Okla. Stat. tit. 36, § 36-2004

As used in the Oklahoma Property and Casualty Insurance Guaranty

Association Act:

1. "Affiliate" means a person who directly or indirectly,

through one or more intermediaries, controls, is controlled by, or

Oklahoma Statutes - Title 36. Insurance Page 570

is under common control with another person on December 31 of the

year next preceding the date the insurer becomes an insolvent

insurer;

2. "Association" means the Oklahoma Property and Casualty

Insurance Guaranty Association as created in Section 2005 of this

title;

3. "Assumed claims transaction" means:

a. policy obligations that have been assumed by the

insolvent insurer, prior to the entry of a final order

of liquidation, pursuant to a plan, approved by a

domestic commissioner of the assuming insurer, which

transfers the direct policy obligations and future

policy renewals from one insurer to another insurer,

or

b. an assumption reinsurance transaction in which all of

the following have occurred:

(1) the insolvent insurer assumed, prior to the entry

of a final order of liquidation, the claim or

policy obligations of another insurer under the

claims or policies,

(2) the assumption of the claim or policy obligations

has been approved, if an approval is required, by

the appropriate regulatory authorities, and

(3) as a result of the assumption, the claim or

policy obligations became the direct obligations

of the insolvent insurer through novation of the

claims or policies;

4. "Claimant" means any person instituting a covered claim;

provided that no person who is an affiliate of the insolvent insurer

may be a claimant;

5. "Commissioner" means the Insurance Commissioner of Oklahoma;

6. "Control" means the possession, direct or indirect, of the

power to direct or cause the direction of the management and

policies of a person, whether through the ownership of voting

securities, by contract other than a commercial contract for goods

or nonmanagement services, or otherwise, unless the power is the

result of an official position with or corporate office held by the

person. Control shall be presumed to exist if a person, directly or

indirectly, owns, controls, holds with the power to vote, or holds

proxies representing ten percent (10%) or more of the voting

securities of any other person. This presumption may be rebutted by

a showing that control does not exist in fact;

7. "Covered claim" means:

a. an unpaid claim, including one of unearned premiums,

submitted by a claimant, which arises out of and is

within the coverage and is subject to the applicable

limits of an insurance policy to which this act

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applies, if the insurer becomes an insolvent insurer

after the effective date of this act and the policy

was issued by the insurer, and:

(1) the claimant or insured is a resident of this

state at the time of the insured event, provided

that for entities other than an individual, the

residence of a claimant or insured is the state

in which its principal place of business is

located at the time of the insured event, or

(2) the claim is a first-party claim for damage to

property with a permanent location in this state,

b. "Covered claim" includes claim obligations that arose

through the issuance of an insurance policy by a

member insurer, which are later allocated,

transferred, merged into, novated, assumed by, or

otherwise made the sole responsibility of a member or

nonmember insurer if:

(1) the original member insurer has no remaining

obligations on the policy after the transfer,

(2) a final order of liquidation with a finding of

insolvency has been entered against the insurer

that assumed the member's coverage obligations by

a court of competent jurisdiction in the

insurer's state of domicile,
r

otherwise made the sole responsibility of a member or

nonmember insurer if:

(1) the original member insurer has no remaining

obligations on the policy after the transfer,

(2) a final order of liquidation with a finding of

insolvency has been entered against the insurer

that assumed the member's coverage obligations by

a court of competent jurisdiction in the

insurer's state of domicile,

(3) the claim would have been a covered claim, as

defined in subparagraph a of paragraph 7 of this

section, if the claim had remained the

responsibility of the original member insurer and

the order of liquidation had been entered against

the original member insurer, with the same claim

submission date and liquidation date, and

(4) in cases where the member's coverage obligations

were assumed by a nonmember insurer, the

transaction received prior regulatory or judicial

approval,

c. "Covered claim" shall not include:

(1) any amount awarded as punitive or exemplary

damages,

(2) any amount sought as a return of premium under

any retrospective rating plan,

(3) any amount due any reinsurer, insurer, insurance

pool, or underwriting association, health

maintenance organization, hospital plan

corporation, professional health service

corporation or self-insurer as subrogation

recoveries, reinsurance recoveries, contribution,

indemnification or otherwise. No claim for any

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amount due any reinsurer, insurer, insurance

pool, or underwriting association, health

maintenance organization, hospital plan

corporation, professional health service

corporation or self-insurer may be asserted

against a person insured under a policy issued by

an insolvent insurer other than to the extent the

claim exceeds the association obligation

limitations set forth in Section 2007 of this

title,

(4) any claims excluded pursuant to Section 2020.2 of

this title due to the high net worth of an

insured,

(5) any first-party claims by an insured that is an

affiliate of the insolvent company,

(6) any fee or other amount relating to goods or

services sought by or on behalf of any attorney

or other provider of goods and services retained

by the insolvent insurer or an insured prior to

the date it was determined to be insolvent,

(7) any fee or other amount sought by or on behalf of

any attorney or other provider of goods and

services retained by any insured or claimant in

connection with the assertion or prosecution of

any claim, covered or otherwise, against the

Association,

(8) any claims for interest,

(9) any claim filed with the association or a

liquidator for protection afforded under the

policy of the insured for incurred-but-not-

reported losses, or

(10) notwithstanding any other provision of this act

or any other law to the contrary, a claim that is

filed with the Association on the earlier of:

