{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-1509","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-1509","heading":"Increase of inadequate reserves - Present value","body":"discounting - Annual actuarial opinions - Investment limitations -\n\nUnusual dividend or benefit payments.\n\nA. If the Insurance Commissioner determines in writing that an\n\ninsurer's unearned premium reserve, however computed, is inadequate,\n\nthe Commissioner may require the insurer to compute the reserve or\n\nany part thereof according to any other method or methods as are\n\nprescribed in this article.\n\nB. If the loss experience of an insurer shows that its loss\n\nreserves, however estimated, are inadequate, the Commissioner, in\n\nwriting, shall require the insurer to maintain loss reserves in an\n\nincreased amount as is needed to make them adequate.\n\nC. 1. Insurers shall not use present value discounting for\n\ncomputing reserves for property and casualty insurance, except for\n\nworkers' compensation carriers and physicians' and hospitals'\n\nprofessional liability insurance written on an occurrence basis.\n\nWorkers' compensation carriers may use present value discounting at\n\na rate of four percent (4%) for disability and death claims.\n\nProperty and casualty insurers which elect to use present value\n\ndiscounting for computing reserves on physicians' and hospitals'\n\nprofessional liability insurance shall file initially, and\n\nthereafter annually, an actuarial opinion certifying to the adequacy\n\nof such reserves which shall include an analysis of the propriety of\n\nloss payout patterns, interest rate assumptions used in developing\n\nthe discount and the adequacy of the insurer's rates. Additionally,\n\nthe actuary shall consider the quality and liquidity of the\n\ninsurer's assets and the nature and extent of the insurer's\n\nreinsurance program. In no event shall the interest rate used to\n\ncompute the discounted reserves exceed the insurer's average yield\n\non invested assets for the year, less one percent (1%).\n\n2. Annual actuarial opinions required pursuant to this\n\nsubsection shall be filed by the insurer on or before the first day\n\nof April. All actuarial opinions shall be from an independent\n\nactuary with membership in the American Academy of Actuaries or The\n\nCasualty Actuarial Society.\n\n3. Except for workers' compensation insurance carriers,\n\ninsurers discounting reserves pursuant to this subsection shall\n\ninvest and maintain their funds only in cash; securities described\n\nin the following sections of this Code:\n\na. Section 1607 (securities of or guaranteed by the\n\nUnited States),\n\nb. Section 1608 (state and Canadian public obligations),\n\nc. Section 1609 (county, municipal and district\n\nobligations),\n\nd. Section 1610 (public improvement bonds),\n\ne. Section 1611 (obligations payable from public utility\n\nrevenues) limited to issues which, at time of\n\npurchase, are rated A or better by Standard and Poor's\n\nBond Guide or Moody's Bond Record,\n\nf. Section 1614 (corporate obligations) limited to issues\n\nwhich, at time of purchase, are rated A or better by\n\nStandard and Poor's Bond Guide or Moody's Bond Record,\n\nand\n\ng. Section 1620 (deposits, banks, savings and loans);\n\nand any other investment specifically approved by the Commissioner.\n\n4. This subsection applies to reserves established in\n\nconnection with incidents of loss occurring on or after January 1,\n\n1989. The investment limitations prescribed by this subsection\n\nshall be applicable on or after January 1, 1989.\n\nD. During any period of reserve strengthening mandated by the\n\nCommissioner pursuant to the provisions of this section, no insurer\n\nshall pay dividends or other benefits which would not be normal\n\npayments under the terms of a policy to any stockholder or\n\npolicyholder of such insurer and such insurer shall be subject to\n\nany additional reasonable restrictions as the Commissioner shall\n\ndeem prudent.\n\nE. Insurers shall report, on a form prescribed by the\n\nCommissioner and filed with their annual statement, all funds\n\ncollected through policy fees or assessments which were collected in\nrmal\n\npayments under the terms of a policy to any stockholder or\n\npolicyholder of such insurer and such insurer shall be subject to\n\nany additional reasonable restrictions as the Commissioner shall\n\ndeem prudent.\n\nE. Insurers shall report, on a form prescribed by the\n\nCommissioner and filed with their annual statement, all funds\n\ncollected through policy fees or assessments which were collected in\n\nresponse to a written request to increase inadequate reserves from\n\nthe Commissioner made pursuant to the provisions of this section.\n\nF. 1. Insurers domiciled in this state that are issuing\n\npolicies of medical professional liability insurance to physicians,\n\nallied health care professionals and health care institutions, as\n\ndefined by Section 2202 of this title, on July 1, 2004, are granted\n\na moratorium on the applicability of any provisions of the laws of\n\nthis state that require the maintenance of adequate reserves. The\n\nmoratorium shall be in effect until December 31, 2008.\n\n2. Any insurer eligible to utilize the moratorium provided by\n\nthis section that elects to utilize the moratorium shall notify the\n\nCommissioner in writing of the election prior to the application of\n\nthe moratorium to the insurer.\n\n3. Any policy issued by an insurer utilizing the moratorium\n\nprovided by this section shall, during the moratorium period,\n\ncontain the following notice in ten-point type on the front page and\n\nthe declaration page:\n\nNOTICE\n\nThe insurer is not subject to the insurance laws and regulations\n\nrelated to maintenance of reserves and surplus.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"80a9f7e62a68a303e7a4a4b530a3d1eaa99e779121f6e7402137f4dbf5a2a206","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-1508","next":"us-ok/okla.-stat.-tit.-36-36-1509.1"},"notice":"GroundRules: Original legal text. Not legal advice."}