Okla. Stat. tit. 36, § 36-5123 — OK Code / Title 36 / Section 36-5123
Asset or reduction from liability for ceded reinsurance -
Status: in_force

Security

An asset or a reduction from liability for the reinsurance ceded

by a domestic insurer to an assuming insurer not meeting the

requirements of Section 5122 of this title shall be allowed in an

amount not exceeding the liabilities carried by the ceding insurer;

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. The reduction shall be in the

amount of funds held by or on behalf of the ceding insurer including

funds held in trust for the ceding insurer, under a reinsurance

contract with the assuming insurer as security for the payment of

obligations thereunder, if the security is held in the United States

subject to withdrawal solely by, and under the exclusive control of,

the ceding insurer; or, in the case of a trust, held in a qualified

Oklahoma Statutes - Title 36. Insurance Page 1051

United States financial institution, as defined in subsection B of

Section 5123.1 of this title. This security may be in the form of:

1. Cash;

2. Securities listed by the Securities Valuation Office of the

National Association of Insurance Commissioners including those

deemed exempt from filing as defined by the Purposes and Procedures

Manual of the Securities Valuation Office and qualifying as admitted

assets;

3. a. Clean, irrevocable, unconditional letters of credit,

issued or confirmed by a qualified United States

financial institution, as defined in subsection A of

Section 5123.1 of this title, effective no later than

December 31 of the year for which the filing is being

made, and in the possession of, or in trust for, the

ceding insurer on or before the filing date of its

annual statement.

b. Letters of credit meeting applicable standards of

issuer acceptability as of the dates of their issuance

or confirmation shall, notwithstanding the issuing or

confirming institution's subsequent failure to meet

applicable standards of issuer acceptability, continue

to be acceptable as security until their expiration,

extension, renewal, modification or amendment,

whichever first occurs; or

4. Any other form of security acceptable to the Insurance

Commissioner.
Okla. Stat. tit. 36, § 36-6305 — OK Code / Title 36 / Section 36-6305
Confidentiality of information - Witnesses
Status: in_force

A. Any authorized agency or insurance company who receives any

information furnished pursuant to this act shall hold the

information in confidence until such time as its release is required

by law, or required pursuant to a criminal or civil proceeding.

B. The agents or employees of any authorized agency who have

participated in the investigation of a fire loss may be required to

testify in any litigation with respect to such fire loss in which an

insurance company is named as a party.
Okla. Stat. tit. 36, § 36-4211 — OK Code / Title 36 / Section 36-4211
Settlement
Status: in_force

There shall be a provision that when the policy becomes a claim

by the death of the insured, settlement shall be made upon surrender

of the policy and receipt of due proof of death.
Okla. Stat. tit. 36, § 36-6957 — OK Code / Title 36 / Section 36-6957
Scope of act
Status: in_force

The provisions of this act shall govern and apply only to

nonprofit health maintenance organization corporations. Such

corporations shall comply with all other laws applicable to health

maintenance organizations under Title 36 of the Oklahoma Statutes

and any rules promulgated thereunder.
Okla. Stat. tit. 36, § 36-660.5 — OK Code / Title 36 / Section 36-660.5
Commissioner review
Status: in_force

Oklahoma Statutes - Title 36. Insurance Page 171

A. The Oklahoma Insurance Commissioner shall review a plan of

reorganization that is submitted to the Commissioner. On review,

the Commissioner shall approve the plan if the Commissioner finds

all of the following:

1. The applicable provisions of this act, and other applicable

provisions of law, have been fully met;

2. The plan protects the rights of policyholders;

3. The plan is fair and equitable to the members and the plan

does not prejudice the interests of the members;

4. The converted stock insurer has capital or surplus, or any

combination thereof, that is required of a domestic stock insurer on

initial authorization to transact like kinds of insurance, and

otherwise is able to satisfy the requirements of this state for

transacting its insurance business;

5. The plan does not substantially reduce the security of the

policyholders and the service to be rendered to the policyholders;

6. The financial condition of the mutual holding company or any

subsidiary of the mutual holding company does not jeopardize the

financial stability of the converted stock insurer;

7. The financial condition of the converting mutual insurer is

not jeopardized by the conversion or reorganization, and the

conversion or reorganization does not jeopardize the financial

stability of the mutual holding company or any subsidiary of the

mutual holding company; and

8. The competence, experience and integrity of those persons

who control the operation of the converted stock insurer are not

contrary to the interests of policyholders of the converted stock

insurer and of the public in allowing the plan to proceed.

B. To the extent the plan contains a provision that allows for

the acquisition or merger of other insurance companies, the

Commissioner shall gauge the effect of the merger or other

acquisition of control and whether it would substantially lessen

competition in the insurance industry in this state or tend to

create a monopoly. The Commissioner shall not approve a plan that

fails to meet this standard.

C. An approval of a plan by the Commissioner expires if the

plan is not carried out within one (1) year after the date of the

approval, unless the Commissioner extends the time period for good

cause on written application for such extension.

D. The Commissioner may retain, at the expense of the

converting mutual insurer, qualified experts not otherwise a part of

the staff of the Department to assist in reviewing the plan and

supplemental documents.

E. The Commissioner may hold a hearing for the purposes of

receiving comments on whether a plan should be approved and on any

other matter relating to the reorganization. The hearing, if held,

shall be held within sixty (60) days after the Commissioner receives

Oklahoma Statutes - Title 36. Insurance Page 172

a completed filing of the plan and all information required by the

Commissioner.
Okla. Stat. tit. 36, § 36-6103.5 — OK Code / Title 36 / Section 36-6103.5
Emergency cease and desist orders - Grounds for
Status: in_force

issuance.

The Insurance Commissioner may issue a cease and desist order,

ex parte, if:

1. The Commissioner believes:

a. an unauthorized person is engaging in the business of

insurance in violation of Section 6103.2 of this title

or in violation of a rule promulgated pursuant to

Sections 6103.1 through 6103.11 of this title, or

b. an unauthorized person engaged in the business of

insurance acting in violation of Section 6103.3 of

this title is committing an unfair method of

competition or an unfair or deceptive act or practice

in violation of Section 1201 et seq. of this title or

in violation of any rule promulgated pursuant thereto,

or

c. an unauthorized person or individual is engaging in

the business of bail bonds in violation of Section

6103.2 of this title or in violation of a rule

promulgated pursuant to Sections 6103.1 through

6103.11 of this title; or

2. It appears to the Commissioner that the alleged conduct is

fraudulent or hazardous or creates an immediate danger to the public

safety or is causing or can be reasonably expected to cause

significant, imminent and irreparable public injury.
Okla. Stat. tit. 36, § 36-6470.18 — OK Code / Title 36 / Section 36-6470.18
Membership in, contribution to, or benefit from plan, pool, association, or guaranty or
Status: in_force

Oklahoma Statutes - Title 36. Insurance Page 34pool, association, or guaranty or insolvency fund.

A captive insurance company may not join or contribute

financially to a plan, pool, association, or guaranty or insolvency

fund in this state, and a captive insurance company, or its insured

or its parent or any affiliated company or any member organization

of its association, or in the case of a captive insurance company

organized as a reciprocal insurer, a subscriber of the company, or

in the case of a sponsored captive insurance company, a protected

cell or participant in a protected cell may not receive a benefit

from a plan, pool, association, or guaranty or insolvency fund for

claims arising out of the operations of such captive insurance

company.
Okla. Stat. tit. 36, § 36-6810 — OK Code / Title 36 / Section 36-6810
Definitions
Status: in_force

A. Sections 6810 through 6820 of this title shall be known and

may be cited as the “Medical Professional Liability Insurance Closed

Claim Reports Act”.

B. The Medical Professional Liability Insurance Closed Claim

Reports Act shall apply to all medical professional liability claims

in this state, regardless of whether or how the claims are covered

by medical professional liability insurance.

C. As used in the Medical Professional Liability Insurance

Closed Claim Reports Act:

1. “Claim” means:

a. a demand for monetary damages for injury or death

caused by medical malpractice, or

b. a voluntary indemnity payment for injury or death

caused by medical malpractice;

Oklahoma Statutes - Title 36. Insurance Page 1368

2. “Claimant” means a person, including an estate of a

decedent, who is seeking or has sought monetary damages for injury

or death caused by medical malpractice;

3. “Closed claim” means a claim that has been settled or

otherwise disposed of by the insuring entity, self-insurer,

facility, or provider. A claim may be closed with or without an

indemnity payment to a claimant;

4. “Commissioner” means the Insurance Commissioner;

5. “Companion claims” means separate claims involving the same

incident of medical malpractice made against other providers or

facilities;

6. “Economic damages” means objectively verifiable monetary

losses, including medical expenses, loss of earnings, burial costs,

loss of use of property, cost of replacement or repair, cost of

obtaining substitute domestic services, and loss of business or

employment opportunities;

7. “Health care facility” or “facility” means a clinic,

diagnostic center, hospital, laboratory, mental health center,

nursing home, office, surgical facility, treatment facility, or

similar place where a health care provider provides health care to

patients;

8. “Health care provider” or “provider” means:

a. a person licensed to provide health care or related

services, including an acupuncturist, doctor of

medicine or osteopathy, a dentist, a nurse, an

optometrist, a podiatric physician and surgeon, a

chiropractor, a physical therapist, a psychologist, a

pharmacist, an optician, a physician’s assistant, a

midwife, an osteopathic physician’s assistant, a nurse

practitioner, or a physician’s trained mobile

intensive care paramedic. If the person is deceased,

this includes the estate or personal representative of

the person, or

b. an employee or agent of a person described in

subparagraph a of this paragraph, acting in the course

and scope of the employment of the employee. If the

employee or agent is deceased, this includes the

estate or personal representative of the employee;

9. “Insuring entity” means:

a. an authorized insurer,

b. a captive insurer,

c. a joint underwriting association,

d. a patient compensation fund,

e. a risk retention group, or

f. an unauthorized insurer that provides surplus lines

coverage;

Oklahoma Statutes - Title 36. Insurance Page 1369

10. “Medical malpractice” means an actual or alleged negligent

act, error, or omission in providing or failing to provide health

care services;

11. “Noneconomic damages” means subjective, nonmonetary losses,

including pain, suffering, inconvenience, mental anguish, disability

or disfigurement incurred by the injured party, emotional distress,

loss of society and companionship, loss of consortium, humiliation

and injury to reputation, and destruction of the parent-child

relationship; and

12. “Self-insurer” means any health care provider, facility, or

other individual or entity that assumes operational or financial

risk for claims of medical professional liability.
Okla. Stat. tit. 36, § 36-4072 — OK Code / Title 36 / Section 36-4072
Definitions
Status: in_force

As used in this act:

1. "Charitable gift annuity" means a transfer of cash or other

property by a donor or donors to a charitable organization in return

for periodic payments by the charitable organization commencing on

the date of the agreement or in the future to one or more persons

designated by the donor or donors over the lives of such persons;

2. "Qualified charitable gift annuity" means a charitable gift

annuity which:

a. has an actuarial value using the actuarial factors and

interest rate established by the Internal Revenue Code

to determine charitable deductions for federal tax

purposes which is less than ninety percent (90%) of

the value of the cash or other property transferred by

the donor or donors to the charitable organization and

the difference in value constitutes a charitable

deduction for federal tax purposes,

Oklahoma Statutes - Title 36. Insurance Page 913

b. has periodic payments that are calculated using a rate

which will reasonably assure the promised payments to

the annuitant on the date the annuity is issued, and

c. is described in Section 501(m)(5) of the Internal

Revenue Code;

3. "Charitable organization" means an entity that:

a. is described by Sections 501(c)(3) and 170(c) of the

Internal Revenue Code, and

b. is qualified to do business in this state;

4. "Qualified charitable organization" means a charitable

organization that, on the date it issues its first qualified

charitable gift annuity contract:

a. has a minimum of One Hundred Thousand Dollars

($100,000.00) in unrestricted assets that are

exclusive of the assets comprising its qualified

charitable gift annuities, and

b. has been in continuous operation for at least three

(3) years or is a successor or affiliate of a

charitable organization that has been in continuous

operation for at least three (3) years; and

5. "Internal Revenue Code" means the Internal Revenue Code of

1986 (26 U.S.C.), as amended, or any similar successor federal tax

legislation.
Okla. Stat. tit. 36, § 36-3012 — OK Code / Title 36 / Section 36-3012
Revocation of license
Status: in_force

If any attorney-in-fact or underwriters at Lloyd's shall violate

any of the provisions of this Code, or any of the other laws of the

State of Oklahoma which are applicable to them, the license of such

attorney shall be revoked and the right to do business in Oklahoma

shall be canceled.

Oklahoma Statutes - Title 36. Insurance Page 754
Okla. Stat. tit. 36, § 36-1435.20a — OK Code / Title 36 / Section 36-1435.20a
Sale of storage insurance by self-storage facility
Status: in_force

A. As used in this section:

1. "Self-service storage insurance" means personal property

insurance offered to occupants of a self-service storage facility in

connection with and incidental to the rental of space at the self-

service storage facility. Self-service storage insurance is limited

to coverage against the loss of or physical damage to personal

property that occurs on the premises of the self-service storage

facility or when the personal property is in transit to or from the

self-service storage facility during the period of the rental

agreement;

2. "Occupant" means a person, or his or her sublessee,

successor or assign, entitled to the use of the storage space at a

self-service storage facility under a rental agreement, to the

exclusion of others;

3. "Owner" means the owner, operator, lessor or sublessor of a

self-service storage facility, or any person authorized by him or

her to manage the facility or to receive rent from an occupant under

a rental agreement;

Oklahoma Statutes - Title 36. Insurance Page 356

4. "Self-service storage facility" means any real property

designed and used for the purpose of renting or leasing individual

storage space to occupants who are to have access to such facility

for the purpose of storing and removing personal property;

5. "Supervising entity" means a business entity that is a

licensed insurer or insurance producer.

B. The owner of a self-service storage facility may sell,

solicit and offer coverage for self-service storage insurance.

C. An owner is required to hold a limited lines license,

pursuant to Section 1435.20 of Title 36 of the Oklahoma Statutes, to

sell, solicit or offer coverage for self-service storage insurance.

An owner is not required to be licensed solely to display and make

available brochures and other promotional materials created by or on

behalf of an authorized insurer or surplus lines insurer. A limited

lines license shall authorize any employee or authorized

representative of the owner to sell, solicit and offer coverage for

self-service storage insurance to occupants at each location at

which the owner conducts business.

D. An owner holding a limited lines license pursuant to Section

1435.20 of Title 36 of the Oklahoma Statutes is exempt from the

examination requirements in Section 1435.6 of Title 36 of the

Oklahoma Statutes and the continuing education requirements in

Section 1435.29 of Title 36 of the Oklahoma Statutes.

E. An owner or supervising entity shall maintain a registry of

agents of the owner at each self-service storage facility who are

engaged in selling, soliciting or offering self-service storage

insurance coverage under the authority of the limited lines license

of the owner.

F. Upon request by the Insurance Commissioner and with ten-

days' notice, the books and records of the owner regarding the self-

service storage insurance shall be open to examination by the

Insurance Commissioner during regular business hours of the

supervising entity.

G. At every location where self-service storage insurance is

offered, brochures or other written or electronic materials must be

made available to prospective purchasers which:

1. Disclose that self-service storage insurance may provide a

duplication of coverage already provided by a homeowner's insurance

policy, renter's insurance policy or other source of coverage of the

occupant;

2. State that the purchase of the self-service storage

insurance offered by the owner is not required in order to lease

storage space;

3. Provide:

a. the identity of the insurer,

b. the identity of the owner,

c. the process for filing a claim, and

Oklahoma Statutes - Title 36. Insurance Page 357

d. that the insured may cancel the coverage at any time

and receive a refund of any applicable unearned

premium.

H. Each prospective purchaser of self-service storage insurance

shall be provided, prior to the time of sale, a copy of the policy

or certificate, as applicable.

I. Self-service storage insurance may be provided under an

individual, master, corporate, commercial or group insurance policy.

J. Self-service storage insurance rules, rates and forms are

subject to the provisions of Sections 1201 through 1219, Sections

309.1 through 309.7, and Section 1435.26 of Title 36 of the Oklahoma

Statutes.

K. The insurer issuing the self-service storage insurance shall

either directly supervise or appoint a supervising entity to oversee

compliance with applicable law. The insurer or supervising entity

shall provide a training program for employees and authorized

representatives of the owner that sell, solicit or offer self-

service storage insurance. The training required by this subsection

shall include each employee and authorized representative that

sells, solicits or offers self-service storage insurance receiving

basic instruction about the self-service storage insurance offered

to occupants and the disclosures required pursuant to subsection G

of this section.

L. No employee or authorized representative of an owner shall

advertise, represent or otherwise hold himself or herself out as a

licensed insurance producer, unless so licensed.

M. The premium for self-service storage insurance coverage may

be billed and collected by the owner. The premium for the coverage

shall be separately itemized on the bill of the occupant. All

premiums received by an owner for the sale of self-service storage

insurance shall be considered funds held by the owner in a fiduciary

capacity for the benefit of the insurer. An owner billing and

collecting charges for self-service storage insurance shall not be

required to maintain the funds in a segregated account provided that

the owner is authorized by the insurer or supervising entity to hold

the funds in an alternative manner and to remit the amounts to the

supervising entity or insurer within sixty (60) days of receipt.

Owners may receive compensation for billing and collection services.

N. A sworn application for a self-service storage insurance

limited lines license provided for in Section 1435.20 of Title 36 of

the Oklahoma Statutes shall be made to and filed with the Insurance

Commissioner on forms prescribed and furnished by the Insurance

Commissioner.

O. The application for licensure shall provide the name,

residence address, principal place of business, facilities covered

by the license, authorized representatives and other information

required by the Insurance Commissioner for the owner and the

Oklahoma Statutes - Title 36. Insurance Page 358

licensed producer that is designated by the applicant as the person

supervising compliance with the requirements of this section. Such

information shall be updated within thirty (30) days of any change.

The licensed producer that is designated by the applicant does not

need to own or be employed by the owner.

P. Limited lines licenses for self-service storage insurance

shall be valid for a period of twenty-four (24) months.

Q. Each owner licensed pursuant to this section shall pay to

the Insurance Commissioner a fee as prescribed by the Insurance

Commissioner.
Okla. Stat. tit. 36, § 36-3004 — OK Code / Title 36 / Section 36-3004
Accounts for each kind of insurance
Status: in_force

In the accounts pertaining to each kind of insurance shall be

entered all receipts thereof and all expenses incurred directly in

its behalf and due proportion of the unallocated expenses of the

Lloyd's in such manner as to show separately the underwriting

experience.

Oklahoma Statutes - Title 36. Insurance Page 752
Okla. Stat. tit. 36, § 36-4030.4 — OK Code / Title 36 / Section 36-4030.4
Conditions for approval of annuity contracts by
Status: in_force

Commissioner - Conditions for termination of contracts.

