{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-2406","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-2406","heading":"Bond of custodian of funds - Nonpayment of benefits or","body":"claims - Emergency or reserve fund - Merger, consolidation or\n\ntransfer of business and property.\n\nBefore any mutual benefit association shall do business in this\n\nstate, under this article, it shall file in the office of the\n\nInsurance Commissioner, a bond of the official custodian of its fund\n\nexecuted by a surety company authorized to do business in this\n\nstate, to be approved by the Commissioner, in the sum of Ten\n\nThousand Dollars ($10,000.00), to be conditioned for the prompt and\n\nfull accounting and payment to the association of all of its funds\n\nentrusted to the officer and that are in his or her hands, and that\n\nhe or she will faithfully comply with and perform all and singular\n\nthe duties and obligations imposed upon him or her by the laws of\n\nthis state. If any such association shall fail or refuse to make\n\npayment of any benefit or claim against the association, after final\n\njudgment has been obtained therefor, the Commissioner shall notify\n\nthe association not to issue any new certificates or solicit new\n\nbusiness until such indebtedness is fully paid, and no officer or\n\nagent of such association shall make, sign or issue any certificate\n\nof insurance while such notice is in force. Any such mutual benefit\n\nassociation hereafter organized under the laws of this state shall,\n\nbefore it completes its organization and receives a certificate of\n\nauthority to do business in this state, produce and maintain an\n\nemergency or reserve fund of at least Ten Thousand Dollars\n\n($10,000.00), and such reserve or emergency fund produced and\n\nmaintained as herein provided shall be invested in such securities\n\nas may be approved by the Commissioner, as required by law for the\n\ninvestment of such funds, and they shall be deposited with the\n\nCommissioner and be held by him or her in trust as an emergency fund\n\nfor the benefit and protection of, and as security for, the\n\ncertificate holders of such associations, their legal\n\nrepresentatives or beneficiaries, and they shall have a lien to the\n\nextent of any valid claim arising out of a valid certificate, after\n\nsuch claim has been allowed by the association or established by a\n\nfinal judgment of a court of competent jurisdiction. Such\n\nsecurities as are deposited with the Commissioner, pursuant to this\n\narticle, shall be part of the admitted assets of the association\n\ndepositing the same. Two or more such associations authorized to do\n\nbusiness in this state where one or all of them have been authorized\n\nunder the laws of this state, may merge, unite or consolidate, or\n\nmay cause the business and property, in whole or in part of one or\n\nmore of the associations to be transferred to one of such\n\nassociations, or to any insurance association, company or\n\ncorporation licensed to do business in this state, or to any person\n\nor persons: provided, however, before doing so, they shall submit to\n\nthe Commissioner their agreement relating thereto, and, thereupon,\n\nhe or she shall approve the same if he or she is satisfied that such\n\nmerger, consolidation or transfer will not be prejudicial to the\n\nrights of the members and that such association can comply with the\n\nterms and conditions prescribed by law for the conduct and operation\n\nthereof.","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":"f7a8dd4371dff392d6fc36de39d3e9de9b9be9691f88b624a7163966dfedfa16","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-2405","next":"us-ok/okla.-stat.-tit.-36-36-2407"},"notice":"GroundRules: Original legal text. Not legal advice."}