Oklahoma § 36-2020.2 - High net worth insured claims - Obligation to pay Procedures

§ 36-2020.2. High net worth insured claims - Obligation to pay Procedures

A. For purposes of this section, "high net worth insured" means

any insured whose net worth exceeds Fifty Million Dollars

($50,000,000.00) on December 31 of the year prior to the year in

which the insurer becomes an insolvent insurer; provided that the

net worth of an insured on that date shall be deemed to include the

aggregate net worth of the insured and all of its subsidiaries and

affiliates as calculated on a consolidated basis.

B. 1. The Oklahoma Property and Casualty Insurance Guaranty

Association shall not be obligated to pay any first-party claims by

a high net worth insured;

2. The Association shall have the right to recover from a high

net worth insured all amounts paid by the Association to or on

behalf of the insured, whether for indemnity, defense or otherwise;

and

3. The Association may also, at its sole discretion and without

assumption of any ongoing duty to do so, pay any cybersecurity

insurance obligations covered by a policy or endorsement of an

insolvent company on behalf of a high net worth insured as defined

in this section. In that case, the Association shall recover from

the high net worth insured under this section all amounts paid on

its behalf, all allocated claim adjusted expenses related to such

claims, the Association's attorney fees, and all court costs in any

action necessary to collect the full amount to the Association's

reimbursement under this section.

C. The Association shall not be obligated to pay any claim that

would otherwise be a covered claim that is an obligation to or on

behalf of a person who has a net worth greater than that allowed by

the insurance guaranty association law of the state of residence of

the claimant at the time specified by the applicable law of that

state, and which association has denied coverage to that claimant on

that basis.

D. The Association shall establish reasonable procedures for

requesting financial information from insureds on a confidential

basis for purposes of applying this section, provided that the

Oklahoma Statutes - Title 36. Insurance

financial information may be shared with any other association

similar to the association and the liquidator for the insolvent

insurer on the same confidential basis. Any request to an insured

seeking financial information shall advise the insured of the

consequences of failing to provide the financial information. If an

insured refuses to provide the requested financial information where

it is requested and available, the Association may, until the time

as the information is provided, provisionally deem the insured to be

a high net worth insured for the purpose of denying a claim under

subsection B of this section.

E. In any lawsuit contesting the applicability of this section

where the insured has refused to provide financial information under

the procedure established pursuant to subsection D of this section,

the insured shall bear the burden of proof concerning its net worth

at the relevant time. If the insured fails to prove that its net

worth at the relevant time was less than the applicable amount, the

court shall award the association its full costs, expenses and

reasonable attorney fees in contesting the claim.

Added by Laws 2010, c. 159, § 15, eff. Nov. 1, 2010. Amended by

Laws 2025, c. 366, § 7, eff. Nov. 1, 2025.