates do not meet loss ratio requirements,

Oklahoma Statutes - Title 36. Insurance Page 781

b. establishing a uniform methodology for calculating and

reporting loss ratios,

c. assuring public access to policies, premiums and loss

ratio information of issuers of Medicare supplement

insurance, and

d. establishing a policy for holding public hearings

prior to approval of premium increases.

G. Medicare supplement policies or certificates shall have a

notice prominently printed on the first page of the policy or

certificate, or attached thereto, stating that the applicant shall

have the right to return the policy or certificate within thirty

(30) days of its delivery and to have the premium refunded if, after

examination of the policy or certificate, the applicant is not

satisfied for any reason. A direct response policy issued to

persons eligible for Medicare shall have a notice prominently

printed on the first page, or attached thereto, stating that the

applicant shall have the right to return the policy or certificate

within thirty (30) days of its delivery and to have the premium

refunded if, after examination, the applicant is not satisfied for

any reason.

H. The Insurance Commissioner shall have the authority to

employ actuaries, statisticians, accountants, auditors,

investigators, or any other technicians as the Insurance

Commissioner may deem necessary or beneficial to examine any

Medicare supplement filings made by insurers or rating organizations

and to examine such records of the insurers or rating organizations

as may be deemed appropriate in conjunction with the Medicare

supplement filing in order to determine that the rates or other

filings are consistent with the terms, conditions, requirements and

purposes of the Insurance Code, and to verify, validate and

investigate the information upon which the insurer or rating

organization relies to support such filing.

1. The Commissioner shall maintain a list of technicians who

are proficient in the line of Medicare supplement insurance. If the

Commissioner determines that it is necessary to utilize the services

of such a technician, the Commissioner shall employ the next

available technician in rotation on the list.

2. All reasonable expenses incurred in such filing review shall

be paid by the insurer or rating organization making the filing.
Okla. Stat. tit. 36, § 36-6753 — OK Code / Title 36 / Section 36-6753
Home service contracts - Requirements for sale - Provider
Status: in_force

responsibilities.

A. Home service contracts shall not be issued, sold or offered

for sale in this state unless the provider has:

1. Provided a receipt for, or other written evidence of, the

purchase of the home service contract to the contract holder; and

2. Provided a copy of the home service contract to the service

contract holder within a reasonable period of time from the date of

purchase.

B. Each provider of home service contracts sold in this state

shall file a registration with, and on a form prescribed by, the

Insurance Commissioner consisting of their name, full corporate

physical street address, telephone number, contact person and a

designated person in this state for service of process. Each

provider shall pay to the Commissioner a fee in the amount of One

Thousand Two Hundred Dollars ($1,200.00) upon initial registration

and every three (3) years thereafter. Each provider shall pay to

the Commissioner an Antifraud Assessment Fee of Two Thousand Two

Hundred Fifty Dollars ($2,250.00) upon initial registration and

every three (3) years thereafter. The registration need only be

updated by written notification to the Commissioner if material

changes occur in the registration on file. A proper registration is

de facto a license to conduct business in Oklahoma and may be

suspended as provided in Section 6755 of this title. Fees received

from home service contract providers shall not be subject to any

premium tax, but shall be subject to an administrative fee equal to

two percent (2%) of the gross fees received on the sale of all home

service contracts issued in this state during the preceding calendar

quarter. The fees shall be paid quarterly to the Commissioner and

submitted along with a report on a form prescribed by the

Commissioner. However, service contract providers may elect to pay

an annual administrative fee of Three Thousand Dollars ($3,000.00)

in lieu of the two-percent administrative fee, if the provider

maintains an insurance policy or policies as provided in paragraph 3

of subsection C of this section.

C. In order to assure the faithful performance of a provider's

obligations to its contract holders, each provider shall be

responsible for complying with the requirements of paragraph 1, 2 or

3 of this subsection:

1. a. maintain a funded reserve account for its obligations

under its contracts issued and outstanding in this

state. The reserves shall not be less than forty

percent (40%) of gross consideration received, less

claims paid, on the sale of the service contract for

all in-force contracts. The reserve account shall be

Oklahoma Statutes - Title 36. Insurance Page 1358

subject to examination and review by the Commissioner,

and

b. place in trust with the Commissioner a financial

security deposit, having a value of not less than five

percent (5%) of the gross consideration received, less

claims paid, on the sale of the service contract for

all service contracts issued and in force, but not

less than Twenty-five Thousand Dollars ($25,000.00),

consisting of one of the following:

(1) a surety bond issued by an authorized surety,

(2) securities of the type eligible for deposit by

authorized insurers in this state,

(3) a letter of credit issued by a qualified

financial institution, or

(4) another form of security prescribed by rule

promulgated by the Commissioner;

