{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-2028","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-2028","heading":"Impaired or insolvent insurers","body":"A. If a member insurer is an impaired insurer, the Oklahoma\n\nLife and Health Insurance Guaranty Association may, in its\n\ndiscretion, and subject to any conditions imposed by the Association\n\nthat do not impair the contractual obligations of the impaired\n\ninsurer and that are approved by the Insurance Commissioner:\n\n1. Guarantee, assume, reissue or reinsure, or cause to be\n\nguaranteed, assumed, reissued or reinsured, any or all of the\n\npolicies or contracts of the impaired insurer; or\n\n2. Provide monies, pledges, notes, guarantees or other means as\n\nare proper to effectuate paragraph 1 of this subsection, and assure\n\npayment of the contractual obligations of the impaired insurer\n\npending action under paragraph 1 of this subsection.\n\nB. If a member insurer is an insolvent insurer, the Association\n\nshall, in its discretion, either:\n\n1. a. (1) guarantee, assume, reissue or reinsure, or cause\n\nto be guaranteed, assumed, reissued or reinsured,\n\nthe policies or contracts of the insolvent\n\ninsurer, or\n\n(2) assure payment of the contractual obligations of\n\nthe insolvent insurer, and\n\nb. provide monies, pledges, loans, notes, guarantees or\n\nother means as are reasonably necessary to discharge\n\nthe duties of the Association; or\n\n2. Provide benefits and coverages in accordance with the\n\nfollowing provisions:\n\na. with respect to policies and contracts, assure payment\n\nof benefits that would have been payable under the\n\npolicies or contracts of the insolvent insurer for\n\nclaims incurred:\n\n(1) with respect to group policies and contracts, not\n\nlater than the earlier of the next renewal date\n\nunder those policies or contracts or forty-five\n\n(45) days, but in no event less than thirty (30)\n\ndays, after the date on which the Association\n\nbecomes obligated with respect to the policies\n\nand contracts, or\n\n(2) with respect to non-group policies, contracts,\n\nand annuities not later than the earlier of the\n\nnext renewal date, if any, under the policies or\n\ncontracts for one (1) year, but in no event less\n\nthan thirty (30) days, from the date on which the\n\nAssociation becomes obligated with respect to the\n\npolicies or contracts,\n\nb. make diligent efforts to provide all known insureds,\n\nenrollees or annuitants for non-group policies and\n\ncontracts, or group policy or contract owners with\n\nrespect to group policies and contracts, thirty (30)\n\ndays' notice of the termination of the benefits\n\nprovided pursuant to subparagraph a of this paragraph,\n\nc. with respect to non-group policies and contracts\n\ncovered by the Association, make available to each\n\nknown insured, enrollee or annuitant, or owner if\n\nother than the insured, enrollee or annuitant, and\n\nwith respect to an individual formerly an insured,\n\nenrollee or annuitant under a group policy or contract\n\nwho is not eligible for replacement group coverage,\n\nmake available substitute coverage on an individual\n\nbasis in accordance with the provisions of\n\nsubparagraph d of this paragraph, if the insureds,\n\nenrollees or annuitants had a right under law or the\n\nterminated policy, contract or annuity to convert\n\ncoverage to individual coverage or to continue an\n\nindividual policy, contract or annuity in force until\n\na specified age or for a specified time, during which\n\nthe insurer or health maintenance organization had no\n\nright unilaterally to make changes in any provision of\n\nthe policy, contract or annuity or had a right only to\n\nmake changes in premium by class,\n\nd. (1) in providing the substitute coverage required\n\nunder subparagraph c of this paragraph, the\n\nAssociation may offer either to reissue the\n\nterminated coverage or to issue an alternative\n\npolicy or contract at actuarially justified\n\nrates, subject to the prior approval of the\n\nInsurance Commissioner,\nonly to\n\nmake changes in premium by class,\n\nd. (1) in providing the substitute coverage required\n\nunder subparagraph c of this paragraph, the\n\nAssociation may offer either to reissue the\n\nterminated coverage or to issue an alternative\n\npolicy or contract at actuarially justified\n\nrates, subject to the prior approval of the\n\nInsurance Commissioner,\n\n(2) alternative or reissued policies or contracts\n\nshall be offered without requiring evidence of\n\ninsurability, and shall not provide for any\n\nwaiting period or exclusion that would not have\n\napplied under the terminated policy or contract,\n\nand\n\n(3) the Association may reinsure any alternative