Okla. Stat. tit. 36, § 36-1926.1 — OK Code / Title 36 / Section 36-1926.1
Netting agreements or qualified financial contracts —
Status: in_force

Oklahoma Statutes - Title 36. Insurance Page 15Contractual rights — Termination — Transfer.

A. As used in this section:

1. "Actual direct compensatory damages" means normal and

reasonable costs of cover or other reasonable measures of damages

utilized in the derivatives, securities, or other market for the

contract and agreement claims. Provided, actual direct compensatory

damages shall not include punitive or exemplary damages, damages for

lost profit or lost opportunity, or damages for pain and suffering;

2. "Business day" means a day other than a Saturday, Sunday, or

any day on which either the New York Stock Exchange or the Federal

Reserve Bank of New York is closed;

3. "Contractual right" means any right set forth in a rule or

bylaw of a derivatives clearing organization, a multilateral

clearing organization, a national securities exchange, a national

securities association, a securities clearing agency, a contract

market designated under the federal Commodity Exchange Act, a

derivatives transaction execution facility registered under the

federal Commodity Exchange Act, or a board of trade or in a

resolution of the governing board thereof and any right, whether or

not evidenced in writing, arising under statutory or common law, or

under law merchant, or by reason of normal business practice; and

4. "Walkaway clause" means a provision in a netting agreement

or a qualified financial contract which, after calculation of a

value of a party's position or an amount due to or from one of the

parties in accordance with its terms upon termination, liquidation,

or acceleration of the netting agreement or qualified financial

contract, either does not create a payment obligation of a party or

extinguishes a payment obligation of a party in whole or in part

solely because of the party's status as a non-defaulting party.

B. Notwithstanding any other provision of the Oklahoma

Insurance Code, including any other provision permitting the

modification of contracts, no person or entity shall be stayed or

prohibited from exercising:

1. A contractual right to cause termination, liquidation,

acceleration, or closeout of obligations under or in connection with

any netting agreement or qualified financial contract with an

insurer because of:

a. the insolvency, financial condition, or default of the

insurer at any time, provided the right is enforceable

under applicable law other than the provisions of this

act, or

Oklahoma Statutes - Title 36. Insurance Page 552

b. the commencement of a formal delinquency proceeding

under the provisions of this section;

2. Any right under a pledge, security, collateral,

reimbursement, guarantee agreement or arrangement, any other similar

security agreement or arrangement, or other credit enhancement

relating to one or more netting agreements or qualified financial

contracts;

3. Subject to any provision of Section 1928 of Title 36 of the

Oklahoma Statutes, any right to set off or net out any termination

value, payment amount, or other transfer obligation arising under or

in connection with one or more qualified financial contracts where

the counterparty or its guarantor is organized under the laws of the

United States or a state or a foreign jurisdiction approved by the

Securities Valuation Office (SVO) of the National Association of

Insurance Commissioners (NAIC) as eligible for netting; or

4. If a counterparty to a master netting agreement or a

qualified financial contract with an insurer subject to a proceeding

under this section terminates, liquidates, closes out, or

accelerates the agreement or contract, damages shall be measured as

of the date or dates of termination, liquidation, closeout, or

acceleration. The amount of a claim for damages shall be actual

direct compensatory damages calculated in accordance with subsection

G of this section.

C. 1. Upon termination of a netting agreement or qualified

financial contract, the net or settlement amount, if any, owed by a

non-defaulting party to an insurer against which an application or

petition has been filed under this section shall be transferred to

or on the order of the receiver for the insurer, even if the insurer

is the defaulting party, notwithstanding any walkaway clause in the

netting agreement or qualified financial contract.

2. Any limited two-way payment or first method provision in a

netting agreement or qualified financial contract with an insurer

which has defaulted shall be deemed to be a full two-way payment or

second method provision as against the defaulting insurer. Any such

property or amount shall, except to the extent it is subject to one

or more secondary liens or encumbrances or rights of netting or

setoff, be a general asset of the insurer.

D. In making any transfer of a netting agreement or qualified

financial contract of an insurer subject to a proceeding under this

section, the receiver shall either:

1. Transfer to one party, other than an insurer subject to a

proceeding under this section, all netting agreements and qualified

financial contracts between a counterparty or any affiliate of the

counterparty and the insurer which is the subject of the proceeding,

including:

Oklahoma Statutes - Title 36. Insurance Page 553

a. all rights and obligations of each party under each

netting agreement and qualified financial contract,

and

b. all property, including any guarantees or other credit

enhancement, securing any claims of each party under

each netting agreement and qualified financial

contract; or

2. Transfer none of the netting agreements, qualified financial

contracts, rights, obligations, or property referred to in paragraph

1 of this subsection, with respect to the counterparty and any

affiliate of the counterparty.

E. If a receiver for an insurer makes a transfer of one or more

netting agreements or qualified financial contracts, then the

receiver shall use its best efforts to notify any person who is

party to the netting agreements or qualified financial contracts of

the transfer by twelve o'clock p.m. on the business day following

the transfer.

F. Notwithstanding any other provision of the Oklahoma

Insurance Code, a receiver shall not avoid a transfer of money or

other property arising under or in connection with a netting

agreement, qualified financial contract, or any pledge, security,

collateral or guarantee agreement, or any other similar security

arrangement or credit support document relating to a netting

agreement or qualified financial contract which is made before the

commencement of a formal delinquency proceeding under this Code.

Provided, however, a transfer may be avoided under Section 1926 of

Title 36 of the Oklahoma Statutes if the transfer was made with

actual intent to hinder, delay, or defraud the insurer, a receiver

appointed for the insurer, or existing or future creditors.

G. 1. In exercising the rights of disaffirmance or repudiation

of a receiver with respect to any netting agreement or qualified

financial contract to which an insurer is a party, the receiver for

the insurer shall either:

a. disaffirm or repudiate all netting agreements and

qualified financial contracts between a counterparty

or any affiliate of the counterparty and the insurer

which is the subject of the proceeding, or

b. disaffirm or repudiate none of the netting agreements

and qualified financial contracts referred to in

subparagraph a of this paragraph with respect to the

person or any affiliate of the person or entity.

2. Notwithstanding any other provision of this Code, any claim

of a counterparty against the estate arising from the receiver's

disaffirmance or repudiation of a netting agreement or qualified

financial contract which has not been previously affirmed in the

liquidation or immediately preceding a conservation or

rehabilitation case shall be determined and shall be allowed or

Oklahoma Statutes - Title 36. Insurance Page 554

disallowed as if the claim had arisen before the date of the filing

of the petition for liquidation or, if a conservation or

rehabilitation proceeding is converted to a liquidation proceeding,

as if the claim had arisen before the date of the filing of the

petition for conservation or rehabilitation. The amount of the

claim shall be the actual direct compensatory damages determined as

of the date of the disaffirmance or repudiation of the netting

agreement or qualified financial contract.

H. The provisions of this section shall not apply to persons or

entities who are affiliates of the insurer which is the subject of

the proceeding.

I. All rights of counterparties under this Code shall apply to

netting agreements and qualified financial contracts entered into on

behalf of the general account or separate accounts if the assets of

each separate account are available only to counterparties to

netting agreements and qualified financial contracts entered into on

behalf of the separate account.
Okla. Stat. tit. 36, § 36-1416 — OK Code / Title 36 / Section 36-1416
State Innovation Waiver
Status: in_force

A. There is hereby authorized the creation and submission of a

State Innovation Waiver for the purpose of creating Oklahoma health

insurance products that improve health and healthcare quality while

controlling costs.

B. The State Innovation Waiver may include multiple waiver

submissions under federal waiver authorities, including:

1. Waivers as provided in Section 1332 of the federal

Affordable Care Act for the purpose of waiving certain federal

insurance and tax regulations to create more state flexibility

within the health insurance market; and

2. Waivers as provided in Section 1115 of the federal Social

Security Act for the purpose of participating in the Delivery System

Reform Incentive Payment Program or uncompensated care pools or both

the Delivery System Reform Incentive Payment Program and

uncompensated care pools with the aim of incentivizing providers

through payment for achieving better health outcomes.

C. The State Innovation Waiver shall be created consistent with

the innovation design plan developed through the Oklahoma Health

Improvement Plan. It shall be presented to the Oklahoma Legislature

along with a summary of comments received from public hearings and

shall include the identification of specific provisions of the

Affordable Care Act to be waived in the State of Oklahoma.

D. Participating agencies, including but not limited to the

State Department of Health, the Oklahoma Health Care Authority, the

Department of Mental Health and Substance Abuse Services and the

Insurance Department, shall develop the State Innovation Waiver with

input from the private sector partners and various subject matter

experts and submit any and all necessary information for approval to

all relevant entities.

E. The Insurance Department is hereby authorized to conduct

rate review for the individual and small group health insurance

market upon implementation of the State Innovation Waiver under

Section 1332 of the federal Affordable Care Act.
Okla. Stat. tit. 36, § 36-1931 — OK Code / Title 36 / Section 36-1931
Report for assessment
Status: in_force

Within three (3) years from the date an order or rehabilitation

or liquidation of a domestic mutual insurer or a domestic reciprocal

insurer was filed in the office of the clerk of the court by which

such order was made, the Insurance Commissioner may make a report to

the court setting forth:

1. The reasonable value of the assets of the insurer,

2. The insurer's probable liabilities, and

3. The probable necessary assessment, if any, to pay all claims

and expenses in full, including expenses of administration.
Okla. Stat. tit. 36, § 36-2515 — OK Code / Title 36 / Section 36-2515
Representations; deemed material when
Status: in_force

No representation made in obtaining or securing a policy of

insurance on the life or lives of any person, or persons, shall be

deemed material, or render the policy void, unless the matter

misrepresented shall have actually contributed to the contingency or

event on which the policy is to become due and payable.
Okla. Stat. tit. 36, § 36-311A.12 — OK Code / Title 36 / Section 36-311A.12
Accountant letter to insurer - Contents
Status: in_force

The accountant shall furnish the insurer in connection with, and

for inclusion in, the filing of the annual audited financial report,

a letter stating:

1. That the accountant is independent with respect to the

insurer and conforms to the standards of the profession as contained

in the Code of Professional Ethics and pronouncements of the

American Institute of Certified Public Accountants (AICPA) and the

Rules of Professional Conduct of the Oklahoma Board of Public

Accountancy, or similar code;

2. The background and experience in general, and the experience

in audits of insurers of the staff assigned to the engagement and

whether each is an independent certified public accountant. Nothing

within the Oklahoma Annual Financial Report Act shall be construed

as prohibiting the accountant from utilizing such staff as the

accountant deems appropriate where use is consistent with the

standards prescribed by generally accepted auditing standards;

3. That the accountant understands the annual audited financial

report and the opinion of the accountant thereon will be filed in

compliance with the Oklahoma Annual Financial Report Act and that

the Insurance Commissioner will be relying on this information in

the monitoring and regulation of the financial position of insurers;

4. That the accountant consents to the requirements of Section

311A.13 of this title and that the accountant consents and agrees to

make available for review by the Commissioner the work papers, as

defined in Section 311A.13 of this title;

5. A representation that the accountant is properly licensed by

an appropriate state licensing authority and is a member in good

standing in the AICPA; and

6. A representation that the accountant is in compliance with

the requirements of Section 311A.7 of this title.
Okla. Stat. tit. 36, § 36-1606 — OK Code / Title 36 / Section 36-1606
Required capital investments
Status: in_force

After the effective date of this act, until an insurer

authorized to transact business shall have assets of One Million

Dollars ($1,000,000.00) or in the case of insurers authorized to

transact business prior to the effective date of this act shall have

assets in an amount equal to three (3) times the minimum paid-in

capital that was required of a like domestic stock insurer on

January 1, 1979, it shall invest and maintain its funds only in cash

and the securities described in the following sections of this

article: Section 1607 (Securities of or guaranteed by the United

States); Section 1608 (State and Canadian public obligations);

Section 1609 (County, municipal and district obligations); Section

1610 (Public improvement bonds); and Section 1620 (Deposits: Banks,

Savings and Loan).
Okla. Stat. tit. 36, § 36-5002 — OK Code / Title 36 / Section 36-5002
Investments of title insurers
Status: in_force

A. A domestic title insurer shall invest its capital

accumulations, up to the sum of One Hundred Thousand Dollars

($100,000.00), in capital investments as defined in Section 1606 of

Article 16 (Investments), but subject to the exception in subsection

B of this section, below.

B. A domestic title insurer may invest its capital and

accumulations in excess of One Hundred Thousand Dollars

($100,000.00) in such investments as are made eligible for funds of

domestic insurers by Article 16; except, that any such insurer may

invest an amount not exceeding fifty percent (50%) of its combined

capital and surplus in the preparation and purchase of material or

Oklahoma Statutes - Title 36. Insurance Page 1018

plants or both necessary to enable it to engage in the business of

title insurance, and such materials and plants shall be deemed to be

capital funds investments and shall be valued as the actual cost

thereof.

C. Domestic title insurers shall not be subject to the

limitations as to amount invested in real estate for home office and

branch office purposes contained in paragraph 1 of Section 1624 of

Article 16.
Okla. Stat. tit. 36, § 36-6570.56 — OK Code / Title 36 / Section 36-6570.56
Timeframe for validity of prior authorizations for
Status: in_force

chronic conditions.

A. If a prior authorization is required for a prescription drug

for the treatment of a chronic condition of an enrollee, and the

enrollee remains on the same health plan, then the prior

authorization shall remain valid for three (3) years from the date

the health care provider receives the prior authorization approval,

unless clinical criteria changes, the enrollee's health plan removes

the generic prescription drug from the formulary, or moves the

prescription drug to a less preferred tier status on its formulary.

B. This section shall not apply to prior authorizations

approved for:

1. A prescription drug that is an opioid or is a controlled

substance that is prohibited from being dispensed without a

prescription under the Federal Food, Drug, and Cosmetic Act, 21

U.S.C., Section 301 et seq., as amended; or

2. A prescription drug for the treatment of weight loss.

C. Provided the provisions of this section do not violate any

applicable law, regulation, or the Oklahoma Medicaid State Plan.
Okla. Stat. tit. 36, § 36-6991 — OK Code / Title 36 / Section 36-6991
Prohibiting refusal of coverage for durable medical
Status: in_force

equipment.

A. As used in this section:

1. “Durable medical equipment” means equipment as defined

pursuant to Section 375.2 of Title 59 of the Oklahoma Statutes;

2. “Health benefit plan” means a health benefit plan as defined

pursuant to Section 6060.4 of Title 36 of the Oklahoma Statutes, but

shall not include any health benefit plan offered by a contracted

entity as defined in Section 4002.2 of Title 56 of the Oklahoma

Statutes that provides coverage to members of the state Medicaid

program;

3. “Health care provider” means a provider as defined pursuant

to Section 6571 of Title 36 of the Oklahoma Statutes;

4. “Health maintenance organization” or “HMO” means a health

maintenance organization as defined pursuant to Section 6902 of

Title 36 of the Oklahoma Statutes, but shall not include any health

benefit plan offered by a contracted entity as defined in Section

4002.2 of Title 56 of the Oklahoma Statutes that provides coverage

to members of the state Medicaid program; and

5. “Preferred provider organization” or “PPO” means a preferred

provider organization as defined pursuant to Section 6054 of Title

36 of the Oklahoma Statutes.

B. No health benefit plan, HMO, PPO, or other provider network

authorized to administer health care coverage in this state shall

refuse coverage to an insured for durable medical equipment and

supplies as prescribed by a health care provider, regardless of

whether they are in-network or out-of-network, unless there is an

Oklahoma-licensed in-network provider within a fifteen-mile radius

of the patient’s home address that can provide in-person evaluation

for durable medical equipment, supplies, and related services.

Oklahoma Statutes - Title 36. Insurance Page 1460

C. If a health care provider deems it necessary that an insured

receive covered durable medical equipment or supplies within twenty-

four (24) hours, the insured shall not be subject to drop-shipped

orders and may seek such equipment and supplies from any health care

provider who can provide the necessary services and supplies within

the requested time frame.

D. When an insured utilizes an out-of-network health care

provider, as described in subsection B of this section, the out-of-

network provider shall be reimbursed at the same rate and benefit

level for the provided services as an in-network provider for the

health benefit plan, HMO, PPO, or other provider network authorized

to administer health care coverage in this state.
Okla. Stat. tit. 36, § 36-1424.14 — OK Code / Title 36 / Section 36-1424.14
Renumbered as § 1435.21 of this title by Laws 2001, c
Status: in_force

156, § 35, eff. Nov. 1, 2001.
Okla. Stat. tit. 36, § 36-1509.1 — OK Code / Title 36 / Section 36-1509.1
Confidentiality of information
Status: in_force

All work papers, recorded information, documents and copies of

materials associated with, produced, obtained by or disclosed to the

Insurance Commissioner or any other person in the course of review

or analysis pursuant to Sections 1801 through 1938 of this title

shall be given confidential treatment by the Commissioner and may

not be made public by the Commissioner or any other person who

obtained the information in the course of the review or analysis,

except to the extent provided in Sections 1801 through 1938 of this

title, unless prior written consent of the company to which it

pertains has been obtained. The confidentiality and protection from

discovery by subpoena provided for in this paragraph shall not be

construed to be extended to identical, similar or other related

documents or information or to the work papers that are not deemed

to be in the possession, custody or control of the Commissioner.
Okla. Stat. tit. 36, § 36-2123 — OK Code / Title 36 / Section 36-2123
Dividends to mutual policyholders
Status: in_force

A. The directors of a domestic mutual insurer may from time to

time apportion and pay or credit to its members dividends only out

of that part of its surplus which is in excess of its required

minimum surplus.

B. A dividend otherwise proper may be payable out of such

savings and earnings even though the insurer's total surplus is then

less than the aggregate of its contributed surplus.
Okla. Stat. tit. 36, § 36-1603 — OK Code / Title 36 / Section 36-1603
Qualification of securities or property as eligible
Status: in_force

investments.

A. No security or investment (other than property or shares

acquired pursuant to Sections 1612, 1616 or 1624 of this article)

shall be eligible for acquisition unless it is interest bearing or

interest accruing or dividend or income paying, is not then in

default in any respect, and the insurer is entitled to receive for

its exclusive account and benefit the interest or income accruing

thereon. Defaults in interest or income occurring subsequent to

acquisition of an investment shall not affect allowance thereof as

an asset.

B. No security or investment shall be eligible for purchase at

a price above its market value.

C. No provision of this article shall prohibit the acquisition

by an insurer of other or additional securities or property if

received as a dividend or as a lawful distribution of assets, or if

acquired pursuant to a lawful and bona fide agreement of bulk

reinsurance, merger, or consolidation. Any investment so acquired

through bulk reinsurance, merger, or consolidation, which is not

otherwise eligible under this article, shall be disposed of pursuant

to Section 1625 of this article.
Okla. Stat. tit. 36, § 36-2412 — OK Code / Title 36 / Section 36-2412
Medical examination of applicant; warranties and
Status: in_force

certificates in lieu of examination; concealment or

misrepresentation.

