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2023 Oklahoma Statutes › Title 36. Insurance › §36-999.3. Definitions.

As used in the Oklahoma Subsidence Insurance Act:
1. “Commercial building” means any building, other than a residence or living unit, permanently affixed to realty located in this state, including basements, footings, foundations, septic systems and underground pipes directly servicing the building, but does not include sidewalks, driveways, parking lots, swimming pools, patios, pilings, piers, wharves, docks, retaining walls, fences, land, trees, plants, crops or agricultural field drainage tile;
2. “Commercial coverage” means mine subsidence insurance for a commercial building;
3. “Insurer” or “insurers” means insurance companies and reciprocals licensed and authorized to write homeowner’s insurance and commercial property insurance policies in this state;
4. “Living unit” means the physical portion designated for separate ownership or occupancy for residential purposes, of a building or group of buildings, permanently affixed to realty located in this state, having elements which are owned or used in common, including an apartment unit, a condominium unit, a cooperative unit or any other similar unit, including appurtenant structures, basements, footings, foundations, septic systems and underground pipes directly servicing the dwelling or building, but does not include swimming pools, patios, pilings, wharves, docks, retaining walls, fences, sidewalks, driveways, land, trees, plants, crops or agricultural field drainage tile;
5. “Living unit coverage” means mine subsidence insurance for a living unit;
6. “Mine subsidence” means lateral or vertical ground movement caused by a failure initiated at the mine level, of man-made underground mines, including, but not limited to, coal mines, clay mines, lead and zinc mines, limestone mines, and fluorspar mines that directly damage residences or commercial buildings. “Mine subsidence” does not include lateral or vertical ground movement caused by earthquake, landslide, volcanic eruption, soil conditions, soil erosion, soil freezing and thawing, improperly compacted soil, construction defects, roots of trees and shrubs or collapse of storm and sewer drains and rapid transit tunnels;
7. “Policy” or “policies” means any contract or contracts of insurance providing the coverage of the Standard Fire Policy and Extended Coverage Endorsement on any residence, living unit or commercial building. It does not include those insurance contracts that are referred to as marine or inland marine policies;
8. “Residence” means a building used principally for residential purposes up to and including a four-family dwelling, permanently affixed to realty located in Oklahoma, including appurtenant structures, basements, footings, foundations, septic systems and underground pipes directly servicing the dwelling or building, but does not include living units, swimming pools, patios, pilings, wharves, docks, retaining walls, fences, sidewalks, driveways, land, trees, plants, crops or agricultural field drainage tile; and
9. “Residential coverage” means mine subsidence insurance for a residence.
Added by Laws 2005, c. 118, § 3, eff. Jan. 1, 2006.
2023 Oklahoma Statutes › Title 36. Insurance › §36-999.4. Subsidence coverage for residences, living units and commercial buildings - Exemption.

A. Beginning January 1, 2006, every insurer, as defined by Section 3 of this act, may offer mine subsidence coverage, upon the request by the policyholder, on policies, as defined by Section 3 of this act, issued or renewed, insuring residences, living units and commercial buildings.
B. The Insurance Commissioner may exempt policies insuring residences, living units or commercial buildings located in any specified county of this state from the provisions of this section if the Commissioner determines that such coverage is not necessary for a specified county.
Added by Laws 2005, c. 118, § 4, eff. Jan. 1, 2006.
2023 Oklahoma Statutes › Title 36. Insurance › §36-999.5. Coverage for additional living expenses.

The residential coverage provided pursuant to the Oklahoma Subsidence Insurance Act may also cover the additional living expenses reasonably and necessarily incurred by the owner of a residence who has been temporarily displaced as the direct result of damage to the residence caused by mine subsidence if the underlying policy also covers this type of loss; provided, however, that the loss covered under living unit coverage shall be limited to losses to improvements and betterments and reimbursement of additional living expenses and assessments made against the insured on account of mine subsidence loss.
Added by Laws 2005, c. 118, § 5, eff. Jan. 1, 2006.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1001. Judicial review.

Any order, ruling, finding, decision or other act of the Oklahoma Insurance Department made pursuant to the Property and Casualty Competitive Loss Cost Rating Act shall be subject to judicial review.
Added by Laws 2004, c. 519, § 24, eff. Nov. 1, 2004. Amended by Laws 2007, c. 125, § 7, eff. July 1, 2007.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1100. Short title - Purpose and effect.

A. Sections 1100 through 1120 of Title 36 of the Oklahoma Statutes shall be known and may be cited as the "Unauthorized Insurers and Surplus Lines Insurance Act".
B. The purpose and effect of the Unauthorized Insurers and Surplus Lines Insurance Act shall relate back to the effective date of implementation of the Nonadmitted and Reinsurance Reform Act of 2010.
Added by Laws 2011, c. 278, § 4 and Laws 2011, c. 360, § 4. Amended by Laws 2012, c. 45, § 1, emerg. eff. April 16, 2012.
NOTE: Laws 2011, c. 278, § 4 and Laws 2011, c. 360, § 4 created identical new sections in Title 36.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1100.2. Authority to enter multistate agreements.

