Read the full stored bill text
Req. No. 14071 Page 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
HOUSE BILL 2931 By: Tedford
AS INTRODUCED
An Act relating to insurance; amending 36 O.S. 2021,
Section 2025, which relates to the Oklahoma Life and
Health Insurance Guaranty Association coverage;
increasing guarantee fund for annuities; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 36 O.S. 2021, Section 2025, is
amended to read as follows:
Section 2025. A. For the policies and contracts specified in
subsection B of this section, the Oklahoma Life and Health Insurance
Guaranty Association Act shall provide coverage:
1. a. To persons, who regardless of where they reside,
except for nonresident certificate holders under group
policies or contracts, are the beneficiaries,
assignees or payees, including health care providers
rendering services covered under health insurance
policies or certificates, of the persons covered under
subparagraph b of this paragraph,
Req. No. 14071 Page 2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
b. To persons who are owners of or certificate holders or
enrollees under the policies or contracts, other than
structured settlement annuities, and in each case who:
(1) are residents, or
(2) are not residents, but only under all of the
following conditions:
(a) the member insurer that issued the policies
or contracts are domiciled in this state,
(b) the states in which the persons reside have
associations similar to the Oklahoma Life
and Health Insurance Guaranty Association
created by this act, and the persons are not
eligible for coverage by an association in
any other state due to the fact that the
insurer or health maintenance organization
was not licensed in the state at the time
specified in the guaranty association law of
the state;
2. Subparagraphs a and b of paragraph 1 of this subsection
shall not apply to structured settlement annuities specified in
subsection B of this section and in the Oklahoma Life and Health
Insurance Guaranty Association Act shall, except as provided in
paragraphs 3 and 4 of this subsection, provide coverage to a person
Req. No. 14071 Page 3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
who is a payee under a structured settlement annuity or a
beneficiary of a payee if the payee is deceased, if the payee:
a. is a resident, regardless of where the contract owner
resides, or
b. is not a resident, but only under both of the
following conditions:
(1) (a) the contract owner of the structured
settlement annuity is a resident, or
(b) the contract owner of the structured
settlement annuity is not a resident but:
i. the insurer that issued the structured
settlement annuity is domiciled in this
state, and
ii. the state in which the contract owner
resides has an association similar to
the association created by the Oklahoma
Life and Health Insurance Guaranty
Association Act, and
(2) neither the payee nor beneficiary nor the
contract owner is eligible for coverage by the
association of the state in which the payee or
contract owner resides;
3. The Oklahoma Life and Health Insurance Guaranty Association
Act shall not provide coverage to a person who is a payee or
Req. No. 14071 Page 4
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
beneficiary of a contract owner resident of this state, if the payee
or beneficiary is afforded coverage by the association of another
state; and
4. The Oklahoma Life and Health Insurance Guaranty Association
Act is intended to provide coverage to a person who is a resident of
this state and in special circumstances, to a nonresident. In order
to avoid duplicate coverage, if a person who would otherwise receive
coverage under the Oklahoma Life and Health Insurance Guaranty
Association Act is provided coverage under the laws of any other
state, the person shall not be provided coverage under the Oklahoma
Life and Health Insurance Guaranty Association Act. In determining
the application of the provisions of this paragraph to situations
where a person could be covered by the association of more than one
state, whether as an owner, payee, enrollee, beneficiary or
assignee, the Oklahoma Life and Health Insurance Association Act
shall be construed in conjunction with the laws of other states to
result in coverage by only one association.
B. 1. The Oklahoma Life and Health Insurance Guaranty
Association Act shall provide coverage to the persons specified in
subsection A of this section for policies or contracts of direct,
non-group life insurance, health insurance, which for the purposes
of this act includes health maintenance organization subscriber
contracts and certificates, or annuities and supplemental policies
or contracts to any of these, and for certificates under direct
Req. No. 14071 Page 5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
group policies and contracts, except as limited by the Oklahoma Life
and Health Insurance Guaranty Association Act. Annuity contracts
and certificates under group annuity contracts include allocated
funding agreements, structured settlement annuities and any
immediate or deferred annuity contracts.