or\n\nreissued policy or contract,\n\ne. (1) alternative policies or contracts adopted by the\n\nAssociation shall be subject to the approval of\n\nthe Insurance Commissioner. The Association may\n\nadopt alternative policies or contracts of\n\nvarious types for future issuance without regard\n\nto any particular impairment or insolvency,\n\n(2) alternative policies or contracts shall contain\n\nat least the minimum statutory provisions\n\nrequired in this state and provide benefits that\n\nshall not be unreasonable in relation to the\n\npremium charged. The Association shall set the\n\npremium in accordance with a table of rates that\n\nit shall adopt. The premium shall reflect the\n\namount of insurance to be provided and the age\n\nand class of risk of each insured, but shall not\n\nreflect any changes in the health of the insured\n\nafter the original policy or contract was last\n\nunderwritten,\n\n(3) any alternative policy or contract issued by the\n\nAssociation shall provide coverage of a type\n\nsimilar to that of the policy or contract issued\n\nby the impaired or insolvent insurer, as\n\ndetermined by the Association,\n\nf. if the Association elects to reissue terminated\n\ncoverage at a premium rate different from that charged\n\nunder the terminated policy or contract, the premium\n\nshall be actuarially justified and set by the\n\nAssociation in accordance with the amount of insurance\n\nor coverage provided and the age and class of risk,\n\nsubject to prior approval of the Insurance\n\nCommissioner,\n\ng. the obligations of the Association with respect to\n\ncoverage under any policy or contract of the impaired\n\nor insolvent insurer or under any reissued or\n\nalternative policy or contract shall cease on the date\n\nthe coverage or policy or contract is replaced by\n\nanother similar policy or contract by the policy or\n\ncontract owner, the insured, enrollee or the\n\nAssociation,\n\nh. when proceeding under paragraph 2 of subsection B of\n\nthis section with respect to a policy or contract\n\ncarrying guaranteed minimum interest rates, the\n\nAssociation shall assure the payment or crediting of a\n\nrate of interest consistent with subparagraph c of\n\nparagraph 2 of subsection B of Section 2025 of this\n\ntitle.\n\nC. Nonpayment of premiums within thirty-one (31) days after the\n\ndate required under the terms of any guaranteed, assumed,\n\nalternative or reissued policy or contract or substitute coverage\n\nshall terminate the Association's obligations under the policy,\n\ncontract or coverage under the Oklahoma Life and Health Insurance\n\nGuaranty Association Act with respect to the policy, contract or\n\ncoverage, except with respect to any claims incurred or any net cash\n\nsurrender value which may be due in accordance with the provisions\n\nof the Oklahoma Life and Health Insurance Guaranty Association Act.\n\nD. Premiums due for coverage after entry of an order of\n\nliquidation of an insolvent insurer shall belong to and be payable\n\nat the direction of the Association. If the liquidator of an\n\ninsolvent insurer requests, the Association shall provide a report\n\nto the liquidator regarding the premium collected by the\n\nAssociation. The Association shall be liable for unearned premiums\n\ndue to policy or contract owners arising after the entry of the\n\norder.\nof\n\nliquidation of an insolvent insurer shall belong to and be payable\n\nat the direction of the Association. If the liquidator of an\n\ninsolvent insurer requests, the Association shall provide a report\n\nto the liquidator regarding the premium collected by the\n\nAssociation. The Association shall be liable for unearned premiums\n\ndue to policy or contract owners arising after the entry of the\n\norder.\n\nE. The protection provided by the Oklahoma Life and Health\n\nInsurance Guaranty Association Act shall not apply where any\n\nguaranty protection is provided to residents of this state by the\n\nlaws of the domiciliary state or jurisdiction of the impaired or\n\ninsolvent insurer other than this state.\n\nF. In carrying out its duties under subsection B of this\n\nsection the Association may, subject to approval by a court in this\n\nstate:\n\n1. Impose permanent policy or contract liens in connection with\n\na guarantee, assumption or reinsurance agreement, if the Association\n\nfinds that the amounts which can be assessed under this act are less\n\nthan the amounts needed to assure full and prompt performance of the\n\nduties of the Association under the Oklahoma Life and Health\n\nInsurance Guaranty Association Act, or that the economic or\n\nfinancial conditions as they affect member insurers are sufficiently\n\nadverse to render the imposition of permanent policy or contract\n\nliens, to be in the public interest; and\n\n2. Impose temporary moratoriums or liens on payments of cash\n\nvalues and policy loans, or any other right to withdraw funds held\n\nin conjunction with policies or contracts, in addition to any\n\ncontractual provisions for deferral of cash or policy loan value.