A. For the purposes of carrying out the Nonadmitted and Reinsurance Reform Act of 2010, the Insurance Commissioner is authorized in the Insurance Commissioner's sole discretion and judgment to enter into the Nonadmitted Insurance Multi-State Agreement or any other multistate agreement or compact with the same function and purpose, in order to:
1. Facilitate the collection, allocation and disbursement of premium taxes attributable to the placement of nonadmitted insurance through a central clearinghouse;
2. Provide for uniform methods of allocation and reporting among nonadmitted insurance risk classifications through a central clearinghouse; and
3. Share information among states relating to nonadmitted insurance premium taxes.
B. The Insurance Commissioner is not compelled now or in the future to join the Nonadmitted Insurance Multi-State Agreement or any other multistate agreement or compact with the same function and purpose of distributing surplus line premium tax proceeds based on a formula of multistate risk allocation, unless the Insurance Commissioner, in his or her discretion, deems joining such a multistate compact or agreement is in the best interest of the State of Oklahoma and its citizens.
Added by Laws 2011, c. 278, § 6. Amended by Laws 2011, c. 360, § 6; Laws 2012, c. 45, § 3, emerg. eff. April 16, 2012.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1101. Representation of unauthorized insurers prohibited.

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.
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.
Added by Laws 1957, p. 256, § 1101, operative July 1, 1957. Amended by Laws 1976, c. 98, § 1, emerg. eff. May 10, 1976; Laws 2010, c. 222, § 10, eff. Nov. 1, 2010; Laws 2011, c. 278, § 7 and Laws 2011, c. 360, § 7; Laws 2012, c. 45, § 4, emerg. eff. April 16, 2012.
NOTE: Laws 2011, c. 278, § 7 and Laws 2011, c. 360, § 7 made identical changes to this section.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1101.1. Domestic surplus line insurers.

A. An Oklahoma domestic insurer possessing policyholder surplus of at least Fifteen Million Dollars ($15,000,000.00) may, pursuant to a resolution by its board of directors, and with the written approval of the Insurance Commissioner, be designated as a domestic surplus line insurer. Such insurers may write surplus line insurance in this state and in any other jurisdiction allowed under the Nonadmitted and Reinsurance Reform Act of 2010.
B. The premiums of a domestic surplus line insurer shall be subject to surplus line premium tax pursuant to Section 1115 of this title. The surplus lines broker or licensee shall pay all premium taxes to the Insurance Commissioner when Oklahoma is the home state of the insured until and unless in the exercise of his or her sole discretion and judgment, the Insurance Commissioner decides to join the Nonadmitted Insurance Multi-State Agreement or any other multistate agreement or compact with the same function and purpose.
C. A domestic surplus line insurer may not issue a policy designed to satisfy the motor vehicle financial responsibility requirement of this state, the Workers' Compensation Code, or any other law mandating insurance coverage by a licensed insurance company.
D. A domestic surplus line insurer is not subject to the provisions of the Oklahoma Property & Casualty Insurance Guaranty Association Act nor the Oklahoma Life and Health Insurance Guaranty Association Act.
Added by Laws 2009, c. 176, § 22, eff. Nov. 1, 2009. Amended by Laws 2011, c. 278, § 8; Laws 2011, c. 360, § 8; Laws 2012, c. 45, § 5, emerg. eff. April 16, 2012; Laws 2012, c. 365, § 1, emerg. eff. June 8, 2012.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1102. Validity of contracts effectuated by a surplus lines insurer.

A contract of insurance effectuated by a surplus lines insurer in violation of this Code shall be voidable except at the instance of the insured.
Added by Laws 1957, p. 256, § 1102, operative July 1, 1957. Amended by Laws 2010, c. 222, § 11, eff. Nov. 1, 2010; Laws 2015, c. 49, § 1, eff. Nov. 1, 2015.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1103. Service of process on a surplus lines insurer.

