Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 2185 By: Paxton of the Senate
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4 and
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5 Hilbert of the House
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8 AS INTRODUCED
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9 An Act relating to mutual insurance companies;
9 stating legislative findings; prohibiting
10 modification of certain corporate structure until
10 full payment of certain ownership interests; defining
11 terms; providing for codification; and declaring an
11 emergency.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. NEW LAW A new section of law to be codified
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16 in the Oklahoma Statutes as Section 331 of Title 85A, unless there
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17 is created a duplication in numbering, reads as follows:
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18 A. 1. The Legislature finds that it is a matter of public
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19 interest that mutual insurance company policyholders are treated
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20 fairly and equitably in any transition to a mutual insurance holding
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21 company.
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22 2. The Supreme Court has determined, and the Legislature
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23 affirms, that all monies and other assets of mutual insurance
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24 companies created by statute and started with funds appropriated by
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Req. No. 3961 Page 1
1 the Legislature are held in trust for the benefit of the
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2 policyholders. A mutual insurance company created by statute and
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3 started with funds appropriated by the Legislature may never
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4 transition into a stock insurance company.
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5 B. A mutual insurance company created by statute and started
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6 with funds appropriated by the Legislature shall not transition into
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7 a mutual insurance holding company unless and until it pays all
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8 policyholders from January 1, 2000, to the present their fair and
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9 equitable ownership interest as owners and trustees of a mutual
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10 insurance company. Each policyholder of a mutual insurance company
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11 created by statute and started with funds appropriated by the
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12 Legislature from January 1, 2000, to the present shall receive the
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13 fair market value of their policy interest in a mutual insurance
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14 company.
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15 C. If a court of competent jurisdiction determines that a
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16 company created by statute and started with funds appropriated by
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17 the Legislature is in the process of demutualization, such company
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18 shall be prohibited from pursuing any means to change its corporate
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19 structure from the mutual insurance company previously authorized by
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20 the Legislature, except for the change to a mutual insurance holding
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21 company as authorized by this section.
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22 D. For purposes of this act:
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23 1. "Created by statute and started with funds appropriated by
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24 the Legislature" means an entity that began with monies appropriated
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Req. No. 3961 Page 2
1 by the Legislature and that was originated by statute of this body,
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2 such as CompSource Mutual Insurance Company;
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3 2. "Fair and equitable" means a distribution of assets that is
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4 impartial, just, and honest, without bias, discrimination, or
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5 improper advantage or self-dealing; and
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6 3. "Fair market value" means the true economic worth of an
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7 asset in an open and voluntary transaction, reflecting what a
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8 reasonable person would pay under normal market conditions.
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9 SECTION 2. It being immediately necessary for the preservation
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10 of the public peace, health or safety, an emergency is hereby
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11 declared to exist, by reason whereof this act shall take effect and
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12 be in full force from and after its passage and approval.
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14 60-2-3961 CAD 4/30/2026 8:50:09 AM
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Req. No. 3961 Page 3Every fact on this page links to its source, starting with the official bill record.