(a) the final date set by the court for filing

of claims against the liquidator or receiver

of an insolvent insurer, or
ociation or a

liquidator for protection afforded under the

policy of the insured for incurred-but-not-

reported losses, or

(10) notwithstanding any other provision of this act

or any other law to the contrary, a claim that is

filed with the Association on the earlier of:

(a) the final date set by the court for filing

of claims against the liquidator or receiver

of an insolvent insurer, or

(b) a date that is later than eighteen (18)

months after the date of the order of

liquidation or that is unknown and

unreported as of said date; provided,

however, that this shall not include any

claim for workers' compensation benefits

pursuant to Title 85A of the Oklahoma

Statutes and the applicable rules of OAC

Title 810;

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8. "Cybersecurity insurance", for purposes of this act,

includes first-party and third-party coverage, in a policy or

endorsement, written on a direct, admitted basis for losses and loss

mitigation arising out of or relating to data privacy breaches,

unauthorized information network, security intrusions, computer

viruses, ransomware, cyber extortion, identity theft, and similar

exposures;

9. "Insolvent insurer" means an insurer that is licensed to

transact insurance in this state either at the time the policy was

issued, when the obligation with respect to the covered claim was

assumed under an assumed claims transaction, or when the insured

event occurred and against whom a final order of liquidation has

been entered after the effective date of this act with a finding of

insolvency by a court of competent jurisdiction in the state of

domicile of the insurer;

10. "Insured" means any named insured, any additional insured,

any vendor, lessor or any other party identified as an insured under

the policy;

11. a. "Member insurer" means any person who:

(1) writes any kind of direct insurance to which the

Oklahoma Property and Casualty Insurance Guaranty

Association Act applies pursuant to Section 2003

of this title, including the exchange of

reciprocal or inter-insurance contracts, and

(2) is licensed to transact insurance in this state,

except those insurers enumerated in Section 110

of this title or those insurers that are

otherwise exempted by law or order of the

Commissioner;

b. An insurer shall cease to be a member insurer

effective on the day following the termination or

expiration of its license to transact the kinds of

insurance to which the Oklahoma Property and Casualty

Insurance Guaranty Association Act applies; however,

the insurer shall be liable as a member insurer for

any and all obligations, including but not limited to

obligations for assessments levied after the

termination or expiration, which relate to any insurer

that becomes an insolvent insurer prior to the

termination or expiration of the license of the

insurer; and

c. "Member insurer" does not mean:

(1) a "surplus lines insurer" or a person writing

surplus lines insurance as defined in Section

1101.1 of this title, or

(2) a "risk retention group" as defined in Section

6453 of this title, or

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rer

that becomes an insolvent insurer prior to the

termination or expiration of the license of the

insurer; and

c. "Member insurer" does not mean:

(1) a "surplus lines insurer" or a person writing

surplus lines insurance as defined in Section

1101.1 of this title, or

(2) a "risk retention group" as defined in Section

6453 of this title, or

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(3) a "captive insurance company" as defined in

Section 6470.2 of this title;

12. "Net direct written premiums" means direct gross premiums

written in this state on insurance policies to which this act

applies, including but not limited to policy and membership fees,

less the following amounts:

a. return premiums,

b. premiums on policies not taken, and

c. dividends paid or credited to policyholders on direct

business. "Net direct written premiums" does not

include premiums on contracts between insurers or

reinsurers;

13. "Novation" means that the assumed claim or policy

obligations became the direct obligations of the insolvent insurer

through consent of the policyholder and that thereafter the ceding

insurer or entity initially obligated under the claims or policies

is released by the policyholder from performing its claim or policy

obligations. Consent shall be express and an implied novation shall

not be allowed for the purposes, implementation and application of

the Oklahoma Property and Casualty Insurance Guaranty Association

Act;

14. "Person" means the individual or other entities as defined

in Section 104 of this title;

15. "Receiver" means liquidator, rehabilitator, conservator or

ancillary receiver, as the context requires; and

16. "Self-insurer" means a person who covers its liability

through a qualified individual or group self-insurance program or

any other formal program created for the specific purpose of

covering liabilities typically covered by insurance.