2. Except as provided in paragraph 3 of this subsection, the
Oklahoma Life and Health Insurance Guaranty Association Act shall
not provide coverage for:
a. a portion of a policy or contract not guaranteed by
the insurer, or under which the risk is borne by the
policy or contract owner,
b. a policy or contract of reinsurance, unless assumption
certificates have been issued pursuant to the
reinsurance policy or contract,
c. a portion of a policy or contract to the extent that
the rate of interest on which it is based, or the
interest rate, crediting rate or similar factor
determined by use of an index or other external
reference stated in the policy or contract employed in
calculating returns or changes in value:
(1) averaged over the period of four (4) years prior
to the date on which the Association becomes
obligated with respect to the policy or contract,
exceeds a rate of interest determined by
Req. No. 14071 Page 6
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
subtracting two (2) percentage points from
Moody's Corporate Bond Yield Average averaged for
that same four-year period or for such lesser
period if the policy or contract was issued less
than four (4) years before the Association became
obligated, and
(2) on and after the date on which the Association
becomes obligated with respect to the policy or
contract, exceeds the rate of interest determined
by subtracting three (3) percentage points from
Moody's Corporate Bond Yield Average as most
recently available,
d. a portion of a policy or contract issued to a plan or
program of an employer, association or other person to
provide life, health or annuity benefits to its
employees, members or others, to the extent that the
plan or program is self-funded or uninsured, including
but not limited to benefits payable by an employer,
association or other person under:
(1) a Multiple Employer Welfare Arrangement as
defined in 29 U.S.C. Section 1144,
(2) a minimum premium group insurance plan,
(3) a stop-loss group insurance plan, or
(4) an administrative services only contract,
Req. No. 14071 Page 7
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
e. a portion of a policy or contract to the extent that
it provides for:
(1) dividends or experience rating credits,
(2) voting rights, or
(3) payment of any fees or allowances to any person,
including the policy or contract owner, in
connection with the service to or administration
of the policy or contract,
f. a policy or contract issued in this state by a member
insurer at a time when it was not licensed or did not
have a certificate of authority to issue the policy or
contract in this state,
g. a portion of a policy or contract to the extent that
the assessments required by Section 2030 of this title
with respect to the policy or contract are preempted
by federal or state law,
h. an obligation that does not arise under the express
written terms of the policy or contract issued by the
member insurer to the enrollee, certificate holder or
contract or policy owner, including without
limitation:
(1) claims based on marketing materials,
(2) claims based on side letters, riders or other
documents that were issued by the member insurer
Req. No. 14071 Page 8
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
without meeting applicable policy or contract
form filing or approval requirements,
(3) misrepresentations of or regarding policy or
contract benefits,
(4) extra-contractual claims, or
(5) a claim for penalties or consequential or
incidental damages,
i. a contractual agreement that establishes the
obligations of the member insurer to provide a book
value accounting guaranty for defined contribution
benefit plan participants by reference to a portfolio
of assets that is owned by the benefit plan or its
trustee, which in each case is not an affiliate of the
member insurer,
j. an unallocated annuity contract,
k. a portion of a policy or contract to the extent it
provides for interest or other changes in value to be
determined by the use of an index or other external
reference stated in the policy or contract, but which
have not been credited to the policy or contract, or
as to which the policy or contract owner's rights are
subject to forfeiture, as of the date the member
insurer becomes an impaired or insolvent insurer under
the Oklahoma Life and Health Insurance Guaranty
Req. No. 14071 Page 9
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Association Act, whichever is earlier. If a policy's
or contract's interest or changes in value are
credited less frequently than annually, then for
purposes of determining the values that have been
credited and are not subject to forfeiture under this
subparagraph, the interest or change in value
determined by using the procedures defined in the
policy or contract will be credited as if the
contractual date of crediting interest or changing
values was the date of impairment or insolvency,
whichever is earlier, and will not be subject to
forfeiture, or
l. a policy or contract providing any hospital, medical,
prescription drug or other health care benefits
pursuant to Part C or Part D of Subchapter XVIII,
Chapter 7 of Title 42 of the United States Code,
commonly known as Medicare Part C or Part D, or
Subchapter XIX, Chapter 7 of Title 42 of the United
States Code or any regulations issued pursuant
thereto.
