Okla. Stat. tit. 36, § 36-6103.3 — OK Code / Title 36 / Section 36-6103.3
Engaging in the business of insurance without statutory
Status: in_force

authorization - Remedies of Insurance Commissioner.

A. For the purposes of Sections 6103.1 through 6103.11 of this

title, "person" shall include an individual, a partnership, a

corporation, a limited liability company, an association, a joint

Oklahoma Statutes - Title 36. Insurance Page 1131

stock company, a trust, an unincorporated organization, any similar

group, entity or any combination of the foregoing acting in concert.

B. No person or insurer shall directly or indirectly do any of

the acts of an insurance business set forth in Sections 6103.1

through 6103.11 of this title, except as provided by and in

accordance with the specific authorization of statute. In respect

to the insurance of subjects resident, located or to be performed

within this state, this section shall not prohibit the collection of

premium or other acts performed outside of this state by persons or

insurers authorized to do business in this state provided such

transactions and insurance contracts otherwise comply with statute.

C. Any person which the Insurance Commissioner has reason to

believe is doing any of the acts specified in Section 6103.2 of this

title, upon written request by the Commissioner, shall immediately

provide to the Commissioner such information as requested in

relation to such acts.

D. A person or entity who violates any provision of Sections

6103.1 through 6103.11 of this title is subject to a civil penalty

of not more than Ten Thousand Dollars ($10,000.00) for each act of

violation and for each day of violation to be recovered as provided

in this section.

E. Whenever the Commissioner has reason to believe or it

appears that any person or insurer has violated or is threatening to

violate any provision of Sections 6103.1 through 6103.11 of this

title or any rule promulgated pursuant thereto, or that any person

or insurer acting in violation of Sections 6103.1 through 6103.11 of

this title has engaged in or is threatening to engage in any unfair

method of competition or any unfair or deceptive act or practice as

defined by Section 1201 et seq. of this title or any rule

promulgated pursuant thereto, the Commissioner may:

1. Issue an ex parte cease and desist order under the

procedures provided by Sections 6103.5 and 6103.6 of this title;

2. Institute in the district court of Oklahoma County a civil

suit for injunctive relief to restrain the person from continuing

the violation or threat of violation;

3. Institute in the district court of Oklahoma County a civil

suit to recover a civil penalty as provided for in this section; or

4. Exercise any combination of the acts provided for in this

subsection.

F. On application for injunctive relief and a finding that a

person is violating or threatening to violate any provision of

Sections 6103.1 through 6103.11 of this title, the district court

shall grant the injunctive relief and the injunction shall be issued

without bond.

G. The remedies provided in Sections 6103.1 through 6103.11 of

this title for administrative action against unauthorized insurers

shall also apply to unauthorized individuals or persons engaged in

Oklahoma Statutes - Title 36. Insurance Page 1132

the business of bail bonds or any other business which is subject to

the jurisdiction of the Insurance Commissioner.

H. This section shall not be construed to limit the Insurance

Commissioner to the remedies specified herein. It is the intent of

the Legislature that persons engaging in the business of insurance,

or any other business for which authorization from the Insurance

Commissioner is required, without statutory authorization constitute

an imminent peril to the public welfare and should immediately be

stopped and enjoined from doing so, provided, the Insurance

Commissioner and the State of Oklahoma should be able to choose at

any time any available remedy or action to bring about such a result

without regard to prior proceedings under this section.Oklahoma Statutes - Title 36. Insurance Page 31
Okla. Stat. tit. 36, § 36-6130v2 — OK Code / Title 36 / Section 36-6130v2
Violations and penalties
Status: in_force

A. Any officer, director, agent, or employee of any

organization subject to the terms of Sections 6121 through 6136.18

of this title who makes or attempts to make any contract in

violation of the provisions of Sections 6121 through 6136.18 of this

title, or who refuses to allow an inspection of the records of the

organization, or who violates any other provision of Sections 6121

through 6136.18 of this title, upon conviction, shall be guilty of a

Class D1 felony offense and shall be punished by imprisonment as

provided for in subsections B through F of Section 20N of Title 21

of the Oklahoma Statutes, and a fine not exceeding Ten Thousand

Dollars ($10,000.00), and ordered to pay restitution to the victim.

Each violation of any provision of Sections 6121 through 6136.18 of

this title shall be deemed a separate offense and prosecuted

individually.

B. The violation of any provision of Sections 6121 through

6136.18 of this title shall constitute a cause for the Oklahoma

Funeral Board to revoke, or to refuse to issue or renew, any license

issued pursuant to the provisions of Sections 396 through 396.33 of

Title 59 of the Oklahoma Statutes. The violation of any provision

of Sections 6121 through 6136.18 of this title shall constitute a

cause for the Insurance Commissioner to issue a notice and order to

show cause why the licensee shall not be censured, have the license

of the licensee suspended or revoked, be subject to a fine of not

less than One Hundred Dollars ($100.00) and not more than One

Thousand Dollars ($1,000.00), or be subject to both such fine and

punishment.
Okla. Stat. tit. 36, § 36-2207 — OK Code / Title 36 / Section 36-2207
Guaranty funds – Membership or financial contribution to
Status: in_force

or benefit from.

No trust created pursuant to the Oklahoma Medical Professional

Liability Trusts Act shall be permitted to join or contribute

financially to any insurance insolvency guaranty fund or similar

entity, nor shall any trust or its insureds receive any benefit from

any insurance guaranty fund or similar entity for claims made

against the trust or its insureds.
Okla. Stat. tit. 36, § 36-6701 — OK Code / Title 36 / Section 36-6701
Workers' compensation providers – Notice to policyholder
Status: in_force

A. Each insurance company that provides workers' compensation

insurance or an equivalent insurance product in this state shall

maintain or provide workplace safety services for its policyholders

as a condition for approval by the Insurance Commissioner to write

such insurance. Such services shall be adequate to implement

workplace safety plans as required by the nature of its

policyholders' operations and shall include but not be limited to

surveys, recommendations, training programs, consultations, analyses

of accident causes, industrial hygiene, and industrial health

services.

B. Notice that workplace safety services are available to the

policyholder from the insurance company must appear in no less than

ten-point bold type on the front of each workers' compensation

insurance or equivalent insurance policy delivered or issued for

delivery in this state.
Okla. Stat. tit. 36, § 36-4002 — OK Code / Title 36 / Section 36-4002
Standard provisions required in life insurance policies
Status: in_force

A. No policy of life insurance other than industrial, group,

and pure endowments with or without return of premiums or of

premiums and interest, shall be delivered or issued for delivery in

Oklahoma unless it contains in substance all of the provisions

required by Sections 4003 to 4014, inclusive, of this article. This

section shall not apply to annuity contracts nor to any provision of

a life insurance policy relating to disability benefits or to

additional benefits in the event of death by accident or accidental

means.

B. Any of such provisions or portions thereof not applicable to

single premium or term policies shall to that extent not be

incorporated therein.
Okla. Stat. tit. 36, § 36-924.2 — OK Code / Title 36 / Section 36-924.2
Rating plans for workers' compensation self-insureds -
Status: in_force

Reduced premium charges for successful participation in occupational

safety and health programs - Qualification - Certificate - Records.

A. Any rate, schedule of rates or rating plan for workers'

compensation insurance submitted to or filed with the Insurance

Commissioner, or fixed by the Board of Directors of CompSource

Mutual Insurance Company, and premiums, by whatever name, for

workers' compensation for self-insureds except for group self-

insured associations shall provide for an appropriate reduction in

premium charges, by whatever name, for those eligible insured

employers who have successfully participated in the occupational

safety and health consultation, education and training program

administered by the Commissioner of the Department of Labor pursuant

to Section 414 of Title 40 of the Oklahoma Statutes.

B. All insurance companies writing workers' compensation

insurance in this state and all self-insureds providing workers'

compensation insurance except for group self-insured associations,

shall allow an appropriate reduction in premium charges to all

eligible employers who qualify for the reduction pursuant to the

provisions of this section.

C. Eligible employers shall be those employers:

1. Who are insured by an insurance company writing workers'

compensation insurance in this state; or

2. Who are self-insured.

D. In order to qualify for the reduction in workers'

compensation insurance premium, an employer shall successfully

participate annually in the occupational safety and health

consultation, education and training program administered by the

Department of Labor. Successful participation shall be defined as:

1. Undergoing a safety and health hazard survey of the

workplace, including an evaluation of the employer's safety and

health program and onsite interviews with employees by the

Department's consultant;

Oklahoma Statutes - Title 36. Insurance Page 207

2. Correcting all hazards identified during the onsite visit

within a reasonable period of time as established by the Department;

3. Establishing an effective workplace safety and health

program and implementing program provisions within a reasonable

period of time as established by the Department. The program shall

include:

a. demonstration of management commitment to worker

safety and health,

b. procedures for identifying and controlling workplace

hazards,

c. development and communication of safety plans, rules

and work procedures, and

d. training for supervisors and employees in safe and

healthful work practices;

4. Reducing by one-third (1/3) or more the extent to which the

lost workday case rate, as measured by the Department of Labor, was

above the national average for the industry at the time the employer

elected to participate in the occupational safety and health

consultation, education and training program, or maintaining a rate

at or below the national average for the industry; and

5. Documenting a reduction in workers' compensation claims for

the preceding year by showing one of the following:

a. a ten percent (10%) reduction in the dollar amount of

claims,

b. a ten percent (10%) reduction in the severity of

claims, or

c. no reported claims,

as a result of attending the occupational safety and health

consultation, education and training program administered by the

Department of Labor.

E. 1. Upon successful participation in the occupational safety

and health consultation, education and training program as defined

in subsection D of this section, an employer shall be issued a

certificate by the Commissioner of the Department of Labor which

shall be the basis of qualification for the reduction in workers'

compensation insurance premium, by whatever name. The certificate

shall qualify the employer for a premium reduction for a one-year

period.

2. Upon issuance of a certificate to an employer, the

Commissioner of the Department of Labor shall mail a copy of thesuccessful participation in occupational safety and health programs - Qualification - Certificate -

Oklahoma Statutes - Title 36. Insurance Page 5d a

certificate by the Commissioner of the Department of Labor which

shall be the basis of qualification for the reduction in workers'

compensation insurance premium, by whatever name. The certificate

shall qualify the employer for a premium reduction for a one-year

period.

2. Upon issuance of a certificate to an employer, the

Commissioner of the Department of Labor shall mail a copy of the

certificate to the employer's insurer. Any insurer required by this

section to allow an appropriate reduction in premium charges to a

qualified employer which willfully fails to allow such reduction

after receiving a copy of the certificate shall be subject, after

notice and hearing, to an administrative fine, imposed by the

Insurance Commissioner, which shall be not less than Ten Thousand

Dollars ($10,000.00) or three times the amount of the premium

Oklahoma Statutes - Title 36. Insurance Page 208

reduction, whichever is greater. The Insurance Commissioner shall

promulgate rules necessary to carry out the provisions of this

paragraph.

F. The Insurance Commissioner and the Administrator of the

Workers' Compensation Court shall maintain records documenting

reductions in workers' compensation insurance premiums granted

pursuant to this section and shall make an annual report of such

reductions to the President Pro Tempore of the Senate and the

Speaker of the House of Representatives by May 1 of each year.

Insurers shall report such premium reductions in their annual

statement.
Okla. Stat. tit. 36, § 36-4105 — OK Code / Title 36 / Section 36-4105
Group annuity contracts; standard provisions
Status: in_force

No group annuity contract shall be delivered or issued for

delivery in this state and no certificate shall be used in

connection therewith unless it contains in substance the provisions

set forth in Sections 4106 to 4110, inclusive, of this article, to

the extent that such provisions are applicable to such contract or

to such certificate, as the case may be, or provisions which are

more favorable to annuitants, or not less favorable to annuitants

and more favorable to the policyholders.
Okla. Stat. tit. 36, § 36-6942 — OK Code / Title 36 / Section 36-6942
Authorized control level event - Definition - Duties of
Status: in_force

Insurance Commissioner.

A. “Authorized Control Level Event” means any of the following

events:

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

organization that indicates that the health maintenance

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

its Mandatory Control Level RBC, but less than its Authorized

Control Level RBC;

2. The notification by the Commissioner to the health

maintenance organization of an adjusted RBC report that indicates an

Authorized Control Level Event as specified in paragraph 1 of this

subsection, provided the health maintenance organization does not

challenge the adjusted RBC report under Section 44 of this act;

3. If, pursuant to the provisions of Section 44 of this act,

the health maintenance organization challenges an adjusted RBC

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

notification by the Commissioner to the health maintenance

organization that the commissioner has, after a hearing, rejected

the health maintenance organization’s challenge;

4. The failure of the health maintenance organization to

respond, in a manner satisfactory to the Commissioner, to a

corrective order, provided the health maintenance organization has

not challenged the corrective order under Section 44 of this act; or

5. If the health maintenance organization has challenged a

corrective order under Section 44 of this act and the Commissioner

Oklahoma Statutes - Title 36. Insurance Page 1422

has, after a hearing, rejected the challenge or modified the

corrective order, the failure of the health maintenance organization

to respond, in a manner satisfactory to the Commissioner, to the

corrective order subsequent to rejection or modification by the

Commissioner.

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

respect to a health maintenance organization, the Commissioner

shall:

1. Take such actions as are required under Section 41 of this

act regarding a health maintenance organization with respect to

which a Regulatory Action Level Event has occurred; or

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

the policyholders and creditors of the health maintenance

organization and of the public, take such actions as are necessary

to cause the health maintenance organization to be placed under

regulatory control pursuant to the provisions of Articles 18 and 19

of the Insurance Code. In the event the Commissioner takes such

actions, the Authorized Control Level Event shall be deemed

sufficient grounds for the Commissioner to take action pursuant to

the provisions of Articles 18 and 19 of the Insurance Code, and the

Commissioner shall have the rights, powers and duties with respect

to the health maintenance organization as provided in Articles 18

and 19 of the Insurance Code.
Okla. Stat. tit. 36, § 36-6468 — OK Code / Title 36 / Section 36-6468
Workers' compensation group self-insurance associations
Status: in_force

exempted.

The provisions of this act shall not apply to workers'

compensation group self-insurance associations.
Okla. Stat. tit. 36, § 36-7105 — OK Code / Title 36 / Section 36-7105
Investment of trust funds - Income
Status: in_force

Accumulated trust funds held by the trustee of the Perpetual

Care Fund shall be invested in the manner provided in the Oklahoma

Trust Act, Sections 175.1 through 175.57 of Title 60 of the Oklahoma

Statutes, and any amendments thereto. The income derived therefrom

shall be returned to the cemeteries to be used by them only as

provided by the Perpetual Care Fund Act and in a manner consistent

with elections made pursuant to subsection E of Section 7103 of this

title.
Okla. Stat. tit. 36, § 36-3626 — OK Code / Title 36 / Section 36-3626
Payment discharges insurer
Status: in_force

Whenever the proceeds of or payments under a life or accident

and health insurance policy or annuity contract heretofore or

hereafter issued become payable in accordance with the terms of such

policy or contract, or the exercise of any right or privilege

thereunder, and the insurer makes payment thereof in accordance with

the terms of the policy or contract or in accordance with any

written assignment thereof, the person then designated in the policy

or contract or by such assignment as being entitled thereto shall be

entitled to receive such proceeds or payments and to give full

acquittance therefor, and such payments shall fully discharge the

insurer from all claims under the policy or contract unless, before

payment is made, the insurer has received at its home office written

notice by or on behalf of some other person that such other person

claims to be entitled to such payment or some interest in the policy

or contract.
Okla. Stat. tit. 36, § 36-6527 — OK Code / Title 36 / Section 36-6527
Marketing of health benefit plan coverage
Status: in_force

Oklahoma Statutes - Title 36. Insurance Page 1288

A. Each small employer carrier shall actively market health

benefit plan coverage to all eligible small employers in this state.

B. 1. Except as provided in paragraph 2 of this subsection, no

small employer carrier or agent shall, directly or indirectly,

engage in the following activities:

a. encouraging or directing small employers to refrain

from filing an application for coverage with the small

employer carrier because of the health status, claims

experience, industry, group size, occupation or

geographic location of the small employer, or

b. encouraging or directing small employers to seek

coverage from another carrier because of the health

status, claims experience, industry, group size,

occupation or geographic location of the small

employer.

2. The provisions of paragraph 1 of this subsection shall not

apply with respect to information provided by a small employer

carrier or agent to a small employer regarding the established

geographic service area or a restricted network provision of a small

employer carrier.

C. 1. Except as provided in paragraph 2 of this subsection, no

small employer carrier shall, directly or indirectly, enter into any

contract, agreement or arrangement with an agent that provides for

or results in the compensation paid to an agent for the sale of a

health benefit plan to be varied because of the health status,

claims experience, industry, group size, occupation or geographic

location of the small employer.

2. Paragraph 1 of this subsection shall not apply with respect

to a compensation arrangement that provides compensation to an agent

on the basis of percentage of premium, provided that the percentage

shall not vary because of the health status, claims experience,

industry, occupation or geographic area of the small employer.

3. A small employer carrier shall not implement, directly or

indirectly, agent commission schedules that vary the level of agent

commissions based on the size of the group or otherwise reduce

access to small employer health benefit plans.

4. Notwithstanding paragraph 3 of this subsection, a small

employer carrier may:

a. vary agent commission amounts or percentages based on

group size if the variation in the commission amounts

or percentages are inversely related to the size of

the group, or

b. vary agent commission amounts or percentages based on

the cumulative premium paid by a single small employer

over a specific period if the variation in the

commission amounts or percentages are inversely

Oklahoma Statutes - Title 36. Insurance Page 1289

related to the cumulative premium paid during the

period.

D. A small employer carrier shall provide reasonable

compensation, as provided under the plan of operation of the

program, to an agent, if any, for the sale of any health benefit

plan.

E. No small employer carrier may terminate, fail to renew or

limit its contract or agreement of representation with an agent for

any reason related to the health status, claims experience,

occupation, group size, or geographic location of the small

employers placed by the agent with the small employer carrier.

F. No small employer carrier or agent may induce or otherwise

encourage a small employer to separate or otherwise exclude an

employee from health coverage or benefits provided in connection

with the employee's employment.

G. Denial by a small employer carrier of an application for

coverage from a small employer shall be in writing and shall state

the reason or reasons for the denial. The reasons for denial shall

be limited to minimum participation requirements and minimum

contribution requirements.

H. The Insurance Commissioner may promulgate rules setting

forth additional standards to provide for the fair marketing and

broad availability of health benefit plans to small employers in

this state.

I. 1. A violation of this section by a small employer carrier

or an agent shall be an unfair trade practice under Article 12 of

this title.

2. If a small employer carrier enters into a contract,

agreement or other arrangement with a third-party administrator to

provide administrative, marketing or other services related to the

offering of health benefit plans to small employers in this state,

the third-party administrator shall be subject to this section as if

it were a small employer carrier.
Okla. Stat. tit. 36, § 36-2416 — OK Code / Title 36 / Section 36-2416
Appeals from orders, rulings, or acts of insurance
Status: in_force

commissioner.

