Oklahoma § 36-2604 - Deposit for protection of members

§ 36-2604. Deposit for protection of members

A. Corporations governed by this article shall at all times

have on deposit with the Insurance Commissioner sums as follows:

1. If newly formed under this article, the sum of Fifteen

Thousand Dollars ($15,000.00); or

2. If formed under prior law, such sum as was so required under

such prior law.

Every such corporation shall deposit with the Commissioner, not

later than the first day of each February, an amount equal to two

percent (2%) of the gross subscriptions collected during the

preceding calendar year, until the deposit of such corporation

reaches a total of Twenty-five Thousand Dollars ($25,000.00). All

such deposits shall be held by the Commissioner in trust for the

benefit and protection of the subscribers of the corporation making

the deposit.

B. The deposit prescribed by this section shall be subject to

withdrawal in whole or in part on the order of and as directed by

Oklahoma Statutes - Title 36. Insurance

the Insurance Commissioner, but may, with the approval of the

Commissioner, be invested in bonds of the United States or of the

State of Oklahoma, or any political subdivision thereof, or state

warrants, which shall be assigned to the Commissioner and held by

the Commissioner as provided for original deposits. The securities

may, with the approval of the Commissioner, be exchanged for similar

securities or cash of equal amount. Interest on securities so

deposited shall be payable to the corporation depositing the same.

C. An unsettled final judgment, arising upon a certificate of

participation against such a corporation, shall be a lien on the

deposit prescribed by this section, subject to execution after

thirty (30) days from the entry of final judgment. If the deposit

is reduced thereby, it shall be replenished within ninety (90) days.

D. Upon the liquidation or dissolution of such corporation and

the satisfaction of all its liabilities, any balance remaining in

the deposit in the hands of the Commissioner and any other assets of

the insurer shall be distributed to the holders of certificates of

participation in good standing at the time proceedings for the

liquidation or dissolution of the corporation were commenced,

prorated according to the gross amount of subscriptions which have

been paid on such certificates up to the time such proceedings were

commenced.

Added by Laws 1957, p. 328, § 2604, operative July 1, 1957. Amended

by Laws 2014, c. 275, § 12, eff. Nov. 1, 2014.