A. Delivery, effectuation, or solicitation of any insurance contract, by mail or otherwise, within this state by a surplus lines insurer, or the performance within this state of any other service or transaction connected with the insurance by or on behalf of the insurer, shall be deemed to constitute an appointment by the insurer of the Insurance Commissioner as its attorney, upon whom may be served all lawful process issued within this state in any action or proceeding against the insurer arising out of any such contract or transaction.
B. Service of process shall be made by delivering to and leaving with the Insurance Commissioner three copies thereof. At time of service the plaintiff shall pay Twenty Dollars ($20.00) to the Insurance Commissioner, taxable as costs in the action. The Insurance Commissioner shall mail by registered mail one of the copies of the process to the defendant at any home state address as last known to the Insurance Commissioner, and shall keep a record of all process so served.
C. Service of process in any action or proceeding, in addition to the manner provided herein, shall also be valid if served upon any person within this state who, in this state on behalf of the insurer, is soliciting insurance, or making, issuing, or delivering any insurance policy, or collecting or receiving any premium, membership fee, assessment, or other consideration for insurance.
D. Service of process upon an insurer in accordance with this section shall be as valid and effective as if served upon a defendant personally present in this state.
E. Means provided in this section for service of process upon the insurer shall not be deemed to prevent service of process upon the insurer by any other lawful means.
F. An insurer which has been so served with process shall have the right to appear in and defend the action and employ attorneys and other persons in this state to assist in its defense or settlement.
Added by Laws 1957, p. 256, § 1103, operative July 1, 1957. Amended by Laws 1985, c. 328, § 8, emerg. eff. July 29, 1985; Laws 1997, c. 418, § 38, eff. Nov. 1, 1997; Laws 2010, c. 222, § 12, eff. Nov. 1, 2010; Laws 2011, c. 278, § 9 and Laws 2011, c. 360, § 9; Laws 2012, c. 45, § 6, emerg. eff. April 16, 2012.
NOTE: Laws 2011, c. 278, § 9 and Laws 2011, c. 360, § 9 made identical changes to this section.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1104. Exemptions from service of process provisions.

Sections 1103 and 1105 of this article shall not apply to reinsurance, nor to any action or proceeding against a surplus lines insurer arising out of:
1. Ocean marine and foreign trade insurance,
2. Insurance on subjects located, resident, or to be performed wholly outside this state, or on vehicles or aircraft owned and principally garaged outside this state,
3. Insurance on property or operations of railroads engaged in interstate commerce, or
4. Insurance on aircraft or cargo of the aircraft, or against liability, other than employers' liability, arising out of the ownership, maintenance, or use of the aircraft, where the policy or contract contains a provision designating the Insurance Commissioner as its attorney for the acceptance of service of lawful process in any action or proceeding instituted by or on behalf of an insured or beneficiary arising out of any policy, or where the insurer enters a general appearance in any action.
Added by Laws 1957, p. 257, § 1104, operative July 1, 1957. Amended by Laws 2010, c. 222, § 13, eff. Nov. 1, 2010; Laws 2012, c. 45, § 7, emerg. eff. April 16, 2012.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1105. Attorney fees.

In any action against a surplus lines insurer pursuant to Section 1103 of this title, if the insurer has failed for thirty (30) days after demand prior to the commencement of the action to make payment in accordance with the terms of the contract of insurance or in accordance with Section 1115 of this title, and it appears to the court that the refusal was vexatious and without reasonable cause, the court may allow to the plaintiff or an aggrieved agency of this state a reasonable attorney fee and include the fee in any judgment that may be rendered in the action. The fee shall not exceed one-third (1/3) of the amount which the court or jury finds the plaintiff is entitled to recover against the insurer, but in no event shall a fee be less than One Hundred Dollars ($100.00). Failure of an insurer to defend any action shall be deemed prima facie evidence that its failure to make payment was vexatious and without reasonable cause.
Added by Laws 1957, p. 257, § 1105, operative July 1, 1957. Amended by Laws 2010, c. 222, § 14, eff. Nov. 1, 2010; Laws 2011, c. 278, § 10 and Laws 2011, c. 360, § 10; Laws 2012, c. 45, § 8, emerg. eff. April 16, 2012.
NOTE: Laws 2011, c. 278, § 10 and Laws 2011, c. 360, § 10 made identical changes to this section.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1106. Surplus lines - Brokers.

If insurance required to protect the interest of the insured for the amount of insurance, coverage terms and solvency requirements of the insured cannot be procured from admitted insurers after inquiry in the market available to the insurance producer, then insurance may be procured from surplus lines insurers subject to the following conditions:
1. The surplus lines insurer shall meet the requirements of the Unauthorized Insurers and Surplus Lines Insurance Act and the following conditions:
a.
the insurer has capital and surplus or its equivalent under the laws of its domiciliary jurisdiction which equals the greater of:
(1)
the minimum capital and surplus requirements under the laws of this state for nonadmitted insurers, or
(2)
Fifteen Million Dollars ($15,000,000.00),
b.
the requirements of subparagraph a of this paragraph may be satisfied by an insurer's possessing less than the minimum capital and surplus upon an affirmative finding of acceptability by the Insurance Commissioner. The finding shall be based upon such factors as quality of management, capital and surplus of any parent company, company underwriting profit and investment income trends, market availability and company record and reputation within the industry. In no event shall the Insurance Commissioner make an affirmative finding of acceptability when the nonadmitted insurer's capital and surplus is less than Four Million Five Hundred Thousand Dollars ($4,500,000.00), and
c.
the insurer, if an alien insurer, is listed on the National Association of Insurance Commissioners Nonadmitted Insurers Quarterly Listing; and
2. The insurance shall be procured through a licensed surplus lines licensee or broker licensed in the insurer's home state. An Oklahoma surplus lines license is required only where Oklahoma is the home state of the insured.
For the purposes of carrying out the provisions of the Nonadmitted and Reinsurance Reform Act of 2010, the Insurance Commissioner is authorized to utilize the national insurance producer database of the National Association of Insurance Commissioners, or any other equivalent uniform national database, for the licensure of an individual or entity as a surplus lines licensee or broker and for renewal of such license.
Added by Laws 1957, p. 257, § 1106, operative July 1, 1957. Amended by Laws 1986, c. 134, § 3, emerg. eff. April 17, 1986; Laws 1991, c. 146, § 1, eff. Sept. 1, 1991; Laws 1993, c. 79, § 4, eff. Sept. 1, 1993; Laws 2006, c. 94, § 1, eff. Nov. 1, 2006; Laws 2010, c. 222, § 15, eff. Nov. 1, 2010; Laws 2011, c. 278, § 11; Laws 2011, c. 360, § 11; Laws 2012, c. 45, § 9, emerg. eff. April 16, 2012; Laws 2012, c. 365, § 2, emerg. eff. June 8, 2012; Laws 2014, c. 415, § 1, emerg. eff. June 3, 2014; Laws 2018, c. 95, § 2, eff. Nov. 1, 2018.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1106.1. Due diligence search.

