{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-1922","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-1922","heading":"Power and authority of the receiver","body":"A. The receiver shall have the power:\n\n1. To hold hearings, to subpoena witnesses for the purpose of\n\ncompelling their attendance, to administer oaths, to examine any\n\nperson under oath, and to compel any persons to subscribe to their\n\ntestimony after it has been correctly reduced to writing; and in\n\nconnection therewith to require the production of any books, papers,\n\nrecords, data or other documents, electronic or paper, that the\n\nreceiver deems relevant to the inquiry;\n\n2. To audit the books and records of all agents of the insurer,\n\nincluding, but not limited to, third-party administrators, and\n\naffiliated and nonaffiliated management companies insofar as those\n\nrecords relate to the business activities of the insurer;\n\n3. To conduct litigation, including:\n\na. to continue to prosecute or defend, and to institute\n\nin the name of the insurer or in the receiver's own\n\nname, suits or other legal proceedings, in this state\n\nor elsewhere,\n\nb. to abandon the prosecution of claims the receiver\n\ndeems unprofitable to pursue further,\n\nc. to collect all debts and monies due and claims\n\nbelonging to the insurer, wherever located, and in\n\nfurtherance of this purpose to institute action in\n\nthis or other jurisdictions in order to forestall\n\ngarnishment and attachment proceedings against those\n\ndebts, including the power to sell, compound,\n\ncompromise or assign debts for purposes of collection\n\nupon such terms and conditions as the receiver deems\n\nconsistent with the purpose of the Uniform Insurers\n\nLiquidation Act, and pursue any creditor's remedies\n\navailable to enforce the insurer's claims,\n\nd. to assert all defenses available to the insurer as\n\nagainst third persons, including statutes of\n\nlimitation, statutes of frauds and the defense of\n\nusury. A waiver of any defense by the insurer after a\n\npetition for supervision, conservation, receivership,\n\nrehabilitation or liquidation has been filed shall not\n\nbind the receiver. Whenever a guaranty association\n\nhas an obligation to defend any suit, the receiver\n\nshall defer to that obligation and may defend only in\n\ncooperation with the guaranty association or in the\n\nabsence of the guaranty association's defense,\n\ne. to exercise and enforce all the rights, remedies and\n\npowers of any creditor, shareholder, policyholder or\n\nmember, including any power to avoid any transfer,\n\ntransaction or lien that may be avoidable under the\n\nUniform Insurers Liquidation Act or otherwise, and\n\nf. to intervene in any proceeding wherever instituted\n\nthat might lead to the appointment of a receiver or\n\ntrustee for the insurer or any of its property, and to\n\nact as the receiver or trustee whenever the\n\nappointment is offered.\n\nThe receiver shall have exclusive standing in any action that\n\nmay exist to assert claims or defenses on behalf of the creditors,\n\nmembers, policyholders or shareholders of the insurer or the public\n\nagainst any person, except to the extent that a claim is personal to\n\na specific creditor, member, policyholder or shareholder and\n\nrecovery on the claim would not inure to the benefit of the estate.\n\nIf the receiver sells or dissolves the corporate entity or charter\n\nof the insurer, the receiver shall have the power to apply to any\n\ncourt in this state or elsewhere for leave to substitute the\n\nreceiver for the insurer as a party. This paragraph does not\n\ninfringe or impair any of the rights provided to a guaranty\n\nassociation pursuant to its enabling statute or otherwise;\n\n4. a. To conduct public or private sales of the insurer's\n\nproperty, and thereby to acquire, hypothecate,\n\nencumber, lease, sell, improve, transfer, abandon or\n\notherwise dispose of or deal with any property of the\n\ninsurer at its market value or upon such terms and\n\nconditions as are fair and reasonable, and to settle\n\nor resolve any claim or lawsuit brought by the\n\nreceiver on behalf of the insurer or pending when a\nic or private sales of the insurer's\n\nproperty, and thereby to acquire, hypothecate,\n\nencumber, lease, sell, improve, transfer, abandon or\n\notherwise dispose of or deal with any property of