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Oklahoma Legislature· SB 1916Approved by Governor 05/11/2026

An act relating to the Insurance Department, the official text

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1                   STATE OF OKLAHOMA

1

2                  2nd Session of the 60th Legislature (2026)

2

3 SENATE BILL 1916  By: Reinhardt
3

4

4

5

5

6                   AS INTRODUCED

6

7   An Act relating to the Insurance Department; amending

7   36 O.S. 2021, Sections 301, 1802, 1804, and 1805,

8   which relate to supervisors and conservators of

8   insurers; creating certain division within the

9   Insurance Department; defining terms; modifying

9   definitions; establishing certain powers for certain

10  supervisor; updating statutory language; establishing

10  certain powers for certain conservator; updating

11  statutory references; allowing the Insurance

11  Commissioner to employ or contract with certain

12  persons; establishing certain expenses as fixed by

12  the Commissioner; allowing the Commissioner to audit

13  certain persons or books; establishing certain

13  expenses as cost of administration; prohibiting

14  records to be considered certain records; prohibiting

14  disclosure of certain records in certain situations;

15  construing provisions; establishing immunity of

15  certain persons; amending 36 O.S. 2021, Sections

16  1901, as last amended by Section 1, Chapter 371,

16  O.S.L. 2023, and 1914 (36 O.S. Supp. 2025, Section

17  1901), which relate to rehabilitation and

17  liquidation; defining terms; modifying definitions;

18  prohibiting records to be considered certain records;

18  prohibiting disclosure of certain records in certain

19  situations; construing provisions; allowing the

19  Commissioner to employ or contract with certain

20  persons; establishing certain expenses as fixed by

20  the Commissioner; allowing the Commissioner to audit

21  certain persons or books; establishing certain

21  expenses as cost of administration; construing

22  provisions; authorizing the Oklahoma Receivership

22  Office to deposit certain funds; allowing combining

23  of certain funds; establishing use of certain funds;

23  establishing certain immunity and indemnification;

24  amending 36 O.S. 2021, Sections 1927.1 and 1937,

24

    Req. No. 3316                                              Page 1
1         which relate to rehabilitation and liquidation;

1         updating statutory language; updating statutory

2         references; establishing purpose of certain funds for

2         certain immunity and indemnification obligations;

3         establishing certain protections for certain

3         contracted persons; making language gender neutral

4         providing for codification; and providing an

4         effective date.

5

5

6

6

7 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
7

8   SECTION 1.     AMENDATORY  36 O.S. 2021, Section 301, is

8

9 amended to read as follows:
9

10  Section 301. A. The Insurance Department of the State of

10

11 Oklahoma is hereby created, and shall consist of such divisions,
11

12 sections, bureaus, offices, and positions as may be established by
12

13 the Insurance Commissioner, or by law. The Insurance Commissioner
13

14 shall be the chief executive officer of the Insurance Department.
14

15 The powers and duties of the Insurance Commissioner shall be those
15

16 created by the Oklahoma Insurance Code. The Insurance Department
16

17 shall be situated in one area in the State Capitol or some other
17

18 location conveniently accessible to the general public subject to
18

19 the provisions of Sections 63 and 94 of Title 74 of the Oklahoma
19

20 Statutes and Section 580:20-13-5 of the Oklahoma Administrative
20

21 Code.
21

22  B. There is hereby established a division within the Department

22

23 to handle the administration and operation of supervisions,
23

24 conservatorships, and receiverships in accordance with the
24

    Req. No. 3316                                               Page 2
1 provisions of Sections 1801 through 1938 of this title. The
1

2 division shall be under the direction of the Commissioner and any
2

3 appointed supervisor or conservator. The Commissioner shall take
3

4 all appropriate actions necessary to ensure a smooth conversion of
4

5 all existing supervisions, conservatorships, and receiverships to
5

6 the division by no later than January 1, 2028.
6

7   SECTION 2.     AMENDATORY       36 O.S. 2021, Section 1802, is

7

8 amended to read as follows:
8

9   Section 1802. As used in Article 18 of the Insurance Code, the

9

10 following words and terms set forth below shall have the meanings
10

11 ascribed to them unless the context otherwise indicates this act:
11

12  1. "Commissioner" means the Insurance Commissioner of this

12

13 state;
13

14  2. "Consent" means any agreement by the insurer to either

14

15 supervision or conservatorship;
15

16  3. "Conservator" means the Commissioner or his or her designee;

16

17  4. "Exceeded its powers" includes, but is not limited to, the

17

18 following circumstances:
18

19         a. an insurer's refusal to permit examination of its

19

20                 books, papers, accounts, records, or affairs by the

20

21                 Commissioner, his or her designee, or duly

21

22                 commissioned examiners; or if such insurer being

22

23                 organized in the State of Oklahoma removes from the

23

24

24

    Req. No. 3316                                              Page 3
1                  state such books, papers, accounts, or records

1

2                  necessary for an examination of such insurer,

2

3   b. an insurer's failure to promptly answer inquiries

3

4                  authorized by paragraph 7 of Section 1905 of this

4

5                  title,

5

6   c. an insurer's neglect or refusal to observe an order of

6

7                  the Commissioner to make good, within the time

7

8                  prescribed by law, any prohibited deficiency in its

8

9                  capital or surplus,

9

10  d. an insurer, without first obtaining written approval

10

11                 of the Commissioner, by contract or otherwise:

11

12                 (1) totally reinsuring its entire outstanding

12

13                 business, or

13

14                 (2) merging or consolidating substantially its entire

14

15                 property or business with another approved

15

16                 insurer, or

16

17  e. an insurer continuing to write business after its

17

18                 license has been revoked or suspended;

18

19  5. "Insolvent" or "insolvency" means any actual or threatened

19

20 insurer delinquency including, but not limited to, any one or more
20

21 of the following circumstances:
21

22  a. an insurer's required surplus or capital is impaired

22

23                 to an extent prohibited by law,

23

24

24

    Req. No. 3316                                                 Page 4
1   b. an insurer continues to write new business when it is

1

2                  not possessed of the surplus or capital required of it

2

3                  by law,

3

4   c. the business of any such insurer is being conducted

4

5                  fraudulently,

5

6   d. any such insurer attempts to dissolve or liquidate

6

7                  without first having made provisions, satisfactory to

7

8                  the Commissioner, for liabilities arising from

8

9                  policies of insurance issued by such insurer, or

9

10  e. the insurer has made investments in violation of the

10

11                 Oklahoma Insurance Code or has knowingly over-valued

11

12                 insurer's assets;