A. Applicants for membership in mutual benefit associations

shall be required to pass a medical or physical examination, if

required by the bylaws of the association; or benefit certificates

may be issued upon the warranty by the applicant that the answers

and statements to the questions as to the condition of health of the

applicant and all statements and answers made or appearing in the

application for a benefit certificate are true and are to be used as

the basis and consideration upon which said benefit certificate is

issued, provided, that in addition to the answers and

representations of the applicant for membership, as herein provided,

the applicant shall give the name and address of his or her family

physician and shall if required by the association furnish to the

association a certificate of such physician, or if the applicant has

no family physician, a certificate of a licensed physician, that he

knows the applicant and believes that the applicant is a good,

insurable risk; provided, that if the family physician refuses to

sign a certificate stating whether applicant is a good insurable

risk, a certificate from some other licensed physician may be

secured; and, provided, further, that the fee for such certificate

shall not exceed fifty cents ($0.50).

B. Any beneficiary, his agent or representative, under any

policy or certificate issued by any association or company coming

within this article, or any doctor, undertaker or other attendant,

who shall knowingly conceal, withhold, or misrepresent any facts in

any verified report or declaration under oath concerning the health,

age, cause of death or other material information as to the deceased

member or policy holder because of whose death or accident claim is

being made, shall be guilty of perjury and shall be subject to the

penalties therefor prescribed by law.Oklahoma Statutes - Title 36. Insurance Page 17
Okla. Stat. tit. 36, § 36-311A.17 — OK Code / Title 36 / Section 36-311A.17
Exemptions from compliance - Effective dates
Status: in_force

A. Upon written application of any insurer, the Insurance

Commissioner may grant an exemption from compliance with any and all

provisions of the Oklahoma Annual Financial Report Act if the

Commissioner finds, upon review of the application, that compliance

with the Oklahoma Annual Financial Report Act would constitute a

financial or organizational hardship upon the insurer. An exemption

may be granted at any time and from time to time for a specified

period or periods. Within ten (10) days from a denial of the

written request of an insurer for an exemption from the Oklahoma

Annual Financial Report Act, the insurer may request in writing a

hearing on its application for an exemption. The hearing shall be

held in accordance with the Administrative Procedures Act and the

laws and rules of the Insurance Department.

B. Domestic insurers retaining a certified public accountant

who qualify as independent shall comply with the Oklahoma Annual

Financial Report Act each year unless the Commissioner permits

otherwise.

C. Domestic insurers not retaining a certified public

accountant on the effective date of the Oklahoma Annual Financial

Report Act who qualifies as independent may meet the following

schedule for compliance unless the Commissioner permits otherwise:

1. File with the Commissioner an audited financial report; and

2. Each year such insurers shall file with the Commissioner all

reports and communication required by the Oklahoma Annual Financial

Report Act.

D. Foreign insurers shall comply with the Oklahoma Annual

Financial Report Act each year unless the Commissioner permits

otherwise.

E. The requirements of subsection D of Section 311A.7 of this

title shall be in effect for audits of each year.

F. An insurer or group of insurers, not required to have

independent audit committee members or only required to have a

majority of independent audit committee members, due to the total

written and assumed premium being below the threshold, shall have

one (1) year following the year the threshold is exceeded to comply

with the independence requirements. An insurer acquired as a result

of a business combination shall have one (1) calendar year following

the date of acquisition or combination to comply with the

independence requirements.

G. An insurer or group of insurers, not required to file a

report because the total written premium is below the threshold,

which subsequently becomes subject to the reporting requirements,

shall have two (2) years following the year the threshold is

Oklahoma Statutes - Title 36. Insurance Page 98

exceeded to file a report. Likewise, an insurer acquired in a

business combination shall have two (2) calendar years following the

date of acquisition or combination to comply with the reporting

requirements.

H. If an insurer or group of insurers that is exempt from the

requirements of Section 8 of this act no longer qualifies for that

exemption, it shall have one (1) year after the year the threshold

is exceeded to comply with the requirements of this act.
Okla. Stat. tit. 36, § 36-2108 — OK Code / Title 36 / Section 36-2108
Amendment of articles
Status: in_force

A. The articles of incorporation of a stock insurer increasing

or reducing authorized capital or for other purposes may be amended

in accordance with the general laws of Oklahoma applying to

corporations formed for profit. No amendment shall reduce

authorized capital below the amount required by this Code for the

kinds of insurance thereafter to be transacted.

B. The articles of incorporation of a mutual insurer may be

amended by the affirmative vote of two-thirds (2/3) of its members

present in person or by proxy at a regular or special meeting of

members of which notice in writing setting forth the proposed

amendment was mailed to all members at least thirty (30) days in

advance. A certificate of the amendments, signed and acknowledged

by the president and attested by the secretary of the corporation

shall be filed with the Commissioner and the Secretary of State.
Okla. Stat. tit. 36, § 36-5003 — OK Code / Title 36 / Section 36-5003
Additional powers of title insurers
Status: in_force

A title insurer may engage in such other business not

inconsistent with the business of issuing title insurance policies

as may be authorized by its corporate charter.
Okla. Stat. tit. 36, § 36-701 — OK Code / Title 36 / Section 36-701
Definitions not mutually exclusive
Status: in_force

It is intended that certain coverages may come within the

definitions of two or more kinds of insurance as set forth in this

article, and the fact that such a coverage is included within one

definition shall not exclude such coverage as to any other kind of

insurance within the definition of which such coverage likewise

reasonably is includable.
Okla. Stat. tit. 36, § 36-309.3 — OK Code / Title 36 / Section 36-309.3
Appointment of examiner - Compliance with examiner's
Status: in_force

requests - Powers of Commissioner.

A. Upon determining that an examination should be conducted,

the Insurance Commissioner shall issue an examination warrant

appointing one or more examiners to perform the examination and

instructing them as to the scope of the examination. In conducting

the examination, the examiner shall observe those guidelines and

procedures set forth in the Examiners' Handbook adopted by the

National Association of Insurance Commissioners as supplemented by

rules of the Commissioner. The Commissioner may also employ such

other guidelines or procedures as the Commissioner may deem

appropriate.

B. Every company or person from whom information is sought,

including all of its officers, directors, employees and agents,

shall provide to the Commissioner and examiners timely, convenient,

and free access at all reasonable hours at its offices to all books,

records, accounts, papers, documents, and any or all computer or

other recordings relating to the property, assets, business and

affairs of the company being examined. The officers, directors,

employees and agents of the company or person shall facilitate such

examination and aid in such examination so far as it is in their

power to do so. The refusal of any company, by its officers,

directors, employees or agents, to submit to examination or to

comply with any reasonable written request of the examiners shall be

grounds for suspension or refusal of, or nonrenewal of any license

or authority held by the company to engage in an insurance or other

business subject to the Commissioner's jurisdiction. Any such

proceedings for suspension, revocation or refusal of any license or

authority shall be conducted pursuant to Section 619 of this title.

C. The Commissioner or examiners shall have the power to issue

subpoenas, to administer oaths and to examine under oath any person

Oklahoma Statutes - Title 36. Insurance Page 64

as to any matter pertinent to the examination. Upon the failure or

refusal of any person to obey a subpoena, the Commissioner may

petition a court of competent jurisdiction, and upon proper showing,

the Court may enter any 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.

D. When making an examination under Sections 309.1 through

309.7 of this title, the Commissioner may retain attorneys,

appraisers, independent actuaries, independent certified public

accountants or an accounting firm or individual holding a permit to

practice public accounting, certified financial examiners or other

professionals and specialists as examiners, the cost of which shall

be borne by the company which is the subject of the examination.

E. Nothing contained in Sections 309.1 through 309.7 of this

title shall be construed to limit the Commissioner's authority to

terminate or suspend any examination in order to pursue other legal

or regulatory action pursuant to the insurance laws of this state.

Findings of fact and conclusions made in any examination report

shall be prima facie evidence in any legal or regulatory action.

F. Nothing contained in Sections 309.1 through 309.7 of this

title shall be construed to limit the Commissioner's authority to

use and, if appropriate, to make public any final or preliminary

examination report, any examiner or company workpapers or other

documents, or any other information discovered or developed during

the course of any examination in the furtherance of any legal or

regulatory action which the Commissioner may deem appropriate.
Okla. Stat. tit. 36, § 36-1609 — OK Code / Title 36 / Section 36-1609
County, district, city, school district or Canadian
Status: in_force

obligations.

An insurer may invest in bonds, notes, warrants and other

securities not in default of any county, district, incorporated

city, or school district in any state of the United States, or the

District of Columbia, or in any province of Canada, which are the

direct obligations of such county, district, city or school district

and for payment of the principal and interest of which the county,

district, city, or school district has lawful authority to levy

taxes or make assessments. Bonds, notes, warrants and other

securities classified as revenue, prerefunded or declining balances

are not considered acceptable investments for this purpose.
Okla. Stat. tit. 36, § 36-619.1 — OK Code / Title 36 / Section 36-619.1
Availability of coverage without regard to geographic
Status: in_force

location.

All insurers, as a condition of their authority to transact

insurance in this state, shall make available all of the kinds of

insurance coverage that they are transacting in this state to all

Oklahoma Statutes - Title 36. Insurance Page 136

Oklahoma residents, without regard to geographic location, but

subject to the insurers' underwriting standards.
Okla. Stat. tit. 36, § 36-6718 — OK Code / Title 36 / Section 36-6718
Classification and filing terms - Individual and group
Status: in_force

policies allowed.

A. Notwithstanding any other provision of the Travel Insurance

Act, travel insurance shall be classified and filed for purposes of

rates and forms under an inland marine line of insurance; provided,

however, that travel insurance covering sickness, accident,

disability or death occurring during travel, either exclusively or

in conjunction with related coverages of emergency evacuation or

repatriation of remains, may be filed under either an inland marine

line of insurance or an accident and health line of insurance.

B. Travel insurance may be provided under an individual policy

or under a group or master policy.

C. Eligibility and underwriting standards for travel insurance

may be developed and provided based on travel protection plans

designed for the individual or identified marketing or distribution

channels, provided those standards also meet the underwriting

standards for inland marine lines of insurance in this state.
Okla. Stat. tit. 36, § 36-1125 — OK Code / Title 36 / Section 36-1125
Filing requirements
Status: in_force

A. Every property and casualty insurance company doing business

in this state, unless otherwise exempted by the domiciliary

commissioner, shall annually submit the opinion of an appointed

actuary entitled “Statement of Actuarial Opinion”. This opinion

shall be filed in accordance with the appropriate NAIC Property and

Casualty Annual Statement Instructions.

B. 1. Every property and casualty insurance company domiciled

in this state that is required to submit a Statement of Actuarial

Opinion shall annually submit an actuarial opinion summary written

by the company’s appointed actuary. This actuarial opinion summary

shall be filed in accordance with the appropriate NAIC Property and

Casualty Annual Statement Instructions and shall be considered as a

document supporting the actuarial opinion required in subsection A

of this section.

2. A company licensed but not domiciled in this state shall

provide the actuarial opinion summary upon request.

C. 1. An actuarial report and underlying workpapers as

required by the appropriate NAIC Property and Casualty Annual

Statement Instructions shall be prepared to support each actuarial

opinion.

2. If the insurance company fails to provide a supporting

actuarial report and/or workpapers at the request of the Insurance

Commissioner or the Commissioner determines that the supporting

actuarial report or workpapers provided by the insurance company are

otherwise unacceptable to the Commissioner, the Commissioner may

engage a qualified actuary at the expense of the company to review

the opinion and the basis for the opinion and prepare the supporting

actuarial report or workpapers.

D. The appointed actuary shall not be liable for damages to any

person, other than the insurance company and the Commissioner, for

any act, error, omission, decision or conduct with respect to the

actuary’s opinion, except in cases of fraud or willful misconduct on

the part of the appointed actuary.
Okla. Stat. tit. 36, § 36-4406 — OK Code / Title 36 / Section 36-4406
Conforming to statute
Status: in_force

A. Other Policy Provisions. No policy provision which is not

subject to section 4405 of this article shall make a policy, or any

portion thereof, less favorable in any respect to the insured or the

beneficiary than the provisions thereof which are subject to this

article.

B. Policy Conflicting with this Article. A policy delivered or

issued for delivery to any person in this state in violation of this

article shall be held valid but shall be construed as provided in

this article. When any provision in a policy subject to this

article is in conflict with any provision of this article, the

rights, duties and obligations of the insurer, the insured and the

beneficiary shall be governed by the provisions of this article.
Okla. Stat. tit. 36, § 36-4507 — OK Code / Title 36 / Section 36-4507
Rules and regulations
Status: in_force

The Insurance Commissioner may make and promulgate written rules

and regulations reasonable, necessary and incidental to the

enforcement and administration of the provisions of this article.
Okla. Stat. tit. 36, § 36-3614 — OK Code / Title 36 / Section 36-3614
Contents of policies; additional contents
Status: in_force

A policy may contain additional provisions not inconsistent with

this Code and which are:

1. Required to be inserted by the laws of the insurer's

domicile;

2. Necessary, on account of the manner in which the insurer is

constituted or operated, in order to state the rights and

obligations of the parties to the contract; or

3. Desired by the insurer and neither prohibited by law nor in

conflict with any provisions required to be included therein.
Okla. Stat. tit. 36, § 36-2025 — OK Code / Title 36 / Section 36-2025
Oklahoma Life and Health Insurance Guaranty Association
Status: in_force

Act - Coverage - Liability.

A. For the policies and contracts specified in subsection B of

this section, the Oklahoma Life and Health Insurance Guaranty

Association Act shall provide coverage:

1. a. To persons, who regardless of where they reside,

except for nonresident certificate holders under group

policies or contracts, are the beneficiaries,

assignees or payees, including health care providers

rendering services covered under health insurance

policies or certificates, of the persons covered under

subparagraph b of this paragraph,

b. To persons who are owners of or certificate holders or

enrollees under the policies or contracts, other than

structured settlement annuities, and in each case who:

(1) are residents, or

(2) are not residents, but only under all of the

following conditions:

(a) the member insurer that issued the policies

or contracts are domiciled in this state,

(b) the states in which the persons reside have

associations similar to the Oklahoma Life

and Health Insurance Guaranty Association

created by this act, and the persons are not

eligible for coverage by an association in

any other state due to the fact that the

insurer or health maintenance organization

was not licensed in the state at the time

specified in the guaranty association law of

the state;

Oklahoma Statutes - Title 36. Insurance Page 595

2. Subparagraphs a and b of paragraph 1 of this subsection

shall not apply to structured settlement annuities specified in

subsection B of this section and in the Oklahoma Life and Health

Insurance Guaranty Association Act shall, except as provided in

paragraphs 3 and 4 of this subsection, provide coverage to a person

who is a payee under a structured settlement annuity or a

beneficiary of a payee if the payee is deceased, if the payee:

a. is a resident, regardless of where the contract owner

resides, or

b. is not a resident, but only under both of the

following conditions:

(1) (a) the contract owner of the structured

settlement annuity is a resident, or

(b) the contract owner of the structured

settlement annuity is not a resident but:

i. the insurer that issued the structured

settlement annuity is domiciled in this

state, and

ii. the state in which the contract owner

resides has an association similar to

the association created by the Oklahoma

Life and Health Insurance Guaranty

Association Act, and

(2) neither the payee nor beneficiary nor the

contract owner is eligible for coverage by the

association of the state in which the payee or

contract owner resides;

3. The Oklahoma Life and Health Insurance Guaranty Association

Act shall not provide coverage to a person who is a payee or

beneficiary of a contract owner resident of this state, if the payee

or beneficiary is afforded coverage by the association of another

state; and

4. The Oklahoma Life and Health Insurance Guaranty Association

Act is intended to provide coverage to a person who is a resident of

this state and in special circumstances, to a nonresident. In order

to avoid duplicate coverage, if a person who would otherwise receive

coverage under the Oklahoma Life and Health Insurance Guaranty

Association Act is provided coverage under the laws of any other

state, the person shall not be provided coverage under the Oklahoma

Life and Health Insurance Guaranty Association Act. In determining

the application of the provisions of this paragraph to situations

where a person could be covered by the association of more than one

state, whether as an owner, payee, enrollee, beneficiary or

assignee, the Oklahoma Life and Health Insurance Association Act

shall be construed in conjunction with the laws of other states to

result in coverage by only one association.

Oklahoma Statutes - Title 36. Insurance Page 596

B. 1. The Oklahoma Life and Health Insurance Guaranty

Association Act shall provide coverage to the persons specified in

subsection A of this section for policies or contracts of direct,

non-group life insurance, health insurance, which for the purposes

of this act includes health maintenance organization subscriber

contracts and certificates, or annuities and supplemental policies

or contracts to any of these, and for certificates under direct

group policies and contracts, except as limited by the Oklahoma Life

and Health Insurance Guaranty Association Act. Annuity contracts

and certificates under group annuity contracts include allocated

funding agreements, structured settlement annuities and any

immediate or deferred annuity contracts.

2. Except as provided in paragraph 3 of this subsection, the

Oklahoma Life and Health Insurance Guaranty Association Act shall

not provide coverage for:

a. a portion of a policy or contract not guaranteed by

the insurer, or under which the risk is borne by the

policy or contract owner,

b. a policy or contract of reinsurance, unless assumption

certificates have been issued pursuant to the

reinsurance policy or contract,

c. a portion of a policy or contract to the extent that

the rate of interest on which it is based, or the

interest rate, crediting rate or similar factor

determined by use of an index or other external

reference stated in the policy or contract employed in

calculating returns or changes in value:

(1) averaged over the period of four (4) years prior

to the date on which the Association becomes

obligated with respect to the policy or contract,

exceeds a rate of interest determined by

subtracting two (2) percentage points from

Moody's Corporate Bond Yield Average averaged for

that same four-year period or for such lesser

period if the policy or contract was issued less

than four (4) years before the Association became

obligated, and

(2) on and after the date on which the Association

becomes obligated with respect to the policy or

contract, exceeds the rate of interest determined

by subtracting three (3) percentage points from

Moody's Corporate Bond Yield Average as most

recently available,

d. a portion of a policy or contract issued to a plan or

program of an employer, association or other person to

provide life, health or annuity benefits to its

employees, members or others, to the extent that the

Oklahoma Statutes - Title 36. Insurance Page 597

plan or program is self-funded or uninsured, including

but not limited to benefits payable by an employer,

association or other person under:

(1) a Multiple Employer Welfare Arrangement as

defined in 29 U.S.C. Section 1144,

(2) a minimum premium group insurance plan,

(3) a stop-loss group insurance plan, or

(4) an administrative services only contract,

e. a portion of a policy or contract to the extent that

it provides for:

(1) dividends or experience rating credits,

(2) voting rights, or

(3) payment of any fees or allowances to any person,

including the policy or contract owner, in

connection with the service to or administration

of the policy or contract,

f. a policy or contract issued in this state by a member

insurer at a time when it was not licensed or did not

have a certificate of authority to issue the policy or

contract in this state,

g. a portion of a policy or contract to the extent that

the assessments required by Section 2030 of this title

with respect to the policy or contract are preempted

by federal or state law,

h. an obligation that does not arise under the express

written terms of the policy or contract issued by the

member insurer to the enrollee, certificate holder or

contract or policy owner, including without

limitation:

(1) claims based on marketing materials,

(2) claims based on side letters, riders or other

documents that were issued by the member insurer

without meeting applicable policy or contract

form filing or approval requirements,

(3) misrepresentations of or regarding policy or

contract benefits,

(4) extra-contractual claims, or

(5) a claim for penalties or consequential or

incidental damages,

i. a contractual agreement that establishes the

obligations of the member insurer to provide a book

value accounting guaranty for defined contribution

benefit plan participants by reference to a portfolio

of assets that is owned by the benefit plan or its

trustee, which in each case is not an affiliate of the

member insurer,

j. an unallocated annuity contract,

Oklahoma Statutes - Title 36. Insurance Page 598

k. a portion of a policy or contract to the extent it

provides for interest or other changes in value to be

determined by the use of an index or other external

reference stated in the policy or contract, but which

have not been credited to the policy or contract, or

as to which the policy or contract owner's rights are

subject to forfeiture, as of the date the member

insurer becomes an impaired or insolvent insurer under

the Oklahoma Life and Health Insurance Guaranty

Association Act, whichever is earlier. If a policy's

or contract's interest or changes in value are

credited less frequently than annually, then for

purposes of determining the values that have been

credited and are not subject to forfeiture under this

subparagraph, the interest or change in value

determined by using the procedures defined in the

policy or contract will be credited as if the

contractual date of crediting interest or changing

values was the date of impairment or insolvency,

whichever is earlier, and will not be subject to

forfeiture, or

l. a policy or contract providing any hospital, medical,

prescription drug or other health care benefits

pursuant to Part C or Part D of Subchapter XVIII,

Chapter 7 of Title 42 of the United States Code,

commonly known as Medicare Part C or Part D, or

Subchapter XIX, Chapter 7 of Title 42 of the United

States Code or any regulations issued pursuant

thereto.

