Okla. Stat. tit. 36, § 36-2030

A. For the purpose of providing the funds necessary to carry

out the powers and duties of the Oklahoma Life and Health Insurance

Guaranty Association, the Board of Directors of the Oklahoma Life

and Health Insurance Guaranty Association shall assess the member

insurers, separately for each account, at such time and for such

amounts as the Board finds necessary. Assessments shall be due not

less than thirty (30) days after prior written notice to the member

insurers and shall accrue interest at six percent (6%) per annum on

and after the due date.

Oklahoma Statutes - Title 36. Insurance Page 614

B. There shall be two classes of assessments, as follows:

1. Class A assessments shall be made for the purpose of meeting

administrative and legal costs and other expenses and examinations.

Class A assessments may be made whether or not related to a

particular impaired or insolvent insurer;

2. Class B assessments shall be made to the extent necessary to

carry out the powers and duties of the Association under Section

2028 of this title with regard to an impaired or an insolvent

foreign or domestic insurer.

C. 1. The amount of any Class A assessment shall be determined

by the Board and may be made on a pro rata or non-pro rata basis.

If pro rata, the Board may provide that it be credited against

future Class B assessments. A non-pro rata assessment shall be

credited against future insolvency.

The amount of any Class B assessment, except for assessments

related to long-term care insurance, shall be allocated for

assessment purposes among the accounts and among the subaccounts of

the life insurance and annuity account, pursuant to an allocation

formula which may be based on the premiums or reserves of the

impaired or insolvent insurer or any other standard deemed by the

Board in its sole discretion as being fair and reasonable under the

circumstances.

The amount of the Class B assessment for long-term care

insurance written by the impaired or insolvent insurer shall be

allocated according to a methodology included in the plan of

operation and approved by the Commissioner. The methodology shall

provide for fifty percent (50%) of the assessment to be allocated to

accident and health member insurers and fifty percent (50%) to be

allocated to life and annuity member insurers.

2. Class B assessments against member insurers for each account

shall be in the proportion that the premiums received on business in

this state by each assessed member insurer on policies or contracts

covered by each account for the three (3) most recent calendar years

for which information is available preceding the year in which the

member insurer became impaired or insolvent, as the case may be,

bears to such premiums received on business in this state for such

calendar years by all assessed member insurers.

3. Assessments for funds to meet the requirements of the

Association with respect to an impaired or insolvent insurer shall

not be made until necessary to implement the purposes of this act.

Classification of assessments under subsection B of this section and

computation of assessments under this subsection shall be made with

a reasonable degree of accuracy, recognizing that exact

determinations may not always be possible.

D. The Association may abate, or defer in whole or in part, the

assessment of a member insurer if, in the opinion of the Board,

payment of the assessment would endanger the ability of the member

Oklahoma Statutes - Title 36. Insurance Page 615

insurer to fulfill its contractual obligations. In the event an

assessment against a member insurer is abated, or deferred in whole

or in part, the amount by which such assessment is abated or

deferred may be assessed against the other member insurers in a

manner consistent with the basis for assessments set forth in this

section.

E. The total of all assessments upon a member insurer for each
nsurer to fulfill its contractual obligations. In the event an

assessment against a member insurer is abated, or deferred in whole

or in part, the amount by which such assessment is abated or

deferred may be assessed against the other member insurers in a

manner consistent with the basis for assessments set forth in this

section.

E. The total of all assessments upon a member insurer for each

account in any one (1) calendar year shall not exceed two percent

(2%) of such average premiums of the insurer received in this state

during the three (3) calendar years preceding the assessment on the

policies and contracts covered by the account and in which the

member insurer became an impaired or insolvent insurer. If the

maximum assessment together with the other assets of the Association

in any account does not provide in any one (1) year in either

account an amount sufficient to carry out the responsibilities of

the Association, the necessary additional funds shall be assessed as

soon thereafter as permitted by the Oklahoma Life and Health

Insurance Guaranty Association Act. The Board may provide in the

plan of operation, a method of allocating funds among claims,

whether relating to one or more impaired or insolvent insurers, when

the maximum assessment will be insufficient to cover anticipated

claims.

F. The Board may, by an equitable method as established in the

plan of operation, refund to member insurers, in proportion to the

contributions of each insurer to that account, the amount by which

the assets of the account exceed the amount the Board finds is

necessary to carry out the obligations of the Association during the

coming year with regard to that account, including assets accruing

from assignment, subrogation, net realized gains and income from

investments. A reasonable amount may be retained in any account to

provide funds for the continuing expenses of the Association and for

future losses.

G. It shall be proper for any member insurer to consider the

amount reasonably necessary to meet its obligations under this act

in determining its premium rates and policy owner dividends as to

any kind of insurance or health maintenance organization business

within the scope of the Oklahoma Life and Health Insurance Guaranty

Association Act.

H. The Association shall issue to each member insurer paying an

assessment under the Oklahoma Life and Health Insurance Guaranty

Association Act, other than a Class A assessment, a certificate of

contribution, in a form prescribed by the Commissioner, for the

amount of the assessment so paid. All outstanding certificates

shall be of equal priority without reference to amounts or dates of

issue. A certificate of contribution may be shown by the member

insurer in its financial statement as an asset in such form and for

Oklahoma Statutes - Title 36. Insurance Page 616

such amount, if any, and period of time as the Commissioner may

approve.

I. A member insurer may offset against its premium, franchise

or income tax liability to this state, an assessment described in

subsection H of this section to the extent of twenty percent (20%)

of the amount of such assessment for each of the five (5) calendar

years following the year in which such assessment was paid. In the

event a member insurer should cease doing business, all uncredited

assessments may be credited against its premium, franchise or income

tax liability for the year it ceases doing business.

J. Any sums acquired by refund, pursuant to subsection F of

this section, from the Association which have theretofore been

written off by contributing insurers and offset against premium,

franchise or income taxes as provided in subsection I of this

section, and are not then needed for purposes of the Oklahoma Life

and Health Insurance Guaranty Association Act, shall be paid by the

Association to the Insurance Commissioner who shall dispense such
of

this section, from the Association which have theretofore been

written off by contributing insurers and offset against premium,

franchise or income taxes as provided in subsection I of this

section, and are not then needed for purposes of the Oklahoma Life

and Health Insurance Guaranty Association Act, shall be paid by the

Association to the Insurance Commissioner who shall dispense such

funds in accordance with the statutes regarding disbursement of such

taxes.