12

13  6. "Insurer" is a person, organization, association or company,

13

14 authorized or unauthorized, admitted or nonadmitted, acting as an
14

15 insurer, or as principal or agent of an insurer, including any
15

16 domestic, foreign or alien insurer, as defined in Article 6 of the
16

17 Insurance Code, and including stock companies, reciprocals or
17

18 insurance exchanges, Lloyds Associations, fraternal benefit
18

19 societies, stipulated premium companies, and mutual companies of all
19

20 kinds, including statewide mutual assessment corporations, local
20

21 mutual aids, burial associations, county mutual insurance companies
21

22 and farm mutual insurance companies, and health maintenance
22

23 organizations;
23

24

24

    Req. No. 3316                                               Page 5
1   3. "Insolvent" or "insolvency" means any actual or threatened

1

2 insurer delinquency including, but not limited to, any one or more
2

3 of the following circumstances:
3

4   a. an insurer's required surplus or capital is impaired

4

5                  to an extent prohibited by law,

5

6   b. an insurer continues to write new business when it is

6

7                  not possessed of the surplus or capital required of it

7

8                  by law,

8

9   c. the business of any such insurer is being conducted

9

10                 fraudulently,

10

11  d. any such insurer attempts to dissolve or liquidate

11

12                 without first having made provisions, satisfactory to

12

13                 the Commissioner, for liabilities arising from

13

14                 policies of insurance issued by such insurer; or

14

15  e. the insurer has made investments in violation of the

15

16                 Insurance Code or has knowingly over-valued insurer's

16

17                 assets;

17

18  4. "Exceeded its powers" includes, but is not limited to, the

18

19 following circumstances:
19

20  a. an insurer's refusal to permit examination of its

20

21                 books, papers, accounts, records or affairs by the

21

22                 Commissioner, his or her deputy or duly-commissioned

22

23                 examiners; or if such insurer being organized in the

23

24                 State of Oklahoma removes from the state such books,

24

    Req. No. 3316                                   Page 6
1                  papers, accounts or records necessary for an

1

2                  examination of such insurer,

2

3   b. an insurer's failure to promptly answer inquiries

3

4                  authorized by Section 1905(6) of this title,

4

5   c. an insurer's neglect or refusal to observe an order of

5

6                  the Commissioner to make good, within the time

6

7                  prescribed by law, any prohibited deficiency in its

7

8                  capital or surplus,

8

9   d. an insurer, without first obtaining written approval

9

10                 of the Commissioner, by contract or otherwise:

10

11                 (1) totally reinsuring its entire outstanding

11

12                 business, or

12

13                 (2) merging or consolidating substantially its entire

13

14                 property or business with another approved

14

15                 insurer, or

15

16  e. an insurer continuing to write business after its

16

17                 license has been revoked or suspended; and

17

18  5. "Consent" means any agreement by the insurer to either

18

19 supervision or conservatorship
19

20  7. "Oklahoma Receivership Office" means a division within the

20

21 Insurance Department that handles the administration and operation
21

22 of supervisions, conservatorships, and receiverships in accordance
22

23 with the provisions of Sections 1801 through 1938 of this title; and
23

24  8. "Supervisor" means the Commissioner or his or her designee.

24

    Req. No. 3316                                                Page 7
1   SECTION 3.        AMENDATORY   36 O.S. 2021, Section 1804, is

1

2 amended to read as follows:
2

3   Section 1804. A. During any period of supervision, the

3

4 Commissioner may appoint a supervisor for such insurer and provide
4

5 that the insurer may not do any of the following things without the
5

6 prior approval of the Commissioner or his the supervisor:
6

7   1. Dispose, convey or encumber any of its assets or its

7

8 business in force;
8

9   2. Withdraw funds from bank accounts;

9

10  3. Lend funds;

10

11  4. Invest funds;

11

12  5. Transfer property;

12

13  6. Incur any debt, obligation or liability;

13

14  7. Merge or consolidate with another company; or

14

15  8. Enter into any new reinsurance contract or treaty.

15

16  B. In addition, the Commissioner or the supervisor may require

16

17 of the insurer, the following:
17

18  1. Periodic actuarial reviews; and

18

19  2. That the insurer limit or cease writing certain lines of

19

20 insurance.
20

21  C. Within the limits of duties imposed upon them, appointed

21

22 supervisors shall possess all the powers given to a supervisor and,
22

23 in the exercise of those powers, shall be subject to all duties,
23

24 powers, and limitations imposed upon the supervisor.
24

    Req. No. 3316                                            Page 8
1   SECTION 4.     AMENDATORY      36 O.S. 2021, Section 1805, is

1

2 amended to read as follows:
2

3   Section 1805. A. If, after notice and hearing, at the

3

4 conclusion of the 90-day ninety-day period the Insurance
4

5 Commissioner determines that the insurer has failed to comply with
5

6 his the Commissioner's lawful requirements, or upon consent of the
6

7 insurer, he the Commissioner may appoint a conservator, who. Within
7

8 the limits of the duties imposed upon the conservator, the
8

9 conservator shall possess all the powers given to a conservator and,
9

10 in the exercise of those powers, shall be subject to all of the
10

11 duties, powers, and limitations imposed upon the conservator. The
11

12 conservator shall immediately:
12

13  1. Take charge of such insurer and all of the property, books,

13

14 records and effects;
14

15  2. Conduct its business; and

15

16  3. Take such other steps toward the removal of the causes and

16

17 conditions which have necessitated such order, as the Commissioner
17

18 may direct.
18

19  B. During the pendency of conservatorship, the conservator

19

20 shall make such reports as may be required by the Commissioner, and
20

21 may:
21

22  1. Take all necessary measures to preserve, protect and recover

22

23 any assets or property of such insurer including claims or causes of
23

24

24

    Req. No. 3316                                             Page 9
1 action belonging to orwhich or which may be asserted by such insurer
1

