Oklahoma § 36-1929 - Allowance of certain claims

§ 36-1929. Allowance of certain claims

A. No contingent claim shall share in a distribution of the

assets of an insurer which has been adjudicated to be insolvent by

an order made pursuant to this article, except that such claim shall

be considered, if properly presented, and may be allowed to share

where:

1. Such claim becomes absolute against the insurer on or before

the last day for filing proof of claims against the assets of such

insurer, or

2. There is a surplus and the liquidation is thereafter

conducted upon the basis that such insurer is solvent.

B. Where an insurer has been so adjudicated to be insolvent any

person who has a cause of action against an insured of such insurer

under a liability insurance policy issued by such insurer shall have

the right to file a claim in the liquidation proceeding, regardless

Oklahoma Statutes - Title 36. Insurance

of the fact that such claim may be contingent, and such claim may be

allowed:

1. If it may be reasonably inferred from the proof presented

upon such claim that such person would be able to obtain a judgment

upon such cause of action against such insured, and

2. If such person shall furnish suitable proof, unless the

court for good cause shown shall otherwise direct, that no further

valid claim against such insurer arising out of his cause of action

other than those already presented can be made, and

3. If the total liability of such insurer to all claimants

arising out of the same act of its insured shall be no greater than

his maximum liability would be were it not in liquidation.

C. No judgment against such an insured taken after the date of

entry of the liquidation order shall be considered in the

liquidation proceedings as evidence of liability, or of the amount

of damages, and no judgment against an insured taken by default or

by collusion prior to the entry of the liquidation order shall be

considered as conclusive evidence in the liquidation proceedings,

either of the liability of such insured to such person upon such

cause of action or of the amount of damages to which such person is

therein entitled.

D. No claim of any secured claimant shall be allowed at a sum

greater than the difference between the value of the claim without

security and value of the security itself as of the date of the

entry of the order of liquidation or such other date set by the

court for determining rights and liabilities as provided in section

1825 of this article unless the claimant shall surrender his

security to the Insurance Commissioner, in which event the claim

shall be allowed in the full amount for which it is valued.

Laws 1957, p. 301, § 1829; Laws 1975, c. 316, § 12, emerg. eff. June

12, 1975.