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 Oklahoma Statutes (Last Updated: September 18, 2014)
 Title 36. INSURANCE

  § 36-640. Denial, suspension or revocation of license - Corrective action plans - Rescission or modification of suspension order.  

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  • A.  The Insurance Commissioner shall deny, suspend or revoke a MEWA's license if, after notice and opportunity for a hearing, the Commissioner finds that the MEWA:

    1.  Is insolvent;

    2.  Is using such methods and practices in the conduct of its business as to render its further transaction of business in this state hazardous or injurious to its participating employees, covered employees and dependents, or to the public;

    3.  Has failed to pay any final judgment rendered against it in a court of competent jurisdiction within sixty (60) days after the judgment became final;

    4.  Is or has been in violation of any material provisions of this act;

    5.  Is no longer actuarially sound; or

    6.  Is charging rates that are excessive, inadequate or unfairly discriminatory.

    B.  The Commissioner may deny, suspend or revoke the license of any MEWA if, after notice and opportunity for a hearing, the Commissioner determines that the MEWA:

    1.  Has violated any lawful order or rule of the Commissioner or any applicable provisions of this act;

    2.  Has refused to produce its accounts, records or files for examination under Sections 308 through 310 of Title 36 of the Oklahoma Statutes or through any of its officers has refused to give information with respect to its affairs or to perform any other legal obligation as to an examination;

    3.  Utilized persons to solicit enrollments through an unlicensed agent; or

    4.  Has violated any provision of the Unfair Claim Settlement Practices Act, Section 1221 et seq. of Title 36 of the Oklahoma Statutes.

    C.  Whenever the financial condition of the MEWA is such that, if not modified or corrected, its continued operation would result in impairment or insolvency, in addition to any provisions in this act, the Commissioner may order the MEWA to file with the Commissioner and implement a corrective action plan designed to do one or more of the following:

    1.  Reduce the total amount of present potential liability for benefits by reinsurance or other means;

    2.  Reduce the volume of new business being accepted;

    3.  Reduce the expenses of the MEWA by specified methods; or

    4.  Suspend or limit the writing of new business for a period of time.

    If the MEWA fails to submit a plan within the time specified by the Commissioner or submits a plan that is insufficient to correct the MEWA's financial condition, the Commissioner may order the MEWA to implement one or more of the corrective actions listed in this subsection.

    D.  The Commissioner shall, in the order suspending the authority of a MEWA to enroll new insureds, specify the period during which the suspension is to be in effect and the conditions, if any, that must be met prior to reinstatement of its authority to enroll new insureds.  The order of suspension is subject to rescission or modification by further order of the Commissioner before the expiration of the suspension period.  Reinstatement shall not be made unless requested in writing by the MEWA; however, the Commissioner shall not grant reinstatement if it is found that the circumstances for which suspension occurred still exist.

Added by Laws 1992, c. 374, § 8, eff. Jan. 1, 1993.