Okla. Stat. tit. 36, § 36-4055.7

Confidentiality - Appointment of examiner - Liability.

A. 1. The Insurance Commissioner may conduct an examination

under the Viatical Settlements Act of 2008 of a licensee as often as

the Commissioner in his or her discretion deems appropriate after

considering the factors set forth in this paragraph. In scheduling

and determining the nature, scope, and frequency of the

examinations, the Commissioner shall consider such matters as the

consumer complaints, results of financial statement analyses and

ratios, changes in management or ownership, actuarial opinions,

report of independent certified public accountants, and other

relevant criteria as determined by the Commissioner.

2. For purposes of completing an examination of a licensee

under the Viatical Settlements Act of 2008, the Commissioner may

examine or investigate any person, or the business of any person,

insofar as the examination or investigation is, in the sole

discretion of the Commissioner, necessary or material to the

examination of the licensee.

3. In lieu of an examination under the Viatical Settlements Act

of 2008 of any foreign or alien licensee licensed in this state, the

Commissioner may, at the Commissioner's discretion, accept an

examination report on the licensee as prepared by the Commissioner

for the licensee's state of domicile or port-of-entry state.

4. As far as practical, the examination of a foreign or alien

licensee shall be made in cooperation with the insurance supervisory

officials of other states in which the licensee transacts business.

B. 1. A person required to be licensed by the Viatical

Settlements Act of 2008 shall for five (5) years for all settled

policies and for two (2) years for all policies which are not

settled retain copies of all:

a. proposed, offered or executed contracts, purchase

agreements, underwriting documents, policy forms, and

applications from the date of the proposal, offer or

execution of the contract or purchase agreement,

whichever is later,

b. all checks, drafts, electronic payment or other

evidence and documentation related to the payment,

transfer, deposit or release of funds from the date of

the transaction, and

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c. all other records and documents related to the

requirements of the Viatical Settlements Act of 2008.

2. This subsection does not relieve a person of the obligation

to produce these documents to the Commissioner after the retention

period has expired if the person has retained the documents.

3. Records required to be retained by this subsection must be

legible and complete and may be retained in paper, photograph,

microprocess, magnetic, mechanical, or electronic media, or by any

process that accurately reproduces or forms a durable medium for the

reproduction of a record.

C. 1. Upon determining that an examination should be

conducted, the Commissioner shall issue an examination warrant

appointing one or more examiners to perform the examination and

instructing them as to the scope of the examination. In conducting

the examination, the examiner shall observe those guidelines and

procedures set forth in the Examiners Handbook adopted by the

National Association of Insurance Commissioners (NAIC). The

Commissioner may also employ such other guidelines or procedures as

the Commissioner may deem appropriate.

2. Every licensee or person from whom information is sought,

its officers, directors and agents shall provide to the examiners

timely, convenient and free access at all reasonable hours at its

offices to all books, records, accounts, papers, documents, assets

and computer or other recordings relating to the property, assets,

business and affairs of the licensee being examined. The officers,

directors, employees and agents of the licensee or person shall

facilitate the examination and aid in the examination so far as it

is in their power to do so. The refusal of a licensee, by its
offices to all books, records, accounts, papers, documents, assets

and computer or other recordings relating to the property, assets,

business and affairs of the licensee being examined. The officers,

directors, employees and agents of the licensee or person shall

facilitate the examination and aid in the examination so far as it

is in their power to do so. The refusal of a licensee, by its

officers, directors, employees or agents, to submit to examination

or to comply with any reasonable written request of the Commissioner

shall be grounds for suspension or refusal of, or nonrenewal of any

license or authority held by the licensee to engage in the viatical

settlement business or other business subject to the Commissioner's

jurisdiction. Any proceedings for suspension, revocation or refusal

of any license or authority shall be conducted in accordance with

the Administrative Procedures Act.

3. The Commissioner shall have the power to issue subpoenas, to

administer oaths and to examine under oath any person as to any

matter pertinent to the examination. Upon the failure or refusal of

a person to obey a subpoena, the Commissioner may petition a court

of competent jurisdiction, and upon proper showing, the Court may

enter an order compelling the witness to appear and testify or

produce documentary evidence. Failure to obey the court order shall

be punishable as contempt of court.

