Okla. Stat. tit. 36, § 36-2406

claims - Emergency or reserve fund - Merger, consolidation or

transfer of business and property.

Before any mutual benefit association shall do business in this

state, under this article, it shall file in the office of the

Insurance Commissioner, a bond of the official custodian of its fund

executed by a surety company authorized to do business in this

state, to be approved by the Commissioner, in the sum of Ten

Oklahoma Statutes - Title 36. Insurance Page 668

Thousand Dollars ($10,000.00), to be conditioned for the prompt and

full accounting and payment to the association of all of its funds

entrusted to the officer and that are in his or her hands, and that

he or she will faithfully comply with and perform all and singular

the duties and obligations imposed upon him or her by the laws of

this state. If any such association shall fail or refuse to make

payment of any benefit or claim against the association, after final

judgment has been obtained therefor, the Commissioner shall notify

the association not to issue any new certificates or solicit new

business until such indebtedness is fully paid, and no officer or

agent of such association shall make, sign or issue any certificate

of insurance while such notice is in force. Any such mutual benefit

association hereafter organized under the laws of this state shall,

before it completes its organization and receives a certificate of

authority to do business in this state, produce and maintain an

emergency or reserve fund of at least Ten Thousand Dollars

($10,000.00), and such reserve or emergency fund produced and

maintained as herein provided shall be invested in such securities

as may be approved by the Commissioner, as required by law for the

investment of such funds, and they shall be deposited with the

Commissioner and be held by him or her in trust as an emergency fund

for the benefit and protection of, and as security for, the

certificate holders of such associations, their legal

representatives or beneficiaries, and they shall have a lien to the

extent of any valid claim arising out of a valid certificate, after

such claim has been allowed by the association or established by a

final judgment of a court of competent jurisdiction. Such

securities as are deposited with the Commissioner, pursuant to this

article, shall be part of the admitted assets of the association

depositing the same. Two or more such associations authorized to do

business in this state where one or all of them have been authorized

under the laws of this state, may merge, unite or consolidate, or

may cause the business and property, in whole or in part of one or

more of the associations to be transferred to one of such

associations, or to any insurance association, company or

corporation licensed to do business in this state, or to any person

or persons: provided, however, before doing so, they shall submit to

the Commissioner their agreement relating thereto, and, thereupon,

he or she shall approve the same if he or she is satisfied that such

merger, consolidation or transfer will not be prejudicial to the

rights of the members and that such association can comply with the

terms and conditions prescribed by law for the conduct and operation

thereof.