A. In the case of contracts issued on or after November 1,

2000, except as provided in Section 4030.3 of this title, no

contract of annuity, except as stated in Section 4030.13 of this

title, shall be delivered or issued for delivery in this state

unless it contains in substance the following provisions, or

corresponding provisions which in the opinion of the Insurance

Commissioner are at least as favorable to the contract holder, upon

cessation of payment of considerations under the contract:

1. That upon cessation of payment of considerations under a

contract, the company shall grant a paid-up annuity benefit on a

plan stipulated in the contract of such value as is specified in

Sections 4030.6, 4030.7, 4030.9 and 4030.11 of this title;

2. If a contract provides for a lump sum settlement at

maturity, or at any other time, that upon surrender of the contract

at or prior to the commencement of any annuity payments, the company

shall pay in lieu of a paid-up annuity benefit a cash surrender

benefit of such amount as is specified in Sections 4030.6, 4030.7,

4030.9 and 4030.11 of this title. The company may reserve the right

to defer the payment of the cash surrender benefit for a period not

to exceed six (6) months after demand therefor with surrender of the

contract after making written request and receiving the written

approval of the Commissioner. The request shall address the

necessity and equitability to all policyholders of the deferral;

Oklahoma Statutes - Title 36. Insurance Page 853

3. A statement of the mortality table, if any, and interest

rates used in calculating any minimum paid-up annuity, cash

surrender or death benefits that are guaranteed under the contract,

together with sufficient information to determine the amounts of the

benefits; and

4. A statement that any paid-up annuity, cash surrender or

death benefits that may be available under the contract are not less

than the minimum benefits required by any statute of the state in

which the contract is delivered and an explanation of the manner in

which the benefits are altered by the existence of any additional

amounts credited by the company to the contract, any indebtedness to

the company on the contract or any prior withdrawals from or partial

surrenders of the contract.

B. Notwithstanding the requirements of this section, a deferred

annuity contract may provide that if no considerations have been

received under a contract for a period of two (2) full years and the

portion of the paid-up annuity benefit at maturity on the plan

stipulated in the contract arising from prior considerations paid

would be less than Twenty Dollars ($20.00) monthly, the company may

at its option terminate the contract by payment in cash of the then

present value of the portion of the paid-up annuity benefit,

calculated on the basis on the mortality table, if any, and interest

rate specified in the contract for determining the paid-up annuity

benefit, and by this payment shall be relieved of any further

obligation under the contract.
Okla. Stat. tit. 36, § 36-4601 — OK Code / Title 36 / Section 36-4601
Short title
Status: in_force

This act shall be known and may be cited as the “Health Care for

Oklahomans Act".
Okla. Stat. tit. 36, § 36-4405.1 — OK Code / Title 36 / Section 36-4405.1
Health benefit plans - Credentialing or recredentialing
Status: in_force

of physicians and other health care providers.

A. As used in this section:

1. a. “Health benefit plan” or “plan” means:

(1) group hospital or medical insurance coverages,

(2) not-for-profit hospital or medical service or

indemnity plans,

(3) prepaid health plans,

(4) health maintenance organizations,

(5) preferred provider plans,

(6) multiple employer welfare arrangements (MEWA), or

(7) employer self-insured plans that are not exempt

pursuant to the federal Employee Retirement

Income Security Act of 1974 (ERISA) provisions,

and

b. the term health benefit plan shall not include:

(1) individual plans,

(2) plans that only provide coverage for a specified

disease, accidental death, or dismemberment for

wages or payments in lieu of wages for a period

during which an employee is absent from work

because of sickness or injury or as a supplement

to liability insurance,

(3) Medicare supplemental policies as defined in

Section 1882(g)(1) of the federal Social Security

Act (42 U.S.C., Section 1395ss),

(4) workers’ compensation insurance coverage,

(5) medical payment insurance issued as a part of a

motor vehicle insurance policy, or

(6) long-term care policies, including nursing home

fixed indemnity policies, unless the Insurance

Commissioner determines that the policy provides

comprehensive benefit coverage sufficient to meet

the definition of a health benefit plan; and

2. “Credentialing” or “recredentialing”, as applied to

physicians and other health care providers, means the process of

accessing and validating the qualifications of such persons to

provide health care services to the beneficiaries of a health

benefit plan. Credentialing or recredentialing may include, but is

not limited to, an evaluation of licensure status, education,

training, experience, competence and professional judgment.

Oklahoma Statutes - Title 36. Insurance Page 952

Credentialing or recredentialing is a prerequisite to the final

decision of a health benefit plan to permit initial or continued

participation by a physician or other health care provider.

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

renewed in this state shall provide for credentialing and

recredentialing of physicians and other health care providers based

on criteria provided in the uniform credentialing application

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

2. Health benefit plans shall make information on such criteria

available to physician and other health care provider applicants,

participating physicians, and other participating health care

providers and shall provide applicants with a checklist of materials

required in the application process.

3. Physicians or other health care providers under

consideration to provide health care services under a health benefit

plan in this state shall apply for credentialing or recredentialing

on the uniform credentialing application and shall provide the

documentation as outlined in the plan’s checklist of materials

required in the application process.

C. A health benefit plan shall determine whether a

credentialing or recredentialing application is complete. If an

application is determined to be incomplete, the plan shall notify

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

the application. The written notice shall specify the portion of

the application that is causing a delay in processing and explain

any additional information or corrections needed.

D. 1. In reviewing the application, the health benefit plan

shall evaluate each application according to the plan’s checklist of

required materials that accompanies the application.

2. When an application is deemed complete, the plan shall

initiate requests for primary source verification and malpractice

history within seven (7) calendar days.

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

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

health benefit plan. Any malpractice carrier that fails to respond

to an inquiry within the time frame may be assessed an

administrative penalty by the Insurance Commissioner.

E. 1. Upon receipt of primary source verification and

malpractice history by the plan, the plan shall determine if the

application is a clean application. If the application is deemed

clean, a plan shall have forty-five (45) calendar days within which

to credential or recredential a physician or other health care

provider. As used in this paragraph, “clean application” means an

application that has no defect, misstatement of facts,

improprieties, including a lack of any required substantiating

documentation, or particular circumstance requiring special

treatment that impedes prompt credentialing or recredentialing.

Oklahoma Statutes - Title 36. Insurance Page 953

2. If a plan is unable to credential or recredential a

physician or other health care provider due to an application not

being clean, the plan may extend the credentialing or

recredentialing process for sixty (60) calendar days. At the end of

sixty (60) calendar days, if the plan is awaiting documentation to

complete the application, the physician or other health care

provider shall be notified of the reason for the delay by certified

mail. The physician or other health care provider may extend the

sixty-day period upon written notice to the plan within ten (10)

calendar days; otherwise the application shall be deemed withdrawn.

In no event shall the entire credentialing or recredentialing

process exceed one hundred eighty (180) calendar days.

3. If an application for credentialing or recredentialing is

denied, the plan shall notify the applicant in writing the reason

for the denial and what corrective actions the applicant may

consider within ten (10) calendar days of the determination to deny

the application.

4. A health benefit plan shall be prohibited from solely basing

a denial of an application for credentialing or recredentialing on

the lack of board certification or board eligibility and from adding

new requirements solely for the purpose of delaying an application.

5. Any health benefit plan that violates the provisions of this

section may be assessed an administrative penalty by the

Commissioner.

F. Within thirty-one (31) days after a provider has been

credentialed by a health benefit plan following the completion of

the credentialing or recredentialing process pursuant to this

section, the health benefit plan shall consider the provider in-

network for purposes of reimbursement.
Okla. Stat. tit. 36, § 36-2814 — OK Code / Title 36 / Section 36-2814
Formation of additional companies prohibited
Status: in_force

No farmers' mutual fire insurance associations shall be formed

after the effective date of this act, nor shall the Insurance

Commissioner after said effective date issue a permit to organize

such an association to or approve any articles of incorporation of

any group of individuals desiring to organize an association or

company under the provisions of this article.
Okla. Stat. tit. 36, § 36-6653 — OK Code / Title 36 / Section 36-6653
Warrantor registration
Status: in_force

A. A person may not operate as a warrantor or represent to the

public that the person is a warrantor unless the person is

registered with the Insurance Department on a form prescribed by the

Insurance Commissioner.

Oklahoma Statutes - Title 36. Insurance Page 1331

B. Warrantor registration records shall be filed annually and

shall be updated within thirty (30) days of any change. The

registration records shall contain the following information:

1. The warrantor’s name, any fictitious names under which the

warrantor does business in the state, principal office address, and

telephone number;

2. The name and address of the warrantor’s agent for service of

process in the state if other than the warrantor;

3. The names of the warrantor’s executive officer or officers

directly responsible for the warrantor’s vehicle protection product

business;

4. The name, address, and telephone number of any

administrators designated by the warrantor to be responsible for the

administration of vehicle protection product warranties in this

state;

5. A copy of the warranty reimbursement insurance policy or

policies or other financial information required by Section 6 of

this act;

6. A copy of each warranty the warrantor proposes to use in

this state; and

7. A statement indicating under which provision of Section 6 of

this act the warrantor qualified to do business in this state as a

warrantor.

C. The Commissioner may charge each registrant a reasonable fee

to offer the cost of processing the registration and maintaining the

records in an amount to be set by rule. The information in

paragraphs 1 and 2 of subsection B of this section shall be made

available to the public.

D. If a registrant fails to register by the renewal deadline,

the Commissioner shall give the registrant written notice of the

failure and the registrant will have thirty (30) days to complete

the renewal of registration before the registrant is suspended from

being registered in this state.

E. An administrator or person who sells or solicits a sale of a

vehicle protection product but who is not a warrantor shall not be

required to register as a warrantor or be licensed under the

insurance laws of this state to sell vehicle protection products.
Okla. Stat. tit. 36, § 36-3005 — OK Code / Title 36 / Section 36-3005
Assets required as condition precedent
Status: in_force

No attorney shall be licensed for the underwriters at a Lloyd's

under this Code unless the net assets, including the guaranty fund

contributed to the attorney, a committee of underwriters, trustees,

or other officers as provided for in the articles of agreement,

shall be at least Two Hundred Thousand Dollars ($200,000.00) in

cash, or other admitted assets.
Okla. Stat. tit. 36, § 36-6060.20 — OK Code / Title 36 / Section 36-6060.20
Equal health coverage for autistic minors
Status: in_force

A. All individual and group health insurance policies that

provide medical and surgical benefits shall provide the same

coverage and benefits to any individual under the age of eighteen

(18) years who has been diagnosed with an autistic disorder as it

would provide coverage and benefits to an individual under the age

of eighteen (18) years who has not been diagnosed with an autistic

disorder.

B. As used in this section, "autistic disorder" means a

neurological disorder that is marked by severe impairment in social

interaction, communication, and imaginative play, with onset during

the first three (3) years of life and is included in a group of

disorders known as autism spectrum disorders.
Okla. Stat. tit. 36, § 36-1225 — OK Code / Title 36 / Section 36-1225
Renumbered as § 1250.11 of this title by Laws 1994, c
Status: in_force

342, § 20, eff. Sept. 1, 1994.
Okla. Stat. tit. 36, § 36-1699 — OK Code / Title 36 / Section 36-1699
Promulgation of rules
Status: in_force

The Insurance Commissioner may promulgate reasonable rules as

may be necessary to effectuate the purposes of the Protected Cell

Companies Act.
Okla. Stat. tit. 36, § 36-6564 — OK Code / Title 36 / Section 36-6564
Examination of affairs of private review agent
Status: in_force

Whenever the Insurance Commissioner deems it to be prudent for

the benefit of the insureds, health care providers, or insurers, the

Commissioner or any person designated by the Commissioner may visit

and examine the affairs of any private review agent to determine if

the agent is in compliance with the provisions of the Hospital and

Medical Services Utilization Review Act or any rules adopted or

orders issued pursuant thereto.

Any person or entity examined pursuant to the provisions of the

Hospital and Medical Services Utilization Review Act shall pay the

proper charges incurred for such examination, including the actual

expenses of the Insurance Commissioner or the expenses and

compensation of his authorized representative and the expenses and

compensation of assistants and examiners employed therein.
Okla. Stat. tit. 36, § 36-2408 — OK Code / Title 36 / Section 36-2408
Reincorporation of existing associations; admission of
Status: in_force

foreign corporations or associations.

Any domestic life or accident corporation, company or

association existing or doing business in this state at the time

this article takes effect, may by a vote of a majority of its board

of directors or trustees, accept the provisions of this article and

amend its articles of incorporation to conform to the same, so as to

cover any and all of the provisions and privileges of this article

the same as if it had been originally incorporated thereunder, and

it shall file 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 incorporated under the 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, company or association had not reincorporated or

qualified under this article, and neither shall such reincorporation

in any way prejudice, impede, or impair any rights or pending action

or proceeding previously acquired; provided, however, that nothing

herein shall prevent any of the members of such corporations,

companies or associations from accepting and coming under the terms

and conditions of such reincorporation and the bylaws of such

association, if they desire to do so. Assessment corporations or

Oklahoma Statutes - Title 36. Insurance Page 670

associations organized under the laws of another state or country

may be admitted to transact business in this state, upon proper

application to the Insurance Commissioner, whenever, in his opinion,

its financial condition is sound and its plan of operation such as

to meet the requirements of this article. Such associations, with

their applications, shall file a copy of their articles of

incorporation or charter, bylaws, policy forms, rates, application

blanks and other forms required by the Commissioner, together with a

copy of the last annual statement and a twenty thousand-dollar bond,

conditioned for the prompt payment of all assessments to parties or

beneficiaries of such company, and shall pay the fees and licenses

required by Article 3 of this Code. There shall also be filed a

power of attorney, designating agent for service of process in form

as now required by legal reserve life insurance companies. If all

requirements are met, the Insurance Commissioner shall issue to such

associations a certificate or license, authorizing it to transact

business in this state, which authority shall expire on March first

following and be renewed on that date annually so long as such

association meets the requirements of this article.
Okla. Stat. tit. 36, § 36-953.1 — OK Code / Title 36 / Section 36-953.1
Exceptions by insurers to certain events influencing
Status: in_force

credit information – Request by insured or applicant.

Oklahoma Statutes - Title 36. Insurance Page 216

A. Notwithstanding any other law or regulation, an insurer that

uses credit information shall, upon written request from an

applicant for insurance coverage or an insured upon a form provided

by the Insurance Commissioner, provide reasonable exceptions to the

rate of the insurer, rating classifications, company or tier

placement or underwriting rules or guidelines for a consumer who has

experienced and whose credit information has been directly

influenced by any of the following events:

1. Catastrophic event declared by the federal or state

government;

2. Serious illness or injury, or serious illness or injury to

an immediate family member;

3. Death of an immediate family member;

4. Divorce or involuntary interruption of legally owed alimony

or support payments;

5. Identity theft;

6. Temporary loss of employment for a period of three (3)

months or more, if it results from involuntary termination;

7. Military deployment overseas; and

8. Other events, as determined by the Insurance Commissioner.

B. If an applicant or insured submits a request for an

exception as provided in subsection A of this section, an insurer

may, in its sole discretion:

1. Require the consumer to provide reasonable written and

independently verifiable documentation of the event;

2. Require the consumer to demonstrate that the event had

direct and meaningful impact on the credit information of the

consumer;

3. Require the request be made no more than sixty (60) days

from the date of the application for insurance or the policy

renewal;

4. Grant an exception despite the consumer not providing the

initial request for an exception in writing; or

5. Grant an exception to requiring a written request where the

consumer asks for a consideration of repeated events or the insurer

has considered this event previously.

C. An insurer is in compliance with any other provision of law

or Insurance Department rule relating to underwriting, rating or

rate filing notwithstanding the granting an exception under this

section. Nothing in this section shall be construed to provide a

consumer or other insured with a cause of action that does not exist

in the absence of this section.

D. The insurer shall provide notice to consumers, either at the

time of acceptance of an insurance application or at policy renewal,

that reasonable exceptions are available and information about how

the consumer may inquire further.
Okla. Stat. tit. 36, § 36-4509.1 — OK Code / Title 36 / Section 36-4509.1
Liability of prior carrier - Eligibility under
Status: in_force

succeeding carrier - Determination of benefits - Election of

coverage.

A. This section applies to determination of the liability of a

carrier pursuant to a group or blanket accident or health insurance

plan in those instances in which the contract of one carrier

replaces a plan of similar benefits of another carrier. As used in

this section, "carrier" means an insurer or other entity subject to

Oklahoma Statutes - Title 36. Insurance Page 988

the provisions of Title 36 of the Oklahoma Statutes, and includes

but is not limited to a not-for-profit hospital service and medical

indemnity corporation, a fraternal benefit society, a health

maintenance organization and a multiple employer welfare

arrangement.

B. The prior carrier shall be liable only to the extent of its

accrued liabilities and extensions of benefits. The position of the

prior carrier shall be the same whether the group policyholder or

other entity responsible for making payments or submitting

subscription charges to the carrier secures replacement coverage

from a new carrier, self-insures, or foregoes the provision of

coverage.

C. Each person who was covered by the plan of the prior carrier

shall be covered by the plan of benefits of the succeeding carrier

conditioned only upon the payment of the premium.

D. The succeeding carrier, in applying any deductibles or

waiting periods in its plan, including but not limited to waiting

periods for preexisting conditions, shall give credit for the

satisfaction or partial satisfaction of the same or similar

provisions under a prior plan providing similar benefits and shall

not impose any additional waiting periods for coverage for any

person who was covered by the plan of the prior carrier. In the

case of deductible provisions, the credit shall apply for the same

or overlapping benefit periods and shall be given for expenses

actually incurred and applied against the deductible provisions of

the prior plan during the ninety (90) days preceding the effective

date of the succeeding plan but only to the extent these expenses

are recognized under the terms of the plan of the succeeding carrier

and are subject to similar deductible provision.

E. If a determination of the benefits of the prior plan is

required and requested by the succeeding carrier, upon receiving

such request, the prior carrier shall furnish a statement of the

benefits available or pertinent information sufficient either to

permit verification of the benefits available under the prior plan

or to permit the determination of the benefits by the succeeding

carrier. For the purposes of this subsection, benefits of the prior

plan shall be determined in accordance with all of the definitions,

conditions, and covered expense provisions of the prior plan and

shall not be subject to the definitions, conditions, and covered

expense provisions of the succeeding plan. The benefit

determination shall be made as if coverage had not been replaced by

the succeeding carrier.

F. Nothing in this section shall prevent an individual from

electing not to be covered under the plan of benefits of the

succeeding carrier.
Okla. Stat. tit. 36, § 36-6850.1 — OK Code / Title 36 / Section 36-6850.1
Notification of deletions in prescription coverage
Status: in_force

Any health benefit plan that provides prescription drug coverage

or contracts with a third party for prescription drug services shall

notify an enrollee presently taking a prescription drug of any

deletions, other than generic substitutions, in the health benefit

plan's prescription drug formulary. Such notification shall be made

Oklahoma Statutes - Title 36. Insurance Page 1379

in writing, or electronically upon request of the enrollee, at least

sixty (60) days prior.

This section does not apply to coverage for a drug that is

determined by a therapeutics committee of the health benefit plan to

be subject to new safety warnings or a safety recall by the Federal

Drug Administration.

As used in this section, "health benefit plan" means any plan or

arrangement as defined in subsection C of Section 6060.4 of Title 36

of the Oklahoma Statutes.
Okla. Stat. tit. 36, § 36-1632 — OK Code / Title 36 / Section 36-1632
Subsidiaries of domestic insurers - Permissible
Status: in_force

investments.

