Oklahoma § 36-6414 - Market Assistance Association - Powers and duties - Plan

§ 36-6414. Market Assistance Association - Powers and duties - Plan

of operation - Insurer's financial liability - Termination of

membership.

A. The Association created pursuant to the Market Assistance

Association Act shall have the power on behalf of its members to:

1. Require members to issue policies of insurance to

applicants, subject to limitations specified in the plan of

operation required by the Market Assistance Association Act;

irregardless of the type of insurance coverage, the limits of

liability for homeowners' liability insurance, shall be governed by

the amounts specified in subsection A of Section 154 of Title 51 of

the Oklahoma Statutes; and

2. Call upon member insurers who have expertise or familiarity

with a particular line of homeowners' liability insurance to assist

in underwriting such insurance.

B. The Board after consultation with the Association, the

Insurance Commissioner and other affected entities, shall promulgate

a plan of operation consistent with the provisions of this section,

to become effective no later than ninety (90) days after the date of

the inception of the Association.

1. The plan of operation shall provide for economic, fair and

nondiscriminatory administration and for prompt and efficient

provision of insurance, and shall contain other provisions

including, but not limited to, the following:

a.

preliminary assessment of all members for initial

expenses necessary to commence operations of the

Association,

b.

establishment of necessary facilities,

c.

management of the Association,

d.

assessment of members, and assessment of policyholders

if a market assistance association for professionals

is declared, to defray losses and expenses,

e.

establishment of committees as may be necessary to

facilitate the administration of the Association,

f.

procedures providing that an insured shall have proof

that he or she has coverage that has been canceled or

nonrenewed by his or her current carrier and has

subsequently requested and been refused homeowners' or

homeowners' liability coverage from two insurers

licensed to do business in this state, or that his or

her premium has been increased by seventy-five percent

(75%) or more from the previous year, before

requesting insurance coverage from the Association,

Oklahoma Statutes - Title 36. Insurance

g.

appointment of members of the Association on a

rotating basis to provide homeowners' and homeowners'

liability insurance coverage based upon direct

premiums for homeowners' and homeowners' liability

insurance, written in the state in the preceding

calendar year,

h.

procedures for determining amounts of insurance to be

provided by members of the Association, and

i.

procedures for two or more member insurers to share an

insured risk if coverage for that risk is beyond the

ability for one insurer

2. The plan of operation shall provide that any balance

remaining in the funds of the Association at the close of its fiscal

year shall be added to the reserves of the Association and may be

used for expenses of the Association or any successor association.

3. Amendments to the plan of operation may be made by the

Board.

C. All insurers who are members of the Association shall

participate in the Association's writings, expenses, and losses in

the proportion that the net direct premiums of each such member

written during the preceding calendar year bears to the aggregate

net direct premiums written in this state by all members of the

Association. Each insurer's proportion of participation in the

Association shall be determined annually on the basis of such net

direct premiums written during the preceding calendar year, as

reported in the annual statements and other reports filed by the

insurer that may be required by the board of directors. No member

shall be obligated in any one (1) year to write liability insurance

business from the Association that would result in the member

insurer writing more than ten percent (10%) of its total annual

liability insurance, from all lines of liability insurance, from the

Association. Likewise, no member shall be obligated in any one (1)

year to write homeowners' insurance business from the Association

that would result in the member insurer writing more than ten

percent (10%) of its total annual homeowners' insurance, from the

Association.

D. An applicable insurer ceasing to be licensed or authorized

to transact insurance business pursuant to the Insurance Code shall

automatically cease to be a member of the Association effective at

12:01 a.m. on the day following the termination or expiration of its

certificate of authority and shall no longer be subject to the plan

of operation or requirements of the Association; provided, however,

such insurer shall remain liable for any annual assessments of the

Association based on expenses incurred by the Association while such

license or authority was in effect.

Added by Laws 1986, c. 251, § 47, emerg. eff. June 13, 1986.

Amended by Laws 2022, c. 358, § 2, eff. Nov. 1, 2022.

Oklahoma Statutes - Title 36. Insurance