2 in his or her own name as conservator; and
2

3   2. File, prosecute and defend any legal actions which have been

3

4 filed, or which may thereafter be filed, by or against such insurer,
4

5 as he the conservator deems necessary to protect all of the
5

6 interested parties or any property affected thereby. The
6

7 conservator shall file all quarterly and annual reports required by
7

8 the Oklahoma Insurance Code and in the same manner as the insurer.
8

9   C. If upon appointment of a conservator or at any time during

9

10 the pendency of such conservatorship it appears that the insurer can
10

11 best be protected by reinsuring the same, the conservator may, with
11

12 the approval of the Commissioner, after appraisal of all assets of
12

13 the insurer:
13

14  1. Reinsure all or part of such insurer's policies or

14

15 certificates of insurance with any solvent insurers authorized to
15

16 transact business in this state; and
16

17  2. To the extent that such insurer is possessed of reserves

17

18 attributable to such policies or certificates of insurance, transfer
18

19 to the reinsuring company such reserves or any portion thereof as
19

20 may be required to consummate the reinsurance of such policies,
20

21 which transfer of reserves shall not be deemed a preference of
21

22 creditors.
22

23  D. If the Commissioner is satisfied that the insurer is not in

23

24 condition to continue business in the interest of its policy or
24

    Req. No. 3316                                           Page 10
1 certificate holders, under the conservator, the Commissioner shall
1

2 apply to the appropriate court for an order appointing him or her as
2

3 receiver for the insurer, under the provisions of Article 18
3

4 Sections 1801 through 1938 of this title. It shall be in the
4

5 discretion of the Commissioner to determine whether or not he or she
5

6 will operate the insurance company through a conservator, as
6

7 provided above, or apply for an order appointing him the
7

8 Commissioner receiver.
8

9   E. The cost incident to the supervisor's and conservator's

9

10 service The Commissioner may employ or contract with an appointed
10

11 supervisor or conservator, legal counsel, actuaries, accountants,
11

12 appraisers, consultants, clerks, assistants, or other personnel as
12

13 may be deemed necessary. Any appointed supervisor or conservator
13

14 with whom the Commissioner contracts pursuant to this subsection
14

15 shall be considered to be an agent of the Commissioner only in the
15

16 Commissioner's capacity as supervisor or conservator and shall not
16

17 be considered an agent of the state.
17

18  F. All expenses of the supervision or conservatorship shall be

18

19 fixed by the Commissioner and paid from the assets and funds of the
19

20 insurer as the Commissioner may determine. The cost of the
20

21 supervisor's or conservator's service must shall be reasonable under
21

22 the circumstances and shall continue no longer than necessary to
22

23 preserve the assets of the insurer, certificate holders and the
23

24 policyholders. All legal work required under this act shall be
24

    Req. No. 3316                                           Page 11
1 performed by the Commissioner, his the appointed supervisor or
1

2 conservator, the Commissioner's employees, or special attorneys
2

3 employed by the Commissioner. The cost of such attorneys' services
3

4 must shall be reasonable under the circumstances and shall be paid
4

5 from the assets and funds of the insurer to the Commissioner.
5

6   G. The Commissioner, in his or her discretion, may require

6

7 audits to be made of the books of any appointed supervisor or
7

8 conservator relating to any supervision or conservatorship
8

9 established under this act, and a report of each audit shall be
9

10 filed with the Commissioner. The books, records, and other
10

11 documents of the supervision or conservatorship shall be made
11

12 available to the auditor at any time without notice. The expenses
12

13 of each audit shall be considered a cost of administration of the
13

14 supervision or conservatorship.
14

15  H. The records of an insurer held by the Commissioner,

15

16 supervisor, conservator, and his or her employees shall not be:
16

17  1. Considered records of the Insurance Department;

17

18  2. Public records;

18

19  3. Subject to subpoena; and

19

20  4. Disclosed, except in connection with administrative or

20

21 receivership proceedings by the Commissioner.
21

22  I. The provisions of any law governing the procurement of goods

22

23 and services by the state or an official of the executive branch
23

24 shall not apply to any contract entered into by the Commissioner or
24

    Req. No. 3316                                             Page 12
1 the Commissioner's authorized signatory as conservator or
1

2 supervisor.
2

3   F. J. The supervision or conservation may continue until the

3

4 Commissioner (1) feels certain that the insurer has corrected any
4

5 deficiencies that caused the supervision or conservation, or (2) a
5

6 receivership has been granted by the Court.
6

7   SECTION 5.     NEW LAW     A new section of law to be codified

7

8 in the Oklahoma Statutes as Section 1813 of Title 36, unless there
8

9 is created a duplication in numbering, reads as follows:
9

10  The Insurance Commissioner, his or her employees, current or

10

11 former appointed supervisor or conservator, or the supervisor's or
11

12 conservator's contractors shall:
12

13  1. Have no liability and no cause of action of any nature shall

13

14 arise against such person for any action taken in performance of his
14

15 or her powers and duties pursuant to this act; and
15

16  2. Be indemnified to the same extent as a receiver and the

16

17 receiver's employees and contractors are indemnified pursuant to
17

18 Section 1937 of Title 36 of the Oklahoma Statutes.
18

19  SECTION 6.     AMENDATORY        36 O.S. 2021, Section 1901, as

19

20 last amended by Section 1, Chapter 371, O.S.L. 2023 (36 O.S. Supp.
20

21 2025, Section 1901), is amended to read as follows:
21

22  Section 1901. For the purpose of Article 19 of the Oklahoma

22

23 Insurance Code As used in this act:
23

24

24

    Req. No. 3316                                            Page 13
1   1. "Ancillary state" means any state other than a domiciliary

1

2 state;
2

3   2. "Delinquency proceeding" means any proceeding commenced

3

4 against an insurer pursuant to this act for the purpose of
4

5 liquidating, rehabilitating, reorganizing, or conserving such
5

6 insurer;
6

7   3. "Domiciliary state" means the state in which an insurer is

7

8 incorporated or organized, or in the case of an insurer incorporated
8

9 or organized in a foreign country, the state in which such insurer,
9

10 having become authorized to do business in such state, has at the
10

11 commencement of delinquency proceedings the largest amount of its
11

12 assets held in trust and assets held on deposit for the benefit of
12

13 its policyholders or policyholders and creditors in the United
13

14 States, and any such insurer deemed to be domiciled in such state;
14

15  4. "Foreign country" means territory not in any state;

15

16  5. "General assets" means all property, real, personal, or

16

17 otherwise, not specifically mortgaged, pledged, deposited, or
17

18 otherwise encumbered for the security or benefit of specified
18

19 persons or a limited class or classes of persons, and as to such
19

20 specifically encumbered property, the term includes all such
20

21 property or its proceeds in excess of the amount necessary to
21

22 discharge the sum or sums secured. Assets held in trust and assets
22

23 held on deposit for the security or benefit of all policyholders or
23

24

24

    Req. No. 3316                                             Page 14
1 all policyholders and creditors in the United States shall be deemed
1

