{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-711","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-711","heading":"Allowance for credit or increase in amount at risk –","body":"Contract requirements.\n\nA. 1. No credit shall be allowed, as an admitted asset or as a\n\ndeduction from liability, to any ceding insurer for reinsurance nor\n\nincrease the amount it is authorized to have at risk unless the\n\nreinsurance contract provides, in substance, that in the event of\n\nthe insolvency of the ceding insurer, the reinsurance shall be\n\npayable under a contract or contracts reinsured by the assuming\n\ninsurer on the basis of reported claims allowed by the liquidation\n\ncourt, without diminution because of the insolvency of the ceding\n\ninsurer. Such payments shall be made directly to the ceding insurer\n\nor to its domiciliary liquidator, except:\n\na. if the contract or other written agreement\n\nspecifically provides another payee of such\n\nreinsurance in the event of the insolvency of the\n\nceding insurer, or\n\nb. if the assuming insurer, with the consent of the\n\ndirect insureds, has assumed such policy obligations\n\nof the ceding insurer as direct obligations of the\n\nassuming insurer to the payees under such policies and\n\nin substitution for the obligations of the ceding\n\ninsurer to such payees.\n\n2. The reinsurance agreement may provide that the domiciliary\n\nliquidator of an insolvent ceding insurer shall give written notice\n\nto the assuming insurer of the pendence of a claim against such\n\nceding insurer on the contract reinsured within a reasonable time\n\nafter such claim is filed in the liquidation proceeding. During the\n\npendence of such claim, any assuming insurer may investigate such\n\nclaim and interpose, at its own expense, in the proceeding where\n\nsuch claim is to be adjudicated, any defenses which it deems\n\navailable to the ceding insurer, or its liquidator. Such expense\n\nmay be filed as a claim against the insolvent ceding insurer to the\n\nextent of a proportionate share of the benefit which may accrue to\n\nthe ceding insurer solely as a result of the defense undertaken by\n\nthe assuming insurer. If two or more assuming insurers are involved\n\nin the same claim and a majority in interest elect to interpose one\n\nor more defenses to such claim, the expense shall be apportioned in\n\naccordance with the terms of the reinsurance agreement as though\n\nsuch expense had been incurred by the ceding insurer.\n\nB. This section shall not apply to insurance of ocean marine\n\nrisks or marine protection and indemnity risks.","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":"65c6fdf1f4a3984708abe21f550171888f6f7f140f0c5bd456d6cb38d5a497b9","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-7109","next":"us-ok/okla.-stat.-tit.-36-36-7110"},"notice":"GroundRules: Original legal text. Not legal advice."}