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§ 6455. Conditions for doing business in state--Prohibited acts

Oklahoma Statutes AnnotatedTitle 36. InsuranceEffective: November 1, 2021

Oklahoma Statutes Annotated
Title 36. Insurance (Refs & Annos)
Chapter 2. Miscellaneous Provisions
Oklahoma Risk Retention Act
Effective: November 1, 2021
36 Okl.St.Ann. § 6455
§ 6455. Conditions for doing business in state--Prohibited acts
Currentness
Risk retention groups chartered and licensed in states other than this state and seeking to do business as risk retention groups in this state shall observe and abide by the laws of this state as follows:
A. Before offering insurance in this state, a risk retention group shall submit to the Commissioner of this state, on a form prescribed by the National Association of Insurance Commissioners of this state:
1. A statement identifying the state or states in which the risk retention group is chartered and licensed as a liability insurance company, the date of chartering, its principal place of business, and such other information, including information on its membership, as the Commissioner of this state may require to verify that the group is qualified to be licensed as a risk retention group;
2. A copy of its plan of operation or a feasibility study and revisions of such plan or study submitted to its state of domicile; provided, however, that the provision relating to the submission of a plan of operation or a feasibility study shall not apply with respect to any line or classification of liability insurance which:
a. was defined in the federal Product Liability Risk Retention Act of 19811 before October 27, 1986, and
b. was offered before such date by a risk retention group which had been chartered and operating for not less than three (3) years before such date;
3. A copy of any material revision to its plan of operation or feasibility study required by subsection B of Section 6454 within thirty (30) days of the date of approval of the revision by the Insurance Commissioner of its chartering state, or within thirty (30) days of filing if no such approval is required; and
4. A statement of registration which designates the Commissioner of this state as its agent for the purpose of receiving service of legal documents or process.
The risk retention group shall pay a filing fee, in an amount determined by the Commissioner.
B. Any risk retention group doing business in this state shall submit to the Commissioner of this state:
1. A copy of the group's financial statement submitted to its state of domicile, which shall be certified by an independent public accountant or certified public accountant and contain a statement of opinion on loss and loss adjustment expense reserves made by a member of the American Academy of Actuaries or a loss reserve specialist qualified pursuant to criteria established by the National Association of Insurance Commissioners;
2. A copy of each examination of the risk retention group as certified by a Commissioner or public official conducting the examination;
3. Upon request by the Commissioner of this state, a copy of any audit performed with respect to the risk retention group; and
4. Such information as may be required to verify its continuing qualification as a risk retention group.
C. 1. Each risk retention group shall be liable for the payment of premium taxes and taxes on premiums of direct business for risk, and shall be subject to taxation at the same rate and subject to the same interest, fines, and penalties for nonpayment as that applicable to foreign admitted insurers.
2. To the extent licensed agents or brokers are utilized pursuant to Section 6462 of this title, they shall report to the Commissioner premiums for direct business for risks resident or located within the state which the licensees have placed with or on behalf of a risk retention group not chartered in this state.
3. To the extent that insurance agents or brokers are utilized pursuant to Section 6462 of this title, each agent or broker shall keep a complete and separate record of all policies procured from each such risk retention group, which record must be open to examination by the Insurance Commissioner or a designee of the Insurance Commissioner or a representative of the Insurance Commissioner on demand. These records shall, for each policy and each kind of insurance provided thereunder, include the following:
a. the limit of liability,
b. the time period covered,
c. the effective date,
d. the name of the risk retention group which issued the policy,
e. the gross premium charged, and
f. the amount of return premiums, if any.
D. Any risk retention group, its agents and representatives shall comply with the provisions of the Unfair Claims Settlement Practices Act2 of this state.
E. Any risk retention group shall comply with the laws of this state regarding deceptive, false or fraudulent acts or practices. However, if the Commissioner of this state seeks an injunction regarding such conduct, the injunction shall be obtained from a court of competent jurisdiction.
F. Any risk retention group shall submit to an examination by the Commissioner of this state to determine its financial condition if the Commissioner of the jurisdiction in which the group is chartered has not initiated an examination or does not initiate an examination within sixty (60) days after a request to do so is made by the Commissioner of this state. Any such examination shall be coordinated to avoid unjustified repetition of examination by Commissioners of other states and shall be conducted in an expeditious manner and in accordance with the National Association of Insurance Commissioner's Examiner Handbook.
G. Every application form for insurance from a risk retention group and every policy issued by a risk retention group shall contain in ten-point type on the front page and the declaration page, the following notice:
NOTICE
This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group.
H. The following acts by a risk retention group are hereby prohibited:
1. The solicitation or sale of insurance by a risk retention group to any person who is not eligible for membership in such group; and
2. The solicitation or sale of insurance by, or operation of, a risk retention group that is in a hazardous financial condition or is financially impaired.
I. No risk retention group shall be allowed to do business in this state if an insurance company is directly or indirectly a member or owner of such risk retention group, other than in the case of a risk retention group all of whose members are insurance companies.
J. The terms of any insurance policy offered by a risk retention group shall not provide, or be construed to provide, coverage prohibited generally by the Insurance Code3 or any other law of this state or declared unlawful by the highest court of this state whose law applies to insurance policy.
K. A risk retention group which is not chartered in this state but is doing business in this state shall comply with a lawful order issued in a voluntary dissolution proceeding or in a delinquency proceeding commenced by an Insurance Commissioner of any state if there has been a finding of financial impairment after an examination by any state Insurance Commissioner under subsection F of this section.

Credits

Laws 1987, c. 157, § 5, emerg. eff. June 25, 1987; Laws 2004, c. 334, § 2, emerg. eff. May 25, 2004; Laws 2021, c. 314, § 4, eff. Nov. 1, 2021.

Footnotes

1
15 U.S.C.A. § 3901 et seq.
2
Title 36, § 1250.1 et seq.
3
Title 36, § 101 et seq.
36 Okl. St. Ann. § 6455, OK ST T. 36 § 6455
Current with emergency effective legislation through Chapter 182 of the Second Regular Session of the 59th Legislature (2024). Some sections may be more current, see credits for details.
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