4. When making an examination under the Viatical Settlements

Act of 2008, the Commissioner may retain attorneys, appraisers,

independent actuaries, independent certified public accountants or

Oklahoma Statutes - Title 36. Insurance Page 880

other professionals and specialists as examiners, the reasonable

cost of which shall be borne by the licensee that is the subject of

the examination.

5. Nothing contained in the Viatical Settlements Act of 2008

shall be construed to limit the Commissioner's authority to

terminate or suspend an examination in order to pursue other legal

or regulatory action pursuant to the insurance laws of this state.

Findings of fact and conclusions made pursuant to any examination

shall be prima facie evidence in any legal or regulatory action.

6. Nothing contained in the Viatical Settlements Act of 2008

shall be construed to limit the Commissioner's authority to use and,

if appropriate, to make public any final or preliminary examination

report, any examiner or licensee workpapers or other documents, or

any other information discovered or developed during the course of

any examination in the furtherance of any legal or regulatory action

which the Commissioner may, in his or her sole discretion, deem

appropriate.

D. 1. Examination reports shall be comprised of only facts

appearing upon the books, records or other documents of the

licensee, its agents or other persons examined, or as ascertained

from the testimony of its officers or agents or other persons

examined concerning its affairs, and such conclusions and

recommendations as the examiners find reasonably warranted from the

facts.

2. No later than sixty (60) days following completion of the

examination, the examiner in charge shall file with the Commissioner

a verified written report of examination under oath. Upon receipt

of the verified report, the Commissioner shall transmit the report

to the licensee examined, together with a notice that shall afford

the licensee examined a reasonable opportunity of not more than

thirty (30) days to make a written submission or rebuttal with

respect to any matters contained in the examination report.

3. In the event the Commissioner determines that regulatory

action is appropriate as a result of an examination, the

Commissioner may initiate any proceedings or actions provided by

law.

E. 1. Names and individual identification data for all viators

shall be considered private and confidential information and shall

not be disclosed by the Commissioner, unless required by law.
nation report.

3. In the event the Commissioner determines that regulatory

action is appropriate as a result of an examination, the

Commissioner may initiate any proceedings or actions provided by

law.

E. 1. Names and individual identification data for all viators

shall be considered private and confidential information and shall

not be disclosed by the Commissioner, unless required by law.

2. Except as otherwise provided in the Viatical Settlements Act

of 2008, all examination reports, working papers, recorded

information, documents and copies thereof produced by, obtained by

or disclosed to the Commissioner or any other person in the course

of an examination made under the Viatical Settlements Act of 2008,

or in the course of analysis or investigation by the Commissioner of

the financial condition or market conduct of a licensee shall be

confidential by law and privileged, shall not be subject to the

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Oklahoma Open Records Act, shall not be subject to subpoena, and

shall not be subject to discovery or admissible in evidence in any

private civil action. The Commissioner is authorized to use the

documents, materials or other information in the furtherance of any

regulatory or legal action brought as part of the Commissioner's

official duties.

3. Documents, materials or other information, including, but

not limited to, all working papers, and copies thereof, in the

possession or control of the NAIC and its affiliates and

subsidiaries shall be confidential by law and privileged, shall not

be subject to subpoena, and shall not be subject to discovery or

admissible in evidence in any private civil action if they are:

a. created, produced or obtained by or disclosed to the

NAIC and its affiliates and subsidiaries in the course

of assisting an examination made under this act, or

assisting a Commissioner in the analysis or

investigation of the financial condition or market

conduct of a licensee, or

b. disclosed to the NAIC and its affiliates and

subsidiaries under paragraph 4 of this subsection by a

Commissioner.

For the purposes of paragraph 2 of this subsection, "act" means

the law of another state or jurisdiction that is substantially

similar to the Viatical Settlements Act of 2008.

4. Neither the Commissioner nor any person that received the

documents, material or other information while acting under the

authority of the Commissioner, including the NAIC and its affiliates

and subsidiaries, shall be permitted to testify in any private civil

action concerning any confidential documents, materials or

information subject to paragraph 1 of this subsection.