2 general assets;
2

3   6. "Insurer" means any person, firm, corporation, health

3

4 maintenance organization, association, or aggregation of persons
4

5 doing an insurance business and subject to the insurance supervisory
5

6 authority of, or to liquidation, rehabilitation, reorganization, or
6

7 conservation by the Insurance Commissioner or the equivalent
7

8 insurance supervisory official of another state;
8

9   7. "Impairment" or "insolvency" means the capital of a stock

9

10 insurer, or limited stock life, accident and health insurer, the net
10

11 assets of a Lloyds association, or the surplus of a mutual or
11

12 reciprocal insurer, shall be deemed to be impaired and the insurer
12

13 shall be deemed to be insolvent, when such insurer shall not be
13

14 possessed of assets at least equal to all liabilities and required
14

15 reserves together with its total issued and outstanding capital
15

16 stock if a stock insurer, the net assets if a Lloyds association, or
16

17 the minimum surplus if a mutual or reciprocal insurer required by
17

18 this Code to be maintained for the kind or kinds of insurance it is
18

19 then authorized to transact;
19

20  2. "Insurer" means any person, firm, corporation, health

20

21 maintenance organizations, association or aggregation of persons
21

22 doing an insurance business and subject to the insurance supervisory
22

23 authority of, or to liquidation, rehabilitation, reorganization or
23

24

24

    Req. No. 3316                                   Page 15
1 conservation by the Insurance Commissioner or the equivalent
1

2 insurance supervisory official of another state;
2

3   3. "Delinquency proceeding" means any proceeding commenced

3

4 against an insurer pursuant to this article for the purpose of
4

5 liquidating, rehabilitating, reorganizing or conserving such
5

6 insurer;
6

7   4. "State" means any state of the United States and also the

7

8 District of Columbia and Puerto Rico;
8

9   5. "Foreign country" means territory not in any state;

9

10  6. "Domiciliary state" means the state in which an insurer is

10

11 incorporated or organized, or in the case of an insurer incorporated
11

12 or organized in a foreign country, the state in which such insurer,
12

13 having become authorized to do business in such state, has at the
13

14 commencement of delinquency proceedings, the largest amount of its
14

15 assets held in trust and assets held on deposit for the benefit of
15

16 its policyholders or policyholders and creditors in the United
16

17 States, and any such insurer is deemed to be domiciled in such
17

18 state;
18

19  7. "Ancillary state" means any state other than a domiciliary

19

20 state;
20

21  8. "Reciprocal state" means any state other than this state

21

22 that has enacted a law that sets forth a scheme for the
22

23 administration of an insurer in receivership by the state's
23

24 insurance commissioner or comparable insurance regulatory official;
24

    Req. No. 3316                                           Page 16
1   9. "General assets" means all property, real, personal or

1

2 otherwise, not specifically mortgaged, pledged, deposited or
2

3 otherwise encumbered for the security or benefit of specified
3

4 persons or a limited class or classes of persons, and as to such
4

5 specifically encumbered property the term includes all such property
5

6 or its proceeds in excess of the amount necessary to discharge the
6

7 sum or sums secured thereby. Assets held in trust and assets held
7

8 on deposit for the security or benefit of all policyholders or all
8

9 policyholders and creditors in the United States shall be deemed
9

10 general assets;
10

11  10. "Preferred claim" means any claim with respect to which the

11

12 law of the state or of the United States accords priority of
12

13 payments from the general assets of the insurer;
13

14  8. "Oklahoma Receivership Office" means a division within the

14

15 Insurance Department that handles the administration and operation
15

16 of supervisions, conservatorships, and receiverships in accordance
16

17 with the provisions of Sections 1801 through 1938 of this title;
17

18  9. "Preferred claim" means any claim with respect to which the

18

19 laws of the state or of the United States accords priority of
19

20 payments from the general assets of the insurer;
20

21  10. "Receiver" means a receiver, liquidator, rehabilitator, or

21

22 conservator as the context may require;
22

23  11. "Reciprocal state" means any state other than this state

23

24 that has enacted a law that sets forth a scheme for the
24

    Req. No. 3316                                           Page 17
1 administration of an insurer in receivership by the state's
1

2 insurance commissioner or comparable insurance regulatory official;
2

3   12. "Secured claim" means any claim secured by mortgage, trust

3

4 deed, pledge, deposit as security, escrow, or otherwise, but not
4

5 including special deposit claim or claims against general assets.
5

6 The term also includes claims that more than four (4) months prior
6

7 to the commencement of delinquency proceedings in the state of the
7

8 insurer's domicile have become liens upon specific assets by reason
8

9 of judicial process;
9

10  11. 13. "Special deposit claim" means any claim secured by a

10

11 deposit made pursuant to statute for the security or benefit of a
11

12 limited class or classes of persons, but not including any general
12

13 assets;
13

14  12. "Secured claim" means any claim secured by mortgage, trust

14

15 deed, pledge, deposit as security, escrow, or otherwise, but not
15

16 including special deposit claim or claims against general assets.
16

17 The term also includes claims which more than four (4) months prior
17

18 to the commencement of delinquency proceedings in the state of the
18

19 insurer's domicile have become liens upon specific assets by reason
19

20 of judicial process;
20

21  13. "Receiver" means receiver, liquidator, rehabilitator, or

21

22 conservator as the context may require; and
22

23

23

24

24

    Req. No. 3316                               Page 18
1   14. "State" means any state, territory, or district of the

1

2 United States including, but not limited to, the District of
2

3 Columbia and Puerto Rico; and
3

4   15. "Qualified financial contract" means a commodity contract,

4

5 forward contract, repurchase agreement, securities contract, swap
5

6 agreement, and any similar agreement the Commissioner determines by
6

7 rule, regulation, resolution, or order to be a qualified financial
7

8 contract.
8

9   SECTION 7.     AMENDATORY    36 O.S. 2021, Section 1914, is

9

10 amended to read as follows:
10

11  Section 1914. A. Whenever under this article Section 1901

11

12 through 1938 of this title a receiver is to be appointed in
12

13 delinquency proceedings for a domestic or alien insurer, the court
13

14 shall appoint the Insurance Commissioner as the receiver. The court
14

15 shall order the Insurance Commissioner forthwith to take possession
15

16 of the assets of the insurer and to administer the same under the
16

17 orders of the court.
17

18  B. 1. As domiciliary receiver, the Insurance Commissioner

18

19 shall be vested by operation of law with the title to all of the
19

20 property, contracts, and rights of action and all of the books and
20

21 records of the insurer, wherever located, as of the date of entry of
21

22 the order directing the Commissioner to rehabilitate or liquidate a
22

23 domestic insurer or to liquidate the United States branch of an
23

24 alien insurer domiciled in this state, and the Commissioner shall
24

    Req. No. 3316                Page 19
1 have the right to recover the same and reduce the same to
1