Any association doing business in this state, under the

provisions of this article, which may be dissatisfied with any

notice, order, ruling or act of the Insurance Commissioner, may

appeal from the same pursuant to the provisions of Article 3 of this

Code.
Okla. Stat. tit. 36, § 36-2729.1 — OK Code / Title 36 / Section 36-2729.1
Foreign or alien society - Admission
Status: in_force

A. No foreign or alien society shall transact business in this

state without a license issued by the Insurance Commissioner. Any

society desiring admission to this state shall comply substantially

with the requirements and limitations of this act applicable to

domestic societies. Any such society may be licensed to transact

business in this state upon filing with the Commissioner:

1. A duly certified copy of its articles of incorporation;

2. A copy of its bylaws, certified by its secretary or

corresponding officer;

3. A power of attorney to the Commissioner as prescribed in

Section 35 of this act;

4. A statement of its business under oath of its president and

secretary or corresponding officers in a form prescribed by the

Commissioner, duly verified by an examination made by the

supervising insurance official of its home state or other state,

territory, province or country, satisfactory to the Insurance

Commissioner of this state;

5. Certification from the proper official of its home state,

territory, province or country that the society is legally

incorporated and licensed to transact business therein;

6. Copies of its certificate forms;

7. Such other information as the Commissioner may deem

necessary; and

8. Information showing that its assets are invested in

accordance with the provisions of this act.

B. Any foreign or alien society desiring admission to the state

shall have the qualifications required of domestic societies

organized under this article.
Okla. Stat. tit. 36, § 36-4210 — OK Code / Title 36 / Section 36-4210
Reinstatement
Status: in_force

There shall be a provision that unless the policy has been

surrendered for its cash surrender value or unless the paid-up term

insurance, if any, has expired, the policy will be reinstated at any

time within two (2) years from the date of premium default upon

written application therefor, the production of evidence of

insurability satisfactory to the insurer, the payment of all

premiums in arrears, and the payment or reinstatement of any other

indebtedness to the insurer upon the policy, all with interest at a

rate not exceeding six percent (6%) per annum compounded annually.
Okla. Stat. tit. 36, § 36-3646 — OK Code / Title 36 / Section 36-3646
Effect on existing laws
Status: in_force

Nothing in the Life, Accident and Health Insurance Policy

Language Simplification Act shall be construed to negate any law of

this state permitting the issuance of any policy form after it has

been on file for the time period specified by state law.
Okla. Stat. tit. 36, § 36-3621 — OK Code / Title 36 / Section 36-3621
Construction of policies
Status: in_force

Every insurance contract shall be construed according to the

entirety of its terms and conditions as set forth in the policy and

as amplified, extended, or modified by any rider, endorsement, or

application attached to and made a part of the policy.
Okla. Stat. tit. 36, § 36-6962 — OK Code / Title 36 / Section 36-6962
Compliance review
Status: in_force

A. The Attorney General shall review and approve retail

pharmacy network access for all pharmacy benefits managers (PBMs) to

ensure compliance with Section 6961 of this title.

B. A PBM, or an agent of a PBM, shall not:

1. Cause or knowingly permit the use of advertisement,

promotion, solicitation, representation, proposal or offer that is

untrue, deceptive or misleading;

2. Charge a pharmacist or pharmacy a fee related to the

adjudication of a claim including without limitation a fee for:

a. the submission of a claim,

b. enrollment or participation in a retail pharmacy

network, or

c. the development or management of claims processing

services or claims payment services related to

participation in a retail pharmacy network;

3. Reimburse a pharmacy or pharmacist in the state an amount

less than the amount that the PBM reimburses a pharmacy owned by or

under common ownership with a PBM for providing the same covered

services. The reimbursement amount paid to the pharmacy shall be

equal to the reimbursement amount calculated on a per-unit basis

using the same generic product identifier or generic code number

paid to the PBM-owned or PBM-affiliated pharmacy;

4. Deny a provider the opportunity to participate in any

pharmacy network at preferred participation status if the provider

Oklahoma Statutes - Title 36. Insurance Page 1434

is willing to accept the terms and conditions that the PBM has

established for other providers as a condition of preferred network

participation status;

5. Deny, limit or terminate a provider’s contract based on

employment status of any employee who has an active license to

dispense, despite probation status, with the State Board of

Pharmacy;

6. Retroactively deny or reduce reimbursement for a covered

service claim after returning a paid claim response as part of the

adjudication of the claim, unless:

a. the original claim was submitted fraudulently, or

b. to correct errors identified in an audit, so long as

the audit was conducted in compliance with Sections

356.2 and 356.3 of Title 59 of the Oklahoma Statutes;

7. Fail to make any payment due to a pharmacy or pharmacist for

covered services properly rendered in the event a PBM terminates a

provider from a pharmacy benefits manager network;

8. Conduct or practice spread pricing, as defined in Section

6960 of this title, in this state;

9. Charge a pharmacist or pharmacy a fee related to

participation in a retail pharmacy network including but not limited

to the following:

a. an application fee,

b. an enrollment or participation fee,

c. a credentialing or re-credentialing fee,

d. a change of ownership fee, or

e. a fee for the development or management of claims

processing services or claims payment services;

10. Discriminate, offer lower reimbursement, or impose any

separate terms upon a provider on the basis that a provider

participates in 340B drug pricing;

11. Require a provider to reverse, resubmit, or clarify a 340B

drug pricing claim after the initial adjudication unless these

actions are in the normal course of pharmacy business and not

related to 340B drug pricing;

12. Require a billing modifier to indicate that the drug or

claim is a 340B drug pricing claim, unless the drug or claim is

being billed to the Oklahoma Medicaid Program;

13. Modify a patient copayment on the basis that the provider

of the patient participates in 340B drug pricing;

14. Exclude a provider from a network on the basis that the

provider participates in 340B drug pricing;

15. Establish or set network adequacy requirements based on

340B drug pricing participation by a provider;

16. Prohibit a 340B entity or a pharmacy under contract with a

340B entity from participating in the network of the PBM on the

basis of participation in 340B drug pricing; or

Oklahoma Statutes - Title 36. Insurance Page 1435

17. Base the drug formulary or drug coverage decisions upon the

340B drug pricing status of a drug, including price or availability,

or whether a dispensing pharmacy participates in 340B drug pricing.

C. The prohibitions under this section shall apply to contracts

between pharmacy benefits managers and providers for participation

in retail pharmacy networks.

1. A PBM contract shall:

a. not restrict, directly or indirectly, any pharmacy

that dispenses a prescription drug from informing, or

penalize such pharmacy for informing, an individual of

any differential between the individual’s out-of-

pocket cost or coverage with respect to acquisition of

the drug and the amount an individual would pay to

purchase the drug directly,

b. ensure that any entity that provides pharmacy benefits

management services under a contract with any such

health plan or health insurance coverage does not,

with respect to such plan or coverage, restrict,

directly or indirectly, a pharmacy that dispenses a

prescription drug from informing, or penalize such

pharmacy for informing, a covered individual of any

differential between the individual’s out-of-pocket

cost under the plan or coverage with respect to

acquisition of the drug and the amount an individual

would pay for acquisition of the drug without using

any health plan or health insurance coverage, and

c. eliminate discriminatory contracting as it relates to:

(1) transferring the benefit of 340B drug pricing

savings from a 340B entity to another entity,

including without limitation pharmacy benefits

managers, private insurers, and managed care

organizations,

(2) offering a lower reimbursement rate for drugs

purchased under 340B drug pricing than for the

same drug not purchased under 340B drug pricing,

(3) refusal to cover drug purchases utilizing 340B

drug pricing,

(4) refusal to allow providers who utilize 340B drug

pricing to participate in networks, and

(5) charging more than fair market value or seeking

profit sharing in exchange for services involving

340B drug pricing.

2. A pharmacy benefits manager’s contract with a provider shall

not prohibit, restrict, or limit disclosure of information or

documents to the Attorney General, law enforcement or state and

federal governmental officials investigating or examining a

complaint or conducting a review of a pharmacy benefits manager’s

Oklahoma Statutes - Title 36. Insurance Page 1436

compliance with the requirements under the Patient’s Right to

Pharmacy Choice Act, the Pharmacy Audit Integrity Act, and Sections

357 through 360 of Title 59 of the Oklahoma Statutes.

D. A pharmacy benefits manager shall:

1. Establish and maintain an electronic claim inquiry

processing system using the National Council for Prescription Drug

Programs’ current standards to communicate information to pharmacies

submitting claim inquiries;

2. Fully disclose to insurers, self-funded employers, unions or

other PBM clients the existence of the respective aggregate

prescription drug discounts, rebates received from drug

manufacturers and pharmacy audit recoupments;

3. Provide the Attorney General, insurers, self-funded employer

plans and unions unrestricted audit rights of and access to the

respective PBM pharmaceutical manufacturer and provider contracts,

plan utilization data, plan pricing data, pharmacy utilization data

and pharmacy pricing data;

4. Maintain, for no less than three (3) years, documentation of

all network development activities including but not limited to

contract negotiations and any denials to providers to join networks.

This documentation shall be made available to the Attorney General

upon request;

5. Report to the Attorney General, on a quarterly basis for

each health insurer payor, on the following information:

a. the aggregate amount of rebates received by the PBM,

b. the aggregate amount of rebates distributed to the

appropriate health insurer payor,

c. the aggregate amount of rebates passed on to the

enrollees of each health insurer payor at the point of

sale that reduced the applicable deductible,

copayment, coinsure or other cost sharing amount of

the enrollee,

d. the individual and aggregate amount paid by the health

insurer payor to the PBM for pharmacy services

itemized by pharmacy, drug product and service

provided, and

e. the individual and aggregate amount a PBM paid a

provider for pharmacy services itemized by pharmacy,

drug product and service provided;

6. Make drug formulary and coverage decisions based on the

normal course of business of the PBM, not based upon the 340B drug

pricing status of a drug, including price or availability, or

whether a dispensing pharmacy participates in 340B drug pricing.

E. Nothing in the Patient’s Right to Pharmacy Choice Act shall

prohibit the Attorney General from requesting and obtaining detailed

data, including raw data, in response to the information provided by

a PBM in the quarterly reports required by this section. The

Oklahoma Statutes - Title 36. Insurance Page 1437

Attorney General may alter the frequency of the reports required by

this section at his or her sole discretion.

F. The Attorney General may promulgate rules to implement the

provisions of the Patient’s Right to Pharmacy Choice Act, the

Pharmacy Audit Integrity Act, and Sections 357 through 360 of Title

59 of the Oklahoma Statutes.
Okla. Stat. tit. 36, § 36-6952 — OK Code / Title 36 / Section 36-6952
Nonprofit health maintenance organizations
Status: in_force

A. Nonprofit charitable and benevolent health maintenance

organization corporations may hereafter be organized under the laws

of the State of Oklahoma for the purpose of establishing,

maintaining and operating a nonprofit health maintenance

organization by complying with the provisions of this act.

B. Existing Oklahoma-licensed domestic health maintenance

organizations may amend their corporate organizational documents to

become nonprofit health maintenance organization corporations

pursuant to the provisions of this act, which shall entitle them to

all rights, obligations and provisions of this act. Existing

Oklahoma-licensed domestic health maintenance organizations that

amend their corporate organizational documents to become nonprofit

health maintenance organization corporations shall continue to exist

without interruption in business, licenses, certifications or other

continuity.

C. The Oklahoma Insurance Commissioner may first approve the

amended Certificate of Incorporation and the amended Business Plan

of an existing Oklahoma-licensed domestic health maintenance

organization subject to Section 3 of this act.
Okla. Stat. tit. 36, § 36-1513 — OK Code / Title 36 / Section 36-1513
Valuation of real property - Improvements
Status: in_force

A. Real property acquired pursuant to a mortgage loan or

contract for sale shall not be valued at an amount greater than the

unpaid principal of the defaulted loan or contract at the date of

such acquisition, together with any taxes and expenses paid or

incurred in connection with such acquisition. In addition, the

company may make improvements to such property, provided however,

the cost of such improvements plus the acquisition costs and unpaid

principal of the defaulted loan or contract shall not exceed the

lesser of four percent (4%) of the admitted assets or surplus of the

company in regard to policyholders.

B. Other real property held by an insurer shall be valued at an

amount not to exceed the lower of current market value or cost plus

capitalized improvements less normal depreciation. In lieu of

Oklahoma Statutes - Title 36. Insurance Page 411

writing down investment real estate or taking part of the value as

nonadmitted when market value is less than book value, an insurer

may establish a reserve for specific properties as a liability. If

valuation is based on an appraisal more than three (3) years old,

the Insurance Commissioner may at his discretion call for and

require a new appraisal in order to determine fair value.

Real property held by an insurer prior to September 1, 1993,

shall be in compliance with the limitations of this section by

December 31, 1997. Insurers shall maintain accurate and adequate

records reflecting the provisions of this section and submit such

records with quarterly and annual statements.
Okla. Stat. tit. 36, § 36-362 — OK Code / Title 36 / Section 36-362
Fees – Transfer to Attorney General’s Insurance Fraud Unit
Status: in_force

Revolving Fund.

An annual fee of Seven Hundred Fifty Dollars ($750.00) shall be

paid to the Insurance Commissioner to be expended by the Insurance

Commissioner for the purposes of investigation of suspected

insurance fraud and civil or administrative action in cases

involving suspected insurance fraud. The following shall pay an

annual fee of Seven Hundred Fifty Dollars ($750.00) to the Insurance

Department which shall be payable quarterly in the amount of One

Hundred Eighty-seven Dollars and fifty cents ($187.50): Life,

accident and health insurers; property and casualty insurers; county

Oklahoma Statutes - Title 36. Insurance Page 113

mutual fire insurers; mutual benefit associations; fraternal benefit

societies; reciprocal insurers; motor service clubs; title insurers;

nonprofit insurers; health maintenance organizations (HMOs); service

warranty associations; surplus lines carriers; multiple employer

welfare arrangements (MEWAs); trusts which write surety policies;

prepaid dental plan organizations; and accredited reinsurers. The

payments shall be due on or before the last day of the month

following each calendar quarter. Beginning in the calendar year

2010, payment of the annual fee shall be made as one payment of

Seven Hundred Fifty Dollars ($750.00) which shall be paid on or

before July 1. Within sixty (60) days after each calendar quarter

in which monies are collected, the Commissioner shall transfer

twenty-five percent (25%) of all monies collected by the Insurance

Department pursuant to this section to the Attorney General’s

Insurance Fraud Unit Revolving Fund created in Section 19.3 of Title

74 of the Oklahoma Statutes, for use by the Attorney General in the

investigation and prosecution of insurance fraud.
Okla. Stat. tit. 36, § 36-1424.11 — OK Code / Title 36 / Section 36-1424.11
Renumbered as § 1435.20 of this title by Laws 2001, c
Status: in_force

156, § 35, eff. Nov. 1, 2001.
Okla. Stat. tit. 36, § 36-6032 — OK Code / Title 36 / Section 36-6032
Limitation on sales of equity securities of certain
Status: in_force

domestic life insurance companies.

A. Not more than forty-nine percent (49%) of the equity

securities of any insurer shall be sold to any person, firm,

corporation or trustee or nominee thereof where said insurer has

been organized within two (2) years preceding the acquisition of

such equity securities, unless the stock so sold or acquired shall

have been at a price not less than the highest market value of such

stock during two (2) years subsequent to incorporation or the

highest price at which such stock is offered to the public during

Oklahoma Statutes - Title 36. Insurance Page 1061

two (2) years subsequent to incorporation, whichever sum is the

greater. Should more than forty-nine percent (49%) of the equity

securities of any insurer be sold to any person, firm, corporation

or trustee or nominee thereof at a price less than the highest

market price or the highest price such stock is offered to the

public during the first two (2) years subsequent to incorporation,

such excess between the purchase price and such highest market or

highest offering price shall inure to and be recoverable by the

insurer, unless such equity security was acquired in good faith in

connection with a debt previously contracted, irrespective of any

intention on the part of such purchaser in entering into such

transaction.

B. Suit to recover such profit may be instituted at law or in

equity in any court of competent jurisdiction by the insurer or by

the owner of any equity security of the insurer in the name of and

in behalf of the insurer if the insurer shall fail or refuse to

bring suit within sixty (60) days after request or shall fail to

diligently prosecute the same thereafter. If no suit to recover the

difference between the purchase price and such highest market or

highest offered price is filed within six (6) months after the

realization of such profit or after the expiration of two (2) years

subsequent to the incorporation of the insurer, or if at any time

such suit is not diligently prosecuted, the Insurance Commissioner

may file or prosecute such suit for and on behalf of the insurer at

the expense of the insurer.

C. If the Insurance Commissioner shall find from substantial

evidence submitted that for the best interest of the policyholders

or creditors of an insurer the Commissioner should approve some plan

of merger, consolidation, rehabilitation or sale of such insurer but

is prevented or hindered from doing so because of the provisions of

this section, the Commissioner may order that said transaction be

exempt from the provisions of this section.
Okla. Stat. tit. 36, § 36-6917 — OK Code / Title 36 / Section 36-6917
Producer license - Exempted persons
Status: in_force

A. Health maintenance organization producers shall comply with

all applicable statutes and provisions of Title 36 of the Oklahoma

Statutes and rules relating to producer licensing, including the

Oklahoma Producer Licensing Act.

B. The following persons shall not be required to hold a health

maintenance organization producer license:

1. A regular salaried officer or employee of a health

maintenance organization who devotes substantially all of his or her

time to activities other than the taking or transmitting of

applications or membership fees or premiums for health maintenance

organization membership, or who receives no commission or other

compensation directly dependent upon the business obtained, and who

does not solicit or accept from the public applications for health

maintenance organization membership;

2. Employers or their officers or employees or the trustees of

an employee benefit plan to the extent that the employers, officers,

employees or trustees are engaged in the administration or operation

of a program of employee benefits involving the use of health

Oklahoma Statutes - Title 36. Insurance Page 1402

maintenance organization memberships; provided, that the employers,

officers, employees or trustees are not in any manner compensated

directly or indirectly by the health maintenance organization

issuing health maintenance organization memberships;

3. Banks or their officers and employees to the extent that the

banks, officers and employees collect and remit charges by charging

them against accounts of depositors on the orders of the depositors;

or

4. A person or the employee of a person who has contracted to

provide administrative, management or health care services to a

health maintenance organization and who is compensated for those

services by the payment of an amount calculated as a percentage of

the revenues, net income or profit of the health maintenance

organization, if that method of compensation is the sole basis for

subjecting that person or the employee of the person to this act.

C. The Insurance Commissioner may by rule exempt certain

classes of persons from the requirement of obtaining a license:

1. If the functions such persons perform do not require special

competence, trustworthiness or the regulatory surveillance made

possible by licensing; or

2. If other existing safeguards make regulation unnecessary.
Okla. Stat. tit. 36, § 36-5106 — OK Code / Title 36 / Section 36-5106
Duties of insurer
Status: in_force

A. An insurer shall not engage the services of any person,

firm, association or corporation to act as an RB on its behalf

unless such person is licensed as required by the Reinsurance

Intermediary Act.

B. An insurer shall not employ an individual who is employed by

an RB with which the insurer transacts business, unless such RB is

under common control with the insurer and subject to Article 16A of

the Insurance Code.

C. The insurer annually shall obtain a copy of statements of

the financial condition of each RB with which the insurer transacts

business.
Okla. Stat. tit. 36, § 36-6591 — OK Code / Title 36 / Section 36-6591
Short title - Declaration of necessity
Status: in_force

A. Sections 1 through 6 of this act shall be known and may be

cited as the "Managed Health Care Reform and Accountability Act".

B. The Legislature hereby declares that the public good and the

general welfare of the citizens of this state require the enactment

of this measure under the police power of the state as part of and

in furtherance of the regulation of the business of insurance.
Okla. Stat. tit. 36, § 36-6556 — OK Code / Title 36 / Section 36-6556
Health insurance plans - Certification or contract with certified private review agent -
Status: in_force

Oklahoma Statutes - Title 36. Insurance Page 36certified private review agent - Exceptions.

