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SENATE FLOOR VERSION
April 10, 2025
AS AMENDED
ENGROSSED HOUSE
BILL NO. 1160 By: Tedford of the House
and
Reinhardt of the Senate
An Act relating to insurance; amending 36 O.S. 2021,
Sections 2002, 2003, 2004, 2007, 2009, 2020.1, and
2020.2, which relate to the Oklahoma Property and
Casualty Insurance Guaranty Association Act;
modifying purpose; modifying applicability; modifying
definitions; providing definitions; modifying the
powers and duties of the Association; clarifying
parties; clarifying timelines; permitting the
Association to join certain organizations; permitting
the Association to make certain payments; prohibiting
use of the existence of the Association to sell or
solicit insurance; clarifying that certain records
are not public records; providing exceptions;
providing for codification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 36 O.S. 2021, Section 2002, is
amended to read as follows:
Section 2002. A. The purpose of the Oklahoma Property and
Casualty Insurance Guaranty Association Act is to provide a
mechanism for the payment of covered claims under certain insurance
policies, to avoid excessive delay in payment, to avoid and to the
extent provided in this act, minimize financial loss to claimants or
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policyholders because o f the insolvency of an insurer, and to
provide an association to assess the cost of protection among
insurers.
B. The Oklahoma Property and Casualty Insurance Guaranty
Association Act shall be construed to effect the purpose provided
for in subsection A of this section which shall constitute an aid
and guide to interpretation of the Oklahoma Property and Casualty
Insurance Guaranty Association Act.
SECTION 2. AMENDATORY 36 O.S. 2021, Section 2003, is
amended to read as follows:
Section 2003. The Oklahoma Property and Casualty Insurance
Guaranty Association Act shall apply to all kinds of direct
insurance, but shall not be applicable to the foll owing:
1. Life, annuity, health, or disability insurance;
2. Ocean marine insurance;
3. Fidelity or surety bonds, or any other bonding obligations;
4. Title, as defined in Sections 702, 703, 705, 708 and 709 of
this title, mortgage or financial guarant y insurance or other forms
of insurance offering protection against investment risks;
5. Credit insurance, insurance of warranties or service
contracts, annuities, vendors single interest insurance, collateral
protection insurance; and
6. Any transaction or combination of transactions between a
person, including affiliates of the person, and an insurer,
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including affiliates of the insurer, which involves the transfer of
investment or credit risk unaccompanied by transfer of investment
insurance risk; and
7. Any insurance provided by or guaranteed by a government .
SECTION 3. AMENDATORY 36 O.S. 2021, Section 2004, is
amended to read as follows:
Section 2004. As used in the Oklahoma Property and Casualty
Insurance Guaranty Associat ion Act:
1. "Affiliate" means a person who directly or indirectly,
through one or more intermediaries, controls, is controlled by, or
is under common control with another person on December 31 of the
year next preceding the date the insurer becomes an ins olvent
insurer;
2. "Association" means the Oklahoma Property and Casualty
Insurance Guaranty Association as created in Section 2005 of this
title;
3. "Assumed claims transaction " means:
a. policy obligations that have been assumed by the
insolvent insurer, prior to the entry of a final order
of liquidation, pursuant to a plan, approved by a
domestic commissioner of the assuming insurer, which
transfers the direct policy obligations and future
policy renewals from one insurer to another insurer,
or
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b. an assumption reinsurance transaction in which all of
the following have occurred:
(1) the insolvent insurer assumed, prior to the entry
of a final order of liquidation, the claim or
policy obligations of another insurer under the
claims or policies,
(2) the assumption of the claim or policy obligations
has been approved, if an approval is required, by
the appropriate regulatory authorities, and
(3) as a result of the assumption, the claim or
policy obligations became the direct obligations
of the insolvent ins urer through novation of the
claims or policies;
4. "Claimant" means any person institu ting a covered claim;
provided that no person who is an affiliate of the insolvent insurer
may be a claimant;
5. "Commissioner" means the Insurance Commissioner of Okl ahoma;
6. "Control" means the possession, direct or indirect, of the
power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting
securities, by contract other than a commercial contract for go ods
or nonmanagement services, or otherwise, unless the power is the
result of an official position with or corporate office held by the
person. Control shall be presumed to exist if a person, directly or
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indirectly, owns, controls, holds with the power t o vote, or holds
proxies representing ten percent (10%) or more of the voting
securities of any other person. This presumption may be rebutted by
a showing that control does not exist in fact;
7. "Covered claim" means:
a. an unpaid claim, including one o f unearned premiums,