2. a. maintain, or together with its parent company

maintain, a net worth or stockholders' equity of

Twenty-five Million Dollars ($25,000,000.00),

excluding goodwill, intangible assets, customer lists

and affiliated receivables, and

b. upon request, provide the Commissioner with a copy of

the provider's or the provider's parent company's most

recent Form 10-K or Form 20-F filed with the

Securities and Exchange Commission (SEC) within the

last calendar year, or if the company does not file

with the SEC, a copy of the company's financial

statements, which shows a net worth of the provider or

its parent company of at least Twenty-five Million

Dollars ($25,000,000.00) based upon Generally Accepted

Accounting Principles (GAAP) accounting standards. If

the provider's parent company's Form 10-K, Form 20-F,

or financial statements are filed to meet the

provider's financial stability requirement, then the

parent company shall agree to guarantee the

obligations of the provider relating to service

contracts sold by the provider in this state; or

3. Purchase one or more insurance policies which collectively

cover one hundred percent (100%) of its claim exposure. The

insurance shall be obtained from one or more insurers that are

licensed, registered, or otherwise authorized to do business in this

state, that is rated B++ or better by A.M. Best Company, Inc., and

that meets the requirements of subsection D of this section. For

the purposes of this paragraph, the insurance policy or policies

shall contain the following provisions:

a. in the event that the provider is unable to fulfill

its obligation under contracts issued in this state

Oklahoma Statutes - Title 36. Insurance Page 1359

for any reason including insolvency, bankruptcy, or

dissolution, the insurer shall pay losses and unearned

premiums under such plans directly to the person

making the claim under the contract,

b. the insurer issuing the insurance policy shall assume

full responsibility for the administration of claims

in the event of the inability of the provider to do

so, and

c. the policy shall not be canceled or not renewed by

either the insurer or the provider unless sixty (60)

days' written notice thereof has been given to the

Commissioner by the insurer before the date of such

cancellation or nonrenewal.

D. Each insurer providing an insurance policy used to satisfy

the financial responsibility requirements of paragraph 3 of

subsection C of this section shall meet one of the following

standards:

1. The insurer shall, at the time the policy is filed with the

Commissioner, and continuously thereafter:

a. maintain surplus as to policyholders and paid-in

capital of at least Fifteen Million Dollars

($15,000,000.00), and

b. annually file copies of the audited financial

statements of the insurer, its National Association of

Insurance Commissioners (NAIC) Annual Statement, and

the actuarial certification required by and filed in

the state of domicile of the insurer; or

2. The insurer shall, at the time the policy is filed with the

Commissioner, and continuously thereafter:

a. maintain surplus as to policyholders and paid-in

capital of less than Fifteen Million Dollars

($15,000,000.00),

b. demonstrate to the satisfaction of the Commissioner

that the company maintains a ratio of net written

premiums, wherever written, to surplus as to

policyholders and paid-in capital of not greater than

three to one, and

c. annually file copies of the audited financial

statements of the insurer, its NAIC Annual Statement,

and the actuarial certification required by and filed

in the state of domicile of the insurer.

E. Except for the registration requirements in subsection B of

this section, providers, administrators and other persons marketing,

selling or offering to sell home service contracts are exempt from

any licensing requirements of this state and shall not be subject to

other registration information or security requirements. Home

service contract providers as defined in Section 6752 of this title

Oklahoma Statutes - Title 36. Insurance Page 1360

and properly registered under this law are exempt from any treatment

pursuant to the Service Warranty Act. Home service contract

providers applying for registration under the Oklahoma Home Service

Contract Act that have not been registered in the preceding twelve

(12) months under the Oklahoma Home Service Contract Act may be

subject to a thirty-day prior review before their registration is

deemed complete. Said applications shall be deemed complete after

thirty (30) days unless the Commissioner takes action in that period

under Section 6755 of this title, for cause shown, to suspend their

registration.

F. The marketing, sale, offering for sale, issuance, making,

proposing to make and administration of home service contracts by

providers and related service contract sellers, administrators, and

other persons including but not limited to real estate licensees,

shall be exempt from all other provisions of the Insurance Code.
Okla. Stat. tit. 36, § 36-5107 — OK Code / Title 36 / Section 36-5107
Contract - Minimum provisions
Status: in_force

Transactions between an RM and the reinsurer the RM represents

in such capacity shall be entered into only pursuant to a written

contract, specifying the responsibilities of each party, which shall

be approved by the board of directors of the reinsurer. At least

thirty (30) days before such insurer assumes or cedes business

through such producer, a true copy of the approved contract shall be

filed with the Commissioner for approval. The contract shall, at a

minimum, contain provisions that:

1. The reinsurer may terminate the contract for cause upon

written notice to the RM. The reinsurer may suspend the authority

of the RM to assume or cede business during the pendency of any

dispute regarding the cause for termination;

2. The RM shall render accounts to the reinsurer accurately

detailing all material transactions, including information necessary

to support all commissions, charges and other fees received by, or

owing to the RM, and remit all funds due under the contract to the

reinsurer on not less than a monthly basis;

3. All funds collected for the account of the reinsurer shall

be held by the RM in a fiduciary capacity in a bank which is a

qualified U.S. financial institution. The RM may retain no more

than three (3) months estimated claims payments and allocated loss

adjustment expenses. The RM shall maintain a separate bank account

for each reinsurer that the RM represents;