3. The exclusion from coverage in this section shall not apply

to any portion of a policy or contract, including a rider that

provides long-term care or any other health insurance benefits.

C. The benefits that the Association may become obligated to

cover shall in no event exceed the lesser of:

1. The contractual obligations for which the member insurer is

liable or would have been liable if it were not an impaired or

insolvent insurer; or

2. a. with respect to any one life, regardless of the number

of policies or contracts:

(1) Three Hundred Thousand Dollars ($300,000.00) in

life insurance death benefits, but not more than

One Hundred Thousand Dollars ($100,000.00) in net

cash surrender and net cash withdrawal values for

life insurance,

(2) for health insurance benefits:

(a) One Hundred Thousand Dollars ($100,000.00)

for coverages not defined as disability

Oklahoma Statutes - Title 36. Insurance Page 599

income insurance or health benefit plans or

long-term care insurance as defined in

Section 4424 of this title, including any

net cash surrender and net cash withdrawal

values,

(b) Three Hundred Thousand Dollars ($300,000.00)

for insurance providing income payments to

an insured wage earner when income is

interrupted or terminated because of

illness, sickness or accident, commonly

known as disability income insurance and

Three Hundred Thousand Dollars ($300,000.00)

for long-term care insurance as defined in

Section 4424 of this title, and

(c) Five Hundred Thousand Dollars ($500,000.00)

for health benefit plans, or

(3) Three Hundred Thousand Dollars ($300,000.00) in

the present value of annuity benefits, including

net cash surrender and net cash withdrawal

values, or

b. with respect to each payee of a structured settlement

annuity or beneficiary or beneficiaries of the payee

if the payee is deceased, Three Hundred Thousand

Dollars ($300,000.00) in present value annuity

benefits, in the aggregate, including net cash

surrender and net cash withdrawal values,

c. however, in no event shall the Association be

obligated to cover more than:

(1) an aggregate of Three Hundred Thousand Dollars

($300,000.00) in benefits with respect to any one

life under this subparagraph and subparagraphs a

and b of this paragraph except with respect to

health benefit plans under division (2) of

subparagraph a of this paragraph, in which case

the aggregate liability of the Association shall

not exceed Five Hundred Thousand Dollars

($500,000.00) with respect to any one individual,

or

(2) with respect to one owner of multiple non-group

policies of life insurance, whether the policy or

contract owner is an individual, firm,

corporation or other person, and whether the

persons insured are officers, managers, employees

or other persons, more than Five Million Dollars

($5,000,000.00) in benefits, regardless of the

number of policies and contracts held by the

owner,

Oklahoma Statutes - Title 36. Insurance Page 600

d. the limitations set forth in this subsection are

limitations on benefits for which the Association is

obligated before taking into account either its

subrogation and assignment rights or the extent to

which those benefits could be provided out of the

assets of the impaired or insolvent insurer

attributable to covered policies. The costs of the

obligations of the Association under the Oklahoma Life

and Health Insurance Guaranty Association Act may be

met by the use of assets attributable to covered

policies or reimbursed to the Association pursuant to

its subrogation and assignment rights,

e. for purposes of the Oklahoma Life and Health Insurance

Guaranty Association Act, benefits provided by a long-

term care rider to a life insurance policy or annuity

contract shall be considered the same type of benefits

as the base life insurance policy or annuity contract

to which it relates.

D. In performing its obligations to provide coverage under

Section 2028 of this title, the Association shall not be required to

guarantee, assume, reinsure, reissue or perform, or cause to be

guaranteed, assumed, reinsured, reissued or performed, the

contractual obligations of the insolvent or impaired insurer under a

covered policy or contract that do not materially affect the

economic values or economic benefits of the covered policy or

contract.
Okla. Stat. tit. 36, § 36-924.1 — OK Code / Title 36 / Section 36-924.1
Automobile or motorcycle accident prevention course for
Status: in_force

certain individuals - Reduction of premium charges.

A. Any schedule of rates or rating plan for automobile or

motorcycle liability and physical damage insurance submitted to or

filed with the Insurance Commissioner shall provide for an

appropriate reduction in premium charges for those insured persons

for a three-year period after successfully completing a motor

vehicle accident prevention course which shall include but not be

limited to an automobile or motorcycle accident prevention course as

approved by the insurance company of the policyholder. Provided,

there shall be no reduction in premiums for a course attended

pursuant to a court order in connection with a motor vehicle

violation or an alcohol- or drug-related offense.

B. All insurance companies writing automobile or motorcycle

liability and physical damage insurance in this state shall allow an

appropriate reduction in premium charges to all eligible persons

pursuant to this section.

C. Upon successfully completing the approved course, each

participant shall be issued by the sponsoring agency of the course,

Oklahoma Statutes - Title 36. Insurance Page 206

a certificate which shall be the basis of qualification for the

discount on insurance.

D. Each participant shall successfully complete an approved

course each three (3) years to continue to be eligible for the

discount on insurance.

E. An approved course pursuant to this section shall provide at

least six (6) hours of instruction.
Okla. Stat. tit. 36, § 36-1527 — OK Code / Title 36 / Section 36-1527
Mandatory Control Level Event
Status: in_force

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

events:

1. The filing of an RBC Report which indicates that the

insurer's Total Adjusted Capital is less than its Mandatory Control

Level RBC;

2. Notification by the 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 1528 of this title; or

3. If, pursuant to Section 1528 of this title, 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.

B. In the event of a Mandatory Control Level Event:

1. With respect to a life insurer or fraternal benefit society,

the Commissioner may take the actions necessary to place the insurer

under regulatory control under Article 18 or 19 of the Insurance

Code. In that event, the Mandatory Control Level Event is 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 which are set

forth in Article 18 or 19 of the Insurance Code. If the

Commissioner takes actions 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; and

2. With respect to a property and casualty insurer, the

Commissioner may take the actions necessary to place the insurer

under regulatory control under Article 18 or 19 of the Insurance

Oklahoma Statutes - Title 36. Insurance Page 420

Code, or, in case of an insurer which is writing no business and

which is running-off its existing business, may allow the insurer to

continue its run-off under the supervision of the Commissioner. In

either event, the Mandatory Control Level Event is 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 which are set forth

in Article 18 or 19 of the Insurance Code. If the Commissioner

takes actions 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, § 36-307.1 — OK Code / Title 36 / Section 36-307.1
Rules and regulations
Status: in_force

The Insurance Commissioner may adopt reasonable bulletins,

orders, rules and regulations for the implementation and

administration of the provisions of the Insurance Code and other

statutes for which the Commissioner has jurisdiction.
Okla. Stat. tit. 36, § 36-6930 — OK Code / Title 36 / Section 36-6930
Acquisition of control of health maintenance
Status: in_force

organization.

No person other than the issuer may make a tender for or a

request or invitation for tenders of, or enter into an agreement to

exchange securities for or acquire in the open market or otherwise,

any voting security of a health maintenance organization or enter

into any other agreement if, after the consummation thereof, that

person would, directly or indirectly, or by conversion or by

exercise of any right to acquire be in control of the health

maintenance organization. No person may enter into an agreement to

merge or consolidate with or otherwise to acquire control of a

health maintenance organization, unless, at the time any offer,

request or invitation is made or any agreement is entered into, or

prior to the acquisition of the securities if no offer or agreement

is involved, the person complied with the provisions of Article 16A

of the Insurance Code.
Okla. Stat. tit. 36, § 36-4007 — OK Code / Title 36 / Section 36-4007
Dividends
Status: in_force

There shall be a provision in participating policies that,

beginning not later than the end of the third policy year, the

insurer shall annually ascertain and apportion the divisible

surplus, if any, that will accrue on the policy anniversary or other

dividend date specified in the policy provided the policy is in

force and all premiums to that date are paid. Except as hereinafter

Oklahoma Statutes - Title 36. Insurance Page 826

provided, any dividend so apportioned shall at the option of the

party entitled to elect such option be either (a) payable in cash or

(b) applied to any one of such other dividend options as may be

provided by the policy. If any such other dividend options are

provided, the policy shall further state which option shall be

automatically effective if such party shall not have elected some

other option. If the policy specifies a period within which such

other dividend option may be elected, such period shall be not less

than thirty (30) days following the date on which such dividend is

due and payable. The annually apportioned dividend shall be deemed

to be payable in cash within the meaning of (a) above even though

the policy provides that payment of such dividend is to be deferred

for a specified period, provided such period does not exceed six (6)

years from the date of apportionment and that interest will be added

to such dividend at a specified rate. If a participating policy

provides that the benefit under any paid-up nonforfeiture provision

is to be participating, it may provide that any divisible surplus

apportioned while the insurance is in force under such nonforfeiture

provision shall be applied in the manner set forth in the policy.
Okla. Stat. tit. 36, § 36-1106 — OK Code / Title 36 / Section 36-1106
Surplus lines - Brokers
Status: in_force

If insurance required to protect the interest of the insured for

the amount of insurance, coverage terms and solvency requirements of

the insured cannot be procured from admitted insurers after inquiry

in the market available to the insurance producer, then insurance

may be procured from surplus lines insurers subject to the following

conditions:

1. The surplus lines insurer shall meet the requirements of the

Unauthorized Insurers and Surplus Lines Insurance Act and the

following conditions:

a. the insurer has capital and surplus or its equivalent

under the laws of its domiciliary jurisdiction which

equals the greater of:

(1) the minimum capital and surplus requirements

under the laws of this state for nonadmitted

insurers, or

(2) Fifteen Million Dollars ($15,000,000.00),

b. the requirements of subparagraph a of this paragraph

may be satisfied by an insurer's possessing less than

the minimum capital and surplus upon an affirmative

finding of acceptability by the Insurance

Commissioner. The finding shall be based upon such

factors as quality of management, capital and surplus

of any parent company, company underwriting profit and

investment income trends, market availability and

company record and reputation within the industry. In

no event shall the Insurance Commissioner make an

affirmative finding of acceptability when the

nonadmitted insurer's capital and surplus is less than

Four Million Five Hundred Thousand Dollars

($4,500,000.00), and

c. the insurer, if an alien insurer, is listed on the

National Association of Insurance Commissioners

Nonadmitted Insurers Quarterly Listing; and

Oklahoma Statutes - Title 36. Insurance Page 252

2. The insurance shall be procured through a licensed surplus

lines licensee or broker licensed in the insurer's home state. An

Oklahoma surplus lines license is required only where Oklahoma is

the home state of the insured.

For the purposes of carrying out the provisions of the

Nonadmitted and Reinsurance Reform Act of 2010, the Insurance

Commissioner is authorized to utilize the national insurance

producer database of the National Association of Insurance

Commissioners, or any other equivalent uniform national database,

for the licensure of an individual or entity as a surplus lines

licensee or broker and for renewal of such license.
Okla. Stat. tit. 36, § 36-4426 — OK Code / Title 36 / Section 36-4426
Requirements of policies
Status: in_force

A. No long-term care insurance policy shall:

1. Be canceled, nonrenewed, or otherwise terminated on the

grounds of age or the deterioration of the mental or physical health

of the insured individual or certificate holder;

2. Contain a provision establishing a new waiting period in the

event existing coverage is converted to or replaced by a new or

other form within the same company, except with respect to an

Oklahoma Statutes - Title 36. Insurance Page 969

increase in benefits voluntarily selected by the insured individual

or group policyholder; or

3. Provide coverage for skilled nursing care only or provide

significantly more coverage for skilled care in a facility than

coverage for lower levels of care.

B. 1. No long-term care insurance policy or certificate shall

use a definition of "preexisting condition" which is more

restrictive than the following: Preexisting condition means a

condition for which medical advice or treatment was recommended by,

or received from a provider of health care services, within six (6)

months preceding the effective date of coverage of an insured

person.

2. No long-term care insurance policy or certificate shall

exclude coverage for a loss or confinement which is the result of a

preexisting condition unless such loss or confinement begins within

six (6) months following the effective date of coverage of an

insured person.

3. The definition of "preexisting condition" does not prohibit

an insurer:

a. from using an application form designed to elicit the

complete health history of an applicant, and

b. from underwriting, on the basis of the answers on that

application, in accordance with that insurer's

established underwriting standards.

4. Unless otherwise provided in the policy or certificate, a

preexisting condition, regardless of whether it is disclosed on the

application, need not be covered until the waiting period described

in paragraph 2 of subsection B of this section expires. No long-

term care insurance policy or certificate may exclude or use waivers

or riders of any kind to exclude, limit or reduce coverage or

benefits for specifically named or described preexisting diseases or

physical conditions beyond the waiting period described in paragraph

2 of subsection B of this section.

C. Prior hospitalization/institutionalization:

1. No long-term care insurance policy may be delivered or

issued in this state if such policy:

a. conditions eligibility for any benefits on a prior

hospitalization requirement,

b. conditions eligibility for benefits provided in an

institutional care setting on the receipt of a higher

level of institutional care, or

c. conditions eligibility for any benefits other than

waiver of premium, post-confinement, post-acute care

or recuperative benefits on a prior

institutionalization requirement.

2. a. A long-term care insurance policy containing post-

confinement, post-acute care or recuperative benefits

Oklahoma Statutes - Title 36. Insurance Page 970

shall clearly label in a separate paragraph of the

policy or certificate entitled "Limitations or

Conditions on Eligibility for Benefits" such

limitations or conditions, including any required

number of days of confinement.

b. A long-term care insurance policy or rider which

conditions eligibility of noninstitutional benefits on

the prior receipt of institutional care shall not

require a prior institutional stay of more than thirty

(30) days.

D. No law, rule or regulation shall establish loss ratio

standards for long-term care insurance policies unless a specific

reference to long-term care insurance policies is contained in such

law, rule or regulation.

E. Long-term care insurance applicants shall have the right to

return the policy or certificate within thirty (30) days after its

delivery and to have the premium refunded if, after examination of

the policy or certificate, the applicant is not satisfied with the

policy, for any reason. Long-term care insurance policies and

certificates shall have a notice prominently printed on the first

page of the policy or attached thereto, stating in substance, that

the applicant shall have the right to return the policy or

certificate within thirty (30) days after its delivery and to have

the premium refunded if, after examination of the policy, or

certificate, the applicant is not satisfied with the policy, for any

reason. If an application for a qualified long-term care contract

is denied, the issuer shall refund to the applicant any premium and

any other fees submitted by the applicant within thirty (30) days of

the date of the denial. If the insurer does not return any premiums

or moneys paid therefor within thirty (30) days from the date of

cancellation, the insurer shall pay interest on the proceeds which

shall be the same rate of interest as the average United States

Treasury Bill rate of the preceding calendar year, as certified to

the Insurance Commissioner by the State Treasurer on the first

regular business day in January of each year, plus two (2)

percentage points, which shall accrue from the date of cancellation

until the premiums or moneys are returned. In such event, the long-

term care policy shall be deemed to have been canceled on the date

the policy was placed in the United States mail in a properly

addressed, postpaid envelope, or, if not so posted, on the date of

delivery of such policy or annuity to the insurer.

F. An outline of coverage shall be delivered to a prospective

applicant for long-term care insurance at the time of initial

solicitation through means which prominently direct the attention of

the recipient to the document and its purpose. The Insurance

Commissioner shall prescribe a standard format, including style,

arrangement and overall appearance, and the content of an outline of

Oklahoma Statutes - Title 36. Insurance Page 971

coverage. In the case of agent solicitations, an agent must deliver

the outline of coverage prior to the presentation of an application

or enrollment form. In the case of direct response solicitations,

the outline of coverage must be presented in conjunction with any

application or enrollment form. Such outline of coverage shall

include, but not be limited to:

1. A description of the principal benefits and coverage

provided in the policy;

2. A statement of the principal exclusions, reductions and

limitations contained in the policy;

3. A statement of the terms under which the policy or

certificate, or both, may be continued in force or discontinued,

including any reservation in the policy of a right to change

premiums. Continuation or conversion provisions of group coverage

shall be specifically described;

4. A statement that the outline of coverage is a summary only,

not a contract of insurance, and that the policy or group master

policy contains governing contractual provisions;

5. A description of the terms under which the policy or

certificate may be returned and premium refunded;

6. A brief description of the relationship of cost of care and

benefits; and

7. If the policy or certificate is intended to be a qualified

long-term care insurance contract, a statement that discloses to the

policyholder or certificate holder that the policy is intended to be

a qualified long-term care insurance contract.

G. The issuer of a qualified long-term care insurance contract

shall deliver to the applicant, policyholder, or certificate holder

the contract or certificate no later than thirty (30) days after the

date of approval.

H. At the time of policy delivery, a policy summary shall be

delivered for an individual life insurance policy which provides

long-term care benefits within the policy or by rider. In the case

of direct response solicitations, the insurer shall deliver the

policy summary upon the applicant's request, but regardless of

request shall make such delivery no later than at the time of policy

delivery. In addition to complying with all applicable

requirements, the summary shall also include:

1. An explanation of how the long-term care benefit interacts

with other components of the policy, including deductions from death

benefits;

2. An illustration of the amount of benefits, the length of

benefit, and the guaranteed lifetime benefits if any, for each

covered person;

3. Any exclusions, reductions and limitations on benefits of

long-term care; and

Oklahoma Statutes - Title 36. Insurance Page 972

4. If applicable to the policy type, the summary shall also

include:

a. a disclosure of the effects of exercising other rights

under the policy,

b. a disclosure of guarantees related to long-term care

costs of insurance charges, and

c. current and projected maximum lifetime benefit.

I. Any time a long-term care benefit, funded through a life

insurance vehicle by the acceleration of the death benefit, is in

benefit payment status, a monthly report shall be provided to the

policyholder. Such report shall include:

1. Any long-term care benefits paid out during the month;

2. An explanation of any changes in the policy, e.g. death

benefits or cash values, due to long-term care benefits being paid

out; and

3. The amount of long-term care benefits existing or remaining.

J. If a claim under a qualified long-term care insurance

contract is denied, the issuer shall, within sixty (60) days of the

date of a written request by the policyholder or certificate holder,

or a representative thereof:

1. Provide a written explanation of the reasons for the denial;

and

2. Make available all information directly related to such

denial.

