{"data":{"id":"us-ok/okla.-stat.-tit.-15-15-141.6","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 15, § 15-141.6","heading":"Unearned reserve account - Exceptions - Net asset","body":"ratios.\n\nA. An association licensed pursuant to the Service Warranty Act\n\nshall maintain a funded, unearned reserve account, consisting of\n\nunencumbered assets, equal to a minimum of twenty-five percent (25%)\n\nof the gross written provider fees received on all warranty\n\ncontracts in force, wherever written. In the case of multiyear\n\ncontracts which are offered by associations having net assets of\n\nless than Five Hundred Thousand Dollars ($500,000.00) for which\n\nprovider fees are collected in advance for coverage in a subsequent\n\nyear, one hundred percent (100%) of the provider fees for such\n\nsubsequent years shall be placed in the funded, unearned reserve\n\naccount. Additionally, an association establishing such reserve\n\naccount shall also place in trust with the Insurance Commissioner a\n\nsurety bond issued by an authorized surety having a value of not\n\nless than five percent (5%) of the gross provider fee received, less\n\nclaims paid, on the sale of the service warranties for all service\n\nwarranties issued and in force in this state, but in no event shall\n\nthe bond be less than Twenty-five Thousand Dollars ($25,000.00).\n\nB. An association shall not be required to establish an\n\nunearned reserve or demonstrate the minimum writing ratio required\n\nby subsection D of this section if it has purchased one or more\n\ninsurance policies that collectively cover one hundred percent\n\n(100%) of its claim exposure is covered by such policy and that the\n\npolicy satisfies the requirements of this section. The insurance\n\nshall be obtained from one or more insurers that are licensed,\n\nregistered, or otherwise authorized to do business in this state,\n\nthat is rated B++ or better by A.M. Best Company, Inc., and that\n\nmeets the requirements of subsection C of this section. For the\n\npurposes of this subsection, the insurance policy shall contain the\n\nfollowing provisions:\n\n1. In the event that the service warranty association is unable\n\nto fulfill its obligation under contracts issued in this state for\n\nany reason including insolvency, bankruptcy, or dissolution, the\n\ninsurer will pay losses and unearned provider fees under such plans\n\ndirectly to the person making a claim under the contract;\n\n2. The insurer issuing the insurance policy shall assume full\n\nresponsibility for the administration of claims in the event of the\n\ninability of the association to do so; and\n\n3. The policy may not be canceled or not renewed by either the\n\ninsurer or the association unless sixty (60) days' written notice\n\nthereof has been given to the Commissioner by the insurer before the\n\ndate of such cancellation or nonrenewal.\n\nC. Each insurer providing the insurance policy used to satisfy\n\nthe financial responsibility requirements of subsection B of this\n\nsection must meet one of the following standards:\n\n1. The insurer shall, at the time the policy is filed with the\n\nCommissioner, and continuously thereafter:\n\na. maintain surplus as to policyholders and paid-in\n\ncapital of at least Fifteen Million Dollars\n\n($15,000,000.00), and\n\nb. annually file copies of the audited financial\n\nstatements of the insurer, its NAIC Annual Statement,\n\nand the actuarial certification required by and filed\n\nin the state of domicile of the insurer; or\n\n2. The insurer shall, at the time the policy is filed with the\n\nCommissioner, and continuously thereafter:\n\na. maintain surplus as to policyholders and paid-in\n\ncapital of less than Fifteen Million Dollars\n\n($15,000,000.00) but at least equal to Ten Million\n\nDollars ($10,000,000.00),\n\nb. demonstrate to the satisfaction of the Commissioner\n\nthat the company maintains a ratio of net written\n\npremiums, wherever written, to surplus as to\n\npolicyholders and paid-in capital of not greater than\n\nthree to one, and\n\nc. annually file copies of the audited financial\n\nstatements of the insurer, its NAIC Annual Statement,\n\nand the actuarial certification required by and filed\n,000,000.00),\n\nb. demonstrate to the satisfaction of the Commissioner\n\nthat the company maintains a ratio of net written\n\npremiums, wherever written, to surplus as to\n\npolicyholders and paid-in capital of not greater than\n\nthree to one, and\n\nc. annually file copies of the audited financial\n\nstatements of the insurer, its NAIC Annual Statement,\n\nand the actuarial certification required by and filed\n\nin the state of domicile of the insurer.\n\nD. No warrantor or warranty seller shall allow its gross\n\nwritten provider fees to exceed seven to one ratio to net assets.\n\nE. If the gross written provider fees of a warrantor or a\n\nwarranty seller exceed the required net asset ratios, the\n\nCommissioner may require, in addition to other measures as the\n\nCommissioner deems necessary, any one or more of the following:\n\n1. A complete review of financial condition;\n\n2. An increase in deposit;\n\n3. A suspension of any new writings; or\n\n4. Capital infusion into the business.","path":["OK Code","Title 15"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os15.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"b8f14f1101bf1ed7648bf149e944c3aad6e60f855573c73c4a72cebda2737310","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-15-15-141.5","next":"us-ok/okla.-stat.-tit.-15-15-141.7"},"notice":"GroundRules: Original legal text. Not legal advice."}