Okla. Stat. tit. 36, § 36-1922

A. The receiver shall have the power:

1. To hold hearings, to subpoena witnesses for the purpose of

compelling their attendance, to administer oaths, to examine any

Oklahoma Statutes - Title 36. Insurance Page 543

person under oath, and to compel any persons to subscribe to their

testimony after it has been correctly reduced to writing; and in

connection therewith to require the production of any books, papers,

records, data or other documents, electronic or paper, that the

receiver deems relevant to the inquiry;

2. To audit the books and records of all agents of the insurer,

including, but not limited to, third-party administrators, and

affiliated and nonaffiliated management companies insofar as those

records relate to the business activities of the insurer;

3. To conduct litigation, including:

a. to continue to prosecute or defend, and to institute

in the name of the insurer or in the receiver's own

name, suits or other legal proceedings, in this state

or elsewhere,

b. to abandon the prosecution of claims the receiver

deems unprofitable to pursue further,

c. to collect all debts and monies due and claims

belonging to the insurer, wherever located, and in

furtherance of this purpose to institute action in

this or other jurisdictions in order to forestall

garnishment and attachment proceedings against those

debts, including the power to sell, compound,

compromise or assign debts for purposes of collection

upon such terms and conditions as the receiver deems

consistent with the purpose of the Uniform Insurers

Liquidation Act, and pursue any creditor's remedies

available to enforce the insurer's claims,

d. to assert all defenses available to the insurer as

against third persons, including statutes of

limitation, statutes of frauds and the defense of

usury. A waiver of any defense by the insurer after a

petition for supervision, conservation, receivership,

rehabilitation or liquidation has been filed shall not

bind the receiver. Whenever a guaranty association

has an obligation to defend any suit, the receiver

shall defer to that obligation and may defend only in

cooperation with the guaranty association or in the

absence of the guaranty association's defense,

e. to exercise and enforce all the rights, remedies and

powers of any creditor, shareholder, policyholder or

member, including any power to avoid any transfer,

transaction or lien that may be avoidable under the

Uniform Insurers Liquidation Act or otherwise, and

f. to intervene in any proceeding wherever instituted

that might lead to the appointment of a receiver or

trustee for the insurer or any of its property, and to

Oklahoma Statutes - Title 36. Insurance Page 544

act as the receiver or trustee whenever the

appointment is offered.

The receiver shall have exclusive standing in any action that

may exist to assert claims or defenses on behalf of the creditors,

members, policyholders or shareholders of the insurer or the public

against any person, except to the extent that a claim is personal to

a specific creditor, member, policyholder or shareholder and

recovery on the claim would not inure to the benefit of the estate.

If the receiver sells or dissolves the corporate entity or charter

of the insurer, the receiver shall have the power to apply to any

court in this state or elsewhere for leave to substitute the

receiver for the insurer as a party. This paragraph does not

infringe or impair any of the rights provided to a guaranty

association pursuant to its enabling statute or otherwise;

4. a. To conduct public or private sales of the insurer's

property, and thereby to acquire, hypothecate,

encumber, lease, sell, improve, transfer, abandon or

otherwise dispose of or deal with any property of the

insurer at its market value or upon such terms and

conditions as are fair and reasonable, and to settle

or resolve any claim or lawsuit brought by the

receiver on behalf of the insurer or pending when a
ic or private sales of the insurer's

property, and thereby to acquire, hypothecate,

encumber, lease, sell, improve, transfer, abandon or

otherwise dispose of or deal with any property of the

insurer at its market value or upon such terms and

conditions as are fair and reasonable, and to settle

or resolve any claim or lawsuit brought by the

receiver on behalf of the insurer or pending when a

petition for supervision, conservation, receivership,

rehabilitation or liquidation is filed, or commute or

settle any claim of reinsurance under any contract of

reinsurance,

b. to transfer either proceeds of or rights to payment

under ceding reinsurance agreements covering policies

to a third-party transferee. A transfer of rights to

payment shall only be made with the consent of the

reinsurer and in conjunction with the transfer to such

person of all rights and obligations relating to the

transferred ceding reinsurance agreement and of all

property, including any guarantees or other credit

enhancement, securing any claims of each party under

each reinsurance agreement. The consent of a

reinsurer under this subparagraph shall not be

unreasonably withheld. If the receiver believes that

the consent of a reinsurer was unreasonably withheld,

the receiver may petition the receivership court to

order binding arbitration. The arbitration shall be

conducted in accordance with the arbitration

procedures in the reinsurance contract, or if no such

provisions exist, in accordance with the procedures of

the American Arbitration Association. A transferee

under this subparagraph shall have the rights to

collect and enforce collection of the reinsurance for

Oklahoma Statutes - Title 36. Insurance Page 545

the amount payable to the ceding insurer or to its

receiver, without diminution because of the insolvency

or because the receiver has failed to pay all or a

portion of the claim. The transfer of these rights

shall not give rise to any defense regarding the

reinsurer's obligations under the reinsurance

agreement regardless of whether the agreement or other

applicable law prohibits the transfer of rights under

the reinsurance agreement. Except as provided in this

subparagraph, any transfer of rights pursuant to this

provision shall not impair any rights or defenses of

the reinsurer that existed prior to the transfer or

would have existed in the absence of the transfer.