K. No policy shall be advertised, marketed or offered as long-

term care insurance unless it complies with the provisions of the

Long-Term Care Insurance Act.

L. Policies or contracts issued by life care communities which

are not licensed insurers in this state shall contain the following

statement in conspicuous bold-face type on the front of the policy

or contract: "The financial condition of the entity issuing this

contract is not subject to review by or the jurisdiction of the

Oklahoma Insurance Commissioner. This contract is not subject to

the protection of any guaranty association."
Okla. Stat. tit. 36, § 36-6413 — OK Code / Title 36 / Section 36-6413
Definitions
Status: in_force

As used in the Market Assistance Association Act:

1. "Association" means the Market Assistance Association

established pursuant to this act;

2. "Board" means the Board of Directors of the Market

Assistance Association;

3. "Commissioner" means the Insurance Commissioner;

4. "Insurer" means any entity licensed to issue homeowners' or

homeowners' liability insurance; and

5. "Member" means all insurers licensed in this state for both

property and casualty lines of business. These entities are

required to be a participant in the Association as a condition of

doing business in Oklahoma.

Oklahoma Statutes - Title 36. Insurance Page 1186
Okla. Stat. tit. 36, § 36-660.12 — OK Code / Title 36 / Section 36-660.12
Initial shares — Majority of voting shares
Status: in_force

A. As used in this section:

1. "Intermediate holding company" means a holding company that:

a. is a subsidiary of a mutual holding company formed to

reorganize a mutual insurance company, and

b. directly or through a subsidiary intermediate holding

company, owns the resulting company; and

2. "Majority of the voting shares of the capital stock" means

shares of the capital stock of a company that carry the right to

cast a majority of the votes entitled to be cast by all of the

outstanding shares of the capital stock of the company on all

matters submitted to a vote of the shareholders of the company.

B. All of the initial shares of the capital stock of the

resulting company shall be issued to the mutual holding company.

C. The mutual holding company shall at all times own a majority

of the voting shares of the capital stock of the resulting company

or of an intermediate holding company established to hold the voting

shares of the resulting company. The requirements of this

subsection may be satisfied by indirect ownership through one or

more intermediate holding companies in a corporate structure

approved by the Oklahoma Insurance Commissioner.

D. The mutual holding company or intermediate holding company

may not convey, transfer, assign, pledge, subject to a security

Oklahoma Statutes - Title 36. Insurance Page 176

interest or lien, encumber, or otherwise hypothecate or alienate the

majority of the voting shares of the capital stock that is required

to be owned under subsection C of this section.

E. A violation of subsection D of this section is void in

inverse chronological order from the date of the conveyance or

activity as to the shares necessary to constitute a majority of the

voting shares of the capital stock.
Okla. Stat. tit. 36, § 36-4030 — OK Code / Title 36 / Section 36-4030
Manner of paying premiums for single premium life
Status: in_force

policies and annuity contracts.

A. Except as may be otherwise approved by the Insurance

Commissioner, no single premium policy of life insurance or single

premium annuity contract shall be delivered or issued for delivery

in Oklahoma for a consideration other than cash, cashier's check,

check, bank draft, money order, premium note or electronic payment.

This act shall not apply to the transfer of securities to an insurer

pursuant to the insuring of a pension or profit sharing plan

qualified under the Federal Internal Revenue Code.

Oklahoma Statutes - Title 36. Insurance Page 851

B. This act shall not be held to repeal or alter any law now in

effect, but shall be construed as cumulative with and supplemental

to other laws and acts now in effect or enacted hereafter.
Okla. Stat. tit. 36, § 36-1932 — OK Code / Title 36 / Section 36-1932
Levy of assessment
Status: in_force

A. Upon the basis of the report provided for in section 1831 of

this article, including any amendments thereof, the court, ex parte,

may levy one or more assessments against all members of such insurer

who, as shown by the records of the insurer, were members (if a

mutual insurer) or subscribers (if a reciprocal insurer) at any time

within one (1) year prior to the date of issuance of the order to

show cause under section 1803 of this article.

B. Such assessment or assessments shall cover the excess of the

probable liabilities over the reasonable value of the assets,

together with the estimated cost of collection and percentage of

uncollectibility thereof. The total of all assessments against any

member or subscriber with respect to any policy, whether levied

Oklahoma Statutes - Title 36. Insurance Page 563

pursuant to this article or pursuant to any other provision of this

code, shall be for no greater amount than that specified in the

policy or policies of the member or subscriber and as limited under

this code, except that if the court finds that the policy was issued

at a rate or premium below the minimum rate lawfully permitted for

the risk insured, the court may determine the upper limit of such

assessment upon the basis of such minimum rate.

C. No assessment shall be levied against any member or

subscriber with respect to any nonassessable policy issued in

accordance with this code.
Okla. Stat. tit. 36, § 36-2608.2 — OK Code / Title 36 / Section 36-2608.2
Officers
Status: in_force

A. Every corporation organized in accordance with the

provisions of Article 26 of the Insurance Code shall have such

officers with such titles and duties as shall be stated in the

bylaws or in a resolution of the board of directors which is not

inconsistent with the bylaws.

B. The corporation may secure the fidelity of any or all of its

officers or agents by bond or otherwise.

C. A failure to elect officers shall not dissolve or otherwise

affect the corporation.
Okla. Stat. tit. 36, § 36-2421 — OK Code / Title 36 / Section 36-2421
Reorganization and conversion complete when; rights of
Status: in_force

reorganized corporations.

When such mutual benefit association shall have complied with

the provisions of this article and shall have received from the

Insurance Commissioner a certificate of authority to transact

business in this state as a legal reserve life insurance company,

its reorganization and conversion into such legal reserve company

shall be complete. Such reorganized and converted corporation shall

succeed to and become invested with all and singular the rights,

privileges, franchises, and all property, real, personal or mixed,

all debts due on any account and all other things in action

theretofore belonging to such mutual benefit association, and all

property, rights, privileges, franchises and all and every other

interest including title to any real estate by deed or otherwise

vested in such former mutual benefit association shall vest in such

reorganized and converted corporation.
Okla. Stat. tit. 36, § 36-6802 — OK Code / Title 36 / Section 36-6802
See the following versions:
Status: in_force

OS 36-6802v1 (SB 673, Laws 2021, c. 293, § 1).

OS 36-6802v2 (HB 2120, Laws 2021, c. 549, § 1).
Okla. Stat. tit. 36, § 36-1241.1 — OK Code / Title 36 / Section 36-1241.1
Property and casualty policies – Provision relating to
Status: in_force

process for premium refund for cancellation prior to end of policy

period.

Each property and casualty insurance policy approved by the

Insurance Commissioner shall contain a provision describing the

process for premium refund if the insured cancels the policy before

the end of the policy period as defined in the policy. The

provision is to be included in the policy, or by rider or

endorsement attached to the policy. The policy does not have to

contain the exact wording of this section or any other exact

wording. Language which is substantially similar to this section

shall be considered to be in compliance with this section.
Okla. Stat. tit. 36, § 36-2691.1 — OK Code / Title 36 / Section 36-2691.1
Corporations authorized
Status: in_force

Nonprofit charitable and benevolent corporations may hereafter

be organized under the laws of the State of Oklahoma for the purpose

of establishing, maintaining and operating a nonprofit chiropractic

service plan by complying with the provisions of this article, and

shall be exempt from all other provisions of the insurance laws and

the general corporation laws of this state, except where such other

laws are specifically made applicable by the provisions of this

article.
Okla. Stat. tit. 36, § 36-6940 — OK Code / Title 36 / Section 36-6940
Company action level event - Definition - Submission of
Status: in_force

RBC plan - Insurance Commissioner's determination - Notice and

hearing.

A. “Company Action Level Event” means any of the following

events:

1. The filing of an RBC report by a health maintenance

organization that indicates that the health maintenance

organization’s total adjusted capital is greater than or equal to

Oklahoma Statutes - Title 36. Insurance Page 1417

its Regulatory Action Level RBC, but less than its Company Action

Level RBC;

2. Notification by the Insurance Commissioner to the health

maintenance organization of an adjusted RBC report that indicates an

event in paragraph 1 of this subsection, provided the health

maintenance organization does not challenge the adjusted RBC report

under Section 6944 of this title;

3. If, pursuant to the provisions of Section 6944 of this

title, a health maintenance organization challenges an adjusted RBC

report that indicates the event in paragraph 1 of this subsection,

the notification by the Commissioner to the health maintenance

organization that the Commissioner has, after a hearing, rejected

the health maintenance organization’s challenge; or

4. If a health maintenance organization has total adjusted

capital which is greater than or equal to its Company Action Level

RBC but less than the product of its Authorized Control Level RBC

and 3.0 and triggers the trend test determined in accordance with

the trend test calculation included in the Health RBC instructions.

B. In the event of a Company Action Level Event, the health

maintenance organization shall prepare and submit to the

Commissioner an RBC plan that shall:

1. Identify the conditions that contribute to the Company

Action Level Event;

2. Contain proposals of corrective actions that the health

maintenance organization intends to take and that would be expected

to result in the elimination of the Company Action Level Event;

3. Provide projections of the health maintenance organization’s

financial results in the current year and at least the two (2)

succeeding years, both in the absence of proposed corrective actions

and giving effect to the proposed corrective actions, including

projections of statutory balance sheets, operating income, net

income, capital and surplus, and RBC levels. The projections for

both new and renewal business might include separate projections for

each major line of business and separately identify each significant

income, expense and benefit component;

4. Identify the key assumptions affecting the health

maintenance organization’s projections and the sensitivity of the

projections to the assumptions; and

5. Identify the quality of, and problems associated with, the

health maintenance organization’s business including, but not

limited to, its assets, anticipated business growth and associated

surplus strain, extraordinary exposure to risk, mix of business and

use of reinsurance, if any, in each case.

C. The RBC plan shall be submitted:

1. Within forty-five (45) days of the Company Action Level

Event; or

Oklahoma Statutes - Title 36. Insurance Page 1418

2. If the health maintenance organization challenges an

adjusted RBC report pursuant to the provisions of Section 6944 of

this title, within forty-five (45) days after notification to the

health maintenance organization that the Commissioner has, after a

hearing, rejected the health maintenance organization’s challenge.

D. Within sixty (60) days after the submission by a health

maintenance organization of an RBC plan to the Commissioner, the

Commissioner shall notify the health maintenance organization

whether the RBC plan will be implemented or whether, in the judgment

of the Commissioner, the RBC plan is unsatisfactory. If the

Commissioner determines that the RBC plan is unsatisfactory, the

notification to the health maintenance organization shall state the

reasons for the determination, and may list proposed revisions that

will, in the judgment of the Commissioner, render the RBC plan

satisfactory. Upon notification from the Commissioner, the health

maintenance organization shall prepare a revised RBC plan, that may

incorporate by reference any revisions proposed by the Commissioner,

and shall submit the revised RBC plan to the Commissioner:

1. Within forty-five (45) days after the notification from the

Commissioner; or

2. If the health maintenance organization challenges the

notification from the Commissioner pursuant to the provisions of

Section 6944 of this title, within forty-five (45) days after a

notification to the health maintenance organization that the

Commissioner has, after a hearing, rejected the health maintenance

organization’s challenge.

E. In the event of a notification by the Commissioner to a

health maintenance organization that the health maintenance

organization’s RBC plan or revised RBC plan is unsatisfactory, the

Commissioner may, at the Commissioner’s discretion and subject to

the health maintenance organization’s right to a hearing pursuant to

the provisions of Section 6944 of this title, specify in the

notification that the notification constitutes a Regulatory Action

Level Event.

F. Every domestic health maintenance organization that files an

RBC plan or revised RBC plan with the Commissioner shall file a copy

of the RBC plan or revised RBC plan with the Insurance Commissioner

in any state in which the health maintenance organization is

authorized to do business if:

1. The state has an RBC provision substantially similar to

subsection A of Section 6945 of this title; and

2. The Insurance Commissioner of that state has notified the

health maintenance organization of its request for the filing in

writing, in which case the health maintenance organization shall

file a copy of the RBC plan or revised RBC plan in that state no

later than the later of:

Oklahoma Statutes - Title 36. Insurance Page 1419

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

a copy of its RBC plan or revised RBC plan with the

state, or

b. the date on which the RBC plan or revised RBC plan is

filed under subsections C and D of this section.
Okla. Stat. tit. 36, § 36-902.2 — OK Code / Title 36 / Section 36-902.2
Factors for review of filing - Weight - Prohibited
Status: in_force

expenses.

A. The Insurance Commissioner when reviewing a filing shall

give due consideration to the following when, in its discretion, it

determines that such factor or factors are applicable:

1. Past loss experience within and outside this state;

2. Prospective loss experience within and outside this state;

3. Physical hazards insured;

4. Safety and loss prevention programs;

5. Underwriting practices and judgment;

6. Catastrophe hazards;

7. Reasonable underwriting profit and contingencies;

8. Dividends, savings or unabsorbed premium deposits allowed or

returned to policyholders;

9. Past expenses within and outside this state;

Oklahoma Statutes - Title 36. Insurance Page 202

10. Prospective expenses within and outside this state;

11. Existence of classification rates for a given risk;

12. Investment income within and outside this state;

13. Rarity or peculiarity of the risks within and outside this

state;

14. In the case of workers' compensation rates, differences in

the hazard levels of different geographical regions of the state;

15. All other relevant factors within and outside this state;

and

16. Whether existing rates continue to meet the standards of

this article.

B. The Commissioner shall determine the weight to be accorded

each of the factors contained in subsection A of this section.

C. Past or prospective expenses within or outside this state

pursuant to paragraphs 9 and 10 of subsection A of this section

shall not include prohibited expenses for advertising or prohibited

expenses for membership in organizations.

For the purpose of this subsection:

1. “Prohibited expenses for advertising" means the cost of

advertising in any media the purpose of which is to influence

legislation or to advocate support for or opposition to a candidate

for public office;

2. “Prohibited expenses for advertising" shall not mean:

a. any communication to customers and the public of

information regarding an insurer's insurance products,

b. any communication to customers and the public of

safety, safety education or loss prevention

information,

c. periodic publications or reports to stockholders or

members required by the certificate or bylaws of the

insurer,

d. any communication with customers and the public which

provides instruction in the use of the insurer's

products and services, or

e. any communication with customers and the public for

giving notice or information required by law or

otherwise necessary;

3. “Prohibited expenses for membership" means the cost of

membership in any organization which conducts substantial efforts,

including but not limited to prohibited expenses for advertising,

the purpose of which is to influence legislation or to advocate

support for or opposition to a candidate for public office; and

4. “Prohibited expenses for membership" shall not mean the cost

of membership in advisory organizations or other organizations the

primary purpose of which is to provide statistical information on

losses.

Oklahoma Statutes - Title 36. Insurance Page 203
Okla. Stat. tit. 36, § 36-2017 — OK Code / Title 36 / Section 36-2017
Exemption from taxes and fees
Status: in_force

The Association shall be exempt from payment of all fees and all

taxes levied by this state or any of its subdivisions.
Okla. Stat. tit. 36, § 36-4036 — OK Code / Title 36 / Section 36-4036
Statement by applicant regarding notification of
Status: in_force

replacement to replaced insurer.

The statement referred to in the Life Insurance and Annuity

Policyholders Protection Act shall be delivered to the applicant for

a replacement life insurance policy or a replacement annuity policy

along with the notice provided for in Section 5 of the Life

Insurance and Annuity Policyholders Protection Act. The legal name

and address of the replacing insurer may be printed on the

statement. Said statement shall be in substance as follows:

STATEMENT BY APPLICANT REGARDING NOTIFICATION

OF REPLACEMENT TO THE REPLACED INSURER

I have read the "NOTICE TO APPLICANTS REGARDING REPLACEMENT OF

LIFE INSURANCE OR AN ANNUITY" which was furnished to me by the agent

taking the application for this policy.

(Applicant: Please sign ONE of the following statements.)

1. Please notify my present insurer(s) regarding this

transaction.

_______________________

_______________________

_

Date Signature of Applicant

2. Please do not notify my present insurer(s) regarding this

transaction.

_______________________ ________________________

Date Signature of

Applicant

The signature of the applicant shall be that of the insured

unless someone other than the insured is the owner of the policy. If

Oklahoma Statutes - Title 36. Insurance Page 862

someone other than the insured is the owner of the policy, the owner

must sign. If the insured is under eighteen (18) years of age, the

parent is deemed to be the owner of the policy.

Certification by the agent:

I hereby certify that nothing was said or done during the sales

presentation to influence the decision of the applicant regarding

this statement.