Every health insurance plan which proposes to administer a

health benefits program that provides for the coverage of hospital

and/or medical benefits and the utilization review of those benefits

shall:

1. Be certified in accordance with the Hospital and Medical

Services Utilization Review Act; or

2. Contract with a private review agent who is certified in

accordance with the Hospital and Medical Services Utilization Review

Act.

The provisions of this section shall not apply to insurance

companies and not-for-profit hospital services and medical indemnity

plans, licensed by the Commissioner to transact insurance in this

state, that perform in-house utilization review.
Okla. Stat. tit. 36, § 36-6149 — OK Code / Title 36 / Section 36-6149
Annual business report
Status: in_force

A. Each year on or before March 1, every prepaid dental plan

organization shallfile with the Commissioner a report of the

business activities of said organization for the preceding calendar

year. This report shall be signed by at least two principal

officers of the corporation and said signatures shall be notarized.

B. Said reports shall be on forms prescribed by the

Commissioner and shall include:

Oklahoma Statutes - Title 36. Insurance Page 1157

1. A financial statement of the organization, including a copy

of the balance sheet and receipts and disbursements of the

organization for the preceding year certified by an independent

certified public accountant. The Commissioner may accept a full

report of the most recent examination of a foreign prepaid dental

plan, certified to by the appropriate examining official of another

state; and

2. Any material changes in the information required to be

provided pursuant to Section 5 of this act; and

3. The number of persons who have become members during the

preceding year, the total number of members in the plan as of the

end of the year, and the number of memberships terminated during the

year; and

4. The costs of all care provided and the number of members who

received care pursuant to the provisions of the prepaid dental plan;

and

5. Such other information relating to the performance of the

prepaid dental plan organization the Commissioner deems necessary to

enable the Commissioner to carry out the duties prescribed by the

Prepaid Dental Plan Act.
Okla. Stat. tit. 36, § 36-2032 — OK Code / Title 36 / Section 36-2032
Detection and prevention of insurer insolvencies
Status: in_force

A. To aid in the detection and prevention of member insurer

insolvencies, it shall be the duty of the Insurance Commissioner:

1. To notify the commissioners of all of the other states,

territories of the United States and the District of Columbia within

thirty (30) days following the action taken or the date the action

occurs, when the Commissioner takes any of the following actions

against a member insurer:

a. revocation of license,

b. suspension of license, or

c. makes a formal order that the member insurer restrict

its premium writing, obtain additional contributions

to surplus, withdraw from the state, reinsure all or

any part of its business, or increase capital, surplus

or any other account for the security of policy

owners, contract owners, certificate owners or

creditors;

2. To report to the board of directors when the Commissioner

has taken any of the actions set forth in paragraph 1 of this

subsection or has received a report from any other commissioner of

other states indicating that any action has been taken in another

state. The report to the board of directors shall contain all

significant details of the action taken or the report received from

a commissioner from another state;

3. To report to the board when the Commissioner has reasonable

cause to believe from an examination, whether completed or in

process, of any member insurer that the insurer may be an impaired

or insolvent insurer;

4. To furnish to the board of directors the National

Association of Insurance Commissioners (NAIC) Insurance Regulatory

Information System (IRIS) ratios and listings of companies not

included in the ratios developed by the NAIC, and the board may use

the information contained therein in carrying out its duties and

responsibilities under this section. The report and the information

contained therein shall be kept confidential by the board of

directors until a time as made public by the Commissioner or other

lawful authority.

Oklahoma Statutes - Title 36. Insurance Page 618

B. The Commissioner may seek the advice and recommendations of

the board of directors of the Oklahoma Life and Health Insurance

Guaranty Association concerning any matter affecting the duties and

responsibilities of the Commissioner regarding the financial

condition of member insurers and health maintenance organizations

seeking admission to transact business in this state.

C. The board of directors may, upon majority vote, make reports

and recommendations to the Commissioner upon any matter germane to

the solvency, liquidation, rehabilitation or conservation of any

member insurer or germane to the solvency of any member insurer or

health maintenance organization seeking to do business in this

state. The reports and recommendations shall not be considered

public documents.

D. The board of directors may, upon majority vote, notify the

Commissioner of any information indicating a member insurer may be

an impaired or insolvent insurer.

E. The board of directors may, upon majority vote, make

recommendations to the Commissioner for the detection and prevention

of member insurer insolvencies.
Okla. Stat. tit. 36, § 36-4111 — OK Code / Title 36 / Section 36-4111
"Employee life insurance" defined
Status: in_force

"Employee life insurance" is that plan of life insurance, other

than salary savings life insurance or pension trust insurance and

annuities, under which individual policies are issued to the

employees of any employer and where such policies are issued on the

lives of not less than five employees at date of issue. Premiums

for such policies shall be paid by the employer or the trustee of a

fund established by the employer either wholly from the employer's

funds, or funds contributed by him, or partly from such funds and

partly from funds contributed by the insured employees, or from

funds contributed wholly by the insured employees.
Okla. Stat. tit. 36, § 36-6656 — OK Code / Title 36 / Section 36-6656
Vehicle protection product warranty requirements -
Status: in_force

Incidental costs.

A. Any vehicle protection product shall not be sold or offered

for sale in this state unless the warranty:

1. States, “The obligations of the warrantor to the warranty

holder are guaranteed under a warranty reimbursement insurance

policy”, if the warrantor elects to meet its financial

responsibility obligations under paragraph 1 of Section 6 of this

act, or states, “The obligations of the warrantor under this

Oklahoma Statutes - Title 36. Insurance Page 1334

warranty are backed by the full faith and credit of the warrantor”,

if the warrantor elects to meet its financial responsibility

obligations under paragraph 2 of Section 6 of this act;

2. States that in the event a warranty holder must make a claim

against a party other than the warranty reimbursement insurance

policy issuer, the warranty holder is entitled to make a direct

claim against the insurer upon the failure of the warrantor to pay

any claim or meet any obligation under the terms of the warranty

within sixty (60) days after proof of loss has been filed with the

warrantor, if the warrantor elects to meet its financial

responsibility obligations under paragraph 1 of Section 6 of this

act;

3. States the name and address of the issuer of the warranty

reimbursement insurance policy, and this information need not be

preprinted on the warranty form, but may be added to or stamped on

the warranty, if the warrantor elects to meet its financial

responsibility obligations under paragraph 1 of Section 6 of this

act;

4. Identifies the warrantor, the seller, and the warranty

holder;

5. Sets forth the total product purchase price and the terms

under which it is to be paid; however, the purchase price is not

required to be preprinted on the vehicle protection product warranty

and may be negotiated with the consumer at the time of sale;

6. Sets forth the procedure for making a claim, including a

telephone number;

7. Specifies the payments or performance to be provided under

the warranty including payments for incidental costs, the manner of

calculation or determination of payments or performance, and any

limitations, exceptions or exclusions;

8. Sets forth all of the obligations and duties of the warranty

holder, such as the duty to protect against any further damage to

the vehicle, the obligation to notify the warrantor in advance of

any repair, or other similar requirements, if any;

9. Sets forth any terms, restrictions, or conditions governing

transferability and cancellation of the warranty, if any; and

10. Contains a disclosure that reads substantially as follows:

“This agreement is a product warranty and is not insurance.”

B. Incidental costs may be reimbursed under the provisions of

the warranty in either a fixed amount specified in the warranty or

sales agreement or by the use of a formula itemizing specific

incidental costs incurred by the warranty holder.
Okla. Stat. tit. 36, § 36-4403.1 — OK Code / Title 36 / Section 36-4403.1
Definition of limited benefit insurance policy
Status: in_force

A. 1. "Limited benefit insurance" means a policy or contract

designed to be purchased individually or to supplement major medical

accident and health insurance and which only provides coverage that

is less than the minimum standard for benefits required under basic

hospital expense coverage or basic medical-surgical expense

coverage.

2. A limited benefit insurance policy or contract may specify a

waiting period for coverage, maximum benefits, maximum length of

coverage, and an exact definition of the disease covered.

B. Nothing in this section shall increase, limit, or remove

jurisdiction of the Insurance Commissioner over limited benefit

insurance.
Okla. Stat. tit. 36, § 36-1625 — OK Code / Title 36 / Section 36-1625
Time limits for disposal of other ineligible property and
Status: in_force

securities; penalty.

A. Any personal property or securities lawfully acquired by an

insurer, which it could not otherwise have invested in or loaned its

funds upon at the time of such acquisition, shall be disposed of

within three (3) years from date of acquisition, unless within such

period the security has attained to the standard of eligibility; the

failure to make such disposition shall result in the disallowance of

such property as an asset in any statement by an insurer to the

Insurance Commissioner, in any published financial statement or in

any examiner's report to said Commissioner; provided, however, that

any security or property acquired under any agreement of bulk

reinsurance, merger, or consolidation may be retained for a longer

period than such three (3) years if so provided in such plan for the

reinsurance, merger, or consolidation as was approved by the

Insurance Commissioner pursuant to this Code. The Insurance

Commissioner, upon application and proof that forced sale of any

such property or security would be against the best interests of the

insurer, may extend the disposal period for an additional reasonable

time.

B. Any real property acquired in satisfaction of debt by an

insurer, which the insurer could not otherwise have invested in or

loaned funds upon at the time of such acquisition, shall be disposed

of within three (3) years from the date of such acquisition. The

Insurance Commissioner, upon application and proof that forced sale

of any such property would be against the best interests of the

insurer, may extend the disposal period for an additional reasonable

time.

C. Any such real or personal property or security held by an

insurer after expiration of the period for disposal thereof or any

extension of such period granted by the Insurance Commissioner shall

not be allowed as an asset of the insurer.
Okla. Stat. tit. 36, § 36-4055.1 — OK Code / Title 36 / Section 36-4055.1
Short title
Status: in_force

Sections 1 through 17 of this act shall be known and may be

cited as the “Viatical Settlements Act of 2008”.
Okla. Stat. tit. 36, § 36-1643 — OK Code / Title 36 / Section 36-1643
Failure to file - Penalties - Unlawful transactions or
Status: in_force

investments - Willful violations - False statements.

A. Any insurer failing, without just cause, to file any

registration statement as required in this act shall be required,

after notice and hearing, to pay a penalty of Five Hundred Dollars

($500.00) for each day's delay, to be recovered by the Insurance

Commissioner and the penalty so recovered shall be paid as provided

in Section 307.5 of Title 36 of the Oklahoma Statutes. The maximum

penalty under this section is One Hundred Thousand Dollars

($100,000.00). The Commissioner may reduce the penalty if the

insurer demonstrates to the Commissioner that the imposition of the

penalty would constitute a financial hardship to the insurer.

B. Every director or officer of an insurance holding company

system who knowingly violates, participates in or assents to, or who

knowingly shall permit any of the officers or agents of the insurer

to engage in, transactions or make investments which have not been

properly reported or submitted pursuant to subsection A of Section 5

of this act, paragraph 2 of subsection A of Section 6 of this act or

subsection B of Section 6 of this act, or which violate this act,

shall pay, in their individual capacity, a civil forfeiture of not

more than Twenty-five Thousand Dollars ($25,000.00) per violation,

after notice and hearing before the Commissioner. In determining

the amount of the civil forfeiture, the Commissioner shall take into

account the appropriateness of the forfeiture with respect to the

gravity of the violation, the history of previous violations, and

such other matters as justice may require.

C. Whenever it appears to the Commissioner that any insurer

subject to this act or any director, officer, employee or agent

thereof has engaged in any transaction or entered into a contract

which is subject to Section 6 of this act and which would not have

been approved had the approval been requested, the Commissioner may

order the insurer to cease and desist immediately any further

activity under that transaction or contract. After notice and

hearing the Commissioner may also order the insurer to void any

contracts and restore the status quo if the action is in the best

interest of the policyholders, creditors or the public.

Oklahoma Statutes - Title 36. Insurance Page 490

D. Whenever it appears to the Commissioner that any insurer or

any director, officer, employee or agent thereof has committed a

willful violation of this act, the Commissioner may submit such

information to the district attorney for Oklahoma County for

appropriate action against the insurer or the responsible director,

officer, employee or agent thereof. Any insurer which willfully

violates this act may be fined not more than One Hundred Thousand

Dollars ($100,000.00). Any individual who willfully violates this

act shall, upon conviction, be guilty of a Class D3 felony offense

and shall be fined in his or her individual capacity not more than

Fifty Thousand Dollars ($50,000.00), or be imprisoned as provided

for in subsections B through F of Section 20P of Title 21 of the

Oklahoma Statutes, or both.

E. Any officer, director or employee of an insurance holding

company system who willfully and knowingly subscribes to or makes or

causes to be made any false statements or false reports or false

filings with the intent to deceive the Commissioner in the

performance of his or her duties under this act, upon conviction,

shall be guilty of a Class D1 felony offense and shall be imprisoned

as provided for in subsections B through F of Section 20N of Title

21 of the Oklahoma Statutes, or fined One Hundred Fifty Thousand

Dollars ($150,000.00), or both. Any fines imposed shall be paid by

the officer, director or employee in his or her individual capacity.

F. Whenever it appears to the Commissioner that any person has

committed a violation of Section 3 of this act which prevents theOklahoma Statutes - Title 36. Insurance Page 13s provided for in subsections B through F of Section 20N of Title

21 of the Oklahoma Statutes, or fined One Hundred Fifty Thousand

Dollars ($150,000.00), or both. Any fines imposed shall be paid by

the officer, director or employee in his or her individual capacity.

F. Whenever it appears to the Commissioner that any person has

committed a violation of Section 3 of this act which prevents the

full understanding of the enterprise risk to the insurer by

affiliates or by the insurance holding company system, the violation

may serve as an independent basis for disapproving dividends or

distributions and for placing the insurer under an order of

supervision in accordance with Article 18 of Title 36 of the

Oklahoma Statutes.
Okla. Stat. tit. 36, § 36-1221 — OK Code / Title 36 / Section 36-1221
Renumbered as § 1250.1 of this title by Laws 1994, c
Status: in_force

342, § 20, eff. Sept. 1, 1994.
Okla. Stat. tit. 36, § 36-2508 — OK Code / Title 36 / Section 36-2508
Personal liability
Status: in_force

No person shall incur any personal liability for the losses or

liabilities of any corporation, company or association transacting

business under the provisions of this article by reason of being a

member or policyholder in such corporation.
Okla. Stat. tit. 36, § 36-321 — OK Code / Title 36 / Section 36-321
Fees and licenses - Deposits
Status: in_force

A. The Insurance Commissioner shall collect in advance the

following fees:

1. For filing charter documents:

Original charter documents,

articles of incorporation, bylaws,

or record of organization of alien

or foreign insurers, or certified

2. Certificate of Authority or Certificate of Approval:

(a) Issuance:

(b) Renewal:

3. For filing appointment of Insurance

Commissioner as agent for service

4. Miscellaneous:

(b) Amended charter documents,

articles of incorporation or

bylaws of domestic, alien or

foreign insurers or health

(c) Certificate of Commissioner,

(d) For filing Merger and

Acquisition Forms (Domestic

(e) For filing Variable Product

(f) For filing a Life, Accident

and Health Policy and Health

Maintenance Organization

(g) For filing an advertisement or

rider application to a Life,

Accident and Health Policy and

Health Maintenance

(i) For filing a Viatical

Settlement Contract or Life

Oklahoma Statutes - Title 36. Insurance Page 106

(j) For filing an advertisement

for Viatical Settlement or

(k) For filing application for

Viatical Settlement or Life

B. There shall be assessed an annual fee of Five Hundred

Dollars ($500.00) payable by each insurer, health maintenance

organization, fraternal benefit society, hospital service and

medical indemnity corporation, or charitable and benevolent

corporation licensed to do business in this state, or United States

surplus lines insurance companies approved to do business in this

state, to pay for the filing, processing, and reviewing of financial

statements by personnel of the Office of the State Insurance

Commissioner.
Okla. Stat. tit. 36, § 36-1219.6 — OK Code / Title 36 / Section 36-1219.6
Methods of payments to providers – Prohibition on
Status: in_force

restricting methods – Notice of fees.

A. As used in this section:

1. “Health maintenance organization” means an entity that is

organized for the purpose of providing or arranging health care,

which has been granted a certificate of authority by the Insurance

Commissioner as a health maintenance organization pursuant to the

Health Maintenance Organization Act of 2003;

2. “Credit card payment” means a type of electronic funds

transfer in which a health insurance plan or health insurer or its

contracted vendor issues a single-use series of numbers associated

with the payment of health care services performed by a health care

provider and chargeable to a predetermined dollar amount, whereby

the health care provider is responsible for processing the payment

by a credit card terminal or Internet portal. Such term shall

include virtual or online credit card payments, whereby no physical

Oklahoma Statutes - Title 36. Insurance Page 300

credit card is presented to the health care provider and the single-

use credit card expires upon payment processing;

3. “Electronic funds transfer payment” means a payment by any

method of electronic funds transfer other than through the Automated

Clearing House Network (ACH), as codified in 45 C.F.R., Sections

162.1601 and 162.1602;

4. “Health care provider” means any physician, dentist,

pharmacist, optometrist, psychologist, registered optician, licensed

professional counselor, physical therapist, chiropractor, hospital

or other entity or person that is licensed or otherwise authorized

in this state to furnish health care services;

5. “Health care provider agent” means a person or entity that

contracts with a health care provider establishing an agency

relationship to process bills for services provided by the health

care provider under the terms and conditions of a contract between

the agent and health care provider. Such contracts may permit the

agent to submit bills, request reconsideration and receive

reimbursement;

6. “Health care services” means the examination or treatment of

persons for the prevention of illness or the correction or treatment

of any physical or mental condition resulting from illness, injury

or other human physical problem and includes, but is not limited to:

a. hospital services which include the general and usual

services and care, supplies and equipment furnished by

hospitals,

b. medical services which include the general and usual

services and care rendered and administered by doctors

of medicine, doctors of dental surgery and doctors of

podiatry, and

c. other health care services which include appliances

and supplies; nursing care by a registered nurse or a

licensed practical nurse; care furnished by such other

licensed practitioners; institutional services

including the general and usual care, services,

supplies and equipment furnished by health care

institutions and agencies or entities other than

hospitals; physiotherapy; ambulance services; drugs

and medications; therapeutic services and equipment

including oxygen and the rental of oxygen equipment;

hospital beds; iron lungs; orthopedic services and

appliances including wheelchairs, trusses, braces,

crutches and prosthetic devices including artificial

limbs and eyes; and any other appliance, supply or

service related to health care;

7. “Health insurance plan” means any hospital or medical

insurance policy or certificate; qualified higher deductible health

plan; health maintenance organization subscriber contract; contract

Oklahoma Statutes - Title 36. Insurance Page 301

providing benefits for dental care whether such contract is pursuant

to a medical insurance policy or certificate; stand-alone dental

plan, health maintenance provider contract or managed health care

plan; and

8. “Health insurer” means any entity or person that issues

health insurance plans, as defined in this section.

B. Any health insurance plan issued, amended or renewed on or

after January 1, 2020, between a health insurer or its contracted

vendor or a health maintenance organization and a health care

provider for the provision of health care services to a plan

enrollee shall not contain restrictions on methods of payment from

the health insurer or its vendor or the health maintenance

organization to the health care provider in which the only

acceptable payment method is a credit card payment.