2 possession; except that ancillary receivers in reciprocal states
2

3 shall have, as to assets located in their respective states, the
3

4 rights and powers which are herein prescribed for ancillary
4

5 receivers appointed in this state as to assets located in this
5

6 state.
6

7   2. The records of an insurer held by the Commissioner as

7

8 receiver, the assistant receiver, and his or her employees, shall
8

9 not be:
9

10         a. considered records of the Insurance Department,

10

11         b. public records,

11

12         c. subject to subpoena, and

12

13         d. disclosed except in connection with administrative or

13

14                 receivership proceedings by the Commissioner.

14

15  C. The recording of a certified copy of the order directing

15

16 possession to be taken in the office of the county clerk of the
16

17 county where the proceedings are pending shall impart the same
17

18 notice as would be imparted by a deed, bill of sale, or other
18

19 evidence of title duly recorded or filed.
19

20  D. The Insurance Commissioner as domiciliary receiver shall be

20

21 responsible for the proper administration of all assets coming into
21

22 the Commissioner's possession or control. The court may at any time
22

23 require a bond from the Commissioner or any assistants or deputies
23

24 if deemed desirable for the protection of the assets.
24

    Req. No. 3316                                            Page 20
1   E. Upon taking possession of the assets of an insurer, the

1

2 domiciliary receiver shall, subject to the direction of the court,
2

3 immediately proceed to conduct the business of the insurer or to
3

4 take such steps as are authorized by this article for the purpose of
4

5 rehabilitating, liquidating, or conserving the affairs or assets of
5

6 the insurer.
6

7   F. 1. In connection with delinquency proceedings, the

7

8 Insurance Commissioner may appoint one or more assistant
8

9 commissioners receivers to act for the Commissioner and may employ
9

10 such counsel, clerks, and assistants as are deemed necessary. The
10

11 Commissioner may employ or contract with an assistant receiver,
11

12 legal counsel, actuaries, accountants, appraisers, consultants,
12

13 clerks, assistants, or other contractors as may be deemed necessary.
13

14 Any appointed assistant receiver with whom the Commissioner
14

15 contracts pursuant to this subsection shall be considered to be an
15

16 agent of the Commissioner only in the Commissioner's capacity as
16

17 receiver and shall not be considered an agent of the state.
17

18  2. The compensation of the assistant commissioners receivers,

18

19 counsel, actuaries, accountants, consultants, clerks, assistants, or
19

20 deputies other contractors and all expenses of taking possession of
20

21 the insurer and of conducting the proceedings shall be fixed by the
21

22 receiver, subject to the approval of the court, and shall be paid
22

23 out of the funds or assets of the insurer. Within the limits of
23

24 duties imposed upon them, assistant commissioners receivers shall
24

    Req. No. 3316                                           Page 21
1 possess all the powers given to the receiver and, in the exercise of
1

2 those powers, shall be subject to all of the duties, powers, and
2

3 limitations imposed upon the receiver with respect to such
3

4 proceedings.
4

5   2. 3. The Commissioner, as receiver, is shall be prohibited

5

6 from appointing any person who is related to the Commissioner within
6

7 the third degree of consanguinity or affinity. Any appointment in
7

8 violation of this paragraph is shall be void.
8

9   3. 4. The Commissioner, as receiver, is shall be prohibited

9

10 from entering into any contract with any person who is related to
10

11 the Commissioner within the third degree of consanguinity or
11

12 affinity. Any contract in violation of this paragraph is shall be
12

13 void.
13

14  G. The court, as it seems desirable, may require audits to be

14

15 made of the books of the receiver relating to any receivership
15

16 established pursuant to this act, and a report of each audit shall
16

17 be filed with the receiver and the court. The books, records, and
17

18 other documents of the receivership shall be made available to the
18

19 auditor at any time without notice. The expenses of each audit
19

20 shall be considered a cost of administration of the receivership.
20

21  H. The provisions of any law governing the procurement of goods

21

22 and services by the state or an official of the executive branch
22

23 shall not apply to any contract entered into by the Commissioner or
23

24 the Commissioner's authorized signatory as receiver.
24

    Req. No. 3316                                             Page 22
1   SECTION 8.     NEW LAW  A new section of law to be codified

1

2 in the Oklahoma Statutes as Section 1914.1 of Title 36, unless there
2

3 is created a duplication in numbering, reads as follows:
3

4   A. The Oklahoma Receivership Office shall be authorized to

4

5 deposit funds and assets held prior to the effective date of this
5

6 act pursuant to Sections 1901 through 1938 of Title 36 of the
6

7 Oklahoma Statutes into one or more accounts or investment accounts,
7

8 in one or more state or national banks, saving banks, savings and
8

9 loan associations, trust companies, investment firms, or other
9

10 appropriate financial institutions. Funds deposited pursuant to
10

11 this section may be:
11

12  1. Combined to yield the highest rate of return on deposits, or

12

13 in any other way to facilitate the efficient operation of the
13

14 Oklahoma Receivership Office and the respective receiverships under
14

15 its jurisdiction; and
15

16  2. Used for the purpose of operating the division, for the

16

17 expenses of the respective jurisdiction in accordance with the
17

18 provisions of Sections 1901 through 1938 of Title 36 of the Oklahoma
18

19 Statutes.
19

20  B. Funds deposited pursuant to subsection A of this section

20

21 shall be continuing funds, are not funds of this state, the
21

22 Insurance Department, or any other agency of this state, and shall
22

23 be in no way commingled or combined with funds of this state.
23

24

24

    Req. No. 3316                                           Page 23
1   SECTION 9.     AMENDATORY        36 O.S. 2021, Section 1927.1, is

1

2 amended to read as follows:
2

3   Section 1927.1. A. The priority of distribution of claims from

3

4 the insurer's estate shall be in accordance with the order in which
4

5 each class of claims is set forth in this section. Before the
5

6 members of the next class receive any payment, every claim in each
6

7 class shall be:
7

8   1. Paid in full; or

8

9   2. Protected by adequate funds retained for such payment.

