Okla. Stat. tit. 36, § 36-1435.13a

duties - Violation - Punishment.

A. The provisions of this section shall apply only to property

and casualty insurance producers. All premiums belonging to

insurers and all unearned premiums belonging to insureds received by

an insurance producer licensee under this article shall be treated

by the insurance producer licensee in a fiduciary capacity.

1. All premiums received less commissions, if authorized, shall

be remitted by the insurance producer licensee to the insurer or its

agent entitled thereto on or before the contractual due date or, if

there is no contractual due date, within forty-five (45) days after

receipt.

2. All returned premiums received from insurers or credited by

insurers to the account of the insurance producer licensee shall be

remitted to or credited to the account of the licensee entitled

thereto within thirty (30) days after receipt or credit.

3. An insurer or its agent shall promptly report to the

Commissioner in writing the failure of any insurance producer to

account for any collected premium to the insurer entitled to the

accounting or to the insurer’s agent entitled thereto for more than

forty-five (45) days after the contractual due date or, if there is

no contractual due date, more than ninety (90) days after receipt.

B. Every insurer shall remit unearned premiums to the insured

or the proper agent or shall otherwise credit the account of the

proper insurance producer licensee as soon as is practicable after

entitlement thereto has been established but in no event more than

forty-five (45) days after the effective date of any cancellation or

termination effected by the insurer or after the date of entitlement

Oklahoma Statutes - Title 36. Insurance Page 347

thereto as established by notification of cancellation or of

termination or as otherwise established. Any insurance producer

licensee having knowledge of a failure on the part of any insurer to

comply with this subsection shall promptly report such failure to

the Commissioner in writing.

C. No insurance producer licensee under this article shall

commingle premiums belonging to insurers and returned premiums

belonging to insureds with the personal funds of the insurance

producer licensee or with any other funds except those directly

connected with the producer licensee’s insurance business.

D. Any insurer that delivers in this state a policy of

insurance to an insurance producer licensee representing the

interest of an insured upon the application or request of the

insurance producer licensee shall be deemed to have authorized the

producer to receive any premium due upon issuance or delivery of the

policy on behalf of the insurer.

E. 1. An insurance producer licensee or surplus line producer

convicted of knowingly misappropriating or knowingly converting to

his or her own use or wrongfully withholding fiduciary moneys in the

amount of One Hundred Fifty Dollars ($150.00) or less is guilty of a

misdemeanor punishable by a fine not to exceed One Thousand Dollars

($1,000.00) or by imprisonment in the county jail for a term not to

exceed one year or by both such fine and imprisonment.

2. An insurance producer licensee or surplus line producer with

a second or subsequent conviction for knowingly misappropriating or

knowingly converting to his or her own use or wrongfully withholding

fiduciary moneys in the amount of One Hundred Fifty Dollars

($150.00) or less or who is convicted of knowingly misappropriating

or knowingly converting to his or her own use or wrongfully

withholding premiums in an amount in excess of One Hundred Fifty

Dollars ($150.00) is guilty of a felony punishable by a fine not to

exceed Five Thousand Dollars ($5,000.00) or by imprisonment in the

custody of the Department of Corrections for a term not to exceed

five (5) years or by both such fine and imprisonment.

F. The Commissioner may promulgate rules for the implementation

of this section.