C. If initiating or changing payments to a health care provider

using a credit card, a health insurance plan, health insurer or its

contracted vendor, or health maintenance organization shall:

1. Notify the health care provider of any fees associated with

a particular payment method; and

2. Advise the health care provider of the available methods of

payment and provide clear instructions on how to select a preferred

method of payment.

D. If initiating or changing payments to a health care provider

using electronic funds transfer payments, including virtual credit

card payments, a health insurance plan, health insurer or its

contracted vendor, or health maintenance organization shall:

1. Notify the health care provider of any fees that are

associated with a particular payment method; and

2. Advise the provider of the available methods of payment and

provide clear instructions to the health care provider as to how to

select an alternative payment method.

E. A health insurance plan, health insurer or its contracted

vendor, or health maintenance organization that initiates or changes

payments to a health care provider through the Automated Clearing

House Network, as codified in 45 C.F.R., Sections 162.1601 and

162.1602, shall not charge a fee solely to transmit the payment to a

health care provider unless the health care provider has consented

to the fee. A health care provider agent may charge reasonable fees

when transmitting an Automated Clearing House Network payment

related to transaction management, data management, portal services

and other value-added services in addition to the bank transmittal.

F. The provisions of this section shall not be waived by

contract, and any contractual clause in conflict with the provisions

of this section or that purport to waive any requirements of this

section are void.

G. Violations of this section shall be subject to enforcement

by the Insurance Commissioner.

Oklahoma Statutes - Title 36. Insurance Page 302
Okla. Stat. tit. 36, § 36-624.1 — OK Code / Title 36 / Section 36-624.1
Tax credit for taxes paid by domestic insurer in foreign
Status: in_force

state.

If, by the laws of any state other than this state, or by the

action of any public official of another state, any insurer or

company, as defined in Section 624 of this Code, organized or

domiciled in this state, shall be required to pay taxes for the

privilege of doing business in such other state, and such amounts

Oklahoma Statutes - Title 36. Insurance Page 141

are imposed or assessed so that the taxes which are or would be

imposed against Oklahoma domestic insurance companies are greater

than those taxes required of insurers organized or domiciled in such

other states, to the extent such amounts are legally due to such

other states, an insurer or company organized or domiciled in this

state may claim a credit against the tax payable pursuant to this

article for any calendar year prior to 1989 of a sum not to exceed

one hundred percent (100%) of such amount. Provided, for the tax

attributed to premiums collected prior to July 1, 1988, the credit

shall not be greater than the tax payable for such premiums; for the

tax attributed to premiums collected on or after July 1, 1988

through December 31, 1988, the credit authorized by this section and

the investment credit authorized by Section 625 of this title shall

not reduce the tax payable for such premiums to less than one

percent (1%).

Beginning with the taxes payable for calendar year 1989, the

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

by the credit provided for in this section.
Okla. Stat. tit. 36, § 36-6422 — OK Code / Title 36 / Section 36-6422
Participation in assessments and writings of Association
Status: in_force

Members of the Market Assistance Association, whether a

voluntary or statutory program, shall be required to participate in

all assessments and writings of the Association. Failure to

participate shall, after notice and opportunity for hearing before

the Insurance Commissioner, result in a censure, suspension or

revocation of certificate of authority or a civil penalty up to Five

Thousand Dollars ($5,000.00) for each occurrence or by both such

penalty and censure, suspension or revocation of certificate of

authority.
Okla. Stat. tit. 36, § 36-6103.8 — OK Code / Title 36 / Section 36-6103.8
Failure to pay penalty
Status: in_force

If a person fails to pay a penalty assessed under the provisions

of Sections 6103.1 through 6103.11 of this title, the Insurance

Commissioner may:

1. Institute in the district court of Oklahoma County a civil

suit to recover the civil penalty; or

2. Pursuant to the Administrative Procedures Act, cancel or

revoke any permit, license, certificate of authority, certificate of

registration or other authorization issued pursuant to the Oklahoma

Insurance Code.
Okla. Stat. tit. 36, § 36-6001.1 — OK Code / Title 36 / Section 36-6001.1
Conditions under which groups not considered
Status: in_force

fictitious.

A group or combination of persons or risks shall not be

considered a fictitious group if the conditions provided in this

section are met:

1. The group shall have been in existence for at least two (2)

years prior to the purchase of the intended group plan of insurance

or conclusive proof submitted to the Insurance Commissioner that

such group was not organized primarily for the purpose of purchasing

insurance;

Oklahoma Statutes - Title 36. Insurance Page 1058

2. The group shall have a highly reasonable degree of

homogeneity;

3. Eligible members of the group shall be persons in good

standing in the group. In the case of employees, such employees

should be engaged in active employment of the employer of the group

for not less than thirty (30) hours each week, or shall be on a

pension with that respective employer or be the surviving spouse of

a deceased pensioner;

4. Group underwriting standards shall be applied consistently

throughout the group;

5. Coverage shall be available to all eligible members and the

individual members of their family, who are members of their

immediate household; but no prospective employee or employee already

employed shall be required to participate as a condition of

employment;

6. The experience of other similar groups within the state and

insured by the same carrier shall not be combined for the purpose of

determining rates;

7. Policies issued to members of such groups shall provide no

more restrictive insuring agreements and conditions than those of

policies available to the individual purchaser from the same

insurer, and such groups shall be provided with the option to select

a policy with such limits of coverage as are available to individual

purchasers from the same insurer;

8. Any insurer offering such a group plan shall also be

required to provide insurance on an individual basis to the general

public of the state and shall not be permitted to enter in this

state an insurance company solely for the purpose of mass marketing

or grouping of auto insurance policies for any group;

9. The insurer shall be required to offer to a member a

conversion to a standard plan of insurance offered by the same

insurer to the general public of the state in which the group

operates in the event of separation of the member from the group

through termination of employment for any reason;

10. Individual policies of insurance shall be issued to each

member of the group and the premiums shall be paid to the insurer

periodically by the group or member, with or without payroll

deductions; and

11. With regard to automobile insurance, unless the insurance

for the entire group is canceled concurrently, no policy of

insurance issued to a member shall be canceled except as otherwise

provided by law.
Okla. Stat. tit. 36, § 36-2720.1 — OK Code / Title 36 / Section 36-2720.1
Nonforfeiture benefits - Cash surrender values -
Status: in_force

Certificate loans or other options.

A. For certificates issued prior to one (1) year after the

effective date of this act, the value of every paid-up nonforfeiture

benefit and the amount of any cash surrender value, loan or other

option granted shall comply with the provisions of law applicable

immediately prior to the effective date of this act.

B. For certificates issued on or after one (1) year from the

effective date of this act for which reserves are computed on the

Insurance Commissioner's 1941 Standard Ordinary Mortality Table, the

Commissioner's 1941 Standard Industrial Table, the Commissioner's

1958 Standard Ordinary Mortality Table, or the Commissioner's 1980

Standard Mortality Table, or any more recent table made applicable

to life insurers, every paid-up nonforfeiture benefit and the amount

of any cash surrender value, loan or other option granted shall not

be less than the corresponding amount ascertained in accordance with

Oklahoma Statutes - Title 36. Insurance Page 726

the laws of this state applicable to life insurers issuing policies

containing like benefits based upon such tables.
Okla. Stat. tit. 36, § 36-1101 — OK Code / Title 36 / Section 36-1101
Representation of unauthorized insurers prohibited
Status: in_force

A. No person in Oklahoma shall in any manner:

1. Represent or assist any nonadmitted insurer in the

soliciting, procuring, placing, or maintenance of any nonadmitted

insurance coverage upon or with relation to any subject of insurance

resident, located, or to be performed in Oklahoma without being a

surplus lines licensee or broker as defined in the Unauthorized

Insurers and Surplus Lines Insurance Act; or

2. Inspect or examine any risk or collect or receive any

premium on behalf of any nonadmitted insurer without being a surplus

lines broker or licensee as defined in the Unauthorized Insurers and

Surplus Lines Insurance Act.

Oklahoma Statutes - Title 36. Insurance Page 248

B. Any person transacting insurance or acting as a surplus

lines broker or licensee in violation of this section shall be

liable to the insured for the performance of any contract between

the insured and the insurer resulting from the transaction.

C. This section shall not apply as to reinsurance, to surplus

line insurance lawfully procured pursuant to the Unauthorized

Insurers and Surplus Lines Insurance Act, to transactions exempt

under Section 606 of this title (Authorization of Insurers and

General Qualifications), or to professional services of an adjuster

or attorney-at-law from time to time with respect to claims under

policies lawfully solicited, issued, and delivered outside of

Oklahoma.

D. The investigation and adjustment of any claim in this state

arising under an insurance contract issued by a nonadmitted insurer

shall not be deemed to constitute the transacting of the business of

insurance in this state.

E. Nonadmitted insurers shall contract with the trustees of any

fund which will insure residents in this state in a manner

consistent with the requirements, nature and scope of the

Unauthorized Insurers and Surplus Lines Insurance Act.
Okla. Stat. tit. 36, § 36-1435.27 — OK Code / Title 36 / Section 36-1435.27
Facsimile signature stamp as proof
Status: in_force

If an insurance producer or insurance producers choose to use a

facsimile signature stamp in their business, such stamp shall be

proof that the producer or producers have authorized the signing of

any documents relating to the business of insurance.
Okla. Stat. tit. 36, § 36-312A — OK Code / Title 36 / Section 36-312A
Enforcement and recording of penalties and fees
Status: in_force

Civil penalties and fees imposed by the Insurance Commissioner

pursuant to Oklahoma law may be enforced in the same manner in which

civil judgments may be enforced. All final orders of the Insurance

Commissioner imposing administrative charges, fees, civil penalties,

restitution or fines may be recorded in the office of the Clerk of

the District Court of Oklahoma County and, upon such recording, all

appropriate writs and process shall issue and shall be enforced by

the judges of said court upon application.
Okla. Stat. tit. 36, § 36-1220 — OK Code / Title 36 / Section 36-1220
Exclusive agents - Restrictions
Status: in_force

No insurance company, including any subsidiary of any such

company, may offer any insurance program in this state to exclusive

agents without offering the same insurance program through all of

its other authorized agents and brokers authorized for similar types

of insurance coverage.
Okla. Stat. tit. 36, § 36-5405 — OK Code / Title 36 / Section 36-5405
Construction of act — Severability
Status: in_force

A. Nothing in this section is to be construed or applied to be

less restrictive than federal law for a person or entity regulated

by this act.

B. Nothing in this act is to be construed or applied to be in

conflict with any of the following:

1. Applicable federal law and related regulations; or

2. Other laws of this state if the state law is compatible with

applicable federal law.

C. Limited distribution of a drug required under Section 355-1

of Title 21 of the United States Code is not to be construed as a

violation of this section.

D. If any provision of this act, an amendment made by this act,

or the application of such provision or amendment to any person or

circumstance is held to be unconstitutional, the remainder of this

act, the amendments made by this act, and the application of the

provisions of such to any person or circumstance shall not be

affected thereby.
Okla. Stat. tit. 36, § 36-3623.1 — OK Code / Title 36 / Section 36-3623.1
Fees - Definitions
Status: in_force

A. Nothing in this Code shall be construed to prevent an

insurer from charging and collecting in this state separate initial

membership fees, policy fees and any other fees as defined in

subsection C of this section in addition to premiums for insurance,

and such fees shall not be considered premium within the definition

of this Code, but shall be subject to premium tax as provided in

this Code. An insurer shall fully disclose all fees to its

customers.

Oklahoma Statutes - Title 36. Insurance Page 793

B. A minimum premium charge is considered premium within the

definition of this Code, and shall be subject to premium tax as

provided in this Code.

C. 1. Fees are defined as a flat amount added to the basic

premium rate to reflect the cost of establishing the required

records, sending premium notices and other related expenses and

include, but are not limited to, the following: Installment fees,

service charges, financing fees, membership fees, return check fees,

policy fees, motor vehicle record fees, inspection fees, late fees,

electronic transfer fees, credit score fees and expense load fees.

2. The fee passed on to the consumer must be the actual expense

incurred by the insurance company, insurance agency or insurance

producer.

D. Minimum premium charge is the smallest acceptable premium

for which an insurance company will write a policy. This minimum

charge is necessary to cover fixed expenses, other than those

expenses defined as fees above, in placing the policy on the books.

A minimum premium charge includes, but is not limited to, minimum

earned premium and minimum retained premium.

E. An insurance producer, limited lines producer, managing

general agent, or surplus lines insurance broker cannot charge a

duplicate fee or minimum premium charge.
Okla. Stat. tit. 36, § 36-6145 — OK Code / Title 36 / Section 36-6145
Issuance of certificate of authority - Conditions
Status: in_force

A. Issuance of a certificate of authority for a prepaid dental

plan organization shall be granted by the Commissioner if the

Commissioner is satisfied that the following conditions are met:

1. The persons responsible for conducting the business affairs

of the prepaid dental plan organization are competent and

trustworthy and are professionally capable of providing or arranging

for the provision of services offered; and

Oklahoma Statutes - Title 36. Insurance Page 1154

2. The prepaid dental plan organization constitutes an

appropriate mechanism to achieve an effective prepaid dental plan;

and

3. Each officer, responsible for conducting the business

affairs of the prepaid dental plan organization, has filed with the

Commissioner a fidelity bond in the amount of Fifty Thousand Dollars

($50,000.00), said bond to be subject to the approval of the

Commissioner; and

4. The financial structure of the prepaid dental plan

organization may reasonably be expected to meet obligations for

payment of services for members and prospective members. In making

this determination the Commissioner may consider:

a. the financial soundness of the arrangements made

pursuant to the provisions of the prepaid dental plan for services

and the schedule of charges used; and

b. any agreement with an insurer, a hospital, a

medical service corporation, or any other organization for ensuring

the payment of prepaid dental services; and

c. provisions in the plan for automatic coverage of

dental service if the prepaid dental plan is discontinued; and

d. the sufficiency of the agreement for prepaid

dental services with providers of dental services.

B. A certificate of authority shall expire at midnight on June

30, following the date of issuance or last renewal date. If the

prepaid dental plan organization remains in compliance with the

provisions of the Prepaid Dental Plan Act and pays a renewal fee of

One Hundred Dollars ($100.00), the certificate of authority of said

plan may be renewed. The renewal fee shall be deposited in the

Insurance Commissioner Revolving Fund.
Okla. Stat. tit. 36, § 36-6925 — OK Code / Title 36 / Section 36-6925
Administrative penalty in lieu of suspension or
Status: in_force

revocation of certificate - Suspected violation - Order to cease and

desist - Injunction.

A. The Insurance Commissioner may, in lieu of suspension or

revocation of a certificate of authority under the provisions of

Section 20 of this act, levy an administrative penalty against a

health maintenance organization who knowingly violates the

provisions of Section 20 of this act in an amount not to exceed Five

Thousand Dollars ($5,000.00) for each occurrence if reasonable

notice in writing is given of the intent to levy the penalty and the

health maintenance organization has a reasonable time within which

to remedy the defect in its operations that gave rise to the penalty

citation.

B. 1. If the Insurance Commissioner or the State Commissioner

of Health shall for any reason have cause to believe that a

violation of this act has occurred or is threatened, the Insurance

Commissioner may give notice to the health maintenance organization

and to the representatives, or other persons who appear to be

involved in the suspected violation, to arrange a conference with

the alleged violators or their authorized representatives for the

purpose of attempting to ascertain the facts relating to the

suspected violation; and, in the event it appears that a violation

has occurred or is threatened, to arrive at an adequate and

effective means of correcting or preventing the violation.

2. Proceedings under this subsection shall not be governed by

any formal procedural requirements, and may be conducted in such

manner as the Insurance Commissioner or the State Commissioner of

Health may deem appropriate under the circumstances; provided,

however, unless consented to by the health maintenance organization,

no order may result from a conference until the requirements of this

section of this act are satisfied.

C. 1. The Insurance Commissioner may issue an order directing

a health maintenance organization or a representative of a health

maintenance organization to cease and desist from engaging in an act

or practice in violation of the provisions of this act.

2. Within thirty (30) days after service of the cease and

desist order, the respondent may request a hearing on the question

of whether acts or practices in violation of this act have occurred.

The hearing shall be conducted pursuant to Administrative Procedures

Act and judicial review shall be available as provided by that act.

D. In the case of any violation of the provisions of this act,

if the Insurance Commissioner elects not to issue a cease and desist

order, or in the event of noncompliance with a cease and desist

order issued pursuant to the provisions of subsection C of this

section, the Insurance Commissioner may institute a proceeding to

obtain injunctive or other appropriate relief in the district court

of Oklahoma County.

Oklahoma Statutes - Title 36. Insurance Page 1409

E. Notwithstanding any other provisions of this act, if a

health maintenance organization fails to comply with the net worth

requirement of this act, the Insurance Commissioner is authorized to

take appropriate action to assure that the continued operation of

the health maintenance organization will not be hazardous to its

enrollees.
Okla. Stat. tit. 36, § 36-311.3 — OK Code / Title 36 / Section 36-311.3
Financial reports regarding real property
Status: in_force

In all financial reports of an insurer to the Insurance

Commissioner, real property acquired by the insurer shall be entered

as an asset on the basis of its original cost along with appropriate

adjustments, or the appraised market value where it is expressly

indicated that such amount is based on the appraised market value

and such appraisal has approval of the Insurance Commissioner.
Okla. Stat. tit. 36, § 36-2672 — OK Code / Title 36 / Section 36-2672
Application for certificate - Contents - Fee
Status: in_force

A dental service corporation may issue contracts to its

subscribers only when the Insurance Commissioner has, by certificate

of authority, authorized it to do so. Application for such

certificate of authority shall be made on forms supplied or approved

by the Commissioner, containing such information as he shall deem

necessary. Each application for such certificate of authority shall

Oklahoma Statutes - Title 36. Insurance Page 700

be accompanied by the fee prescribed by Article 3 of Title 36,

Oklahoma Statutes, and copies of the following documents:

1. Articles of Incorporation;

2. Bylaws;

3. Proposed contracts to be issued to subscribers;

4. Financial statement of the corporation, including the

amounts of contributions paid; and

5. A statement of the area in which the corporation proposes to

operate.
Okla. Stat. tit. 36, § 36-6060.13 — OK Code / Title 36 / Section 36-6060.13
Incremental impact on premium costs - Analysis and
Status: in_force

report by Commissioner.

A. The Insurance Commissioner shall analyze any direct

incremental impact on premium costs pursuant to the requirements of

Section 6060.11 of this title. The Commissioner shall submit a

report of all preliminary data and findings to the Governor, the

President Pro Tempore of the Senate and the Speaker of the House of

Representatives by May 1, 2000, with subsequent updates submitted by

November 1, 2000; May 1, 2001; November 1, 2001; May 1, 2002, and

November 1, 2002.

B. 1. The Commissioner shall submit a final report to the

Governor, the President Pro Tempore of the Senate and the Speaker of

the House of Representatives by December 1, 2002, which shall

include, but not be limited to, the collection and analysis of data

provided by health benefit plans including, but not limited to:

a. a determination of the average premium increase

directly attributable to providing benefits for

treatment of mental health and substance use disorders

Oklahoma Statutes - Title 36. Insurance Page 1111

pursuant to the provisions of Section 6060.11 of this

title by health benefit plans in this state incurred

during the first year of implementation of Section

6060.10 et seq. of this title, and any additional

premium increases incurred during the second and third

year of implementation,

b. information on the number of claims filed and the

total amount expended on those claims for benefits for

treatment of mental health and substance use

disorders,

c. information on the utilization of services listed in

subsection C of Section 6060.11 of this title, and

d. actuarial assumptions used in determining premium

costs for providing the required benefits.