A. A domestic insurer, either by itself or in cooperation with

one or more persons, may organize or acquire one or more

subsidiaries. The subsidiaries may conduct any kind of business or

businesses and their authority to do so shall not be limited by

reason of the fact that they are subsidiaries of a domestic insurer.

B. In addition to investments in common stock, preferred stock,

debt obligations and other securities permitted under all other

sections of Title 36 of the Oklahoma Statutes, a domestic insurer

may also:

1. Invest in common stock, preferred stock, debt obligations

and other securities of one or more subsidiaries, amounts which do

not exceed the lesser of ten percent (10%) of the insurer's assets

or fifty percent (50%) of the insurer's surplus as regards

policyholders, provided that after such investments the insurer's

surplus as regards policyholders will be reasonable in relation to

the insurer's outstanding liabilities and adequate to meet its

financial needs. In calculating the amount of such investments,

investments in domestic or foreign insurance subsidiaries and any

Oklahoma Statutes - Title 36. Insurance Page 452

other entity which provides or arranges for the financing or

provision of health care services or coverage over which the

Commissioner possesses financial solvency and regulatory oversight

authority shall be excluded, and there shall be included:

a. total net monies or other consideration expended and

obligations assumed in the acquisition or formation of

a subsidiary, including all organizational expenses

and contributions to capital and surplus of the

subsidiary whether or not represented by the purchase

of capital stock or issuance of other securities, and

b. all amounts expended in acquiring additional common

stock, preferred stock, debt obligations and other

securities, and all contributions to the capital or

surplus of a subsidiary subsequent to its acquisition

or formation;

2. Invest any amount in common stock, preferred stock, debt

obligations and other securities of one or more subsidiaries engaged

or organized to engage exclusively in the ownership and management

of assets authorized as investments for the insurer provided that

each subsidiary agrees to limit its investments in any asset so that

such investments will not cause the amount of the total investment

of the insurer to exceed any of the investment limitations specified

in paragraph 1 of this subsection or in Sections 1601 through 1629

of Title 36 of the Oklahoma Statutes applicable to the insurer. For

the purpose of this paragraph, "the total investment of the insurer"

shall include:

a. any direct investment by the insurer in an asset, and

b. the insurer's proportionate share of any investment in

an asset by any subsidiary of the insurer, which shall

be calculated by multiplying the amount of the

subsidiary's investment by the percentage of the

ownership of the subsidiary; and

3. With the approval of the Commissioner, invest any greater

amount in common stock, preferred stock, debt obligations or other

securities of one or more subsidiaries, provided that after the

investment the insurer's surplus as regards policyholders will be

reasonable in relation to the insurer's outstanding liabilities and

adequate to its financial needs.

C. Investments in common stock, preferred stock, debt

obligations or other securities of subsidiaries made pursuant to

subsection B of this section shall not be subject to any of the

otherwise applicable restrictions or prohibitions contained in Title

36 of the Oklahoma Statutes applicable to such investments of

insurers.

D. Whether any investment made pursuant to subsection B of this

section meets the requirements of that subsection is to be

determined before the investment is made, by calculating the

Oklahoma Statutes - Title 36. Insurance Page 453

applicable investment limitations as though the investment had

already been made, taking into account the then outstanding

principal balance on all previous investments in debt obligations,

and the value of all previous investments in equity securities as of

the day they were made, net of any return of capital invested, not

including dividends.

E. If an insurer ceases to control a subsidiary, it shall

dispose of any investment therein made pursuant to this section

within three (3) years from the time of the cessation of control or

within such further time as the Commissioner may prescribe, unless

at any time after the investment shall have been made, the

investment shall have met the requirements for investment under any

other section of Title 36 of the Oklahoma Statutes, and the insurer

notifies the Commissioner.
Okla. Stat. tit. 36, § 36-3201 — OK Code / Title 36 / Section 36-3201
Short title
Status: in_force

Sections 22 through 24 of this act shall be known and may be

cited as the "Oklahoma Child Health Insurance Reform Act".
Okla. Stat. tit. 36, § 36-6712 — OK Code / Title 36 / Section 36-6712
Definitions
Status: in_force

As used in the Travel Insurance Act, the term:

1. “Aggregator site” means a website that provides access to

information regarding insurance products from more than one insurer,

including product and insurer information, for use in comparison

shopping;

2. “Blanket travel insurance” means a policy of travel

insurance issued to any eligible group providing coverage for

specific classes of persons defined in the policy, with coverage

provided to all members of the eligible group without a separate

charge to individual members of the eligible group;

3. “Cancellation fee waiver” means a contractual agreement

between a supplier of travel services and its customer to waive some

or all of the nonrefundable cancellation fee provisions of the

supplier’s underlying travel contract, with or without regard to the

reason for the cancellation or form of reimbursement. A

cancellation fee waiver is not insurance;

4. “Commissioner” means the Oklahoma Insurance Commissioner;

5. “Eligible group” means, solely for the purposes of travel

insurance, two or more persons who are engaged in a common

enterprise, or have an economic, educational or social affinity or

relationship including, but not limited to, any of the following:

a. any entity engaged in the business of providing travel

or travel services including, but not limited to, tour

operators, lodging providers, vacation property

owners, hotels and resorts, travel clubs, travel

agencies, property managers, cultural exchange

programs and common carriers or the operator, owner or

Oklahoma Statutes - Title 36. Insurance Page 1346

lessor of a means of transportation of passengers

including, but not limited to, airlines, cruise lines,

railroads, steamship companies and public bus

carriers, wherein with regard to any particular travel

or type of travel or travelers, all members or

customers of the group must have a common exposure to

risk attendant to such travel,

b. any college, school or other institution of learning

covering students, teachers, employees or volunteers,

c. any employer covering any group of employees,

volunteers, contractors, board of directors,

dependents or guests,

d. any sports team, camp or sponsor thereof covering

participants, members, campers, employees, officials,

supervisors or volunteers,

e. any religious, charitable, recreational, educational

or civic organization or branch thereof covering any

group of members, participants or volunteers,

f. any financial institution or financial institution

vendor, or parent holding company, trustee or agent of

or designated by one or more financial institutions or

financial institution vendors, including

accountholders, credit card holders, debtors,

guarantors or purchasers,

g. any incorporated or unincorporated association,

including labor unions, having a common interest,

constitution and bylaws and organized and maintained

in good faith for purposes other than obtaining

insurance for members or participants of such

association covering its members,

h. any trust or the trustees of a fund established,

created or maintained for the benefit of and covering

members, employees or customers, subject to the

permission of the Insurance Commissioner, the use of a

trust and the state’s premium tax provisions in

Section 6714 of this title of one or more associations

meeting the above requirements of this paragraph,

i. any entertainment production company covering any

group of participants, volunteers, audience members,

contestants or workers,

j. any volunteer fire department, ambulance, rescue,

police, court or any first aid, civil defense or other

such volunteer group,

k. preschools, daycare institutions for children or

adults and senior citizen clubs,

l. any automobile or truck rental or leasing company

covering a group of individuals who may become

Oklahoma Statutes - Title 36. Insurance Page 1347

renters, lessees or passengers defined by their travel

status on the rented or leased vehicles. The common

carrier, the operator, owner or lessor of a means of

transportation or the automobile or truck rental or

leasing company is the policyholder under a policy to

which this paragraph applies, or

m. any other group where the Commissioner has determined

that the members are engaged in a common enterprise,

or have an economic, educational or social affinity or

relationship, and that issuance of the policy would

not be contrary to the public interest;

6. “Fulfillment materials” means documentation sent to the

purchaser of a travel protection plan confirming the purchase and

providing the coverage and assistance details of the travel

protection plan;

7. “Group travel insurance” means travel insurance issued to

any eligible group;

8. “Limited lines travel insurance producer” means a:

a. licensed managing general agent or third-party

administrator,

b. licensed insurance producer, including a limited lines

producer, or

c. travel administrator;

9. “Offer and disseminate” means providing general information,

including a description of the coverage and price, as well as

processing the application and collecting premiums;

10. “Travel administrator” means a person who directly or

indirectly underwrites, collects charges, collateral or premiums

from or adjusts or settles claims on residents of this state, in

connection with travel insurance, except that a person shall not be

considered a travel administrator if he or she is:

a. a person working for a travel administrator whose

activities are subject to the supervision and control

of the travel administrator,

b. an insurance producer selling insurance or engaged in

administrative and claims-related activities within

the scope of the license of the producer,

c. a travel retailer offering and disseminating travel

insurance and registered under the license of a

limited lines travel insurance producer in accordance

with the Travel Insurance Act,

d. an individual adjusting or settling claims in the

normal course of practice or employment of the

individual as an attorney-at-law and who does not

collect charges or premiums in connection with

insurance coverage, or

Oklahoma Statutes - Title 36. Insurance Page 1348

e. a business entity that is affiliated with a licensed

insurer while acting as a travel administrator for the

direct and assumed insurance business of an affiliated

insurer;

11. “Travel assistance services” means noninsurance services

for which the consumer is not indemnified based on a fortuitous

event, and where providing the services does not result in transfer

or shifting of risk that would constitute the business of insurance.

Travel assistance services include, but are not limited to: security

advisories; destination information; vaccination and immunization

information services; travel reservation services; entertainment;

activity and event planning; translation assistance; emergency

messaging; international legal and medical referrals; medical case

monitoring; coordination of transportation arrangements; emergency

cash transfer assistance; medical prescription replacement

assistance; passport and travel document replacement assistance;

lost luggage assistance; concierge services; and any other service

that is furnished in connection with planned travel. Travel

assistance services are not insurance and not related to insurance;

12. “Travel insurance” means insurance coverage for personal

risks incident to planned travel, including:

a. interruption or cancellation of trip or event,

b. loss of baggage or personal effects,

c. damages to accommodations or rental vehicles,

d. sickness, accident, disability or death occurring

during travel,

e. emergency evacuation,

f. repatriation of remains, or

g. any other contractual obligations to indemnify or pay

a specified amount to the traveler upon determinable

contingencies related to travel as approved by the

Commissioner.

Travel insurance shall not include major medical plans that provide

comprehensive medical protection for travelers with trips lasting

longer than six (6) months including, but not limited to, those

working or residing overseas as an expatriate, or any other product

that requires a specific insurance producer license;

13. “Travel protection plans” means plans that provide one or

more of the following: travel insurance, travel assistance services

and cancellation fee waivers; and

14. “Travel retailer” means a business entity that makes,

arranges or offers planned travel and may offer and disseminate

travel insurance as a service to its customers on behalf of and

under the direction of a limited lines travel insurance producer.
Okla. Stat. tit. 36, § 36-6470.6 — OK Code / Title 36 / Section 36-6470.6
Unimpaired paid-in capital requirements – Branch
Status: in_force

companies – Trust funds – Dividends and distributions – Approval

required.

A. The Insurance Commissioner may not issue or renew the

license of a captive insurance company unless the company possesses

Oklahoma Statutes - Title 36. Insurance Page 1216

and thereafter maintains unimpaired aggregate paid-in capital and

surplus of:

1. In the case of a pure captive insurance company, not less

than Two Hundred Fifty Thousand Dollars ($250,000.00), One Hundred

Fifty Thousand Dollars ($150,000.00) of which must be paid-in prior

to the issuance of a license, and an additional One Hundred Thousand

Dollars ($100,000.00) of which must be paid-in on or before the

first anniversary of the issuance of the initial license;

2. In the case of an association captive insurance company

incorporated as a stock insurer, not less than Seven Hundred Fifty

Thousand Dollars ($750,000.00);

3. In the case of an industrial insured captive insurance

company incorporated as a stock insurer, not less than Five Hundred

Thousand Dollars ($500,000.00);

4. In the case of a sponsored captive insurance company, not

less than Five Hundred Thousand Dollars ($500,000.00);

5. In the case of any captive insurance company doing business

as a risk retention group, not less than One Million Dollars

($1,000,000.00); and

6. In the case of a special purpose or branch captive insurance

company, not less than Two Hundred Fifty Thousand Dollars

($250,000.00) or an amount determined by the Insurance Commissioner

after giving due consideration to the business plan of the company,

feasibility study, and pro formas, including the nature of the risks

to be insured;

7. In the case of a series captive insurance company, the

minimum capital and surplus shall be in an amount specified by the

Insurance Commissioner; and

8. The unimpaired paid-in capital may be in the form of cash,

cash equivalent, or an irrevocable letter of credit issued by a bank

chartered by this state or a member bank of the Federal Reserve

System. The issuing bank shall be approved by the Insurance

Commissioner.

B. The Insurance Commissioner may prescribe additional capital

and surplus based upon the type, volume, and nature of insurance

business transacted.

C. In the case of a branch captive insurance company, as

security for the payment of liabilities attributable to branch

operations, the Insurance Commissioner may require that a trust

fund, funded by an irrevocable letter of credit or other acceptable

asset, be established and maintained in the United States for the

benefit of United States policyholders and United States ceding

insurers. The amount of the security may be no less than the

capital and surplus required by the Oklahoma Captive Insurance

Company Act and the reserves on these insurance policies or

reinsurance contracts.

Oklahoma Statutes - Title 36. Insurance Page 1217

D. A captive insurance company may not pay a dividend out of,

or other distribution with respect to, capital or surplus, without

the prior approval of the Insurance Commissioner. Approval of an

ongoing plan for the payment of dividends or other distributions

must be conditioned upon the retention, at the time of each payment,

of capital or surplus in excess of amounts specified by, or

determined in accordance with formulas approved by, the Insurance

Commissioner.
Okla. Stat. tit. 36, § 36-3630 — OK Code / Title 36 / Section 36-3630
Claims administration not waiver
Status: in_force

Without limitation of any right or defense of an insurer

otherwise, none of the following acts by or on behalf of an insurer

shall be deemed to constitute a waiver of any provision of a policy

or of any defense of the insurer thereunder:

Oklahoma Statutes - Title 36. Insurance Page 799

1. Acknowledgment of the receipt of notice of loss or claim

under the policy.

2. Furnishing forms for reporting a loss or claim, for giving

information relative thereto, or for making proof of loss, or

receiving or acknowledging receipt of any such forms or proofs

completed or uncompleted.

3. Investigating any loss or claim under any policy or engaging

in negotiations looking toward a possible settlement of any such

loss or claim.
Okla. Stat. tit. 36, § 36-2674 — OK Code / Title 36 / Section 36-2674
Deposit for protection of subscribers
Status: in_force

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

have on deposit with the Insurance Commissioner the sum of Fifteen

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

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

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

collected during the preceding calendar year, until the deposit of

such corporation reaches a total of Twenty-five Thousand Dollars

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

Oklahoma Statutes - Title 36. Insurance Page 701

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

corporation making the deposit.

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

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

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

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

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

held by the Commissioner as provided for original deposits. The

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

for similar securities or cash of equal amount. Interest on

securities so deposited shall be payable to the corporation

depositing the same.

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

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

deposit prescribed by this section, subject to execution after

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

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

D. Upon the liquidation or dissolution of such corporation and

the satisfaction of all its liabilities, any balance remaining in

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

the insurer shall be distributed in the manner directed by the

directors of the dental service corporation.
Okla. Stat. tit. 36, § 36-1435.28 — OK Code / Title 36 / Section 36-1435.28
Ownership interest by producer in policy – Insurable
Status: in_force

interest.

It shall be unlawful for any insurance producer to receive an

ownership interest in any policy, by assignment or otherwise, unless

the insurance producer has an insurable interest in the life of the

insured.
Okla. Stat. tit. 36, § 36-4030.10 — OK Code / Title 36 / Section 36-4030.10
Statement required when certain benefits not provided
Status: in_force

A contract that does not provide cash surrender benefits or does

not provide death benefits at least equal to the minimum

nonforfeiture amount prior to the commencement of any annuity

payments shall include a statement in a prominent place in the

contract that such benefits are not provided.
Okla. Stat. tit. 36, § 36-2726.1 — OK Code / Title 36 / Section 36-2726.1
Reports
Status: in_force

A. Reports shall be filed in accordance with the following

provisions:

1. Every society transacting business in this state shall

annually, on or before the first day of March, unless for cause

shown such time has been extended by the Insurance Commissioner,

file with the Commissioner a true statement of its financial

condition, transactions and affairs for the preceding calendar year

and pay the fee therefor stated in Section 321 of this title. The

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

National Association of Insurance Commissioners for fraternal

benefit societies as supplemented by the Commissioner by rule.

2. As part of the annual statement herein required, each

society shall, on or before the first day of March, file with the

Commissioner a valuation of its certificates in force on the

immediately preceding December 31; provided, the Commissioner may,

in his or her discretion for cause shown, extend the time for filing

such valuation for not more than two (2) calendar months. Such

valuation shall be done in accordance with the standards specified

in Section 2725.1 of this title. Such valuation and underlying data

shall be certified by a qualified actuary or, at the expense of the

Oklahoma Statutes - Title 36. Insurance Page 729

society, verified by the actuary of the department of insurance of

the state of domicile of the society.

B. A society neglecting to file the annual statement in the

form and within the time provided by this section shall forfeit One

Hundred Dollars ($100.00) for each day during which such neglect

continues, and, on notice by the Insurance Commissioner to that

effect, its authority to do business in this state shall cease while

such default continues.
Okla. Stat. tit. 36, § 36-2711.1 — OK Code / Title 36 / Section 36-2711.1
Articles of incorporation, constitution and laws -
Status: in_force

Amendments.

A. A domestic society may amend its laws in accordance with the

provisions thereof by action of its supreme governing body at any

regular or special meeting thereof or, if its laws so provide, by

referendum. The referendum may be held in accordance with the

provisions of its laws by the vote of delegates or representatives

of voting members or by the vote of local lodges. A society may

provide for voting by mail. No amendment submitted for adoption by

referendum shall be adopted unless, within six (6) months from the

date of the submission thereof, a majority of the members voting

shall have signified their consent to such amendment by one of the

methods herein specified.

B. No amendment to the laws of any domestic society shall take

effect unless approved by the Insurance Commissioner who shall

approve such amendment if the Commissioner finds that it has been

duly adopted and is not inconsistent with any requirement of the

laws of this state or with the character, objects and purposes of

the society. Unless the Commissioner shall disapprove any such

amendment within sixty (60) days after the filing of same, such

amendment shall be considered approved. The approval or disapproval

of the Commissioner shall be in writing and mailed to the secretary

or corresponding officer of the society at its principal office. In

case the Commissioner disapproves such amendment, the reasons

therefor shall be stated in such written notice.

Oklahoma Statutes - Title 36. Insurance Page 719

C. Within ninety (90) days from the approval thereof by the

Commissioner, all such amendments, or a synopsis thereof, shall be

furnished to all members of the society either by mail or by

publication in full in the official publication of the society. The

affidavit of any officer of the society or of anyone authorized by

it to mail any amendments or synopsis thereof, stating facts which

show that same have been duly addressed and mailed, shall be prima

facie evidence that such amendments or synopsis thereof, have been

furnished the addressee.

D. Every foreign or alien society authorized to do business in

this state shall file with the Commissioner a duly certified copy of

all amendments of, or additions to, its laws within ninety (90) days

after enactment.

