The bill amends various sections of the Oklahoma Insurance Code to improve the structure and operations of the Insurance Department, particularly in the areas of supervision and conservatorship of insurers. It establishes a new division within the Insurance Department, the Oklahoma Receivership Office, which will manage supervisions, conservatorships, and receiverships under the oversight of the Insurance Commissioner. The bill introduces new definitions, such as "consent" and "insolvency," and modifies existing ones, while also granting the Insurance Commissioner expanded powers to employ personnel, conduct audits, and manage expenses related to these processes. Additionally, it clarifies that records held by the Commissioner and associated personnel are not public records and outlines conditions for their disclosure.

Further amendments include the establishment of a structured priority for the distribution of claims from an insurer's estate during liquidation, detailing ten classes of claims and specifying exclusions for certain obligations. The bill also enhances indemnification protections for receivers and their employees, expanding coverage to contracted individuals and reserving funds for potential indemnity claims. It specifies that insurers must indemnify employees for settlement amounts following final adjudications, with court approval required for settlements involving a receiver. The act is set to take effect on November 1, 2026, and aims to streamline the management of distressed insurers while ensuring legal protections for those involved in the receivership process.

Statutes affected:
Introduced: 36-1901