2. The final report shall also include, to the extent possible,

an analysis of any other direct or indirect benefit of requiring

benefits for treatment of mental health and substance use disorders.

C. 1. All health benefit plans shall provide the data required

by this subsection in such form and at such time as the Commissioner

shall prescribe.

2. The Commissioner shall compile and report the data provided

by the health benefit plans in such a way as to keep individual plan

information confidential, unless the plan gives explicit permission

to release such identifiable information.

D. If the report required by subsection A of this section shows

that the cumulative average premium increase incurred during the

first three (3) years of implementation of Section 6060.10 et seq.

of this title that is directly attributable to the provision of

benefits for treatment of mental health and substance use disorders

is greater than six percent (6%), the requirements of Section 2 of

this act shall terminate May 1, 2003, and any agreement, contract or

policy issued after May 1, 2003, shall not be required to provide

benefits for treatment of mental health and substance use disorders.
Okla. Stat. tit. 36, § 36-124 — OK Code / Title 36 / Section 36-124
Incorporation of new measures into benefit plans
Status: in_force

Any measure enacted relating to a benefit plan shall be

incorporated into any benefit plan that is issued or renewed on or

after the effective date of the act unless specifically provided for

otherwise.
Okla. Stat. tit. 36, § 36-2126 — OK Code / Title 36 / Section 36-2126
Prohibited interests of officers, directors in certain
Status: in_force

transactions.

A. No director or officer of an insurer, organized under the

laws of this state, and no person who is directly or indirectly the

beneficial owner of more than ten percent (10%) of any class of

equity security of any such insurance company, shall receive, except

as permitted by this section, any money or valuable thing, either

directly or indirectly or through any substantial interest in any

other corporation, firm or business unit for negotiating, procuring,

recommending or aiding in any purchase, sale or exchange of property

or loan, made by any such company or any subsidiary thereof; nor

shall he be pecuniarily interested, either as principal,

coprincipal, agent or beneficiary, either directly or indirectly, or

through any substantial interest in any other corporation, firm or

business unit, in any such purchase, sale, exchange or loan; nor

shall such company make any loan to or guarantee the financial

obligation of any such director, officer or shareholder, either

directly or indirectly, or through its subsidiaries, nor shall any

such director, officer or shareholder accept any such loan or

guarantee either directly or indirectly.

B. 1. "Person", as used herein, shall mean an individual, a

corporation, a partnership, an association, a joint-stock company, a

business trust or an unincorporated organization; and

2. "Subsidiary", as used herein, shall mean any corporation in

which an insurance company owns fifty percent (50%) or more of any

class of equity securities of such corporation, or which is managed

by or is directly or indirectly controlled by or is subject to

control by an insurance company.

C. Nothing in this section shall be construed as prohibiting

the following:

1. Any such director, officer or shareholder from becoming a

policyholder of the insurance company and enjoying the usual rights

of a policyholder or from participating as beneficiary in any

pension plan, deferred compensation plan, profit-sharing or bonus

plan, stock option plan, or similar plan adopted by the insurance

company and to which he may be eligible under the terms of such

plan; or prohibit any such director, officer or shareholder from

receiving salaries, bonuses and other remuneration for services

rendered to the insurance company as an employee and not in

violation of other provisions of the Insurance Code;

Oklahoma Statutes - Title 36. Insurance Page 634

2. Professional services performed by such directors for duties

not placed by law upon a director and director's fees and expense

reimbursement for the performance of their duties as directors;

3. The approval and payment of lawful dividends to

policyholders and shareholders;

4. Any other arms-length transaction not forbidden by other

statutes between such directors, officers and shareholders and such

insurance company provided such transactions are approved prior to

the making thereof by the Commissioner;

5. Any transactions within an insurance holding company system

by insurers with their holding companies, subsidiaries or affiliates

that are not prohibited by law, that meet the test of being fair and

proper, and that are regulated by other statutes; or

6. Any transactions or arrangements not prohibited by law that

meet the test of being fair and proper.
Okla. Stat. tit. 36, § 36-6819 — OK Code / Title 36 / Section 36-6819
Qualifications for statistical agent
Status: in_force

To qualify as a statistical agent, an organization must

demonstrate at least five (5) years of experience in data

collection, data maintenance, data quality control, accounting and

other related areas.
Okla. Stat. tit. 36, § 36-2804 — OK Code / Title 36 / Section 36-2804
Made a body corporate
Status: in_force

Every such association shall be a body corporate for said

purposes, and may sue and be sued and be vested with legal rights

and powers in like manner as other corporations of this state.
Okla. Stat. tit. 36, § 36-603 — OK Code / Title 36 / Section 36-603
"Alien" insurer defined
Status: in_force

An "alien" insurer is one formed under the laws of a country

other than the United States.
Okla. Stat. tit. 36, § 36-1435.26 — OK Code / Title 36 / Section 36-1435.26
Unlawful acts and penalties
Status: in_force

A. It shall be unlawful for any person whose license to act as

an insurance producer, limited lines producer, managing general

Oklahoma Statutes - Title 36. Insurance Page 362

agent, or surplus lines insurance broker has been suspended,

revoked, surrendered, or refused to do or perform any of the acts of

an insurance producer, limited lines producer, managing general

agent, or surplus lines insurance broker. Any person convicted of

violating the provisions of this section shall be guilty of a Class

D1 felony offense and shall be punished by the imposition of a fine

of not more than Five Thousand Dollars ($5,000.00), or imprisonment

as provided for in subsections B through F of Section 20N of Title

21 of the Oklahoma Statutes, or be punished by both said fine and

imprisonment.

B. It shall be unlawful for any insurance producer, limited

lines producer, managing general agent, or surplus lines insurance

broker to assist, aid, or conspire with a person whose license as an

insurance producer, limited lines producer, managing general agent,

or surplus lines insurance broker, has been suspended, revoked,

surrendered, or refused to engage in any acts as an insurance

producer, limited lines producer, managing general agent, or surplus

lines insurance broker. Any person convicted of violating the

provisions of this section shall be guilty of a Class D1 felony

offense and shall be punished by the imposition of a fine of not

more than Five Thousand Dollars ($5,000.00), or imprisonment as

provided for in subsections B through F of Section 20N of Title 21

of the Oklahoma Statutes, or be punished by both said fine and

imprisonment.

C. Except for those persons exempt from licensure, it shall be

unlawful for any person to do or perform any of the acts of an

insurance producer, limited lines producer, managing general agent,

or surplus lines insurance broker without being duly licensed. Any

person convicted of violating the provisions of this section shall

be guilty of a misdemeanor and shall be punished by the imposition

of a fine of not more than Five Hundred Dollars ($500.00) or

imprisonment in the county jail for not less than six (6) months nor

more than one (1) year, or be punished by both said fine and

imprisonment.
Okla. Stat. tit. 36, § 36-1435.1 — OK Code / Title 36 / Section 36-1435.1
Short title - Application of act
Status: in_force

Oklahoma Statutes - Title 36. Insurance Page 330

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

Producer Licensing Act".

B. This act governs the qualifications and procedures for the

licensing of insurance producers. It simplifies and organizes

statutory language to improve efficiency, permits the use of new

technology, and reduces costs associated with issuing and renewing

insurance licenses.

C. This act does not apply to excess and surplus lines agents

and brokers licensed, except for Section 13 of this act and except

where specifically referenced in this act.
Okla. Stat. tit. 36, § 36-6982 — OK Code / Title 36 / Section 36-6982
Report of business activities — Annual filing
Status: in_force

A. On or before March 1 of each calendar year, every prepaid

vision plan organization offering coverage in this state shall file

with the Insurance Commissioner a report of the business activities

of the organization for the preceding calendar year. The report

shall contain a notarized signature of at least two principal

officers of the corporation or members of the entity.

B. A report submitted under this section shall be in the form

and manner prescribed by the Commissioner and shall include:

1. A financial statement of the organization, including a copy

of the balance sheet, receipts, and disbursements of the

organization for the subject year certified by an independent

certified public accountant. The Commissioner may accept a full

report of the most recent examination of a foreign prepaid vision

plan, certified to by the appropriate examining official of another

state;

2. Any material changes in the information required to be

provided pursuant to Section 6 of this act;

3. The number of persons who have enrolled in plans offered by

the organization during the preceding year, the total number of

enrollees of each plan as of the end of the year, and the number of

enrollments terminated during the year;

4. The costs of all care provided and the number of enrollees

who received care pursuant to the provisions of the prepaid vision

plan; and

Oklahoma Statutes - Title 36. Insurance Page 1457

5. Any other information relating to the performance of the

prepaid vision plan organization deemed necessary by the

Commissioner.
Okla. Stat. tit. 36, § 36-4106 — OK Code / Title 36 / Section 36-4106
Group annuity; grace period
Status: in_force

In group annuity contracts there shall be a provision that there

shall be a period of grace, either of thirty (30) days or of one (1)

month, within which any stipulated payment to be remitted by the

holder to the insurer, falling due after one (1) year from date of

Oklahoma Statutes - Title 36. Insurance Page 928

issue, may be made, subject, at the option of the insurer, to an

interest charge thereon at a rate to be specified in the contract,

which shall not exceed six percent (6%) per annum for the number of

days of grace elapsing before such payment.
Okla. Stat. tit. 36, § 36-4202 — OK Code / Title 36 / Section 36-4202
Industrial life insurance defined
Status: in_force

For the purposes of this article "Industrial Life Insurance"

shall mean that form of life insurance where the face amount of the

policy does not exceed One Thousand Dollars ($1,000.00); and either

1. Under which the premiums are payable weekly, or

2. Under which the premiums are payable monthly or oftener, but

less often than weekly; provided that in either case the words

"Industrial Policy" are printed on the face of the policy as part of

the descriptive matter thereof.
Okla. Stat. tit. 36, § 36-2517 — OK Code / Title 36 / Section 36-2517
Laws applicable
Status: in_force

A. The provisions of this article are applicable to limited

stock life, accident and health insurers only.

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

article, limited stock life, accident and health insurers shall be

subject to and governed by the other applicable provisions of this

code.

C. No limited stock, life, accident and health insurers shall

be authorized after the effective date of this act, nor shall the

Insurance Commissioner after said effective date issue a certificate

of authority for such limited stock, life, accident and health

insurance business.
Okla. Stat. tit. 36, § 36-311.2 — OK Code / Title 36 / Section 36-311.2
Reports on financial condition
Status: in_force

A. The Insurance Commissioner may request financial information

more frequently than quarterly if it appears an insurer is having

financial difficulty, if erratic changes are occurring in the

financial data of the company, if a considerable number of consumer

complaints have been received, or if one or more transactions have

occurred which appear to jeopardize the welfare of the

policyholders. The insurer also may be requested to furnish a plan

of action to improve its underwriting performance.

B. Any insurer upon request of the Commissioner shall furnish

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

the close of any calendar quarter, except the fourth quarter, on

blank forms prescribed by the Insurance Commissioner, a statement

which shall exhibit the financial condition of the company as of the

last date of the month immediately preceding reporting date. Such

reports for information purposes shall contain a complete listing of

all written commitments to loan, guaranties of loans, or contractual

obligations concerning loans or conditional liabilities to borrowers

or lenders made during the quarter reported. Such reports may

require the inclusion of an exhibit of the operating results of the

company for the three (3) months' period immediately preceding the

date for which the financial condition is shown. A completed blank

form prescribed by the Commissioner for said statement shall be

furnished by each insurer for each such reporting date. Such

Oklahoma Statutes - Title 36. Insurance Page 75

statements shall be subscribed and sworn to by the president and the

secretary and other proper officers of the company. Failure of any

insurer to execute and file such statements or exhibits as required

herein shall constitute cause, after notice and hearing, for

censure, suspension, or revocation of certificate of authority to

transact an insurance business in this state or a fine of not less

than One Hundred Dollars ($100.00) nor more than One Thousand

Dollars ($1,000.00) for each occurrence, or both censure,

suspension, or revocation, and fine. The Commissioner shall set

such cause for hearing and if he finds that the facts warrant, he

shall order said censure, suspension, or revocation of the

certificate of authority of the insurer found to be in default or

said fine, or both said censure, suspension, or revocation, and

fine. Willful violations, after notice and hearing, may subject the

insurer to both censure, suspension or revocation of certificate and

a fine of not less than One Hundred Dollars ($100.00) or not more

than Five Thousand Dollars ($5,000.00) for each violation. The

Insurance Commissioner may establish rules or regulations to carry

out the purposes of this section.
Okla. Stat. tit. 36, § 36-2130 — OK Code / Title 36 / Section 36-2130
Converting mutual insurer
Status: in_force

A. A domestic mutual insurer may become a domestic stock

insurer pursuant to such plan and procedure as is approved in

advance by the Insurance Commissioner.

B. The Commissioner shall not approve any such plan or

procedure unless:

Oklahoma Statutes - Title 36. Insurance Page 653

1. Equitable to the insurer's members;

2. Subject to approval by vote of not less than three-fourths

(3/4) of the insurer's current members voting thereon in person, by

proxy, or by mail at a meeting of members called for the purpose

pursuant to such notice and procedure as may be approved by the

Commissioner;

3. The equity of each policyholder in the insurer is

determinable under a fair formula approved by the Commissioner,

which such equity shall be based upon not less than the insurer's

entire surplus (after deducting contributed or borrowed surplus

funds) plus a reasonable present equity in its reserves and in all

nonadmitted assets;

4. The policyholders entitled to participate in the purchase of

stock or distribution of assets shall include all current

policyholders and all existing persons who had been a policyholder

of the insurer within three (3) years prior to the date such plan

was submitted to the Commissioner;

5. The plan gives to each policyholder of the insurer as

specified in paragraph 4 of this subsection, a preemptive right to

acquire his proportionate part of all of the proposed capital stock

of the insurer, within a designated reasonable period, and to apply

upon the purchase thereof the amount of his equity in the insurer as

determined under paragraph 3, above;

6. Shares are so offered to policyholders at a price not

greater than to be thereafter offered to others nor at more than

double the par value of such shares;

7. The plan provides for payment to each policyholder not

electing to apply his equity in the insurer for or upon the purchase

price of stock to which preemptively entitled, of cash in the amount

of not less than fifty percent (50%) of the amount of his equity not

so used for the purchase of stock, and which cash payment together

with stock so purchased, if any, shall constitute full payment and

discharge of the policyholder's equity as an owner of such mutual

insurer; and

8. The plan, when completed, would provide for the converted

insurer paid-in capital stock in an amount not less than the minimum

paid-in capital required of a domestic stock insurer transacting

like kinds of insurance, together with surplus funds in amount not

less than one-half (1/2) of such required capital.
Okla. Stat. tit. 36, § 36-4026 — OK Code / Title 36 / Section 36-4026
Policy settlements
Status: in_force

Any life insurer shall have the power to hold under agreement

the proceeds of any policy issued by it, upon such terms and

restrictions as to revocation by the policyholder and control by

beneficiaries, and with such exemptions from the claims of creditors

of beneficiaries other than the policyholder as set forth in the

Oklahoma Statutes - Title 36. Insurance Page 835

policy or as agreed to in writing by the insurer and the

policyholder. Upon maturity of a policy, in the event the

policyholder has made no such agreement, the insurer shall have the

power to hold the proceeds of the policy under an agreement with the

beneficiaries. The insurer shall not be required to segregate the

funds so held but may hold them as part of its general assets.
Okla. Stat. tit. 36, § 36-4016 — OK Code / Title 36 / Section 36-4016
Standard provisions required in annuity and pure
Status: in_force

endowment contracts.

A. No annuity or pure endowment contract, other than

reversionary annuities, survivorship annuities or group annuities

Oklahoma Statutes - Title 36. Insurance Page 831

and except as stated herein, shall be delivered or issued for

delivery in this state unless it contains in substance each of the

provisions specified in Sections 4017 to 4022, inclusive, of this

article. Any of such provisions not applicable to single premium

annuities or single premium pure endowment contracts shall not, to

that extent, be incorporated therein.

B. This section shall not apply to contracts for deferred

annuities included in, or upon the lives of beneficiaries under,

life insurance policies.
Okla. Stat. tit. 36, § 36-1213 — OK Code / Title 36 / Section 36-1213
Immunity from prosecution
Status: in_force

If any person shall ask to be excused from attending and

testifying or from producing any books, papers, records,

correspondence or other documents at any hearing on the ground that

Oklahoma Statutes - Title 36. Insurance Page 281

the testimony or evidence required of the person may tend to

incriminate the person or subject the person to a penalty or

forfeiture, and shall notwithstanding be directed to give such

testimony or produce such evidence, the person must nonetheless

comply with such direction, but shall not thereafter be prosecuted

or subjected to any criminal penalty of forfeiture for or on account

of any evidence which the person may testify or produce pursuant

thereto. No testimony so given or evidence produced shall be

received against the person upon any criminal action, investigation

or proceeding; provided, however, individuals so testifying shall

not be exempt from prosecution or punishment for any perjury

committed by them while so testifying and the testimony or evidence

so given or produced shall be admissible against them upon any

criminal action, investigation or proceeding concerning such

perjury, and such individuals shall not be exempt from the refusal,

revocation or suspension of any license, permission or authority

conferred, or to be conferred, pursuant to the insurance law of this

state.
Okla. Stat. tit. 36, § 36-7132 — OK Code / Title 36 / Section 36-7132
Execution, seizure, appropriation or application of
Status: in_force

certain funds prohibited.

In the absence of fraud, all funds held in a cemetery

merchandise contract shall not be subject to attachment, garnishment

or other legal process, or be seized, taken, appropriated or applied

to pay any debt or liability of the organization, purchaser or

beneficiary, by any legal or equitable process or by operation of

law.
Okla. Stat. tit. 36, § 36-1227 — OK Code / Title 36 / Section 36-1227
Renumbered as § 1250.3 of this title by Laws 1994, c
Status: in_force

342, § 20, eff. Sept. 1, 1994.
Okla. Stat. tit. 36, § 36-1912 — OK Code / Title 36 / Section 36-1912
Order of liquidation of alien insurers
Status: in_force

Oklahoma Statutes - Title 36. Insurance Page 537

An order to liquidate the business of a United States branch of

an alien insurer having trusteed assets in this state shall be in

the same terms as those prescribed for domestic insurers, save and

except only that the assets of the business of such United States

branch shall be the only assets included therein.
Okla. Stat. tit. 36, § 36-621 — OK Code / Title 36 / Section 36-621
Service of legal process on foreign or alien insurers
Status: in_force

A. Each authorized foreign or alien insurer shall appoint the

Insurance Commissioner as its agent to receive service of legal

process, other than a subpoena, issued against it in this state upon

any cause of action arising from its transaction of business in this

state. The appointment shall be irrevocable, shall bind any

successor and shall remain in effect as long as there is in force in

this state any contract made by the insurer or obligations arising

therefrom.

B. Service of such process against a foreign or alien insurer

shall be made only by service of process upon the Insurance

Commissioner. Service of process against a domestic insurer may be

made upon the insurer in the manner provided by laws applying to

business entities generally, or upon the insurer's attorney-in-fact

if a reciprocal insurer or a Lloyds association.

Oklahoma Statutes - Title 36. Insurance Page 137

C. Each such insurer at time of application for a certificate

of authority shall file with the Insurance Commissioner designation

of the name and address of the person to whom process against it

served upon the Insurance Commissioner is to be forwarded. The

insurer may change such designation by a new filing.
Okla. Stat. tit. 36, § 36-6470.16 — OK Code / Title 36 / Section 36-6470.16
Reinsurance on risks ceded by another insurer – Credit
Status: in_force

for reserves.

