{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-2004","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-2004","heading":"Definitions","body":"As used in the Oklahoma Property and Casualty Insurance Guaranty\n\nAssociation Act:\n\n1. \"Affiliate\" means a person who directly or indirectly,\n\nthrough one or more intermediaries, controls, is controlled by, or\n\nis under common control with another person on December 31 of the\n\nyear next preceding the date the insurer becomes an insolvent\n\ninsurer;\n\n2. \"Association\" means the Oklahoma Property and Casualty\n\nInsurance Guaranty Association as created in Section 2005 of this\n\ntitle;\n\n3. \"Assumed claims transaction\" means:\n\na. policy obligations that have been assumed by the\n\ninsolvent insurer, prior to the entry of a final order\n\nof liquidation, pursuant to a plan, approved by a\n\ndomestic commissioner of the assuming insurer, which\n\ntransfers the direct policy obligations and future\n\npolicy renewals from one insurer to another insurer,\n\nor\n\nb. an assumption reinsurance transaction in which all of\n\nthe following have occurred:\n\n(1) the insolvent insurer assumed, prior to the entry\n\nof a final order of liquidation, the claim or\n\npolicy obligations of another insurer under the\n\nclaims or policies,\n\n(2) the assumption of the claim or policy obligations\n\nhas been approved, if an approval is required, by\n\nthe appropriate regulatory authorities, and\n\n(3) as a result of the assumption, the claim or\n\npolicy obligations became the direct obligations\n\nof the insolvent insurer through novation of the\n\nclaims or policies;\n\n4. \"Claimant\" means any person instituting a covered claim;\n\nprovided that no person who is an affiliate of the insolvent insurer\n\nmay be a claimant;\n\n5. \"Commissioner\" means the Insurance Commissioner of Oklahoma;\n\n6. \"Control\" means the possession, direct or indirect, of the\n\npower to direct or cause the direction of the management and\n\npolicies of a person, whether through the ownership of voting\n\nsecurities, by contract other than a commercial contract for goods\n\nor nonmanagement services, or otherwise, unless the power is the\n\nresult of an official position with or corporate office held by the\n\nperson. Control shall be presumed to exist if a person, directly or\n\nindirectly, owns, controls, holds with the power to vote, or holds\n\nproxies representing ten percent (10%) or more of the voting\n\nsecurities of any other person. This presumption may be rebutted by\n\na showing that control does not exist in fact;\n\n7. \"Covered claim\" means:\n\na. an unpaid claim, including one of unearned premiums,\n\nsubmitted by a claimant, which arises out of and is\n\nwithin the coverage and is subject to the applicable\n\nlimits of an insurance policy to which this act\n\napplies, if the insurer becomes an insolvent insurer\n\nafter the effective date of this act and the policy\n\nwas issued by the insurer, and:\n\n(1) the claimant or insured is a resident of this\n\nstate at the time of the insured event, provided\n\nthat for entities other than an individual, the\n\nresidence of a claimant or insured is the state\n\nin which its principal place of business is\n\nlocated at the time of the insured event, or\n\n(2) the claim is a first-party claim for damage to\n\nproperty with a permanent location in this state,\n\nb. \"Covered claim\" includes claim obligations that arose\n\nthrough the issuance of an insurance policy by a\n\nmember insurer, which are later allocated,\n\ntransferred, merged into, novated, assumed by, or\n\notherwise made the sole responsibility of a member or\n\nnonmember insurer if:\n\n(1) the original member insurer has no remaining\n\nobligations on the policy after the transfer,\n\n(2) a final order of liquidation with a finding of\n\ninsolvency has been entered against the insurer\n\nthat assumed the member's coverage obligations by\n\na court of competent jurisdiction in the\n\ninsurer's state of domicile,\nr\n\notherwise made the sole responsibility of a member or\n\nnonmember insurer if:\n\n(1) the original member insurer has no remaining\n\nobligations on the policy after the