submitted by a claimant, which arises out of and is
within the coverage and is subject to the applicable
limits of an insurance policy to which this act
applies, if the insurer becomes an insolvent insurer
after the effective date of t his act and the policy
was issued by the insurer, and:
(1) the claimant or insured is a resident of this
state at the time of the insured event, provided
that for entities other than an individual, the
residence of a claimant or insured is the state
in which its principal place of business is
located at the time of the insured event, or
(2) the claim is a first-party claim for damage to
property from which the claim arises is
permanently located with a permanent location in
this state,
b. "Covered claim" includes claim obligations that arose
through the issuance of an insurance policy by a
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member insurer, which are later allocated,
transferred, merged into, novated, assumed by, or
otherwise made the sole responsibility of a member or
nonmember insurer if:
(1) the original member insurer has no remaining
obligations on the policy after the trans fer,
(2) a final order of liquidation with a finding of
insolvency has been entered against the insurer
that assumed the member 's coverage obligations by
a court of competent jurisdiction in the
insurer's state of domicile,
(3) the claim would have been a covered claim, as
defined in subparagraph a of paragraph 7 of this
section, if the claim had remained the
responsibility of the original member insurer and
the order of liquidation had been entered against
the original member insurer, with the same claim
submission date and liquidation date, and
(4) in cases where the member 's coverage obligations
were assumed by a nonmember insurer, the
transaction received prior regula tory or judicial
approval,
c. "Covered claim" shall not include:
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(1) any amount awarded as punitive or exemplary
damages,
(2) any amount sought as a return of premium under
any retrospective rating plan,
(3) any amount due any reinsurer, insurer, insurance
pool, or underwriting association, health
maintenance organization, hospital plan
corporation, professional health service
corporation or self-insurer as subrogation
recoveries, reinsurance recoveries, contribution,
indemnification or otherwise. No claim for any
amount due any reinsurer, insurer, insurance
pool, or underwriting association, health
maintenance organization, hospital plan
corporation, professional health service
corporation or self-insurer may be asserted
against a person insured under a po licy issued by
an insolvent insurer other than to the extent the
claim exceeds the assoc iation obligation
limitations set for forth in Section 2007 of this
title,
(4) any claims excluded pursuant to Section 15 2020.2
of this act title due to the high net w orth of an
insured,
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(5) any first-party claims by an insured that is an
affiliate of the insolvent company,
(6) any fee or other amount relating to goods or
services sought by or on behalf of any attorney
or other provider of goods and services retained
by the insolvent insurer or an insured prior to
the date it was determined to be insolvent ,
(7) any fee or other amount sought by or on behalf of
any attorney or other provider of goods and
services retained by any insured or claimant in
connection with the assertion or prosecution of
any claim, covered or otherwise, against the
Association,
(8) any claims for interest,
(9) any claim filed with the association or a
liquidator for protection afforded under the
policy of the insured for incurred -but-not-
reported losses, or
(10) notwithstanding any other provision of this act
or any other law to th e contrary, a claim that is
filed with the association Association on the
earlier of:
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(a) the final date set by the court for filing
of claims against the liquidator or receiver
of an insolvent insurer, or
(b) a date that is later than eighteen (18)
months after the date of the order of
liquidation or that is unknown and
unreported as of said date; provided,
however, that this shall not include any
claim for workers' compensation benefits
pursuant to Title 85A of the Oklahoma
Statutes and the applicable rul es of OAC
Title 810;
8. "Cybersecurity insurance ", for purposes of this act,
includes first-party and third-party coverage, in a policy or
endorsement, written on a di rect, admitted basis for losses and loss
mitigation arising out of or relating to data privacy breaches,
unauthorized information network, security intrusions, computer
viruses, ransomware, cyber extortion, identity theft, and similar
exposures;
9. "Insolvent insurer" means an insurer that is licensed to
transact insurance in this state eith er at the time the policy was
issued, when the obligation with respect to the covered claim was
assumed under an assumed claims transaction, or when the insured
event occurred and against whom a final order of liquidation has
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been entered after the effective date of this act with a finding of
insolvency by a court of competent jurisdiction in the state of
domicile of the insurer;
9. 10. "Insured" means any named insured , any additional
insured, any vendor, lessor or any other party identified as an
insured under the policy;
10.