\n\nIn addition, in the event of a temporary moratorium or moratorium\n\ncharge imposed by the receivership court on payment of cash values\n\nor policy loans, or on any other right to withdraw funds held in\n\nconjunction with policies or contracts, out of the assets of the\n\nimpaired or insolvent insurer, the Association may defer the payment\n\nof cash values, policy loans or other rights by the Association for\n\nthe period of the moratorium or moratorium charge imposed by the\n\nreceivership court, except for claims covered by the Association to\n\nbe paid in accordance with a hardship procedure established by the\n\nliquidator or rehabilitator and approved by the receivership court.\n\nG. A deposit in this state, held pursuant to law or required by\n\nthe Commissioner for the benefit of creditors, including but not\n\nlimited to policy or contract owners, not turned over to the\n\ndomiciliary liquidator upon the entry of a final order of\n\nliquidation or order approving a rehabilitation plan of a member\n\ninsurer domiciled in this state or in a reciprocal state, shall be\n\npromptly paid by the Association. The Association shall be entitled\n\nto retain a portion of any amount so paid to it equal to the\n\npercentage determined by dividing the aggregate amount of policy or\n\ncontract owners claims related to that insolvency for which the\n\nAssociation has provided statutory benefits by the aggregate amount\n\nof all claims by the policy or contract owners in this state related\n\nto that insolvency and shall remit to the domiciliary receiver the\n\namount so paid to the Association less the amount retained pursuant\n\nto this subsection. Any amount so paid to the Association and\n\nretained by it shall be treated as a distribution of estate assets\n\npursuant to applicable state receivership laws dealing with early\n\naccess disbursements.\n\nH. If the Association fails to act within a reasonable period\n\nof time with respect to an insolvent insurer, as provided in\n\nsubsection B of this section, the Commissioner shall have the powers\n\nand duties of the Association under the Oklahoma Life and Health\n\nInsurance Guaranty Association Act with respect to the insolvent\n\ninsurer.\n\nI. The Association may render assistance and advice to the\nts.\n\nH. If the Association fails to act within a reasonable period\n\nof time with respect to an insolvent insurer, as provided in\n\nsubsection B of this section, the Commissioner shall have the powers\n\nand duties of the Association under the Oklahoma Life and Health\n\nInsurance Guaranty Association Act with respect to the insolvent\n\ninsurer.\n\nI. The Association may render assistance and advice to the\n\nCommissioner, upon the request of the Commissioner, concerning\n\nrehabilitation, payment of claims, continuance of coverage, or the\n\nperformance of other contractual obligations of an impaired or\n\ninsolvent insurer.\n\nJ. The Association shall have standing to appear or intervene\n\nbefore a court or agency in this state which has jurisdiction over\n\nan impaired or insolvent insurer concerning which the Association is\n\nor may become obligated under the Oklahoma Life and Health Insurance\n\nGuaranty Association Act or with jurisdiction over any person or\n\nproperty against which the Association may have rights through\n\nsubrogation or otherwise. Standing shall extend to all matters\n\ngermane to the powers and duties of the Association including, but\n\nnot limited to, proposals for reinsuring, reissuing, modifying or\n\nguaranteeing the policies or contracts of the impaired or insolvent\n\ninsurer and the determination of the policies or contracts and\n\ncontractual obligations. The Association shall also have the right\n\nto appear or intervene before a court or agency in another state\n\nwith jurisdiction over an impaired or insolvent insurer for which\n\nthe Association is or may become obligated or with jurisdiction over\n\nany person or property against whom the Association may have rights\n\nthrough subrogation or otherwise.