A. A surplus lines licensee or broker is not required to make a due diligence search to determine whether the full amount or type of insurance can be obtained from admitted insurers when the surplus lines licensee or broker is seeking to procure or place nonadmitted insurance for an exempt commercial purchaser, provided:
1. The licensee or broker procuring or placing the surplus lines insurance has disclosed to the exempt commercial purchaser that such insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight; and
2. The exempt commercial purchaser has subsequently requested in writing for the surplus lines broker to procure or place such insurance from a nonadmitted insurer.
B. For purposes of this section, the term "exempt commercial purchaser" means any person purchasing commercial insurance that, at the time of placement, meets the following requirements:
1. The person employs or retains a qualified risk manager to negotiate insurance coverage;
2. The person has paid aggregate nationwide commercial property and casualty insurance premiums in excess of One Hundred Thousand Dollars ($100,000.00) in the immediately preceding twelve (12) months;
3. The person meets at least one of the following criteria:
a.
the person possesses a net worth in excess of Twenty-Four Million Dollars ($24,000,000.00), as such amount is adjusted pursuant to paragraph 4 of this subsection,
b.
the person generates annual revenues in excess of Sixty Million Dollars ($60,000,000.00), as such amount is adjusted pursuant to paragraph 4 of this subsection,
c.
the person employs more than five hundred full-time-equivalent employees per individual insured or is a member of an affiliated group employing more than one thousand employees in the aggregate,
d.
the person is a not-for-profit organization or public entity generating annual budgeted expenditures of at least Thirty-Six Million Dollars ($36,000,000.00), as such amount is adjusted pursuant to paragraph 4 of this subsection, or
e.
the person is a municipality with a population in excess of fifty thousand (50,000) persons; and
4. Effective on January 1, 2015, and every five (5) years thereafter, the amounts in subparagraphs a, b and d of paragraph 3 of this subsection shall be adjusted to reflect the percentage change for such five-year period in the Consumer Price Index of All Urban Consumers published by the Bureau of Labor Statistics of the U.S. Department of Labor.
Added by Laws 2011, c. 278, § 12 and Laws 2011, c. 360, § 12. Amended by Laws 2012, c. 45, § 10, emerg. eff. April 16, 2012; Laws 2022, c. 154, § 1, eff. Nov. 1, 2022.
NOTE: Laws 2011, c. 278, § 12 and Laws 2011, c. 360, § 12 created identical sections with the same section number.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1106.2. Due diligence - Flood insurance with a nonadmitted insurer.

A surplus lines licensee or broker is not required to make a due diligence search to determine whether the full amount or type of insurance can be obtained from admitted insurers when the surplus lines licensee or broker is seeking to procure or place flood insurance with a nonadmitted insurer.
Added by Laws 2015, c. 49, § 3, eff. Nov. 1, 2015.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1107. Multistate risk - Required application and informational filings - Fee payments.