the\n\ninsurer at its market value or upon such terms and\n\nconditions as are fair and reasonable, and to settle\n\nor resolve any claim or lawsuit brought by the\n\nreceiver on behalf of the insurer or pending when a\n\npetition for supervision, conservation, receivership,\n\nrehabilitation or liquidation is filed, or commute or\n\nsettle any claim of reinsurance under any contract of\n\nreinsurance,\n\nb. to transfer either proceeds of or rights to payment\n\nunder ceding reinsurance agreements covering policies\n\nto a third-party transferee. A transfer of rights to\n\npayment shall only be made with the consent of the\n\nreinsurer and in conjunction with the transfer to such\n\nperson of all rights and obligations relating to the\n\ntransferred ceding reinsurance agreement and of all\n\nproperty, including any guarantees or other credit\n\nenhancement, securing any claims of each party under\n\neach reinsurance agreement. The consent of a\n\nreinsurer under this subparagraph shall not be\n\nunreasonably withheld. If the receiver believes that\n\nthe consent of a reinsurer was unreasonably withheld,\n\nthe receiver may petition the receivership court to\n\norder binding arbitration. The arbitration shall be\n\nconducted in accordance with the arbitration\n\nprocedures in the reinsurance contract, or if no such\n\nprovisions exist, in accordance with the procedures of\n\nthe American Arbitration Association. A transferee\n\nunder this subparagraph shall have the rights to\n\ncollect and enforce collection of the reinsurance for\n\nthe amount payable to the ceding insurer or to its\n\nreceiver, without diminution because of the insolvency\n\nor because the receiver has failed to pay all or a\n\nportion of the claim. The transfer of these rights\n\nshall not give rise to any defense regarding the\n\nreinsurer's obligations under the reinsurance\n\nagreement regardless of whether the agreement or other\n\napplicable law prohibits the transfer of rights under\n\nthe reinsurance agreement. Except as provided in this\n\nsubparagraph, any transfer of rights pursuant to this\n\nprovision shall not impair any rights or defenses of\n\nthe reinsurer that existed prior to the transfer or\n\nwould have existed in the absence of the transfer.\n\nExcept as otherwise provided in this subparagraph, any\n\ntransfer of rights pursuant to this provision shall\n\nnot relieve the transferee or the receiver from\n\nobligations owed to the reinsurer pursuant to the\n\nreinsurance or other agreement, and\n\nc. to execute, acknowledge and deliver any deeds,\n\nassignments, releases and other instruments necessary\n\nor proper to effectuate any sale of property or other\n\ntransaction in connection with the liquidation or\n\nrehabilitation and to file any necessary documents for\n\nrecord in the office of any recorder of deeds or\n\nrecord office in this state or elsewhere where\n\nproperty of the insurer is located;\n\n5. a. To use property of the estate to transfer policy\n\nobligations to a solvent assuming insurer, if the\n\ntransfer can be arranged without prejudice to\n\napplicable priorities under Section 1927.1 of this\n\ntitle,\n\nb. to use property of the estate to transfer the\n\ninsurer's obligations under surety bonds and surety\n\nundertakings, and collateral held by the insurer with\n\nrespect to the reimbursement obligations of the\n\nprincipals under those surety bonds and surety\n\nundertakings, to a solvent assuming insurer, if the\n\ntransfer can be arranged without prejudice to\n\napplicable priorities under Section 1927.1 of this\n\ntitle; and if the receivership court so orders, the\n\nestate shall have no further liability under the\n\ntransferred policies, surety bonds, or surety\n\nundertakings after the transfer is made, and\n\nc. upon the issuance of an order of liquidation and a\n\nfinding of insolvency, policies or portions of\nhe\n\ntransfer can be arranged without prejudice to\n\napplicable priorities under Section 1927.1 of this\n\ntitle; and if the receivership court so orders, the\n\nestate shall have no further liability under the\n\ntransferred policies, surety bonds, or surety\n\nundertakings after the transfer is made, and\n\nc. upon the issuance of an order of liquidation and a\n\nfinding of insolvency, policies or portions of\n\npolicies of life, disability income, long-term care or\n\nhealth insurance or annuities