9

10 Once such funds are approved by the court and paid or retained by
10

11 the liquidator, the insurer's estate shall have no further liability
11

12 to members of that class except to the extent of the retained funds
12

13 and any other undistributed funds. Payment of retained funds
13

14 pursuant to court order under this section extinguishes the
14

15 potential liability of the receiver to the United States or any
15

16 other governmental entity. No subclasses shall be established
16

17 within any class except as otherwise provided by law. No claim by a
17

18 shareholder, policyholder or other creditor shall be permitted to
18

19 circumvent the priority classes through the use of equitable
19

20 remedies. The order of distribution of claims shall be as provided
20

21 in subsection B of this section.
21

22  B. 1. Class 1. The reasonable costs and expenses of

22

23 administration expressly approved by the receiver, including but not
23

24 limited to the following:
24

    Req. No. 3316                                        Page 24
1   a. the actual and necessary costs of preserving or

1

2                  recovering the assets of the insurer,

2

3   b. compensation for all authorized services rendered in

3

4                  the conservation, rehabilitation or liquidation,

4

5   c. any necessary filing or recordation fees,

5

6   d. the fees and mileage payable to witnesses, including

6

7                  experts, and other litigation costs and expenses,

7

8   e. authorized reasonable attorney fees and other

8

9                  professional services rendered in the conservation,

9

10                 rehabilitation or liquidation, and

10

11  f. any reasonable expenses that were incurred in

11

12                 furtherance of activities that provided a material

12

13                 economic benefit to the estate.

13

14  2. Class 2. The administrative expenses of guaranty

14

15 associations. For purposes of this section these expenses shall be
15

16 the reasonable expenses incurred by guaranty associations where the
16

17 expenses are not payments or expenses which are required to be
17

18 incurred as direct policy benefits in fulfillment of the terms of
18

19 the insurance contract or policy, and that are of the type and
19

20 nature that, but for the activities of the guaranty association
20

21 otherwise would have been incurred by the receiver, including but
21

22 not limited to evaluations of policy coverage, activities involved
22

23 in the adjustment and settlement of claims under policies, including
23

24 those of in-house or outside adjusters, and the reasonable expenses
24

    Req. No. 3316                                         Page 25
1 incurred in connection with the arrangements for ongoing coverage
1

2 through transfer to other insurers, policy exchanges or maintaining
2

3 policies in force. The receiver may in his or her sole discretion
3

4 approve as an administrative expense under this section any other
4

5 reasonable expenses of the guaranty association if the receiver
5

6 finds:
6

7         a. the expenses are not expenses required to be paid or

7

8                  incurred as direct policy benefits by the terms of the

8

9                  policy, and

9

10        b. the expenses were incurred in furtherance of

10

11                 activities that provided a material economic benefit

11

12                 to the estate as a whole, irrespective of whether the

12

13                 activities resulted in additional benefits to covered

13

14                 claimants.

14

15 The court shall approve such expenses unless it finds the receiver
15

16 abused his or her discretion in approving the expenses. If the
16

17 receiver determines that any administrative expenses of a guaranty
17

18 association were not reasonable expenses, but were nevertheless paid
18

19 out of a statutory deposit or the proceeds of any bond or other
19

20 asset located in another state or foreign country, then the court
20

21 shall adjudge the Class 3 claims of that association to have been
21

22 paid to the extent of the amount of unreasonable expenses thus paid
22

23 from those assets.
23

24

24

    Req. No. 3316                                          Page 26
1  If the receiver determines that the assets of the estate will be

1

2 sufficient to pay all Class 1 claims in full, Class 2 claims shall
2

3 be paid, provided that the liquidator shall secure from each of the
3

4 associations receiving disbursements pursuant to this section an
4

5 agreement to return to the liquidator such disbursements, together
5

6 with investment income actually earned on such disbursements, as may
6

7 be required to pay Class 1 claims. No bond shall be required of any
7

8 such association.
8

9  3. Class 3. All claims under policies including claims of the

9

10 federal or any state or local government for losses incurred ("loss
10

11 claims") including third-party claims, claims for unearned premiums,
11

12 all claims of a guaranty association for payment of covered claims
12

13 or covered obligations of the insurer and all claims of a guaranty
13

14 association for reasonable expenses other than those included in
14

15 Class 2. All claims under life and health insurance and annuity
15

16 policies, whether for death proceeds, health benefits, annuity
16

17 proceeds, or investment values shall be treated as loss claims.
17

18 That portion of any loss, indemnification for which is provided by
18

19 other benefits or advantages recovered by the claimant, shall not be
19

20 included in this class, other than benefits or advantages recovered
20

21 or recoverable in discharge of familial obligation of support or by
21

22 way of succession at death or as proceeds of life insurance, or as
22

23 gratuities. No payment by an employer to his employee shall be
23

24 treated as a gratuity.
24

   Req. No. 3316           Page 27
1   Notwithstanding the foregoing, the following claims shall be

1

2 excluded from Class 3 priority:
2

3   a. obligations of the insolvent insurer arising out of

3

4                  reinsurance contracts,

4

5   b. obligations incurred after the expiration date of the

5

6                  insurance policy or after the policy has been replaced

6

7                  by the insured or canceled at the insured's request or

7

8                  after the policy has been canceled as provided in this

8

9                  act. Notwithstanding the provisions of this

9

10                 paragraph, earned premium claims on policies, other

10

11                 than reinsurance agreements, shall not be excluded,

11

12  c. obligations to insurers, insurance pools or

12

13                 underwriting associations and their claims for

13

14                 contribution, indemnity or subrogation, equitable or

14

15                 otherwise,

15

16  d. any claim which is in excess of any applicable limits

16

17                 provided in the insurance policy issued by the

17

18                 insolvent insurer,

18

19  e. any amount accrued as punitive or exemplary damages

19

20                 unless expressly covered under the terms of the

20

21                 policy, and

21

22  f. tort claims of any kind against the insurer, and

22

23                 claims against the insurer for bad faith or wrongful

23

24                 settlement practices.