11. a. "Member insurer" means any person who:
(1) writes any kind of direct insurance to which the
Oklahoma Property and Casualty Insurance Guar anty
Association Act applies pursuant to Section 2003
of this title, including the exchange of
reciprocal or inter-insurance contracts, and
(2) is licensed to transact insurance in this state,
except those insurers enumerated in Section 110
of this title or those insurers that are
otherwise exempted by law or order of the
Commissioner.;
b. An insurer shall cease to be a member insurer
effective on the day following the termination or
expiration of its license to transact the kinds of
insurance to which the Oklahoma Property and Casualty
Insurance Guaranty Association Act applies; however,
the insurer shall be liable as a member insurer for
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any and all obligations, including but not limited to
obligations for assessments levied after the
termination or expira tion, which relate to any insurer
that becomes an insolvent insurer prior to the
termination or expiration of the license of the
insurer; and
c. "Member insurer" does not mean:
(1) a "surplus lines insurer " or a person writing
surplus lines insurance as de fined in Section
1101.1 of this title, or
(2) a "risk retention group " as defined in Section
6453 of this title, or
(3) a "captive insurance company " as defined in
Section 6470.2 of this title;
11. 12. "Net direct written premiums " means direct gross
premiums written in this state on insurance policies to which this
act applies, including bu t not limited to policy and membership
fees, less the following amounts:
a. return premiums,
b. premiums on policies not taken, and
c. dividends paid or credited to pol icyholders on direct
business. "Net direct written premiums " does not
include premiums on contracts between insurers or
reinsurers;
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12. 13. "Novation" means that the assumed claim or policy
obligations became the direct obligations of the insolvent insur er
through consent of the policyholder and that thereafter the ceding
insurer or entity initially obligated under the claims or policies
is released by the policyholder from performing its claim or policy
obligations. Consent shall be express and an impli ed novation shall
not be allowed for the purposes, implementation and application of
the Oklahoma Property and Casualty Insurance Guaranty Association
Act;
13. 14. "Person" means the individual or other entities as
defined in Section 104 of this title;
14. 15. "Receiver" means liquidator, rehabilitator, conservator
or ancillary receiver, as the context requires; and
15. 16. "Self-insurer" means a person who covers its liability
through a qualified individual or group self -insurance program or
any other formal program created for the specific purpose of
covering liabilities typically covered by insurance.
SECTION 4. AMENDATORY 36 O.S. 2021, Section 2007, is
amended to read as follows:
Section 2007. A. The Oklahoma Property and C asualty Insurance
Guaranty Association shall:
1. Be obligated to pay the covered claims existing prior to the
determination of insolvency if the claims arise within thirty (30)
days after the determination of insolvency, or before the policy
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expiration date if less than thirty (30) days after the
determination, or before the insured replaces the policy or causes
its cancellation, if the insured does so within thirty (30) days of
the determination. The obligation shall be satisfied by paying to
the claimant an amount as follows:
a. the full amount of a covered claim for benefits under
a workers' compensation insurance coverage,
b. an amount not exceeding Ten Thousand Dollars
($10,000.00) per policy for a covered claim for the
return of unearned premium, and
c. an amount not exceeding One Hundred Fifty Thousand
Dollars ($150,000.00) per claimant for all other
covered claims except for claims relating to a
cybersecurity insurance policy, and
d. in no event shall the Association be obligated to pay
an amount in excess of Three Hundred Thousand Dollars
($300,000.00) for all first- and third-party claims
under a policy or endorsement providing, or that is
found to provide, cybersecurity insurance coverage and
arising out of or related to a single insured event,
regardless of the number of claims made or the number
of claimants.