E. Printed copies of the laws as amended, certified by the

secretary or corresponding officer of the society, shall be prima

facie evidence of the legal adoption thereof.
Okla. Stat. tit. 36, § 36-6045 — OK Code / Title 36 / Section 36-6045
Reimbursement for mental or behavioral health or alcohol
Status: in_force

or drug treatment services.

Notwithstanding any provision of any individual or group policy,

contract, plan or agreement of accident and/or health insurance or

any provisions of a policy, contract, plan or agreement for hospital

or medical service or indemnity, whenever such policy, contract,

plan or agreement provides for reimbursement for any mental or

behavioral health or alcohol and drug treatment service which is

within the lawful scope of practice of a duly licensed physician,

physician assistant, licensed clinical social worker, licensed

professional counselor, licensed marriage and family therapist,

licensed alcohol and drug counselor, licensed behavioral

practitioner, licensed psychologist, or advance practice registered

nurse, the person entitled to benefits, or the person performing

services, under such policy, contract, plan or agreement shall be

entitled to reimbursement on an equitable basis for such service at

a rate commensurate with the requirements for their licensure.
Okla. Stat. tit. 36, § 36-2409 — OK Code / Title 36 / Section 36-2409
Agents - Notice of appointment
Status: in_force

No mutual benefit association shall employ paid agents without

first filing notice of appointment with the Insurance Commissioner

and paying the fees therefor stated in Section 348.1, Article 3 of

this Code; provided, that nothing herein shall prevent such

associations granting members inducements to procure new members, as

provided by law relating to fraternal beneficiary associations.
Okla. Stat. tit. 36, § 36-1217 — OK Code / Title 36 / Section 36-1217
Prohibitions and regulations relating to insurers, agents
Status: in_force

of insurers, representatives of insurers and brokers - Group

insurance and group annuity contracts exempt.

In accordance with the purpose expressed in Section 1 of this

act, insurers, agents of insurers, representatives of insurers and

brokers shall be subject to the following prohibitions and

regulations:

1. No insurer, agent of an insurer or representative of an

insurer shall deliver within this state, or issue for delivery

within this state, any policy of life insurance or annuity contract

which uses as its name or title a phrase which does not include the

words, "Life Insurance" or "Annuity Contract" unless such phrase is

accompanied by other language elsewhere in the policy or contract

which indicates that it is a life insurance policy or annuity

contract;

2. The use of the terms "Investment," "Investment Plan,"

"Expansion Plan," "Profit," "Profit-sharing" and similar terms in

connection with a policy of life insurance or an annuity contract,

in a context or under such circumstances or conditions as to have

the capacity or tendency to mislead a purchaser or prospective

purchaser of such policy or contract to believe that he will

receive, or that it is possible that he will receive, something

other than a life insurance policy or annuity contract or some

benefit not provided in the policy or contract or some benefit not

available to other persons of the same class and equal expectation

of life, is unlawful and is prohibited;

Oklahoma Statutes - Title 36. Insurance Page 285

3. No insurer, agent or broker shall within this state:

a. make any statement or reference relating to the

growth of the life insurance industry in connection with any

solicitation of an application for life insurance or annuity

contract in a context which could reasonably be understood to

interest a prospect in the purchase of shares of stock in an insurer

rather than in the purchase of a life insurance policy or annuity

contract,

b. make any statement which reasonably gives rise to

the inference that an insured or a prospective insured, by virtue of

purchasing a policy of life insurance or an annuity contract, will

enjoy a status common to a stockholder or will acquire a stock

ownership interest in the insurer; provided, however, that nothing

in this paragraph is intended to prohibit the practice of pointing

out those aspects in which the status of a policyholder in a mutual

life insurer is similar to that of a stockholder in a stock life

insurer,

c. make any reference to or statement concerning an

insurer's "Investment Department," "Insured Investment Department"

or similar terminology, in such a manner as to imply that the policy

was sold or issued by the investment department of the life insurer,

d. make any statement or reference which would

reasonably tend to imply that, by purchasing a policy, the purchaser

or prospective purchaser will become a member of a limited group of

persons who may receive special advantages or favored treatment in

the payment of dividends, unless such benefits are specifically

provided in the insurance contract. This paragraph shall not apply

to policies under which insured persons of one class of risk may

receive dividends at a higher rate than persons of another class of

risk,

e. state or imply that a particular kind of policy

is available for only a limited time or that only a limited number

of a particular kind of policy will be offered for sale or that only

a limited number of persons, or a limited class of persons, will be

eligible to buy a particular kind of policy, unless such limitation

is specifically provided in the insurance contract,

f. state or imply that policyholders who are said to

act as "centers of influence" or as an advisory board for an insurer

will share, because of so acting, in the insurer's surplus earnings

in some manner not available to other policyholders who are

otherwise in the same class,

g. describe or refer to premium payments in language

which states that the payment is a "deposit" unless:

(1) the payment sets up a debtor-creditor

relationship between the life insurance company and the policyholder

and a showing is made as to when and how the deposit may be

withdrawn,

Oklahoma Statutes - Title 36. Insurance Page 286

(2) the term is used in conjunction with the

word "premium" in such a manner as to indicate clearly the true

character of the payment, or

(3) the term is used in connection with pension

trust or deposit administration plans,

h. use the words "dividends," "cash dividends,"

"surplus" or similar phrases in such a manner as to state or imply

that the payment of dividends is guaranteed or certain to occur,

i. state or imply that a purchaser of a policy will

share in a stated percentage or portion of the earnings of the

insurer. Nothing in this paragraph is intended to prohibit a

representation that a holder of a participating life insurance

policy or annuity contract will participate in the share of the

divisible surplus, if any, apportioned to the policy or contract by

the insurer,

j. make any statement or implication that dividends

under a participating policy will be sufficient at any time to

assure the receipt of benefits, such as a paid-up policy, without

the further payment of premiums, unless the statement is accompanied

by an adequate explanation as to what benefits or coverage would be

provided at such time and the conditions under which this would

occur,

k. state that the insured is guaranteed certain

benefits if the policy is allowed to lapse without making an

adequate explanation of the nonforfeiture benefits,

l. describe a life insurance policy or annuity

contract or premium payments therefor in terms of "units of

participation" unless accompanied by other language clearly

indicating the reference to a life insurance policy or annuity

contract or to premium payments, as the case may be,

m. include in sales kits and prepared sales

presentations proposed answers to a prospect's questions as to

whether life insurance policies or annuity contracts are being sold,

which are designed to avoid a clear and unequivocal statement that

life insurance or annuities are the subject matter of the

solicitation,

n. display in any manner to a prospective

policyholder any material which includes illustrations, using dollar

amounts, in connection with the proposed sale of a life insurance or

annuity contract unless the printed material clearly identifies that

the subject, to which the dollar amounts pertain, has an economic

relationship to guaranteed values and dividends of the policy,

o. make any general statement that an insurer makes

a profit as a result of policy lapses or surrenders,

p. make comparisons to the past experience of other

life insurers as a means of projecting possible experience of the

soliciting insurer when those comparisons are designed to enhance

Oklahoma Statutes - Title 36. Insurance Page 287

the characteristics of the policy being sold by confining the

comparisons to insurers having favorable experience with that type

of policy without a fair disclosure of other insurers which have had

unfavorable experience with such type of policy,

q. state that a policy contains certain features

which are not found in other life insurance policies or annuity

contracts, unless that be true,

r. represent an option to purchase insurance in the

future in such a manner that the policyholder might reasonably infer

that he is purchasing term insurance or some other form of life

insurance that would result in a payment to the beneficiary in the

event of the death of the policyholder, or

s. make any reference to a policy of life insurance

or an annuity contract in such a manner as to misrepresent the true

nature of the policy contract;

4. No insurer, agent for an insurer or representative for an

insurer shall, as a competitive or "twisting" device, inform any

policyholder or prospective policyholder that any other insurer is

required to change a policy form or related material to comply with

the provisions of this act; and

5. This section shall not apply to group insurance policies

nor to group annuity contracts.
Okla. Stat. tit. 36, § 36-4101.1 — OK Code / Title 36 / Section 36-4101.1
Extension of policies to insure dependents - Payment of
Status: in_force

premiums - Conversion rights.

A. Insurance under any group life insurance policy issued

pursuant to paragraphs 1, 3, 4, 5 and 6 of Section 4101 of this

title, may be extended to insure the dependents, or any class or

classes thereof, of each insured employee or member who so elects in

amounts in accordance with a plan which precludes individual

selection. The term "dependent" means the spouse of the insured

employee or member or an insured employee's or member's child under

twenty-six (26) years of age or his or her child twenty-six (26)

years or older who is attending an educational institution and

relying upon the insured employee or member for financial support.

B. Premiums for the insurance on such dependents shall be paid

by the policyholder either wholly from policyholder's funds, or from

funds contributed wholly by the employees or members, or partly from

funds contributed by the policyholder and partly by the employees or

members.

C. A dependent pursuant to this section shall have the same

conversion right as to the insurance on his or her life as is vested

in the employee or union member.

D. Notwithstanding the provisions of paragraph 7 of Section

4103 of this title, only one certificate need be issued for each

family unit if a statement concerning any dependent's coverage is

included in such certificate.
Okla. Stat. tit. 36, § 36-624 — OK Code / Title 36 / Section 36-624
Report of premiums, fees and taxes - Payment - Penalties
Status: in_force

A. Every insurance company, copartnership, insurance

association, interinsurance exchange, person, insurer, nonprofit

hospital service and medical indemnity corporation, or health

maintenance organization doing business in this state in the

execution or exchange of contracts of insurance, indemnity or health

maintenance services, or as an insurance company of any nature or

character whatsoever, hereinafter referred to in this article as an

insurance company or company, shall annually, on or before the first

day of March, report under oath of the president or secretary or

other chief officer of such company to the Insurance Commissioner

Oklahoma Statutes - Title 36. Insurance Page 138

the total amount of direct written premiums, membership,

application, policy and/or registration fees charged during the

preceding calendar year, or since the last return of such direct

written premiums, membership, application, policy and/or

registration fees was made by such company, from insurance of every

kind upon persons or on the lives of persons resident in this state,

or upon real and personal property located within this state, and/or

upon any other risks insured within this state; provided, that with

respect to the tax payable annually, considerations received for

annuity contracts and payments received by a health maintenance

organization from the Secretary of Health and Human Services

pursuant to a contract issued under the provisions of 42 U.S.C.,

Section 1395mm(g) shall no longer be deemed to be premiums for

insurance and shall no longer be subject to the tax imposed by this

section. Every such company shall, at the same time, pay to the

Insurance Commissioner:

1. An annual license fee as prescribed by Section 321 of this

title; and

2. An annual tax on all of the direct written premiums after

all returned premiums are deducted, and on all membership,

application, policy and/or registration fees, installment and/or

finance fees or charges collected thereby, for the privileges of

having written, continued and/or serviced insurance on lives,

property and/or other risks in this state and of having made and

serviced investments therein during the then expiring license year

except premiums or fees paid by any county, city, town or school

district funds or by their duly constituted authorities performing a

public service organized pursuant to Sections 1001 through 1008 of

Title 74 of the Oklahoma Statutes, or Sections 176 through 180.4 of

Title 60 of the Oklahoma Statutes. Provided, no deduction shall be

made from premiums for dividends paid to policyholders. Except as

set forth in this paragraph, the rate of taxation for all entities

subject to the tax shall be two and twenty-five one-hundredths

percent (2.25%). If any insurance company or other entity liable

for the taxes levied pursuant to the provisions of this section

fails to remit such taxes in a timely manner, it shall remain liable

therefor together with interest thereon at an annual rate equal to

the average United States Treasury Bill rate of the preceding

calendar year as certified by the State Treasurer on the first

regular business day in January of each year, plus four percentage

points.

a. The rate of taxation for all life insurance policies

insuring the life of an employee or director for the

benefit of the employer or a trust sponsored by the

employer, which is purchased by the employer or trust

sponsored by the employer for the benefit of its

Oklahoma Statutes - Title 36. Insurance Page 139

employees, shall be computed for each policy at the

rate of:

(1) two and twenty-five one-hundredths percent

(2.25%) of policy year premium up to One Hundred

Thousand Dollars ($100,000.00), and

(2) one-tenth of one percent (1/10 of 1%) of policy

year premium exceeding One Hundred Thousand

Dollars ($100,000.00).

b. Premiums on which taxes are paid under division (2) of

subparagraph a of this paragraph are not subject to

Section 628 of this title. The Commissioner shall

promulgate rules regarding the sale of life insurance

policies subject to division (2) of subparagraph a of

this paragraph.

c. Proceeds from the premium tax collected under this

paragraph from contracted entities under the Ensuring

Access to Medicaid Act shall be deposited in the

Medicaid Health Improvement Revolving Fund created in

Section 1010.8A of Title 56 of the Oklahoma Statutes.

Notwithstanding any other provision of law to the

contrary, the premium taxes to be deposited in the

Medicaid Health Improvement Revolving Fund for the

calendar year ending December 31, 2024, and for each

calendar year thereafter, shall not be subject to the

apportionments provided in Section 312.1 of this

title.

B. For all insurance companies or other entities taxed pursuant

to this section, the annual license fee and tax and all required

membership, application, policy, registration, and agent appointment

fees shall be in lieu of all other state taxes or fees, except those

taxes and fees provided for in the Oklahoma Insurance Code, and the

taxes and fees of any subdivision or municipality of the state,

except ad valorem taxes and the tax required to be paid pursuant to

Section 50001 of Title 68 of the Oklahoma Statutes. Provided, such

license fee, tax and membership, application, policy, registration,

and appointment fees shall be in lieu of any and all ad valorem

taxes levied on intangible personal property. Any company, except

health maintenance organizations, failing to make such returns and

payments promptly and correctly shall forfeit and pay to the

Insurance Commissioner, in addition to the amount of the taxes and

fees and interest, the sum of Five Hundred Dollars ($500.00) or an

amount equal to one percent (1%) of the unpaid amount, whichever is

greater; and the company so failing or neglecting for sixty (60)

days shall thereafter be debarred from transacting any business of

insurance in this state until the taxes, fees and penalties are

fully paid, and the Insurance Commissioner shall revoke the license

or certificate of authority granted to the agent or agents of that

Oklahoma Statutes - Title 36. Insurance Page 140

company to transact business in this state. Provided, that when any

such insurance company, copartnership, insurance association,

interinsurance exchange, person, insurer, or nonprofit hospital

service and indemnity corporation applies for the first time for a

license to do business in this state, it shall, at the time of

making such application, pay a license fee as prescribed by Section

1435.23 of this title, and, on or before the first day of March,

following, pay the premium tax, membership, application, policy,

registration, and agent appointment fees, as hereinbefore provided.

Such license fee, tax and membership, application, policy,

registration, and appointment fees shall be in lieu of all other

state taxes or fees, except those taxes and fees provided for in the

Oklahoma Insurance Code, and the taxes and fees of any subdivision

or municipality of the state, except ad valorem taxes and the tax

required to be paid pursuant to Section 50001 of Title 68 of the

Oklahoma Statutes.

C. Any health maintenance organization failing to file premium

tax returns and payments promptly and correctly shall forfeit and

pay to the Insurance Commissioner, in addition to the amount of the

taxes, the sum of Five Hundred Dollars ($500.00) or an amount equal

to one percent (1%) of the unpaid amount, whichever is greater. Any

health maintenance organization failing or neglecting to pay the tax

and penalty shall be debarred from operating in this state and the

Insurance Commissioner shall revoke the license of the health

maintenance organization, until such taxes and penalties are fully

paid.
Okla. Stat. tit. 36, § 36-4030.7 — OK Code / Title 36 / Section 36-4030.7
Cash surrender benefits prior to maturity
Status: in_force

For contracts that provide cash surrender benefits, the cash

surrender benefits available prior to maturity shall not be less

than the present value as of the date of surrender of that portion

of the maturity value of the paid-up annuity benefit that would be

provided under the contract at maturity arising from considerations

paid prior to the time of cash surrender reduced by the amount

appropriate to reflect any prior withdrawals from or partial

surrenders of the contract, such present value being calculated on

the basis of an interest rate not more than one percent (1%) higher

than the interest rate specified in the contract for accumulating

the net considerations to determine maturity value, decreased by the

amount of any indebtedness to the company on the contract, including

interest due and accrued, and increased by any existing additional

amounts credited by the company to the contract. In no event shall

any cash surrender benefit be less than the minimum nonforfeiture

amount at that time. The death benefit under such contracts shall

be at least equal to the cash surrender benefit.
Okla. Stat. tit. 36, § 36-6475.13 — OK Code / Title 36 / Section 36-6475.13
Eligibility requirements
Status: in_force

A. To be approved under Section 6475.12 of this title to

conduct external reviews, an independent review organization shall

have and maintain written policies and procedures that govern all

aspects of both the standard external review process and the

expedited external review process set forth in this act that

include, at a minimum:

1. A quality assurance mechanism in place that:

a. ensures that external reviews are conducted within the

specified time frames and required notices are

provided in a timely manner,

b. ensures the selection of qualified and impartial

clinical reviewers to conduct external reviews on

behalf of the independent review organization and

suitable matching of reviewers to specific cases and

that the independent review organization employs or

contracts with an adequate number of clinical

reviewers to meet this objective,

c. ensures the confidentiality of medical and treatment

records and clinical review criteria, and

d. ensures that any person employed by or under contract

with the independent review organization adheres to

the requirements of the Uniform Health Carrier

External Review Act;

2. A toll-free telephone service to receive information on a

twenty-four-hour-a-day, seven-day-a-week basis related to external

reviews that is capable of accepting, recording or providing

appropriate instruction to incoming telephone callers during other

than normal business hours; and

3. Agree to maintain and provide to the Insurance Commissioner

the information set out in Section 6475.15 of this title.

Oklahoma Statutes - Title 36. Insurance Page 1267

B. All clinical reviewers assigned by an independent review

organization to conduct external reviews shall be physicians or

other appropriate health care providers who meet the following

minimum qualifications:

1. Be an expert in the treatment of the covered person's

medical condition that is the subject of the external review;

2. Be knowledgeable about the recommended health care service

or treatment through recent or current actual clinical experience

treating patients with the same or similar medical condition of the

covered person;

3. Hold a nonrestricted license in a state of the United States

and, for physicians, a current certification by a recognized

American medical specialty board in the area or areas appropriate to

the subject of the external review; and

4. Have no history of disciplinary actions or sanctions,

including loss of staff privileges or participation restrictions,

that have been taken or are pending by any hospital, governmental

agency or unit, or regulatory body that raise a substantial question

as to the clinical reviewer's physical, mental or professional

competence or moral character.

C. In addition to the requirements set forth in subsection A of

this section, an independent review organization may not own or

control, be a subsidiary of or in any way be owned or controlled by,

or exercise control with a health benefit plan, a national, state or

local trade association of health benefit plans, or a national,

state or local trade association of health care providers.