24

    Req. No. 3316                                               Page 28
1   4. Class 4. Claims of the federal government other than those

1

2 claims included in Class 3.
2

3   5. Class 5. Debts due employees for services, benefits,

3

4 contractual or otherwise due arising out of such reasonable
4

5 compensation to employees for services performed to the extent that
5

6 they do not exceed two (2) months of monetary compensation and
6

7 represent payment for services performed within six (6) months
7

8 before the filing of the petition for liquidation or, if
8

9 rehabilitation preceded liquidation, within one (1) year before the
9

10 filing of the petition for rehabilitation. Principal officers and
10

11 directors shall not be entitled to the benefit of this priority
11

12 except as otherwise approved by the liquidator and the court. This
12

13 priority shall be in lieu of any other similar priority which may be
13

14 authorized by law as to wages or compensation of employees.
14

15  6. Class 6. Claims of any person, including claims of state or

15

16 local governments, except those specifically classified elsewhere in
16

17 this section.
17

18  7. Class 7. Claims for commissions and service fees, and

18

19 claims of attorneys for fees and expenses owed them by a person for
19

20 services rendered in opposing a formal delinquency proceeding. In
20

21 order to prove the claim, the claimant must shall show that the
21

22 insurer which is the subject of the delinquency proceeding incurred
22

23 such fees and expenses based on its best knowledge, information and
23

24 belief, formed after reasonable inquiry indicating opposition was in
24

    Req. No. 3316                                           Page 29
1 the best interests of the person, was well grounded in fact and was
1

2 warranted by existing law or a good-faith argument for the
2

3 extension, modification or reversal of existing law, and that
3

4 opposition was not pursued for any improper purpose, such as to
4

5 harass or to cause unnecessary delay or needless increase in the
5

6 cost of the litigation.
6

7   8. Class 8. Claims of any state or local government for a

7

8 penalty or forfeiture, but only to the extent of the pecuniary loss
8

9 sustained from the act, transaction or proceeding out of which the
9

10 penalty or forfeiture arose, with reasonable and actual costs
10

11 occasioned thereby. The remainder of such claims shall be postponed
11

12 to the class of claims under paragraph 9 of this subsection.
12

13  9. Class 9. Surplus or contribution notes or similar

13

14 obligations, premium refunds on assessable policies, interest on
14

15 claims of Classes 1 through 8 and any other claims specifically
15

16 subordinated to this class.
16

17  10. Class 10. a. Claims of shareholders or other owners

17

18 arising out of their capacity as shareholders or other owners, or
18

19 arising in any other capacity or facts except as they may be
19

20 qualified in Class 3 or 4 above; provided, however, that no
20

21 shareholder, member or other owner shall be entitled to, or receive,
21

22 any distribution from the insolvent insurer's estate under this
22

23 paragraph, if:
23

24

24

    Req. No. 3316                                             Page 30
1   (1) a. the intentional wrongdoing, fraud, gross negligence,

1

2                  negligence or other act, failure to act, transaction

2

3                  or proceeding of such shareholder, member or owner,

3

4                  alone or in concert with others, or of a director or

4

5                  officer of the insolvent insurer, is found by a court

5

6                  of competent jurisdiction or by the receiver in his or

6

7                  her reasonable discretion, to have caused, or to have

7

8                  been a contributing factor to, the insolvency of the

8

9                  insolvent insurer,

9

10  (2) b. funds were collected from the shareholder, member or

10

11                 other owner, either directly or through an insurance

11

12                 carrier, fidelity bond issuer or other entity, as a

12

13                 consequence of, or related to, a claim made or brought

13

14                 by the receiver of said insurer, or

14

15  (3) c. any of the funds available for distribution consist

15

16                 of punitive damages recovered by the receiver of said

16

17                 estate from any source based upon any claim made or

17

18                 brought by the receiver.

18

19  C. 1. In the event there is no eligible shareholder, member or

19

20 other owner entitled to distribution in accordance with this
20

21 paragraph section, the remaining funds and other property of the
21

22 insolvent insurer's estate, if any, shall be distributed to a fund
22

23 established and held in the name of, and for the use and benefit of,
23

24 the receiver, through the Oklahoma Receivership Office or any
24

    Req. No. 3316                                       Page 31
1 similar entity established by the receiver, which shall be used in
1

2 the administration of other insurers in rehabilitation or
2

3 liquidation.
3

4   b. 2. All funds distributed to the receiver under this

4

5 paragraph shall be advanced to and utilized by the receiver's staff
5

6 engaged in the rehabilitation or liquidation of insolvent insurance
6

7 business companies for the following purposes:
7

8   (1) a. the administration of liquidations of estates which

8

9                  temporarily or permanently do not have the financial

9

10                 capability to administer the liquidation, including

10

11                 the prosecution of claims of the receiver, or

11

12  (2) b. the prosecution of petitions to place insurers in

12

13                 rehabilitation or liquidation, or

13

14  c. the immunity and indemnification obligations of the

14

15                 insurer pursuant to Section 1937 of this title.

15

16  In the event such 3. Such funds are distributed to or for an

16

17 insolvent insurer, the receiver shall obtain from the insurer a
17

18 promissory note or other evidence of indebtedness, secured by
18

19 collateral if possible, for the amount distributed, which shall be
19

20 treated as a Class 1 expense under paragraph 1 of this subsection.
20

21 The receiver shall make good-faith efforts to collect reimbursement
21

22 of any such loans. No funds distributed to the receiver under this
22

23 paragraph shall be used to pay claims other than Class 1 claims
23

24 under paragraph 1 of this subsection. The funds are not funds of
24

    Req. No. 3316                                            Page 32
1 the State of Oklahoma this state and are not funds of the Oklahoma
1

2 Insurance Department or any other agency of the State of Oklahoma
2

3 this state.
3

4 This paragraph shall apply to the administration of all receivership
4

5 estates open and ongoing as of November 1, 2014, and to all
5

6 receivership proceedings commenced after November 1, 2014.
6

7   C. D. If any claimant of this state, another state or foreign

7

8 country shall be entitled to or shall receive a dividend upon his or
8

9 her claim out of a statutory deposit or the proceeds of any bond or
9

10 other asset located in another state or foreign country, unless such
10

11 deposit or proceeds shall have been delivered to the domiciliary
11

12 liquidator, then the claimants shall not be entitled to any further
12

13 dividend from the receiver until and unless all other claimants of
13

14 the same class, irrespective of residence or place of the acts or
14

15 contracts upon which their claims are based, shall have received an
15

16 equal dividend upon their claims, and after such equalization, such
16

17 claimants shall be entitled to share in the distribution of further
17

18 dividends by the receiver, along with and like all other creditors
18

19 of the same class, wheresoever residing.
19

20  D. E. Upon the declaration of a dividend, the receiver shall

20

21 apply the amount of the dividend against any indebtedness owed to
21

22 the insurer by the person entitled to the dividend. There shall be
22

23 no claim allowed for any deductible charged by a guaranty
23

24 association or entity performing a similar function.
24

    Req. No. 3316                                             Page 33
1   E. F. This section shall apply to pending and future claims in