In no event shall the Association be obligated to pay a claimant
an amount in excess of the obligation of the insolvent insurer under
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the policy or coverage from which the claim arises or in excess of
the limits of the obligation of the Association existing on the date
on which the order of liquidation is filed with the court clerk;
2. Any obligation of the association Association to defend an
insured shall cease upon the payment or tender b y the association
Association of an amount equal to the lesser of the covered claim
obligation limit of the association Association or the applicable
policy limit;
3. As payor of last resort, have all rights, duties and
obligations of the insolvent insure r as if the insurer had not
become insolvent including, but not limited to, the right to pursue
and retain salvage and subrogation recoverable on covered claim
obligations to the extent paid by the association Association. The
association Association shall not be deemed the insolvent insurer
for the purpose of conferring jurisdiction;
4. Allocate claims paid and expenses incurred among the three
accounts set out in Section 2005 of this title separately, and
assess member insurers separately for each accou nt amounts necessary
to pay the obligations of the Association under this section
subsequent to a member insurer becoming an insolvent insurer, the
expenses of handling covered claims subsequent to an insolvency, and
other expenses authorized by the Oklaho ma Property and Casualty
Insurance Guaranty Association Act, Sections 2001 through 2020 of
this title and Sections 2020.1 and 2020.2 of this title. The
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assessments of each member insurer shall be in the proportion that
the net direct written premiums of t he member insurer for the
calendar year preceding the assessment on the kinds of insuran ce in
the account bear to the net direct written premiums of all
participating insurers for the calendar year preceding the
assessment on the kinds of insurance in the account. Each member
insurer shall be notified in writing of the assessment not later
than thirty (30) days before it is due. No member insurer may be
assessed in any year an amount greater than two percent (2%) of the
net direct written premiums of that member or one percent (1%) of
that surplus of the member insurer as regards policyholde rs for the
calendar year preceding the assessment on the kinds of insurance in
the account, whichever is less. If the maximum assessment, together
with the other asset s of the Association, does not provide in any
one (1) year in any account an amount sufficient to make all
necessary payments from that account, the funds available may be
prorated and the unpaid portion shall be paid as soon thereafter as
funds become available. The Association shall pay claims in any
order which it deems reasonable, includ ing the payment of claims as
the claims are received from the claimants or in groups or
categories of claims. The Association may exempt or defer, in whole
or in part, the assessment of any member insurer, if the assessment
would cause the financial statement of the member insurer to reflect
amounts of capital or surplus less than the minimum amounts required
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for a certificate of authority by any jurisdiction in which t he
member insurer is authorized to transact insurance. During the
period of deferment, no dividends shall be paid to shareholders or
policyholders. Deferred assessments shall be paid when the payments
will not reduce capital or surplus below required min imums. The
payments may be refunded to those companies receiving larger
assessments by virtue of the deferment, or, at the election of any
company credited against future assessments. Each member insurer
serving as a servicing facility may set off agains t any assessment
authorized payments made on covered claims and expenses incurred in
the payment of covered claims by a member insurer if they are
chargeable to the account for which the assessment is made;
5. Investigate claims brought against the Associ ation and
adjust, compromise, settle and pay covered claims to the extent of
the obligation of the Association and deny all other claims. The
Association shall pay claims in any order that it may deem
reasonable, including, but not limited to, the payment of claims as
they are received from claimants or in groups of categories of
claims. The Association shall have the right to select and to
direct legal counsel under liability insurance policies for the
defense of covered claims;
6. Notify claimants in t his state as deemed necessary by the
Commissioner and upon the request of the Commissioner, to the extent
records are available to the Association. Notification may include,
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but shall not be limited to, a legal posting on the website of the
Association;
7. a. Handle claims through employees or through one or more
insurers or other persons de signated as servicing
facilities. Designation of a servicing facility is
subject to approval of the Commissioner, but such
designation may be declined by a member insu rer.