D. 1. In addition to the requirements set forth in subsections

A, B and C of this section, to be approved pursuant to Section

6475.12 of this title to conduct an external review of a specified

case, neither the independent review organization selected to

conduct the external review nor any clinical reviewer assigned by

the independent organization to conduct the external review may have

a material professional, familial or financial conflict of interest

with any of the following:

a. the health carrier that is the subject of the external

review,

b. the covered person whose treatment is the subject of

the external review or the covered person's authorized

representative,

c. any officer, director or management employee of the

health carrier that is the subject of the external

review,

d. the health care provider, the health care provider's

medical group or independent practice association

recommending the health care service or treatment that

is the subject of the external review,

Oklahoma Statutes - Title 36. Insurance Page 1268

e. the facility at which the recommended health care

service or treatment would be provided, or

f. the developer or manufacturer of the principal drug,

device, procedure or other therapy being recommended

for the covered person whose treatment is the subject

of the external review.

2. In determining whether an independent review organization or

a clinical reviewer of the independent review organization has a

material professional, familial or financial conflict of interest

for purposes of paragraph 1 of this subsection, the Commissioner

shall take into consideration situations where the independent

review organization to be assigned to conduct an external review of

a specified case or a clinical reviewer to be assigned by the

independent review organization to conduct an external review of a

specified case may have an apparent professional, familial or

financial relationship or connection with a person described in

paragraph 1 of this subsection, but that the characteristics of that

relationship or connection are such that they are not a material

professional, familial or financial conflict of interest that

results in the disapproval of the independent review organization or

the clinical reviewer from conducting the external review.

E. In addition to the requirements set forth in subsections A,

B, C and D of this section, an independent review organization shall

possess any additional minimum qualifications that the Insurance

Commissioner may promulgate by rule.

F. 1. An independent review organization that is accredited by

a nationally recognized private accrediting entity that has

independent review accreditation standards that the Commissioner has

determined are equivalent to or exceed the minimum qualifications of

this section shall be presumed in compliance with this section to be

eligible for approval under Section 6475.12 of this title. If a

nationally recognized private accrediting entity has independent

review accreditation standards that are substantially similar to but

do not equal or exceed the minimum qualifications of this section,

the Commissioner may accept the accreditation as an equivalent

accreditation standard after reviewing for compliance any minimum

qualifications required by this section that are not required by the

national accreditation.

2. The Commissioner shall initially review and periodically

review the independent review organization accreditation standards

of a nationally recognized private accrediting entity to determine

whether the entity's standards are, and continue to be, equivalent

to or exceed the minimum qualifications established under this

section. The Commissioner may accept a review conducted by the NAIC

for the purpose of the determination under this paragraph.

3. Upon request, a nationally recognized private accrediting

entity shall make its current independent review organization

Oklahoma Statutes - Title 36. Insurance Page 1269

accreditation standards available to the Commissioner or the NAIC in

order for the Commissioner to determine if the entity's standards

are equivalent to or exceed the minimum qualifications established

under this section. The Commissioner may exclude any private

accrediting entity that is not reviewed by the NAIC.

G. An independent review organization shall be unbiased. An

independent review organization shall establish and maintain written

procedures to ensure that it is unbiased in addition to any other

procedures required under this section.
Okla. Stat. tit. 36, § 36-4034 — OK Code / Title 36 / Section 36-4034
Application for insurance - Statement required -
Status: in_force

Replacement policy.

A. Every insurer operating in this state shall inform its

agents of the provisions of this section.

B. Every agent shall secure with or as a part of each

application for insurance a statement as to whether the new

insurance policy or annuity policy will replace an existing

insurance policy or annuity policy on the same life.

C. The insurer shall review each statement prior to commencing

any underwriting. The review shall occur not later than five (5)

days after receipt of the application by the insurer to determine if

the policy is a replacement policy. If the insurer determines that

the policy is a replacement policy and if the agent has not secured

and forwarded the documents required by the provisions of subsection

D of this section to the insurer, the insurer shall cause the agent

to secure and forward said documents.

D. If a policy is a replacement policy, the agent shall secure

and forward to the insurer with each application the following:

1. A completed notice as provided for in Section 5 of the Life

Insurance and Annuity Policyholders Protection Act; and

2. A signed statement as provided for in Section 6 of the Life

Insurance and Annuity Policyholders Protection Act. If the

applicant declines to sign the statement, the agent shall furnish to

the insurer a written statement to that effect, signed by the agent

which shall be in addition to the signed agent's certification; and

3. Copies of the sales material prepared by the agent. If the

material is not substantially correct as determined by the insurer,

the insurer shall delay processing the application until corrected

information has been presented to and acknowledged by the applicant.

E. If the statement provided for in Section 6 of the Life Insurance

and Annuity Policyholders Protection Act is not received by the

insurer with the application or if the statement is received

unsigned, it shall be presumed by the insurer that the applicant

desires that the transaction be confidential and the replacing

insurer shall not notify the replaced insurer. If the applicant

signs the statement indicating that the replaced insurer be

notified, then the replacing insurer shall send a written

notification of the replacement to the home office of each replaced

insurer within five (5) days of receipt of the application.

Notification shall include the name of the applicant, the name of

the insured, the number of the policy being replaced, the generic

name and the face amount of the replacing policy, and the legal name

of the insurers.

F. The replacing insurer shall maintain copies of the notice,

statement, and notifications to the replaced insurers for at least

Oklahoma Statutes - Title 36. Insurance Page 860

three (3) years. Said copies shall be indexed so as to be readily

available for review by the Insurance Commissioner or his designee.

G. The insurer shall guarantee the policyholder at least a

twenty-day right to return the policy after delivery for a full

refund of premium. The insurer shall provide prominent written

notice informing the policyholder of this right. Said notice shall

be attached to, or as part of, the first page of the policy.

H. If only an insurer is involved with the replacement of a

life insurance policy or an annuity policy of residents of this

state, the requirements provided for in this section, where

applicable, shall be followed.
Okla. Stat. tit. 36, § 36-6475.14 — OK Code / Title 36 / Section 36-6475.14
Employee liability
Status: in_force

No independent review organization or clinical reviewer working

on behalf of an independent review organization or an employee,

agent or contractor of an independent review organization shall be

liable in damages to any person for any opinions rendered or acts or

omissions performed within the scope of the organization’s or

person’s duties under the law during or upon completion of an

external review conducted pursuant to the Uniform Health Carrier

External Review Act, unless the opinion was rendered or act or

omission performed in bad faith or involved gross negligence.
Okla. Stat. tit. 36, § 36-6976 — OK Code / Title 36 / Section 36-6976
Restrictions on provider choice of sources and suppliers
Status: in_force

— Reimbursement.

No agreement between an insurer or prepaid vision plan and a

vision care provider shall restrict or limit, either directly or

indirectly, the provider’s choice of sources and suppliers of

services or materials or use of optical labs provided by the vision

care provider to an enrollee. Vision care providers shall not

receive reduced reimbursement for using labs and suppliers that the

provider chooses to best serve patient outcomes.
Okla. Stat. tit. 36, § 36-673 — OK Code / Title 36 / Section 36-673
Information security program
Status: in_force

A. Each licensee in this state shall develop, implement, and

maintain a comprehensive written information security program based

on the risk assessment of the licensee provided for in this act and

that contains administrative, technical, and physical safeguards for

the protection of nonpublic information and the information systems

of the licensee. The program shall be commensurate with the size

and complexity of the licensee, the nature and scope of the

activities of the licensee, including its use of third-party service

providers, and the sensitivity of the nonpublic information used by

the licensee or in the possession, custody, or control of the

licensee.

B. An information security program of a licensee shall be

designed to:

1. Protect the security and confidentiality of nonpublic

information and the security of the information systems;

2. Protect against any threats or hazards to the security or

integrity of nonpublic information and the information systems;

3. Protect against unauthorized access to or use of nonpublic

information, and minimize the likelihood of harm to any consumer;

and

4. Define and periodically reevaluate a schedule for retention

of nonpublic information and a mechanism for its destruction when no

longer needed.

C. The licensee shall:

1. Designate one or more employees, an affiliate, or an outside

vendor designated to act on behalf of the licensee who is

responsible for the information security program;

2. Identify reasonably foreseeable internal or external threats

that could result in unauthorized access, transmission, disclosure,

misuse, alteration, or destruction of nonpublic information

including, but not limited to, the security of information systems

and nonpublic information that are accessible to, or held by, third-

party service providers;

3. Assess the likelihood and potential damage of these threats,

taking into consideration the sensitivity of the nonpublic

information;

4. Assess the sufficiency of policies, procedures, information

systems, and other safeguards in place to manage these threats,

Oklahoma Statutes - Title 36. Insurance Page 180

including consideration of threats in each relevant area of the

operations of the licensee, including:

a. employee training and management,

b. information systems, including, but not limited to,

network and software design, as well as information

classification, governance, processing, storage,

transmission, and disposal, and

c. detecting, preventing, and responding to attacks,

intrusions, or other systems failures; and

5. Implement information safeguards to manage the threats

identified in its ongoing assessment, and no less than annually,

assess the effectiveness of the key controls, systems, and

procedures of the safeguards.

D. Based on the results of the risk assessment, the licensee

shall:

1. Design its information security program to mitigate the

identified risks, commensurate with the size and complexity of the

licensee, the nature and scope of the activities of the licensee

including its use of third-party service providers, and the

sensitivity of the nonpublic information used by the licensee or in

the possession, custody, or control of the licensee;

2. Determine and implement security measures deemed

appropriate, including:

a. place access controls on information systems including

controls to authenticate and permit access only to

authorized individuals to protect against the

unauthorized acquisition of nonpublic information,

b. identify and manage the data, personnel, devices,

systems, and facilities that enable the organization

to achieve business purposes in accordance with their

relative importance to business objectives and the

risk strategy of the organization,

c. restrict physical access to nonpublic information to

authorized individuals only,

d. protect by encryption or other appropriate means, all

nonpublic information while being transmitted over an

external network and all nonpublic information stored

on a laptop computer or other portable computing or

storage device or media,

e. adopt secure development practices for in-house

developed applications utilized by the licensee,

f. modify the information system in accordance with the

information security program of the licensee,

g. utilize effective controls, which may include multi-

factor authentication procedures for any authorized

individual accessing nonpublic information,

Oklahoma Statutes - Title 36. Insurance Page 181

h. regularly test and monitor systems and procedures to

detect actual and attempted attacks on, or intrusions

into, information systems,

i. include audit trails within the information security

program designed to detect and respond to

cybersecurity events and designed to reconstruct

material financial transactions sufficient to support

normal operations and obligations of the licensee,

j. implement measures to protect against destruction,

loss, or damage of nonpublic information due to

environmental hazards such as fire and water damage or

other catastrophic events or technological failures,

and

k. develop, implement, and maintain procedures for the

secure disposal of nonpublic information in any

format;

3. Include cybersecurity risks in the enterprise risk

management process of the licensee;

4. Stay informed regarding emerging threats or vulnerabilities

and utilize reasonable security measures when sharing information

relative to the character of the sharing and the type of information

shared; and

5. Provide its personnel with cybersecurity awareness training

that is updated as necessary to reflect risks identified by the

licensee in the risk assessment.

E. If the licensee has a board of directors, the board or an

appropriate committee of the board, at a minimum, within one (1)

year of July 1, 2024, shall:

1. Require the executive management of the licensee or its

delegates to develop, implement, and maintain the information

security program of the licensee;

2. Require the executive management of the licensee or its

delegates to report to the board in writing, at least annually, the

following information:

a. the overall status of the information security program

and the compliance of the licensee with this act, and

b. material matters related to the information security

program, addressing issues such as risk assessment,

risk management and control decisions, third-party

service provider arrangements, results of testing,

cybersecurity events or violations and responses of

the management to those events or violations, and

recommendations for changes in the information

security program; and

3. If executive management delegates any of its

responsibilities, it shall oversee the development, implementation,

and maintenance of the information security program of the licensee

Oklahoma Statutes - Title 36. Insurance Page 182

prepared by the delegate or delegates and shall receive a report

from the delegate or delegates complying with the requirements of

the report to the board.

F. A licensee shall exercise due diligence in selecting its

third-party service provider and shall require the provider to

implement appropriate administrative, technical, and physical

measures to protect and secure the information systems and nonpublic

information that are accessible to, or held by, the third-party

service provider.

G. The licensee shall monitor, evaluate, and adjust, as

appropriate, the information security program consistent with any

relevant changes in technology, the sensitivity of its nonpublic

information, internal or external threats to information and the

changing business arrangements of the licensee, such as mergers and

acquisitions, alliances and joint ventures, outsourcing

arrangements, and changes to information systems.

H. As part of its information security program, each licensee

shall establish a written incident response plan designed to

promptly respond to, and recover from, any cybersecurity event that

compromises the confidentiality, integrity, or availability of

nonpublic information in its possession, the information systems of

the licensee, or the continuing functionality of any aspect of the

business or operations of the licensee.

The incident response plan shall address the following areas:

1. The internal process for responding to a cybersecurity

event;

2. The goals of the incident response plan;

3. The definition of clear roles, responsibilities, and levels

of decision-making authority;

4. External and internal communications and information

sharing;

5. Identification of requirements for the remediation of any

identified weaknesses in information systems and associated

controls;

6. Documentation and reporting regarding cybersecurity events

and related incident response activities; and

7. The evaluation and revision as necessary of the incident

response plan following a cybersecurity event.

I. Annually, each insurer domiciled in this state shall submit

to the Insurance Commissioner a written statement by April 15,

certifying that the insurer complies with the requirements set forth

in this section. Each insurer shall maintain, for examination by

the Insurance Department, all records, schedules, and data

supporting this certificate for a period of five (5) years. To the

extent an insurer has identified areas, systems, or processes that

require material improvement, updating, or redesign, the insurer

shall document the identification and the remedial efforts planned

Oklahoma Statutes - Title 36. Insurance Page 183

and underway to address such areas, systems, or processes. The

documentation shall be available for inspection by the Commissioner

upon request.
Okla. Stat. tit. 36, § 36-6454 — OK Code / Title 36 / Section 36-6454
Chartering and licensing of risk retention group
Status: in_force

A. 1. A risk retention group seeking to be chartered for

domicile in this state shall be chartered and licensed only to write

liability insurance pursuant to the insurance laws of this state

and, except as provided elsewhere in the Oklahoma Risk Retention

Act, shall comply with all of the laws, rules, regulations, and

requirements applicable to such insurers chartered and licensed in

this state including Section 6455 of this title to the extent such

requirements are not a limitation on the laws, rules, regulations

and requirements in this state.

2. Notwithstanding any other provision of law, all risk

retention groups chartered in this state shall file with the

Insurance Department and the National Association of Insurance

Commissioners an annual statement in a form prescribed by the

Association and in electronic form, if required by the Insurance

Commissioner and completed in accordance with its instructions and

the Practices and Procedures Manual of the Association.

B. Before it may offer insurance in any state, each risk

retention group licensed in this state shall submit for approval to

the Insurance Commissioner of this state a plan of operation or a

feasibility study. The risk retention group shall submit an

appropriate revision in the event of any subsequent material change

in any item of the plan of operation or feasibility study within ten

(10) days of the change. The group shall not offer any additional

kinds of liability insurance in this state or in any other state

until a revision of the plan or study is approved by the

Oklahoma Statutes - Title 36. Insurance Page 1196

Commissioner. At the time of filing its application for charter,

the risk retention group shall provide to the Commissioner a summary

of the following information: the identity of the initial members

of the group or who organized the group, the identity of those

individuals who will provide administrative services or otherwise

influence or control the activities of the group, the amount and

nature of initial capitalization, the coverages to be afforded, and

the states in which the group intends to operate. Upon receipt of

this information, the Commissioner shall transmit the information to

the National Association of Insurance Commissioners. Transmitting

this information shall be sufficient to satisfy the requirements of

Section 6455 of this section.
Okla. Stat. tit. 36, § 36-1526 — OK Code / Title 36 / Section 36-1526
Authorized Control Level Event
Status: in_force

A. "Authorized Control Level Event" means any of the following

events:

1. The filing of an RBC Report by the insurer which indicates

that the insurer's Total Adjusted Capital is greater than or equal

to its Mandatory Control Level RBC but less than its Authorized

Control Level RBC;

2. The notification by the Insurance Commissioner to the

insurer of an Adjusted RBC Report that indicates the event in

paragraph 1 of this subsection, provided the insurer does not

challenge the Adjusted RBC Report under Section 9 of this act;

3. If, pursuant to Section 9 of this act, the insurer

challenges an Adjusted RBC Report that indicates the event in

paragraph 1 of this subsection, notification by the Commissioner to

the insurer that the Commissioner has, after opportunity for a

hearing, rejected the insurer's challenge;

4. The failure of the insurer to respond, in a manner

satisfactory to the Commissioner, to a corrective order, provided

the insurer has not challenged the corrective order under Section 9

of this act; or

5. If the insurer has challenged a corrective order under

Section 9 of this act and the Commissioner has, after opportunity

for a hearing, rejected the challenge or modified the corrective

order, the failure of the insurer to respond, in a manner

satisfactory to the Commissioner, to the corrective order subsequent

to rejection or modification by the Commissioner.

B. In the event of an Authorized Control Level Event with

respect to an insurer, the Commissioner may:

1. Take such actions as are required under Section 6 of this

act regarding an insurer with respect to which a Regulatory Action

Level Event has occurred; or

Oklahoma Statutes - Title 36. Insurance Page 419

2. If the Commissioner deems it to be in the best interests of

the policyholders and creditors of the insurer and of the public,

take such actions as are necessary to cause the insurer to be placed

under regulatory control under Article 18 or 19 of the Insurance

Code. In the event the Commissioner takes such actions, the

Authorized Control Level Event shall be deemed sufficient grounds

for the Commissioner to take action under Article 18 or 19 of the

Insurance Code, and the Commissioner shall have the rights, powers,

and duties with respect to the insurer as are set forth in Article

18 or 19 of the Insurance Code. In the event the Commissioner takes

actions under this paragraph pursuant to an Adjusted RBC Report, the

insurer shall be entitled to notice and opportunity for a hearing as

required by the provisions of Article 18 or 19 of the Insurance

Code.
Okla. Stat. tit. 36, § 36-2927 — OK Code / Title 36 / Section 36-2927
Distribution of savings
Status: in_force

A reciprocal insurer may from time to time return to its

subscribers any unused premiums, savings, or credits accruing to

their accounts. Any such distribution shall not unfairly

discriminate between classes of risks, or policies, or between

Oklahoma Statutes - Title 36. Insurance Page 749

subscribers, but such distribution may vary as to classes of

subscribers based on the experience of such subscribers.
Okla. Stat. tit. 36, § 36-363 — OK Code / Title 36 / Section 36-363
Notification of suspected fraud - Immunity
Status: in_force

A. Any insurer, employee or agent of any insurer who has reason

to believe that a person or entity has engaged in or is engaging in

an act or practice that violates any statute or administrative rule

of this state related to insurance fraud shall immediately notify

the Anti-Fraud Unit of the Insurance Department and, in the case of

an allegation of claimant fraud, the Workers' Compensation and

Insurance Fraud Unit of the Office of the Attorney General.

