{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-2125","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-2125","heading":"Borrowed surplus","body":"A. A domestic stock or mutual insurer may borrow money to\n\ndefray the expenses of its organization, provide it with surplus\n\nfunds, or for any purpose required by its business, upon a written\n\nagreement that such money is required to be repaid only out of the\n\ninsurer's surplus in excess of that stipulated in such agreement.\n\nThe form of the agreement must be submitted for approval to\n\ntheCommissioner to assure it is consistent with the requirements of\n\nthis section. If such agreement is not approved or disapproved by\n\nthe Commissioner within fifteen (15) days after the date of its\n\nfiling, it shall be deemed approved. The agreement may provide for\n\ninterest at the rate agreed upon, but not exceeding a rate of\n\ninterest approved by the Insurance Commissioner, which interest\n\nshall or shall not constitute a liability of the insurer as to its\n\nfunds other than such excess of surplus, as stipulated in the\n\nagreement. Repayment of such loan shall not be made unless it is\n\napproved in advance by the Commissioner. Such repayment shall be\n\ndeemed approved unless within fifteen (15) days after the date of\n\nsuch filing the insurer is notified in writing of the Commissioner's\n\ndisapproval and the reasons therefor.\n\nB. Money so borrowed, together with the interest thereon if so\n\nstipulated in the agreement, shall not form a part of the insurer's\n\nlegal liabilities except as to its surplus in excess of the amount\n\nthereof stipulated in the agreement, or be the basis of any setoff;\n\nbut until repaid, financial statements filed or published by the\n\ninsurer shall show as a footnote thereto the amount thereof then\n\nunpaid together with any interest thereon accrued but unpaid.\n\nC. If a domestic mutual insurer, the insurer in advance of any\n\nsuch loan shall file with the Insurance Commissioner a statement of\n\nthe purposes of the loan and a copy of the proposed loan agreement,\n\nwhich shall be subject to the approval of the Commissioner. The\n\nloan and agreement shall be deemed approved unless within fifteen\n\n(15) days after date of such filing the insurer is notified in\n\nwriting of the Commissioner's disapproval and the reasons therefor.\n\nThe Commissioner shall so disapprove any such proposed loan or\n\nagreement if he finds that the loan is reasonably unnecessary or\n\nexcessive for the purpose intended, or that the terms of the loan\n\nagreement are not fair and equitable to the parties, and to other\n\nsimilar lenders, if any, to the insurer, or that the information so\n\nfiled by the insurer is inadequate, specifying the respects in which\n\nit is so inadequate.\n\nD. Any such loan to a mutual insurer or substantial portion\n\nthereof shall be repaid by the insurer out of earned surplus when no\n\nlonger reasonably necessary for the purpose originally intended. No\n\nrepayment of such a loan shall be made by a mutual insurer unless in\n\nadvance approved by the Commissioner.\n\nE. This section shall not apply to loans obtained by the\n\ninsurer in ordinary course of business from banks and other\n\nfinancial institutions, nor to loans secured by pledge of assets.","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":"0238b3aa3bc318a0832e8d51f6f53196baa7682f429f8429f1c621b1812cc64a","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-2124","next":"us-ok/okla.-stat.-tit.-36-36-2126"},"notice":"GroundRules: Original legal text. Not legal advice."}