4. For at least ten (10) years after expiration of each

contract of reinsurance transacted by the RM, the RM shall keep a

complete record for each transaction showing:

a. the type of contract, limits, underwriting

restrictions, classes or risks and territory,

b. period of coverage, including effective and expiration

dates, cancellation provisions and notice required of

cancellation, and disposition of outstanding reserves

on covered risks,

c. reporting and settlement requirements of balances,

d. rate used to compute the reinsurance premium,

e. names and addresses of reinsurers,

f. rates of all reinsurance commissions, including the

commissions on any retrocessions handled by the RM,

g. related correspondence and memoranda,

h. proof of placement,

i. details regarding retrocessions handled by the RM, as

permitted by Section 30 of this act, including the

identity of retrocessionaires and percentage of each

contract assumed or ceded,

j. financial records, including but not limited to,

premium and loss accounts, and

Oklahoma Statutes - Title 36. Insurance Page 1031

k. if the RM places a reinsurance contract on behalf of a

ceding insurer:

(1) directly from any assuming reinsurer, written

evidence that the assuming reinsurer has agreed

to assume the risk, or

(2) if placed through a representative of the

assuming reinsurer, other than an employee,

written evidence that such reinsurer has

delegated binding authority to the

representative;

5. The reinsurer shall have access and the right to copy all

accounts and records maintained by the RM related to its business in

a form usable by the reinsurer;

6. The contract shall not be assigned in whole or in part by

the RM;

7. The RM shall comply with the written underwriting and rating

standards established by the insurer for the acceptance, rejection,

or cession of all risks;

8. Set forth the rates, terms, and purposes of commissions,

charges, and other fees which the RM may levy against the reinsurer;

9. If the contract permits the RM to settle claims on behalf of

the reinsurer:

a. all claims shall be reported to the reinsurer in a

timely manner,

b. a copy of the claim file shall be sent to the

reinsurer at the request of the reinsurer as soon as

it becomes known that the claim:

(1) has the potential to exceed the lesser of an

amount determined by the Commissioner or the

limit set by the reinsurer,

(2) involves a coverage dispute,

(3) may exceed the claims settlement authority of the

RM,

(4) is open for more than six (6) months, or

(5) is closed by payment of the lesser of an amount

set by the Commissioner or an amount set by the

reinsurer,

c. all claim files shall be the joint property of the

reinsurer and RM. However, upon an order of

liquidation of the reinsurer such files shall become

the sole property of the reinsurer or its estate. The

RM shall have reasonable access to and the right to

copy the files on a timely basis,

d. any settlement authority granted to the RM may be

terminated for cause upon the written notice by the

reinsurer to the RM or upon the termination of the

contract. The reinsurer may suspend the settlement

Oklahoma Statutes - Title 36. Insurance Page 1032

authority during the pendency of the dispute regarding

the cause of termination;

10. If the contract provides for a sharing of interim profits

by the RM, the interim profits shall not be paid until one (1) year

after the end of each underwriting period for property business and

five (5) years after the end of each underwriting period for

casualty business and not until the adequacy of reserves on

remaining claims has been verified pursuant to the provisions of the

Reinsurance Intermediary Act;

11. The RM annually shall provide the reinsurer with a

statement of the financial condition of the RM prepared by an

independent certified accountant;

12. The reinsurer shall periodically, at least semi-annually,

conduct an on-site review of the underwriting and claims processing

operations of the RM;

13. The RM shall disclose to the reinsurer any relationship it

has with any insurer prior to ceding or assuming any business with

such insurer pursuant to this contract; and

14. The acts of the RM shall be deemed to be the acts of the

reinsurer on whose behalf the RM is acting.
Okla. Stat. tit. 36, § 36-4030.5 — OK Code / Title 36 / Section 36-4030.5
Minimum nonforfeiture amounts
Status: in_force

A. The minimum values as specified in Sections 4030.6, 4030.7,

4030.8, 4030.9 and 4030.11 of this title, of any paid-up annuity,

cash surrender or death benefits available under an annuity contract

shall be based upon minimum nonforfeiture amounts as defined in this

section.

B. 1. The minimum nonforfeiture amount at any time at or prior

to the commencement of any annuity payments shall be equal to an

accumulation up to such time at rates of interest as indicated in

subsection C of this section of the net considerations, as

hereinafter defined, paid prior to such time, decreased by the sum

of:

a. any prior withdrawals from or partial surrenders of

the contract accumulated at rates of interest

indicated in subsection C of this section,

b. an annual contract charge of Fifty Dollars ($50.00),

accumulated at rates of interest indicated in

subsection C of this section,

Oklahoma Statutes - Title 36. Insurance Page 854

c. any premium tax paid by the company for the contract,

accumulated at rates of interest indicated in

subsection C of this section, and

d. the amount of any indebtedness to the company on the

contract including interest due and accrued.

2. The net considerations for a given contract year used to

define the minimum nonforfeiture amount shall be an amount equal to

eighty-seven and one-half percent (87.5%) of the gross

considerations credited to the contract during that contract year.

