All Roll Calls
Yes: 229 • No: 112
OklahomaSB 1916Oklahoma 2026 Regular SessionSenate
Insurance Department; creating certain division within the Insurance Department; establishing powers for certain conservator; allowing contacts. Effective date.
Sponsored By: Aaron Reinhardt (Republican)
Signed by Governor
Senate Committee
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 1 benefits, 0 costs, 4 mixed.
New office to manage failed insurers
The law creates the Oklahoma Receivership Office inside the Insurance Department to run supervisions, conservatorships, and receiverships. The Commissioner must move all current cases into this office by January 1, 2028. The office can deposit and combine estate funds at eligible banks to earn more and run operations. These funds are not state funds and cannot be mixed with state money. A supervision or conservation stays in place until the Commissioner finds the problems are fixed or a court orders receivership. This law takes effect November 1, 2026.
Legal shields and defense costs for receivership staff
Receivers, their staff, supervisors, conservators, and hired helpers have legal immunity for acts done in their duties and are indemnified from the insurer’s assets, unless a final ruling finds the act was not job‑related or was intentional or willful and wanton misconduct. The insurer must pay defense costs as they happen if the person agrees to repay if indemnity is later denied. The Commissioner can set aside estate funds or buy a surety bond to secure these indemnity costs. Any settlement part tied to alleged acts by the receiver needs court approval and is denied if not job‑related or was intentional misconduct. Independent contractors are not treated as receiver employees under these protections, and very old suits based on acts before September 1, 1992 are barred unless filed and served by September 1, 1993. All indemnity payments, fees, and related costs count as administrative expenses of the estate.
Who gets paid first in insurer failures
The law sets ten classes for paying claims from an insolvent insurer’s estate. Class 1 covers administrative costs and professional fees; Class 2 lets guaranty associations be paid certain admin costs that help the estate, but they must return the money with investment income if later needed to pay Class 1. Class 3 covers many policy loss claims, but it excludes reinsurance, post‑cancellation obligations (except earned premium), over‑limits amounts, punitive damages unless covered, and tort or bad‑faith claims. Class 5 gives employees up to two months of wages and benefits for work within six months before liquidation, or within one year if rehabilitation came first; principal officers and directors are excluded unless approved. If no owners are eligible, leftover estate funds go to a receiver fund to run lean liquidations and meet indemnity duties. The law also defines certain financial contracts (like swaps and repos) for special handling in receivership.
Privacy and audits in insurer takeovers
The Commissioner and courts can order audits of supervisors, conservators, and receivers. Auditors can inspect records without notice, and audit costs are paid from the estate. Records held by regulators or receivers are not public, cannot be subpoenaed, and may be disclosed only in official proceedings.
Faster hiring and contracts in receiverships
As receiver, the Commissioner can hire assistant receivers and professionals like lawyers, actuaries, and accountants. The court reviews pay, and costs are paid from the insurer’s assets. When acting as receiver, conservator, or supervisor, the Commissioner can sign contracts outside state procurement rules to move faster. The Commissioner cannot appoint or contract with relatives within three degrees; any such deal is void.
Sponsors & Cosponsors
Sponsor
Aaron Reinhardt
Republican • Senate
Cosponsors
Mark Tedford
Republican • House
Roll Call Votes
House vote • 5/6/2026
THIRD READING
Yes: 52 • No: 33
House vote • 5/6/2026
REPRESENTATIVES
Yes: 57 • No: 23
House vote • 5/6/2026
THIRD READING
Yes: 46 • No: 39
House vote • 4/14/2026
DO PASS
Yes: 9 • No: 5
House vote • 4/14/2026
DO PASS
Yes: 9 • No: 5
House vote • 4/7/2026
DO PASS
Yes: 7 • No: 0
House vote • 4/7/2026
DO PASS
Yes: 7 • No: 0
Senate vote • 3/26/2026
THIRD READING
Yes: 33 • No: 7
Senate vote • 2/19/2026
Committee vote: Business & Insurance
Yes: 9 • No: 0
Actions Timeline
Approved by Governor 05/11/2026
5/12/2026SenateSent to Governor
5/6/2026SenateSigned, returned to Senate
5/6/2026HouseEnrolled, to House
5/6/2026SenateReferred for enrollment
5/6/2026SenateSigned, returned to Senate
5/6/2026HouseThird Reading, Measure passed: Ayes: 52 Nays: 33
5/6/2026HouseMotion to reconsider adopted: Ayes: 57 Nays: 23
5/6/2026HouseNotice served to reconsider vote by Representative Tedford
5/6/2026HouseThird Reading, Measure failed: Ayes: 46 Nays: 39
5/6/2026HouseGeneral Order
5/6/2026HouseCR; Do Pass Government Oversight Committee
4/14/2026HousePolicy recommendation to the Government Oversight committee; Do Pass General Government
4/7/2026HouseReferred to General Government
3/31/2026HouseSecond Reading referred to Government Oversight
3/31/2026HouseFirst Reading
3/30/2026HouseEngrossed to House
3/30/2026SenateReferred for engrossment
3/26/2026SenateMeasure passed: Ayes: 33 Nays: 7
3/26/2026SenateGeneral Order, Considered
3/26/2026SenatePlaced on General Order
2/24/2026SenateReported Do Pass Business and Insurance committee; CR filed
2/19/2026SenateCoauthored by Representative Tedford (principal House author)
2/3/2026SenateSecond Reading referred to Business and Insurance
2/3/2026SenateAuthored by Senator Reinhardt
2/2/2026Senate
Bill Text
Enrolled (final version)
5/6/2026
Floor (House)
4/18/2026
House Committee Report
4/14/2026
House Policy Committee Report
4/7/2026
Engrossed
3/30/2026
Floor (Senate)
2/23/2026
Senate Committee Report
2/19/2026
Introduced
1/15/2026
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