Okla. Stat. tit. 36, § 36-1801

A. The Legislature finds that:

1. Existing provisions of law and present procedures are

sometimes not adequate nor appropriate under all circumstances

inorder to remedy the financial condition and the management of

certain insurers;

2. Present laws are not adequate for the rehabilitation of

insurers who voluntarily requestrehabilitation;

3. A void exists in the laws with respect to those insurers

most susceptible to rehabilitation or the regaining of solvency;

Oklahoma Statutes - Title 36. Insurance Page 523

4. The placing of an insurer in receivership often destroys or

diminishes, or is likely to destroy ordiminish, one or more of the

following values or assets:

a. the value of the insurance account or in-force

business of the insurer,

b. the value of the insurer as a going concern,

c. the value of its agency force, and

d. the value of other of its assets;

5. Such values and assets should be preserved if the

circumstances of the insurer's financial condition warrant an

attempt to conserve or rehabilitate such insurer and such

rehabilitation or conservation is otherwise feasible;

6. In the event receivership ultimately becomes necessary,

preliminary supervision and conservatorship is preventive of a

dissipation of assets and will thus benefit policyholders, creditors

and owners;

7. Insurer delinquency, or the state's inability to properly

proceed in a threatened delinquency, directly or indirectly affects

other insurers by creating a lack of public confidence in insurance

and in insurance companies and are destructive of public confidence

in the capacity of the state to regulate insurers, and these and

other harmful results of insurer delinquency are properly minimized

by a further enactment designed to protect and in aid of insureds,

creditors and owners; and

8. It is a proper concern of this state to attempt to correct

or remedy insurer misconduct, ineptness or misfortune.

B. It is the purpose of this act to:

1. Provide for rehabilitation and conservation of insurers by

authorizing and requiring the additional facility of supervision and

conservatorship by the Insurance Commissioner, authorize action to

resolve whether an attempt be made to rehabilitate and conserve an

insurer, and avoid, if possible and feasible, the necessity of

temporary or permanent receivership;

2. Provide for protection of the assets of an insurer pending

determination of whether or not an insurer can be successfully

rehabilitated; and

3. Provide a facility and direction for attempting the

rehabilitation without immediate resort to the harsher remedy of

receivership.

C. The substance and procedure of this act is, therefore,

declared to be the public policy of this state and necessary to the

public welfare. Such policy and welfare require the availability of

the remedies provided by this law whenever circumstances warrant,

and it is a condition of doing an insurance business in this state.