Oklahoma § 36-1696 - Creditors of protected cells – Obligation of protected

§ 36-1696. Creditors of protected cells – Obligation of protected

cell company.

A. 1. Protected cell assets shall only be available to the

creditors of the protected cell company that are creditors in

respect to that protected cell and shall be entitled, in conformity

with the provisions of the Protected Cell Companies Act, to have

recourse to the protected cell assets attributable to that protected

cell, and shall be absolutely protected from the creditors of the

protected cell company that are not creditors in respect of that

protected cell and, who accordingly, shall not be entitled to have

recourse to the protected cell assets attributable to that protected

cell. Creditors, with respect to a protected cell, shall not be

entitled to have recourse against the protected cell assets of other

protected cells or the assets of the protected cell company's

general account.

2. Protected cell assets shall only be available to creditors

of a protected cell company after all protected cell liabilities

have been extinguished or provided for in accordance with the plan

of operation relating to that protected cell.

B. When an obligation of a protected cell company to a person

arises from a transaction, or is imposed, with respect to a

protected cell:

1. That obligation of the protected cell company shall extend

only to the protected cell assets attributable to that protected

cell, and the person shall, with respect to that obligation, be

entitled to have recourse only to the protected cell assets

attributable to that protected cell; and

2. That obligation of the company shall not extend to the

protected cell assets of any other protected cell or the assets of

the protected cell company's general account, and that person shall

not, with respect to that obligation, be entitled to have recourse

to the protected cell assets of any other protected cell or the

assets of the protected cell company's general account.

C. When an obligation of a protected cell company relates

solely to the general account, the obligation of the protected cell

company shall extend only to, and that creditor shall, with respect

to that obligation, be entitled to have recourse only to, the assets

of the protected cell company's general account.

D. Other than with regard to the application of this section,

the activities, assets and obligations relating to a protected cell

are not subject to the provisions of Articles 20A and 20B of Title

36 of the Oklahoma Statutes. Neither a protected cell nor a

protected cell company shall be assessed by or be required to

Oklahoma Statutes - Title 36. Insurance

contribute to any guaranty fund or guaranty association in this

state with respect to the activities, assets or obligations of a

protected cell. Nothing in this section shall affect the activities

or obligations of an insurer's general account.

E. In no event shall the establishment of one or more protected

cells alone constitute or be deemed to be a fraudulent conveyance,

an intent by the protected cell company to defraud creditors, or the

carrying out of business by the protected cell company for any other

fraudulent purpose.

Added by Laws 2019, c. 362, § 6, eff. Nov. 1, 2019.