Oklahoma § 36-2654 - Deposit for protection of members

§ 36-2654. Deposit for protection of members

A. Corporations governed by this article shall at all times

have on deposit with the Insurance Commissioner the sum of Five

Thousand Dollars ($5,000.00).

Every such corporation shall deposit with the Commissioner, not

later than each February 1, 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 Ten

Thousand Dollars ($10,000.00). 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

the 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.

Oklahoma Statutes - Title 36. Insurance

Added by Laws 1968, c. 150, § 4, emerg. eff. April 9, 1968.

by Laws 2014, c. 275, § 13, eff. Nov. 1, 2014.

Amended