5. In order to assist in the performance of the Commissioner's

duties, the Commissioner:

a. may share documents, materials or other information,

including the confidential and privileged documents,

materials or information subject to paragraph 1 of

this subsection, with other state, federal and

international regulatory agencies, with the NAIC and

its affiliates and subsidiaries, and with state,

federal and international law enforcement authorities,

provided that the recipient agrees to maintain the

confidentiality and privileged status of the document,

material, communication or other information, and

b. may receive documents, materials, communications or

information, including otherwise confidential and

privileged documents, materials or information, from

the NAIC and its affiliates and subsidiaries, and from

regulatory and law enforcement officials of other

Oklahoma Statutes - Title 36. Insurance Page 882

foreign or domestic jurisdictions, and shall maintain

as confidential or privileged any document, material

or information received with notice or the

understanding that it is confidential or privileged

under the laws of the jurisdiction that is the source

of the document, material or information.

6. No waiver of any applicable privilege or claim of
ma Statutes - Title 36. Insurance Page 882

foreign or domestic jurisdictions, and shall maintain

as confidential or privileged any document, material

or information received with notice or the

understanding that it is confidential or privileged

under the laws of the jurisdiction that is the source

of the document, material or information.

6. No waiver of any applicable privilege or claim of

confidentiality in the documents, materials or information shall

occur as a result of disclosure to the Commissioner under this

section or as a result of sharing as authorized in paragraph 5 of

this subsection.

7. A privilege established under the law of any state or

jurisdiction that is substantially similar to the privilege

established under this subsection shall be available and enforced in

any proceeding in, and in any court of, this state.

8. Nothing contained in the Viatical Settlements Act of 2008

shall prevent or be construed as prohibiting the Commissioner from

disclosing the content of an examination report, preliminary

examination report or results, or any matter relating thereto, to

the Commissioner of any other state or country, or to law

enforcement officials of this or any other state or agency of the

federal government at any time or to the NAIC, so long as such

agency or office receiving the report or matters relating thereto

agrees in writing to hold it confidential and in a manner consistent

with the Viatical Settlements Act of 2008.

F. 1. An examiner may not be appointed by the Commissioner if

the examiner, either directly or indirectly, has a conflict of

interest or is affiliated with the management of or owns a pecuniary

interest in any person subject to examination under the Viatical

Settlements Act of 2008. This section shall not be construed to

automatically preclude an examiner from being:

a. a viator,

b. an insured in a viaticated insurance policy, or

c. a beneficiary in an insurance policy that is proposed

to be viaticated.

2. Notwithstanding the requirements of this paragraph, the

Commissioner may retain from time to time, on an individual basis,

qualified actuaries, certified public accountants, or other similar

individuals who are independently practicing their professions, even

though these persons may from time to time be similarly employed or

retained by persons subject to examination under the Viatical

Settlements Act of 2008.

G. 1. No cause of action shall arise nor shall any liability

be imposed against the Commissioner, the Commissioner's authorized

representatives or any examiner appointed by the Commissioner for

any statements made or conduct performed in good faith while

carrying out the provisions of the Viatical Settlements Act of 2008.

Oklahoma Statutes - Title 36. Insurance Page 883

2. No cause of action shall arise, nor shall any liability be

imposed against any person for the act of communicating or

delivering information or data to the Commissioner or the

Commissioner's authorized representative or examiner pursuant to an

examination made under the Viatical Settlements Act of 2008, if the

act of communication or delivery was performed in good faith and

without fraudulent intent or the intent to deceive. This paragraph

does not abrogate or modify in any way any common law or statutory

privilege or immunity heretofore enjoyed by any person identified in

paragraph 1 of this subsection.

3. A person identified in paragraph 1 or 2 of this subsection

shall be entitled to an award of attorney fees and costs if he or

she is the prevailing party in a civil cause of action for libel,

slander or any other relevant tort arising out of activities in

carrying out the provisions of this act and the party bringing the

action was not substantially justified in doing so. For purposes of

this section a proceeding is "substantially justified" if it had a

reasonable basis in law or fact at the time that it was initiated.
is the prevailing party in a civil cause of action for libel,

slander or any other relevant tort arising out of activities in

carrying out the provisions of this act and the party bringing the

action was not substantially justified in doing so. For purposes of

this section a proceeding is "substantially justified" if it had a

reasonable basis in law or fact at the time that it was initiated.

H. The Commissioner may investigate suspected fraudulent

viatical settlement acts and persons engaged in the business of

viatical settlements.