B. No insurer, employee or agent of an insurer, or any other

person acting in the absence of fraud, bad faith, reckless disregard

for the truth, or actual malice shall be subject to civil liability

for libel, slander or any other relevant tort or subject to criminal

prosecution by virtue of filing of reports or furnishing other

information either orally or in writing, concerning suspected,

anticipated or completed fraudulent insurance acts to the Anti-Fraud

Division of the Insurance Department or the Workers' Compensation

and Insurance Fraud Unit of the Office of the Attorney General

pursuant to subsection A of this section or to any other agency

involved in the investigation or prosecution of suspected insurance

fraud.

C. No civil or criminal cause of action of any nature shall

exist against the person or entity by virtue of filing of reports or

furnishing other information, either orally or in writing,

concerning suspected, anticipated or completed fraudulent insurance

acts to the Anti-Fraud Division of the Insurance Department pursuant

Oklahoma Statutes - Title 36. Insurance Page 114

to subsection A of this section or to any other agency involved in

the investigation or prosecution of suspected insurance fraud. The

immunity provided in this subsection shall extend to the act of

providing or receiving information or reports to or from:

1. Law enforcement officials, their agents and employees;

2. The National Association of Insurance Commissioners, any

state department of insurance, any federal or state agency or bureau

established to detect and prevent fraudulent insurance activities,

as well as any other organization established for the same purpose,

their agents, employees or designees; and

3. Any organization or person involved in the prevention and

detection of fraudulent insurance activities or that organization or

person's employees, agents, or representatives.

The immunity provided in this subsection shall not extend to any

person, insurer, or agent of an insurer for communications or

publications about suspected insurance fraud to any other person or

entity.
Okla. Stat. tit. 36, § 36-1511 — OK Code / Title 36 / Section 36-1511
Valuation of bonds
Status: in_force

A. All bonds or other evidences of debt having a fixed term and

rate of interest held by any insurer may, if amply secured and not

in default as to principal or interest, be valued as follows:

1. If purchased at par, at the par value.

2. If purchased above or below par, on the basis of the

purchase price adjusted so as to bring the value to par at maturity

and so as to yield in the meantime the effective rate of interest at

Oklahoma Statutes - Title 36. Insurance Page 410

which the purchase was made, or in lieu of such method, according to

such accepted method of valuation as is approved by the Insurance

Commissioner.

3. Purchase price shall in no case be taken at a higher figure

than the actual market value at the time of purchase, plus actual

brokerage, transfer, postage or express charges paid in the

acquisition of such securities.

4. Unless otherwise provided by valuation established or

approved by the National Association of Insurance Commissioners, no

such security shall be carried at above the call price for the

entire issue during any period within which the security may be so

called.

B. The Insurance Commissioner shall have full discretion in

determining the method of calculating values according to the rules

set forth in this section and not inconsistent with any such methods

then currently formulated or approved by the National Association of

Insurance Commissioners.
Okla. Stat. tit. 36, § 36-1425.1 — OK Code / Title 36 / Section 36-1425.1
Renumbered as § 1426A of this title by Laws 1997, c
Status: in_force

418, § 127, eff. Nov. 1, 1997.
Okla. Stat. tit. 36, § 36-4402 — OK Code / Title 36 / Section 36-4402
Accident and health policies; filing
Status: in_force

On and after the effective date of this Code no policy of

insurance against loss or expense from the sickness, or from the

bodily injury or death of the insured by accident shall be issued or

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

rider or endorsement be used in connection therewith until a copy of

the form thereof, and of the classification of risks, and the

premium rates pertaining thereto, have been filed with the Insurance

Commissioner. If the Insurance Commissioner disapproves the policy,

application, rider or endorsement form, said Commissioner shall make

a written decision stating the reason or reasons therefor, and shall

deliver a copy thereof to the company, and it shall be unlawful for

any such insurer to use any such form in the state. Any such

insurer shall have twenty (20) days from the date of receipt of the

notice of disapproval in which to request a hearing on such

disapproval.
Okla. Stat. tit. 36, § 36-4055.13 — OK Code / Title 36 / Section 36-4055.13
Prohibited acts - Warning statement - Provision of
Status: in_force

information on fraudulent acts - Liability - Antifraud initiatives.

A. 1. A person shall not commit a fraudulent viatical

settlement act.

2. A person shall not knowingly or intentionally interfere with

the enforcement of the provisions of the Viatical Settlements Act of

2008 or investigations of suspected or actual violations of the

Viatical Settlements Act of 2008.

3. A person in the business of viatical settlements shall not

knowingly or intentionally permit any person convicted of a felony

involving dishonesty or breach of trust to participate in the

business of viatical settlements.

B. 1. Viatical settlements contracts and applications for

viatical settlements, regardless of the form of transmission, shall

contain the following statement or a substantially similar

statement:

“Any person who knowingly presents false information in an

application for insurance or viatical settlement contract is guilty

of a crime and may be subject to fines and confinement in prison.”

2. The lack of a statement as required in paragraph 1 of this

subsection does not constitute a defense in any prosecution for a

fraudulent viatical settlement act.

C. 1. Any person engaged in the business of viatical

settlements having knowledge or a reasonable suspicion that a

Oklahoma Statutes - Title 36. Insurance Page 898

fraudulent viatical settlement act is being, will be or has been

committed shall provide to the Insurance Commissioner such

information as required by, and in a manner prescribed by, the

Commissioner.

2. Any other person having knowledge or a reasonable belief

that a fraudulent viatical settlement act is being, will be or has

been committed may provide to the Commissioner the information

required by, and in a manner prescribed by, the Commissioner.

D. 1. No civil liability shall be imposed on and no cause of

action shall arise from a person’s furnishing information concerning

suspected, anticipated or completed fraudulent viatical settlement

acts or suspected or completed fraudulent insurance acts, if the

information is provided to or received from:

a. the Commissioner or the Commissioner’s employees,

agents or representatives,

b. federal, state or local law enforcement or regulatory

officials or their employees, agents or

representatives,

c. a person involved in the prevention and detection of

fraudulent viatical settlement acts or that person’s

agents, employees or representatives,

d. the National Association of Insurance Commissioners

(NAIC), National Association of Securities Dealers

(NASD), the North American Securities Administrators

Association (NASAA), or their employees, agents or

representatives, or other regulatory body overseeing

life insurance, viatical settlements, securities or

investment fraud, or

e. the life insurer that issued the life insurance policy

covering the life of the insured.

2. Paragraph 1 of this subsection shall not apply to statements

made with actual malice. In an action brought against a person for

filing a report or furnishing other information concerning a

fraudulent viatical settlement act, the party bringing the action

shall plead specifically any allegation that paragraph 1 of this

subsection does not apply because the person filing the report or

furnishing the information did so with actual malice.

3. A person furnishing information as identified in paragraph 1

of this subsection shall be entitled to an award of attorney fees

and costs if he or she is the prevailing party in a civil cause of

action for libel, slander or any other relevant tort arising out of

activities in carrying out the provisions of the Viatical

Settlements Act of 2008 and the party bringing the action was not

substantially justified in doing so. For purposes of this section a

proceeding is “substantially justified” if it had a reasonable basis

in law or fact at the time that it was initiated. However, such an

Oklahoma Statutes - Title 36. Insurance Page 899

award does not apply to any person furnishing information concerning

his or her own fraudulent viatical settlement acts.

4. This section does not abrogate or modify common law or

statutory privileges or immunities enjoyed by a person described in

paragraph 1 of this subsection.

E. 1. The documents and evidence provided pursuant to

subsection D of this section or obtained by the Commissioner in an

investigation of suspected or actual fraudulent viatical settlement

acts shall be privileged and confidential and shall not be a public

record and shall not be subject to discovery or subpoena in a civil

or criminal action.

2. Paragraph 1 of this subsection does not prohibit release by

the Commissioner of documents and evidence obtained in an

investigation of suspected or actual fraudulent viatical settlement

acts:

a. in administrative or judicial proceedings to enforce

laws administered by the Commissioner,

b. to federal, state or local law enforcement or

regulatory agencies, to an organization established

for the purpose of detecting and preventing fraudulent

viatical settlement acts or to the NAIC, or

c. at the discretion of the Commissioner, to a person in

the business of viatical settlements that is aggrieved

by a fraudulent viatical settlement act.

3. Release of documents and evidence under paragraph 2 of this

subsection does not abrogate or modify the privilege granted in

paragraph 1 of this subsection.

F. This act shall not:

1. Preempt the authority or relieve the duty of other law

enforcement or regulatory agencies to investigate, examine and

prosecute suspected violations of law;

2. Prevent or prohibit a person from disclosing voluntarily

information concerning viatical settlement fraud to a law

enforcement or regulatory agency other than the Insurance

Department;

3. Preempt, supersede, or limit any provision of any state

securities law or any rule, order, or notice issued thereunder; or

4. Limit the powers granted elsewhere by the laws of this state

to the Commissioner or an insurance fraud unit to investigate and

examine possible violations of law and to take appropriate action

against wrongdoers.

G. 1. Viatical settlement providers and viatical settlement

brokers shall have in place antifraud initiatives reasonably

calculated to detect, prosecute and prevent fraudulent viatical

settlement acts. At the discretion of the Commissioner, the

Commissioner may order, or a licensee may request and the

Commissioner may grant, such modifications of the following required

Oklahoma Statutes - Title 36. Insurance Page 900

initiatives as necessary to ensure an effective antifraud program.

The modifications may be more or less restrictive than the required

initiatives so long as the modifications may reasonably be expected

to accomplish the purpose of this section.

2. Antifraud initiatives shall include:

a. fraud investigators, who may be viatical settlement

provider or viatical settlement broker employees or

independent contractors, and

b. an antifraud plan, which shall be submitted to the

Commissioner. The antifraud plan shall include, but

not be limited to:

(1) a description of the procedures for detecting and

investigating possible fraudulent viatical

settlement acts and procedures for resolving

material inconsistencies between medical records

and insurance applications,

(2) a description of the procedures for reporting

possible fraudulent viatical settlement acts to

the Commissioner,

(3) a description of the plan for antifraud education

and training of underwriters and other personnel,

and

(4) a description or chart outlining the

organizational arrangement of the antifraud

personnel who are responsible for the

investigation and reporting of possible

fraudulent viatical settlement acts and

investigating unresolved material inconsistencies

between medical records and insurance

applications.

3. Antifraud plans submitted to the Commissioner shall be

privileged and confidential and shall not be a public record and

shall not be subject to discovery or subpoena in a civil or criminal

action.
Okla. Stat. tit. 36, § 36-6832 — OK Code / Title 36 / Section 36-6832
Petition for in camera hearing - Contents
Status: in_force

A. Within thirty (30) days after the Insurance Commissioner,

district attorney, Attorney General, or opposing party in a civil,

criminal or administrative proceeding, serves on an insurer a

written request by certified mail for disclosure of an insurance

compliance self-evaluative audit document under this act, the

company that prepared or caused the document to be prepared may file

with the appropriate court a petition requesting an in camera

hearing on whether the insurance compliance self-evaluative audit

document or portions of the document are privileged or subject to

disclosure. Failure by the company to file a petition waives the

privilege for this request only.

B. A company asserting the insurance compliance self-evaluative

privilege in response to a request for disclosure under this act

shall include in its request for an in camera hearing all of the

information set forth in subsection E of this section.

C. Upon the filing of a petition under this section, the court

shall issue an order scheduling, within forty-five (45) days after

the filing of the petition, an in camera hearing to determine

whether the insurance compliance self-evaluative audit document or

portions of the document are privileged under this section or

subject to disclosure.

D. The court, after an in camera review, may require disclosure

of material for which the privilege in Section 1 of this act is

Oklahoma Statutes - Title 36. Insurance Page 1376

asserted if the court determines, based upon its in camera review,

that any one of the conditions set forth in subsection B of Section

2 of this act is applicable as to a civil or administrative

proceeding or that any one of the conditions set forth in subsection

C of Section 2 of this act is applicable as to a criminal

proceeding. Upon making such a determination, the court may only

compel the disclosure of those portions of an insurance compliance

self-evaluative audit document relevant to issues in dispute in the

underlying proceeding. Any compelled disclosure will not be

considered to be a public document or be deemed to be a waiver of

the privilege for any other civil, criminal, or administrative

proceeding. A party unsuccessfully opposing disclosure may apply to

the court for an appropriate order protecting the document from

further disclosure.

E. A company asserting the insurance compliance self-evaluative

privilege in response to a request for disclosure under this act

shall provide to the Insurance Commissioner, district attorney,

Attorney General, or opposing party in a civil, criminal or

administrative proceeding, as the case may be, at the time of filing

any objection to the disclosure, all of the following information:

1. The date of the insurance compliance self-evaluative audit

document;

2. The identity of the entity conducting the audit;

3. The general nature of the activities covered by the

insurance compliance self-evaluative audit; and

4. An identification of the portions of the insurance

compliance self-evaluative audit document for which the privilege is

being asserted.
Okla. Stat. tit. 36, § 36-2043 — OK Code / Title 36 / Section 36-2043
Advertising prohibited - Exemptions - Preparation of
Status: in_force

summary document - Disclaimer - Notice of noncoverage.

A. No person, including a member insurer, agent or affiliate of

a member insurer, shall make, publish, disseminate, circulate or

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

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, announcement or statement which uses the existence of

the Oklahoma Life and Health Insurance Guaranty Association of this

state for the purpose of sales, solicitation or inducement to

purchase any form of insurance or other coverage covered by the

Oklahoma Life and Health Insurance Guaranty Association Act.

Oklahoma Statutes - Title 36. Insurance Page 622

Provided, however, that this section shall not apply to the Oklahoma

Life and Health Insurance Guaranty Association or any other entity

which does not sell or solicit insurance or coverage by a health

maintenance organization.

B. The Association shall have a summary document describing the

general purposes and current limitations of the Association and

complying with subsection C of this section. This document shall

have been submitted to, and approved by, the Insurance Commissioner.

Sixty (60) days after receiving such approval, no member insurer

shall deliver a policy or contract described in paragraph 1 of

subsection B of Section 2025 of this title to a policy owner,

contract owner, certificate holder or enrollee unless the document

is delivered to the policy or contract holder prior to or at the

time of delivery of the policy or contract, except if subsection D

of this section applies. The document should also be available upon

request by a policy owner, contract owner, certificate holder or

enrollee. The distribution, delivery or contents or interpretation

of this document shall not mean that either the policy or the

contract or the holder thereof would be covered in the event of

impairment or insolvency of a member insurer. The description

document shall be revised by the Association as amendments to the

act may require. Failure to receive this document does not give the

policyholder, contract holder, certificate holder, enrollee or

insured any greater rights than those stated in this act.

C. The document prepared under subsection B of this section

shall contain a clear and conspicuous disclaimer on its face. The

Commissioner shall promulgate a rule establishing the form and

content of the disclaimer. The disclaimer shall:

1. State the name and address of the life and health insurance

guaranty association and insurance department;

2. Prominently warn the policy owner, contract owner,

certificate holder or enrollee that the Life and Health Insurance

Guaranty Association may not cover the policy or contract or, if

coverage is available, it will be subject to substantial

limitations, exclusions and conditioned on continued residence in

the state;

3. State that the member insurer and its agents are prohibited

by law from using the existence of the Oklahoma Life and Health

Insurance Guaranty Association for the purpose of sales,

solicitation or inducement to purchase any form of insurance or

health maintenance organization coverage;

4. Emphasize that the policy or contract holder should not rely

on coverage under the Oklahoma Life and Health Insurance Guaranty

Association when selecting an insurer;

5. Provide other information as directed by the Commissioner.

D. No insurer or agent may deliver a policy or contract

described in paragraph 1 of subsection B of Section 2025 of this

Oklahoma Statutes - Title 36. Insurance Page 623

title, but excluded under subparagraph a of paragraph 2 of

subsection B of Section 2025 of this title from coverage under theOklahoma Statutes - Title 36. Insurance Page 16sociation when selecting an insurer;

5. Provide other information as directed by the Commissioner.

D. No insurer or agent may deliver a policy or contract

described in paragraph 1 of subsection B of Section 2025 of this

Oklahoma Statutes - Title 36. Insurance Page 623

title, but excluded under subparagraph a of paragraph 2 of

subsection B of Section 2025 of this title from coverage under the

Oklahoma Life and Health Insurance Guaranty Association Act, unless

the insurer or agent, prior to or at the time of delivery, gives the

policy owner, contract owner, certificate holder or enrollee a

separate written notice which clearly and conspicuously discloses

that the policy or contract is not covered by the Life and Health

Insurance Guaranty Association. The Commissioner shall by rule

specify the form and content of the notice.
Okla. Stat. tit. 36, § 36-3013 — OK Code / Title 36 / Section 36-3013
Laws applicable to Lloyd's
Status: in_force

A. The provisions of this article are applicable to domestic

Lloyd's insurers and to foreign Lloyd's insurers.

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

article, Lloyd's insurers shall be subject to and governed by the

other applicable provisions of this Code.
Okla. Stat. tit. 36, § 36-6210 — OK Code / Title 36 / Section 36-6210
Supervision of examination - Time and place - Waiting
Status: in_force

period.

A. The answers of the applicant to any examination for

licensing as an adjuster shall be written by the applicant under

supervision of the Insurance Commissioner or an administrator

approved by the Insurance Commissioner.

B. Examination for licensing shall be at such reasonable times

and places as are designated by the Insurance Commissioner.

C. An applicant who has failed to pass the first two

examinations for the license applied for shall not be permitted to

take a subsequent examination until the expiration of thirty (30)

days after the last examination. Examination fees for subsequent

examinations shall not be waived.
Okla. Stat. tit. 36, § 36-2507 — OK Code / Title 36 / Section 36-2507
Requisites of policy; liability on policy
Status: in_force

Oklahoma Statutes - Title 36. Insurance Page 678

Every policy hereafter issued by any corporation, company or

association doing business under the provisions of this article and

promising any payments to be made upon a contingency provided for in

this article, shall specify the sum of money which it promises to

pay upon each contingency insured against and the time or times of

payment after satisfactory proof of the happening of such

contingency and unless the contract shall have been voided by fraud

or breach of its conditions and warranties, the company shall be

obligated to the beneficiaries of the insured for such payment at

the time or times specified and to the amount due under the policy.
Okla. Stat. tit. 36, § 36-1260 — OK Code / Title 36 / Section 36-1260
Renumbered as § 1250.16 of this title by Laws 1994, c
Status: in_force

342, § 20, eff. Sept. 1, 1994.
Okla. Stat. tit. 36, § 36-981 — OK Code / Title 36 / Section 36-981
Short title and purposes of act
Status: in_force

Short Title and Purposes of Act.

A. Sections 981 through 998 of this title and Sections 22, 23

and 24 of this act shall constitute a part of the Oklahoma Insurance

Code and shall be known and may be cited as the "Property and

Casualty Competitive Loss Cost Rating Act".

B. The purposes of the Property and Casualty Competitive Loss

Cost Rating Act are:

1. To promote price competition among insurers so as to provide

rates that are responsive to competitive market conditions;

2. To protect policyholders and the public against the adverse

effects of excessive, inadequate or unfairly discriminatory rates;

3. To prohibit unlawful price-fixing agreements and other

anticompetitive behavior by insurers;

4. To provide regulatory procedures for the maintenance of

appropriate data reporting systems;

5. To provide regulatory controls in the absence of a

competitive marketplace; and

6. To authorize essential cooperative action among insurers in

the ratemaking process and to regulate such activity to prevent

practices that substantially lessen competition or create a

monopoly.
Okla. Stat. tit. 36, § 36-631 — OK Code / Title 36 / Section 36-631
Deposit of premium tax - Payments to Medicaid Contingency
Status: in_force

Revolving Fund - Transfer of funds received from tax protest

litigation.