A captive insurance company may cede or assume reinsurance and

take credit for reserves, as authorized for domestic insurers by the

Oklahoma Insurance Code.
Okla. Stat. tit. 36, § 36-1909 — OK Code / Title 36 / Section 36-1909
Grounds for ancillary liquidation of foreign insurers
Status: in_force

The Insurance Commissioner may apply to the court for an order

appointing him as ancillary receiver of and directing him to

liquidate the business of a foreign insurer having assets, business,

or claims in this state upon the appointment in the domiciliary

state of such insurer of a receiver, liquidator, conservator,

rehabilitator or other officer by whatever name called for the

purpose of liquidating the business of such insurer.
Okla. Stat. tit. 36, § 36-2666 — OK Code / Title 36 / Section 36-2666
Limited liability
Status: in_force

A. The private property of the subscribers, agents, officers,

directors, members and employees of any corporation holding a

certificate of authority as provided by Section 2651 et seq. of this

title shallbe exempt from any of the debts, obligations and

liabilities of the corporation.

B. Unless the current annual statement of the corporation

discloses a surplus of Fifty Thousand Dollars ($50,000.00), such

corporation shall not contract for providing optometric service or

indemnity without a stated contingent liability of the participating

optometrists licensed in optometry in Oklahoma and who meet the

standards and rules of practice of the corporation, which shall

notbe less than one time nor more than ten times the annual cash

premium or dues expressed in the policy or contract.
Okla. Stat. tit. 36, § 36-612.1 — OK Code / Title 36 / Section 36-612.1
Kinds of insurance; requirements
Status: in_force

No insurer organized or authorized to write or issue

noncancelable or guaranteed renewable accident and health policies

in any state shall be, or continue to be, licensed to do business in

this state unless the insurer possesses and maintains a surplus as

regards policyholders in excess of Two Million Dollars

($2,000,000.00). Insurers licensed in this state on or before

November 1, 1984, may maintain no less than One Million Dollars

($1,000,000.00) surplus as regards policyholders.
Okla. Stat. tit. 36, § 36-6470.31 — OK Code / Title 36 / Section 36-6470.31
Participants in sponsored captive insurance company
Status: in_force

A. An association, a corporation, a limited liability company,

a partnership, a trust, or other business entity may be a

participant in a sponsored captive insurance company formed or

licensed pursuant to the Oklahoma Captive Insurance Company Act.

B. A sponsor may be a participant in a sponsored captive

insurance company.

C. A participant need not be an owner of the sponsored captive

insurance company or an affiliate of the company.

D. Unless otherwise approved by the Insurance Commissioner, a

participant may insure through a sponsored captive insurance company

Oklahoma Statutes - Title 36. Insurance Page 1233

only its own risks or the risks of its affiliates who are

participants.
Okla. Stat. tit. 36, § 36-2613 — OK Code / Title 36 / Section 36-2613
Relationship of physician and patient
Status: in_force

Nothing in this article shall be deemed to alter the

relationship of physician and patient. No such corporation shall in

any way influence the subscriber in his free choice of hospital or

physician, other than to limit its benefit to participating

hospitals and physicians. Nothing in this article shall be deemed

to abridge the right of any physician or hospital to decline

patients in accordance with the standards and practices of such

physician or hospital, and no such corporation shall be deemed to be

engaged in the corporate practice of medicine.
Okla. Stat. tit. 36, § 36-601 — OK Code / Title 36 / Section 36-601
"Domestic" insurer defined
Status: in_force

A "domestic" insurer is one formed under the laws of Oklahoma.
Okla. Stat. tit. 36, § 36-6414 — OK Code / Title 36 / Section 36-6414
Market Assistance Association - Powers and duties - Plan
Status: in_force

of operation - Insurer's financial liability - Termination of

membership.

A. The Association created pursuant to the Market Assistance

Association Act shall have the power on behalf of its members to:

1. Require members to issue policies of insurance to

applicants, subject to limitations specified in the plan of

operation required by the Market Assistance Association Act;

irregardless of the type of insurance coverage, the limits of

liability for homeowners' liability insurance, shall be governed by

the amounts specified in subsection A of Section 154 of Title 51 of

the Oklahoma Statutes; and

2. Call upon member insurers who have expertise or familiarity

with a particular line of homeowners' liability insurance to assist

in underwriting such insurance.

B. The Board after consultation with the Association, the

Insurance Commissioner and other affected entities, shall promulgate

a plan of operation consistent with the provisions of this section,

to become effective no later than ninety (90) days after the date of

the inception of the Association.

1. The plan of operation shall provide for economic, fair and

nondiscriminatory administration and for prompt and efficient

provision of insurance, and shall contain other provisions

including, but not limited to, the following:

a. preliminary assessment of all members for initial

expenses necessary to commence operations of the

Association,

b. establishment of necessary facilities,

c. management of the Association,

d. assessment of members, and assessment of policyholders

if a market assistance association for professionals

is declared, to defray losses and expenses,

e. establishment of committees as may be necessary to

facilitate the administration of the Association,

f. procedures providing that an insured shall have proof

that he or she has coverage that has been canceled or

nonrenewed by his or her current carrier and has

subsequently requested and been refused homeowners' or

homeowners' liability coverage from two insurers

licensed to do business in this state, or that his or

her premium has been increased by seventy-five percent

(75%) or more from the previous year, before

requesting insurance coverage from the Association,

Oklahoma Statutes - Title 36. Insurance Page 1187

g. appointment of members of the Association on a

rotating basis to provide homeowners' and homeowners'

liability insurance coverage based upon direct

premiums for homeowners' and homeowners' liability

insurance, written in the state in the preceding

calendar year,

h. procedures for determining amounts of insurance to be

provided by members of the Association, and

i. procedures for two or more member insurers to share an

insured risk if coverage for that risk is beyond the

ability for one insurer

2. The plan of operation shall provide that any balance

remaining in the funds of the Association at the close of its fiscal

year shall be added to the reserves of the Association and may be

used for expenses of the Association or any successor association.

3. Amendments to the plan of operation may be made by the

Board.

C. All insurers who are members of the Association shall

participate in the Association's writings, expenses, and losses in

the proportion that the net direct premiums of each such member

written during the preceding calendar year bears to the aggregate

net direct premiums written in this state by all members of the

Association. Each insurer's proportion of participation in the

Association shall be determined annually on the basis of such net

direct premiums written during the preceding calendar year, as

reported in the annual statements and other reports filed by the

insurer that may be required by the board of directors. No member

shall be obligated in any one (1) year to write liability insurance

business from the Association that would result in the member

insurer writing more than ten percent (10%) of its total annual

liability insurance, from all lines of liability insurance, from the

Association. Likewise, no member shall be obligated in any one (1)

year to write homeowners' insurance business from the Association

that would result in the member insurer writing more than ten

percent (10%) of its total annual homeowners' insurance, from the

Association.

D. An applicable insurer ceasing to be licensed or authorized

to transact insurance business pursuant to the Insurance Code shall

automatically cease to be a member of the Association effective at

12:01 a.m. on the day following the termination or expiration of its

certificate of authority and shall no longer be subject to the plan

of operation or requirements of the Association; provided, however,

such insurer shall remain liable for any annual assessments of the

Association based on expenses incurred by the Association while such

license or authority was in effect.
Okla. Stat. tit. 36, § 36-1209 — OK Code / Title 36 / Section 36-1209
Procedure as to unfair methods of competition and unfair
Status: in_force

or deceptive acts or practices which are not defined.

A. Whenever the Insurance Commissioner shall have reason to

believe that any person engaged in the business of insurance is

engaging in this state in any method of competition or in any act or

practice in the conduct of such business which is not defined in

Section 1204 of this title, that the method of competition is unfair

or that the act or practice is unfair or deceptive and that an

administrative proceeding in respect thereto would be to the

interest of the public, the Commissioner may issue and serve such

person a statement of the charges in that respect and a notice in

accordance with the Administrative Procedures Act. The Commissioner

shall, after a hearing or waiver of the right to a hearing, make a

report in writing stating findings as to the facts and serve a copy

thereof upon such person.

B. If such report charges a violation of this article and if

such method of competition, act or practice has not been

discontinued, the Commissioner may cause a petition to be filed in

the district court of Oklahoma County or the district court of this

state within the district wherein the person resides or has his or

her principal place of business, to enjoin and restrain such person

from engaging in such method, act or practice. The Commissioner may

request the Attorney General to appear in the name of the state by

relation of the Commissioner. The court shall have jurisdiction of

the proceeding and shall have power to make and enter appropriate

orders in connection therewith and to issue such writs as are

ancillary to its jurisdiction or are necessary in its judgment to

prevent injury to the public pendente lite.

C. A transcript of the proceedings before the Commissioner

including all evidence taken and the report and findings shall be

filed with such petition. If either party shall apply to the court

for leave to adduce additional evidence and shall show, to the

satisfaction of the court, that additional evidence is material and

there were reasonable grounds for the failure to adduce evidence in

the proceeding before the Commissioner, the court may order

additional evidence to be taken before the Commissioner and to be

adduced upon the hearing in such manner and upon such terms and

conditions as to the court may seem proper. The Commissioner may

modify findings of fact or make new findings by reason of the

additional evidence so taken, and he shall file such modified or new

findings with the return of such additional evidence.

Oklahoma Statutes - Title 36. Insurance Page 280

D. If the court finds that the method of competition complained

of is unfair or that the act or practice complained of is unfair or

deceptive, that the proceeding by the Commissioner with respect

thereto is to the interest of the public and that the findings of

the Commissioner are supported by the weight of the evidence, it

shall issue its order enjoining and restraining the continuance of

such method of competition, act or practice.
Okla. Stat. tit. 36, § 36-2667 — OK Code / Title 36 / Section 36-2667
Conflicting laws
Status: in_force

Nothing in this Act shall be construed to supersede the

provisions of Title 59, Oklahoma Statutes 1961, Sections 581 through

592, inclusive, 601 through 606, inclusive, and 941 through 947,

inclusive, or as the same may be hereafter amended. In the event of

the conflict of any of the provisions of this act with any of the

above-cited sections then such cited section shall take precedence

over this act and this act shall be construed accordingly.
Okla. Stat. tit. 36, § 36-1709 — OK Code / Title 36 / Section 36-1709
Deposit not subject to levy
Status: in_force

No judgment creditor or other claimant of an insurer shall levy

upon any deposit held pursuant to this Code, or upon any part

thereof; except, that such levy may be permitted if so specified in

the Insurance Commissioner's order requiring the deposit pursuant to

the retaliatory provision, Section 630 of Article 6 (Authorization

of Insurers and General Requirements).
Okla. Stat. tit. 36, § 36-4218 — OK Code / Title 36 / Section 36-4218
Prohibited provisions
Status: in_force

No policy of industrial insurance shall contain any of the

following provisions:

1. A provision by which the insurer may deny liability under

the policy for the reason that the insured has previously obtained

other insurance from the same insurer.

2. A provision giving the insurer the right to declare the

policy void because the insured has had any disease or ailment,

whether specified or not, or because the insured has received

institutional, hospital, medical or surgical treatment or attention,

except a provision which gives the insurer the right to declare the

policy void if the insured has, within two (2) years prior to the

issuance of the policy, received institutional, hospital, medical or

surgical treatment or attention and if the insured or claimant under

the policy fails to show that the condition occasioning such

treatment or attention was not of a serious nature or was not

material to the risk.

3. A provision giving the insurer the right to declare the

policy void because the insured has been rejected for insurance,

unless such right be conditioned upon a showing by the insurer that

knowledge of such rejection would have led to a refusal by the

insurer to make such contract.
Okla. Stat. tit. 36, § 36-4055.11 — OK Code / Title 36 / Section 36-4055.11
Fraudulent viatical settlement acts - Filing of
Status: in_force

advertising - "Free" insurance - Additional consideration - Emphasis

on settling policy prohibited.

A. With respect to any viatical settlement contract or

insurance policy, no viatical settlement broker knowingly shall

solicit an offer from, effectuate a viatical settlement with or make

a sale to any viatical settlement provider, viatical settlement

purchaser, financing entity or related provider trust that is

controlling, controlled by, or under common control with such

viatical settlement broker unless the relationship is disclosed to

the viator.

B. With respect to any viatical settlement contract or

insurance policy, no viatical settlement provider knowingly may

enter into a viatical settlement contract with a viator, if, in

connection with such viatical settlement contract, anything of value

will be paid to a viatical settlement broker that is controlling,

controlled by, or under common control with such viatical settlement

provider or the viatical settlement purchaser, financing entity or

related provider trust that is involved in such viatical settlement

contract unless the relationship is disclosed to the viator.

C. A violation of subsection A or B of this section shall be

deemed a fraudulent viatical settlement act.

D. No viatical settlement provider shall enter into a viatical

settlement contract unless the viatical settlement promotional,

advertising and marketing materials, as may be prescribed by

regulation, have been filed with the Insurance Commissioner. In no

event shall any marketing materials expressly reference that the

Oklahoma Statutes - Title 36. Insurance Page 893

insurance is “free” for any period of time. The inclusion of any

reference in the marketing materials that would cause a viator to

reasonably believe that the insurance is free for any period of time

shall be considered a violation of the Viatical Settlements Act of

2008.

E. No life insurance producer, insurance company, viatical

settlement broker, viatical settlement provider or viatical

settlement investment agent shall make any statement or

representation to the applicant or policyholder in connection with

the sale or financing of a life insurance policy to the effect that

the insurance is free or without cost to the policyholder for any

period of time unless provided in the policy.

F. No person providing premium financing shall receive any

proceeds, fees or other consideration from the policy or owner of

the policy that is in addition to the amounts required to pay

principal, interest, and any other reasonable costs or expenses in

type and amount incurred by the lender or borrower in connection

with the premium finance agreement, except for the event of a

default, unless either the default on the loan or transfer of the

policy in connection with the default occurs pursuant to an

agreement or understanding with any other person for the purpose of

evading regulation under this act. Any payments, charges, fees or

other amounts received by a person providing premium financing in

violation of this subsection shall be remitted to the original owner

of the policy or to the estate of the owner if the owner is deceased

at the time of the determination of the overpayment.

G. No person shall issue, solicit, market or otherwise promote

the purchase of an insurance policy for the purpose of, or with an

emphasis on, settling the policy.
Okla. Stat. tit. 36, § 36-1644 — OK Code / Title 36 / Section 36-1644
Violations threatening insolvency - Possession taken by
Status: in_force

Commissioner.

Whenever it appears to the Commissioner that any person has

committed a violation of this act which so impairs the financial

condition of a domestic insurer as to threaten insolvency or make

the further transaction of business by it hazardous to its

policyholders, creditors, shareholders or the public, then the

Commissioner may proceed as provided in Articles 18 and 19 of Title

36 of the Oklahoma Statutes to take possession of the property of

the domestic insurer and to conduct its business.
Okla. Stat. tit. 36, § 36-2731.1 — OK Code / Title 36 / Section 36-2731.1
Suspension, revocation or refusal of license of foreign
Status: in_force

or alien society.

A. When the Insurance Commissioner upon investigation finds

that a foreign or alien society transacting or applying to transact

business in this state:

1. Has exceeded its powers;

2. Has failed to comply with any of the provisions of this

article;

3. Is not fulfilling its contracts in good faith; or

4. Is conducting its business fraudulently or in a manner

hazardous to its members or creditors or the public;

the Insurance Commissioner shall notify the society of such

deficiency or deficiencies and state in writing the reasons for his

or her dissatisfaction. The Commissioner shall at once issue a

written notice to the society requiring that the deficiency or

deficiencies be corrected. After such notice, the society shall

have a thirty-day period in which to comply with the Commissioner's

request for correction. If the society fails to comply with the

request, the Commissioner shall notify the society of the

noncompliance and require the society to show cause on a date named

why its license should not be suspended, revoked or refused. If on

such date the society does not present good and sufficient reason

why its authority to do business in this state should not be

suspended, revoked or refused, the Commissioner may suspend or

refuse the license of the society to do business in this state until

satisfactory evidence is furnished to the Commissioner that such

suspension or refusal should be withdrawn, or the Commissioner may

revoke the authority of the society to do business in this state.

B. Nothing contained in this section shall be taken or

construed as preventing any such society from continuing in good

faith all contracts made in this state during the time such society

was legally authorized to transact business herein.
Okla. Stat. tit. 36, § 36-4401 — OK Code / Title 36 / Section 36-4401
Scope of article
Status: in_force

This article shall apply to all insurance companies, foreign and

domestic, including mutual benefit associations licensed pursuant to

Article 24, limited stock life, accident and health insurers

licensed pursuant to Article 25, reciprocal inter-insurance

exchanges licensed pursuant to Article 29, and Lloyd's insurers

licensed pursuant to Article 30, hereinafter referred to in this

Oklahoma Statutes - Title 36. Insurance Page 937

article as "the insurer" or "insurer," issuing policies of insurance

against loss or expense from sickness, or from bodily injury or

death by accident.
Okla. Stat. tit. 36, § 36-2691.14 — OK Code / Title 36 / Section 36-2691.14
Exemptions
Status: in_force

The provisions of this article shall govern and apply only to

nonprofit chiropractic service corporations. Such corporations

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

this state. Provided, that Articles 1, 3, 12, 17, 18, and Section

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

corporations to the extent that such provisions are not in conflict

with the provisions of this article.
Okla. Stat. tit. 36, § 36-1427.1 — OK Code / Title 36 / Section 36-1427.1
Renumbered as § 1435.31 of this title by Laws 2001, c
Status: in_force

156, § 35, eff. Nov. 1, 2001.
Okla. Stat. tit. 36, § 36-6672 — OK Code / Title 36 / Section 36-6672
Portable electronics insurance - Required brochure
Status: in_force

contents.

A. At every location where portable electronics insurance is

offered to customers, brochures or other written materials must be

made available to a prospective customer which:

1. Disclose that portable electronics insurance may provide a

duplication of coverage already provided by a customer's homeowner's

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

coverage;

2. State that the enrollment by the customer in a portable

electronics insurance program is not required in order to purchase

or lease portable electronics or services;

3. Summarize the material terms of the insurance coverage,

including:

a. the identity of the insurer,

b. the identity of the supervising entity,

c. the amount of any applicable deductible and how it is

to be paid,

d. benefits of the coverage, and

e. key terms and conditions of coverage such as whether

portable electronics may be repaired or replaced with

similar make and model reconditioned or non-original

manufacturer parts or equipment;

4. Summarize the process for filing a claim, including a

description of how to return portable electronics and the maximum

fee applicable in the event the enrolled customer fails to comply

with any equipment return requirements; and

5. State that the enrolled customer may cancel enrollment for

coverage under a portable electronics insurance policy at any time

and the person paying the premium shall receive a refund or credit

of any applicable unearned premium refund.

B. Portable electronics insurance may be offered on a month to

month or other periodic basis as a group or master commercial inland

marine policy issued to a vendor of portable electronics for its

enrolled customers.

