§ 1686. Application for Approval of Insurance Business Transfer Plan
Oklahoma Statutes AnnotatedTitle 36. InsuranceEffective: April 29, 2022
Effective: April 29, 2022
36 Okl.St.Ann. § 1686
§ 1686. Application for Approval of Insurance Business Transfer Plan
1. An Insurance Business Transfer Plan must be filed by the applicant with the Insurance Commissioner for his or her review and approval. The Plan must contain the information set forth below or an explanation as to why the information is not included. The Plan may be supplemented or revised with additional, updated, or other information as it becomes available or when deemed necessary by the Commissioner:
3. The Commissioner shall have sixty (60) business days from the date of receipt of a complete Insurance Business Transfer Plan to review the Plan to determine if the applicant is authorized to submit it to the court. The Commissioner may extend the sixty-day review period for an additional thirty (30) business days.
5. If the Commissioner determines that the Insurance Business Transfer will cause a material adverse effect on the interests of policyholders, reinsurers, or claimants that are part of the subject business, the Commissioner shall notify the applicant and specify any modifications, supplements or amendments and any additional information or documentation with respect to the Plan that must be provided to the Commissioner before he or she will allow the applicant to proceed with the court filing.
6. The applicant shall have thirty (30) days from the date the Commissioner notifies him or her, pursuant to paragraph 5 of this subsection, to file an amended Insurance Business Transfer Plan providing the modifications, supplements or amendments and additional information or documentation as requested by the Commissioner. If necessary the applicant may request in writing an extension of time of thirty (30) days. If the applicant does not make an amended filing within the time period provided for in this paragraph including any extension of time granted by the Commissioner, the Insurance Business Transfer Plan filing will terminate and a subsequent filing by the applicant will be considered a new filing which shall require compliance with all provisions of this act as if the prior filing had never been made.
1. Within thirty (30) days after the filing and transmission of the Commissioner's order determining the Plan satisfies the requirements of this act, the assuming insurer, transferring insurer, or reinsurer may file a petition with the court seeking an order of approval and implementation of the Insurance Business Transfer Plan. Upon written request by the applicant to the Commissioner, the period for filing a petition under this subsection with the court may be extended for an additional thirty (30) days.
e. request for the court to enter judgement1 in favor of the petitioner, which shall include finding of fact, conclusion of law, order of approval and implementation of the Plan, and retention of jurisdiction to allow the parties to request such orders regarding incidental, consequential, and supplementary matters necessary to assure the full and effective implementation of the Plan.
5. Within thirty (30) days after the filing of the petition, the petitioner shall file a request for the court to enter a preliminary scheduling order, which shall include a date and time for a status conference. The status conference shall occur no less than fourteen (14) days after the conclusion of the sixty (60) day comment period required in paragraph 8 of this subsection.
9. Any person including by their legal representative, who provides written notice within the sixty (60) day comment period identified in paragraph 8 of this subsection, and states the person considers himself, herself or itself to be materially adversely affected by the approval and implementation of the Plan may present evidence or comments to the court at trial. However, such comment or evidence shall not confer standing as a party on any person. Any person participating in any pretrial proceeding or the trial of petitioner's request for approval and implementation of the Plan must follow the process established by the court and shall bear his or her own costs and attorney fees.
10. Only parties to this matter and those persons and other third parties who file a request to provide comments, objections, or requests to be heard pursuant to paragraph 8 of this subsection shall receive further notice and copies of filings with the court, pursuant to subsection D of Section 2005 of Title 12 of the Oklahoma Statutes and the Rules for District Courts of Oklahoma; provided, however, all persons and other third parties shall receive notice pursuant to subparagraph d of paragraph 3 of subsection C of this section.
3. If the court finds that the approval and implementation of the Insurance Business Transfer Plan will not materially adversely affect the interests of policyholders or claimants of policies which are part of the subject business, the court shall enter judgement in favor of the petitioner. The judgement and order shall include:
(2) simultaneous transfer and novation from the transferring insurer and the assuming insurer of all property, rights, obligations, and liabilities including, but not limited to, the ceded reinsurance of transferred policies and contracts included in the subject business, notwithstanding any nonassignment provisions in any such reinsurance contracts or other agreements,
(3) assuming insurer shall have all of transferring insurer's rights, obligations, and liabilities regarding the subject business as if it were the original insurer of such policies including the same standing as the transferring insurer pursuant to contract, statute, and interpretation, relating back to the issuance of such policies, and
(4) policyholders' and claimants' rights obligations and liabilities, if any, under their respective policies which are part of the subject business shall not be enlarged, extended, limited, or reduced; provided, however, the policyholders and claimants may not pursue or be pursued by the transferring insurer to satisfy their respective rights, obligations, and liabilities, but instead the policyholders and claimants may pursue or be pursued by the assuming insurer,
D. An unexpired and in-force policy issued to a policyholder who resides in a state other than Oklahoma shall not be transferred and novated unless or until the assuming insurer is licensed, authorized, permitted, or otherwise legally allowed to administer the subject business in the same manner as the transferring insurer in the state of the policyholder's residence.
The Commissioner shall have the authority to promulgate rules to effectuate the provisions of the Insurance Business Transfer Act.
G. All testimony, documents, exhibits, analysis, communications, or other information or evidence submitted to the Commissioner or independent expert in contemplation of an application, submitted to the court in support of a petition, or developed by the Commissioner or independent expert in connection with such application, or petition for approval and implementation of an Insurance Business Transfer Plan, shall be treated for purposes of confidentiality as an examination of the financial condition and/or market conduct of the transacting companies under Sections 309.1 through 309.7 of this title.
Credits
Laws 2018, c. 232, § 6, eff. Nov. 1, 2018; Laws 2019, c. 381, § 3, eff. Nov. 1, 2019; Laws 2022, c. 126, § 4, emerg. eff. April 29, 2022.
Footnotes
So in original.
36 Okl. St. Ann. § 1686, OK ST T. 36 § 1686
Current with emergency effective legislation through Chapter 257 of the Second Regular Session of the 59th Legislature (2024). Some sections may be more current, see credits for details.
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