Oklahoma § 36-1914 - Conduct of delinquency proceedings against domestic and

§ 36-1914. Conduct of delinquency proceedings against domestic and

alien insurers - Limitations on power of Commissioner - Conflict of

interest.

A. Whenever under this article of this title a receiver is to

be appointed in delinquency proceedings for a domestic or alien

insurer, the court shall appoint the Insurance Commissioner as the

receiver. The court shall order the Insurance Commissioner

forthwith to take possession of the assets of the insurer and to

administer the same under the orders of the court.

B. As domiciliary receiver, the Insurance Commissioner shall be

vested by operation of law with the title to all of the property,

contracts, and rights of action and all of the books and records of

the insurer, wherever located, as of the date of entry of the order

directing the Commissioner to rehabilitate or liquidate a domestic

insurer or to liquidate the United States branch of an alien insurer

domiciled in this state, and the Commissioner shall have the right

to recover the same and reduce the same to possession; except that

ancillary receivers in reciprocal states shall have, as to assets

located in their respective states, the rights and powers which are

herein prescribed for ancillary receivers appointed in this state as

to assets located in this state.

C. The recording of a certified copy of the order directing

possession to be taken in the office of the county clerk of the

county where the proceedings are pending shall impart the same

Oklahoma Statutes - Title 36. Insurance

notice as would be imparted by a deed, bill of sale, or other

evidence of title duly recorded or filed.

D. The Insurance Commissioner as domiciliary receiver shall be

responsible for the proper administration of all assets coming into

the Commissioner’s possession or control. The court may at any time

require a bond from the Commissioner or any assistants or deputies

if deemed desirable for the protection of the assets.

E. Upon taking possession of the assets of an insurer, the

domiciliary receiver shall, subject to the direction of the court,

immediately proceed to conduct the business of the insurer or to

take such steps as are authorized by this article for the purpose of

rehabilitating, liquidating, or conserving the affairs or assets of

the insurer.

F. 1. In connection with delinquency proceedings, the

Insurance Commissioner may appoint one or more assistant

commissioners to act for the Commissioner and may employ such

counsel, clerks, and assistants as are deemed necessary. The

compensation of the assistant commissioners, counsel, clerks, or

deputies and all expenses of taking possession of the insurer and of

conducting the proceedings shall be fixed by the receiver, subject

to the approval of the court, and shall be paid out of the funds or

assets of the insurer. Within the limits of duties imposed upon

them, assistant commissioners shall possess all the powers given to

the receiver and, in the exercise of those powers, shall be subject

to all of the duties, powers, and limitations imposed upon the

receiver with respect to such proceedings.

2. The Commissioner, as receiver, is prohibited from appointing

any person who is related to the Commissioner within the third

degree of consanguinity or affinity. Any appointment in violation

of this paragraph is void.

3. The Commissioner, as receiver, is prohibited from entering

into any contract with any person who is related to the Commissioner

within the third degree of consanguinity or affinity. Any contract

in violation of this paragraph is void.

Added by Laws 1957, p. 296, § 1814. Renumbered from § 1814 of this

title by Laws 1975, c. 316, § 12, emerg. eff. June 12, 1975.

Amended by Laws 2000, c. 197, § 2, eff. Nov. 1, 2000.