Oklahoma § 36-640 - Denial, suspension or revocation of license - Corrective

§ 36-640. Denial, suspension or revocation of license - Corrective

action plans - Rescission or modification of suspension order.

A. The Insurance Commissioner shall deny, suspend or revoke a

MEWA's license if, after notice and opportunity for a hearing, the

Commissioner finds that the MEWA:

1. Is insolvent;

2. Is using such methods and practices in the conduct of its

business as to render its further transaction of business in this

state hazardous or injurious to its participating employees, covered

employees and dependents, or to the public;

3. Has failed to pay any final judgment rendered against it in

a court of competent jurisdiction within sixty (60) days after the

judgment became final;

4. Is or has been in violation of any material provisions of

this act;

5. Is no longer actuarially sound; or

6. Is charging rates that are excessive, inadequate or unfairly

discriminatory.

B. The Commissioner may deny, suspend or revoke the license of

any MEWA if, after notice and opportunity for a hearing, the

Commissioner determines that the MEWA:

1. Has violated any lawful order or rule of the Commissioner or

any applicable provisions of this act;

2. Has refused to produce its accounts, records or files for

examination under Sections 309.1 through 310A.3 of this title or

through any of its officers has refused to give information with

Oklahoma Statutes - Title 36. Insurance

respect to its affairs or to perform any other legal obligation as

to an examination;

3. Utilized persons to solicit enrollments through an

unlicensed agent; or

4. Has violated any provision of the Unfair Claims Settlement

Practices Act, Section 1250.1 et seq. of this title.

C. Whenever the financial condition of the MEWA is such that,

if not modified or corrected, its continued operation would result

in impairment or insolvency, in addition to any provisions in this

act, the Commissioner may order the MEWA to file with the

Commissioner and implement a corrective action plan designed to

correct such impairment or insolvency.

If the MEWA fails to submit a plan within the time specified by the

Commissioner or submits a plan that is insufficient, the

Commissioner may order the MEWA to implement corrective actions as

necessary to correct the MEWA's financial condition.

D. The Commissioner shall, in any order suspending the

authority of a MEWA to enroll new insureds, specify the period

during which the suspension is to be in effect and the conditions,

if any, that must be met prior to reinstatement of its authority to

enroll new insureds. The order of suspension is subject to

rescission or modification by further order of the Commissioner

before the expiration of the suspension period. Reinstatement shall

not be made unless requested in writing by the MEWA; however, the

Commissioner shall not grant reinstatement if it is found that the

circumstances for which suspension occurred still exist.

Added by Laws 1992, c. 374, § 8, eff. Jan. 1, 1993. Amended by Laws

2019, c. 425, § 5, eff. Nov. 1, 2019.