\n\nK. 1. Any person receiving benefits under the Oklahoma Life\n\nand Health Insurance Guaranty Association Act shall be deemed to\n\nhave assigned the rights under, and any causes of action against any\n\nperson for losses arising under, resulting from or otherwise\n\nrelating to, the covered policy or contract to the Association to\n\nthe extent of the benefits received because of this act, whether the\n\nbenefits are payments of or on account of contractual obligations,\n\ncontinuation of coverage or provision of substitute or alternative\n\npolicies, contracts or coverages. The Association may require an\n\nassignment to it of the rights and cause of action by any enrollee,\n\npayee, policy or contract owner, beneficiary, insured or annuitant\n\nas a condition precedent to the receipt of any rights or benefits\n\nconferred by this act upon the person.\n\n2. The subrogation rights of the Association under this\n\nsubsection shall have the same priority against the assets of the\n\nimpaired or insolvent insurer as that possessed by the person\n\nentitled to receive benefits under the Oklahoma Life and Health\n\nInsurance Guaranty Association Act.\n\n3. In addition to paragraphs 1 and 2 of this subsection, the\n\nAssociation shall have all common law rights of subrogation and any\n\nother equitable or legal remedy that would have been available to\n\nthe impaired or insolvent insurer or owner, beneficiary, enrollee or\n\npayee of a policy or contract with respect to the policy or\n\ncontracts, including without limitation, in the case of a structured\n\nsettlement annuity, any rights of the owner, beneficiary or payee of\n\nthe annuity, to the extent of benefits received pursuant to the\n\nOklahoma Life and Health Insurance Guaranty Association Act, against\n\na person originally or by succession responsible for the losses\n\narising from the personal injury relating to the annuity or payment\n\ntherefor, excepting any person responsible solely by reason of\n\nserving as an assignee in respect of a qualified assignment under\n\nInternal Revenue Code Section 130.\n\n4. If paragraphs 1 through 3 of this subsection are invalid or\n\nineffective with respect to any person or claim for any reason, the\nsion responsible for the losses\n\narising from the personal injury relating to the annuity or payment\n\ntherefor, excepting any person responsible solely by reason of\n\nserving as an assignee in respect of a qualified assignment under\n\nInternal Revenue Code Section 130.\n\n4. If paragraphs 1 through 3 of this subsection are invalid or\n\nineffective with respect to any person or claim for any reason, the\n\namount payable by the Association with respect to the related\n\ncovered obligations shall be reduced by the amount realized by any\n\nother person with respect to the person or claim that is\n\nattributable to the policies or contracts, or portion thereof,\n\ncovered by the Association.\n\n5. If the Association has provided benefits with respect to a\n\ncovered obligation and a person recovers amounts as to which the\n\nAssociation has rights as described in paragraphs 1 through 4 of\n\nthis subsection, the person shall pay to the Association the portion\n\nof the recovery attributable to the policies or contracts, or\n\nportion thereof, covered by the Association.\n\nL. In addition to the rights and powers specified in the\n\nOklahoma Life and Health Insurance Guaranty Association Act, the\n\nAssociation may:\n\n1. Enter into contracts as are necessary or proper to carry out\n\nthe provisions and purposes of the Oklahoma Life and Health\n\nInsurance Guaranty Association Act;\n\n2. Sue or be sued, including, but not limited to, taking any\n\nlegal actions necessary or proper to recover any unpaid assessments\n\nunder Section 2030 of this title and to settle claims or potential\n\nclaims against it;\n\n3. Borrow money to effect the purposes of the Oklahoma Life and\n\nHealth Insurance Guaranty Association Act. Any notes or other\n\nevidence of indebtedness of the Association not in default shall be\n\nlegal investments for domestic member insurers and may be carried as\n\nadmitted assets;\n\n4. Employ or retain persons as are necessary or appropriate to\n\nhandle the financial transactions of the Association, and to perform\n\nother functions as become necessary or proper under the Oklahoma\n\nLife and Health Insurance Guaranty Association Act;\n\n5. Take any legal action as may be necessary or appropriate to\n\navoid or recover payment of improper claims;\n\n6. Exercise, for the purposes of the Oklahoma Life and Health\n\nInsurance Guaranty Association Act and to the extent approved by the\n\nCommissioner, the powers of a domestic life insurer, health insurer\n\nor health maintenance organization, but in no case may the\n\nAssociation issue policies or contracts other than those issued to\n\nperform its obligations under the Oklahoma Life and Health Insurance\n\nGuaranty Association Act;\n\n7. Organize itself as a corporation or in other legal form\n\npermitted by the laws of the state;\n\n8. Request information from a