________________________ _______________________

Date Signature of Agent

__________________________

Insurance Agency or Agent

License Number
Okla. Stat. tit. 36, § 36-2677 — OK Code / Title 36 / Section 36-2677
Inducements prohibited
Status: in_force

No dental service corporation, and no director, trustee,

officer, agent, employee, solicitor or other representative thereof

shall pay, allow or give, or offer to pay, allow or give, directly

or indirectly, as an inducement of membership, any rebate of

premiums or dues, payable on the policy or contract, or any special

favor or advantage in the dividends or other benefits to accrue

thereon, or any paid employment contract for services of any kind or

any value, consideration or inducement whatever; nor give, sell or

purchase, or offer to give, sell or purchase, as an inducement of

membership or in connection therewith, any stock, dividends or other

securities of any insurance company or other corporation,

association or partnership, or any dividends or profits to accrue

thereon or anything of value whatever.
Okla. Stat. tit. 36, § 36-2024 — OK Code / Title 36 / Section 36-2024
Definitions
Status: in_force

As used in the Oklahoma Life and Health Insurance Guaranty

Association Act:

1. "Account" means one of the three accounts created under

Section 2023 of this title;

2. "Association" means the Oklahoma Life and Health Insurance

Guaranty Association created in Section 2023 of this title;

3. "Commissioner" means the Oklahoma Insurance Commissioner;

4. "Contractual obligation" means an obligation under a policy

or contract or certificate under a group policy or contract, or

portion thereof for which coverage is provided under Section 2025 of

this title;

5. "Covered contract" or "covered policy" means a policy or

contract or portion of a policy or contract for which coverage is

provided under Section 2025 of this title;

6. "Extra-contractual claims" includes, but is not limited to,

claims relating to bad faith in the payment of claims, punitive or

exemplary damages or attorneys fees and costs;

7. "Health benefit plan" means any hospital or medical expense

policy or certificate or health maintenance organization subscriber

contract or any other similar health contract. Health benefit plan

does not include:

a. accident-only insurance,

b. credit insurance,

c. dental-only insurance,

d. vision-only insurance,

e. Medicare supplemental insurance,

f. benefits for long-term care, home health care,

community-based care, or any combination thereof,

g. disability income insurance,

h. coverage for on-site medical clinics, or

i. specified disease, hospital confinement indemnity or

limited health insurance if the types of coverage do

not provide coordination of benefits and are provided

under separate policies or certificates;

8. "Impaired insurer" means a member insurer which, after the

effective date of this act, is not an insolvent insurer and is

placed under an order of rehabilitation or conservation by a court

of competent jurisdiction;

9. "Insolvent insurer" means a member insurer which, after the

effective date of this act, is placed under an order of liquidation

by a court of competent jurisdiction with a finding of insolvency;

10. "Member insurer" means any nonprofit hospital service and

medical indemnity corporation and any insurer or health maintenance

organization licensed or that holds a certificate of authority to

transact in this state any kind of insurance or health maintenance

organization business for which coverage is provided under Section

Oklahoma Statutes - Title 36. Insurance Page 592

2025 of this title, and includes any insurer or health maintenance

organization whose license or certificate of authority in this state

may have been suspended, revoked, not renewed or voluntarily

withdrawn, but does not include:

a. a fraternal benefit society,

b. a mandatory state-pooling plan,

c. a mutual assessment company or other person that

operates on an assessment basis,

d. an insurance exchange,

e. an organization that has a certificate or license

limited to the issuance of charitable gift annuities

under Sections 4071 through 4082 of this title, or

f. any entity similar to any of the above;

11. "Moody's Corporate Bond Yield Average" means the Monthly

Average Corporates as published by Moody's Investors Service, Inc.,

or any successor thereto;

12. "Owner", "policyholder", "policy owner" or "contract owner"

means the person who is identified as the legal owner of a policy or

contract under the terms of the policy or contract or who is

otherwise vested with legal title to the policy or contract through

a valid assignment completed in accordance with the terms of the

policy or contract and properly recorded as the owner on the books

of the member insurer. Owner, policyholder, policy owner or

contract owner does not include persons with a mere beneficial

interest in a policy or contract;

13. "Person" means an individual, corporation, limited

liability company, partnership, association, governmental body or

entity, or voluntary organization;

14. "Premiums" means amounts or considerations by whatever name

called, received on covered policies or contracts less returned

premiums, considerations and deposits and less dividends and

experience credits. "Premiums" does not include amounts or

considerations received for policies or contracts or for the

portions of any policies or contracts for which coverage is not

provided under subsection B of Section 2025 of this title except

that assessable premium shall not be reduced on account of

subparagraph c of paragraph 2 of subsection B of Section 2025 of

this title relating to interest limitations and paragraph 2 of

subsection C of Section 2025 of this title relating to limitations

with respect to one individual, one participant and one policy or

contract owner. Premiums does not include:

a. premiums on an unallocated annuity contract, or

b. premiums in excess of Five Million Dollars

($5,000,000.00) on multiple non-group policies of life

insurance owned by one owner, whether the policy or

contract owner is an individual, firm, corporation or

other person, and whether the persons insured are

Oklahoma Statutes - Title 36. Insurance Page 593

officers, managers, employees or other persons,

regardless of the number of policies or contracts held

by the owner;

15. "Principal place of business" of a person other than a

natural person means the single state in which the natural persons

who establish policy for the direction, control and coordination of

the operations of the entity as a whole primarily exercise that

function, determined by the Association in its reasonable judgment

by considering the following factors:

a. the state in which the primary executive and

administrative headquarters of the entity are located,

b. the state in which the principal office of the chief

executive officer of the entity is located,

c. the state in which the board of directors or similar

governing person or persons of the entity conducts the

majority of its meetings,

d. the state in which the executive or management

committee of the board of directors or similar

governing person or persons of the entity conducts the

majority of its meetings,

e. the state from which the management of the overall

operations of the entity is directed, and

f. in the case of a benefit plan sponsored by affiliated

companies comprising a consolidated corporation, the

state in which the holding company or controlling

affiliate has its principal place of business as

determined using the factors listed in subparagraphs a

through e of this paragraph;

16. "Receivership court" means the court in the insolvent or

impaired state of the insurer having jurisdiction over the

conservation, rehabilitation or liquidation of the member insurer;

17. "Resident" means a person to whom a contractual obligation

is owed and who resides in this state on the date of entry of a

court order that determines a member insurer to be an impaired

insurer or a court order that determines a member insurer to be an

insolvent insurer. A person may be a resident of only one state,

which in the case of a person other than a natural person shall be

its principal place of business. Citizens of the United States that

are either residents of foreign countries or residents of the United

States possessions, territories or protectorates that do not have an

association similar to the Association created by the Oklahoma Life

and Health Insurance Guaranty Association Act, shall be deemed

residents of the state of domicile of the insurer that issued the

policy or contract;

18. "State" means a state of the United States, the District of

Columbia, Puerto Rico, or a United States possession, territory or

protectorate;

Oklahoma Statutes - Title 36. Insurance Page 594

19. "Structured settlement annuity" means an annuity purchased

in order to fund periodic payments for a plaintiff or other claimant

in payment for or with respect to personal injury suffered by a

plaintiff or other claimant;

20. "Supplemental contract" means a written agreement entered

into for the distribution of proceeds under a life, health or

annuity policy or contract; and

21. "Unallocated annuity contract" means an annuity contract or

group annuity certificate which is not issued to and owned by an

individual, except to the extent of any annuity benefits guaranteed

to an individual by an insurer under the contract or certificate.
Okla. Stat. tit. 36, § 36-3617 — OK Code / Title 36 / Section 36-3617
Policy restrictions voided
Status: in_force

No policy delivered or issued for delivery in Oklahoma and

covering a subject of insurance resident, located, or to be

performed in Oklahoma, shall contain any condition, stipulation or

agreement (1) requiring such policy to be construed according to the

laws of any other state or country, except as necessary to meet the

requirements of the motor vehicle financial responsibility laws or

compulsory disability benefit laws of such other state or country,

or (2) preventing the bringing of an action against any such insurer

for more than six (6) months after the cause of action accrues, or

(3) limiting the time within which an action may be brought to a

period of less than two (2) years from the time the cause of action

accrues in connection with all insurances other than property and

marine and transportation insurances; in property and marine and

Oklahoma Statutes - Title 36. Insurance Page 791

transportation policies such time shall not be limited to less than

one (1) year from the date of occurrence of the event resulting in

the loss. Any such condition, stipulation or agreement shall be

void, but such voidance shall not affect the validity of the other

provisions of the policy.
Okla. Stat. tit. 36, § 36-3001 — OK Code / Title 36 / Section 36-3001
Underwriters; forms of insurance authorized, articles of
Status: in_force

agreements.

"Underwriters" Defined. Individuals, partnerships, or

associations of individuals, hereby designated "underwriters," are

authorized to make any insurance as hereinafter provided, except

life insurance or title insurance, on the Lloyd's plan, by executing

articles of agreement expressing their purpose so to do, and

complying with the requirements set forth in this article.
Okla. Stat. tit. 36, § 36-311.4 — OK Code / Title 36 / Section 36-311.4
Annual statements reporting market conduct data of
Status: in_force

insurers - Adoption of rules - Filing fee - Use of documents.

A. Insurers authorized to do business under the provisions of

the Oklahoma Insurance Code shall annually file with the Insurance

Commissioner market conduct annual statements reporting market

conduct data of insurers on the thirty-first day of December of the

previous year. The statements shall report on the lines of

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

National Association of Insurance Commissioners (NAIC), and as

supplemented for additional information required by the Insurance

Commissioner by rule. The statements shall be prepared in

accordance with NAIC instructions including any supplemental filings

described in the NAIC instructions. If no forms or instructions are

Oklahoma Statutes - Title 36. Insurance Page 76

available from the National Association of Insurance Commissioners,

the statements shall be in the form and pursuant to instructions and

deadlines as provided by the Insurance Commissioner. Insurers not

authorized by the Insurance Commissioner to provide the lines of

insurance approved by the National Association or the Insurance

Commissioner shall not be required to file market conduct annual

statements. For good cause shown, the Insurance Commissioner may

extend the time within which market conduct annual statements may be

filed. The Insurance Commissioner may provide copies of market

conduct annual statements, amendments, and addendums to such

statements and market conduct data taken from such statements to the

National Association of Insurance Commissioners only if, prior to

sharing of the market conduct annual statements, amendments,

addendums to such statements or market conduct data taken from such

statements, the National Association of Insurance Commissioners

enters into a written agreement with the Insurance Commissioner to

maintain the confidentiality of the shared information.

B. The Insurance Commissioner may adopt rules implementing this

section including rules that:

1. Add lines of insurance to be reported in market conduct

annual statements; and

2. Require the filing of market conduct annual statements and

any amendments and addendums to such statements with the National

Association of Insurance Commissioners, and the payment of

applicable filing fees required by the NAIC.

C. Insurers shall pay a filing fee of Two Hundred Dollars

($200.00) to the Insurance Commissioner for the filing of the market

conduct annual statement due at the time of filing, in accordance

with NAIC filing deadlines.

D. No waiver of an applicable privilege or claim of

confidentiality in the documents, materials, or other information

shall occur as a result of disclosure to the Insurance Commissioner

or the Commissioner’s designee under this section or as a result of

sharing the documents, materials or other information as provided in

this section.

E. Market conduct annual statements and any amendments and

addendums to such statements, filed with the Insurance Commissioner

pursuant to this section in electronic format or otherwise, shall be

treated as working papers and documents as set out in subsection F

of Section 309.4 of this title.

F. The Insurance Commissioner may use market conduct annual

statements or amendments or addendums to such statements to assist

in determining whether a market conduct examination or investigation

of an insurer should be conducted. For purposes of completing a

market conduct examination of any company under Sections 309.1

through 309.7 of this title, the Insurance Commissioner may, in the

sole discretion of the Insurance Commissioner, use market conduct

Oklahoma Statutes - Title 36. Insurance Page 77

annual statements or amendments or addendums to such statements to

assist in determining compliance with the laws of this state and

rules adopted by the Insurance Commissioner.

G. For any violation of this section, the Insurance

Commissioner may, after notice and opportunity for a hearing,

subject an insurer to a civil penalty of up to One Thousand Dollars

($1,000.00) for each occurrence. The civil penalty may be enforced

in the same manner in which civil judgments may be enforced.
Okla. Stat. tit. 36, § 36-6451 — OK Code / Title 36 / Section 36-6451
Short title
Status: in_force

Sections 1 through 18 of this act shall be a part of the

Insurance Code and shall be known as the Oklahoma Risk Retention

Act.
Okla. Stat. tit. 36, § 36-3603 — OK Code / Title 36 / Section 36-3603
"Premium" defined
Status: in_force

"Premium" is the consideration for insurance, by whatever name

called.
Okla. Stat. tit. 36, § 36-2510 — OK Code / Title 36 / Section 36-2510
Attachment or other process; benefits not subject to
Status: in_force

The money or other benefit, charity, relief or aid to be paid,

provided or rendered by any corporation, company or association

authorized to do business under this article, shall not be liable to

attachment or other process, and shall not be seized, taken,

appropriated or applied by any legal or equitable process, nor by

operation of law, to pay any debt or liability of a policy or

certificate holder or of any beneficiary named in a policy or

certificate.
Okla. Stat. tit. 36, § 36-6464 — OK Code / Title 36 / Section 36-6464
Enforcement of court orders
Status: in_force

An order issued by any District Court of the United States

enjoining a risk retention group from soliciting or selling

insurance, or operating in any state, or in any territory or

possession of the United States, upon a finding that such a group is

in a hazardous financial condition or financially impaired shall be

enforceable in the courts of this state.
Okla. Stat. tit. 36, § 36-6060.11b — OK Code / Title 36 / Section 36-6060.11b
Reimbursement for benefits delivered through
Status: in_force

behavioral health integration and psychiatric collaborative care

models.

A. For the purposes of this section:

1. “Behavioral health integration” means an approach to

delivering mental health care that improves the ability for primary

care providers to include mental and behavioral health screening,

treatment, and specialty care into their practice pursuant to

Current Procedural Terminology billing code 99484, as established by

the American Medical Association;

Oklahoma Statutes - Title 36. Insurance Page 1109

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

Section 6060.4 of Title 36 of the Oklahoma Statutes;

3. “Mental health and substance abuse disorder benefits” means

benefits for the treatment of any condition or disorder that

involves a mental health condition or substance abuse disorder,

including, but not limited to, those that fall under any of the

diagnostic categories listed in the mental disorders section of the

most recent edition of the International Classification of Diseases

or in the mental disorders section of the most recent version of the

Diagnostic and Statistical Manual of Mental Disorders;

4. “Oklahoma Medicaid Program” means the state program

administered by the Oklahoma Health Care Authority pursuant to

Section 1002 of Title 56 of the Oklahoma Statutes; and

5. “Psychiatric collaborative care model” means the evidence-

based, integrated behavioral health service delivery method

described pursuant to 81 C.F.R. 80230. The model shall include, but

not be limited to, the following Current Procedural Terminology

billing codes, as established by the American Medical Association:

a. 99492,

b. 99493, and

c. 99494.

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

renewed in this state and that provides mental health or substance

abuse disorder benefits shall provide reimbursement for such

benefits that are delivered through the behavioral health

integration and psychiatric collaborative care models.

2. The Oklahoma Medicaid Program shall provide reimbursement

for such benefits that are delivered through the behavioral health

integration and psychiatric collaborative care models.

3. Plans offered, issued, or renewed in this state that provide

benefits under this subsection may deny reimbursement of any Current

Procedural Terminology code pursuant to paragraph 3 of subsection A

of this section due to medical necessity; provided, such medical

necessity determinations shall be in compliance with the federal

Paul Wellstone and Pete Domenici Mental Health Parity and Addiction

Equity Act of 2008, as amended, and its implementing and related

regulations, and in accordance with the utilization review

requirements pursuant to Section 6551 et seq. of Title 36 of the

Oklahoma Statutes and the review and denial of mental health and

substance abuse disorder treatments and services in Section 1250.5

et seq. of Title 36 of the Oklahoma Statutes.
Okla. Stat. tit. 36, § 36-6903.1 — OK Code / Title 36 / Section 36-6903.1
Exemption of certain domestic health maintenance
Status: in_force

organizations from certain provisions of act.

Notwithstanding any other provision of this title:

1. Domestic health maintenance organizations that contract with

the Oklahoma Health Care Authority to provide basic health services

to Medicaid recipients are only subject to the benefit coverage

criteria and regulations of the Medicaid program and are exempt from

the following provisions:

a. Sections 6058, 6058A, 6059, 6060, 6060.1, 6060.2,

6060.3, 6060.3a, 6060.4, 6060.4a, 6060.4b, 6060.5,

6060.5a, 6060.6, 6060.7, 6060.8, 6060.8a, 6060.8b,

Oklahoma Statutes - Title 36. Insurance Page 1385

6060.9, 6060.9a, 6060.9b, 6060.9c, and 6060.9d of this

title,

b. Section 6911 of this title, and

c. Section 6915 of this title;

2. The exemptions listed therein will apply only to the

services provided to Medicaid recipients pursuant to Section 4002.2

of Title 56 of the Oklahoma Statutes.
Okla. Stat. tit. 36, § 36-625.4 — OK Code / Title 36 / Section 36-625.4
Credit against premium tax
Status: in_force

A. One hundred percent (100%) of any assessment paid by an

insurer under the Oklahoma Property and Casualty Insurance Guaranty

Association Act shall be allowed to that insurer as a credit against

its premium tax levied under Section 624 of Title 36 of the Oklahoma

Statutes. The tax credit referred to in this section shall be

Oklahoma Statutes - Title 36. Insurance Page 151

allowed at a rate of ten percent (10%) per year for ten (10)

successive years following the date of assessment and, at the option

of the insurer, may be taken over an additional number of years.

The balance of any tax credit not claimed in a particular year may

be reflected in the books and records of the insurer as an admitted

asset of the insurer for all purposes.

B. Available credit against premium tax allowed under

subsection A of this section may be transferred or assigned among or

between insurers if:

1. A merger, acquisition, or total assumption of reinsurance

among or between the insurers occurs; or

2. The Insurance Commissioner by order approves the transfer or

assignment.
Okla. Stat. tit. 36, § 36-2701.1 — OK Code / Title 36 / Section 36-2701.1
Fraternal benefit society defined
Status: in_force

Any incorporated society, order or supreme lodge, without

capital stock, including one exempted under paragraph 2 of

subsection A of Section 38 of this act, whether incorporated or not,

conducted solely for the benefit of its members and their

beneficiaries and not for profit, operated on a lodge system with

ritualistic form of work, having a representative form of

government, and which provides benefits in accordance with this act,

is hereby declared to be a fraternal benefit society.
Okla. Stat. tit. 36, § 36-6902 — OK Code / Title 36 / Section 36-6902
Definitions
Status: in_force

As used in the Health Maintenance Organization Act of 2003:

1. “Basic health care services” means the following medically

necessary services:

a. preventive care,

b. emergency care,

c. inpatient and outpatient hospital and physician care,

d. diagnostic laboratory and diagnostic and therapeutic

radiological services,

e. allopathic, osteopathic, chiropractic, podiatric,

optometric, psychological, outpatient diagnostic

treatment,

f. short-term rehabilitation and physical therapy,

g. emergency, short-term outpatient mental health,

substance abuse diagnostic and medical treatment,

h. home health, and

i. preventive health services;

provided, however, such term does not include dental services or

long-term rehabilitation treatment;

2. “Capitated basis” means fixed per member per month payment

or percentage of premium payment wherein the provider assumes the

full risk for the cost of contracted services without regard to the

type, value or frequency of services provided. For purposes of this

definition, “capitated basis” includes the cost associated with

operating staff model facilities;

3. “Carrier” means a health maintenance organization, an

insurer, a nonprofit hospital and medical service corporation, or

other entity responsible for the payment of benefits or provision of

services under a group contract;

4. “Copayment” means an amount an enrollee must pay in order to

receive a specific service which is not fully prepaid;

Oklahoma Statutes - Title 36. Insurance Page 1380

5. “Deductible” means the amount an enrollee is responsible to

pay out-of-pocket before a health maintenance organization begins to

pay the costs associated with treatment;

6. “Enrollee” means an individual who is covered by a health

maintenance organization;

7. “Evidence of coverage” means a statement of the essential

features and services of the health maintenance organization

coverage which is given to the subscriber by the health maintenance

organization or by the group contract holder;

8. “Extension of benefits” means the continuation of coverage

under a particular benefit provided under a contract following

termination for an enrollee who is totally disabled on the date of

termination;

9. “Grievance” means a written complaint, submitted in

accordance with a health maintenance organization’s formal grievance

procedure, by or on behalf of an enrollee regarding any aspect of

the health maintenance organization relative to the enrollee;

10. “Group contract” means a contract for health care services

which by its terms limits eligibility to members of a specified

group. The group contract may include coverage for dependents;

11. “Group contract holder” means the person to which a group

contract has been issued;

12. “Health maintenance organization” or “HMO” means a person

that undertakes to provide or arrange for the delivery of basic

health care services to enrollees on a prepaid basis, except for

copayments or deductibles for which the enrollee is responsible, or

both;

13. “Health maintenance organization producer” means a person

who solicits, negotiates, effects, procures, delivers, renews or

continues a policy or contract for HMO membership, or who takes or

transmits a membership fee or premium for such a policy or contract,

other than for the person, or a person who advertises or otherwise

holds himself or herself out to the public as a health maintenance

organization producer;

14. “Individual contract” means a contract for health care

services issued to and covering an individual. An individual

contract may include the dependents of the subscriber;

15. “Insolvent” or “insolvency” means a process by which an

organization has been declared insolvent and placed under an order

of liquidation by a court of competent jurisdiction;

16. "Insurance Commissioner" means the Insurance Commissioner

pursuant to the provisions of Title 36 of the Oklahoma Statutes;

17. “Managed hospital payment basis” means agreements wherein

the financial risk is primarily related to the degree of utilization

rather than to the cost of services;

18. "NAIC" means the National Association of Insurance

Commissioners;

Oklahoma Statutes - Title 36. Insurance Page 1381

19. “Net worth” means the excess of total admitted assets over

total liabilities, provided, total liabilities shall not include

fully subordinated debt;

20. “Participating provider” means a provider as defined in

paragraph 22 of this section who, under an express or implied

contract with the health maintenance organization, its contractor or

subcontractor, has agreed to provide health care services to

enrollees with an expectation of receiving payment, other than

copayment or deductible, directly or indirectly from the health

maintenance organization;

21. “Person” means a natural or artificial person including,

but not limited to, individuals, partnerships, associations, trusts

or corporations;

22. “Provider” means a physician, hospital or other person

licensed or otherwise authorized to furnish health care services;

23. “Replacement coverage” means the benefits provided by a

succeeding carrier;

24. "State Commissioner of Health" means the State Commissioner

of Health pursuant to the provisions of Section 1-106 of Title 63 of

the Oklahoma Statutes;

25. “Subscriber” means an individual whose employment or other

status, except family dependency, is the basis for eligibility for

enrollment in the health maintenance organization, or in the case of

an individual contract, the person in whose name the contract is

issued; and

26. “Uncovered expenditures” means the costs to the health

maintenance organization for health care services that are the

obligation of the health maintenance organization, for which an

enrollee may also be liable in the event of the health maintenance

organization’s insolvency and for which no alternative arrangements

have been made that are acceptable to the Insurance Commissioner.
Okla. Stat. tit. 36, § 36-639 — OK Code / Title 36 / Section 36-639
Annual financial report - Actuarial certification -
Status: reserved

Quarterly financial statements - Penalties.