3. The exclusion from coverage in this section shall not apply
to any portion of a policy or contract, including a rider that
provides long-term care or any other health insurance benefits.
Req. No. 14071 Page 10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
C. The benefits that the Association may become obligated to
cover shall in no event exceed the lesser of:
1. The contractual obligations for which the member insurer is
liable or would have been liable if it were not an impaired or
insolvent insurer; or
2. a. with respect to any one life, regardless of the number
of policies or contracts:
(1) Three Hundred Thousand Dollars ($300,000.00) in
life insurance death benefits, but not more than
One Hundred Thousand Dollars ($100,000.00) in net
cash surrender and net cash withdrawal values for
life insurance,
(2) for health insurance benefits:
(a) One Hundred Thousand Dollars ($100,000.00)
for coverages not defined as disability
income insurance or health benefit plans or
long-term care insurance as defined in
Section 4424 of this title, including any
net cash surrender and net cash withdrawal
values,
(b) Three Hundred Thousand Dollars ($300,000.00)
for insurance providing income payments to
an insured wage earner when income is
interrupted or terminated because of
Req. No. 14071 Page 11
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
illness, sickness or accident, commonly
known as disability income insurance and
Three Hundred Thousand Dollars ($300,000.00)
for long-term care insurance as defined in
Section 4424 of this title, and
(c) Five Hundred Thousand Dollars ($500,000.00)
for health benefit plans, or
(3) Three Hundred Thousand Dollars ($300,000.00) Five
Hundred Thousand Dollars ($500,000.00) in the
present value of annuity benefits, including net
cash surrender and net cash withdrawal values, or
b. with respect to each payee of a structured settlement
annuity or beneficiary or beneficiaries of the payee
if the payee is deceased, Three Hundred Thousand
Dollars ($300,000.00) Five Hundred Thousand Dollars
($500,000.00) in present value annuity benefits, in
the aggregate, including net cash surrender and net
cash withdrawal values,
c. however, in no event shall the Association be
obligated to cover more than:
(1) an aggregate of Three Hundred Thousand Dollars
($300,000.00) Five Hundred Thousand Dollars
($500,000.00) in benefits with respect to any one
life under this subparagraph and subparagraphs a
Req. No. 14071 Page 12
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
and b of this paragraph except and with respect
to health benefit plans under division (2) of
subparagraph a of this paragraph, in which case
the aggregate liability of the Association shall
not exceed Five Hundred Thousand Dollars
($500,000.00) with respect to any one individual,
or
(2) with respect to one owner of multiple non-group
policies of life insurance, whether the policy or
contract owner is an individual, firm,
corporation or other person, and whether the
persons insured are officers, managers, employees
or other persons, more than Five Million Dollars
($5,000,000.00) in benefits, regardless of the
number of policies and contracts held by the
owner,
d. the limitations set forth in this subsection are
limitations on benefits for which the Association is
obligated before taking into account either its
subrogation and assignment rights or the extent to
which those benefits could be provided out of the
assets of the impaired or insolvent insurer
attributable to covered policies. The costs of the
obligations of the Association under the Oklahoma Life
Req. No. 14071 Page 13
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
and Health Insurance Guaranty Association Act may be
met by the use of assets attributable to covered
policies or reimbursed to the Association pursuant to
its subrogation and assignment rights,
e. for purposes of the Oklahoma Life and Health Insurance
Guaranty Association Act, benefits provided by a long-
term care rider to a life insurance policy or annuity
contract shall be considered the same type of benefits
as the base life insurance policy or annuity contract
to which it relates.
D. In performing its obligations to provide coverage under
Section 2028 of this title, the Association shall not be required to
guarantee, assume, reinsure, reissue or perform, or cause to be
guaranteed, assumed, reinsured, reissued or performed, the
contractual obligations of the insolvent or impaired insurer under a
covered policy or contract that do not materially affect the
economic values or economic benefits of the covered policy or
contract.
SECTION 2. This act shall become effective November 1, 2026.
60-2-14071 MJ 11/19/25