{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-2030","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-2030","heading":"Assessments","body":"A. For the purpose of providing the funds necessary to carry\n\nout the powers and duties of the Oklahoma Life and Health Insurance\n\nGuaranty Association, the Board of Directors of the Oklahoma Life\n\nand Health Insurance Guaranty Association shall assess the member\n\ninsurers, separately for each account, at such time and for such\n\namounts as the Board finds necessary. Assessments shall be due not\n\nless than thirty (30) days after prior written notice to the member\n\ninsurers and shall accrue interest at six percent (6%) per annum on\n\nand after the due date.\n\nB. There shall be two classes of assessments, as follows:\n\n1. Class A assessments shall be made for the purpose of meeting\n\nadministrative and legal costs and other expenses and examinations.\n\nClass A assessments may be made whether or not related to a\n\nparticular impaired or insolvent insurer;\n\n2. Class B assessments shall be made to the extent necessary to\n\ncarry out the powers and duties of the Association under Section\n\n2028 of this title with regard to an impaired or an insolvent\n\nforeign or domestic insurer.\n\nC. 1. The amount of any Class A assessment shall be determined\n\nby the Board and may be made on a pro rata or non-pro rata basis.\n\nIf pro rata, the Board may provide that it be credited against\n\nfuture Class B assessments. A non-pro rata assessment shall be\n\ncredited against future insolvency.\n\nThe amount of any Class B assessment, except for assessments\n\nrelated to long-term care insurance, shall be allocated for\n\nassessment purposes among the accounts and among the subaccounts of\n\nthe life insurance and annuity account, pursuant to an allocation\n\nformula which may be based on the premiums or reserves of the\n\nimpaired or insolvent insurer or any other standard deemed by the\n\nBoard in its sole discretion as being fair and reasonable under the\n\ncircumstances.\n\nThe amount of the Class B assessment for long-term care\n\ninsurance written by the impaired or insolvent insurer shall be\n\nallocated according to a methodology included in the plan of\n\noperation and approved by the Commissioner. The methodology shall\n\nprovide for fifty percent (50%) of the assessment to be allocated to\n\naccident and health member insurers and fifty percent (50%) to be\n\nallocated to life and annuity member insurers.\n\n2. Class B assessments against member insurers for each account\n\nshall be in the proportion that the premiums received on business in\n\nthis state by each assessed member insurer on policies or contracts\n\ncovered by each account for the three (3) most recent calendar years\n\nfor which information is available preceding the year in which the\n\nmember insurer became impaired or insolvent, as the case may be,\n\nbears to such premiums received on business in this state for such\n\ncalendar years by all assessed member insurers.\n\n3. Assessments for funds to meet the requirements of the\n\nAssociation with respect to an impaired or insolvent insurer shall\n\nnot be made until necessary to implement the purposes of this act.\n\nClassification of assessments under subsection B of this section and\n\ncomputation of assessments under this subsection shall be made with\n\na reasonable degree of accuracy, recognizing that exact\n\ndeterminations may not always be possible.\n\nD. The Association may abate, or defer in whole or in part, the\n\nassessment of a member insurer if, in the opinion of the Board,\n\npayment of the assessment would endanger the ability of the member\n\ninsurer to fulfill its contractual obligations. In the event an\n\nassessment against a member insurer is abated, or deferred in whole\n\nor in part, the amount by which such assessment is abated or\n\ndeferred may be assessed against the other member insurers in a\n\nmanner consistent with the basis for assessments set forth in this\n\nsection.\n\nE. The total of all assessments upon a member insurer for each\nnsurer to fulfill its contractual obligations. In the event an\n\nassessment against a member insurer is abated, or deferred in whole\n\nor in part, the amount by which such assessment is abated or\n\ndeferred may be assessed against the other member insurers in a\n\nmanner consistent with the basis for assessments set forth in this\n\nsection.