Oklahoma Statutes - Title 36. Insurance Page 1340

C. Eligibility and underwriting standards for customers

electing to enroll in coverage shall be established for each

portable electronics insurance program.
Okla. Stat. tit. 36, § 36-3634.5 — OK Code / Title 36 / Section 36-3634.5
Synchronization of prescription drug refills
Status: in_force

A. A health benefit plan that provides benefits for

prescription drugs delivered, issued or renewed after November 1,

2017, shall provide for synchronization of prescription drug refills

on at least one occasion per insured per year, provided all of the

following conditions are met:

1. The prescription drugs are covered by the health benefit

plan's clinical coverage policy or have been approved by a formulary

exceptions process;

2. The prescription drugs are maintenance medications as

defined by the plan and have available refill quantities at the time

of synchronization;

3. The medications are not Schedule II, III or IV controlled

substances;

4. The insured meets all utilization management criteria to the

prescription drugs at the time of synchronization;

5. The prescription drugs are of a formulation that can be

safely split into short-fill periods to achieve synchronization;

Oklahoma Statutes - Title 36. Insurance Page 805

6. The prescription drugs do not have special handling or

sourcing needs as determined by the plan, contract, or agreement

that require a single, designated pharmacy to fill or refill the

prescription; and

7. The covered person agrees to the synchronization.

B. When necessary to permit synchronization, the health benefit

plan shall apply a prorated daily cost-sharing rate to any

medication dispensed by a network pharmacy pursuant to this section.

No dispensing fees shall be prorated, and all dispensing fees shall

be based on the number of prescriptions filled or refilled.

C. As used in this section, "synchronization" means the

coordination of medication refills for a patient taking two or more

medications for one or more chronic conditions such that the

patient's medications are refilled on the same schedule for a given

time period.
Okla. Stat. tit. 36, § 36-6057.3 — OK Code / Title 36 / Section 36-6057.3
Judicial review
Status: in_force

Any insurer or practitioner affected by an order of the

Insurance Commissioner issued pursuant to the Health Care Freedom of

Choice Act may seek judicial review of such order pursuant to

Article II of the Administrative Procedures Act.
Okla. Stat. tit. 36, § 36-1902 — OK Code / Title 36 / Section 36-1902
Delinquency proceedings – Jurisdiction – Arbitration –
Status: in_force

Venue - Appeal.

A. The district court is vested with exclusive original

jurisdiction of delinquency proceedings pursuant to the provisions

of this article, and is authorized to make all necessary and proper

orders to carry out the purposes of this article.

B. Except as to claims against the estate, nothing in this

article shall deprive a party in interest of any contractual right

to pursue arbitration of any dispute under any law. Where an

insurer subject to this article is a party to an arbitration

proceeding, the venue of such arbitration proceeding shall be in

Oklahoma County.

C. In addition to grounds otherwise provided by law, the

following persons are subject to the personal jurisdiction of the

district court:

1. Current and former agents and brokers of the insurer;

2. Policy holders and reinsurers of the insurer;

3. Current and former officers, directors, managers, trustees,

organizers, promoters, and any other persons in control of the

insurer; and

Oklahoma Statutes - Title 36. Insurance Page 532

4. Any third party administrator for an insurer and any person

that maintains information for an insurer.

D. Notwithstanding any other provision in this article, this

section shall not confer jurisdiction on the district court to

resolve coverage disputes between guaranty associations and those

asserting claims against an association resulting from the

initiation of a delinquency proceeding under this article except to

the extent that the guaranty association has otherwise expressly

consented to such jurisdiction pursuant to a plan of rehabilitation

or liquidation that resolves its obligations to covered

policyholders.

E. The determination of any dispute with respect to the

statutory obligations of any guaranty association by a court or

administrative agency or body with jurisdiction in the state of

domicile of the guaranty association shall be binding and conclusive

as to the parties in a delinquency proceeding initiated in the

district court, including, without limitation, the policyholders of

the insurer.

F. The venue of delinquency proceedings against any insurer

shall be in Oklahoma County.

G. No person other than the Insurance Commissioner, his

attorney, or the Attorney General representing the Insurance

Commissioner shall appear in the courts of this state requesting the

appointment of a receiver or otherwise commence delinquency

proceedings to take over, liquidate, rehabilitate, reorganize, or

conserve an insurer and no court shall entertain a petition for the

commencement of such proceedings unless the same has been filed in

the name of the state on the relation of the Insurance Commissioner.

H. An appeal shall lie to the Supreme Court from an order

granting or refusing rehabilitation, liquidation, or conservation,

and from every other order in delinquency proceedings having the

character of a final order as to the particular portion of the

proceedings embraced therein.
Okla. Stat. tit. 36, § 36-983 — OK Code / Title 36 / Section 36-983
Scope of act
Status: in_force

The Property and Casualty Competitive Loss Cost Rating Act

applies to all forms of property and casualty insurance written in

this state by insurers licensed in this state. The Property and

Casualty Competitive Loss Cost Rating Act shall not apply to:

1. Reinsurance;

2. Life insurance;

3. Accident and health insurance;

4. Insurance of vessels or craft, their cargoes, marine

builders' risks, marine protection and indemnity, or other risks

commonly insured under marine, excluding inland marine, insurance as

determined by the Commissioner; and

5. Title insurance.
Okla. Stat. tit. 36, § 36-1924.1 — OK Code / Title 36 / Section 36-1924.1
Limitation on actions
Status: in_force

A. If applicable statutory or common law, an order, or an

agreement fixes, defines, extends or tolls a period within which the

insurer may commence an action, and this period has not expired

before the date of the filing of the initial petition in a

delinquency proceeding as defined in Section 1901 of Title 36 of the

Oklahoma Statutes, the receiver shall not by reason thereof be

Oklahoma Statutes - Title 36. Insurance Page 548

barred from commencing such an action if the receiver does so on or

before the later of:

1. The end of the period, including any suspension of the

period occurring on or after the filing of the initial petition in a

delinquency proceeding; or

2. Four (4) years after the entry of the order commencing a

delinquency proceeding or entry of a subsequent order granting a

different form of relief in a delinquency proceeding.

B. Except as provided in subsection A of this section, if

applicable law, an order or an agreement fixes, defines, extends or

tolls a period within which the insurer may file any pleading,

demand, notice, or proof of claim or loss, or cure a default in a

case or proceeding, or perform any other similar act, and the period

has not expired before the date of the filing of the initial

petition in a delinquency proceeding, the receiver shall not by

reason thereof be barred from filing, curing or performing, as the

case may be, if the receiver does so on or before the later of:

1. The end of the period, including any suspension of the

period occurring on or after the filing of the initial petition in a

delinquency proceeding; or

2. One hundred eighty (180) days after the entry of the order

granting the initial petition in the delinquency proceeding, or

within such further extension thereof granted by the court which is

shown to the satisfaction of the court not to be unfairly

prejudicial to the other party.

C. If applicable law, an order or an agreement fixes, defines,

extends or tolls a period for commencing or continuing a civil

action in a court other than the receivership court on a claim

against the insurer, and the period has not expired before the date

of the filing of the initial petition in a delinquency proceeding,

then the period does not expire until the later of:

1. The end of the period, including any suspension of the

period occurring on or after the filing of the initial petition in a

delinquency proceeding; or

2. Thirty (30) days after termination or expiration of a court

ordered stay with respect to the claim.

D. An allegation by the receiver of improper or fraudulent

conduct against any person shall not be the basis of a defense to

the enforcement of a contractual obligation owed to the insurer by a

third party, but the third party is not barred by this section from

seeking to establish independently as a defense that the conduct was

materially and substantially related to the contractual obligation

for which enforcement is sought.

E. No prior wrongful or negligent actions of any present or

former officer, manager, director, trustee, owner, employee or agent

of the insurer may be asserted as a defense to a claim by the

receiver under a theory of estoppel, comparative fault, intervening

Oklahoma Statutes - Title 36. Insurance Page 549

cause, proximate cause, reliance, mitigation of damages or

otherwise; except that the affirmative defense of fraud in the

inducement may be asserted against the receiver in a claim based on

a contract and a principal under a surety bond or a surety

undertaking shall be entitled to credit against any reimbursement

obligation to the receiver for the value of any property pledged to

secure the reimbursement obligation to the extent that the receiver

has possession or control of the property or the insurer or its

agents misappropriated such property. Evidence of fraud in the

inducement will be admissible only if it is contained in the records

of the insurer.

F. No action or inaction by the insurance regulatory

authorities may be asserted as a defense to a claim by the receiver.

G. A judgment or order entered against an insured or the

insurer in contravention of any stay or injunction under the Uniform

Insurers Liquidation Act, or at any time by default or collusion,

shall not be considered as evidence of liability or of the quantum

of damages in adjudicating claims filed in the estate arising out of

the subject matter of the judgment or order.

H. The provisions of subsection G of this section do not apply

to guaranty associations’ claims for amounts paid on settlements and

judgments in pursuit of their statutory obligations.
Okla. Stat. tit. 36, § 36-4107 — OK Code / Title 36 / Section 36-4107
Group annuity; entire contract
Status: in_force

In group annuity contracts there shall be a provision specifying

the document or documents which shall constitute the entire contract

between parties. The document or documents so specified shall be

only (a) the contract, (b) the contract together with the

application of the holder of which a copy is attached thereto, or

(c) the contract together with the application of the holder of

which a copy is attached thereto, and the individual applications of

annuitants on file with the insurer and referred to therein.
Okla. Stat. tit. 36, § 36-4206 — OK Code / Title 36 / Section 36-4206
Incontestability
Status: in_force

There shall be a provision that the policy (exclusive of

provisions relating to disability benefits or to additional benefits

in the event of death by accident or accidental means) shall be

incontestable, except for nonpayment of premiums, after it has been

in force during the lifetime of the insured for a period of two (2)

years from its date of issue.
Okla. Stat. tit. 36, § 36-6466 — OK Code / Title 36 / Section 36-6466
Rules
Status: in_force

The Commissioner may establish and from time to time amend such

rules relating to risk retention groups and purchasing groups as may

be necessary or desirable to implement the provisions of the

Oklahoma Risk Retention Act.
Okla. Stat. tit. 36, § 36-6209 — OK Code / Title 36 / Section 36-6209
Scope of examination - Classes of insurance - Study
Status: in_force

manual.

A. Each examination for a license as an adjuster shall be

prescribed by the Commissioner and shall be of sufficient scope to

reasonably test the knowledge of the applicant as to the kinds of

insurance contracts which may be dealt with in accordance with the

license applied for, the duties and responsibilities of insurers

pursuant to said contracts and pursuant to the laws of this state

applicable to the adjusting claims of losses in accordance with the

license applied for.

B. An applicant for a license as an adjuster may qualify in any

one of the following classes of insurance or combinations thereof,

and the license when issued may be limited to cover adjusting in any

one of the following classes of insurance or combinations thereof.

The application for a license shall specify which of the following

classes of business the application and license are to cover:

1. Property, including but not limited to marine, inland

marine, aircraft and damages to all land motor vehicles and trailers

whether or not covered by first party physical damage coverages or

property damage liability coverages; or

2. Casualty, meaning all lines of liability insurance coverages

for bodily injuries, personal injury, and property damages; or

3. Workers’ compensation; or

4. Crime and fidelity bonds; or

5. Crop/hail; or

6. Multi-peril crop.

Oklahoma Statutes - Title 36. Insurance Page 1168

C. The Commissioner shall prepare and make available to

applicants a manual of instructions stating in general terms the

subjects which may be covered in any examination for a license as an

adjuster. The Commissioner may charge a reasonable amount not to

exceed Forty Dollars ($40.00) for the study manual.
Okla. Stat. tit. 36, § 36-607 — OK Code / Title 36 / Section 36-607
General qualifications to transact insurance
Status: in_force

A. To qualify for and hold authority to transact insurance in

Oklahoma an insurer must be otherwise in compliance with the

provisions of the Oklahoma Insurance Code and with its charter

powers, and must be an incorporated stock insurer, an incorporated

mutual insurer, a mutual benefit association, a nonprofit hospital

service and medical indemnity corporation, a farmers mutual fire

insurance association, a Lloyd's association or a reciprocal

insurer, of the same general type as may be formed as a domestic

insurer under this Code; except, that no foreign or alien insurer

shall be authorized to transact insurance in Oklahoma which does not

maintain reserves as required by Article 15 of this Code applicable

to the kind or kinds of insurance transacted by such insurer.

B. No certificate of authority or license to transact any kind

of direct insurance business in this state shall be issued, renewed

or continued in effect, to any domestic, foreign or alien insurance

company or other insurance entity which is owned or financially

controlled in whole or in part by another state of the United

States, or by a foreign government, or by any political subdivision

of either, or which is an agency of any such state, government or

subdivision.

C. A domestic, foreign, or alien insurance company, or entity

thereof which is owned or financially controlled in whole or in part

by another state of the United States, a foreign government, or any

political subdivision thereof, or which is an agency of any such

state, government, or subdivision may apply only for a certificate

of authority as a reinsurer. Such insurance company or entity shall

establish and maintain a regional home office in this state, in a

building owned or leased by the insurer, that employs Oklahoma

employees as defined pursuant to Section 625.1 of this title.

Insurance companies or entities obtaining a certificate of authority

under this subsection shall maintain security deposits pursuant to

this Code in a bank as defined pursuant to Section 102 of Title 6 of

the Oklahoma Statutes.

D. Any insurance company or other insurance entity which is

owned or financially controlled in whole or in part by any federally

Oklahoma Statutes - Title 36. Insurance Page 125

recognized American Indian tribe or nation may apply for a

certificate of authority or license to transact insurance business

in this state and will not be subject to subsection B of this

section.

E. Insurers under the jurisdiction of the Insurance

Commissioner shall keep any contact information deemed necessary by

the Commissioner on file with the Insurance Department. Contact

information shall be kept current and submitted electronically in

the manner and form prescribed by the Commissioner, along with any

applicable fees. Any change in contact information shall be

submitted within twenty (20) days of the change.
Okla. Stat. tit. 36, § 36-2732.1 — OK Code / Title 36 / Section 36-2732.1
Injunction - Authority to petition for
Status: in_force

No application or petition for injunction against any domestic,

foreign or alien society, or lodge thereof, shall be recognized in

any court of this state unless made by the Attorney General upon

request of the Insurance Commissioner.
Okla. Stat. tit. 36, § 36-1539 — OK Code / Title 36 / Section 36-1539
Third-party consultants to assist the Commissioner in
Status: in_force

reviewing documents.

Oklahoma Statutes - Title 36. Insurance Page 427

A. The Insurance Commissioner may retain, at the insurer's

expense, third-party consultants, including attorneys, actuaries,

accountants and other experts not otherwise a part of the

Commissioner's staff as may be reasonably necessary to assist the

Commissioner in reviewing the Corporate Governance Annual Disclosure

(CGAD) and related information or the insurer's compliance with this

act.

B. Any persons retained under subsection A of this section

shall be under the direction and control of the Commissioner and

shall act in a purely advisory capacity.

C. The National Association of Insurance Commissioners (NAIC)

and third-party consultants shall be subject to the same

confidentiality standards and requirements as the Commissioner.

D. As part of the retention process, a third-party consultant

shall verify to the Commissioner, with notice to the insurer, that

it is free of a conflict of interest and that it has internal

procedures in place to monitor compliance with a conflict and to

comply with the confidentiality standards and requirements of this

act.

E. A written agreement with the NAIC and/or a third-party

consultant governing sharing and use of information provided

pursuant to this act shall contain the following provisions and

expressly require the written consent of the insurer prior to making

public information provided under this act:

1. Specific procedures and protocols for maintaining the

confidentiality and security of CGAD-related information shared with

the NAIC or a third-party consultant pursuant to this act;

2. Procedures and protocols for sharing by the NAIC only with

other state regulators from states in which the insurance group has

domiciled insurers. The agreement shall provide that the recipient

agrees in writing to maintain the confidentiality and privileged

status of the CGAD-related documents, materials or other information

and has verified in writing the legal authority to maintain

confidentiality;

3. A provision specifying that ownership of the CGAD-related

information shared with the NAIC or a third-party consultant remains

with the Department of Insurance and the NAIC's or third-party

consultant's use of the information is subject to the direction of

the Commissioner;

4. A provision that prohibits the NAIC or a third-party

consultant from storing the information shared pursuant to this act

in a permanent database after the underlying analysis is completed;

5. A provision requiring the NAIC or third-party consultant to

provide prompt notice to the Commissioner and to the insurer or

insurance group regarding any subpoena, request for disclosure, or

request for production of the insurer's CGAD-related information;

and

Oklahoma Statutes - Title 36. Insurance Page 428

6. A requirement that the NAIC or a third-party consultant

consents to intervention by an insurer in any judicial or

administrative action in which the NAIC or a third-party consultant

may be required to disclose confidential information about the

insurer shared with the NAIC or a third-party consultant pursuant to

this act.
Okla. Stat. tit. 36, § 36-996.1 — OK Code / Title 36 / Section 36-996.1
Assigned risk plans
Status: in_force

After consultation with the insurance companies authorized to

issue automobile liability policies in this state, the Insurance

Commissioner shall approve a reasonable plan or plans, fair to the

insurers and equitable to their policyholders, for the apportionment

among such companies of applicants for such policies and for motor

vehicle liability policies who are in good faith entitled to but are

unable to procure such policies through ordinary methods. When any

such plan has been approved, all such insurance companies shall

subscribe thereto and participate therein. Any applicant for any

such policy, any person insured under any such plan, and any

insurance company affected may appeal to the Insurance Commissioner

from any ruling or decision of the manager or committee designated

to operate such plan. Any order or act of the Insurance

Commissioner under the provisions of this section shall be subject

to review by appeal to the district court of Oklahoma County at the

Oklahoma Statutes - Title 36. Insurance Page 241

instance of any party in interest. The court shall determine

whether the filing of the appeal shall operate as a stay of any such

order or act of the Insurance Commissioner and the court shall

summarily hear the matter. The court may, in disposing of the issue

before it, modify, affirm or reverse the order or act of the

Insurance Commissioner in whole or in part.
Okla. Stat. tit. 36, § 36-1618 — OK Code / Title 36 / Section 36-1618
Obligations of receivers or trustees; investments not
Status: in_force

otherwise authorized; limitations.

A. An insurer may invest in certificates, notes or other

obligations issued by trustees or receivers of any institution

created or existing under the laws of the United States or of any

state, district or territory thereof, which, or the assets of which,

are being administered under the direction of any court having

jurisdiction, if such obligation in the opinion of the Insurance

Commissioner is adequately secured as to principal and interest.

B. An insurer may make loans or investments not otherwise

qualifying or permitted under this article to an amount not

exceeding in the aggregate ten percent (10%) of the insurer's

assets, and not exceeding one percent (1%) of such assets as to any

one such loan or investment. But no such loan or investment shall

be represented by:

1. Any item described in Section 1503 of this title, or any

loan or investment otherwise specifically prohibited;

2. Any loan or investment eligible under any other provision of

this article; or

3. Any asset theretofore acquired or held by the insurer under

any other category of loans or investments eligible under this

article.