A. After procuring any surplus line insurance where Oklahoma is the home state and the insurance involves a multistate risk, the surplus lines licensee and broker shall submit such information relating to the transaction as may be established by the Insurance Commissioner. The data shall be provided to the Insurance Commissioner until and unless in the exercise of his or her sole discretion and judgment, the Insurance Commissioner decides to enter or join the Nonadmitted Insurance Multi-State Agreement or any other multistate agreement or compact with the same function and purpose and other reporting requirements are thereby established.
B. When Oklahoma is the home state of the insured, the surplus lines licensee or broker shall make all informational filings and fee payments in the manner required or to be established by the Insurance Commissioner. When Oklahoma is the home state of the insured, the premium tax filings and premium tax payments shall be provided entirely to the Insurance Commissioner until and unless, in the exercise of his or her sole discretion and judgment, the Insurance Commissioner decides to enter or join the Nonadmitted Insurance Multi-State Agreement or any other multistate agreement or compact with the same function and purpose.
C. Failure to file the required information, any required fee payments and make the required premium tax payments in the manner established by the Insurance Commissioner pursuant to this section and Section 1115 of this title where Oklahoma is the home state of the insured shall result, after notice and hearing, in censure, suspension, or revocation of license or a fine of up to Five Hundred Dollars ($500.00) for each occurrence or by both such fine and licensure penalty.
Added by Laws 1957, p. 257, § 1107, operative July 1, 1957. Amended by Laws 1987, c. 175, § 7, eff. Nov. 1, 1987; Laws 1991, c. 146, § 2, eff. Sept. 1, 1991; Laws 2010, c. 222, § 16, eff. Nov. 1, 2010; Laws 2011, c. 278, § 13; Laws 2011, c. 360, § 13; Laws 2012, c. 45, § 11, emerg. eff. April 16, 2012; Laws 2012, c. 365, § 3, emerg. eff. June 8, 2012.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1108. Recognized surplus lines.

If a particular insurance coverage or type, class, or kind of coverage is not readily procurable from authorized insurers in Oklahoma, a surplus lines licensee or broker may place the coverage with a nonadmitted insurer or surplus lines insurer as defined in the Unauthorized Insurers and Surplus Lines Insurance Act.
Added by Laws 1957, p. 257, § 1108, operative July 1, 1957. Amended by Laws 2010, c. 222, § 17, eff. Nov. 1, 2010; Laws 2011, c. 278, § 14 and Laws 2011, c. 360, § 14.
NOTE: Laws 2011, c. 278, § 14 and Laws 2011, c. 360, § 14 made identical changes to this section.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1109. Validity of surplus line insurance - Notice of limitations of coverage.

A. Insurance contracts procured as surplus line coverage from surplus lines insurers in accordance with this article shall be fully valid and enforceable as to all parties, and shall be given recognition in all matters and respects to the same effect as like contracts issued by admitted insurers.
B. Insurance contracts procured as surplus line coverage shall contain in bold-face type notification stamped by the surplus lines licensee or broker or surplus lines insurer on the declaration page of the policy that the contracts are not subject to the protection of any guaranty association in the event of liquidation or receivership of the surplus lines insurer. The Commissioner is hereby authorized to promulgate rules to establish further disclosure requirements for the purpose of protecting consumers of surplus line coverage.
Added by Laws 1957, p. 258, § 1109, operative July 1, 1957. Amended by Laws 1986, c. 251, § 10, eff. Nov. 1, 1986; Laws 1991, c. 146, § 3, eff. Sept. 1, 1991; Laws 2006, c. 264, § 27, eff. July 1, 2006; Laws 2010, c. 222, § 18, eff. Nov. 1, 2010; Laws 2011, c. 278, § 15; Laws 2011, c. 360, § 15; Laws 2012, c. 45, § 12, emerg. eff. April 16, 2012; Laws 2014, c. 415, § 2, emerg. eff. June 3, 2014.
NOTE: Laws 2011, c. 278, § 15 and Laws 2011, c. 360, § 15 made identical changes to this section.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1111. Acceptance of surplus line business by brokers.

A surplus lines licensee or broker may accept and place surplus lines insurance from any insurance agent or broker licensed in this state for the kind of insurance involved, and may compensate such agent or broker therefor. The insurance agent or broker shall have the right to receive from the surplus lines insurer the customary commission.
Added by Laws 1957, p. 258, § 1111, operative July 1, 1957. Amended by Laws 2011, c. 278, § 16 and Laws 2011, c. 360, § 16; Laws 2012, c. 45, § 13, emerg. eff. April 16, 2012.
NOTE: Laws 2011, c. 278, § 16 and Laws 2011, c. 360, § 16 made identical changes to this section.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1112. Solvent insurer required - License revocation - Penalties.

A. A surplus lines licensee or broker shall not knowingly place any such coverage with a nonadmitted insurer which is in an unsound financial condition. To be considered financially sound, a surplus lines insurer shall meet the requirements of Section 1106 of this title.
B. For violation of this section, in addition to any other penalty provided by law, the surplus lines broker's license shall be revoked, and the broker shall not again be so licensed within a period of two (2) years thereafter. In addition, any surplus lines licensee and broker who violates this section shall be guilty of a misdemeanor and upon conviction thereof shall be punished for each offense, by a fine of not more than One Thousand Dollars ($1,000.00) or by confinement in jail for not more than ninety (90) days, or by both such fine and imprisonment.
Added by Laws 1957, p. 258, § 1112, operative July 1, 1957. Amended by Laws 1965, c. 132, § 1, eff. Oct. 1, 1965; Laws 1991, c. 146, § 4, eff. Sept. 1, 1991; Laws 2002, c. 307, § 10, eff. Nov. 1, 2002; Laws 2011, c. 278, § 17 and Laws 2011, c. 360, § 17; Laws 2012, c. 45, § 14, emerg. eff. April 16, 2012.
NOTE: Laws 2011, c. 278, § 17 and Laws 2011, c. 360, § 17 made identical changes to this section.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1113. Records of surplus lines licensees or brokers.

