Okla. Stat. tit. 36, § 36-1937

A. For the purposes of this section the persons entitled to

protection under this section are:

1. The receiver, assistant receiver, and retained counsel

responsible for the conduct of a delinquency proceeding under

Article 19 of the Insurance Code, including present and former

receivers; and

2. Their employees meaning all present and former assistant

receivers and attorneys for the receiver appointed by the Insurance

Commissioner and all persons whom the Commissioner, assistant

receiver or retained counsel have employed to assist in a

delinquency proceeding under Article 19 of the Insurance Code.

Attorneys, accountants, auditors and other professional persons or

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firms, who are retained by the receiver as independent contractors

and their employees shall not be considered employees of the

receiver for purposes of this section.

B. If any legal action is commenced against the receiver or any

employee, whether against him personally or in his official

capacity, alleging property damage, property loss, personal injury

or other civil liability caused by or resulting from any alleged

act, error or omission of the receiver or any employee arising out

of or by reason of their duties or employment, the receiver and any

employee shall be indemnified from the assets of the insurer for all

expenses, attorneys' fees, judgments, settlements, decrees or

amounts due and owing or paid in satisfaction of or incurred in the

defense of such legal action unless it is determined upon a final

adjudication on the merits that the alleged act, error or omission

of the receiver or employee giving rise to the claim did not arise

out of or by reason of his duties or employment, or was caused by

intentional or willful and wanton misconduct.

1. Attorneys' fees and any and all related expenses incurred in

defending a legal action for which immunity or indemnity is

available under this section shall be paid from the assets of the

insurer, as they are incurred, in advance of the final disposition

of such action upon receipt of an undertaking by or on behalf of the

receiver or employee to repay the attorneys' fees and expenses if it

shall ultimately be determined upon a final adjudication on the

merits that the receiver or employee is not entitled to immunity or

indemnity under this section.

2. Any indemnification for expense payments, judgments,

settlements, decrees, attorneys' fees, surety bond premiums or other

amounts paid or to be paid from the insurer's assets pursuant to

this section shall be an administrative expense of the insurer.

3. In the event of any actual or threatened litigation against

a receiver or any employee for which immunity or indemnity may be

available under this section, a reasonable amount of funds which in

the judgment of the Insurance Commissioner may be needed to provide

immunity or indemnity shall be segregated and reserved from the

assets of the insurer as security for the payment of indemnity until

such time as all applicable statutes of limitation shall have run

and all actual or threatened actions against the receiver or any

employee have been completely and finally resolved, and all

obligations of the insurer and the Commissioner under this section

shall have been satisfied.

4. In lieu of segregation and reserving of funds, the Insurance

Commissioner shall have the discretion to obtain a surety bond or

make other arrangements which shall enable the Commissioner to fully

secure the payment of all obligations under this section.

C. If any legal action against an employee for which indemnity

may be available under this section is settled prior to final

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adjudication on the merits, the insurer must pay the settlement

amount on behalf of the employee, or indemnify the employee for the

settlement amount, unless the Insurance Commissioner determines:
ons under this section.

C. If any legal action against an employee for which indemnity

may be available under this section is settled prior to final

Oklahoma Statutes - Title 36. Insurance Page 566

adjudication on the merits, the insurer must pay the settlement

amount on behalf of the employee, or indemnify the employee for the

settlement amount, unless the Insurance Commissioner determines:

1. That the claim did not arise out of or by reason of the

employee's duties or employment; or

2. That the claim was caused by the intentional or willful and

wanton misconduct of the employee.

D. In any legal action in which the receiver is a defendant,

that portion of any settlement relating to the alleged act, error or

omission of the receiver shall be subject to the approval of the

court before which the delinquency proceeding is pending. The court

shall not approve that portion of the settlement if it determines:

1. That the claim did not arise out of or by reason of the

receiver's duties or employment; or

2. That the claim was caused by the intentional or willful and

wanton misconduct of the receiver.

E. Nothing contained or implied in this section shall operate,

or be construed or applied to deprive the receiver or any employee

of any immunity, indemnity, benefits of law, rights or any defense

otherwise available.

F. 1. No legal action shall lie against the receiver or any

employee based in whole or in part on any alleged act, error or

omission which took place prior to September 1, 1992, unless suit is

filed and valid service of process is obtained prior to September 1,

1993.

2. Subsections B, C, and D of this section shall apply to any

suit which is pending on or filed after September 1, 1992, without

regard to when the alleged act, error or omission took place.