\n\nE. The total of all assessments upon a member insurer for each\n\naccount in any one (1) calendar year shall not exceed two percent\n\n(2%) of such average premiums of the insurer received in this state\n\nduring the three (3) calendar years preceding the assessment on the\n\npolicies and contracts covered by the account and in which the\n\nmember insurer became an impaired or insolvent insurer. If the\n\nmaximum assessment together with the other assets of the Association\n\nin any account does not provide in any one (1) year in either\n\naccount an amount sufficient to carry out the responsibilities of\n\nthe Association, the necessary additional funds shall be assessed as\n\nsoon thereafter as permitted by the Oklahoma Life and Health\n\nInsurance Guaranty Association Act. The Board may provide in the\n\nplan of operation, a method of allocating funds among claims,\n\nwhether relating to one or more impaired or insolvent insurers, when\n\nthe maximum assessment will be insufficient to cover anticipated\n\nclaims.\n\nF. The Board may, by an equitable method as established in the\n\nplan of operation, refund to member insurers, in proportion to the\n\ncontributions of each insurer to that account, the amount by which\n\nthe assets of the account exceed the amount the Board finds is\n\nnecessary to carry out the obligations of the Association during the\n\ncoming year with regard to that account, including assets accruing\n\nfrom assignment, subrogation, net realized gains and income from\n\ninvestments. A reasonable amount may be retained in any account to\n\nprovide funds for the continuing expenses of the Association and for\n\nfuture losses.\n\nG. It shall be proper for any member insurer to consider the\n\namount reasonably necessary to meet its obligations under this act\n\nin determining its premium rates and policy owner dividends as to\n\nany kind of insurance or health maintenance organization business\n\nwithin the scope of the Oklahoma Life and Health Insurance Guaranty\n\nAssociation Act.\n\nH. The Association shall issue to each member insurer paying an\n\nassessment under the Oklahoma Life and Health Insurance Guaranty\n\nAssociation Act, other than a Class A assessment, a certificate of\n\ncontribution, in a form prescribed by the Commissioner, for the\n\namount of the assessment so paid. All outstanding certificates\n\nshall be of equal priority without reference to amounts or dates of\n\nissue. A certificate of contribution may be shown by the member\n\ninsurer in its financial statement as an asset in such form and for\n\nsuch amount, if any, and period of time as the Commissioner may\n\napprove.\n\nI. A member insurer may offset against its premium, franchise\n\nor income tax liability to this state, an assessment described in\n\nsubsection H of this section to the extent of twenty percent (20%)\n\nof the amount of such assessment for each of the five (5) calendar\n\nyears following the year in which such assessment was paid. In the\n\nevent a member insurer should cease doing business, all uncredited\n\nassessments may be credited against its premium, franchise or income\n\ntax liability for the year it ceases doing business.\n\nJ. Any sums acquired by refund, pursuant to subsection F of\n\nthis section, from the Association which have theretofore been\n\nwritten off by contributing insurers and offset against premium,\n\nfranchise or income taxes as provided in subsection I of this\n\nsection, and are not then needed for purposes of the Oklahoma Life\n\nand Health Insurance Guaranty Association Act, shall be paid by the\n\nAssociation to the Insurance Commissioner who shall dispense such\nof\n\nthis section, from the Association which have theretofore been\n\nwritten off by contributing insurers and offset against premium,\n\nfranchise or income taxes as provided in subsection I of this\n\nsection, and are not then needed for purposes of the Oklahoma Life\n\nand Health Insurance Guaranty Association Act, shall be paid by the\n\nAssociation to the Insurance Commissioner who shall dispense such\n\nfunds in accordance with the statutes regarding disbursement of such\n\ntaxes.","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":"163dde707f86eadd935ecaf5a7abe98242cb09777fc25ea80160a6b57c0651c1","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-2028","next":"us-ok/okla.-stat.-tit.-36-36-2031"},"notice":"GroundRules: Original legal text. Not legal advice."}