C. The interest rate used in determining minimum nonforfeiture

amounts shall be an annual rate of interest determined as the lesser

of three percent (3%) per annum and the following, which shall be

specified in the contract if the interest rate will be reset:

1. The five-year Constant Maturity Treasury Rate reported by

the Federal Reserve as of a date, or average over a period, rounded

to the nearest one-twentieth of one percent (1/20 of 1%), specified

in the contract no longer than fifteen (15) months prior to the

contract issue date or redetermination date under paragraph 4 of

this subsection;

2. Reduced by one hundred twenty-five (125) basis points;

3. If the resulting interest rate is not less than fifteen one-

hundredths of one percent (.15%); and

4. The interest rate shall apply for an initial period and may

be redetermined for additional periods. The redetermination date,

basis and period, if any, shall be stated in the contract. The

basis is the date or average over a specified period that produces

the value of the five-year Constant Maturity Treasury Rate to be

used at each redetermination date.

D. During the period or term that a contract provides

substantive participation in an equity indexed benefit, it may

increase the reduction described in paragraph 2 of subsection C of

this section by up to an additional one hundred (100) basis points

to reflect the value of the equity index benefit. The present value

at the contract issue date, and at each redetermination date

thereafter, of the additional reduction shall not exceed the market

value of the benefit. The Commissioner may require a demonstration

that the present value of the additional reduction does not exceed

the market value of the benefit. Lacking such a demonstration that

is acceptable to the Commissioner, the Commissioner may disallow or

limit the additional reduction.

E. The Commissioner may adopt rules to implement the provisions

of paragraph 4 of subsection C of this section and to provide for

further adjustments to the calculation of minimum nonforfeiture

amounts for contracts that provide substantive participation in an

equity index benefit and for other contracts that the Commissioner

determines are justified.

Oklahoma Statutes - Title 36. Insurance Page 855
Okla. Stat. tit. 36, § 36-6920 — OK Code / Title 36 / Section 36-6920
Examination of affairs, programs, books, and records -
Status: in_force

Payment of expenses.

A. A certificate of authority issued under the Health

Maintenance Organization Act of 2003 may be suspended or revoked,

and an application for a certificate of authority may be denied, if

the Insurance Commissioner finds that any of the following

conditions exist:

Oklahoma Statutes - Title 36. Insurance Page 1404

1. The health maintenance organization (HMO) is operating

significantly in contravention of its basic organizational document

or in a manner contrary to that described in any other information

submitted under Section 6903 of this title, unless amendments to

those submissions have been filed with and approved by the Insurance

Commissioner;

2. The health maintenance organization issues an evidence of

coverage or uses a schedule of charges for health care services that

does not comply with the requirements of Sections 6908 and 6916 of

this title;

3. The health maintenance organization does not provide or

arrange for basic health care services;

4. The Insurance Commissioner determines that:

a. the health maintenance organization does not meet the

requirements of Section 6907 of this title, or

b. the health maintenance organization is unable to

fulfill its obligations to furnish health care

services;

5. The health maintenance organization is no longer financially

responsible and may reasonably be expected to be unable to meet its

obligations to enrollees or prospective enrollees;

6. The health maintenance organization has failed to correct,

within the time frame prescribed by subsection C of this section,

any deficiency occurring due to the health maintenance

organization's prescribed minimum net worth being impaired;

7. The health maintenance organization has failed to implement

the grievance procedures required by Section 6911 of this title in a

reasonable manner to resolve valid complaints;

8. The health maintenance organization, or any person on its

behalf, has advertised or merchandised its services in an untrue,

misrepresentative, misleading, deceptive or unfair manner;

9. The continued operation of the health maintenance

organization would be hazardous to its enrollees or to the public;

or

10. The health maintenance organization has otherwise failed to

comply with the provisions of the Health Maintenance Organization

Act of 2003 or applicable rules promulgated by the Insurance

Commissioner pursuant thereto.

B. In addition to or in lieu of suspension or revocation of a

certificate of authority pursuant to the provisions of this section,

an applicant or health maintenance organization who knowingly

violates the provisions of this section may be subject to an

administrative penalty of Five Thousand Dollars ($5,000.00) for each

occurrence.

C. The following shall apply when insufficient net worth is

maintained:

Oklahoma Statutes - Title 36. Insurance Page 1405

1. Whenever the Insurance Commissioner finds that the net worth

maintained by any health maintenance organization subject to the

provisions of this act is less than the minimum net worth required

to be maintained by Section 6913 of this title, the Insurance

Commissioner shall give written notice to the health maintenance

organization of the amount of the deficiency and require filing with

the Insurance Commissioner a plan for correction of the deficiency

that is acceptable to the Insurance Commissioner, and correction of

the deficiency within a reasonable time, not to exceed sixty (60)

days, unless an extension of time, not to exceed sixty (60)

additional days, is granted by the Insurance Commissioner. A

deficiency shall be deemed an impairment, and failure to correct the

impairment in the prescribed time shall be grounds for suspension or

revocation of the certificate of authority or for placing the health

maintenance organization in conservation, rehabilitation or

liquidation; or

2. Unless allowed by the Insurance Commissioner, no health

maintenance organization or person acting on its behalf may,

directly or indirectly, renew, issue or deliver any certificate,

agreement or contract of coverage in this state, for which a premium

is charged or collected, when the health maintenance organization

writing the coverage is impaired, and the fact of impairment is

known to the health maintenance organization or to the person;

provided, however, the existence of an impairment shall not prevent

the issuance or renewal of a certificate, agreement or contract when

the enrollee exercises an option granted under the plan to obtain a

new, renewed or converted coverage.