person seeking coverage from the\n\nAssociation in order to aid the Association in determining its\n\nobligations under the Oklahoma Life and Health Insurance Guaranty\n\nAssociation Act with respect to the person, and the person shall\n\npromptly comply with the request;\n\n9. Unless prohibited by law, in accordance with the terms and\n\nconditions of the policy or contract, file for actuarially justified\n\nrate or premium increases for any policy or contract for which it\n\nprovides coverage under the Oklahoma Life and Health Insurance\n\nGuaranty Association Act; and\n\n10. Take other necessary or appropriate action to discharge its\n\nduties and obligations under the Oklahoma Life and Health Insurance\n\nGuaranty Association Act or to exercise its powers under the\n\nOklahoma Life and Health Insurance Guaranty Association Act.\n\nM. The Association may join an organization of one or more\n\nother state associations of similar purposes, to further the\n\npurposes and administer the powers and duties of the Association.\n\nN. 1. a. At any time within one hundred eighty (180) days of\nLife and Health Insurance\n\nGuaranty Association Act or to exercise its powers under the\n\nOklahoma Life and Health Insurance Guaranty Association Act.\n\nM. The Association may join an organization of one or more\n\nother state associations of similar purposes, to further the\n\npurposes and administer the powers and duties of the Association.\n\nN. 1. a. At any time within one hundred eighty (180) days of\n\nthe date of the order of liquidation, the Association\n\nmay elect to succeed to the rights and obligations of\n\nthe ceding member insurer that relate to policies,\n\ncontracts or annuities covered, in whole or in part,\n\nby the Association, in each case under any one or more\n\nreinsurance contracts entered into by the insolvent\n\ninsurer and its reinsurers and selected by the\n\nAssociation. Any assumption shall be effective as of\n\nthe date of the order of liquidation. The election\n\nshall be effected by the Association or the National\n\nOrganization of Life and Health Insurance Guaranty\n\nAssociations (NOLHGA) on its behalf sending written\n\nnotice, return receipt requested, to the affected\n\nreinsurers.\n\nb. To facilitate the earliest practicable decision about\n\nwhether to assume any of the contracts of reinsurance,\n\nand in order to protect the financial position of the\n\nestate, the receiver and each reinsurer of the ceding\n\nmember insurer shall make available upon request to\n\nthe Association or to NOLHGA on its behalf as soon as\n\npossible after commencement of formal delinquency\n\nproceedings, copies of in-force contracts of\n\nreinsurance and all related files and records relevant\n\nto the determination of whether the contracts should\n\nbe assumed, and notices of any defaults under the\n\nreinsurance contacts or any known event or condition\n\nwhich with the passage of time could become a default\n\nunder the reinsurance contracts.\n\nc. The requirements provided in this subparagraph shall\n\napply to reinsurance contracts assumed by the\n\nAssociation:\n\n(1) the Association shall be responsible for all\n\nunpaid premiums due under the reinsurance\n\ncontracts for periods both before and after the\n\ndate of the order of liquidation, and shall be\n\nresponsible for the performance of all other\n\nobligations to be performed after the date of the\n\norder of liquidation, in each case which relate\n\nto policies, contracts or annuities covered, in\n\nwhole or in part, by the Association. The\n\nAssociation may charge policies, contracts or\n\nannuities covered in part by the Association,\n\nthrough reasonable allocation methods, the costs\n\nfor reinsurance in excess of the obligations of\n\nthe Association and shall provide notice and an\n\naccounting of these charges to the liquidator,\n\n(2) the Association shall be entitled to any amounts\n\npayable by the reinsurer under the reinsurance\n\ncontracts with respect to losses or events that\n\noccur in periods after the date of the order of\n\nliquidation and that relate to policies,\n\ncontracts or annuities covered, in whole or in\n\npart, by the Association, provided that, upon\n\nreceipt of any of these amounts, the Association\n\nshall be obliged to pay to the beneficiary under\n\nthe policy, contract or annuity on account of\n\nwhich the amounts were paid a portion of the\n\namount equal to the lesser of:\n\n(a) the amount received by the Association, or\nion and that relate to policies,\n\ncontracts or annuities covered, in whole or in\n\npart, by the Association, provided that, upon\n\nreceipt of any of these amounts, the Association\n\nshall be obliged to pay to the beneficiary under\n\nthe