A. Said premium tax as collected shall be deposited by the

thirtieth day of the month of receipt to the credit of the General

Revenue Fund subject only to the allocations thereof as otherwise

provided by law.

B. That portion of premium tax assessed on the premiums of

Medicaid recipients collected from the University of Oklahoma

Managed Care Plan sponsored by the University of Oklahoma Health

Sciences Center and from qualified health plans that contract with

the Oklahoma Health Care Authority to provide managed care to

participants in the State Medicaid program, as provided in Section

624 of this title, shall be paid by the thirtieth day of the month

of receipt to the credit of the Medicaid Contingency Revolving Fund,

created in Section 1010.8 of Title 56 of the Oklahoma Statutes.
Okla. Stat. tit. 36, § 36-6959 — OK Code / Title 36 / Section 36-6959
Purpose of act
Status: in_force

The purpose of the Patient's Right to Pharmacy Choice Act is to

establish minimum and uniform access to a provider and standards and

prohibitions on restrictions of a patient's right to choose a

pharmacy provider.
Okla. Stat. tit. 36, § 36-3303 — OK Code / Title 36 / Section 36-3303
Risk management framework
Status: in_force

An insurer shall maintain a risk management framework to assist

the insurer with identifying, assessing, monitoring, managing, and

reporting on its material and relevant risks. This requirement may

be satisfied if the insurance group of which the insurer is a member

maintains a risk management framework applicable to the operations

of the insurer.
Okla. Stat. tit. 36, § 36-1001 — OK Code / Title 36 / Section 36-1001
Judicial review
Status: in_force

Any order, ruling, finding, decision or other act of the

Oklahoma Insurance Department made pursuant to the Property and

Casualty Competitive Loss Cost Rating Act shall be subject to

judicial review.
Okla. Stat. tit. 36, § 36-6103.2 — OK Code / Title 36 / Section 36-6103.2
“Insurer”, “venue” and “doing insurance business in
Status: in_force

this state” defined - Exceptions.

A. Unless otherwise indicated, the term "insurer" as used in

Sections 6103.1 through 6103.11 of this title includes all legal

entities, associations, and individuals engaged as principals in the

business of insurance and also includes interinsurance exchanges,

mutual benefit societies and insurance exchanges and syndicates.

B. The venue of any act listed in this section shall be

Oklahoma County.

C. Any one of the following acts in this state effected by mail

or otherwise is defined to be doing an insurance business in this

state:

1. The making of or proposing to make, as an insurer, an

insurance contract;

2. The making of or proposing to make, as guarantor or surety,

any contract of guaranty or suretyship as a vocation and not merely

incidental to any other legitimate business or activity of the

guarantor or surety;

3. The taking or receiving of any application for insurance;

4. Maintaining any agency or office where any acts in

furtherance of an insurance business are transacted, including but

not limited to:

a. the execution of contracts of insurance with citizens

of this or any other state,

b. maintaining files or records of contracts of

insurance,

Oklahoma Statutes - Title 36. Insurance Page 1129

c. the processing of claims, and

d. the receiving or collection of any premiums,

commissions, membership fees, assessments, dues or

other consideration for any insurance or any part

thereof;

5. The issuance or delivery of contracts of insurance to

residents of this state or to persons authorized to do business in

this state;

6. Directly or indirectly acting as an agent for, or otherwise

representing or aiding on behalf of another, any person or insurer

in:

a. the solicitation, negotiation, procurement or

effectuation of insurance or renewals thereof,

b. the dissemination of information as to coverage or

rates, or forwarding of applications, or delivery of

policies or contracts,

c. inspection of risks,

d. fixing of rates or investigation or adjustment of

claims or losses,

e. the transaction of matters subsequent to effectuation

of the contract and arising out of it, or

f. in any other manner representing or assisting a person

or insurer in the transaction of insurance with

respect to subjects of insurance resident, located or

to be performed in this state;

Provided, the provisions of this paragraph shall not operate to

prohibit full-time salaried employees of a corporate insured from

acting in the capacity of an insurance manager or buyer in placing

insurance in behalf of such employer;

7. Contracting to provide indemnification or expense

reimbursement in this state to persons domiciled in this state or

for risks located in this state, whether as an insurer, agent,

administrator, trust, funding mechanism, or by any other method, for

any type of medical expenses including, but not limited to,

surgical, chiropractic, physical therapy, speech pathology,

audiology, professional mental health, dental, hospital, or

optometric expenses, whether this coverage is by direct payment,

reimbursement, or otherwise. This provision shall not apply to:

a. any program otherwise authorized by law that is

established by any political subdivision of this state

or under the provisions of Sections 1001 through 1008

of Title 74 of the Oklahoma Statutes, or

b. a multiple employer welfare arrangement as defined in

Section 3 of the Employee Retirement Income Security

Act of 1974, 29 U.S.C., Section 1002(40)(A), as

amended, that holds a valid license issued by the

Insurance Commissioner or is exempt from state

Oklahoma Statutes - Title 36. Insurance Page 1130

regulation pursuant to subsection B of Section 634 of

this title;

8. The doing of any kind of insurance business specifically

recognized as constituting the doing of an insurance business within

the meaning of the statutes relating to insurance;

9. The doing or proposing to do any insurance business in

substance equivalent to any of the foregoing in a manner designed to

evade the provisions of the statutes; or

10. Any other transactions of business in this state by an

insurer.

D. The definition of a bail bond shall be the same as the

definition of a bond in Section 1301 of Title 59 of the Oklahoma

Statutes. The business of bail bonds shall be all aspects of acting

as a bail bondsman including, but not limited to, depositing or

pledging cash or real property as security for an appearance bond in

a criminal judicial proceeding, or executing or countersigning bail

bonds for an insurer or professional bondsman in connection with an

appearance bond in criminal judicial proceedings, and charging and

receiving money for these services. The business of bail bonds

shall also include solicitation for a bail bond, as defined in

Section 1301 of Title 59 of the Oklahoma Statutes.

E. The provisions of this section do not apply to:

1. The lawful transaction of surplus lines insurance;

2. Life, accident and health insurance or annuities provided to

educational or scientific institutions organized and operated

without profit to any private shareholder or individual for the

benefit of such institutions or individuals engaged in the service

of such institutions;

3. The lawful transaction of reinsurance by insurers;

4. Transactions in this state involving a policy lawfully

solicited, written and delivered outside of this state covering only

subjects of insurance not resident, located or expressly to be

performed in this state at the time of issuance, and which

transactions are subsequent to the issuance of such policy; or

5. Any individual who is not required to have a bail bondsman

license, as provided in Section 1303 of Title 59 of the Oklahoma

Statutes.
Okla. Stat. tit. 36, § 36-4502 — OK Code / Title 36 / Section 36-4502
Provisions of group accident and health policies
Status: in_force

A. Each group accident and health policy shall contain in

substance the following provisions:

1. A provision that, in the absence of fraud, all statements

made by the policyholder or by any insured person shall be deemed

representations and not warranties, and that no statement made for

the purpose of effecting insurance shall avoid such insurance or

reduce benefits unless contained in a written instrument signed by

the policyholder or the insured person, a copy of which has been

furnished to such policyholder or to such person or his or her

beneficiary;

2. A provision that the insurer will furnish to the

policyholder, for delivery to each employee or member of the insured

group, an individual certificate setting forth in summary form a

statement of the essential features of the insurance coverage of

such employee or member and to whom benefits are payable. If

dependents or family members are included in the coverage additional

certificates need not be issued for delivery to such dependents or

family members; and

3. A provision that to the group originally insured may be

added from time to time eligible new employees or members or

dependents, as the case may be, in accordance with the terms of the

policy.

B. Each group health policy certificate subject to the

provisions of the Federal Health Insurance Portability and

Oklahoma Statutes - Title 36. Insurance Page 979

Accountability Act, Public Law 104-191, (HIPAA) laws shall contain

in substance the following provisions, which shall be in addition to

the provisions required by subsection A of this section.

1. A provision that a health benefit plan shall not deny,

exclude or limit benefits for a covered individual for losses

incurred more than twelve (12) months following the effective date

of the individual's coverage due to a preexisting condition;

2. A provision that a health benefit plan shall not define a

preexisting condition more restrictively than:

a. a condition for which medical advice, diagnosis, care

or treatment was recommended or received during the

six (6) months immediately preceding the effective

date of coverage,

b. pregnancy and genetic information shall not be

considered preexisting conditions,

c. a health benefit plan may exclude a preexisting

condition for late enrollees for a period not to

exceed eighteen (18) months from the date the

individual enrolls for coverage,

d. the period of any such preexisting condition exclusion

shall be reduced by the aggregate of the periods of

creditable coverage as defined in the Federal HIPAA

laws,

e. a period of creditable coverage shall not be counted

if after such period and before the enrollment date,

there was a sixty-three-day period during all of which

the individual was not covered under any creditable

coverage,

f. "enrollment date" means the date of enrollment of the

individual in the plan or coverage or, if earlier, the

first day of the waiting period for such enrollment,

and

g. "late enrollee" means a participant or beneficiary who

enrolls under the plan other than during the first

period in which the individual is eligible to enroll

under the plan or a special enrollment period;

3. A provision that individuals losing other coverage shall be

permitted to enroll for coverage under the terms of the plan if each

of the following conditions is met:

a. the employee or dependent was covered under a group

health plan or had health insurance coverage at the

time coverage was previously offered to the employee

or dependent,

b. the employee stated in writing at such time that

coverage under a group health plan or health insurance

coverage was the reason for declining enrollment, but

only if the plan sponsor or issuer required such a

Oklahoma Statutes - Title 36. Insurance Page 980

statement at such time and provided the employee with

notice of such requirement, and the consequences of

such requirement, at such time,

c. the employee's or dependent's coverage was under a

COBRA continuation provision and the coverage under

such provision was exhausted; or was not under such a

provision and either the coverage was terminated as a

result of loss of eligibility for the coverage,

including as a result of legal separation, divorce,

death, termination of employment, or reduction in the

number of hours of employment, or employer

contributions toward such coverage were terminated,

and

d. under the terms of the plan, the employee requests

such enrollment not later than thirty (30) days after

the date of exhaustion of coverage;

4. A provision that for any period that an individual is in a

waiting period for any coverage under a group health plan or for

group health insurance coverage or is in an affiliation period, that

period shall not be taken into account in determining the continuous

period of creditable coverage. "Affiliation period" means a period

which, under the terms of the health insurance coverage offered by a

health maintenance organization, must expire before the health

insurance coverage becomes effective. The organization is not

required to provide health care services or benefits during such

period and no premium shall be charged to the participant or

beneficiary for any coverage during the period;

5. A provision that preexisting condition exclusions will not

apply to newborns, who, as the last day of the thirty-day period

beginning with the date of birth, are covered under creditable

coverage;

6. A provision that preexisting condition exclusions will not

apply to a child who is adopted or placed for adoption before

attaining eighteen (18) years of age;

7. A provision that dependents are eligible for a special

enrollment period if the group health plan makes coverage available

with respect to a dependent of an individual, and the individual is

a participant under the plan, or has met any waiting period

applicable to becoming a participant under the plan and is eligible

to be enrolled under the plan but for a failure to enroll during a

previous enrollment period, and a person becomes such a dependent of

the individual through marriage, birth or adoption or placement for

adoption. The special enrollment period shall apply to that person

or, if not otherwise enrolled, the individual, the dependent of the

individual, and in the case of the birth or adoption of a child, the

spouse of the individual may be enrolled as a dependent of the

individual if such spouse is otherwise eligible for coverage.

Oklahoma Statutes - Title 36. Insurance Page 981

a. The dependent special enrollment period shall be a

period of not less than thirty (30) days and shall

begin on the later of the date dependent coverage is

made available, or the date of the marriage, birth, or

adoption or placement for adoption.

b. There is no waiting period if an individual seeks to

enroll a dependent during the first thirty (30) days

of such a dependent special enrollment period.

c. The coverage for the dependent shall become effective

in the case of marriage, not later than the first day

of the first month beginning after the date the

completed request for enrollment is received, in the

case of a dependent's birth, as of the date of such

birth, in the case of a dependent's adoption or

placement for adoption, the date of such adoption or

placement for adoption;

8. A provision that eligibility or continued eligibility of any

individual will not be based on any of the following health-status-

related factors in relation to the individual or a dependent of the

individual: health status, medical condition, including both

physical and mental illnesses, claims experience, receipt of health

care, medical history, genetic information, evidence of

insurability, including conditions arising out of acts of domestic

violence or disability.

a. Carriers are not required to provide particular

benefits other than those provided under the terms of

the plan or coverage.

b. Carriers may establish limitations or restrictions on

the amount, level, extent, and nature of the benefits

or coverage for similarly situated individuals

enrolled in the plan or coverage; and

9. A provision that the group health plan is guaranteed

renewable, except as provided pursuant to the federal provisions

found in HIPAA, which are as follows:

a. nonpayment of premium,

b. fraud,

c. violation of participation and/or contribution rules,

d. termination of coverage:

(1) in any case in which an issuer decides to

discontinue offering a particular type of group

health insurance coverage offered in the large or

small group market, coverage of such type may be

discontinued by the issuer only if: the issuer

provides notice to each plan sponsor provided

coverage of this type in such market, and

participants and beneficiaries covered under such

coverage, of such discontinuation at least ninety

Oklahoma Statutes - Title 36. Insurance Page 982

(90) days prior to the date of the

discontinuation of such coverage and makes

available the option to purchase all or, in the

case of the large group market, any other health

insurance coverage currently being offered by the

issuer to a group health plan in such market and

in exercising the option to discontinue coverage

of this type and in offering the option of

coverage pursuant to this provision, the issuer

acts uniformly without regard to the claims

experience of those sponsors or any health-

status-related factor relating to any

participants or beneficiaries covered or new

participants or beneficiaries who may become

eligible for such coverage,

(2) in any case in which an issuer decides to

discontinue offering a particular type of group

health insurance coverage offered in the large or

small group market, coverage of such type may be

discontinued by the issuer only if: the issuer

provides notice to the Oklahoma Insurance

Department and to each plan sponsor and

participants and beneficiaries covered under such

coverage of such discontinuation at least one

hundred eighty (180) days prior to the date of

the discontinuation of such coverage; and all

health insurance issued or delivered for issuance

in the state in such market or markets are

discontinued and coverage under such health

insurance coverage in such market or markets is

not renewed, and

(3) in the case of a discontinuation under division

(2) of this subparagraph in a market, the issuer

shall not provide for the issuance of any health

insurance coverage in the market and in this

state during the five-year period beginning on

the date of the discontinuation of the last

health insurance coverage not so renewed,

e. movement outside the service area, and

f. association membership ceases.
Okla. Stat. tit. 36, § 36-1415.5 — OK Code / Title 36 / Section 36-1415.5
Implementation of rules and regulations
Status: in_force

The Insurance Commissioner shall be authorized to adopt rules

and regulations to effect the implementation of this act.
Okla. Stat. tit. 36, § 36-6031 — OK Code / Title 36 / Section 36-6031
Report of holdings and change in ownership - Unfair use
Status: in_force

of information - Recovery of profits.

A. Every person who is directly or indirectly the beneficial

owner of more than ten per cent (10%) of any class of equity

security of an insurer or who is a director or officer of such

insurer shall file in the office of the Insurance Commissioner

Oklahoma Statutes - Title 36. Insurance Page 1060

within (10) ten days after becoming such beneficial owner, director

or officer a statement, in such form and detail and subject to such

rules as the Insurance Commissioner may prescribe, of the amount of

all equity securities of such insurer of which he or she is the

beneficial owner, director or officer within ten (10) days after the

close of each calendar month thereafter, if there has been a change

in such ownership during such month, shall file in the office of the

Insurance Commissioner a statement, in such form and detail and

subject to such rules as the Insurance Commissioner may prescribe,

indicating his or her ownership at the close of the calendar month

and such changes in his or her ownership as have occurred during

such calendar month.

B. For the purpose of preventing the unfair use of information

which may have been obtained by such beneficial owner, director or

officer by reason of his or her relationship to such insurer, any

profit realized by him or her from any purchase and sale or any sale

and purchase, of any equity security of such insurer within any

period of less than two (2) years subsequent to the incorporation of

the insurer, shall inure to and be recoverable by the insurer,

unless such equity security was acquired in good faith in connection

with a debt previously contracted, irrespective of any intention on

the part of such beneficial owner, director or officer in entering

into such transaction.

C. Suit to recover such profit may be instituted at law or in

equity in any court of competent jurisdiction by the insurer or by

the owner of any equity security of the insurer in the name and in

behalf of the insurer if the insurer shall fail or refuse to bring

such suit within sixty (60) days after request or shall fail

diligently to prosecute the same thereafter. If no suit to recover

such profit is so filed within six (6) months following the date

such profit was realized or accrued or if at any time such suit is

not diligently prosecuted, the Insurance Commissioner may file or

prosecute such suit for and on behalf of the insurer at the expense

of the insurer.
Okla. Stat. tit. 36, § 36-114 — OK Code / Title 36 / Section 36-114
Existing actions, violations
Status: in_force

Repeal by this act of any law shall not affect or abate any

right heretofore accrued, action or proceeding heretofore commenced,

or any unlawful act heretofore committed under such laws and

punishment or deprivation of license or authority as a consequence

thereof as provided by such law, but all proceedings hereafter taken

with respect thereto shall conform to the applicable provisions of

this Code insofar as possible. All such laws shall be deemed to

continue in force to the extent made necessary by this provision.
Okla. Stat. tit. 36, § 36-1241 — OK Code / Title 36 / Section 36-1241
Property and casualty insurer - Acceptance or denial of
Status: in_force

application.

A property and casualty insurer shall, within forty-five (45)

business days of taking an application, determine whether or not the

applicant should be accepted or denied as an insured and shall give

written notice to the agent of the acceptance or denial. If the

applicant is denied as an insured, any premium monies paid, less any

Oklahoma Statutes - Title 36. Insurance Page 304

expenses incurred either by the agent or the insurer, shall be

immediately returned to the proposed purchaser of the policy.

Failure of the insurer to return premium monies to the applicant

within forty-five (45) business days of the initial submission to

the insurer, broker, or agent, shall result in the applicant

recovering any interest and bank charges which the proposed insured

has incurred because of the delay in return of the initial premium,

less expenses incurred. In addition, if the insurer does not return

the premium monies, less expenses, within the forty-five-day period,

the insurer shall remain liable for the insurance coverage and any

claims pursuant thereto which the remaining premium monies would

have purchased.
Okla. Stat. tit. 36, § 36-1637 — OK Code / Title 36 / Section 36-1637
Examination of registered insurers
Status: in_force

A. Subject to the limitation contained in this section and in

addition to the powers which the Commissioner has under Sections

309.1 through 309.7 of Title 36 of the Oklahoma Statutes relating to

the examination of insurers, the Commissioner shall have the power

to examine any insurer registered under Section 5 of this act and

its affiliates to ascertain the financial condition of the insurer,

including the enterprise risk to the insurer by the ultimate

controlling party, or by any entity or combination of entities

within the insurance holding company system, or by the insurance

holding company system on a consolidated basis.

