Oklahoma § 36-1805 - Appointment of conservator; duties

§ 36-1805. Appointment of conservator; duties

A. If, after notice and hearing, at the conclusion of the 90day period the Commissioner determines that the insurer has failed

to comply with his lawful requirements, or upon consent of the

insurer, he may appoint a conservator, who shall immediately:

1. Take charge of such insurer and all of the property, books,

records and effects;

2. Conduct its business; and

3. Take such other steps toward the removal of the causes and

conditions which have necessitated such order, as the Commissioner

may direct.

B. During the pendency of conservatorship, the conservator

shall make such reports as may be required by the Commissioner, and

may:

1. Take all necessary measures to preserve, protect and recover

any assets or property of such insurer including claims or causes of

action belonging to orwhich may be asserted by such insurer in his

own name as conservator; and

2. File, prosecute and defend any legal actions which have been

filed, or which may thereafter be filed, by or against such insurer,

as he deems necessary to protect all of the interested parties or

any property affected thereby. The conservator shall file all

quarterly and annual reports required by the Oklahoma Insurance Code

and in the same manner as the insurer.

Oklahoma Statutes - Title 36. Insurance

C. If upon appointment of a conservator or at any time during

the pendency of such conservatorship it appears that the insurer can

best be protected by reinsuring the same, the conservator may, with

the approval of the Commissioner, after appraisal of all assets of

the insurer:

1. Reinsure all or part of such insurer's policies or

certificates of insurance with any solvent insurers authorized to

transact business in this state; and

2. To the extent that such insurer is possessed of reserves

attributable to such policies or certificates of insurance, transfer

to the reinsuring company such reserves or any portion thereof as

may be required to consummate the reinsurance of such policies,

which transfer of reserves shall not be deemed a preference of

creditors.

D. If the Commissioner is satisfied that the insurer is not in

condition to continue business in the interest of its policy or

certificate holders, under the conservator, the Commissioner shall

apply to the appropriate court for an order appointing him as

receiver for the insurer, under the provisions of Article 18 of this

title. It shall be in the discretion of the Commissioner to

determine whether or not he will operate the insurance company

through a conservator, as provided above, or apply for an order

appointing him receiver.

E. The cost incident to the supervisor's and conservator's

service shall be fixed by the Commissioner and paid from the assets

and funds of the insurer as the Commissioner may determine. The

cost of the supervisor's or conservator's service must be reasonable

under the circumstances and shall continue no longer than necessary

to preserve the assets of the insurer, certificate holders and the

policyholders. All legal work required under this act shall be

performed by the Commissioner, his employees or special attorneys

employed by the Commissioner. The cost of such attorneys' services

must be reasonable under the circumstances and shall be paid from

the assets and funds of the insurer to the Commissioner.

F. The supervision or conservation may continue until the

Commissioner (1) feels certain that the insurer has corrected any

deficiencies that caused the supervision or conservation, or (2) a

receivership has been granted by the Court.

Amended by Laws 1985, c. 328, § 13, emerg. eff. July 29, 1985.