b. The Association shall have the right to review and
contest as set forth in this paragraph, settlements,
releases, compromises, waivers and judgments to which
the insolvent insurer or its insureds were parties
prior to the entry of the order of liqu idation. In an
action to enforce settlements, releases and judgments
to which the insolvent insurer or its insureds were
parties prior to the entry of the order of
liquidation, the Association shall have the right to
assert the following defenses:
(1) the Association shall not be bound by a
settlement, release, compromise or waiver
executed by an insured or the insurer, or any
judgment entered against the insured or the
insurer by consent or through a failure to
exhaust all appeals, if the settlement, rele ase,
compromise waiver or judgment was:
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(a) executed or entered within one hundred
twenty (120) days prior to the entry of an
order of liquidation, and the insured or the
insurer did not use reasonable care in
entering into the settlement, release,
compromise, waiver or judgment, or did not
pursue all reasonable appeals of an adverse
judgment, or
(b) executed by or taken against an insured or
the insurer based on default, fraud,
collusion or the failure of the insurer to
defend,
(2) if a court of competent jurisdiction finds that
the Association is not bound by a settlement,
release, compromise, waiver or judgment for the
releases provided for in division (1) of
subparagraph b of this paragraph, the settlement,
release, compromise, waiver or judgment shall b e
set aside and the Association shall be permitted
to defend any covered claim on the merits. The
settlement, release, compromise, waiver or
judgment shall not be considered as evidence of
liability in connection with any claim brought
against the Association or any other party
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pursuant to the Oklahoma Property and Casualty
Insurance Guaranty Association Act, and
(3) the Association shall have the right to assert
any statutory defenses or rights of offset
against any settlement, release, compromise or
waiver executed by an insured or the insurer, or
any judgment taken against the insured or the
insurer.
c. As to any covered claims arising from a judgment under
any decision, verdict or finding based on the default
of the insolvent insurer or its failure to d efend, the
Association, either on its own behalf or on behalf of
an insured, may apply t o have the judgment, order,
decision, verdict or finding set aside by the same
court or administrator that entered the judgment,
claim, decision, verdict or finding and shall be
permitted to defend on the merits;
8. Reimburse each servicing facility for obligations of the
Association paid by the facility and for reasonable expenses
incurred by the facility while handling claims on behalf of the
Association and pay the o ther expenses of the Association authorized
by the Oklahoma Property and Casualty Insura nce Guaranty Association
Act;
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9. Have standing to appear before any court of this state which
has jurisdiction over an impaired or insolvent insurer for whom the
Association is or may become obligated pursuant to the provisions of
the Oklahoma Property and Casualty Insurance Guaranty Association
Act. Standing shall extend to all matters germane to the powers and
duties of the Association including, but not limited to, proposals
for rehabilitation, acquisition, merger, reinsuring, or guaranteeing
the covered policies of the impaired or insolvent insurer, and the
determination of covered policies and contractual obligations of the
impaired or insolvent insurer; and
10. Notwithstanding any other provision of the Oklahoma
Property and Casualty Insurance Guaranty Association Act, an
insurance policy issued by a member insurer and later allocated,
transferred, assumed by or otherwise made the sole responsibility of
another insurer pursuant to any provision of law providing for the
division of an insurance compan y, or the statutory assumption or
transfer of designated policies under which there is no remaining
obligation to the transferring entity, shall be considered to have
been issued by a member insurer which is an insolvent insurer for
the purposes of this Act act in the event that the insurer to which
the policy has been allocated, transferred, assumed or otherwise
made the sole responsibility of is placed in liquidation. An
insurance policy that was issued by an insurer who is not a member
insurer and subsequently allocated, transferred, assumed by or
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otherwise made the sole responsibility of a member insurer under any
provision of law providing for the division of an ins urance company
shall not be considered to have been issued by a member insurer
pursuant to this Act act.