D. A certificate of authority shall be suspended or revoked or

an application or a certificate of authority denied or an

administrative penalty imposed only after compliance with the

requirements of this section.

1. Suspension or revocation of a certificate of authority,

denial of an application, or imposition of an administrative penalty

by the Insurance Commissioner, pursuant to the provisions of this

section, shall be by written order and shall be sent to the health

maintenance organization or applicant by certified or registered

mail. The written order shall state the grounds, charges or conduct

on which the suspension, revocation or denial or administrative

penalty is based. The health maintenance organization or applicant

may, in writing, request a hearing within thirty (30) days from the

date of mailing of the order. If no written request is made, the

order shall be final upon the expiration of thirty (30) days.

2. If the health maintenance organization or applicant requests

a hearing pursuant to the provisions of this section, the Insurance

Commissioner shall issue a written notice of hearing and send such

notice to the health maintenance organization or applicant by

certified or registered mail stating:

Oklahoma Statutes - Title 36. Insurance Page 1406

a. a specific time for the hearing, which may not be less

than twenty (20) nor more than thirty (30) days after

mailing of the notice of hearing, and

b. that any hearing shall be held at the office of the

Insurance Commissioner.

After the hearing, or upon failure of the health maintenance

organization to appear at the hearing, the Insurance Commissioner

shall take whatever action is deemed necessary based on written

findings. The Insurance Commissioner shall mail the decision to the

health maintenance organization or applicant.

E. The provisions of the Administrative Procedures Act shall

apply to proceedings under this section to the extent they are not

in conflict with the provisions of Section 313 of this title.

F. If the certificate of authority of a health maintenance

organization is suspended, the health maintenance organization shall

not, during the period of suspension, enroll any additional

enrollees except newborn children or other newly acquired dependents

of existing enrollees, and shall not engage in any advertising or

solicitation whatsoever.

G. If the certificate of authority of a health maintenance

organization is revoked, the HMO shall proceed, immediately

following the effective date of the order of revocation, to wind up

its affairs and shall conduct no further business except as may be

essential to the orderly conclusion of the affairs of the

organization. The HMO shall engage in no further advertising or

solicitation whatsoever. The Insurance Commissioner may, by written

order, permit further operation of the HMO if found to be in the

best interests of enrollees, to the end that enrollees will be

afforded the greatest practical opportunity to obtain continuing

health care coverage.
Okla. Stat. tit. 36, § 36-6103.4 — OK Code / Title 36 / Section 36-6103.4
Hearing
Status: in_force

A. 1. If the Insurance Commissioner has reason to believe or

it appears that a person or insurer has violated or is threatening

to violate the provisions of Sections 6103.1 through 6103.11 of this

title or a rule promulgated pursuant thereto, or that a person or

insurer acting in violation of Sections 6103.1 through 6103.11 of

this title has engaged in or is threatening to engage in an unfair

method of competition or an unfair or deceptive act or practice as

defined in Section 1201 et seq. of this title or a rule promulgated

pursuant thereto, the Commissioner may set a hearing and shall serve

on that person or insurer allegations of fact and a notice of

hearing, in conformance with the Administrative Procedures Act and

the Oklahoma Insurance Code, and the applicable rules thereof.

2. The hearing must be held not earlier than the 5th day or

later than the 30th day after the date of service of the statement

and notice unless the parties, with prior written approval of the

Commissioner, mutually agree to some other arrangements. Process

may be served by registered mail, return receipt requested, to the

person's last-known address.

3. The hearing shall be conducted in the manner provided for

contested cases under the Administrative Procedures Act and the

Oklahoma Insurance Code, and the applicable rules thereof.

B. 1. After the hearing, the Commissioner may issue an order

against the person or insurer charged with a violation requiring

that the person or insurer immediately cease and desist from the

violation.

2. A person aggrieved by a final order or decision of the

Insurance Commissioner pursuant to Sections 6103.1 through 6103.11

of this title may seek judicial review pursuant to Section 318 of

Title 75 of the Oklahoma Statutes.

Oklahoma Statutes - Title 36. Insurance Page 1133

C. The Insurance Commissioner may promulgate reasonable rules

necessary to carry out this section.

D. The Insurance Commissioner may proceed under Sections 6103.1

through 6103.11 of this title or under any other applicable law

without regard to prior proceedings.
Okla. Stat. tit. 36, § 36-6216 — OK Code / Title 36 / Section 36-6216
Powers of adjuster; Current license required for claim
Status: in_force

referral.

A. An adjuster shall have authority in accordance with his

license only to investigate or report to his principal upon claims

on behalf of insurers if the adjuster is licensed as an insurance

adjuster, or on behalf of insured if licensed as a public adjuster.