The insurer shall keep a separate record of all loans and

investments made under this subsection.
Okla. Stat. tit. 36, § 36-6670 — OK Code / Title 36 / Section 36-6670
Definitions
Status: in_force

As used in this section through Section 6676 of this title:

1. "Commissioner" means the Insurance Commissioner;

2. "Enrolled customer" means a customer who elects coverage

under a portable electronics insurance policy issued to a vendor of

portable electronics;

3. "Customer" means a person who purchases portable electronics

or services;

Oklahoma Statutes - Title 36. Insurance Page 1338

4. "Location" means any physical location in the State of

Oklahoma or any website, call center site, or similar location

directed to residents of the State of Oklahoma;

5. "Portable electronics" means electronic devices that are

portable in nature, their accessories and services related to the

use of the device;

6. "Portable electronics insurance" means insurance providing

coverage for the repair or replacement of portable electronics which

may provide coverage for portable electronics against any one or

more of the following causes of loss: loss, theft, inoperability due

to mechanical failure, malfunction, damage or other similar causes

of loss. "Portable electronics insurance" does not include:

a. a service contract governed by the Service Warranty

Act,

b. a policy of insurance covering a seller's or a

manufacturer's obligations under a warranty,

c. a homeowner's, renter's, private passenger automobile,

commercial multi-peril, or similar policy, or

d. a contract excluded from the definition of a service

warranty as set forth by subparagraphs a through g of

paragraph 17 of Section 141.2 of Title 15 of the

Oklahoma Statutes;

7. "Portable electronics transaction" means:

a. the sale or lease of portable electronics by a vendor

to a customer, or

b. the sale of a service related to the use of portable

electronics by a vendor to a customer;

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

licensed insurer or insurance producer; and

9. "Vendor" means a person in the business of engaging in

portable electronics transactions directly or indirectly.
Okla. Stat. tit. 36, § 36-901.1 — OK Code / Title 36 / Section 36-901.1
Purposes of act
Status: in_force

A. The purposes of this act are:

1. To promote the public welfare by regulating insurance rates

to the end that they shall not be excessive, inadequate or unfairly

discriminatory;

2. To improve availability, fairness and reliability of

insurance and insurance rates;

3. To authorize essential cooperative action among insurers in

the ratemaking process and to regulate such activity to prevent

practices that tend to substantially lessen competition or to create

a monopoly;

4. To encourage the most efficient and economic marketing

practices; and

5. To encourage the providing of price and other information to

enable consumers to purchase insurance suitable for their needs and

to foster competitive insurance markets.

B. This act shall be liberally construed to effectuate its

purposes.
Okla. Stat. tit. 36, § 36-676 — OK Code / Title 36 / Section 36-676
Commissioner power to investigate
Status: in_force

A. The Insurance Commissioner shall have power to examine and

investigate the affairs of any licensee to determine whether the

licensee has been or is engaged in any conduct in violation of the

provisions of this act or any rules promulgated thereto. This power

is in addition to the powers which the Commissioner has under

applicable provisions of the Insurance Code including, but not

limited to, Sections 309.1 through 309.6, 332, and 1250.4 of Title

36 of the Oklahoma Statutes.

B. Whenever the Commissioner has reason to believe that a

licensee has been or is engaged in conduct in this state that

violates any provision of this act, the Commissioner may take action

that is necessary or appropriate to enforce the provisions.
Okla. Stat. tit. 36, § 36-6929 — OK Code / Title 36 / Section 36-6929
Contracts by Health Commissioner with qualified persons
Status: in_force

The Insurance Commissioner, in carrying out his or her

obligations under the Health Maintenance Organization Act of 2003,

may contract with qualified persons to make recommendations

concerning the determinations required to be made by the Insurance

Commissioner. The recommendations may be accepted in full or in

part by the Insurance Commissioner. The Insurance Commissioner

shall adopt procedures to ensure that such persons are not subject

to a conflict of interest that would impair their ability to make

recommendations in an impartial manner.
Okla. Stat. tit. 36, § 36-1682 — OK Code / Title 36 / Section 36-1682
Purpose of act
Status: in_force

This act is adopted to provide options to address the

significant limitations in the current methods available to insurers

to transfer or assume blocks of insurance business in an efficient

and cost-effective manner that provides needed legal finality for

such transfers in order to provide for improved operational and

capital efficiency for insurance companies, stimulates the economy

by attracting segments of the insurance industry to the state, makes

Oklahoma an attractive home jurisdiction for insurance companies,

encourages economic growth and increased investment in the financial

services sector and increases the availability of quality insurance

industry jobs in Oklahoma. These purposes are accomplished by

providing a basis and procedures for the transfer and statutory

novation of policies from a transferring insurer to an assuming

insurer by way of an Insurance Business Transfer without the

affirmative consent of policyholders or reinsureds. The novation is

effected by court order. This act establishes the requirements for

notice and disclosure and standards and procedures for the approval

of the transfer and novation by the Oklahoma Insurance Commissioner

and the district court pursuant to an Insurance Business Transfer

Plan. This act does not limit or restrict other means of effecting

a transfer or novation.
Okla. Stat. tit. 36, § 36-2006 — OK Code / Title 36 / Section 36-2006
Board of directors – Membership – Term – Approval –
Status: in_force

Vacancies – Compensation.

A. The business and functions of the Oklahoma Property and

Casualty Insurance Guaranty Association shall be managed and

administered by a board of twelve (12) directors composed of

domestic, foreign and alien insurers who are member insurers,

including a minimum of two domestic insurers, and two insurance

agents who shall serve as ex officio members. In determining

candidates to fill the member insurer positions, the board shall

consider whether all insurers are fairly represented, including

workers' compensation insurers and other property and casualty

insurers. One of the ex officio members shall be the Executive

Director of the Independent Insurance Agents of Oklahoma, Inc.; the

other ex officio member shall be a licensed, resident property and

casualty insurance agent chosen by the Governor. Each member of the

board of directors shall designate a full-time salaried employee to

represent it on the board of directors. Each member except for the

ex officio members shall serve for a term of two (2) years. The ex

officio member who is appointed by the Governor shall serve at the

pleasure of the Governor. Each appointed member insurer

representative may designate an alternate representative to

represent the insurer at any meeting of the board. Any person

serving as an alternate representative shall, while serving, have

all the powers and responsibilities of the appointed insurer

representative. The members of the board of directors except for

the ex officio members shall be subject to approval by the Insurance

Commissioner. Vacancies on the board except for the ex officio

members shall be filled for the remaining period of the term by a

majority vote of the remaining board members, subject to the

approval of the Commissioner.

B. In approving selections to the board, the Commissioner shall

consider, among other things, whether all member insurers are fairly

represented.

C. Members of the board shall serve without compensation but

may be reimbursed from the assets of the Association for expenses

incurred by them as members of the board of directors.

Oklahoma Statutes - Title 36. Insurance Page 576
Okla. Stat. tit. 36, § 36-957 — OK Code / Title 36 / Section 36-957
Filing of scoring models or other scoring processes
Status: in_force

A. Insurers that use insurance scores to underwrite and rate

risks must file their scoring models or other scoring processes with

the Insurance Department. A third party may file scoring models on

behalf of insurers. A filing that includes insurance scoring may

include loss experience justifying the use of credit information.

B. Any filing relating to credit information is considered

trade secret under Section 85 et seq. of Title 78 of the Oklahoma

Statutes.
Okla. Stat. tit. 36, § 36-4017 — OK Code / Title 36 / Section 36-4017
Grace period; annuities
Status: in_force

In an annuity or pure endowment contract, other than a

reversionary, survivorship or group annuity, there shall be a

provision that there shall be a period of grace of one (1) month,

but not less than thirty (30) days, within which any stipulated

payment to the insurer falling due after the first may be made,

subject at the option of the insurer to an interest charge thereon

at a rate to be specified in the contract but not exceeding six

percent (6%) per annum for the number of days of grace elapsing

before such payment, during which period of grace the contract shall

continue in full force; but in case a claim arises under the

contract on account of death prior to expiration of the period of

grace before the overdue payment to the insurer or the deferred

payments of the current contract year, if any, are made, the amount

of such payments, with interest on any overdue payments, may be

deducted from any amount payable under the contract in settlement.
Okla. Stat. tit. 36, § 36-4521 — OK Code / Title 36 / Section 36-4521
Short title
Status: in_force

Sections 1 through 9 of this act shall be known and may be cited

as the "Employer Health Insurance Purchasing Group Act".
Okla. Stat. tit. 36, § 36-6802v1 — OK Code / Title 36 / Section 36-6802v1
Telemedicine defined
Status: in_force

As used in the Oklahoma Telemedicine Act, "telemedicine" means

technology-enabled health and care management and delivery systems

that extend capacity and access, which includes:

a. synchronous mechanisms, which may include live

audiovisual interaction between a patient and a health

care professional or real-time provider to provider

consultation through live interactive audiovisual

means,

b. asynchronous mechanisms, which include store and

forward transfers, online exchange of health

information between a patient and a health care

professional and online exchange of health information

between health care professionals, but shall not

include the use of automated text messages or

automated mobile applications that serve as the sole

interaction between a patient and a health care

professional,

c. remote patient monitoring, and

d. other electronic means that support clinical health

care, professional consultation, patient and

professional health-related education, public health

and health administration.
Okla. Stat. tit. 36, § 36-6461 — OK Code / Title 36 / Section 36-6461
Violations - Penalties
Status: in_force

A. A risk retention group which violates any provision of the

Oklahoma Risk Retention Act shall be subject to fines and penalties

applicable to licensed insurers generally, including but not limited

to revocation of license and the authority to transact insurance

business in this state.

Oklahoma Statutes - Title 36. Insurance Page 1207

B. A risk retention group doing business in this state that is

not licensed pursuant to the Oklahoma Risk Retention Act shall be

considered an unauthorized insurer and shall be subject to the

provisions of applicable sections of the Insurance Code pertaining

to unauthorized insurers.

C. A purchasing group that is registered pursuant to the

Oklahoma Risk Retention Act and which violates any provision of said

act shall be subject to a fine of up to One Thousand Dollars

($1,000.00) and censure, suspension, or revocation of license or by

both such fine and licensure proceedings, after notice and hearing.

D. A purchasing group doing business in this state which is not

registered shall be considered an unauthorized insurer and subject

to the provisions of applicable sections of the Insurance Code

pertaining to unauthorized insurers.
Okla. Stat. tit. 36, § 36-2606 — OK Code / Title 36 / Section 36-2606
Filing of forms and rates; disapproval
Status: in_force

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

contract providing for hospital service or indemnity or medical

service or indemnity shall be issued or delivered to any person in

this state, nor shall any application, rider or endorsement be

issued in connection therewith, until a copy of the form thereof and

classifications of risk and underwriting manual, and the rates

pertaining thereto, have been filed with the Insurance Commissioner.

Such filing shall be deemed approved unless disapproved by the

Insurance Commissioner within sixty (60) days after the date of

Oklahoma Statutes - Title 36. Insurance Page 685

filing. If the Insurance Commissioner disapproves the policy or

contract, application, rider or endorsement form, or classifications

of risk and underwriting manual, said Commissioner shall make a

written decision stating the reason or reasons therefor and shall

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

for any such corporation to use any such disapproved form in this

state. Any such corporation shall have twenty (20) days from date

of receipt of the notice of disapproval in which to request a

hearing on such disapproval.
Okla. Stat. tit. 36, § 36-4030.9 — OK Code / Title 36 / Section 36-4030.9
Maturity dates
Status: in_force

For the purpose of determining the benefits calculated under

Sections 4030.7 and 4030.8 of this title for annuity contracts

issued on or after November 1, 2013, the maturity date shall be

deemed to be the latest date for which election shall be permitted

by the contract, but shall not be deemed to be later than the

anniversary of the contract next following the annuitant's

seventieth birthday or the tenth anniversary of the contract,

whichever is later. However, if surrender charge scales are

measured from the date of each premium payment, the maturity date

shall be deemed to be the latest date for which election shall be

permitted by the contract, but shall not be deemed to be later than

the anniversary of the contract next following the annuitant's

seventieth birthday or the tenth anniversary of the payment,

whichever is later.
Okla. Stat. tit. 36, § 36-999 — OK Code / Title 36 / Section 36-999
Examination to ascertain compliance – Records – Cost – Report of examination in another
Status: in_force

Oklahoma Statutes - Title 36. Insurance Page 7Report of examination in another state.

A. The Commissioner may examine any insurer, pool, advisory

organization, or residual market mechanism to ascertain compliance

with the Property and Casualty Competitive Loss Cost Rating Act.

B. Every insurer, pool, advisory organization, and residual

market mechanism shall maintain adequate records from which the

Commissioner may determine compliance with the provisions of the

Property and Casualty Competitive Loss Cost Rating Act. The records

shall contain the experience, data, statistics and other information

collected or used and shall be available to the Commissioner for

examination or inspection upon reasonable notice.

C. The reasonable cost of an examination made pursuant to this

section shall be paid by the examined party upon presentation to the

party of a detailed account of the costs.

D. The Commissioner may accept the report of an examination

made by an insurance supervisor official of another state in lieu of

an examination pursuant to this section.
Okla. Stat. tit. 36, § 36-6301 — OK Code / Title 36 / Section 36-6301
Short title
Status: in_force

This act shall be known and may be cited as the "Arson and Theft

Reporting Immunity Act".
Okla. Stat. tit. 36, § 36-305 — OK Code / Title 36 / Section 36-305
Commissioner may appoint assistants; legal counsel
Status: in_force

A. The Insurance Commissioner may appoint such deputies,

assistants, examiners, actuaries, attorneys, clerks and employees,

at compensation to be fixed by the Insurance Commissioner, as may be

necessary properly to discharge the duties imposed upon the

Insurance Commissioner under this Code. The Insurance Commissioner

shall appoint all examiners for the office. The attorneys appointed

by the Insurance Commissioner shall be the legal advisors for the

office of Insurance Commissioner and are authorized to appear for

and represent the Insurance Commissioner in any and all litigation

that may arise in the discharge of his or her duties except as

otherwise provided elsewhere in this Code. Provided, the Insurance

Oklahoma Statutes - Title 36. Insurance Page 54

Commissioner, whenever the Insurance Commissioner deems it

necessary, may call upon the Attorney General of the State of

Oklahoma for legal counsel, and such assistance as may be required

to enforce provisions of this Code.

B. No deputy, assistant or employee of the Commissioner shall

be financially interested, directly or indirectly, in any insurer,

agency or insurance transaction except as a policyholder or claimant

under a policy; except, that as to such matters wherein a conflict

of interests does not exist on the part of any such individual, the

Commissioner may employ from time to time insurance actuaries or

other technicians who are independently practicing their professions

even though similarly employed by insurers and others. This section

shall not be deemed to prohibit employment by the Commissioner of

retired or pensioned personnel of insurers or insurance

organizations.
Okla. Stat. tit. 36, § 36-1524 — OK Code / Title 36 / Section 36-1524
Company Action Level Event
Status: in_force

A. "Company Action Level Event" means any of the following

events:

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

that:

a. the insurer's Total Adjusted Capital is greater than

or equal to its Regulatory Action Level RBC but less

than its Company Action Level RBC,

b. if a life or health insurer, the insurer or fraternal

benefit society 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 has a negative trend, or

c. if a property and casualty insurer, the insurer 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

Property and Casualty RBC instructions;

2. The notification by the Insurance Commissioner to the

insurer of an Adjusted RBC Report that indicates an event described

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, an insurer

challenges an Adjusted RBC Report that indicates the event described

in paragraph 1 of this subsection, the 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 Company Action Level Event, the insurer

shall, unless otherwise directed by the Commissioner, prepare and

submit to the Commissioner an RBC Plan which shall include the

following five elements:

1. Conditions which contribute to the Company Action Level

Event;

2. Proposals of corrective actions which the insurer intends to

take and which would be expected to result in the elimination of the

Company Action Level Event;

Oklahoma Statutes - Title 36. Insurance Page 415

3. Projections of the insurer's financial results in the

current year and at least the four (4) succeeding years, both in the

absence of proposed corrective actions and giving effect to the

proposed corrective actions, including projections of statutory

operating income, net income, and capital and surplus. Unless the

Commissioner otherwise directs, the projections for both new and

renewal business shall include separate projections for each major

line of business and separately identify each significant income,

expense and benefit component;

4. The key assumptions impacting the insurer's projections and

the sensitivity of the projections to the assumptions; and

5. The quality of, and problems associated with, the insurer'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

2. If the insurer challenges an Adjusted RBC Report pursuant to

Section 1528 of this title, within forty-five (45) days after

notification to the insurer that the Commissioner has, after

opportunity for a hearing, rejected the insurer's challenge.

D. Within sixty (60) days after the submission by an insurer of

an RBC Plan to the Commissioner, the Commissioner shall notify the

insurer whether the RBC Plan shall be implemented or is, in the

judgment of the Commissioner, unsatisfactory. If the Commissioner

determines the RBC Plan is unsatisfactory, the notification to the

insurer shall set forth the reasons for the determination, and may

set forth proposed revisions which will render the RBC Plan

satisfactory, in the judgment of the Commissioner. Upon

notification from the Commissioner, the insurer shall prepare a

Revised RBC Plan, which 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 insurer challenges the notification from the

Commissioner under Section 1528 of this title, within forty-five

(45) days after a notification to the insurer that the Commissioner

has, after opportunity for a hearing, rejected the insurer's

challenge.

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

insurer that the insurer's RBC Plan or Revised RBC Plan is

unsatisfactory, the Commissioner may at the Commissioner's

discretion, subject to the insurer's right to a hearing under

Oklahoma Statutes - Title 36. Insurance Page 416

Section 1528 of this title, specify in the notification that the

notification constitutes a Regulatory Action Level Event.

F. Every domestic insurer 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 insurer is authorized to do business if:

1. The state has an RBC provision substantially similar to

subsection A of Section 1531 of this title; and

2. The insurance commissioner of that state has notified the

insurer of its request for the filing in writing. If such a request

is made, the insurer shall file a copy of the RBC Plan or Revised

RBC Plan in that state no later than the later of:

a. fifteen (15) days after the receipt of the request 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, § 36-309.7 — OK Code / Title 36 / Section 36-309.7
Liability
Status: in_force

A. No cause of action shall arise nor shall any liability be

imposed against the Insurance Commissioner, the Commissioner's

authorized representatives, or any examiner appointed by the

Commissioner for any statements made or conduct performed while

carrying out the provisions of Sections 309.1 through 309.7 of this

title, unless the conduct was objectively unreasonable and outside

the scope of the person's duties.

B. No cause of action shall arise, nor shall any liability be

imposed against any person for the act of communicating or

delivering information or data to the Commissioner or the

Commissioner's authorized representative or examiner pursuant to an

examination made under Sections 309.1 through 309.7 of this title,

if such act of communication or delivery was not a fraudulent or

criminal act.

C. This section does not abrogate or modify in any way any

common law or statutory privilege or immunity heretofore enjoyed by

any person identified in subsection A of this section.

D. A person identified in subsection A of this section shall be

entitled to an award of attorney's fees and costs if determined to

be the prevailing party in a civil action arising out of activities

in carrying out the provisions of Sections 309.1 through 309.7 of

this title, if the court determines that the party bringing the

action was not substantially justified in doing so. For purposes of

this section, a proceeding is substantially justified if it had a

reasonable basis in law or fact at the time that it was initiated.
Okla. Stat. tit. 36, § 36-6833 — OK Code / Title 36 / Section 36-6833
Burden of proof
Status: in_force

A. A company asserting the insurance compliance self-evaluative

privilege set forth in Section 1 of this act has the burden of

demonstrating the applicability of the privilege. Once a company

has established the applicability of the privilege, the party

seeking disclosure under this act has the burden of proving that the

privilege is asserted in bad faith or for a fraudulent or any other

similar improper purpose. The Insurance Commissioner, district

attorney, or Attorney General seeking disclosure under this act has

the burden of proving the elements set forth in subsection B or C of

Section 2 of this act.

B. The parties may at any time stipulate in proceedings under

Section 2 or 3 of this act to entry of an order directing that

specific information contained in an insurance compliance self-

evaluative audit document is or is not subject to the privilege

provided under Section 1 of this act. Any such stipulation may be

Oklahoma Statutes - Title 36. Insurance Page 1377

limited to the instant proceeding and, absent specific language to

the contrary, shall not be applicable to any other proceeding.