{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-2405","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-2405","heading":"Level or stipulated assessments – Definition - Policy to","body":"specify amount payable - Refusal to pay - Solvency - Legal reserve\n\nlife insurance - Policy to make this section part thereof - Age\n\nlimits – Beneficiaries - No mutual benefit associations formed\n\nhereafter.\n\nMutual benefit associations authorized to do business in this\n\nstate, may provide for a level or stipulated weekly, monthly,\n\nquarterly, semiannual or annual assessment, and the following\n\nprovisions are made specially applicable thereto:\n\n1. Level rate assessment associations, companies or\n\ncorporations are defined as those corporations granting insurance\n\nbenefits on the assessment plan and which collect from their\n\nmembership a level, stipulated monthly, quarterly, semiannual\n\nassessment or premium, which assessment or premium is not made\n\ncontingent upon the happening of a certain event but is based upon\n\nstated periodical rates or charges estimated by the Board of\n\ndirectors to be sufficient for the payment of all claims and\n\nexpenses.\n\n2. Such associations shall specify in their policy or\n\nmembership certificate forms the sum of money they promise to pay,\n\nwhich sum shall not be less than the face amount of the policy, and\n\nthe number of days after satisfactory proof is filed when such\n\npayment will be made. Upon the occurrence of such contingency\n\nunless the contract shall have been void by fraud or by breach of\n\nits conditions, the corporation shall be obligated to the\n\nbeneficiary for such payment at the time and in the amount specified\n\nin the policy or certificate. If such corporation shall refuse or\n\nfail to make such payment, after final judgment has been obtained\n\nupon each claim, the Insurance Commissioner shall notify the\n\ncorporation not to issue any new policies or certificates until such\n\nindebtedness is fully paid; and no officer or agent of the\n\ncorporation shall make, sign or issue any policy or certificate of\n\ninsurance while such notice is in force.\n\n3. Each such association or company shall be held to be legally\n\nsolvent so long as its admitted assets are equal to or in excess of\n\nits matured liabilities.\n\n4. Any association or company organized under the provisions of\n\nthis article having admitted assets in its mortuary or reserve fund\n\nof at least One Hundred Thousand Dollars ($100,000.00) in excess of\n\nits matured claim liabilities may write legal reserve life insurance\n\nand the provisions of paragraphs numbered 1, 7 and 8 of Section\n\n1204, Article 12; Section 4029, Article 40, and Section 3610,\n\nArticle 36 of this title shall be applicable to all insurance\n\nwritten on the legal reserve basis. The reserve on such business\n\nshall be held separate and apart from all other funds of the\n\nassociation or company and shall be computed upon a calculation\n\nwhich shall show a value not less than that shown in accordance with\n\nthe one-year preliminary term method based upon the American\n\nExperience Table of Mortality and three and one-half (3 1/2%)\n\npercent per annum, assuming an average risk exposure of six (6)\n\nmonths on all new policies issued within each calendar year shall be\n\nsecurity for the legal reserve business only. Should such legal\n\nreserve become impaired by reason of excessive mortality or other\n\ncause, the board of directors of such association or company may\n\nlevy additional assessments with which to make up such impairment.\n\nEvery policy issued by reason hereof shall contain a provision\n\nmaking this section a part thereof. Provided, however, that any\n\nsuch association or company shall discontinue writing all types of\n\nnew insurance in Oklahoma except legal reserve insurance within five\ncause, the board of directors of such association or company may\n\nlevy additional assessments with which to make up such impairment.\n\nEvery policy issued by reason hereof shall contain a provision\n\nmaking this section a part thereof. Provided, however, that any\n\nsuch association or company shall discontinue writing all types of\n\nnew insurance in Oklahoma except legal reserve insurance within five\n\n(5) years after publishing legal reserve rates or having printed\n\nlegal reserve policy forms. Any director, trustee, officer, or\n\nmember of any such corporation, or any other person, may advance to\n\nthe corporation any sum or sums of money necessary for the purpose\n\nof its business, or to enable it to comply with any of the\n\nrequirements of the law, and such monies and such interest thereon\n\nas may have been agreed upon, not exceeding ten percent (10%) per\n\nannum, shall not be a liability or claim against the corporation or\n\nany of its assets except as to surplus earnings of such corporations\n\nand unless the obligation is in writing and duly acknowledged by the\n\ncorporation, and a verified copy thereof is filed with the Insurance\n\nCommissioner. No commission or promotion expense shall be paid in\n\nconnection with the advance of any such money to the corporation and\n\nthe amount of such advance shall be reported in each annual\n\nstatement filed with the Insurance Commissioner.\n\n5. The provisions of this article placing the extreme limit of\n\nage of persons to whom policies may be issued at not to exceed\n\nseventy-two (72) years of age, shall not be applicable to insurance\n\nwritten upon the level rate plan outside the State of Oklahoma or\n\nthe legal reserve plan in any state; provided that if the age of the\n\ninsured has been incorrectly stated in the application for any\n\npolicy issued by such association or company the face amount of said\n\npolicy payable in event of a valid claim shall be such an amount as\n\nthe premium paid by the insured to the association or company would\n\nhave purchased at the true and correct age of the insured, at entry,\n\non a basis of the published rates of the company applicable thereto.\n\n6. Any individual, person, corporation, association or\n\npartnership with an insurable interest in the life of the insured\n\nmay be a beneficiary of insurance written on either the level rate\n\nor legal reserve plan by an association or company operating under\n\nthis article.\n\n7. No mutual benefit association shall be formed after June 4,\n\n1953, nor shall the Insurance Commissioner, after said effective\n\ndate issue a permit to organize such an association to or approve\n\nany articles of incorporation of, any group of individuals desiring\n\nto organize an association or company under the provisions of this\n\narticle.","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":"12764fa122972b0346c725c3c7223193836a0104a3137ea0c8b25f826bf55c48","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-2404","next":"us-ok/okla.-stat.-tit.-36-36-2406"},"notice":"GroundRules: Original legal text. Not legal advice."}