Oklahoma § 36-1624 - Acquiring or holding real property

§ 36-1624. Acquiring or holding real property

No insurance company, foreign, alien or domestic, doing business

in Oklahoma, may acquire or hold real property therein, except as

follows:

1. Such as shall be requisite for the convenient accommodation

of the transaction of its own business; the amount invested in such

real property shall not exceed ten percent (10%) of the investing

company's admitted assets but the Insurance Commissioner may grant

permission to the company to invest in real property for such

purpose in such increased amount as the Insurance Commissioner may

deem proper on the showing made, if upon a hearing held the

Insurance Commissioner finds that the amount represented by such

percentage of its admitted assets is insufficient to provide

Oklahoma Statutes - Title 36. Insurance

convenient accommodation for the company's business. Real estate

maintained for the convenient accommodation of the transaction of

its own business, permitted to be carried as an admitted asset of

the company pursuant to this section shall be carried at an amount

equal to its cost at the time of acquisition together with the

actual cost of improvements made thereon, less encumbrances and less

depreciation; provided, however, any real estate carried at fair

market value as an admitted asset of the company on November 1,

1989, shall be excluded from this provision;

2. Such as shall have been mortgaged to it in good faith by way

of security for loans previously contracted for monies due;

3. Such as shall have been conveyed to it in satisfaction of

debts previously contracted in course of its dealings;

4. Such as shall have been purchased at sales on judgments,

decrees, or mortgages obtained or made for such debts;

5. Such real property as shall have been acquired in whole or

in part, in exchange for real property of approximately the same

value theretofore legally acquired and held by it;

6. Real property and improvements thereon located in

incorporated cities and towns and as additions thereto or real

property and improvements wherever located acquired for sale or

lease, if such lessee or purchaser could have legally acquired the

same in the first instance, and may make improvements thereon for

commercial and industrial purposes as an investment for the

production of income. The phrase "commercial and industrial

purposes" shall not include real property primarily intended for use

or valued as agricultural, horticultural, farm, and ranch, unless

adjacent to other real property the ownership of which is permitted

under this section and was acquired prior to July 1, 2006. The

total amount invested in such real property and improvements thereon

shall not exceed the company's capital and/or surplus, or ten

percent (10%) of its admitted assets whichever is the lesser;

provided, however, the amount invested in any one investment shall

not exceed four percent (4%) of the company's admitted assets. The

admitted assets shall be determined by the company's last annual

report made as of December 31, immediately preceding and which has

been filed with the Insurance Commissioner as required by law, or as

shown by a current financial statement on file with the

Commissioner;

7. Real property acquired and held under Section 1612.1 of this

title; and

8. Subject to specific limitations otherwise applicable, no

more than an aggregate of thirty-five percent (35%), except as

provided in paragraph 1 of subsection C of Section 1622 of this

title, of the company's admitted assets may be invested in real

property pursuant to this section, purchase money mortgages pursuant

Oklahoma Statutes - Title 36. Insurance

to Section 1623 of this title, and mortgage loans pursuant to

Section 1622 of this title.

Added by Laws 1957, p. 290, § 1624, operative July 1, 1957. Amended

by Laws 1965, c. 123, § 16; Laws 1989, c. 181, § 5, eff. Nov. 1,

1989; Laws 2006, c. 264, § 50, eff. July 1, 2006; Laws 2017, c. 287,

§ 4, eff. Nov. 1, 2017; Laws 2021, c. 274, § 2, emerg. eff. April

27, 2021.