Each surplus lines licensee or broker licensed in Oklahoma shall keep a full and true record of each surplus lines contract procured by the surplus lines broker, and such record may be examined at any time within three (3) years thereafter by the Insurance Commissioner. The record shall include such information required to be submitted as established by the Insurance Commissioner in this article.
Added by Laws 1957, p. 258, § 1113, operative July 1, 1957. Amended by Laws 1997, c. 418, § 39, eff. Nov. 1, 1997; Laws 2011, c. 278, § 18; Laws 2011, c. 360, § 18; Laws 2012, c. 45, § 15, emerg. eff. April 16, 2012.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1114. Broker's annual statement.

Each surplus lines licensee or broker licensed or transacting business in Oklahoma shall on or before April 1 of each year file with the Insurance Commissioner a verified statement of all surplus lines insurance transacted by the broker during the preceding calendar year where Oklahoma is the home state of the insured. The statement shall be on a form prescribed and furnished by the Insurance Commissioner and shall show such information required to be submitted as established by the Insurance Commissioner. The information shall be provided to the Insurance Commissioner until and unless, in the exercise of his or her sole discretion and judgment, the Insurance Commissioner decides to enter or join the Nonadmitted Insurance Multi-State Agreement or any other multistate agreement or compact with the same function and purpose and other transaction reporting requirements are thereby established.
Added by Laws 1957, p. 259, § 1114, operative July 1, 1957. Amended by Laws 2011, c. 278, § 19; Laws 2011, c. 360, § 19; Laws 2012, c. 45, § 16, emerg. eff. April 16, 2012.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1116. Penalty for failure to remit tax.

A. Any surplus lines licensee or broker who fails to remit the surplus line tax provided for by Section 1115 of this title shall be liable for a civil penalty not to exceed Twenty-five Dollars ($25.00) for each day of delinquency, per policy. The Insurance Commissioner shall collect the tax by distraint and shall recover the penalty by an action in the name of the State of Oklahoma. The Commissioner may request the Attorney General to appear in the name of the state by relation of the Commissioner.
B. If any person, association or legal entity procuring or accepting any insurance coverage from a surplus lines insurer where Oklahoma is the home state of the insured, otherwise than through a surplus lines licensee or broker, fails to remit the surplus line tax provided for by Section 1115 of this title, the person, association or legal entity shall, in addition to the tax, be liable to a civil penalty in an amount equal to one percent (1%) of the premiums paid or agreed to be paid for the policy or policies of insurance for each calendar month of delinquency or a civil penalty in the amount of Twenty-five Dollars ($25.00) whichever shall be the greater. The Insurance Commissioner shall collect the tax by distraint and shall recover the civil penalty in an action in the name of the State of Oklahoma. The Commissioner may request the Attorney General to appear in the name of the state by relation of the Commissioner.
Added by Laws 1957, p. 259, § 1116, operative July 1, 1957. Amended by Laws 1959, p. 135, § 1, emerg. eff. July 8, 1959; Laws 1991, c. 146, § 6, eff. Sept. 1, 1991; Laws 1992, c. 65, § 2, eff. Sept. 1, 1992; Laws 1997, c. 418, § 41, eff. Nov. 1, 1997; Laws 2009, c. 432, § 10, eff. July 1, 2009; Laws 2010, c. 222, § 20, eff. Nov. 1, 2010; Laws 2011, c. 278, § 21 and Laws 2011, c. 360, § 21; Laws 2012, c. 45, § 18, emerg. eff. April 16, 2012; Laws 2021, c. 478, § 5, emerg. eff. May 12, 2021.
NOTE: Laws 2011, c. 278, § 21 and Laws 2011, c. 360, § 21 made identical changes to this section.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1118. Legal process against surplus line insurer.

A. Every surplus lines insurer issuing or delivering a surplus line policy through a surplus lines licensee or broker in this state shall conclusively be deemed thereby to have irrevocably appointed the Insurance Commissioner as its attorney for acceptance of service of all legal process, other than a subpoena, issued in this state in any action or proceeding under or arising out of the policy, and service of process upon the Insurance Commissioner shall be lawful personal service upon the surplus lines or nonadmitted insurer.
B. Each surplus line policy shall contain a provision stating the substance of subsection A of this section, and designating the person to whom the Insurance Commissioner shall mail process as provided in subsection C of this section.
C. Triplicate copies of legal process against such an insurer shall be served upon the Insurance Commissioner, and at time of service the plaintiff shall pay to the Insurance Commissioner Twenty Dollars ($20.00), taxable as costs in the action. The Insurance Commissioner shall immediately mail one copy of the process so served to the person designated by the insurer in the policy for the purpose, by mail with return receipt requested. The surplus lines or nonadmitted insurer shall have forty (40) days after the date of mailing within which to plead, answer, or otherwise defend the action.
Added by Laws 1957, p. 260, § 1118, operative July 1, 1957. Amended by Laws 1986, c. 251, § 11, eff. Nov. 1, 1986; Laws 1997, c. 418, § 42, eff. Nov. 1, 1997; Laws 2010, c. 222, § 21, eff. Nov. 1, 2010; Laws 2011, c. 278, § 22 and Laws 2011, c. 360, § 22; Laws 2012, c. 45, § 19, emerg. eff. April 16, 2012.
NOTE: Laws 2011, c. 278, § 22 and Laws 2011, c. 360, § 22 made identical changes to this section.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1120. Records of insureds.

