Oklahoma § 36-1645

§ 36-1645.

Recovery of distributions by receiver - Liability.

Oklahoma Statutes - Title 36. Insurance

A. If an order for liquidation or rehabilitation of a domestic

insurer has been entered, the receiver appointed under the order

shall have a right to recover on behalf of the insurer:

1. From any parent corporation or holding company or person or

affiliate who otherwise controlled the insurer, the amount of

distributions (other than distributions of shares of the same class

of stock) paid by the insurer on its capital stock; or

2. Any payment in the form of a bonus, termination settlement

or extraordinary lump-sum salary adjustment made by the insurer or

its subsidiary, to a director, officer or employee,

where the distribution or payment pursuant to paragraph 1 or 2 of

this subsection is made at any time during the one (1) year

preceding the petition for liquidation, conservation or

rehabilitation, as the case may be, subject to the limitations of

subsections B, C and D of this section.

B. No distribution shall be recoverable if the parent or

affiliate shows that when paid the distribution was lawful and

reasonable, and that the insurer did not know and could not

reasonably have known that the distribution might adversely affect

the ability of the insurer to fulfill its contractual obligations.

C. Any person who was a parent corporation or holding company

or a person who otherwise controlled the insurer or affiliate at the

time the distributions were paid shall be liable up to the amount of

distributions or payments under subsection A of this section which

the person received. Any person who otherwise controlled the

insurer at the time the distributions were declared shall be liable

up to the amount of distributions that would have been received if

they had been paid immediately. If two or more persons are liable

with respect to the same distributions, they shall be jointly and

severally liable.

D. The maximum amount recoverable under this section shall be

the amount needed in excess of all other available assets of the

impaired or insolvent insurer to pay the contractual obligations of

the impaired or insolvent insurer and to reimburse any guaranty

funds.

E. To the extent that any person liable under subsection C of

this section is insolvent or otherwise fails to pay claims due from

it, its parent corporation or holding company or person who

otherwise controlled it at the time the distribution was paid shall

be jointly and severally liable for any resulting deficiency in the

amount recovered from the parent corporation or holding company or

person who otherwise controlled it.

Added by Laws 2017, c. 350, § 15, emerg. eff. May 31, 2017.