A. Every MEWA shall, within ninety (90) days after the end of

each fiscal year of the MEWA, or within any such extension of time

that the Insurance Commissioner for good cause grants, file a report

with the Commissioner, on forms acceptable to the Commissioner and

verified by the oath of a member of the board of trustees or chief

executive officer of any governing association and by the

administrator of the MEWA, showing its financial condition on the

last day of the preceding fiscal year. The report shall contain an

Oklahoma Statutes - Title 36. Insurance Page 162

audited financial statement of the MEWA prepared in accordance with

generally accepted accounting principles, including its balance

sheet and a statement of the operations for the preceding fiscal

year certified by an independent accounting firm or independent

individual holding a permit to practice certified public accounting

in this state. The report shall also include an analysis of the

adequacy of reserves and contributions or premiums charged, based on

a review of past and projected claims and expenses.

B. In conjunction with the annual report required in subsection

A of this section, the MEWA shall submit an actuarial certification

prepared by a qualified independent actuary that indicates:

1. The MEWA is actuarially sound, with the certification

considering the rates, benefits, and expenses of, and any other

funds available for the payment of obligations of the MEWA;

2. The rates being charged and to be charged for contracts are

actuarially adequate to the end of the period for which rates have

been guaranteed;

3. The recommended amount of cash reserves the MEWA should

maintain, which shall not be less than the greater of twenty percent

(20%) of the total contributions in the preceding plan year or

twenty percent (20%) of the total estimated contributions for the

current plan year. The cash reserves shall be calculated with

proper actuarial regard for known claims, paid and outstanding, a

history of incurred but not reported claims, claims handling

expenses, unearned premiums, a trend factor, and a margin for error.

Cash reserves required by this section shall be maintained in cash

or federally guaranteed obligations of less than five-year maturity

that have a fixed or recoverable principal amount or such other

investments as the Commissioner may authorize by rule;

4. Whether amounts reserved to cover the cost of health care

benefits are:

a. calculated in accordance with the loss reserving

standards that would be applicable to a private

insurance company writing the same coverage,

b. computed in accordance with accepted loss reserving

standards, including a reserve for Incurred But Not

Reported Claims (IBNR), and

c. fairly stated in accordance with sound loss reserving

standards;

5. The recommended level of specific and aggregate stop-loss

insurance that the MEWA should maintain and whether the MEWA is

funding at the aggregate retention plus all other costs of the MEWA;

and

6. Such other information relating to the performance of the

MEWA that is reasonably required by the Commissioner.

C. The MEWA shall send an annual report to all of the

employers, describing the financial condition of the MEWA as of the

Oklahoma Statutes - Title 36. Insurance Page 163

end of the last fiscal year. The report must be sent at the same

time as the filing of the annual statement of the MEWA.

D. The Commissioner may require a MEWA to file quarterly,

within forty-five (45) days after the end of each of the remaining

fiscal quarters, a financial statement on a form prescribed by the

Commissioner, verified by the oath of a member of the board of

trustees and an administrator of the MEWA, showing its financial

condition on the last day of the preceding quarter and the statement

of a qualified actuary setting forth the actuary's opinion relating

to the level of cash reserves in accordance with paragraphs 3 and 4

of subsection B of this section.

E. Any MEWA that fails to file a report as required by this

section is subject to Section 311 of this title; and, after notice

and opportunity for hearing, the Commissioner may suspend the MEWA's

authority to enroll new insureds or to do business in this state

while the failure continues.
Okla. Stat. tit. 36, § 36-1104 — OK Code / Title 36 / Section 36-1104
Exemptions from service of process provisions
Status: in_force

Sections 1103 and 1105 of this article shall not apply to

reinsurance, nor to any action or proceeding against a surplus lines

insurer arising out of:

1. Ocean marine and foreign trade insurance,

2. Insurance on subjects located, resident, or to be performed

wholly outside this state, or on vehicles or aircraft owned and

principally garaged outside this state,

3. Insurance on property or operations of railroads engaged in

interstate commerce, or

4. Insurance on aircraft or cargo of the aircraft, or against

liability, other than employers' liability, arising out of the

ownership, maintenance, or use of the aircraft, where the policy or

contract contains a provision designating the Insurance Commissioner

as its attorney for the acceptance of service of lawful process in

any action or proceeding instituted by or on behalf of an insured or

beneficiary arising out of any policy, or where the insurer enters a

general appearance in any action.
Okla. Stat. tit. 36, § 36-2204 — OK Code / Title 36 / Section 36-2204
Statements and reports – Taxes, fees and penalties
Status: in_force

A. A medical professional liability trust shall file the

following items with the Commissioner:

Oklahoma Statutes - Title 36. Insurance Page 658

1. Within forty-five (45) days after the end of each of the

first three quarterly periods of each fiscal year, a statement of

the assets and liabilities of the trust as of the end of the

quarterly period, a statement of the revenue and expenditures of the

trust, and a statement of the changes in corpus of the trust for the

period, in each case accompanied by a certificate to the effect that

the statements were prepared from the official books and records of

the trust;

2. Within ninety (90) days after the end of each fiscal year, a

statement of the assets and liabilities of the trust as of the end

of that year, a statement of the revenue and expenditures of the

trust, and a statement of the changes in corpus of the trust for

that year, in each case accompanied by a certificate signed by a

firm of independent certified public accountants indicating that the

firm has conducted an audit of those statements in accordance with

generally accepted auditing standards and indicating the results of

the audit;

3. The independently audited annual financial statement of the

trust by June 1 of each year;

4. The closed claim reports as are required pursuant to

Sections 6810 through 6816 of Title 36 of the Oklahoma Statutes;

5. Rates and forms within thirty (30) days after issuance of

the first policy and within thirty (30) days after any changes to

the previously filed rates and forms; and

6. Any amendment to the trust instrument within thirty (30)

days of making the amendment.

B. A trust shall, annually, on or before the first day of

March, report under oath to the Commissioner, the total amount of

direct written consideration received from the membership during the

preceding calendar year, or since the last return of such

considerations was made by such trust.

1. A trust shall pay to the Department, on or before March 1,

an annual tax on all direct written considerations, after all

returned considerations are deducted for the privileges of having

written, continued and/or serviced contracts of indemnity except

considerations paid by any governmental agency or instrumentality.

The rate of taxation shall be two and twenty-five one-hundredths

percent (2.25%). If any trust 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 (4) percentage points.

2. For any trust taxed pursuant to this section, the annual tax

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

and fees of any subdivision or municipality of the state and except

ad valorem taxes. Any trust failing to make such returns and

Oklahoma Statutes - Title 36. Insurance Page 659

payments promptly and correctly shall forfeit and pay to the

Commissioner, in addition to the amount of said 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 trust so failing or neglecting for sixty (60) days

shall thereafter be debarred from transacting any business in this

state until said taxes, fees and penalties are fully paid.

3. All taxes, fees and penalties collected under this section

shall be reported and disbursed by the Commissioner and appropriated

pursuant to the provisions of Section 312.1 of Title 36 of the

Oklahoma Statutes.
Okla. Stat. tit. 36, § 36-6714 — OK Code / Title 36 / Section 36-6714
Premium tax
Status: in_force

A. A travel insurer shall pay premium tax, as provided in

Section 624 of this title, on travel insurance premiums paid by any

of the following:

1. An individual primary policyholder who is a resident of this

state;

2. A primary certificate-holder who is a resident of this state

who elects coverage under a group travel insurance policy; or

3. A blanket travel insurance policyholder that is a resident

of this state, or has its principal place of business or the

principal place of business of an affiliate or subsidiary that has

purchased blanket travel insurance in this state for eligible

blanket group members, subject to any apportionment rules which

apply to the insurer across multiple taxing jurisdictions or that

permit the insurer to allocate premium on an apportioned basis in a

reasonable and equitable manner in those jurisdictions.

B. A travel insurer shall:

1. Document the state of residence or principal place of

business of the policyholder or certificate-holder, as required in

subsection A of this section; and

2. Report as premium only the amount allocable to travel

insurance and not any amounts received for travel assistance

services or cancellation fee waivers.

C. For purposes of this section:

1. “Primary certificate holder” means an individual person who

elects and purchases travel insurance under a group policy; and

2. “Primary policyholder” means an individual person who elects

and purchases individual travel insurance.
Okla. Stat. tit. 36, § 36-2405 — OK Code / Title 36 / Section 36-2405
Level or stipulated assessments – Definition - Policy to specify amount payable - Refusal
Status: in_force

to pay - Solvency - Legal reserve life insurance - Policy to make this section part thereof - Age limitsspecify amount payable - Refusal to pay - Solvency - Legal reserve

life insurance - Policy to make this section part thereof - Age

limits – Beneficiaries - No mutual benefit associations formed

hereafter.

Mutual benefit associations authorized to do business in this

state, may provide for a level or stipulated weekly, monthly,

quarterly, semiannual or annual assessment, and the following

provisions are made specially applicable thereto:

1. Level rate assessment associations, companies or

corporations are defined as those corporations granting insurance

benefits on the assessment plan and which collect from their

membership a level, stipulated monthly, quarterly, semiannual

Oklahoma Statutes - Title 36. Insurance Page 666

assessment or premium, which assessment or premium is not made

contingent upon the happening of a certain event but is based upon

stated periodical rates or charges estimated by the Board of

directors to be sufficient for the payment of all claims and

expenses.

2. Such associations shall specify in their policy or

membership certificate forms the sum of money they promise to pay,

which sum shall not be less than the face amount of the policy, and

the number of days after satisfactory proof is filed when such

payment will be made. Upon the occurrence of such contingency

unless the contract shall have been void by fraud or by breach of

its conditions, the corporation shall be obligated to the

beneficiary for such payment at the time and in the amount specified

in the policy or certificate. If such corporation shall refuse or

fail to make such payment, after final judgment has been obtained

upon each claim, the Insurance Commissioner shall notify the

corporation not to issue any new policies or certificates until such

indebtedness is fully paid; and no officer or agent of the

corporation shall make, sign or issue any policy or certificate of

insurance while such notice is in force.

3. Each such association or company shall be held to be legally

solvent so long as its admitted assets are equal to or in excess of

its matured liabilities.

4. Any association or company organized under the provisions of

this article having admitted assets in its mortuary or reserve fund

of at least One Hundred Thousand Dollars ($100,000.00) in excess of

its matured claim liabilities may write legal reserve life insurance

and the provisions of paragraphs numbered 1, 7 and 8 of Section

1204, Article 12; Section 4029, Article 40, and Section 3610,

Article 36 of this title shall be applicable to all insurance

written on the legal reserve basis. The reserve on such business

shall be held separate and apart from all other funds of the

association or company and shall be computed upon a calculation

which shall show a value not less than that shown in accordance with

the one-year preliminary term method based upon the American

Experience Table of Mortality and three and one-half (3 1/2%)

percent per annum, assuming an average risk exposure of six (6)

months on all new policies issued within each calendar year shall be

security for the legal reserve business only. Should such legal

reserve become impaired by reason of excessive mortality or other

cause, the board of directors of such association or company may

levy additional assessments with which to make up such impairment.

Every policy issued by reason hereof shall contain a provision

making this section a part thereof. Provided, however, that any

such association or company shall discontinue writing all types of

new insurance in Oklahoma except legal reserve insurance within five

(5) years after publishing legal reserve rates or having printed

Oklahoma Statutes - Title 36. Insurance Page 667

legal reserve policy forms. Any director, trustee, officer, or

member of any such corporation, or any other person, may advance to

the corporation any sum or sums of money necessary for the purpose

of its business, or to enable it to comply with any of the

requirements of the law, and such monies and such interest thereon

as may have been agreed upon, not exceeding ten percent (10%) per

annum, shall not be a liability or claim against the corporation or

any of its assets except as to surplus earnings of such corporations

and unless the obligation is in writing and duly acknowledged by the

corporation, and a verified copy thereof is filed with the Insurance

Commissioner. No commission or promotion expense shall be paid in

connection with the advance of any such money to the corporation and

the amount of such advance shall be reported in each annual

statement filed with the Insurance Commissioner.

5. The provisions of this article placing the extreme limit of

age of persons to whom policies may be issued at not to exceed

seventy-two (72) years of age, shall not be applicable to insurance

written upon the level rate plan outside the State of Oklahoma or

the legal reserve plan in any state; provided that if the age of the

insured has been incorrectly stated in the application for any

policy issued by such association or company the face amount of said

policy payable in event of a valid claim shall be such an amount as

the premium paid by the insured to the association or company would

have purchased at the true and correct age of the insured, at entry,

on a basis of the published rates of the company applicable thereto.

6. Any individual, person, corporation, association or

partnership with an insurable interest in the life of the insured

may be a beneficiary of insurance written on either the level rate

or legal reserve plan by an association or company operating under

this article.

7. No mutual benefit association shall be formed after June 4,

1953, 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, § 36-1635 — OK Code / Title 36 / Section 36-1635
Registration of insurers
Status: in_force

A. Every insurer which is authorized to do business in this

state and which is a member of an insurance holding company system

shall register with the Insurance Commissioner, except a foreign

insurer subject to registration requirements and standards adopted

by statute or regulation in the jurisdiction of its domicile which

are substantially similar to those contained in:

1. This section;

2. Paragraph 1 of subsection A of Section 1636 of this title

and subsections B and D of Section 1636 of this title; and

3. Either paragraph 2 of subsection A of Section 1636 of this

title or a provision such as the following: Each registered insurer

shall keep current the information required to be disclosed in its

registration statement by reporting all material changes or

additions within fifteen (15) days after the end of the month in

which it learns of each change or addition; provided, however, that

subject to subsection B of Section 1636 of this title, each

registered insurer shall so report all dividends and other

distributions to shareholders within two (2) business days following

the declaration thereof.

Any insurer which is subject to registration under this section

shall register within fifteen (15) days after it becomes subject to

registration, and annually thereafter by May 1 of each year for the

previous calendar year, unless the Commissioner for good cause shown

extends the time for registration, and then within the extended

time. The Commissioner may require any insurer authorized to do

business in the state which is a member of an insurance holding

company system, and which is not subject to registration under this

section, to furnish a copy of the registration statement, the

summary specified in subsection C of this section or other

information filed by the insurance company with the insurance

regulatory authority of its domiciliary jurisdiction.

B. Every insurer subject to registration shall file the

registration statement with the Commissioner on a form and in a

format prescribed by the National Association of Insurance

Commissioners (NAIC), which shall contain the following current

information:

1. The capital structure, general financial condition,

ownership and management of the insurer and any person controlling

the insurer;

2. The identity and relationship of every member of the

insurance holding company system;

Oklahoma Statutes - Title 36. Insurance Page 466

3. The following agreements in force, and transactions

currently outstanding or which have occurred during the last

calendar year between the insurer and its affiliates:

a. loans, other investments, or purchases, sales or

exchanges of securities of the affiliates by the

insurer or of the insurer by its affiliates,

b. purchases, sales or exchange of assets,

c. transactions not in the ordinary course of business,

d. guarantees or undertakings for the benefit of an

affiliate which result in an actual contingent

exposure of the insurer's assets to liability, other

than insurance contracts entered into in the ordinary

course of the insurer's business,

e. all management agreements, service contracts and all

cost-sharing arrangements,

f. reinsurance agreements,

g. dividends and other distributions to shareholders, and

h. consolidated tax allocation agreements;

4. Any pledge of the insurer's stock, including stock of any

subsidiary or controlling affiliate, for a loan made to any member

of the insurance holding company system;

5. If requested by the Commissioner, the insurer shall include

financial statements of or within an insurance holding company

system, including all affiliates. Financial statements may include

but are not limited to annual audited financial statements filed

with the U.S. Securities and Exchange Commission (SEC) pursuant to

the Securities Act of 1933, as amended, or the Securities Exchange

Act of 1934, as amended. An insurer required to file financial

statements pursuant to this paragraph may satisfy the request by

providing the Commissioner with the most recently filed parent

corporation financial statements that have been filed with the SEC;

6. Other matters concerning transactions between registered

insurers and any affiliates as may be included from time to time in

any registration forms adopted or approved by the Commissioner;

7. Statements that the insurer's board of directors oversees

corporate governance and internal controls and that the insurer's

officers or senior management have approved, implemented and

continue to maintain and monitor corporate governance and internal

control procedures; and

8. Any other information required by the Commissioner by rule

or regulation.

C. All registration statements shall contain a summary

outlining all items in the current registration statement

representing changes from the prior registration statement.

D. No information need be disclosed on the registration

statement filed pursuant to subsection B of this section if the

information is not material for the purposes of this section.

Oklahoma Statutes - Title 36. Insurance Page 467

Unless the Commissioner by rule, regulation or order provides

otherwise, sales, purchases, exchanges, loans or extensions of

credit, investments, or guarantees involving one-half of one percent

(.5%) or less of an insurer's admitted assets as of December 31 next

preceding shall not be deemed material for purposes of this section.

The definition of materiality provided in this subsection shall not

apply for purposes of the Group Capital Calculation Instructions or

the Liquidity Stress Test Framework.

E. Subject to subsection B of Section 1636 of this title, each

registered insurer shall report to the Commissioner all dividends

and other distributions to shareholders within fifteen (15) business

days following the declaration thereof.

F. Any person within an insurance holding company system

subject to registration shall be required to provide complete and

accurate information to an insurer, where the information is

reasonably necessary to enable the insurer to comply with the

provisions of this act.

G. The Commissioner shall terminate the registration of any

insurer which demonstrates that it no longer is a member of an

insurance holding company system.

H. The Commissioner may require or allow two or more affiliated

insurers subject to registration to file a consolidated registration

statement.

I. The Commissioner may allow an insurer which is authorized to

do business in this state and which is part of an insurance holding

company system to register on behalf of any affiliated insurer which

is required to register under subsection A of this section and to

file all information and material required to be filed under this

section.

J. The provisions of this section shall not apply to any

insurer, information or transaction if and to the extent that the

Commissioner by rule, regulation or order shall exempt the same from

the provisions of this section.

