HB 2929 Summary

• Amends 36 O.S. 2011, Section 1927.1 to modify the priority order for distributing claims from an insolvent insurer's estate.

• Prohibits shareholders, members, or owners from receiving distributions if their intentional wrongdoing, fraud, gross negligence, or other conduct caused or contributed to the insurer's insolvency, or if funds were collected from them through claims brought by the receiver.

• Directs any remaining funds that cannot be distributed to eligible shareholders to be placed in a fund for the receiver to use exclusively for administering liquidations of insolvent insurers and prosecuting petitions for rehabilitation or liquidation.

• Requires the receiver to obtain a promissory note or evidence of indebtedness from any insolvent insurer receiving distributed funds, treated as a Class 1 administrative expense, with good-faith collection efforts required.

• Prohibits funds distributed to the receiver from being used to pay any claims other than Class 1 expenses, and specifies the funds are not state property.

• Effective November 1, 2014.