policy, contract or annuity on account of\n\nwhich the amounts were paid a portion of the\n\namount equal to the lesser of:\n\n(a) the amount received by the Association, or\n\n(b) the excess of the amount received by the\n\nAssociation over the amount equal to the\n\nbenefits paid by the Association on account\n\nof the policy, contract or annuity less the\n\nretention of the insurer applicable to the\n\nloss or event,\n\n(3) within thirty (30) days following the election\n\ndate of the Association, the Association and each\n\nreinsurer under contracts assumed by the\n\nAssociation shall calculate the net balance due\n\nto or from the Association under each reinsurance\n\ncontract as of the election date with respect to\n\npolicies, contracts or annuities covered, in\n\nwhole or in part, by the Association, which\n\ncalculation shall give full credit to all items\n\npaid by either the member insurer or its receiver\n\nor the reinsurer prior to the election date. The\n\nreinsurer shall pay the receiver any amounts due\n\nfor losses or events prior to the date of the\n\norder of liquidation, subject to any set-off for\n\npremiums unpaid for periods prior to the date,\n\nand the Association or reinsurer shall pay any\n\nremaining balance due the other, in each case\n\nwithin five (5) days of the completion of the\n\naforementioned calculation. Any disputes over\n\nthe amounts due to either the Association or the\n\nreinsurer shall be resolved by arbitration\n\npursuant to the terms of the affected reinsurance\n\ncontracts or, if the contract contains no\n\narbitration clause, as otherwise provided by law.\n\nIf the receiver has received any amounts due the\n\nAssociation pursuant to division (2) of this\n\nsubparagraph, the receiver shall remit the same\n\nto the Association as promptly as practicable,\n\nand\n\n(4) if the Association or receiver, on the behalf of\n\nthe Association, within sixty (60) days of the\n\nelection date, pays the unpaid premiums due for\n\nperiods both before and after the election date\n\nthat relate to policies, contracts or annuities\n\ncovered, in whole or in part, by the Association,\n\nthe reinsurer shall not be entitled to terminate\n\nthe reinsurance contracts for failure to pay the\n\npremium insofar as the reinsurance contracts\n\nrelate to policies, contracts or annuities\n\ncovered, in whole or in part, by the Association,\n\nand shall not be entitled to set off any unpaid\n\namounts due under other contracts, or unpaid\n\namounts due from parties other than the\n\nAssociation, against amounts due the Association.\n\n2. During the period from the date of the order of liquidation\n\nuntil the election date, or if the election date does not occur,\n\nuntil one hundred eighty (180) days after the date of the order of\n\nliquidation:\n\na. (1) neither the Association nor the reinsurer shall\n\nhave any rights or obligations under reinsurance\n\ncontracts that the Association has the right to\n\nassume under paragraph 1 of this subsection,\n\nwhether for periods prior to or after the date of\n\nthe order of liquidation, and\nf the election date does not occur,\n\nuntil one hundred eighty (180) days after the date of the order of\n\nliquidation:\n\na. (1) neither the Association nor the reinsurer shall\n\nhave any rights or obligations under reinsurance\n\ncontracts that the Association has the right to\n\nassume under paragraph 1 of this subsection,\n\nwhether for periods prior to or after the date of\n\nthe order of liquidation, and\n\n(2) the reinsurer, the receiver and the Association\n\nshall, to the extent practicable, provide each\n\nother data and records reasonably requested.\n\nb. Provided that once the Association has elected to\n\nassume a reinsurance contract, the rights and\n\nobligations of the parties shall be governed by\n\nparagraph 1 of this subsection.\n\n3. If the Association does not elect to assume a reinsurance\n\ncontract by the election date pursuant to paragraph 1 of this\n\nsubsection, the Association shall have no rights or obligations, in\n\neach case for periods both before and after the date of the order of\n\nliquidation, with respect to the reinsurance contract.\n\n4. When policies, contracts or annuities, or covered\n\nobligations with respect thereto, are transferred to an assuming\n\ninsurer, reinsurance on the policies, contracts or annuities may\n\nalso be transferred by the Association, in the case of contracts\n\nassumed under paragraph 1 of this subsection, subject to the\n\nfollowing:\n\na. unless the reinsurer and the assuming insurer agree\n\notherwise, the reinsurance contract transferred shall\n\nnot cover any new policies, contracts of insurance or\n\nannuities in addition to those transferred,\n\nb. the obligations described in paragraph 1 of this\n\nsubsection shall no longer apply with respect to\n\nmatters arising after the effective date of the\n\ntransfer, and\n\nc. notice shall be given in writing, return receipt\n\nrequested, by the transferring party to the affected\n\nreinsurer not less than thirty (30) days prior to the\n\neffective date of the transfer.