K. Any person may file with the Commissioner a disclaimer of

affiliation with any authorized insurer or a disclaimer may be filed

by the insurer or any member of an insurance holding company system.

The disclaimer shall fully disclose all material relationships and

bases for affiliation between the person and the insurer as well as

the basis for disclaiming the affiliation. A disclaimer of

affiliation shall be deemed to have been granted unless the

Commissioner, within thirty (30) days following receipt of a

complete disclaimer, notifies the filing party the disclaimer is

disallowed. In the event of disallowance, the disclaiming party may

request an administrative hearing, which shall be granted. The

disclaiming party shall be relieved of its duty to register under

this section if approval of the disclaimer has been granted by the

Commissioner, or if the disclaimer is deemed to have been approved.

Oklahoma Statutes - Title 36. Insurance Page 468

L. 1. The ultimate controlling person of every insurer subject

to registration shall also file an annual enterprise risk report.

The report shall, to the best of the ultimate controlling person's

knowledge and belief, identify the material risks within the

insurance holding company system that could pose enterprise risk to

the insurer. The report shall be filed with the lead state

Commissioner of the insurance holding company system as determined

by the procedures within the Financial Analysis Handbook adopted by

the National Association of Insurance Commissioners.

2. Except as provided below, the ultimate controlling person of

every insurer subject to registration shall concurrently file with

the registration an annual group capital calculation as directed by

the lead state Commissioner. The report shall be completed in

accordance with the NAIC Group Capital Calculation Instructions,

which may permit the lead state Commissioner to allow a controlling

person that is not the ultimate controlling person to file the group

capital calculation. The report shall be filed with the lead state

Commissioner of the insurance holding company system as determined

by the commissioner in accordance with the procedures within the

Financial Analysis Handbook adopted by the NAIC. Insurance holding

company systems described below are exempt from filing the group

capital calculation:

a. an insurance holding company system that has only one

insurer within its holding company structure, that

only writes business in its domestic state, and

assumes no business from any other insurer,

b. an insurance holding company system that is required

to perform a group capital calculation specified by

the United States Federal Reserve Board. The lead

state Commissioner shall request the calculation from

the Federal Reserve Board under the terms of

information sharing agreements in effect. If the

Federal Reserve Board cannot share the calculation

with the lead state Commissioner, the insurance

holding company system is not exempt from the group

capital calculation filing,

c. an insurance holding company system whose non-United

States group-wide supervisor is located within a

reciprocal jurisdiction as described in Section 5122

of Title 36 of the Oklahoma Statutes that recognizes

the United States state regulatory approach to group

supervision and group capital,

d. an insurance holding company system:

(1) that provides information to the lead state that

meets the requirements for accreditation under

the NAIC financial standards and accreditation

program, either directly or indirectly through

Oklahoma Statutes - Title 36. Insurance Page 469

the group-wide supervisor, who has determined

such information is satisfactory to allow the

lead state to comply with the NAIC group

supervision approach, as detailed in the NAIC

Financial Analysis Handbook, and

(2) whose non-United States group-wide supervisor

that is not in a reciprocal jurisdiction

recognizes and accepts, as specified by the

commissioner in regulation, the group capital

calculation as the world-wide group capital

assessment for United States insurance groups who

operate in that jurisdiction,

e. notwithstanding the provisions of subparagraphs c and

d of paragraph 2 of subsection L of this section, a

lead state Commissioner shall require the group

capital calculation for U.S. operations of any non-

United States-based insurance holding company system

where, after any necessary consultation with other

supervisors or officials, it is deemed appropriate by

the lead state Commissioner for prudential oversight

and solvency monitoring purposes or for ensuring the

competitiveness of the insurance marketplace,

f. notwithstanding the exemptions from filing the group

capital calculation stated in subparagraphs a through

d of paragraph 2 of subsection L of this section, the

lead state Commissioner has the discretion to exempt

the ultimate controlling person from filing the annual

group capital calculation or to accept a limited group

capital filing or report in accordance with criteria

as specified by the commissioner in regulation, and

g. if the lead state Commissioner determines that an

insurance holding company system no longer meets one

or more of the requirements for an exemption from

filing the group capital calculation under this

section, the insurance holding company system shall

file the group capital calculation at the next annual

filing date unless given an extension by the lead

state Commissioner based on reasonable grounds shown;

3. The ultimate controlling person of every insurer subject to

registration and also scoped into the NAIC Liquidity Stress Test

Framework shall file the results of a specific year's Liquidity

Stress Test. The filing shall be made to the lead state insurance

commissioner of the insurance holding company system as determined

by the procedures within the Financial Analysis Handbook adopted by

the NAIC:

a. the NAIC Liquidity Stress Test Framework includes

Scope Criteria applicable to a specific data year.

Oklahoma Statutes - Title 36. Insurance Page 470

These Scope Criteria are reviewed at least annually by

the Financial Stability Task Force or its successor.

Any change to the NAIC Liquidity Stress Test Framework

or to the data year for which the Scope Criteria are

to be measured shall be effective on January 1 of the

year following the calendar year when such changes are

adopted. Insurers meeting at least one threshold of

the Scope Criteria are considered scoped into the NAIC

Liquidity Stress Test Framework for the specified data

year unless the lead state insurance commissioner, in

consultation with the NAIC Financial Stability Task

Force or its successor, determines the insurer should

not be scoped into the Framework for that data year.

Similarly, insurers that do not trigger at least one

threshold of the Scope Criteria are considered scoped

out of the NAIC Liquidity Stress Test Framework for

the specified data year, unless the lead state

insurance commissioner, in consultation with the NAIC

Financial Stability Task Force or its successor,

determines the insurer should be scoped into the

Framework for that data year. Regulators wish to

avoid having insurers scoped in and out of the NAIC

Liquidity Stress Test Framework on a frequent basis.

The lead state insurance commissioner, in consultation

with the Financial Stability Task Force or its

successor, will assess this concern as part of the

determination for an insurer, and

b. the performance of, and filing of the results from, a

specific year's Liquidity Stress Test shall comply

with the NAIC Liquidity Stress Test Framework's

instructions and reporting templates for that year and

any lead state insurance commissioner determinations,

in consultation with the Financial Stability Task

Force or its successor, provided within the Framework.

M. The failure to file a registration statement or any summary

of the registration statement or enterprise risk filing required by

this section within the time specified for filing shall be a

violation of this section.
Okla. Stat. tit. 36, § 36-1702 — OK Code / Title 36 / Section 36-1702
Purpose of deposits
Status: in_force

Such deposits shall be held as follows:

1. When the deposit is required for authority to transact

insurance in Oklahoma the deposit shall be held for the protection

of all the insurer's policyholders and/or creditors within the

United States.

2. When the deposit is required pursuant to the laws of another

state, province, or country, the deposit shall be held for such

purposes as is required by such laws, and as specified by the

Insurance Commissioner at the time the deposit is made.

3. When the deposit is required pursuant to the retaliatory

provision, Section 630 of Article 6 (Authorization of Insurers and

General Requirements Article), the deposit shall be held for

purposes as specified in the Insurance Commissioner's order

requiring the deposit.
Okla. Stat. tit. 36, § 36-6581 — OK Code / Title 36 / Section 36-6581
Uniform health claim forms - Uniform billing forms -
Status: in_force

Rules.

A. On or before January 1, 1994, the Insurance Commissioner

shall develop and adopt:

1. Uniform health care claim forms for use by all health care

providers and carriers in the state; and

2. Uniform standards and procedures for processing such claim

forms in electronic and hard-copy form.

The Commissioner shall direct all insurers licensed in the state to

begin using the uniform claim forms by July 1, 1994.

B. The Commissioner shall adopt the health care financing

administration (HCFA) 1500 form for outpatient billing and claim

submission, or its successor, and the uniform billing (UB) 92 form

for hospital billing and claim submission, or its successor as the

uniform health care claim and billing form for appropriate hospital

and medical expenses, and shall develop uniform forms for other

health care provider services, including but not limited to pharmacy

and dental services.

C. The Commissioner shall promulgate such rules as are

necessary for developing, adopting and administering the uniform

claim forms and processing system.
Okla. Stat. tit. 36, § 36-5121 — OK Code / Title 36 / Section 36-5121
Short title – Purpose – Legislative intent
Status: in_force

A. Sections 5121 through 5125 of this title shall be known and

may be cited as the "Credit for Reinsurance Act".

B. The purpose of the Credit for Reinsurance Act is to protect

the interest of insureds, claimants, ceding insurers, assuming

insurers and the public generally. The Legislature hereby declares

its intent is to ensure adequate regulation of insurers and

reinsurers and adequate protection for those parties to whom

insurers and reinsurers owe obligations. In furtherance of that

state interest, the Legislature hereby provides a mandate that upon

the insolvency of a non-United States insurer or reinsurer that

provides security to fund its obligations within the United States

Oklahoma Statutes - Title 36. Insurance Page 1035

in accordance with the Credit for Reinsurance Act, the assets

representing the security shall be maintained in the United States

and claims shall be filed with and valued by the State Insurance

Commissioner with regulatory oversight and the assets shall be

distributed in accordance with the insurance laws of the state in

which the trust is domiciled that are applicable to the liquidation

of domestic United States insurance companies. The Legislature

declares that the matters contained in the Credit for Reinsurance

Act are fundamental to the business of insurance in accordance with

15 U.S.C., Sections 1011 through 1012.
Okla. Stat. tit. 36, § 36-6561 — OK Code / Title 36 / Section 36-6561
Refusal to issue or renew or suspension or revocation of
Status: in_force

certificate - Hearing - Appeal.

A. The Insurance Commissioner may refuse to issue or renew or

may suspend or revoke a certificate if the holder does not comply

with performance assurances under this section, violates any

provision of the Hospital and Medical Services Utilization Review

Act, or violates any rule adopted pursuant thereto.

B. The Commissioner shall deny or refuse to renew a certificate

to any applicant if, upon review of the application, the

Commissioner finds that the applicant proposing to conduct

utilization review does not:

Oklahoma Statutes - Title 36. Insurance Page 1305

1. Have available the services of a sufficient number of

qualified medical professionals supervised by appropriate health

care providers to carry out the applicant's utilization review

activities. Said sufficiency shall be based on standards and

criteria pursuant to the provisions of subparagraph b of paragraph 1

of Section 8 of this act;

2. Meet any applicable rules the Commissioner adopted pursuant

to the Hospital and Medical Services Utilization Review Act relating

to the qualifications of private review agents or the performance of

utilization review; and

3. Provide assurances satisfactory to the Commissioner that:

a. the procedure and policies of the private review agent

shall protect the confidentiality of medical records,

and

b. the review agent shall be reasonably accessible in

this state to patients, hospitals and health care

providers as required by this act.

C. Before denying, not renewing, or revoking a certificate, the

Commissioner shall provide the applicant or certificate holder with

reasonable time to supply additional information demonstrating

compliance with the requirements of the Hospital and Medical

Services Utilization Review Act and the opportunity to request a

hearing. If an applicant or certificate holder requests a hearing,

the Commissioner shall send a hearing notice and conduct a hearing

in accordance with the Administrative Procedures Act.

D. Any person aggrieved by a final decision of the Commissioner

in a contested case may appeal the decision as provided for in the

Administrative Procedures Act.
Okla. Stat. tit. 36, § 36-311.1 — OK Code / Title 36 / Section 36-311.1
Fraudulent or false statement - Failure to timely file
Status: in_force

statement - Penalty.

A. Any insurer who files with the Insurance Commissioner any

statement required by this Code knowing such statement to be

fraudulent and materially false, upon conviction, shall be guilty of

a Class D1 felony offense, for which the punishment shall be a fine

of not to exceed Fifty Thousand Dollars ($50,000.00). Any officer,

actuary, or employee of such insurer who causes such statement to be

filed, knowing the fraudulent and materially false nature thereof,

upon conviction, shall be guilty of a Class D1 felony offense, for

which the punishment for each occurrence shall be a fine of not to

exceed Twenty-five Thousand Dollars ($25,000.00), or imprisonment as

provided for in subsections B through F of Section 20N of Title 21

of the Oklahoma Statutes, or both said fine and imprisonment, and

shall never again be permitted to act as an actuary, officer, or

director of any insurer licensed to do business in this state.

B. Any insurer who fails without reasonable cause and

permission of the Commissioner to timely file any statement required

by this Code shall be subject, after notice and opportunity for

hearing, to censure, suspension or revocation of certificate.

Oklahoma Statutes - Title 36. Insurance Page 74

Annual statements filed after the first day of March without express

written advance permission of the Commissioner shall be accompanied

by a late filing fee in the amount of Two Hundred Fifty Dollars

($250.00) or One Hundred Dollars ($100.00) per day, whichever is

greater. Repeated willful violations, after notice and opportunity

for hearing, may subject the insurer to both censure, suspension, or

revocation of certificate and civil penalty of not less than One

Hundred Dollars ($100.00) nor more than Ten Thousand Dollars

($10,000.00) for each occurrence in addition to the late filing fee.

C. Prosecution or administrative action for any violation of

the provisions of this section shall be commenced within four (4)

years after the violation is discovered.
Okla. Stat. tit. 36, § 36-7303 — OK Code / Title 36 / Section 36-7303
Prohibition on denial of claim in a prior authorization –
Status: in_force

Exceptions - Requirements.

A. For the purposes of this section, "prior authorization"

means any predetermination, prior authorization, or similar

authorization that is verifiable, whether through issuance of

Oklahoma Statutes - Title 36. Insurance Page 1504

letter, facsimile, email, or similar means, indicating that a

specific procedure is, or multiple procedures are, covered under the

patient's dental plan and reimbursable at a specific amount, subject

to applicable coinsurance and deductibles, and issued in response to

a request submitted by a dentist using a format prescribed by the

insurer.

B. A dental service contractor shall not deny any claim

subsequently submitted for procedures specifically included in a

prior authorization unless at least one of the following

circumstances applies for each procedure denied:

1. Benefit limitations such as annual maximums and frequency

limitations not applicable at the time of the prior authorization

are reached due to utilization subsequent to issuance of the prior

authorization;

2. The documentation for the claim provided by the person

submitting the claim clearly fails to support the claim as

originally authorized;

3. If, subsequent to the issuance of the prior authorization,

new procedures are provided to the patient or a change in the

condition of the patient occurs such that the prior authorized

procedure would no longer be considered medically necessary, based

on the prevailing standard of care;

4. If, subsequent to the issuance of the prior authorization,

new procedures are provided to the patient or a change in the

condition of the patient occurs such that the prior authorized

procedure would at that time required disapproval pursuant to the

terms and conditions for coverage under the plan of the patient in

effect at the time the prior authorization was used; or

5. The denial of the dental service contractor was due to one

of the following:

a. another payor is responsible for payment,

b. the dentist has already been paid for the procedures

identified on the claim,

c. the claim was submitted fraudulently or the prior

authorization was based in whole or material part on

erroneous information provided to the dental service

contractor by the dentist, patient, or other person

not related to the carrier, or

d. the person receiving the procedure was not eligible to

receive the procedure on the date of service and the

dental service contractor did not know, and with the

exercise of reasonable care could not have known, of

their eligibility status.

C. A dental service contractor shall not require any

information be submitted for a prior authorization request that

would not be required for submission of a claim.

Oklahoma Statutes - Title 36. Insurance Page 1505

D. A dental service contractor shall issue a prior

authorization within thirty (30) days of the date a request is

submitted by a dentist.

E. The provisions of Section 7301 of Title 36 of the Oklahoma

Statutes shall apply to any denial of a claim pursuant to subsection

B of this section for a procedure included in a prior authorization.

F. The dental service contractor shall not recoup a claim

solely due to a loss of coverage of a patient or ineligibility if,

at the time of treatment, the contractor erroneously confirms

coverage and eligibility, but had sufficient information available

to it indicating that the patient was no longer covered or was

ineligible for coverage.
Okla. Stat. tit. 36, § 36-6421 — OK Code / Title 36 / Section 36-6421
Dissolution of Association - Reimplementation
Status: in_force

If at any time after the provisions of this act are implemented,

either by voluntary plan or as otherwise provided for herein, the

State Insurance Commissioner would determine by written order that

there was no further need for such Association, then the same would

be dissolved. Provided however, that if such Association were

dissolved, and then the State Insurance Commissioner determined at a

later time there existed a need for such Association, the

Commissioner of Insurance would then proceed according to the

provisions of Section 53 of this act, and that section would again

be applicable at that time.

If the Commissioner makes such a determination to reimplement

the Association, he will give the companies involved ninety (90)

days to comply, and if they fail to do so, then Sections 47 through

55 of this act would be applicable.
Okla. Stat. tit. 36, § 36-1624 — OK Code / Title 36 / Section 36-1624
Acquiring or holding real property
Status: in_force

No insurance company, foreign, alien or domestic, doing business

in Oklahoma, may acquire or hold real property therein, except as

follows:

1. Such as shall be requisite for the convenient accommodation

of the transaction of its own business; the amount invested in such

real property shall not exceed ten percent (10%) of the investing

company's admitted assets but the Insurance Commissioner may grant

permission to the company to invest in real property for such

purpose in such increased amount as the Insurance Commissioner may

deem proper on the showing made, if upon a hearing held the

Insurance Commissioner finds that the amount represented by such

percentage of its admitted assets is insufficient to provide

Oklahoma Statutes - Title 36. Insurance Page 438

convenient accommodation for the company's business. Real estate

maintained for the convenient accommodation of the transaction of

its own business, permitted to be carried as an admitted asset of

the company pursuant to this section shall be carried at an amount

equal to its cost at the time of acquisition together with the

actual cost of improvements made thereon, less encumbrances and less

depreciation; provided, however, any real estate carried at fair

market value as an admitted asset of the company on November 1,

1989, shall be excluded from this provision;

2. Such as shall have been mortgaged to it in good faith by way

of security for loans previously contracted for monies due;

3. Such as shall have been conveyed to it in satisfaction of

debts previously contracted in course of its dealings;

4. Such as shall have been purchased at sales on judgments,

decrees, or mortgages obtained or made for such debts;

5. Such real property as shall have been acquired in whole or

in part, in exchange for real property of approximately the same

value theretofore legally acquired and held by it;

6. Real property and improvements thereon located in

incorporated cities and towns and as additions thereto or real

property and improvements wherever located acquired for sale or

lease, if such lessee or purchaser could have legally acquired the

same in the first instance, and may make improvements thereon for

commercial and industrial purposes as an investment for the

production of income. The phrase "commercial and industrial

purposes" shall not include real property primarily intended for use

or valued as agricultural, horticultural, farm, and ranch, unless

adjacent to other real property the ownership of which is permitted

under this section and was acquired prior to July 1, 2006. The

total amount invested in such real property and improvements thereon

shall not exceed the company's capital and/or surplus, or ten

percent (10%) of its admitted assets whichever is the lesser;

provided, however, the amount invested in any one investment shall

not exceed four percent (4%) of the company's admitted assets. The

admitted assets shall be determined by the company's last annual

report made as of December 31, immediately preceding and which has

been filed with the Insurance Commissioner as required by law, or as

shown by a current financial statement on file with the

Commissioner;

7. Real property acquired and held under Section 1612.1 of this

title; and

8. 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 Section 1622 of this

title, of the company's admitted assets may be invested in real

property pursuant to this section, purchase money mortgages pursuant

Oklahoma Statutes - Title 36. Insurance Page 439

to Section 1623 of this title, and mortgage loans pursuant to

Section 1622 of this title.
Okla. Stat. tit. 36, § 36-104 — OK Code / Title 36 / Section 36-104
"Person" defined
Status: in_force

