§36-2203. Creation of trust – Conditions – Entities insured – Law
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/ok/title-36-insurance/36-2203·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
governing reserves and surplus – Conversion of domestic stock insurers.
A. An association may create a trust to self-insure physicians, allied health care professionals or health care institutions against medical professional liability claims and related risks upon complying with the following conditions:
1. Establishment of a trust to provide coverage against medical professional liability claims and related risks;
2. Employment of appropriate professional staff and consultants for program management and purchase of such administrative services as may be required;
3. The trust investment powers and limitations shall be the same as those of any Oklahoma domestic casualty insurance company; and
4. Performance of all acts necessary or desirable to the conduct of the business of a medical professional liability insurer.
B. A trust may purchase, on behalf of the members of the organizing association, specific excess insurance, aggregate excess insurance, and reinsurance, as in the opinion of the trustee are necessary. A trust is further authorized to purchase risk
management services as may be required and pay claims that arise under any deductible provisions.
C. If the terms of the trust so authorize, the trust may insure the following entities against medical professional liability claims and related risks:
1. Organizations or associations in which physicians, allied health care professionals or health care institutions are qualified members;
2. Entities that own or operate otherwise qualified health care institutions under the Oklahoma Medical Professional Liability Trusts Act;
3. Physicians’ professional practice entities; and
4. Any person for whose acts or omissions an insured may be held legally responsible.
D. Laws of this state and the provisions of any chapters, articles or sections of Title 36 of the Oklahoma Statutes related to required amounts of reserves and surplus are declared inapplicable to a trust organized and operated under the Oklahoma Medical Professional Liability Trusts Act, except as provided in the Oklahoma Medical Professional Liability Trusts Act.
E. A licensed domestic stock insurer that prior to the effective date of this act writes physicians’, allied health care professionals’ or health care institutions’ medical professional liability insurance and is owned wholly by an association shall be entitled to convert to a trust by:
1. Filing a plan, statement of conversion and trust instrument with the Commissioner. The plan, statement of conversion and trust instrument shall list all conditions to be fulfilled by a designated date, upon which such conversion will be effective, and all base rates to be charged by the trust;
2. Approval by vote or written consent of three-fourths (3/4) of the board of directors or trustees of the insurer’s parent association;
3. Creation of a trust by the insurer’s parent association;
4. Transfer of the assets and liabilities of the insurer to the trust;
5. Upon ninety
(90)days’ prior written notice to affected policyholders, replacement of the insurer’s outstanding policies by the trust; and
6. Surrender or divesture for reasonable consideration of the insurer’s license. Added by Laws 2004, c. 368, § 60, eff. July 1, 2004.