2023 Oklahoma Statutes › Title 36. Insurance › §36-1938. Delinquency proceedings – Procedures - Compensation of personnel.

A. Upon written notice to the receiver, a person shall be placed on the service list to receive notice of matters filed by the receiver. It shall be the responsibility of the person requesting notice to inform the receiver in writing of any changes to his or her address, or to request that his or her name be deleted from the service list. The receiver may require that the persons on the service list provide confirmation that they wish to remain on the service list. Any person who fails to confirm his or her intent to remain on the service list may be purged from the service list. Inclusion on the service list does not confer standing in the delinquency proceeding to raise, appear, or be heard on any issue.
B. Except as otherwise provided by this act, notice and hearing of any matter submitted by the receiver to the receivership court for approval under this act shall be conducted as follows:
1. The receiver shall file an application explaining the proposed action and the basis therefor. The receiver may include any evidence in support of the application. If the receiver determines that any documents supporting the application are confidential, the receiver may submit them to the receivership court under seal for in-camera inspection;
2. The receiver shall provide notice of the application to all persons on the service list and any other parties as determined by the receiver. Notice may be provided by first-class mail, postage paid, electronic mail, or facsimile transmission, at the receiver's discretion. For purposes of this section, notice is deemed to be given on the date that it is deposited with the U.S. Postmaster or transmitted, as applicable, to the last-known address as shown on the service list;
3. Any party in interest objecting to the application shall file an objection specifying the grounds therefor within fourteen (14) days or such longer time as the court may specify in the notice of the filing of the application and shall serve copies on the receiver and any other persons served with the application within the same time period. An objecting party shall have the burden of showing why the receivership court should not authorize the proposed action;
4. If no objection to the application is timely filed, the receivership court may enter an order approving the application without a hearing or hold a hearing to determine if the receiver's application should be approved. The receiver may request that the receivership court enter an order or hold a hearing on an expedited basis; and
5. If an objection is timely filed, the receivership court may hold a hearing. If the receivership court approves the application and, upon a motion by the receiver, determines that the objection was frivolous or filed merely for delay or for other improper purpose, the receivership court shall order the objecting party to pay the receiver's reasonable costs and fees of defending the action.
C. In any proceeding commenced against an insurer pursuant to Article 18 by a judicial proceeding or Article 19 of this title for the purpose of liquidating, rehabilitating, reorganizing or conserving such insurer, hereinafter called delinquency proceeding, the compensation of personnel employed or retained to assist the Insurance Commissioner with the proceeding shall be approved by the court before the compensation may be paid. The Insurance Commissioner shall apply to the court for approval; provided, if any board or association is authorized by the Commissioner to provide assistance to the Commissioner, the board or association shall apply to the court.
D. Upon receiving the application for approval of compensation, the party responsible for the filing of the application shall cause notice in writing of the application, time to file objections, and hearing if there are objections, to be served upon the following persons not less than ten (10) days before the objection period expires:
1. The persons or firms requesting the compensation;
2. The Commissioner, if not the applicant; and
3. Ten persons, or such lesser number as there may be, who hold the largest number of shares in the insurance company involved in the delinquency proceeding, as indicated by the company's stock register as of the time that the company was placed under supervision pursuant to Section 1804 of this title or at the time that an application was filed with the court for the commencement of a delinquency proceeding pursuant to Section 1903 of this title. Said shareholders shall serve as representatives of the insurance company.
E. The notice shall state the time to file objections and place of the hearing if there are objections, the reasons for the hearing and the following rights of any party served with notice:
1. To appear in person at the hearing or to be represented by counsel;
2. To testify under oath, call witnesses to testify, and furnish documentary evidence, relevant to the determination of the compensation;
3. To cross-examine witnesses and have a reasonable opportunity to inspect all documentary evidence; and
4. To subpoena witnesses and compel the production of testimony and documents, relevant to the determination of the compensation. The person making service shall make an affidavit of such service and file the notice and affidavit with the court.
F. At the hearing, the court shall fully investigate the compensation of persons employed or retained to assist the Insurance Commissioner with the conduct of the delinquency proceeding. The court shall not approve the compensation until it has been made to appear to the satisfaction of the court, based upon competent evidence, that such compensation is justified.
Added by Laws 1978, c. 144, § 1. Amended by Laws 1997, c. 418, § 23, eff. Nov. 1, 1997. Renumbered from § 351 of this title by Laws 1997, c. 418, § 127, eff. Nov. 1, 1997; Laws 2022, c. 119, § 5, eff. Nov. 1, 2022.