Okla. Stat. tit. 54, § 54-1-309

Oklahoma Statutes - Title 54. Partnership Page 23

Security for Payment of Claims. (a) A limited liability

partnership, or a foreign limited liability partnership transacting

business in this state, shall provide security for claims against it

based upon acts, errors, or omissions arising out of the conduct of

the business of the partnership in the manner provided in subsection

(b), (c), (d) or (e) of this section.

(b) (1) A limited liability partnership or foreign limited

liability partnership is in compliance with this section if it

maintains a policy or policies of insurance against liability

imposed on it by law for damages arising out of claims of the type

specified in subsection (a) of this section. The policy or policies

of insurance may be issued on a claims-made or occurrence basis;

provided, that the total aggregate limit of liability thereof equals

or exceeds Five Hundred Thousand Dollars ($500,000.00). The

impairment or exhaustion of such aggregate limit of liability by

amounts paid under the policy in connection with the settlement,

discharge, or defense of claims shall not require the partnership to

acquire additional insurance coverage for the policy period to which

the impairment or exhaustion applies. Such policy or policies of

insurance may be of a type reasonably available in the commercial

insurance market and may be subject to such terms, conditions,

exclusions, and endorsements as are typically contained in such

policies.

(2) If the principal business activity of a limited liability

partnership or foreign limited liability partnership is not the

provision of professional services, the limited liability

partnership or foreign limited liability partnership may comply with

this section if it maintains a general liability insurance policy or

policies in the aggregate amount of at least Five Hundred Thousand

Dollars ($500,000.00). The impairment or exhaustion of such

aggregate limit of liability by amounts paid under the policy in

connection with the settlement, discharge, or defense of claims

shall not require the partnership to acquire additional insurance

coverage for the policy period to which the impairment or exhaustion

applies. Such policy or policies of insurance may be of a type

reasonably available in the commercial insurance market and may be

subject to such terms, conditions, exclusions, and endorsements as

are typically contained in such policies.

(3) A policy or policies of insurance maintained pursuant to

this subsection may be subject to a deductible or self-insured

retention not to exceed ten percent (10%) of the aggregate limit of

liability specified in paragraphs (1) and (2) of this subsection;

provided, however, that a deductible or self-insured retention may

exceed such amount if the partnership maintains funds in the manner

provided for in subsection (c) of this section in the amount of the

difference between the actual deductible or self-insured retention

and such amount.

Oklahoma Statutes - Title 54. Partnership Page 24
y specified in paragraphs (1) and (2) of this subsection;

provided, however, that a deductible or self-insured retention may

exceed such amount if the partnership maintains funds in the manner

provided for in subsection (c) of this section in the amount of the

difference between the actual deductible or self-insured retention

and such amount.

Oklahoma Statutes - Title 54. Partnership Page 24

(c) (1) A limited liability partnership or foreign limited

liability partnership is in compliance with this section if it

maintains funds specifically designated and segregated as security

for the payment of liabilities imposed by law against the

partnership or its partners arising out of claims of the type

specified in subsection (a) of this section, in the aggregate amount

of at least Five Hundred Thousand Dollars ($500,000.00). The

partnership remains in compliance with this section notwithstanding

amounts paid from the designated and segregated funds in any six-

month period in settling or discharging such claims; provided, that

the amount of the designated and segregated funds is increased to at

least Five Hundred Thousand Dollars ($500,000.00) as of the first

business day of the next six-month period. A limited liability

partnership or foreign limited liability partnership is in

compliance with this subsection if it:

(i) maintains funds in the required amount in trust or in

bank escrow in the form of cash, bank certificates of

deposit or United States Treasury obligations,

(ii) maintains in effect bank letters of credit in the

required amount, or

(iii) maintains in effect insurance or surety company bonds

in the required amount.

(2) Notwithstanding the pendency of other claims against the

partnership, a limited liability partnership or foreign limited

liability partnership shall be deemed to be in compliance with this

subsection if within thirty (30) days after the time that a claim is

initially asserted through service of a summons, complaint or

comparable pleading in a judicial or administrative proceeding, the

partnership has designated and segregated funds in compliance with

the requirement of paragraph (1) of this subsection.

(d) For purposes of satisfying the requirements of this

section, a limited liability partnership or foreign limited

liability partnership may aggregate security provided pursuant to

subsections (b) and (c) of this section.

(e) Notwithstanding any other provision of this section, if a

foreign limited liability partnership maintains liability insurance,

designated and segregated funds, or any combination thereof pursuant

to the laws or regulations of another jurisdiction, such liability

insurance, designated and segregated funds, or combination thereof

shall be deemed to satisfy this section if:

(1) The amount thereof is equal to or greater than the amount

required pursuant to this section; or

(2) The amount thereof, plus any security maintained pursuant

to subsection (b) or (c) of this section, is equal to or greater

than the amount required pursuant to this section.

(f) Federal or state law, as applicable, shall determine

whether the existence of the security required by subsection (b) or

Oklahoma Statutes - Title 54. Partnership Page 25

(c) of this section or the amount of such security may be revealed

pursuant to the law of civil procedure governing discovery in civil

cases or whether the existence or amount of that security may be

admitted into evidence for consideration by a trier of fact during a

civil proceeding.
e existence of the security required by subsection (b) or

Oklahoma Statutes - Title 54. Partnership Page 25

(c) of this section or the amount of such security may be revealed

pursuant to the law of civil procedure governing discovery in civil

cases or whether the existence or amount of that security may be

admitted into evidence for consideration by a trier of fact during a

civil proceeding.

(g) If a limited liability partnership or foreign limited

liability partnership fails to comply with this section, the

partners thereof shall be liable jointly for the debts, obligations

and liabilities of the partnership arising from claims specified in

subsection (a) of this section; provided, however, that the

aggregate amount for which the partners are jointly liable shall be

limited to the difference between the amount of security required to

be maintained pursuant to this section and the amount of security

actually maintained by the partnership.

(h) Notwithstanding any other provision of this section, if a

limited liability partnership or foreign limited liability

partnership is in substantial compliance with this section at the

time that a bankruptcy or other insolvency proceeding is commenced

with respect to the partnership, the partnership shall be deemed to

be in compliance with this section during the entire pendency of the

proceeding. A partnership that has been the subject of such a

proceeding and that conducts business after the proceeding has ended

must thereafter comply with this section in order to maintain its

status as a limited liability partnership or foreign limited

liability partnership.