Upon request of the Insurance Commissioner any person in Oklahoma who is the insured under any policy issued by a surplus lines insurer upon a subject of insurance resident, located, or to be performed in Oklahoma at the time the policy was issued, or where the insured's home state is Oklahoma, shall produce for examination all policies and other documents evidencing and relating to the insurance, and shall disclose the amount of the gross premiums paid or agreed to be paid for the insurance, through whom the insurance was procured, and such other information relative to the placing of the insurance as may reasonably be required by the Insurance Commissioner.
Added by Laws 1957, p. 260, § 1120, operative July 1, 1957. Amended by Laws 2010, c. 222, § 22, eff. Nov. 1, 2010; Laws 2012, c. 45, § 20, emerg. eff. April 16, 2012.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1125. Filing requirements.

A. Every property and casualty insurance company doing business in this state, unless otherwise exempted by the domiciliary commissioner, shall annually submit the opinion of an appointed actuary entitled “Statement of Actuarial Opinion”. This opinion shall be filed in accordance with the appropriate NAIC Property and Casualty Annual Statement Instructions.
B. 1. Every property and casualty insurance company domiciled in this state that is required to submit a Statement of Actuarial Opinion shall annually submit an actuarial opinion summary written by the company’s appointed actuary. This actuarial opinion summary shall be filed in accordance with the appropriate NAIC Property and Casualty Annual Statement Instructions and shall be considered as a document supporting the actuarial opinion required in subsection A of this section.
2. A company licensed but not domiciled in this state shall provide the actuarial opinion summary upon request.
C. 1. An actuarial report and underlying workpapers as required by the appropriate NAIC Property and Casualty Annual Statement Instructions shall be prepared to support each actuarial opinion.
2. If the insurance company fails to provide a supporting actuarial report and/or workpapers at the request of the Insurance Commissioner or the Commissioner determines that the supporting actuarial report or workpapers provided by the insurance company are otherwise unacceptable to the Commissioner, the Commissioner may engage a qualified actuary at the expense of the company to review the opinion and the basis for the opinion and prepare the supporting actuarial report or workpapers.
D. The appointed actuary shall not be liable for damages to any person, other than the insurance company and the Commissioner, for any act, error, omission, decision or conduct with respect to the actuary’s opinion, except in cases of fraud or willful misconduct on the part of the appointed actuary.
Added by Laws 2006, c. 264, § 28, eff. July 1, 2006.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1140. Definitions - Licensing - Application - Duration of license.

A. “Advisory organization” means a corporation, an unincorporated association, a partnership or an individual, whether located inside or outside of this state, organized and licensed for the purpose of making rates, loss costs, rating plans, statistical collection, furnishing statistical data, policy forms and endorsements or rating systems.
B. The term “advisory organization” shall be synonymous with the terms “bureau”, “statistical agent” and “rating organization”.
C. No advisory organization shall provide any service relating to the loss costs, rates, rating plans, manual rules, rating systems or policy forms of any property and casualty insurance products subject to the provisions of the Oklahoma Insurance Code and no insurer shall utilize the services of such organization unless the organization has obtained a license.
D. No advisory organization shall refuse to supply any services for which it is licensed in this state to any insurer authorized to do business in this state and offering to pay the usual compensation for the services.
E. 1. An advisory organization applying for a license shall include with its application:
a.
a copy of its constitution, charter, articles of organization, agreement, association or incorporation, and a copy of its bylaws, plan of operation and any other rules or regulations governing the conduct of its business,
b.
a list of its members and subscribers,
c.
the name and address of one or more residents of this state upon whom notices, process affecting it, or orders of the Insurance Commissioner may be served,
d.
a statement showing its technical qualifications for acting in the capacity for which it seeks a license,
e.
a biography of the ownership and management of the organization, and
f.
any other relevant information and documents that the Commissioner may require.
2. Every organization which has applied for a license shall notify the Commissioner of every material change in the facts or in the documents on which its application was based. Any amendment to a document filed under this section shall be filed at least thirty (30) days before it becomes effective.
3. If the Commissioner finds that the applicant and the natural persons through whom it acts are competent, trustworthy and technically qualified to provide the services proposed, and that all requirements of the law are met, the Commissioner shall issue a license specifying the authorized activity of the applicant. The Commissioner shall not issue a license if the proposed activity would tend to create a monopoly or to substantially lessen the competition in the market.
4. Licenses issued pursuant to this section shall remain in force for one (1) year unless suspended or revoked. The Commissioner may at any time, after a hearing, revoke or suspend the license of any advisory organization that does not comply with the requirements and standards of the applicable provisions of the Insurance Code.
Added by Laws 2006, c. 264, § 30, eff. July 1, 2006.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1141. Prohibited conduct.