Oklahoma Statutes - Title 36. Insurance Page 1171

This limitation of powers shall not prohibit the insurer or insured

from granting additional powers to the adjuster.

B. An insurer shall not knowingly refer any claim of loss for

adjustment in this state to any person purporting to be or acting as

an adjuster unless such a person is currently licensed as an

adjuster as required by the provisions of the Insurance Adjusters

Licensing Act.

C. Prior to referring any claim of loss to an adjuster, the

insurer shall ascertain whether or not the adjuster is currently

licensed pursuant to the provisions of the Insurance Adjusters

Licensing Act. Having once ascertained that an adjuster is

licensed, the insurer may assume that the adjuster shall continue to

be licensed until the insurer has knowledge or has received

information to the contrary.
Okla. Stat. tit. 36, § 36-2511 — OK Code / Title 36 / Section 36-2511
Existing corporations; amendments of articles of
Status: in_force

incorporation; effect of reincorporation.

Any domestic life or accident and health corporation, company or

association existing or doing business in this state on April 9,

1923, may, by the vote of a majority of its board of directors or

trustees, accept the provisions of this article and amend its

Oklahoma Statutes - Title 36. Insurance Page 679

articles of incorporation to conform to the same, so as to cover and

enjoy any and all the provisions and privileges of this article the

same as if it had been originally incorporated thereunder, and it

shall file such amended articles of incorporation in the office of

the Secretary of State, a certified copy of which shall be filed

with the Insurance Commissioner, and shall thereafter perpetually

enjoy the same and be deemed to have been incorporated under this

article. Reincorporation, however, shall in no way annul, modify or

change any of the existing contracts and liabilities of such

corporation, company or association, and any and all such contracts

and liabilities shall continue in force and effect the same as

though such corporation had not reincorporated or qualified under

this article, neither shall such reincorporation in any way

prejudice, impede or impair any pending action or proceeding or any

rights previously acquired.
Okla. Stat. tit. 36, § 36-1521 — OK Code / Title 36 / Section 36-1521
Short title
Status: in_force

This act shall be known and may be cited as the "Risk-based

Capital for Insurers Act".
Okla. Stat. tit. 36, § 36-2664 — OK Code / Title 36 / Section 36-2664
Exemptions
Status: in_force

The provisions of this article apply only to nonprofit

optometric service and indemnity corporations and such corporations

shall be governed by this Article to the extent provided herein.

Such corporations shall be exempt from all other provisions of the

insurance laws of this state, except that the provisions of Articles

1, 3, 12, 16, 17 and 18 of the Oklahoma Insurance Code shall apply

to such corporations to the extent that such provisions are not in

conflict with the provisions of this article. No law relating to

insurance hereafter enacted shall apply to such corporations unless

they be expressly designated therein.
Okla. Stat. tit. 36, § 36-6456 — OK Code / Title 36 / Section 36-6456
Membership in or participation in insurance insolvency
Status: in_force

guaranty fund prohibited – Purchasing group coverage – Risks not

covered.

A. No risk retention group shall be permitted to join or

contribute financially to any insurance insolvency guaranty fund, or

similar mechanism, in this state, nor shall any risk retention

group, or its insureds or claimants against its insureds, receive

any benefit from any such fund for claims arising under the

insurance policies issued by a risk retention group.

B. When a purchasing group obtains insurance covering its

members' risks from an insurer not authorized in this state or a

risk retention group, no such risks, wherever resident is located,

shall be covered by any insurance guaranty fund or similar mechanism

in this state.

C. When a purchasing group obtains insurance covering its

members' risks from an authorized insurer, only risks resident or

located in this state may be covered by the Oklahoma Property and

Casualty Insurance Guaranty Association.
Okla. Stat. tit. 36, § 36-4076 — OK Code / Title 36 / Section 36-4076
Financial statement
Status: in_force

Each qualified charitable organization issuing qualified

charitable gift annuities shall provide the Insurance Commissioner

with a copy of its annual audited financial statement prepared by an

independent certified public accountant or accounting firm or

individual holding a permit to practice public accounting in

accordance with generally accepted accounting principles within

ninety (90) days of receipt of the final audit report by the

qualified charitable organization.
Okla. Stat. tit. 36, § 36-1435.12 — OK Code / Title 36 / Section 36-1435.12
Temporary license without examination – Protection of
Status: in_force

insureds and public.

A. The Insurance Commissioner may issue a temporary license for

a period not to exceed one hundred eighty (180) days without

requiring an examination if the Insurance Commissioner deems that

the temporary license is necessary for the servicing of an insurance

business in the following cases:

1. To the surviving spouse or court-appointed personal

representative of a licensed insurance producer who dies or becomes

mentally or physically disabled to allow adequate time for the sale

of the insurance business owned by the producer or for the recovery

or return of the producer to the business or to provide for the

training and licensing of new personnel to operate the producer's

business;

2. To a member or employee of a business entity licensed as an

insurance producer, upon the death or disability of an individual

designated in the business entity application or the license;

Oklahoma Statutes - Title 36. Insurance Page 343

3. To the designee of a licensed insurance producer entering

active service in the Armed Forces of the United States of America;

or

4. In any other circumstance in which the Insurance

Commissioner deems that the public interest will best be served by

the issuance of this license.

