2016 Oklahoma Statutes
Title 36. Insurance
§36-6921. Rehabilitation, liquidation or conservation - Priority of distribution.

A. A rehabilitation, liquidation or conservation of a health maintenance organization (HMO) shall be deemed to be the rehabilitation, liquidation or conservation of an insurance company and shall be conducted under the supervision of the Insurance Commissioner pursuant to the laws of this state governing the rehabilitation, liquidation or conservation of insurance companies. The Insurance Commissioner may apply for an order directing the Insurance Commissioner to rehabilitate, liquidate or conserve a health maintenance organization upon any one or more grounds set out in Articles 18 and 19 of the Insurance Code or when, in the Insurance Commissioner’s opinion, the continued operation of the health maintenance organization would be hazardous either to the enrollees or to the people of this state. Enrollees shall have the same priority in the event of liquidation or rehabilitation as the law provides to policyholders of an insurer.

B. For purpose of determining the priority of distribution of general assets, claims of enrollees and enrollees’ beneficiaries shall have the same priority as established by Article 19 of the Insurance Code for policyholders and beneficiaries of insureds of insurance companies. If an enrollee is liable to a provider for services provided pursuant to and covered by the health care plan, that liability shall have the status of an enrollee claim for distribution of general assets. A provider who is obligated by statute or agreement to hold enrollees harmless from liability for services provided pursuant to and covered by a health care plan shall have a priority of distribution of the general assets immediately following that of enrollees and enrollees’ beneficiaries as described herein, and immediately preceding the priority of distribution described in Title 36 of the Oklahoma Statutes.

Added by Laws 2003, c. 197, § 21, eff. Nov. 1, 2003.