A. No advisory organization shall:
1. Attempt to monopolize, or combine or conspire with any person or persons to monopolize, an insurance market;
2. Engage in a boycott, on a concerted basis, of an insurance market; and
3. Except as set forth in subsection B of this section, agree to mandate adherence to or to mandate use of any rate, prospective loss cost, rating plan, rating schedule, rating rule, policy or bond form, rate classification, rate territory, underwriting rule, survey, inspection or similar material. Insurers and advisory organizations may agree to develop and adhere to statistical plans permitted by the applicable provisions of the Oklahoma Insurance Code.
B. Except as specifically permitted under the applicable provisions of the Insurance Code, no advisory organization shall compile or distribute recommendations relating to rates that include expenses, other than loss adjustment expenses or loss-based taxes and assessments, or profit.
Added by Laws 2006, c. 264, § 31, eff. July 1, 2006.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1142. Permitted activities and services.

Any licensed advisory organization, in addition to other activities not prohibited, is authorized on behalf of its members and subscribers to:
1. Develop statistical plans including territorial and class definitions;
2. Collect statistical data from members, subscribers or any other source;
3. Prepare, file and distribute prospective loss costs which may include provisions for special assessments and taxes;
4. Prepare, file and distribute factors, calculations or formulas pertaining to classification, territory, increased limits and other variables;
5. Prepare, file and distribute manuals of rating rules, rating schedules and other supplementary rating information that does not include final rates, expense provisions, profit provisions or minimum premiums;
6. Distribute information that is required or directed to be filed with the Commissioner;
7. Conduct research and on-site inspections in order to prepare classifications of public fire defenses;
8. Consult with public officials regarding public fire protection as it would affect members, subscribers and others;
9. Conduct research and collect statistics in order to discover, identify and classify information relating to causes or prevention of losses;
10. Conduct research and collect information to determine the impact of statutory and other law changes upon prospective loss costs and special assessments;
11. Prepare, file and distribute policy forms and endorsements and consult with members, subscribers and others relative to their use and application;
12. Conduct research and on-site inspections for the purpose of providing risk information relating to individual structures;
13. Conduct on-site inspections to determine rating classifications for individual insureds;
14. Collect, compile and publish past and current prices of individual insurers; provided, such information is also made available to the general public for a reasonable price;
15. Collect and compile exposure and loss experience for the purpose of individual risk experience ratings;
16. File final rates for residual market mechanisms; and
17. Furnish any other services, as approved or directed by the Insurance Commissioner, related to those enumerated in this section.
Added by Laws 2006, c. 264, § 32, eff. July 1, 2006.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1143. Review of advisory organization actions.

A. Every advisory organization which makes its own rates shall provide within this state reasonable means whereby any insured aggrieved by the application of its rating system may, upon that insured's written request, be heard in person or by the insured's authorized representative to review the manner in which such rating system has been applied in connection with the insurance afforded the aggrieved insurer.
B. An insurer or any party affected by the action of an advisory organization may, within thirty (30) days after written notice of that action, make application, in writing, for an appeal to the Insurance Commissioner, setting forth the basis for the appeal and the grounds to be relied upon by the applicant.
C. Within thirty (30) days, the Commissioner shall review the application and, if the Commissioner finds that the application is made in good faith and that it sets forth on its face grounds which reasonably justify holding a hearing, the Commissioner shall conduct a hearing held not less than ten (10) days after written notice to the applicant and to the advisory organization. The Commissioner, after a hearing, shall affirm or reverse the action of the advisory organization.
Added by Laws 2006, c. 264, § 33, eff. July 1, 2006.
2023 Oklahoma Statutes › Title 36. Insurance › §36-1144. Examination by Insurance Commissioner - Scope - Report by official of another state.

A. The Insurance Commissioner shall make or cause to be made, at least once in five (5) years, an examination of each advisory organization licensed in this state as provided in this act, and the Commissioner may, as often as it may deem expedient, make or cause to be made an examination of each advisory organization referred to in this act, and of each group, association, or other organization referred to in this act. The reasonable cost of any such examination shall be paid by the organization examined, upon presentation of a detailed account of such costs.
B. The officers, managers, agents and employees of such advisory organization may be examined, at any time, under oath, and shall exhibit all books, records, accounts, documents or agreements governing its method of operation.
C. In lieu of any such examination, the Commissioner may accept the report of an examination made by the insurance supervisory official of another state, pursuant to the laws of such state.
Added by Laws 2006, c. 264 § 34, eff. July 1, 2006.