B. 1. The Commissioner may order any insurer registered under

Section 5 of this act to produce such records, books or other

information papers in the possession of the insurer or its

affiliates as are reasonably necessary to determine compliance with

Title 36 of the Oklahoma Statutes.

2. To determine compliance with Title 36 of the Oklahoma

Statutes, the Commissioner may order any insurer registered under

Section 5 of this act to produce information not in the possession

of the insurer if the insurer can obtain access to such information

pursuant to contractual relationships, statutory obligations or

other method. In the event the insurer cannot obtain the

information requested by the Commissioner, the insurer shall provide

the Commissioner a detailed explanation of the reason that the

insurer cannot obtain the information and the identity of the holder

of the information. Whenever it appears to the Commissioner that

the detailed explanation is without merit, the Commissioner may

require, after notice and hearing, the insurer to pay a penalty of

Five Hundred Dollars ($500.00) for each day's delay, or may suspend

or revoke the insurer's license.

C. The Commissioner may retain at the registered insurer's

expense such attorneys, actuaries, accountants and other experts not

otherwise a part of the Commissioner's staff as shall be reasonably

necessary to assist in the conduct of the examination under

subsection A of this section. Any persons so retained shall be

under the direction and control of the Commissioner and shall act in

a purely advisory capacity.

D. Each registered insurer producing for examination records,

books and papers pursuant to subsection A of this section shall be

liable for and shall pay the expense of examination in accordance

with Section 309.6 of Title 36 of the Oklahoma Statutes.

E. In the event the insurer fails to comply with an order, the

Commissioner shall have the power to examine the affiliates to

obtain the information. The Commissioner shall also have the power

to issue subpoenas, to administer oaths, and to examine under oath

any person for purposes of determining compliance with this section.

Upon the failure or refusal of any person to obey a subpoena, the

Oklahoma Statutes - Title 36. Insurance Page 479

Commissioner may petition a court of competent jurisdiction, and

upon proper showing, the court may enter an order compelling the

witness to appear and testify or produce documentary evidence.

Failure to obey the court order shall be punishable as contempt of

court. Every person shall be obliged to attend as a witness at the

place specified in the subpoena, when subpoenaed, anywhere within

the state. He or she shall be entitled to the fees and mileage, if

claimed, as provided for witness fees pursuant to Section 81 of

Title 28 of the Oklahoma Statutes, and such expense shall be

itemized and charged against, and be paid by, the company being

examined.
Okla. Stat. tit. 36, § 36-6475.16 — OK Code / Title 36 / Section 36-6475.16
Cost of independent review organization
Status: in_force

The health carrier against which a request for a standard

external review or an expedited external review is filed shall pay

the cost of the independent review organization for conducting the

external review.
Okla. Stat. tit. 36, § 36-1622 — OK Code / Title 36 / Section 36-1622
Mortgages on real estate
Status: reserved

A. An insurer may invest any of its funds in bonds, notes or

other evidences of indebtedness which are secured by first mortgages

or deeds of trust upon improved, unencumbered real property located

in the United States, or which are secured by first mortgages or

deeds of trust upon leasehold estates having an expired term of not

less than twenty-one (21) years, inclusive of the term which may be

provided by an enforceable option of renewal, in improved,

unencumbered real property located in the United States.

B. Real property shall not be deemed to be encumbered within

the meaning of this section by reason of the existence of

instruments reserving mineral, oil or timber rights, rights-of-way,

sewer rights, rights in walls, nor by reason of any liens for taxes

or assessments not delinquent, nor by reason of building

restrictions or other restrictive covenants, nor when such real

property is subject to lease under which rents or profits are

reserved to the owner, if in any event the security for such loan is

a first lien upon such real property and if there is no condition or

right of reentry or forfeiture under which, in the case of real

property other than leaseholds, such lien can be cut off,

subordinated, or otherwise disturbed or under which, in the case of

leaseholds, the insurer is unable to continue the lease in force for

the duration of the loan.

Oklahoma Statutes - Title 36. Insurance Page 436

C. 1. No such mortgage loan or loans made or acquired by an

insurer on any one property shall, at the time of investment by the

insurer, exceed eighty percent (80%) of the value, or if the loan is

for purchase money, the lesser of eighty percent (80%) of the value

or purchase price of the real property or leasehold securing the

same, except that such loan or loans may equal the amount of any

guaranty by the United States of America or by any agency or

instrumentality of the United States of America or by any private

insurance company licensed as an authorized insurer by the Insurance

Department of the State of Oklahoma to write mortgage insurance.

Additionally, no single mortgage loan to any individual shall exceed

three percent (3%) of the company's admitted assets, with no more

than thirty-five percent (35%) of the company's admitted assets

invested in total aggregate amount in mortgage loans; provided,

however, that an insurer may invest up to forty-five percent (45%)

of the company's admitted assets invested in total aggregate amount

in mortgage loans if the portfolio average loan to value is seventy-

five percent (75%) or less of fair market value.

The calculation of admitted assets and portfolio average loan to

value is based on the insurer's annual statement as of December 31

last preceding the date of investment, or as shown by a current

financial statement on file with the Commissioner.

2. Mortgage loans made or acquired by an insurer prior to

December 31, 1992, shall be in compliance with the limitation

provided in this subsection for total aggregate investment of

admitted assets in mortgage loans by December 31, 1997. Mortgage

loans made or acquired by an insurer on or after December 31, 1992,

but prior to September 1, 1993, shall be in compliance with the

limitations for investment of admitted assets in single mortgage

loans to individuals and total aggregate investments of admitted

assets in mortgage loans provided in this subsection by December 31,

1997. Insurers shall maintain accurate and adequate records

reflecting the provisions of this section and submit such records

with quarterly and annual statements.

D. No such mortgage loan or loans shall be made or acquired by

an insurer except after an appraisal made by a qualified appraiser

for the purpose of such investment. No change or modification shall

be made to such appraisal by any mortgage underwriter unless such

person is licensed or certified as an appraiser pursuant to the

Oklahoma Certified Real Estate Appraisers Act or unless such person

has been provided by the person who made the appraisal written

consent to make the modification. Such modification shall be

disclosed to the seller and buyer and/or the seller's agent.

E. No such mortgage loan or loans made or acquired by an

insurer after July 1, 2006, shall be made or acquired by an insurer

unless the mortgages or mortgage loans are upon improved,

Oklahoma Statutes - Title 36. Insurance Page 437

unencumbered real property permitted as an investment pursuant to

Section 1624 of this title.

F. No mortgage loan upon a leasehold shall be made or acquired

pursuant to this section unless the terms thereof shall provide for

amortization payments to be made by the borrower on the principal

thereof at least once in each year in amounts sufficient completely

to amortize the loan within a period of four-fifths (4/5) of the

term of the leasehold, inclusive of the term which may be provided

by an enforceable option of renewal, which is unexpired at the time

the loan is made, but in no event exceeding thirty-five (35) years.

G. Subject to specific limitations otherwise applicable, no

more than an aggregate of thirty-five percent (35%), except as

provided in paragraph 1 of subsection C of this section, of the

company's admitted assets may be invested in mortgage loans pursuant

to this section, purchase money mortgages pursuant to Section 1623

of this title, and real property pursuant to Section 1624 of this

title.
Okla. Stat. tit. 36, § 36-1706 — OK Code / Title 36 / Section 36-1706
Excess deposits
Status: in_force

An insurer may so deposit cash or eligible securities in an

amount exceeding its deposit required or otherwise permitted under

this Code, for the purpose of absorbing fluctuations in the value of

securities held in its deposit, and to facilitate the exchange and

substitution of securities deposited. During the solvency of the

insurer any such excess deposit or part thereof shall be released to

the insurer upon its request. During the insolvency of the insurer

such excess deposit shall be released only as provided in Section

1707 of this article.
Okla. Stat. tit. 36, § 36-6141 — OK Code / Title 36 / Section 36-6141
Short title
Status: in_force

Sections 1 through 17 of this act shall be known and may be

cited as the "Prepaid Dental Plan Act".
Okla. Stat. tit. 36, § 36-1530 — OK Code / Title 36 / Section 36-1530
Provisions of act supplemental – Promulgation of rules -
Status: in_force

Exemptions from act.

A. The provisions of this act are supplemental to any other

provisions of the laws of this state, and shall not preclude or

limit any other powers or duties of the Insurance Commissioner under

such laws, including, but not limited to, Article 18 or 19 of the

Insurance Code.

B. The Commissioner may promulgate reasonable rules necessary

for the implementation of this act.

C. The Commissioner may exempt from the application of this act

in any year any domestic insurer which:

1. Writes direct business only in this state; and

2. Assumes no reinsurance in excess of five percent (5%) of

direct premium written.

D. Insurers domiciled in this state that are issuing policies

of medical professional liability insurance to physicians, allied

health care professionals and health care institutions as defined by

Section 2202 of this title on July 1, 2004, which notify the

Commissioner in writing of the insurer’s election to utilize the

moratorium provided in Section 1509 of this title shall be exempt

from the provisions of this title which require an insurer to

maintain an adequate surplus as regards policyholders as a condition

to obtaining or renewal of a license to act as an insurer, until

December 31, 2008. The Commissioner shall not enforce any

recapitalization plan against any insurer domiciled in this state

that is issuing policies of physicians’, allied health care

professionals’ and health care institutions’ professional liability

insurance until December 31, 2008.
Okla. Stat. tit. 36, § 36-6144 — OK Code / Title 36 / Section 36-6144
Application for certificate of authority
Status: in_force

A. An application for a certificate of authority to operate as

a prepaid dental plan organization shall be filed with the

Commissioner in a form prescribed by the Commissioner. The

application shall be verified by an officer or authorized

representative of the applicant, and shall set forth or be

accompanied by:

1. A copy of any basic organizational document of the applicant

such as the articles of incorporation, articles of association,

partnership agreement, trust agreement, or other applicable

documents, with all amendments to such documents;

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

documents regulating the conduct of the internal affairs of the

applicant;

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

the persons who are responsible for the conduct of the business

affairs 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

Oklahoma Statutes - Title 36. Insurance Page 1153

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

partnership or association;

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

providers of dental services or persons listed in paragraph 3 of

this subsection and the applicant;

5. A statement generally describing the prepaid dental plan

organization, all prepaid dental plans offered by said

organizations, and facilities, and personnel;

6. A copy of the form of individual or group membership

coverage or a copy of the contract to be issued to the members;

7. Financial statements showing assets, liabilities, and

sources of financial support of the applicant. If the financial

affairs of the applicant are audited by independent certified public

accountants, a copy of the most recent regular certified financial

statement for the applicant shall satisfy this requirement unless

the Commissioner determines that additional or more recent financial

information is required;

8. A description of the proposed method of marketing the

prepaid dental plan, a financial prospectus which includes a three-

year projection of the initial operating results anticipated, and a

statement as to the sources of working capital available for the

operation of the prepaid dental plan as well as any other sources of

funding;

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

domiciled in this state appointing the Commissioner, as the true and

lawful representative for service of process for said applicant in

this state, upon whom all lawful process in any legal action or

proceeding against the prepaid dental plan organization on a cause

of action arising in this state may be served;

10. A fee of One Hundred Dollars ($100.00) for issuance of a

certificate of authority; and

11. Such other information as the Commissioner may require.

B. Within ten (10) days following any said modification of

information previously furnished as required by subsection A of this

section, a prepaid dental plan organization shall file notice of

said modification with the Commissioner.
Okla. Stat. tit. 36, § 36-4028 — OK Code / Title 36 / Section 36-4028
Dual or multiple pay policies prohibited
Status: in_force

No life insurance policy shall be issued or delivered in this

state if it provides that, on the death of anyone not specifically

named therein, other than a beneficiary, the owner or beneficiary of

the policy shall receive the payment or granting of anything of

value.
Okla. Stat. tit. 36, § 36-6134 — OK Code / Title 36 / Section 36-6134
Certain advertising not prohibited
Status: in_force

Nothing in this act or any other law of the State of Oklahoma

shall be construed to prevent or prohibit advertising of the price

Oklahoma Statutes - Title 36. Insurance Page 1151

or any other information relating to the sale of any funeral

service, funeral benefit, funeral merchandise, or any other property

which may be used in the burial or disposal of the human dead,

provided such advertising shall not be false, fraudulent or

misleading.
Okla. Stat. tit. 36, § 36-984 — OK Code / Title 36 / Section 36-984
Competitive market
Status: in_force

Competitive Market.

A. A competitive market is presumed to exist for a line of

insurance unless the Commissioner, after a hearing, issues an order

stating that a reasonable degree of competition does not exist in

the market. The burden of proof in any hearing shall be placed on

the party or parties advocating the position that competition does

not exist. Any ruling that a market is not competitive shall

identify the factors causing the market not to be competitive. Such

order shall expire no later than one (1) year after issue unless

rescinded earlier by the Commissioner or unless the Commissioner

renews the rule after a hearing and a finding as to the continued

lack of a reasonable degree of competition. Any ruling that renews

the finding that competition does not exist shall also identify the

factors that cause the market to continue not to be competitive.

B. 1. In determining whether a reasonable degree of

competition exists within a line of insurance, the Commissioner

shall consider the following factors:

a. the number of insurers actively engaged in writing

coverage,

b. market shares of the leading writers and the changes

in market shares over a reasonable period of time,

c. existence of financial or economic barriers that could

prevent new firms from entering the market,

d. measures of market concentration and changes of market

concentration over time,

e. whether long-term profitability for insurers in the

market is reasonable in relation to industries of

comparable business risk, and

Oklahoma Statutes - Title 36. Insurance Page 232

f. the relationship of insurers' costs to revenue over a

reasonable period of time.

2. All determinations by the Commissioner shall be made on the

basis of findings of fact and conclusions of law.

3. The ruling may be challenged in the district court.

C. The Commissioner shall monitor the degree and continued

existence of competition in this state on an ongoing basis. In

doing so, the Commissioner may utilize existing relevant

information, analytical systems and other sources, or rely on some

combination thereof. Such activities may be conducted internally

within the Insurance Department, in cooperation with other state

insurance departments, through outside contractors or in any other

appropriate manner.
Okla. Stat. tit. 36, § 36-1693 — OK Code / Title 36 / Section 36-1693
Definitions
Status: in_force

As used in the Protected Cell Companies Act:

1. "Commissioner" means the Oklahoma Insurance Commissioner;

2. "Domestic insurer" means an insurance or reinsurance company

domiciled in the State of Oklahoma or a captive insurance or

reinsurance company domiciled in the State of Oklahoma;

3. "Fair value" of an asset or liability means the monetary

amount at which that asset or liability could be bought, incurred,

sold or settled in a current transaction between willing parties

other than in a forced or liquidation sale. Quoted market prices in

active markets are the best evidence of fair value and shall be used

as the basis for the measurement, if available. If a quoted market

price is available, the fair value is the product of the number of

trading units times market price. If quoted market prices are not

Oklahoma Statutes - Title 36. Insurance Page 513

available, the estimate of fair value shall be based on the best

information available. The estimate of fair value shall consider

prices for similar assets and liabilities and the results of

valuation techniques to the extent available in the circumstances.

Examples of valuation techniques include the present value of

estimated expected future cash flows using a discount rate

commensurate with the risks involved, option pricing models, matrix

pricing, option-adjusted spread models and fundamental analysis.

Valuation techniques for measuring financial assets and liabilities

and servicing assets and liabilities shall be consistent with the

objective of measuring fair value. Those techniques shall

incorporate assumptions that market participants would use in their

estimates of values, future revenues and future expenses, including

assumptions about interest rates, default, prepayment and

volatility. When measuring financial liabilities and servicing

liabilities at fair value by discounting estimated future cash

flows, the objective is to use discount rates at which those

liabilities could be settled in an arm's-length transaction.

Estimates of expected future cash flows, if used to estimate fair

value, shall be the best estimate based on reasonable and

supportable assumptions and projections. All available evidence

shall be considered in developing estimates of expected future cash

flows. The weight given to the evidence shall be commensurate with

the extent to which the evidence can be verified objectively. If a

range is estimated for the amount or timing of possible cash flows,

the likelihood of possible outcomes shall be considered in

determining the best estimate of future cash flows;

4. "Fully funded" means that, with respect to any exposure

attributed to a protected cell, the fair value of the protected cell

assets, on the date on which the insurance securitization is

effected, equals or exceeds the maximum possible exposure

attributable to the protected cell with respect to those exposures;

5. "General account" means the assets and liabilities of a

protected cell company other than protected cell assets and

protected cell liabilities;

6. "Indemnity trigger" means a transaction term by which relief

of the issuer's obligation to repay investors is triggered by the

issuer incurring a specified level of losses under its insurance or

reinsurance contracts;

7. "Nonindemnity trigger" means a transaction term by which

relief of the issuer's obligation to repay investors is triggered

solely by some event or condition other than the individual

protected cell company incurring a specified level of losses under

its insurance or reinsurance contracts;

8. "Protected cell" means an identified pool of assets and

liabilities of a protected cell company segregated and insulated by

Oklahoma Statutes - Title 36. Insurance Page 514

means of this act from the remainder of the protected cell company's

assets and liabilities;

9. "Protected cell account" means a specifically identified

bank or custodial account established by a protected cell company

for the purpose of segregating the protected cell assets of one

protected cell from the protected cell assets of other protected

cells and from the assets of the protected cell company's general

account;

10. "Protected cell assets" means all assets, contract rights

and general intangibles identified with and attributable to a

specific protected cell of a protected cell company;

11. "Protected cell company" means a domestic insurer that has

one or more protected cells;

12. "Protected cell company insurance securitization" means the

issuance of debt instruments, the proceeds from which support the

exposures attributed to the protected cell, by a protected cell

company, where repayment of principal and/or interest to investors

pursuant to the transaction terms is contingent upon the occurrence

or nonoccurrence of an event with respect to which the protected

cell company is exposed to loss under insurance or reinsurance

contracts it has issued;

13. "Protected cell liabilities" means all liabilities and

other obligations identified with and attributable to a specific

protected cell of a protected cell company; and

14. "Receiver" means the Commissioner, where the Commissioner

is acting as a rehabilitator, liquidator or administrative

supervisor of a company, or any person appointed to carry out an

order of rehabilitation or liquidation of a company.
Okla. Stat. tit. 36, § 36-6060.9b — OK Code / Title 36 / Section 36-6060.9b
Cancer therapy coverage – Standard for proton
Status: in_force

radiation therapy.

Oklahoma Statutes - Title 36. Insurance Page 1102

A. A health benefit plan, as defined in subsection C of Section

6060.4 of Title 36 of the Oklahoma Statutes, that provides coverage

for cancer therapy shall be prohibited from holding proton radiation

therapy to a higher standard of clinical evidence for medical policy

benefit coverage decisions than the health plan requires for

coverage of any other radiation therapy treatment.

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

coverage of proton radiation therapy by a health benefit plan.