\n\n5. The provisions of this subsection shall govern any affected\n\nreinsurance contract that provides for or requires any payment of\n\nreinsurance proceeds, on account of losses or events that occur in\n\nperiods after the date of the order of liquidation, to the receiver\n\nof the insolvent insurer or any other person. The receiver shall\n\nremain entitled to any amounts payable by the reinsurer under the\n\nreinsurance contracts with respect to losses or events that occur in\n\nperiods prior to the date of the order of liquidation, subject to\n\napplicable setoff provisions.\n\n6. Except as otherwise provided in this section, nothing in\n\nthis subsection shall alter or modify the terms and conditions of\n\nany reinsurance contract. Nothing in this section shall abrogate or\n\nlimit any rights of any reinsurer to claim that it is entitled to\n\nrescind a reinsurance contract. Nothing in this section shall give\n\na policyholder, contract owner, enrollee, certificate holder or\n\nbeneficiary an independent cause of action against a reinsurer that\n\nis not otherwise set forth in the reinsurance contract. Nothing in\n\nthis section shall limit or affect the rights of the Association as\n\na creditor of the estate against the assets of the state. Nothing\n\nin this section shall apply to reinsurance agreements covering\n\nproperty or casualty risks.\n\nO. The Board of Directors of the Association shall have\n\ndiscretion and may exercise reasonable business judgment to\n\ndetermine the means by which the Association is to provide the\n\nbenefits of the Oklahoma Life and Health Insurance Guaranty\n\nAssociation Act in an economical and efficient manner.\n\nP. Where the Association has arranged or offered to provide the\n\nbenefits of the Oklahoma Life and Health Insurance Guaranty\n\nAssociation Act to a covered person under a plan or arrangement that\n\nfulfills the obligations of the Association under the Oklahoma Life\nand Health Insurance Guaranty\n\nAssociation Act in an economical and efficient manner.\n\nP. Where the Association has arranged or offered to provide the\n\nbenefits of the Oklahoma Life and Health Insurance Guaranty\n\nAssociation Act to a covered person under a plan or arrangement that\n\nfulfills the obligations of the Association under the Oklahoma Life\n\nand Health Insurance Guaranty Association Act, the person shall not\n\nbe entitled to benefits from the Association in addition to or other\n\nthan those provided under the plan or arrangement.\n\nQ. Venue in a suit against the Association arising under the\n\nOklahoma Life and Health Insurance Guaranty Association Act shall be\n\nin Oklahoma County. The Association shall not be required to give\n\nan appeal bond in an appeal that relates to a cause of action\n\narising under the Oklahoma Life and Health Insurance Guaranty\n\nAssociation Act.\n\nR. In carrying out its duties in connection with guaranteeing,\n\nassuming or reinsuring policies or contracts under subsection A or B\n\nof this section, the Association may, subject to approval of the\n\nreceivership court, issue substitute coverage for a policy or\n\ncontract that provides an interest rate, crediting rate or similar\n\nfactor determined by use of an index or other external reference\n\nstated in the policy or contract employed in calculating returns or\n\nchanges in value by issuing an alternative policy or contract in\n\naccordance with the following provisions:\n\n1. In lieu of the index or other external reference provided\n\nfor in the original policy or contract, the alternative policy or\n\ncontract provides for:\n\na. a fixed interest rate,\n\nb. payment of dividends with minimum guarantees, or\n\nc. a different method for calculating interest or changes\n\nin value;\n\n2. There is no requirement for evidence of insurability,\n\nwaiting period or other exclusion that would not have applied under\n\nthe replaced policy or contract; and\n\n3. The alternative policy or contract is substantially similar\n\nto the replaced policy or contract in all other material terms.","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":"f8f33d2fd0896a7b677f121063e306b38eaf482c9c58d0414fc4401bed6223ae","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-2027","next":"us-ok/okla.-stat.-tit.-36-36-2030"},"notice":"GroundRules: Original legal text. Not legal advice."}