transfer,\n\n(2) a final order of liquidation with a finding of\n\ninsolvency has been entered against the insurer\n\nthat assumed the member's coverage obligations by\n\na court of competent jurisdiction in the\n\ninsurer's state of domicile,\n\n(3) the claim would have been a covered claim, as\n\ndefined in subparagraph a of paragraph 7 of this\n\nsection, if the claim had remained the\n\nresponsibility of the original member insurer and\n\nthe order of liquidation had been entered against\n\nthe original member insurer, with the same claim\n\nsubmission date and liquidation date, and\n\n(4) in cases where the member's coverage obligations\n\nwere assumed by a nonmember insurer, the\n\ntransaction received prior regulatory or judicial\n\napproval,\n\nc. \"Covered claim\" shall not include:\n\n(1) any amount awarded as punitive or exemplary\n\ndamages,\n\n(2) any amount sought as a return of premium under\n\nany retrospective rating plan,\n\n(3) any amount due any reinsurer, insurer, insurance\n\npool, or underwriting association, health\n\nmaintenance organization, hospital plan\n\ncorporation, professional health service\n\ncorporation or self-insurer as subrogation\n\nrecoveries, reinsurance recoveries, contribution,\n\nindemnification or otherwise. No claim for any\n\namount due any reinsurer, insurer, insurance\n\npool, or underwriting association, health\n\nmaintenance organization, hospital plan\n\ncorporation, professional health service\n\ncorporation or self-insurer may be asserted\n\nagainst a person insured under a policy issued by\n\nan insolvent insurer other than to the extent the\n\nclaim exceeds the association obligation\n\nlimitations set forth in Section 2007 of this\n\ntitle,\n\n(4) any claims excluded pursuant to Section 2020.2 of\n\nthis title due to the high net worth of an\n\ninsured,\n\n(5) any first-party claims by an insured that is an\n\naffiliate of the insolvent company,\n\n(6) any fee or other amount relating to goods or\n\nservices sought by or on behalf of any attorney\n\nor other provider of goods and services retained\n\nby the insolvent insurer or an insured prior to\n\nthe date it was determined to be insolvent,\n\n(7) any fee or other amount sought by or on behalf of\n\nany attorney or other provider of goods and\n\nservices retained by any insured or claimant in\n\nconnection with the assertion or prosecution of\n\nany claim, covered or otherwise, against the\n\nAssociation,\n\n(8) any claims for interest,\n\n(9) any claim filed with the association or a\n\nliquidator for protection afforded under the\n\npolicy of the insured for incurred-but-not-\n\nreported losses, or\n\n(10) notwithstanding any other provision of this act\n\nor any other law to the contrary, a claim that is\n\nfiled with the Association on the earlier of:\n\n(a) the final date set by the court for filing\n\nof claims against the liquidator or receiver\n\nof an insolvent insurer, or\nociation or a\n\nliquidator for protection afforded under the\n\npolicy of the insured for incurred-but-not-\n\nreported losses, or\n\n(10) notwithstanding any other provision of this act\n\nor any other law to the contrary, a claim that is\n\nfiled with the Association on the earlier of:\n\n(a) the final date set by the court for filing\n\nof claims against the liquidator or receiver\n\nof an insolvent insurer, or\n\n(b) a date that is later than eighteen (18)\n\nmonths after the date of the order of\n\nliquidation or that is unknown and\n\nunreported as of said date; provided,\n\nhowever, that this shall not include any\n\nclaim for workers' compensation benefits\n\npursuant to Title 85A of the Oklahoma\n\nStatutes and the applicable rules of OAC\n\nTitle 810;\n\n8. \"Cybersecurity insurance\", for purposes of this act,\n\nincludes first-party and third-party coverage, in a policy or\n\nendorsement, written on a direct, admitted basis for losses and loss\n\nmitigation arising out of or relating to data privacy breaches,\n\nunauthorized information network, security intrusions, computer\n\nviruses, ransomware, cyber extortion, identity theft, and similar\n\nexposures;\n\n9. \"Insolvent insurer\" means an insurer that is licensed to\n\ntransact insurance