§ 1938. Delinquency proceedings--Procedures--Compensation of personnel
Oklahoma Statutes AnnotatedTitle 36. InsuranceEffective: November 1, 2022
Effective: November 1, 2022
36 Okl.St.Ann. § 1938
§ 1938. Delinquency proceedings--Procedures--Compensation of personnel
A. Upon written notice to the receiver, a person shall be placed on the service list to receive notice of matters filed by the receiver. It shall be the responsibility of the person requesting notice to inform the receiver in writing of any changes to his or her address, or to request that his or her name be deleted from the service list. The receiver may require that the persons on the service list provide confirmation that they wish to remain on the service list. Any person who fails to confirm his or her intent to remain on the service list may be purged from the service list. Inclusion on the service list does not confer standing in the delinquency proceeding to raise, appear, or be heard on any issue.
1. The receiver shall file an application explaining the proposed action and the basis therefor. The receiver may include any evidence in support of the application. If the receiver determines that any documents supporting the application are confidential, the receiver may submit them to the receivership court under seal for in-camera inspection;
2. The receiver shall provide notice of the application to all persons on the service list and any other parties as determined by the receiver. Notice may be provided by first-class mail, postage paid, electronic mail, or facsimile transmission, at the receiver's discretion. For purposes of this section, notice is deemed to be given on the date that it is deposited with the U.S. Postmaster or transmitted, as applicable, to the last-known address as shown on the service list;
3. Any party in interest objecting to the application shall file an objection specifying the grounds therefor within fourteen (14) days or such longer time as the court may specify in the notice of the filing of the application and shall serve copies on the receiver and any other persons served with the application within the same time period. An objecting party shall have the burden of showing why the receivership court should not authorize the proposed action;
4. If no objection to the application is timely filed, the receivership court may enter an order approving the application without a hearing or hold a hearing to determine if the receiver's application should be approved. The receiver may request that the receivership court enter an order or hold a hearing on an expedited basis; and
5. If an objection is timely filed, the receivership court may hold a hearing. If the receivership court approves the application and, upon a motion by the receiver, determines that the objection was frivolous or filed merely for delay or for other improper purpose, the receivership court shall order the objecting party to pay the receiver's reasonable costs and fees of defending the action.
C. In any proceeding commenced against an insurer pursuant to Article 18 by a judicial proceeding or Article 19 of this title1 for the purpose of liquidating, rehabilitating, reorganizing or conserving such insurer, hereinafter called delinquency proceeding, the compensation of personnel employed or retained to assist the Insurance Commissioner with the proceeding shall be approved by the court before the compensation may be paid. The Insurance Commissioner shall apply to the court for approval; provided, if any board or association is authorized by the Commissioner to provide assistance to the Commissioner, the board or association shall apply to the court.
D. Upon receiving the application for approval of compensation, the party responsible for the filing of the application shall cause notice in writing of the application, time to file objections, and hearing if there are objections, to be served upon the following persons not less than ten (10) days before the objection period expires:
3. Ten persons, or such lesser number as there may be, who hold the largest number of shares in the insurance company involved in the delinquency proceeding, as indicated by the company's stock register as of the time that the company was placed under supervision pursuant to Section 1804 of this title or at the time that an application was filed with the court for the commencement of a delinquency proceeding pursuant to Section 1903 of this title. Said shareholders shall serve as representatives of the insurance company.
F. At the hearing, the court shall fully investigate the compensation of persons employed or retained to assist the Insurance Commissioner with the conduct of the delinquency proceeding. The court shall not approve the compensation until it has been made to appear to the satisfaction of the court, based upon competent evidence, that such compensation is justified.
Credits
Laws 1978, c. 144, § 1. Renumbered from Title 36, § 351 and amended by Laws 1997, c. 418, §§ 23, 127, eff. Nov. 1, 1997; Laws 2022, c. 119, § 5, eff. Nov. 1, 2022.
Footnotes
Title 36, § 1801 et seq. or § 1901 et seq.
36 Okl. St. Ann. § 1938, OK ST T. 36 § 1938
Current with emergency effective legislation through Chapter 106 of the Second Regular Session of the 59th Legislature (2024). Some sections may be more current, see credits for details.
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