covered by one or more\n\nguaranty associations, under applicable law, shall\n\ncontinue in force, subject to the terms of the policy,\n\nincluding any terms restructured pursuant to a court-\n\napproved rehabilitation plan, to the extent necessary\n\nto permit the guaranty associations to discharge their\n\nstatutory obligations. Policies or portions of\n\npolicies of life, disability income, long-term care or\n\nhealth insurance or annuities, not covered by one or\n\nmore guaranty associations, and other types of\n\npolicies, shall terminate by operation of law, except\n\nto the extent the receiver proposes and the\n\nreceivership court approves the use of property of the\n\nestate, consistent with subparagraphs a and b of this\n\nparagraph, for the purpose of continuing the contracts\n\nor coverage by transferring them to an assuming\n\nreinsurer;\n\n6. To borrow money on the security of the property of the\n\nestate or without security and to execute and deliver all documents\n\nnecessary to that transaction for the purpose of facilitating the\n\nliquidation or rehabilitation. Any such funds borrowed may be\n\nrepaid as an administrative expense and have priority over any other\n\nclaims in Class 1 under the priority of distribution in Section\n\n1927.1 of this title;\n\n7. To enter into contracts, and to assume or reject any\n\nexecutory contract or unexpired lease to which the insurer is a\n\nparty; provided, however, if the receiver is bound by any provision\n\nof any contract of or by the insurer which requires arbitration,\n\nsuch arbitration shall be conducted in the State of Oklahoma;\n\nnotwithstanding the foregoing, or any other provision of this\n\nchapter, no receiver shall have the power to reject, disavow or\n\nrepudiate any Federal Home Loan Bank security agreement, or any\n\npledge, security, collateral or guarantee agreement or any other\n\nsimilar arrangement or credit enhancement relating to such Federal\n\nHome Loan Bank security agreement;\n\n8. To take possession of the records and property of the\n\ninsurer. Guaranty associations shall have reasonable access to the\n\nrecords of the insurer necessary for them to carry out their\n\nstatutory obligations;\n\n9. To deposit in one or more banks in this state sums required\n\nfor meeting current administration expenses and dividend\n\ndistributions;\n\n10. To invest the assets of the estate;\n\n11. To enter into agreements with any receivers or\n\ncommissioners of any other states; and\n\n12. To exercise all powers now held or hereafter conferred upon\n\nreceivers by the applicable statutory and common law of this state\n\nnot inconsistent with the provisions of the Uniform Insurers\n\nLiquidation Act.\n\nB. The receiver is vested with all the rights of the entity or\n\nentities in receivership.\n\nC. The enumeration, in this section, of the powers and\n\nauthority of the receiver shall not be construed as a limitation\n\nupon the receiver, nor shall it exclude in any manner the right to\n\ndo other acts not specifically enumerated or otherwise provided for,\n\nto the extent necessary or appropriate for the accomplishment of or\n\nin aid of the purpose of liquidation or rehabilitation.\n\nD. The receiver shall not be obligated to defend any action\n\nagainst the insurer or insured. An insured not defended by a\n\nguaranty association may provide his or her own defense, and include\n\nthe cost of the defense as part of any claim of the insured against\nrovided for,\n\nto the extent necessary or appropriate for the accomplishment of or\n\nin aid of the purpose of liquidation or rehabilitation.\n\nD. The receiver shall not be obligated to defend any action\n\nagainst the insurer or insured. An insured not defended by a\n\nguaranty association may provide his or her own defense, and include\n\nthe cost of the defense as part of any claim of the insured against\n\nthe estate, if the defense was an obligation of the insurer. The\n\nright of the receiver to contest coverage on a particular claim\n\nshall be deemed preserved without the necessity of an express\n\nreservation of rights.","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":"db53273eaf1151c97ff59c82951dd16d892f7358a79ffffab8110bf1339822bb","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-1921","next":"us-ok/okla.-stat.-tit.-36-36-1923"},"notice":"GroundRules: Original legal text. Not legal advice."}