B. The Association may:
1. Employ or retain persons as are necessary to handle claims
and perform other duties of the Association;
2. Borrow funds necessary to effect the purposes of the
Oklahoma Property and Casualty Insurance Guaranty Association Act in
accordance with the plan of operation;
3. Sue or be sued;
4. Negotiate and become a party to contracts as are necessary
to carry out the purpose o f the Oklahoma Property and Casualty
Insurance Guaranty Association Act;
5. Refund to member insurers in proportion to the contribution
of each member insurer that amount by which the assets of the
Association exceed its liabilities, if at the end of any calendar
year the board of directors finds that the assets of the Association
exceed the liabilities as estimated by the board of directors for
the coming year;
6. Lend monies to an insurer declared to be impaired by the
Commissioner. The Association, wi th approval of the Commissioner,
shall approve the amount, length and terms of the loan. "Impaired
Insurer" for purposes of this section shall mean an insurer
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potentially unable to fulfill its contractual obligations, but shall
not mean an insolvent insur er;
7. Perform other acts as are necessary or proper to effectuate
the purpose of the O klahoma Property and Casualty Insurance Guaranty
Association Act;
8. Intervene as a party in interest in any supervision,
conservation, liquidation, rehabilitation, im pairment or
receivership in which policyholders ' interests and interests of the
Association may be or are affected; and
9. Be designated or may contract as a servicing facility for
any entity which may be recommended by the board of directors of the
Association and shall be approved by the Commissioner.
SECTION 5. AMENDATORY 36 O.S. 2021, Section 2009, is
amended to read as follows:
Section 2009. A. The Commissioner shall:
1. Notify the Oklahoma Property and Casualty Insurance Guaranty
Association Executive Director of the existence of an insolvent
insurer as soon as possible but not later than three (3) days after
notice of the determination is received. The Association shall be
entitled to a copy of a complaint seeking an ord er of liquidation
with a finding of insolvency against a member company at the same
time that the complaint is filed with a court of competent
jurisdiction; and
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2. Provide the Association with a statement of the net direct
written premiums of each member insurer upon the request of the
board of directors.
B. The Commissioner may:
1. Suspend or revoke, after the notice and hearing, the
certificate of authority to transact insurance in this state of any
member insurer which fails to pay an assessment when due or fails to
comply with the plan of operation. As an alternative, the
Commissioner may levy a fine on any member insurer which fails to
pay an assessment when due. The fine shall not exceed five percent
(5%) of the unpaid assessment per month, except that no fine shall
be less than One Hundred Dollars ($100.00) per month;
2. Revoke the designation of any servicing facility if the
Commissioner finds claims are being handled unsatisfactorily; or
3. Examine or audit the Association.
C. Any final action or order of the Commissioner under the
Oklahoma Property and Casualty Insurance Guaran ty Association Act
shall be subject to judicial review in a court of competent
jurisdiction.
SECTION 6. AMENDATORY 36 O.S. 2021, Section 2020. 1, is
amended to read as follows:
Section 2020.1. A. The Oklahoma Property and Casualty
Insurance Guaranty Association may join one or more organizations of
other state associations of similar purposes, to further the
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purposes and administer the powers a nd duties of the Association.
The Association may designate one or more of these organi zations to
act as a liaison for the Association and, to the extent the
Association authorizes, to bind the Association in agreements or
settlements with receivers of in solvent insurance companies or their
designated representatives.
B. The Oklahoma Property and Casualty Insurance Guaranty
Association, in cooperation with other obligated or potentially
obligated guaranty associations, or their designated
representatives, shall make all reasonable efforts to coordinate and
cooperate with receivers, or their designated representatives, in
the most efficient and uniform manner, including the use of Uniform
Data Standards as promulgated or approved by the National
Association of Insurance Commissioners.
