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§ 6414. Market Assistance Association--Powers and duties--Plan of operation--Insurer's fina...

Oklahoma Statutes AnnotatedTitle 36. InsuranceEffective: November 1, 2022

Oklahoma Statutes Annotated
Title 36. Insurance (Refs & Annos)
Chapter 2. Miscellaneous Provisions
Market Assistance Association Act
Effective: November 1, 2022
36 Okl.St.Ann. § 6414
§ 6414. Market Assistance Association--Powers and duties--Plan of operation--Insurer's financial liability--Termination of membership
Currentness
A. The Association created pursuant to the Market Assistance Association Act shall have the power on behalf of its members to:
1. Require members to issue policies of insurance to applicants, subject to limitations specified in the plan of operation required by the Market Assistance Association Act; irregardless of the type of insurance coverage, the limits of liability for homeowners’ liability insurance, shall be governed by the amounts specified in subsection A of Section 154 of Title 51 of the Oklahoma Statutes; and
2. Call upon member insurers who have expertise or familiarity with a particular line of homeowners’ liability insurance to assist in underwriting such insurance.
B. The Board after consultation with the Association, the Insurance Commissioner and other affected entities, shall promulgate a plan of operation consistent with the provisions of this section, to become effective no later than ninety (90) days after the date of the inception of the Association.
1. The plan of operation shall provide for economic, fair and nondiscriminatory administration and for prompt and efficient provision of insurance, and shall contain other provisions including, but not limited to, the following:
a. preliminary assessment of all members for initial expenses necessary to commence operations of the Association,
b. establishment of necessary facilities,
c. management of the Association,
d. assessment of members, and assessment of policyholders if a market assistance association for professionals is declared, to defray losses and expenses,
e. establishment of committees as may be necessary to facilitate the administration of the Association,
f. procedures providing that an insured shall have proof that he or she has coverage that has been canceled or nonrenewed by his or her current carrier and has subsequently requested and been refused homeowners’ or homeowners’ liability coverage from two insurers licensed to do business in this state, or that his or her premium has been increased by seventy-five percent (75%) or more from the previous year, before requesting insurance coverage from the Association,
g. appointment of members of the Association on a rotating basis to provide homeowners’ and homeowners’ liability insurance coverage based upon direct premiums for homeowners’ and homeowners’ liability insurance, written in the state in the preceding calendar year,
h. procedures for determining amounts of insurance to be provided by members of the Association, and
i. procedures for two or more member insurers to share an insured risk if coverage for that risk is beyond the ability for one insurer.
2. The plan of operation shall provide that any balance remaining in the funds of the Association at the close of its fiscal year shall be added to the reserves of the Association and may be used for expenses of the Association or any successor association.
3. Amendments to the plan of operation may be made by the Board.
C. All insurers who are members of the Association shall participate in the Association’s writings, expenses, and losses in the proportion that the net direct premiums of each such member written during the preceding calendar year bears to the aggregate net direct premiums written in this state by all members of the Association. Each insurer’s proportion of participation in the Association shall be determined annually on the basis of such net direct premiums written during the preceding calendar year, as reported in the annual statements and other reports filed by the insurer that may be required by the board of directors. No member shall be obligated in any one (1) year to write liability insurance business from the Association that would result in the member insurer writing more than ten percent (10%) of its total annual liability insurance, from all lines of liability insurance, from the Association. Likewise, no member shall be obligated in any one (1) year to write homeowners’ insurance business from the Association that would result in the member insurer writing more than ten percent (10%) of its total annual homeowners’ insurance, from the Association.
D. An applicable insurer ceasing to be licensed or authorized to transact insurance business pursuant to the Insurance Code1 shall automatically cease to be a member of the Association effective at 12:01 a.m. on the day following the termination or expiration of its certificate of authority and shall no longer be subject to the plan of operation or requirements of the Association; provided, however, such insurer shall remain liable for any annual assessments of the Association based on expenses incurred by the Association while such license or authority was in effect.

Credits

Laws 1986, c. 251, § 47, emerg. eff. June 13, 1986; Laws 2022, c. 358, § 2, eff. Nov. 1, 2022.

Footnotes

1
Title 36, § 101 et seq.
36 Okl. St. Ann. § 6414, OK ST T. 36 § 6414
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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