Except as otherwise provided in this subparagraph, any

transfer of rights pursuant to this provision shall

not relieve the transferee or the receiver from

obligations owed to the reinsurer pursuant to the

reinsurance or other agreement, and

c. to execute, acknowledge and deliver any deeds,

assignments, releases and other instruments necessary

or proper to effectuate any sale of property or other

transaction in connection with the liquidation or

rehabilitation and to file any necessary documents for

record in the office of any recorder of deeds or

record office in this state or elsewhere where

property of the insurer is located;

5. a. To use property of the estate to transfer policy

obligations to a solvent assuming insurer, if the

transfer can be arranged without prejudice to

applicable priorities under Section 1927.1 of this

title,

b. to use property of the estate to transfer the

insurer's obligations under surety bonds and surety

undertakings, and collateral held by the insurer with

respect to the reimbursement obligations of the

principals under those surety bonds and surety

undertakings, to a solvent assuming insurer, if the

transfer can be arranged without prejudice to

applicable priorities under Section 1927.1 of this

title; and if the receivership court so orders, the

estate shall have no further liability under the

transferred policies, surety bonds, or surety

undertakings after the transfer is made, and

c. upon the issuance of an order of liquidation and a

finding of insolvency, policies or portions of
he

transfer can be arranged without prejudice to

applicable priorities under Section 1927.1 of this

title; and if the receivership court so orders, the

estate shall have no further liability under the

transferred policies, surety bonds, or surety

undertakings after the transfer is made, and

c. upon the issuance of an order of liquidation and a

finding of insolvency, policies or portions of

policies of life, disability income, long-term care or

health insurance or annuities covered by one or more

Oklahoma Statutes - Title 36. Insurance Page 546

guaranty associations, under applicable law, shall

continue in force, subject to the terms of the policy,

including any terms restructured pursuant to a court-

approved rehabilitation plan, to the extent necessary

to permit the guaranty associations to discharge their

statutory obligations. Policies or portions of

policies of life, disability income, long-term care or

health insurance or annuities, not covered by one or

more guaranty associations, and other types of

policies, shall terminate by operation of law, except

to the extent the receiver proposes and the

receivership court approves the use of property of the

estate, consistent with subparagraphs a and b of this

paragraph, for the purpose of continuing the contracts

or coverage by transferring them to an assuming

reinsurer;

6. To borrow money on the security of the property of the

estate or without security and to execute and deliver all documents

necessary to that transaction for the purpose of facilitating the

liquidation or rehabilitation. Any such funds borrowed may be

repaid as an administrative expense and have priority over any other

claims in Class 1 under the priority of distribution in Section

1927.1 of this title;

7. To enter into contracts, and to assume or reject any

executory contract or unexpired lease to which the insurer is a

party; provided, however, if the receiver is bound by any provision

of any contract of or by the insurer which requires arbitration,

such arbitration shall be conducted in the State of Oklahoma;

notwithstanding the foregoing, or any other provision of this

chapter, no receiver shall have the power to reject, disavow or

repudiate any Federal Home Loan Bank security agreement, or any

pledge, security, collateral or guarantee agreement or any other

similar arrangement or credit enhancement relating to such Federal

Home Loan Bank security agreement;

8. To take possession of the records and property of the

insurer. Guaranty associations shall have reasonable access to the

records of the insurer necessary for them to carry out their

statutory obligations;

9. To deposit in one or more banks in this state sums required

for meeting current administration expenses and dividend

distributions;

10. To invest the assets of the estate;

11. To enter into agreements with any receivers or

commissioners of any other states; and

12. To exercise all powers now held or hereafter conferred upon

receivers by the applicable statutory and common law of this state

Oklahoma Statutes - Title 36. Insurance Page 547

not inconsistent with the provisions of the Uniform Insurers

Liquidation Act.

B. The receiver is vested with all the rights of the entity or

entities in receivership.

C. The enumeration, in this section, of the powers and

authority of the receiver shall not be construed as a limitation

upon the receiver, nor shall it exclude in any manner the right to

do other acts not specifically enumerated or otherwise provided for,

to the extent necessary or appropriate for the accomplishment of or

in aid of the purpose of liquidation or rehabilitation.

D. The receiver shall not be obligated to defend any action

against the insurer or insured. An insured not defended by a

guaranty association may provide his or her own defense, and include

the cost of the defense as part of any claim of the insured against
rovided for,

to the extent necessary or appropriate for the accomplishment of or

in aid of the purpose of liquidation or rehabilitation.

D. The receiver shall not be obligated to defend any action

against the insurer or insured. An insured not defended by a

guaranty association may provide his or her own defense, and include

the cost of the defense as part of any claim of the insured against

the estate, if the defense was an obligation of the insurer. The

right of the receiver to contest coverage on a particular claim

shall be deemed preserved without the necessity of an express

reservation of rights.