B. The Insurance Commissioner may by order limit the authority

of any temporary licensee in any way deemed necessary to protect

insureds and the public. The Insurance Commissioner may require the

temporary licensee to have a suitable sponsor who is a licensed

producer or insurer and who assumes responsibility for all acts of

the temporary licensee and may impose other similar requirements

designed to protect insureds and the public. The Insurance

Commissioner may by order revoke a temporary license if the interest

of insureds or the public are endangered. A temporary license may

not continue after the owner or the personal representative disposes

of the business. If the applicant fails to pass the licensure

examination, the temporary license shall terminate automatically.

C. As to a temporary agent's license issued because of the

death or disability of an agent, no insurers shall be represented by

the temporary licensee in addition to those represented by the

deceased or disabled agent.

D. The fee paid for the temporary license shall not be applied

upon the fee for any permanent license of the same category issued

to the licensee before expiration of the temporary license.

E. No license issued pursuant to the provisions of subsection A

of this section shall be effective for more than six (6) months.

The Commissioner, in his discretion, may renew the license once upon

proper application and for good cause. However, no temporary

license shall be issued for any line of insurance to any applicant

who has failed to pass the required examination.
Okla. Stat. tit. 36, § 36-6056 — OK Code / Title 36 / Section 36-6056
Place where services may be performed
Status: in_force

Services and procedures covered under an accident and health

insurance policy may be performed at any hospital, home care agency

or ambulatory surgical center where a practitioner is authorized to

practice, doctor's office or clinic, at the choice of the insured,

or the insured's parent or guardian if the insured is a minor, and

the practitioner who is providing the services and procedures.
Okla. Stat. tit. 36, § 36-6530.6 — OK Code / Title 36 / Section 36-6530.6
Board of Directors – Powers
Status: in_force

The Board may:

1. Exercise powers granted to insurers under the laws of this

state;

2. Sue or be sued; and

3. Request the Insurance Commissioner to check the reports,

records, books and papers of the Insurance Department to determine

the financial condition of an insurer for purposes of Section 8 of

this act.
Okla. Stat. tit. 36, § 36-1698 — OK Code / Title 36 / Section 36-1698
Insurance securitization – Not deemed an insurance or
Status: in_force

reinsurance contract.

A protected cell company insurance securitization shall not be

deemed to be an insurance or reinsurance contract. An investor in a

protected cell company insurance securitization shall not, by sole

means of this investment, be deemed to be transacting an insurance

business in this state. The underwriters or selling agents and

their partners, directors, officers, members, managers, employees,

agents, representatives and advisors involved in a protected cell

company insurance securitization shall not be deemed to be

conducting an insurance or reinsurance agency, brokerage,

intermediary, advisory or consulting business by virtue of their

activities in connection with those businesses.
Okla. Stat. tit. 36, § 36-6219 — OK Code / Title 36 / Section 36-6219
Initial license; grounds for refusal
Status: in_force

The Commissioner may refuse to issue an initial license for any

of the causes set out in Section 6220 of this title, failure to pass

the required examination, or prior revocation of an adjuster's

license in this state or in any other state.
Okla. Stat. tit. 36, § 36-2202 — OK Code / Title 36 / Section 36-2202
Definitions
Status: in_force

As used in the Oklahoma Medical Professional Liability Trusts

Act:

1. “Allied health care professional” shall mean a physician’s

assistant, a certified registered nurse anesthetist or a nurse

practitioner who is duly licensed by the appropriate licensing

entity of the state and is supervised or employed by a physician

and/or health care institution;

2. “Association” shall mean a nonprofit corporation that has

been in continuous existence for a period of at least ten (10)

years, the purpose of which is to federate into one organization all

Oklahoma Statutes - Title 36. Insurance Page 656

duly licensed physicians, allied health care professionals and/or

health care institutions in this state;

3. “Commissioner” shall mean the Insurance Commissioner;

4. “Department” shall mean the Insurance Department;

5. “Health care institutions” shall mean hospitals, outpatient

treatment facilities and facilities licensed pursuant to the Nursing

Home Care Act;

6. “Medical professional liability claim” shall mean a claim or

cause of action against a physician and/or a health care institution

for treatment, lack of treatment, or other claimed departure from

accepted standards of health care or safety which proximately

results in injury to or death of the patient, whether the patient’s

claim or cause of action sounds in tort or contract;

7. “Physician” shall mean a doctor of medicine or osteopathy

legally authorized to practice medicine and surgery in this state;

8. “Insureds” shall mean the physician, allied health care

professional and health care institution members of an association

that have medical professional liability coverage through the trust.