SECTION 7. AMENDATORY 36 O.S. 2021, Section 2020.2, is
amended to read as follows:
Section 2020.2. A. For purposes of this section, "high net
worth insured" means any insured whose net worth exceeds Fifty
Million Dollars ($50,000,000.00) on December 31 of the year prior to
the year in which the insurer becomes an insolvent insurer; provided
that the net worth of an insured on that date shall be deemed to
include the aggregate net worth of the insured and all of its
subsidiaries and affiliates as calculated on a consolidated basis.
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B. 1. The Oklahoma Property and Casualty Insurance Guaranty
Association shall not be obligated to pay any first -party claims by
a high net worth insured; and
2. The Association shall have the right to recover from a high
net worth insured all amounts paid by the association Association to
or on behalf of the insured, whether for indemnity, defense or
otherwise; and
3. The Association may also, at its sole discretion and wi thout
assumption of any ongoing duty to do so, pay any cybersecurity
insurance obligations covered by a policy or endorsement of an
insolvent company on behalf of a high net worth insured as defined
in this section. In that case, the Association shall rec over from
the high net worth insured under this section all amounts paid on
its behalf, all allocated claim adjusted expenses related to such
claims, the Association 's attorney fees, and all court costs in any
action necessary to collect the full amount to the Association's
reimbursement under this section .
C. The Association shall not be obligated to pay any claim that
would otherwise be a covered claim that is an obligation to or on
behalf of a person who has a net worth greater than that allowed by
the insurance guaranty association law of the state of residence of
the claimant at the time specified by the applicable law of that
state, and which association has denied coverage to that claimant on
that basis.
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D. The Association shall establish reasonable procedures for
requesting financial information from insureds on a confidential
basis for purposes of applying this section, provided that the
financial information may be shared with any other association
similar to the association and the liquidator for the insolvent
insurer on the same confidential basis. Any request to an insured
seeking financial information shall advise the insured of the
consequences of failing to provide the financial information. If an
insured refuses to provide the requested fi nancial information where
it is requested and available, the Association may, until the time
as the information is provided, provisionally deem the insured to be
a high net worth insured for the purpose of denying a claim under
subsection B of this section .
E. In any lawsuit contesting the applicability of this section
where the insured has refused to provide financial information under
the procedure established pursuant to subsection D of this section,
the insured shall bear the burden of proof concerning its net worth
at the relevant time. If the insured fails to prove that its net
worth at the relevant time was less than the applicable amount, the
court shall award the association its full costs, expenses and
reasonable attorney fees in contesting the c laim.
SECTION 8. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2020.3 of Title 36, unless there
is created a duplication in numbering, reads as follows:
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No person, including an insurer, insurance pr oducer, or
affiliate of an insurer, shall publish, disseminate, circulate, or
place before the public, or cause, directly or indirectly, to be
published, disseminated, circulated or placed before the public, in
any newspaper, magazine or other publication, or in the form of a
notice, circular, pamphlet, letter or poster, or over any radio
station or television station, or in any other way, any
advertisement, which uses the existence of the Insurance Guaranty
Association of this state for the purpose of sale s, solicitation, or
inducement to purchase any form of insurance covered by the Oklahoma
Property and Casualty Insurance Guaranty Association law. However,
this section does not apply to the Insurance Guaranty Association or
to any other entity which does not sell or solicit insurance.
SECTION 9. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2020.4 of Title 36, unless there
is created a duplication in numbering, reads as follows:
A. Except as provided in subsection B of this section, records
created, held by, or pertaining to the Oklahoma Property and
Casualty Insurance G uaranty Association are not public records under
the Oklahoma Open Records Act, are confidential, and are not subject
to inspection or disclosure.
B. Subsection A of this section does not apply to the plan of
operation required under Section 2008 of Title 36 of the Oklahoma
Statutes and other information required to be filed with the
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Insurance Commissioner under Title 36 of the Oklahoma Statutes
unless otherwise prohibited from release by law.
SECTION 10. This act shall become effective November 1, 2025.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND INSURANCE
April 10, 2025 - DO PASS AS AMENDED