{"data":{"id":"us-ok/okla.-stat.-tit.-54-54-1-309","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 54, § 54-1-309","heading":"Security for Payment of Claims","body":"\n\nSecurity for Payment of Claims. (a) A limited liability\n\npartnership, or a foreign limited liability partnership transacting\n\nbusiness in this state, shall provide security for claims against it\n\nbased upon acts, errors, or omissions arising out of the conduct of\n\nthe business of the partnership in the manner provided in subsection\n\n(b), (c), (d) or (e) of this section.\n\n(b) (1) A limited liability partnership or foreign limited\n\nliability partnership is in compliance with this section if it\n\nmaintains a policy or policies of insurance against liability\n\nimposed on it by law for damages arising out of claims of the type\n\nspecified in subsection (a) of this section. The policy or policies\n\nof insurance may be issued on a claims-made or occurrence basis;\n\nprovided, that the total aggregate limit of liability thereof equals\n\nor exceeds Five Hundred Thousand Dollars ($500,000.00). The\n\nimpairment or exhaustion of such aggregate limit of liability by\n\namounts paid under the policy in connection with the settlement,\n\ndischarge, or defense of claims shall not require the partnership to\n\nacquire additional insurance coverage for the policy period to which\n\nthe impairment or exhaustion applies. Such policy or policies of\n\ninsurance may be of a type reasonably available in the commercial\n\ninsurance market and may be subject to such terms, conditions,\n\nexclusions, and endorsements as are typically contained in such\n\npolicies.\n\n(2) If the principal business activity of a limited liability\n\npartnership or foreign limited liability partnership is not the\n\nprovision of professional services, the limited liability\n\npartnership or foreign limited liability partnership may comply with\n\nthis section if it maintains a general liability insurance policy or\n\npolicies in the aggregate amount of at least Five Hundred Thousand\n\nDollars ($500,000.00). The impairment or exhaustion of such\n\naggregate limit of liability by amounts paid under the policy in\n\nconnection with the settlement, discharge, or defense of claims\n\nshall not require the partnership to acquire additional insurance\n\ncoverage for the policy period to which the impairment or exhaustion\n\napplies. Such policy or policies of insurance may be of a type\n\nreasonably available in the commercial insurance market and may be\n\nsubject to such terms, conditions, exclusions, and endorsements as\n\nare typically contained in such policies.\n\n(3) A policy or policies of insurance maintained pursuant to\n\nthis subsection may be subject to a deductible or self-insured\n\nretention not to exceed ten percent (10%) of the aggregate limit of\n\nliability specified in paragraphs (1) and (2) of this subsection;\n\nprovided, however, that a deductible or self-insured retention may\n\nexceed such amount if the partnership maintains funds in the manner\n\nprovided for in subsection (c) of this section in the amount of the\n\ndifference between the actual deductible or self-insured retention\n\nand such amount.\n\ny specified in paragraphs (1) and (2) of this subsection;\n\nprovided, however, that a deductible or self-insured retention may\n\nexceed such amount if the partnership maintains funds in the manner\n\nprovided for in subsection (c) of this section in the amount of the\n\ndifference between the actual deductible or self-insured retention\n\nand such amount.\n\n(c) (1) A limited liability partnership or foreign limited\n\nliability partnership is in compliance with this section if it\n\nmaintains funds specifically designated and segregated as security\n\nfor the payment of liabilities imposed by law against the\n\npartnership or its partners arising out of claims of the type\n\nspecified in subsection (a) of this section, in the aggregate amount\n\nof at least Five Hundred Thousand Dollars ($500,000.00). The\n\npartnership remains in compliance with this section notwithstanding\n\namounts paid from the designated and segregated funds in any six-\n\nmonth period in settling or discharging such claims; provided, that\n\nthe amount of the designated and segregated funds is increased to at\n\nleast Five Hundred Thousand Dollars ($500,000.00) as of the first\n\nbusiness day of the next six-month period. A limited liability\n\npartnership or foreign limited liability partnership is in\n\ncompliance with this subsection if it:\n\n(i) maintains funds in the required amount in trust or in\n\nbank escrow in the form of cash, bank certificates of\n\ndeposit or United States Treasury obligations,\n\n(ii) maintains in effect bank letters of credit in the\n\nrequired amount, or\n\n(iii) maintains in effect insurance or surety company bonds\n\nin the required amount.\n\n(2) Notwithstanding the pendency of other claims against the\n\npartnership, a limited liability partnership or foreign limited\n\nliability partnership shall be deemed to be in compliance with this\n\nsubsection if within thirty (30) days after the time that a claim is\n\ninitially asserted through service of a summons, complaint or\n\ncomparable pleading in a judicial or administrative proceeding, the\n\npartnership has designated and segregated funds in compliance with\n\nthe requirement of paragraph (1) of this subsection.\n\n(d) For purposes of satisfying the requirements of this\n\nsection, a limited liability partnership or foreign limited\n\nliability partnership may aggregate security provided pursuant to\n\nsubsections (b) and (c) of this section.\n\n(e) Notwithstanding any other provision of this section, if a\n\nforeign limited liability partnership maintains liability insurance,\n\ndesignated and segregated funds, or any combination thereof pursuant\n\nto the laws or regulations of another jurisdiction, such liability\n\ninsurance, designated and segregated funds, or combination thereof\n\nshall be deemed to satisfy this section if:\n\n(1) The amount thereof is equal to or greater than the amount\n\nrequired pursuant to this section; or\n\n(2) The amount thereof, plus any security maintained pursuant\n\nto subsection (b) or (c) of this section, is equal to or greater\n\nthan the amount required pursuant to this section.\n\n(f) Federal or state law, as applicable, shall determine\n\nwhether the existence of the security required by subsection (b) or\n\n(c) of this section or the amount of such security may be revealed\n\npursuant to the law of civil procedure governing discovery in civil\n\ncases or whether the existence or amount of that security may be\n\nadmitted into evidence for consideration by a trier of fact during a\n\ncivil proceeding.\ne existence of the security required by subsection (b) or\n\n(c) of this section or the amount of such security may be revealed\n\npursuant to the law of civil procedure governing discovery in civil\n\ncases or whether the existence or amount of that security may be\n\nadmitted into evidence for consideration by a trier of fact during a\n\ncivil proceeding.\n\n(g) If a limited liability partnership or foreign limited\n\nliability partnership fails to comply with this section, the\n\npartners thereof shall be liable jointly for the debts, obligations\n\nand liabilities of the partnership arising from claims specified in\n\nsubsection (a) of this section; provided, however, that the\n\naggregate amount for which the partners are jointly liable shall be\n\nlimited to the difference between the amount of security required to\n\nbe maintained pursuant to this section and the amount of security\n\nactually maintained by the partnership.\n\n(h) Notwithstanding any other provision of this section, if a\n\nlimited liability partnership or foreign limited liability\n\npartnership is in substantial compliance with this section at the\n\ntime that a bankruptcy or other insolvency proceeding is commenced\n\nwith respect to the partnership, the partnership shall be deemed to\n\nbe in compliance with this section during the entire pendency of the\n\nproceeding. A partnership that has been the subject of such a\n\nproceeding and that conducts business after the proceeding has ended\n\nmust thereafter comply with this section in order to maintain its\n\nstatus as a limited liability partnership or foreign limited\n\nliability partnership.","path":["OK Code","Title 54"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os54.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"dd66b723e751edf4a2a315541045348f133ea4d22c326dc838e236baa2b53248","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-54-54-1-308","next":"us-ok/okla.-stat.-tit.-54-54-1-401"},"notice":"GroundRules: Original legal text. Not legal advice."}