in this state either at the time the policy was\n\nissued, when the obligation with respect to the covered claim was\n\nassumed under an assumed claims transaction, or when the insured\n\nevent occurred and against whom a final order of liquidation has\n\nbeen entered after the effective date of this act with a finding of\n\ninsolvency by a court of competent jurisdiction in the state of\n\ndomicile of the insurer;\n\n10. \"Insured\" means any named insured, any additional insured,\n\nany vendor, lessor or any other party identified as an insured under\n\nthe policy;\n\n11. a. \"Member insurer\" means any person who:\n\n(1) writes any kind of direct insurance to which the\n\nOklahoma Property and Casualty Insurance Guaranty\n\nAssociation Act applies pursuant to Section 2003\n\nof this title, including the exchange of\n\nreciprocal or inter-insurance contracts, and\n\n(2) is licensed to transact insurance in this state,\n\nexcept those insurers enumerated in Section 110\n\nof this title or those insurers that are\n\notherwise exempted by law or order of the\n\nCommissioner;\n\nb. An insurer shall cease to be a member insurer\n\neffective on the day following the termination or\n\nexpiration of its license to transact the kinds of\n\ninsurance to which the Oklahoma Property and Casualty\n\nInsurance Guaranty Association Act applies; however,\n\nthe insurer shall be liable as a member insurer for\n\nany and all obligations, including but not limited to\n\nobligations for assessments levied after the\n\ntermination or expiration, which relate to any insurer\n\nthat becomes an insolvent insurer prior to the\n\ntermination or expiration of the license of the\n\ninsurer; and\n\nc. \"Member insurer\" does not mean:\n\n(1) a \"surplus lines insurer\" or a person writing\n\nsurplus lines insurance as defined in Section\n\n1101.1 of this title, or\n\n(2) a \"risk retention group\" as defined in Section\n\n6453 of this title, or\n\nrer\n\nthat becomes an insolvent insurer prior to the\n\ntermination or expiration of the license of the\n\ninsurer; and\n\nc. \"Member insurer\" does not mean:\n\n(1) a \"surplus lines insurer\" or a person writing\n\nsurplus lines insurance as defined in Section\n\n1101.1 of this title, or\n\n(2) a \"risk retention group\" as defined in Section\n\n6453 of this title, or\n\n(3) a \"captive insurance company\" as defined in\n\nSection 6470.2 of this title;\n\n12. \"Net direct written premiums\" means direct gross premiums\n\nwritten in this state on insurance policies to which this act\n\napplies, including but not limited to policy and membership fees,\n\nless the following amounts:\n\na. return premiums,\n\nb. premiums on policies not taken, and\n\nc. dividends paid or credited to policyholders on direct\n\nbusiness. \"Net direct written premiums\" does not\n\ninclude premiums on contracts between insurers or\n\nreinsurers;\n\n13. \"Novation\" means that the assumed claim or policy\n\nobligations became the direct obligations of the insolvent insurer\n\nthrough consent of the policyholder and that thereafter the ceding\n\ninsurer or entity initially obligated under the claims or policies\n\nis released by the policyholder from performing its claim or policy\n\nobligations. Consent shall be express and an implied novation shall\n\nnot be allowed for the purposes, implementation and application of\n\nthe Oklahoma Property and Casualty Insurance Guaranty Association\n\nAct;\n\n14. \"Person\" means the individual or other entities as defined\n\nin Section 104 of this title;\n\n15. \"Receiver\" means liquidator, rehabilitator, conservator or\n\nancillary receiver, as the context requires; and\n\n16. \"Self-insurer\" means a person who covers its liability\n\nthrough a qualified individual or group self-insurance program or\n\nany other formal program created for the specific purpose of\n\ncovering liabilities typically covered by insurance.","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":"42263b3e4c0590cf08a76146be8b93803b8aeaca48b7a85c079af14f6fca1c92","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-2003","next":"us-ok/okla.-stat.-tit.-36-36-2005"},"notice":"GroundRules: Original legal text. Not legal advice."}