1

2 existing delinquency proceedings as well as to claims in delinquency
2

3 proceedings arising after the effective date of this section.
3

4   F. G. If any provision of this section or the application

4

5 thereof to any person or circumstances is held invalid, such
5

6 invalidity shall not affect other provisions or application of this
6

7 section to the extent such other provisions or application can be
7

8 given effect without the invalid provision or application.
8

9   SECTION 10.    AMENDATORY   36 O.S. 2021, Section 1937, is

9

10 amended to read as follows:
10

11  Section 1937. A. For the purposes of this section the persons

11

12 entitled to protection under this section are:
12

13  1. The receiver, assistant receiver, and retained counsel

13

14 responsible for the conduct of a delinquency proceeding under
14

15 Article 19 of the Insurance Code, including present and former
15

16 receivers; and
16

17  2. Their employees meaning all present and former assistant

17

18 receivers and attorneys for the receiver appointed by the Insurance
18

19 Commissioner and all persons whom the Commissioner, assistant
19

20 receiver or retained counsel have employed, or contracted with, to
20

21 assist in a delinquency proceeding under Article 19 of the Insurance
21

22 Code pursuant to Sections 1901 through 1938 of this title.
22

23 Attorneys, accountants, auditors and other professional persons or
23

24 firms, who are retained by the receiver as independent contractors
24

    Req. No. 3316                                             Page 34
1 and their employees shall not be considered employees of the
1

2 receiver for purposes of this section.
2

3   B. If any legal action is commenced against the receiver or any

3

4 employee, whether against him such person personally or in his or
4

5 her official capacity, alleging property damage, property loss,
5

6 personal injury or other civil liability caused by or resulting from
6

7 any alleged act, error or omission of the receiver or any employee
7

8 arising out of or by reason of their his or her duties or
8

9 employment, the receiver and any employee shall be indemnified from
9

10 the assets of the insurer for all expenses, attorneys' fees,
10

11 judgments, settlements, decrees or amounts due and owing or paid in
11

12 satisfaction of or incurred in the defense of such legal action
12

13 unless it is determined upon a final adjudication on the merits that
13

14 the alleged act, error or omission of the receiver or employee
14

15 giving rise to the claim did not arise out of or by reason of his
15

16 duties or employment, or was caused by intentional or willful and
16

17 wanton misconduct.
17

18  1. Attorneys' fees and any and all related expenses incurred in

18

19 defending a legal action for which immunity or indemnity is
19

20 available under this section shall be paid from the assets of the
20

21 insurer, as they are incurred, in advance of the final disposition
21

22 of such action upon receipt of an undertaking by or on behalf of the
22

23 receiver or employee to repay the attorneys' fees and expenses if it
23

24 shall ultimately be determined upon a final adjudication on the
24

    Req. No. 3316                                            Page 35
1 merits that the receiver or employee is not entitled to immunity or
1

2 indemnity under this section.
2

3   2. Any indemnification for expense payments, judgments,

3

4 settlements, decrees, attorneys' fees, surety bond premiums or other
4

5 amounts paid or to be paid from the insurer's assets pursuant to
5

6 this section shall be an administrative expense of the insurer.
6

7   3. In the event of any actual or threatened litigation against

7

8 a receiver or any employee for which immunity or indemnity may be
8

9 available under this section, a reasonable amount of funds which in
9

10 the judgment of the Insurance Commissioner may be needed to provide
10

11 immunity or indemnity shall be segregated and reserved from the
11

12 assets of the insurer as security for the payment of indemnity until
12

13 such time as all applicable statutes of limitation shall have run
13

14 and all actual or threatened actions against the receiver or any
14

15 employee have been completely and finally resolved, and all
15

16 obligations of the insurer and the Commissioner under this section
16

17 shall have been satisfied.
17

18  4. In lieu of segregation and reserving of funds, the Insurance

18

19 Commissioner shall have the discretion to obtain a surety bond or
19

20 make other arrangements which shall enable the Commissioner to fully
20

21 secure the payment of all obligations under pursuant to this
21

22 section.
22

23  C. If any legal action against an employee for which indemnity

23

24 may be available under pursuant to this section is settled prior to
24

    Req. No. 3316                Page 36
1 final adjudication on the merits, the insurer must shall pay the
1

2 settlement amount on behalf of the employee, or indemnify the
2

3 employee for the settlement amount, unless the Insurance
3

4 Commissioner determines:
4

5   1. That the claim did not arise out of or by reason of the

5

6 employee's duties or employment; or
6

7   2. That the claim was caused by the intentional or willful and

7

8 wanton misconduct of the employee.
8

9   D. In any legal action in which the receiver is a defendant,

9

10 that portion of any settlement relating to the alleged act, error or
10

11 omission of the receiver shall be subject to the approval of the
11

12 court before which the delinquency proceeding is pending. The court
12

13 shall not approve that portion of the settlement if it determines:
13

14  1. That the claim did not arise out of or by reason of the

14

15 receiver's duties or employment; or
15

16  2. That the claim was caused by the intentional or willful and

16

17 wanton misconduct of the receiver.
17

18  E. Nothing contained or implied in this section shall operate,

18

19 or be construed or applied to deprive the receiver or any employee
19

20 of any immunity, indemnity, benefits of law, rights or any defense
20

21 otherwise available.
21

22  F. 1. No legal action shall lie against the receiver or any

22

23 employee based in whole or in part on any alleged act, error or
23

24 omission which took place prior to September 1, 1992, unless suit is
24

    Req. No. 3316                                           Page 37
1 filed and valid service of process is obtained prior to September 1,
1

2 1993.
2

3   2. Subsections B, C, and D of this section shall apply to any

3

4 suit which is pending on or filed after September 1, 1992, without
4

5 regard to when the alleged act, error or omission took place.
5

6   SECTION 11. This act shall become effective November 1, 2026.

6

7

7

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    Req. No. 3316                             Page 38
Every fact on this page links to its source, starting with the official bill record.