Oklahoma § 15-141.9 - Revocation or suspension of license

§ 15-141.9. Revocation or suspension of license

A. The license of any service warranty association may be

revoked or suspended, or the Insurance Commissioner may refuse to

renew any such license, if it is determined that the association has

violated any lawful rule or order of the Commissioner or any

provision of the Service Warranty Act, or if the association is

determined to be insolvent or impaired.

B. The license of any service warranty association shall be

suspended or revoked if it is determined that such association:

1. Is in any condition as would render its further transaction

of service warranties in this state hazardous or injurious to its

warranty holders or to the public;

2. Has refused to be examined or to produce its accounts,

records, and files for examination, or if any of its officers have

refused to give information with respect to its affairs or have

refused to perform any other legal obligation as to such

examination, when required by the Commissioner;

3. Has failed to pay any final judgment rendered against it in

this state within sixty (60) days after the judgment became final;

4. Has, without just cause, refused to pay proper claims

arising under its service warranties or, without just cause, has

compelled warranty holders to accept less than the amount due them,

or to employ attorneys, or to bring suit against the association to

secure full payment or settlement of such claims;

5. Is affiliated with and under the same general management or

interlocking directorate or ownership as another service warranty

association which transacts direct warranties in this state without

having a license; or

6. Is using such methods or practices in the conduct of its

business as would render its further transaction of service

warranties in this state hazardous or injurious to its warranty

holders or to the public.

C. The Commissioner may at his or her discretion and without

advance notice or hearing immediately suspend the license of any

Oklahoma Statutes - Title 15. Contracts

service warranty association if the Commissioner finds that one or

more of the following circumstances exist:

1. The association is insolvent or impaired;

2. The reserve account required by the Service Warranty Act is

not being maintained;

3. A proceeding for receivership, conservatorship

rehabilitation or any other delinquency proceeding regarding the

association has been commenced in any state; or

4. The financial condition or business practices of the

association otherwise pose an imminent threat to the public health,

safety, or welfare of the residents of this state.

D. A violation of the Service Warranty Act by an insurer is

grounds for suspension or revocation of the insurer's certificate of

authority in this state.

Added by Laws 2012, c. 150, § 9, eff. Nov. 1, 2012. Amended by Laws

2018, c. 234, § 3, eff. Nov. 1, 2018.