Oklahoma § 36-6124.1 - Transfer of prepaid funeral benefit permits Notification – Application

§ 36-6124.1. Transfer of prepaid funeral benefit permits Notification – Application

A. No prepaid funeral benefit permit shall be transferable from

one organization to another except as provided in this section. The

selling organization shall notify the Insurance Commissioner at

least forty-five (45) days prior to transfer of ownership.

Notification shall be electronic in the manner and form prescribed

by the Insurance Commissioner and shall contain at a minimum the

following information:

1. The name of the acquiring organization;

Oklahoma Statutes - Title 36. Insurance

2. The date the acquiring organization will take control of the

selling organization;

3. A listing of all unrealized prepaid funeral benefit

contracts funded by insurance assignments;

4. A listing of all unrealized prepaid funeral benefit

contracts funded by trusts;

5. A detailed description of existing trusts to include, but

not be limited to, the name of the contract holder and the trust

value per contract; and

6. Any other information the Insurance Commissioner may

request.

B. The Insurance Commissioner may waive or lessen the notice

requirement provided for in subsection A of this section upon good

cause shown.

C. The acquiring organization shall make application for a

permit at least thirty (30) days prior to the transfer of ownership.

Approval is contingent upon the acquiring organization receiving an

establishment license as provided for in Sections 395.1 through

396.33 of Title 59 of the Oklahoma Statutes. The permit application

shall include an assumption agreement executed by the acquiring

organization and the selling organization.

D. The acquiring organization shall be issued a prepaid funeral

benefit permit prior to the relinquishment of control of the trust

by the selling organization. The acquiring organization shall not

access funds held in the trust until authorization has been given by

the Insurance Commissioner.

E. Upon good cause shown, the Insurance Commissioner may deny

transfer of the trust from the selling organization to the acquiring

organization.

F. The Insurance Commissioner may take any actions pursuant to

Articles 18 and 19 of this title as a means of safeguarding the

rights and interests of the individual contract holders or

purchasers, their beneficiaries, successors, or personal

representatives, or whenever necessary to protect the public

welfare. The organization may make application to the Insurance

Commissioner to draw down funds upon fulfillment of the prepaid

funeral service contract.

G. Whenever an organization refuses to submit the books,

records, papers and instruments of the prepaid funeral benefit

contracts to the examination and inspection of the assistants or

examiners of the Insurance Commissioner, or refuses or neglects to

establish or maintain a prepaid funeral benefit permit in accordance

with the requirements of the Prepaid Funeral Benefits Act within

ninety (90) days after a written demand to establish or maintain a

prepaid funeral benefit permit is made by the Insurance

Commissioner, or in any manner obstructs or interferes with the

examination of its prepaid funeral benefit contracts or refuses to

Oklahoma Statutes - Title 36. Insurance

be examined on oath concerning any of the affairs of its prepaid

funeral benefit contracts, or for any other grounds listed in

Article 18 or 19 of this title, the Insurance Commissioner may make

application for receivership in the manner of a domestic insurer or

take any other action pursuant to Articles 18 and 19 of this title,

in addition to the penalties and other enforcement provisions of

this act.

H. The Insurance Commissioner may prescribe rules concerning

matters incidental to this section.

I. For the purposes of Sections 6121 through 6136.18 of this

title, "personal representative" means the person or persons

designated by the purchaser of the contract for prepaid funeral

benefits as having rights of ownership and control to the prepaid

funds upon death of the purchaser; the guardian, executor, or the

personal representative of the estate of the purchaser; or the

claiming successor or successors establishing lawful right to the

prepaid funds in accordance with Section 393 of Title 58 of the

Oklahoma Statutes.

Added by Laws 2009, c. 294, § 4, eff. Nov. 1, 2009. Amended by Laws

2016, c. 118, § 1, eff. Nov. 1, 2016; Laws 2024, c. 345, § 15, eff.

Nov. 1, 2024; Laws 2025, c. 55, § 5, eff. Nov. 1, 2025.