"Person" includes an individual, company, insurer, association,

organization, society, reciprocal or inter-insurance exchange,

partnership, syndicate, business trust, corporation, Lloyd's

association, and entity, and association, group or department of

underwriters and any farmer’s educational and cooperative union.
Okla. Stat. tit. 36, § 36-1933 — OK Code / Title 36 / Section 36-1933
Order to pay assessment
Status: in_force

After levy of assessment as provided in section 1832 of this

article, upon the filing of a further detailed report by the

Insurance Commissioner the court shall issue an order directing each

member (if a mutual insurer) or each subscriber (if a reciprocal

insurer), if he shall not pay the amount assessed against him to the

Insurance Commissioner on or before a day to be specified in the

order, to show cause why he should not be held liable to pay such

assessment, together with costs as provided in section 1835 of this

article, and to show cause why the Insurance Commissioner should not

have judgment therefor.
Okla. Stat. tit. 36, § 36-3101 — OK Code / Title 36 / Section 36-3101
Definitions
Status: in_force

As used in this act:

1. "Commissioner" means the Commissioner of Insurance, his or

her assistants or deputies, or other persons authorized to act for

him or her;

2. "Company" means any person, firm, copartnership, company,

association or corporation engaged in selling, furnishing or

procuring, either as principal or producer, for a consideration,

motor club service;

3. "Producer" means an insurance producer or a limited lines

producer who solicits the purchase of service contracts or transmits

for another any such contract, or application therefor, to or from

the company, or acts or aids in any manner in the delivery or

negotiation of any such contract, or in the renewal or continuance

thereof. This, however, shall not include any person performing

only work of a clerical nature in the office of the motor club;

4. "Towing service" means any act by a company which consists

of towing or moving a motor vehicle from one place to another under

other than its own power;

5. "Emergency road service" means any act by a company to

adjust, repair or replace the equipment, tires or mechanical parts

of a motor vehicle so it may operate under its own power; or

reimbursement of expenses incurred by a member when his or her motor

vehicle is unable to operate under its own power;

6. "Insurance service" means any act to sell or give to the

holder of a service contract or as a result of membership in or

affiliation with a company a policy of insurance covering the holder

for liability or loss for personal injury or property damage

resulting from the ownership, maintenance, operation or use of a

motor vehicle;

7. "Bail bond service" means any act by a company to furnish or

procure a cash deposit, bond or other undertaking required by law

for any person accused of a law violation of this state, pending

trial;

8. "Discount service" means any act by a company resulting in

special discounts, rebates or reductions of price on gasoline, oil,

Oklahoma Statutes - Title 36. Insurance Page 755

repairs, insurance, parts, accessories or service for motor vehicles

to holders of service contracts;

9. "Financial service" means any act by a company to loan or

otherwise advance monies, with or without security, to a service

contract holder;

10. "Buying and selling service" means any act by a company to

aid the holder of a service contract in the purchase or sale of an

automobile;

11. "Theft service" means any act by a company to locate,

identify or recover a stolen or missing motor vehicle owned or

controlled by the holder of a service contract or to detect or

apprehend the person guilty of such theft;

12. "Map service" means any act by a company to furnish road

maps without cost to holders of service contracts;

13. "Touring service" means any act by a company to furnish

touring information without cost to holders of service contracts;

14. "Legal service" means any act by a company to furnish to a

service contract holder, without cost, the services of an attorney;

15. "Motor service club" means the rendering, furnishing or

procuring of, or reimbursement for three or more of the following:

towing service, emergency road service, insurance service, bail bond

service, legal service, discount service, financial service, buying

and selling service, theft service, map service, and touring service

to any person, in connection with the ownership, operation, use, or

maintenance of a motor vehicle by such person, that has membership,

for consideration; and

16. "Service contract" means any written agreement whereby any

company, for a consideration, promises to render, furnish or procure

for any person motor club service.
Okla. Stat. tit. 36, § 36-6968 — OK Code / Title 36 / Section 36-6968
Severability
Status: in_force

If any one or more provision, section, subsection, sentence,

clause, phrase or word of this act or the application hereof to any

person or circumstance is found to be unconstitutional, the same is

hereby declared to be severable and the balance of this act shall

remain effective notwithstanding such unconstitutionality. The

Legislature hereby declares that it would have passed this act, and

each provision, section, subsection, sentence, clause, phrase or

word thereof, irrespective of the fact that any one or more

provision, section, subsection, sentence, clause, phrase, or word be

declared unconstitutional.
Okla. Stat. tit. 36, § 36-6147 — OK Code / Title 36 / Section 36-6147
Financial reserve
Status: in_force

A. A prepaid dental plan organization shall maintain, for

protection of members, a financial reserve consisting of at least

two percent (2%) of all prepaid charges collected from members for

the prepaid dental plan, until said reserve totals Five Hundred

Thousand Dollars ($500,000.00). This reserve shall be in addition to

the deposit prescribed by Section 6 of this act.

B. The reserve prescribed by this section shall not apply with

respect to a prepaid dental plan organization which is funded by the

state, a political subdivision of the state, or the United States.
Okla. Stat. tit. 36, § 36-6204.1 — OK Code / Title 36 / Section 36-6204.1
Apprentice adjuster license - Application - Terms and
Status: in_force

conditions.

A. The apprentice adjuster license is an optional license to

facilitate the experience, education, and training necessary to

Oklahoma Statutes - Title 36. Insurance Page 1163

ensure reasonable competency of the responsibilities and duties of

an adjuster.

B. An individual applying for a resident apprentice adjuster

license shall make application to the Insurance Commissioner on the

appropriate NAIC Uniform Individual Application or an application

approved by the Commissioner in a format prescribed by the

Commissioner and declare under penalty of suspension, revocation, or

refusal of the license that the statements made in the application

are true, correct, and complete to the best of the knowledge and

belief of the individual. Before approving the application, the

Insurance Commissioner shall find that the individual:

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

2. Is a resident of this state and has designated this state as

the home state of the individual;

3. Has a business or mailing address in this state for

acceptance of service of process;

4. Has not committed any act that is a ground for probation,

suspension, revocation, or denial of licensure as set forth in

Section 6220 of Title 36 of the Oklahoma Statutes;

5. Is trustworthy, reliable, and of good reputation, evidence

of which may be determined by the Insurance Commissioner; and

6. Has paid the fees set forth in Section 6212 of Title 36 of

the Oklahoma Statutes.

C. The apprentice adjuster license shall be subject to the

following terms and conditions:

1. Accompanying the apprentice application shall be an

attestation, from a licensed adjuster with the same line or lines of

authority for which the apprentice has applied, certifying that the

apprentice will be subject to training, direction, and control by

the licensed adjuster and further certifying that the licensed

adjuster assumes responsibility for the actions of the apprentice in

the apprentice’s capacity as an adjuster;

2. The apprentice adjuster is authorized to adjust claims only

in this state;

3. The apprentice licensee is restricted to participation in

the investigation, settlement, and negotiation of claims subject to

the review and final determination of the claim by the supervising

licensed adjuster;

4. Compensation of an apprentice adjuster shall be on a

salaried or hourly basis only;

5. The apprentice adjuster shall not be required to take and

successfully complete the adjuster examination pursuant to Section

6208 of Title 36 of the Oklahoma Statutes, to adjust claims as an

apprentice adjuster. However, at any time during the apprenticeship

the apprentice adjuster may choose to take the examination. If the

individual takes and successfully completes the adjuster exam, the

Oklahoma Statutes - Title 36. Insurance Page 1164

apprentice adjuster license shall automatically terminate and an

adjuster license shall be issued to that individual;

6. The apprentice adjuster license is for a period not to

exceed six (6) months and is nonrenewable; and

7. The licensee shall be subject to probation, suspension,

revocation, or refusal pursuant to Section 6220 of Title 36 of the

Oklahoma Statutes.

D. The licensed adjuster responsible for the apprentice

adjuster, as stated in paragraph 1 of subsection C of this section,

shall supervise no more than five active apprentice licensees at any

given time.
Okla. Stat. tit. 36, § 36-6125.2 — OK Code / Title 36 / Section 36-6125.2
Funding of contract by assignment of life insurance or
Status: in_force

fixed annuity proceeds.

A. Contracts for prepaid funeral benefits provided for pursuant

to Section 6125 of this title may be funded by assignments of

proceeds from either a standard life or accident insurance policy or

an individual or group fixed annuity to the contracting

organization.

B. A guaranteed contract for prepaid funeral benefits provided

for pursuant to paragraph 1 of subsection B of Section 6125 of this

title which is to be funded by assignment of proceeds from either a

standard life or accident insurance policy or an individual or group

fixed annuity shall provide that:

1. The contract be funded by an insurance policy or annuity

issued in the face amount of the current purchase price of the

contract for prepaid funeral benefits;

2. All accrued benefits under the insurance policy or annuity

shall become available for disbursement to the organization upon the

death of the purchaser or designated beneficiary of the prepaid

funeral contract;

3. The purchaser or designated beneficiary shall be the same

individual named as the insured or designated beneficiary under the

insurance policy or annuity; and

4. The disbursement of insurance or annuity proceeds to the

organization shall constitute payment in full to the organization

for the prepaid funeral benefits.

C. A nonspecified contract for prepaid funeral benefits

provided for pursuant to paragraph 2 of subsection B of Section 6125

of this title which is to be funded by assignment of proceeds from

either a standard life or accident insurance policy or an individual

or group fixed annuity shall provide that:

Oklahoma Statutes - Title 36. Insurance Page 1147

1. The total proceeds paid to the organization under the

insurance policy or annuity shall not exceed the actual retail cost

of the funeral services and merchandise at the time of delivery;

2. Any funds remaining unused shall be refunded to the

purchaser, the personal representative of the purchaser or the

designated beneficiary; and

3. After November 1, 2009, all price lists reflecting the

actual retail cost of funeral services and merchandise used at the

time of the delivery of services shall be retained for a period of

at least six (6) years.

D. A violation of this section shall constitute a misdemeanor

and shall be punished by a fine of not less than One Hundred Dollars

($100.00) nor more than Five Hundred Dollars ($500.00) or by

imprisonment in the county jail for not less than one (1) month nor

more than six (6) months, or by both such fine and imprisonment.
Okla. Stat. tit. 36, § 36-1512 — OK Code / Title 36 / Section 36-1512
Valuation of other securities
Status: in_force

A. Securities, other than those referred to in Section 1511 of

this article, held by an insurer shall be valued, in the discretion

of the Insurance Commissioner, at their market value, or at true

book value, all consistent with any current method for the valuation

of any such security formulated or approved by the National

Association of insurance Commissioners.

B. Preferred or guaranteed stocks or shares while paying full

dividends may be carried at a fixed value in lieu of market value,

at the discretion of the Insurance Commissioner and in accordance

with such method of computation as he may approve.
Okla. Stat. tit. 36, § 36-1441.1 — OK Code / Title 36 / Section 36-1441.1
Administrator of certain group self-insurance
Status: in_force

associations exempted from act.

The provisions of Section 1441 et seq. of this title shall not

apply to administrators of group self-insurance associations created

pursuant to Section 103 of Title 85A of the Oklahoma Statutes.
Okla. Stat. tit. 36, § 36-2691.12 — OK Code / Title 36 / Section 36-2691.12
Relationship of chiropractor and patient
Status: in_force

Nothing in this article shall be deemed to alter the statutory

relationship of chiropractor and patient which has heretofore been

established. No chiropractic service corporation shall in any way

attempt to influence the subscriber in his free choice of a

chiropractor other than to limit its benefit to properly licensed

Oklahoma Statutes - Title 36. Insurance Page 710

chiropractors of the State of Oklahoma who are in good standing with

the Board of Chiropractic Examiners of Oklahoma. Nothing in this

article shall be deemed to abridge the right of any chiropractor to

decline patients in accordance with the standards of practices of

such chiropractor; and no such corporation shall be deemed to be

engaged in the corporate practice of chiropractic.
Okla. Stat. tit. 36, § 36-660.9 — OK Code / Title 36 / Section 36-660.9
Proposed reorganization plan — Commissioner review as
Status: in_force

alternate conversion plan.

A. The Oklahoma Insurance Commissioner shall review the

proposed plan of reorganization as an alternate conversion plan.

The Commissioner may require as a condition of approval

modifications of the proposed plan of reorganization that the

Commissioner determines necessary to protect the members' interests.

B. The Commissioner may retain at the mutual insurance

company's expense, a qualified expert who is not a member of the

Commissioner's staff to assist the Commissioner in reviewing the

conversion plan and the valuation. If the Commissioner retains a

qualified expert under this subsection, the Commissioner may extend

the period for decision by an additional sixty (60) days beyond the

initial sixty-day period.

C. The Commissioner has jurisdiction over a mutual holding

company organized under this act to ensure that member interests are

protected.
Okla. Stat. tit. 36, § 36-6060.42 — OK Code / Title 36 / Section 36-6060.42
Shared savings incentive program
Status: in_force

A. An insurance carrier may offer a shared savings incentive

program to provide incentives to an enrollee when the enrollee

obtains a comparable health care service that is covered by the

carrier from providers that charge less than the average allowed

amount paid by that carrier to network providers for that,

comparable health care service.

B. Incentives may be calculated as a percentage of the

difference in allowed amounts to the average, as a flat dollar

amount, or by any other reasonable methodology approved by the

Insurance Department. The carrier shall provide the incentive as a

cash payment to the enrollee or credit toward the annual in-network

deductible and out-of-pocket limit of the enrollee. Carriers may

allow enrollees to select which method the enrollee prefers to

receive the incentive.

C. An insurance carrier that offers a shared savings incentive

program shall:

1. Establish the program as a component part of the policy or

certificate of insurance provided by the carrier and notify the

enrollees and the Insurance Department at least thirty (30) days

before program termination;

2. File a description of the program on a form prescribed by

the Insurance Commissioner. The Insurance Department shall review

the filing and determine whether the program complies with the

provisions of this section;

3. Notify an enrollee, annually or at the time of renewal, of

the availability of the shared savings incentive program and the

procedures to participate in the program;

4. Publish on the website of the insurance carrier, easily

accessible to enrollees and applicants for insurance, a list of

comparable health care services and health care providers and the

shared savings incentive amount applicable for each service. A

shared savings incentive shall not be less than twenty-five percent

Oklahoma Statutes - Title 36. Insurance Page 1120

(25%) of the savings generated by the participation of the enrollee

in any shared savings incentive program offered by the insurance

carrier. The baseline for the savings calculation shall be the

average in-network amount paid for that service in the most recent

twelve-month period or any other methodology established by the

insurance carrier and approved by the Insurance Department;

5. At least quarterly, credit, deposit or make a cash payment

to an enrollee of the shared savings incentive amount pursuant to

participation in the shared savings incentive program; and

6. Submit an annual report to the Insurance Department within

ninety (90) days after the close of each health benefit plan year.

At a minimum, the report shall include the following information:

a. the number of enrollees who participated in the

program during the health benefit plan year and the

number of instances of participation,

b. the total cost of services provided as a part of the

program, and

c. the total value of the shared savings incentive

payments made to enrollees participating in the

program and the values distributed as cash or credit

toward the annual in-network deductible and out-of-

pocket limit of an enrollee.

D. An enrollee shall not be required to participate in a shared

savings incentive program.
Okla. Stat. tit. 36, § 36-1435.19 — OK Code / Title 36 / Section 36-1435.19
Rules
Status: in_force

The Insurance Commissioner may, in accordance with Section 307.1

of Title 36 of the Oklahoma Statutes, promulgate reasonable rules as

are necessary or proper to carry out the purposes of the Oklahoma

Producer Licensing Act.
Okla. Stat. tit. 36, § 36-1529 — OK Code / Title 36 / Section 36-1529
Confidentiality of RBC Reports and Plans
Status: in_force

A. RBC Reports and RBC Plans shall be kept confidential by the

Insurance Commissioner. This information shall not be subject to

subpoena. This information shall be made public by the Commissioner

only for the purpose of enforcement actions taken by the

Commissioner pursuant to this act or any other provision of the

insurance laws of this state.

B. Except as otherwise required under the provisions of this

act, the making, publishing, disseminating, circulating, or placing

before the public, or causing, directly or indirectly, to be made,

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

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

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

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

announcement, or statement containing an assertion, representation,

or statement with regard to the RBC Levels of any insurer, or of any

component derived in the calculation, by an insurer, agent, broker,

or other person engaged in any manner in the insurance business is

misleading and is therefore prohibited. Any person who violates

Oklahoma Statutes - Title 36. Insurance Page 421

this subsection shall be subject to a civil penalty in an amount not

less than One Thousand Dollars ($1,000.00) nor more than Ten

Thousand Dollars ($10,000.00).

C. The RBC Reports and RBC Plans are intended solely for use by

the Commissioner in monitoring the solvency of insurers and the need

for possible corrective action with respect to insurers. The RBC

Reports and RBC Plans shall not be used by the Commissioner for

ratemaking nor considered or introduced as evidence in any rate

proceeding nor used by the Commissioner to calculate or derive any

elements of an appropriate premium level or rate of return for any

line of insurance which an insurer or any affiliate is authorized to

write.
Okla. Stat. tit. 36, § 36-1435.10 — OK Code / Title 36 / Section 36-1435.10
Exemptions from examination requirement
Status: in_force

Oklahoma Statutes - Title 36. Insurance Page 342

A. The following are exempt from the requirement for an

examination, if the Insurance Commissioner determines, in accordance

with rules adopted by the Commissioner, that the applicant is

cognizant of and capable of fulfilling the responsibilities of the

license:

1. Any limited lines producer; and

2. A title insurance producer licensed prior to November 1,

2006, who is an applicant for an aircraft title producer license.

B. A person licensed as an insurance producer in another state

who moves to this state shall make application to become a resident

licensee within ninety (90) days of establishing legal residence in

Oklahoma. No examination or continuing education shall be required

of that person to obtain resident licensing for any line of

authority held by the licensee in the prior state on the date legal

residency was established in this state, except where the Insurance

Commissioner determines otherwise by regulation.
Okla. Stat. tit. 36, § 36-6153 — OK Code / Title 36 / Section 36-6153
Examination of business affairs of prepaid dental plan
Status: in_force

organization.

The Commissioner may conduct an examination of the business

affairs of any prepaid dental plan organization as often as the

Commissioner deems necessary for the protection of the interests of

the people of this state.
Okla. Stat. tit. 36, § 36-6570.10 — OK Code / Title 36 / Section 36-6570.10
Prior authorization granted under former health plan —
Status: in_force

Time frame to honor — Review.

A. On receipt of information documenting a prior authorization

from the enrollee or from the enrollee's health care provider, a

utilization review entity shall honor a prior authorization granted

to an enrollee from a previous utilization review entity for at

least the initial sixty (60) days of an enrollee's coverage under a

new health plan.

B. During the time period described in subsection A of this

section, a utilization review entity may perform its own review to

grant a prior authorization or make an adverse determination.

C. A utilization review entity shall continue to honor a prior

authorization it has granted to an enrollee when the enrollee

changes products under the same health insurance company for the

initial sixty (60) days of an enrollee's coverage under the new

Oklahoma Statutes - Title 36. Insurance Page 1315

product unless the service is no longer a covered service under the

new product.