Oklahoma § 36-1924.1 - Limitation on actions

§ 36-1924.1. Limitation on actions

A. If applicable statutory or common law, an order, or an

agreement fixes, defines, extends or tolls a period within which the

insurer may commence an action, and this period has not expired

before the date of the filing of the initial petition in a

delinquency proceeding as defined in Section 1901 of Title 36 of the

Oklahoma Statutes, the receiver shall not by reason thereof be

Oklahoma Statutes - Title 36. Insurance

barred from commencing such an action if the receiver does so on or

before the later of:

1. The end of the period, including any suspension of the

period occurring on or after the filing of the initial petition in a

delinquency proceeding; or

2. Four (4) years after the entry of the order commencing a

delinquency proceeding or entry of a subsequent order granting a

different form of relief in a delinquency proceeding.

B. Except as provided in subsection A of this section, if

applicable law, an order or an agreement fixes, defines, extends or

tolls a period within which the insurer may file any pleading,

demand, notice, or proof of claim or loss, or cure a default in a

case or proceeding, or perform any other similar act, and the period

has not expired before the date of the filing of the initial

petition in a delinquency proceeding, the receiver shall not by

reason thereof be barred from filing, curing or performing, as the

case may be, if the receiver does so on or before the later of:

1. The end of the period, including any suspension of the

period occurring on or after the filing of the initial petition in a

delinquency proceeding; or

2. One hundred eighty (180) days after the entry of the order

granting the initial petition in the delinquency proceeding, or

within such further extension thereof granted by the court which is

shown to the satisfaction of the court not to be unfairly

prejudicial to the other party.

C. If applicable law, an order or an agreement fixes, defines,

extends or tolls a period for commencing or continuing a civil

action in a court other than the receivership court on a claim

against the insurer, and the period has not expired before the date

of the filing of the initial petition in a delinquency proceeding,

then the period does not expire until the later of:

1. The end of the period, including any suspension of the

period occurring on or after the filing of the initial petition in a

delinquency proceeding; or

2. Thirty (30) days after termination or expiration of a court

ordered stay with respect to the claim.

D. An allegation by the receiver of improper or fraudulent

conduct against any person shall not be the basis of a defense to

the enforcement of a contractual obligation owed to the insurer by a

third party, but the third party is not barred by this section from

seeking to establish independently as a defense that the conduct was

materially and substantially related to the contractual obligation

for which enforcement is sought.

E. No prior wrongful or negligent actions of any present or

former officer, manager, director, trustee, owner, employee or agent

of the insurer may be asserted as a defense to a claim by the

receiver under a theory of estoppel, comparative fault, intervening

Oklahoma Statutes - Title 36. Insurance

cause, proximate cause, reliance, mitigation of damages or

otherwise; except that the affirmative defense of fraud in the

inducement may be asserted against the receiver in a claim based on

a contract and a principal under a surety bond or a surety

undertaking shall be entitled to credit against any reimbursement

obligation to the receiver for the value of any property pledged to

secure the reimbursement obligation to the extent that the receiver

has possession or control of the property or the insurer or its

agents misappropriated such property. Evidence of fraud in the

inducement will be admissible only if it is contained in the records

of the insurer.

F. No action or inaction by the insurance regulatory

authorities may be asserted as a defense to a claim by the receiver.

G. A judgment or order entered against an insured or the

insurer in contravention of any stay or injunction under the Uniform

Insurers Liquidation Act, or at any time by default or collusion,

shall not be considered as evidence of liability or of the quantum

of damages in adjudicating claims filed in the estate arising out of

the subject matter of the judgment or order.

H. The provisions of subsection G of this section do not apply

to guaranty associations’ claims for amounts paid on settlements and

judgments in pursuit of their statutory obligations.

Added by Laws 2008, c. 184, § 18, eff. July 1, 2008.