“Insureds” shall also include entities and individuals specified in

subsection C of Section 60 of this act if authorized by the trust;

and

9. “Trust” shall mean a medical professional liability trust

created pursuant to the Oklahoma Medical Professional Liability

Trusts Act.
Okla. Stat. tit. 36, § 36-4013 — OK Code / Title 36 / Section 36-4013
Payment of claims
Status: in_force

There shall be a provision that when a policy shall become a

claim by the death of the insured settlement shall be made upon

receipt of due proof of death and, at the insurer's option,

surrender of the policy and/or proof of the interest of the

claimant. If an insurer shall specify a particular period prior to

the expiration of which settlement shall be made, such period shall

not exceed two months from the receipt of such proofs.
Okla. Stat. tit. 36, § 36-641 — OK Code / Title 36 / Section 36-641
Promulgation of rules relating to multiple employer
Status: in_force

welfare arrangements.

The Insurance Commissioner may promulgate rules to implement the

provisions of Sections 633 through 640 of Title 36 of the Oklahoma

Statutes relating to multiple employer welfare arrangements.
Okla. Stat. tit. 36, § 36-7134 — OK Code / Title 36 / Section 36-7134
Violations - Penalties
Status: in_force

Any organization, or its officers or directors, which violate

any provision of the Cemetery Merchandise Trust Act shall, upon

conviction, be deemed guilty of a misdemeanor and shall be subject

to a fine of not less than One Hundred Dollars ($100.00) nor more

than Two Thousand Five Hundred Dollars ($2,500.00).
Okla. Stat. tit. 36, § 36-1116 — OK Code / Title 36 / Section 36-1116
Penalty for failure to remit tax
Status: in_force

A. Any surplus lines licensee or broker who fails to remit the

surplus line tax provided for by Section 1115 of this title shall be

liable for a civil penalty not to exceed Twenty-five Dollars

($25.00) for each day of delinquency, per policy. The Insurance

Commissioner shall collect the tax by distraint and shall recover

the penalty by an action in the name of the State of Oklahoma. The

Commissioner may request the Attorney General to appear in the name

of the state by relation of the Commissioner.

B. If any person, association or legal entity procuring or

accepting any insurance coverage from a surplus lines insurer where

Oklahoma is the home state of the insured, otherwise than through a

surplus lines licensee or broker, fails to remit the surplus line

tax provided for by Section 1115 of this title, the person,

association or legal entity shall, in addition to the tax, be liable

to a civil penalty in an amount equal to one percent (1%) of the

premiums paid or agreed to be paid for the policy or policies of

insurance for each calendar month of delinquency or a civil penalty

in the amount of Twenty-five Dollars ($25.00) whichever shall be the

greater. The Insurance Commissioner shall collect the tax by

distraint and shall recover the civil penalty in an action in the

name of the State of Oklahoma. The Commissioner may request the

Attorney General to appear in the name of the state by relation of

the Commissioner.
Okla. Stat. tit. 36, § 36-1811 — OK Code / Title 36 / Section 36-1811
Proceedings
Status: in_force

If the Commissioner decides to proceed under this act, the

sequence of steps and proceedings shall be as set forth herein. In

regard to insurer delinquencies or suspected delinquencies, however,

the Commissioner may proceed and administer either under this act or

under any other applicable law, or both.
Okla. Stat. tit. 36, § 36-1918 — OK Code / Title 36 / Section 36-1918
Proof of claims; notice; hearing
Status: in_force

A. All claims against an insurer against which delinquency

proceedings have been begun shall set forth in reasonable detail the

amount of the claim, or the basis upon which such amount can be

ascertained, the facts upon which the claim is based, and the

priorities asserted, if any. All such claims shall be signed by the

claimant, or someone authorized to act on his or her behalf , and

shall be supported by such documents as may be material thereto.

Oklahoma Statutes - Title 36. Insurance Page 541

Claimant shall, in the time and manner set forth by the receiver,

fully comply with any and all requests by the receiver for claimant

to provide information or evidence supplementary to that required in

this article, including, but not limited to, testimony under oath,

affidavits, and depositions.

B. All claims filed in this state shall be filed with the

receiver, whether domiciliary or ancillary, in this state, on or

before the last date for filing as specified by the court.

C. Within such period as the court may fix, the receiver shall

report the claim to the court, specifying in such report a

recommendation with respect to the action to be taken thereon. Upon

receipt of such report, the court shall fix a time for hearing the

claim and shall direct that the claimant or the receiver, as the

court shall specify, shall give such notice as the court shall

determine to such persons as shall appear to the court to be

interested therein. All such notices shall specify the time and

place of the hearing and shall concisely state the amount and nature

of the claim, the priorities asserted, if any, and the

recommendation of the receiver with reference thereto.

D. At the hearing, all persons interested shall be entitled to

appear and the court shall enter an order allowing, allowing in

part, or disallowing the claim. Any such order shall be deemed to

be an appealable order.
Okla. Stat. tit. 36, § 36-307.2 — OK Code / Title 36 / Section 36-307.2
Nonpublic personal information
Status: in_force

A. No person shall disclose any nonpublic personal information

contrary to the provisions of Title V of the Gramm-Leach-Bliley Act

of 1999, Public Law No. 106-102.

B. The Insurance Commissioner may promulgate rules necessary to

carry out the provisions of this section.

C. Nothing in this section shall be construed to create a

private cause of action.