Oklahoma § 36-2038 - Recovery of distribution of insurer - Limitations
Full text of Oklahoma Oklahoma Statutes § 36-2038 — Recovery of distribution of insurer - Limitations, with citation guidance and answers to common questions.
§ 36-2038. Recovery of distribution of insurer - Limitations
A. If an order for liquidation or rehabilitation of a member
insurer domiciled in this state has been entered, the receiver
appointed under such order shall have a right to recover on behalf
of the member insurer, from any affiliate that controlled it, the
amount of distributions, other than stock dividends paid by the
member insurer on its capital stock, made at any time during the
five (5) years preceding the petition for liquidation or
rehabilitation subject to the limitations of subsections B through D
of this section.
B. No such dividend shall be recoverable if the member insurer
shows that when paid the distribution was lawful and reasonable, and
that the member insurer did not know and could not reasonably have
known that the distribution might adversely affect the ability of
the member insurer to fulfill its contractual obligations.
C. Any person who was an affiliate that controlled the member
insurer at the time the distributions were paid shall be liable up
to the amount of distributions he received. Any person who was an
affiliate that controlled the member insurer at the time the
distributions were declared shall be liable up to the amount of
distributions he would have received if they have been paid
immediately. If two persons are liable with respect to the same
distributions, they shall be jointly and severally liable.
D. The maximum amount recoverable under this subsection shall
be the amount needed in excess of all other available assets of the
insolvent insurer to pay the contractual obligations of the
insolvent insurer.
E. If any person liable under subsection C of this section is
insolvent, all its affiliates that controlled it at the time the
dividend was paid shall be jointly and severally liable for any
resulting deficiency in the amount recovered from the insolvent
affiliate.
Added by Laws 1981, c. 133, § 18. Amended by Laws 2019, c. 384, §
11, eff. Nov. 1, 2019.
Source: official Oklahoma text · Last verified 2026-08-27
Frequently Asked Questions About Oklahoma § 36-2038
What does Oklahoma Statutes § 36-2038 cover?
Section 36-2038 ("Recovery of distribution of insurer - Limitations") is part of the Oklahoma Statutes, the codified statutory law of Oklahoma. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Oklahoma § 36-2038?
A common citation format is "Oklahoma Statutes § 36-2038" (Oklahoma). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Oklahoma law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Oklahoma official source linked on this page or consult a licensed Oklahoma attorney.
How does Oklahoma § 36-2038 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Oklahoma can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Oklahoma.