{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-2203","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-2203","heading":"Creation of trust – Conditions – Entities insured – Law","body":"governing reserves and surplus – Conversion of domestic stock\n\ninsurers.\n\nA. An association may create a trust to self-insure physicians,\n\nallied health care professionals or health care institutions against\n\nmedical professional liability claims and related risks upon\n\ncomplying with the following conditions:\n\n1. Establishment of a trust to provide coverage against medical\n\nprofessional liability claims and related risks;\n\n2. Employment of appropriate professional staff and consultants\n\nfor program management and purchase of such administrative services\n\nas may be required;\n\n3. The trust investment powers and limitations shall be the\n\nsame as those of any Oklahoma domestic casualty insurance company;\n\nand\n\n4. Performance of all acts necessary or desirable to the\n\nconduct of the business of a medical professional liability insurer.\n\nB. A trust may purchase, on behalf of the members of the\n\norganizing association, specific excess insurance, aggregate excess\n\ninsurance, and reinsurance, as in the opinion of the trustee are\n\nnecessary. A trust is further authorized to purchase risk\n\nmanagement services as may be required and pay claims that arise\n\nunder any deductible provisions.\n\nC. If the terms of the trust so authorize, the trust may insure\n\nthe following entities against medical professional liability claims\n\nand related risks:\n\n1. Organizations or associations in which physicians, allied\n\nhealth care professionals or health care institutions are qualified\n\nmembers;\n\n2. Entities that own or operate otherwise qualified health care\n\ninstitutions under the Oklahoma Medical Professional Liability\n\nTrusts Act;\n\n3. Physicians’ professional practice entities; and\n\n4. Any person for whose acts or omissions an insured may be\n\nheld legally responsible.\n\nD. Laws of this state and the provisions of any chapters,\n\narticles or sections of Title 36 of the Oklahoma Statutes related to\n\nrequired amounts of reserves and surplus are declared inapplicable\n\nto a trust organized and operated under the Oklahoma Medical\n\nProfessional Liability Trusts Act, except as provided in the\n\nOklahoma Medical Professional Liability Trusts Act.\n\nE. A licensed domestic stock insurer that prior to the\n\neffective date of this act writes physicians’, allied health care\n\nprofessionals’ or health care institutions’ medical professional\n\nliability insurance and is owned wholly by an association shall be\n\nentitled to convert to a trust by:\n\n1. Filing a plan, statement of conversion and trust instrument\n\nwith the Commissioner. The plan, statement of conversion and trust\n\ninstrument shall list all conditions to be fulfilled by a designated\n\ndate, upon which such conversion will be effective, and all base\n\nrates to be charged by the trust;\n\n2. Approval by vote or written consent of three-fourths (3/4)\n\nof the board of directors or trustees of the insurer’s parent\n\nassociation;\n\n3. Creation of a trust by the insurer’s parent association;\n\n4. Transfer of the assets and liabilities of the insurer to the\n\ntrust;\n\n5. Upon ninety (90) days’ prior written notice to affected\n\npolicyholders, replacement of the insurer’s outstanding policies by\n\nthe trust; and\n\n6. Surrender or divesture for reasonable consideration of the\n\ninsurer’s license.","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":"6ed0a25ce3dbab6d8eb2f96e83b53d5d1481a4863f7e1565c32fe7c4a4d50f7c","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-2202","next":"us-ok/okla.-stat.-tit.-36-36-2204"},"notice":"GroundRules: Original legal text. Not legal advice."}