1. (a) Definitions. The following words or terms, when used in this section, shall have the following meaning, unless the context clearly indicates otherwise:

   1. (1) "Bond" means a surety bond in the penal sum as determined in accordance with (d) of this section which shall be obtained in favor of the Commissioner from authorized corporate sureties approved by the Commissioner and conditioned upon the licensee conducting his/its business in accordance with applicable law. Any surety issuing such bond shall notify the Commissioner of any reductions or cancellations in the bond of any licensee. No such bond shall be terminated unless at least thirty (30) days written notice thereof is given by the surety to the licensee and the Commissioner. All surety protection under such bond shall insure to the benefit of any party aggrieved by the acts of the licensee thereunder.
   2. (2) "Gross fee" means the total of all fees derived by offering any advice, counsel, opinion or service with respect to the benefits, advantages or disadvantages promised under any policy of insurance that could be issued or delivered in this state.
   3. (3) "Gross premium" means the total of all premiums received by any Surplus Lines Insurance Broker less those reductions permitted by 36 O.S. § 1115.
   4. (4) "Resident" means any individual or business entity that either resides in the State of Oklahoma or maintains its principal place of business in the State of Oklahoma.

2. (b) Bond required.

   1. (1) Surplus lines insurance broker. No resident shall act as a Surplus Lines Insurance Broker in this state until such person has filed with the Commissioner, and thereafter maintained in force, a bond in an amount prescribed in (d) of this section.
   2. (2) Cash in lieu of bond. In either (1) or (2) of paragraph (c) of this section, cash in lieu of a bond will be considered an acceptable substitute.

3. (c) Amount of bond. The bond required by (c) of this section shall be as follows:

   1. (1) For $1,000,000 and above gross premium or gross fees as applicable - $40,000 bond required;
   2. (2) For $500,000 to $999,999 gross premium or gross fees as applicable - $35,000 bond required;
   3. (3) For $250,000 to $499,999 gross premium or gross fees as applicable - $30,000 bond required;
   4. (4) For $100,000 to $249,999 gross premium or gross fees as applicable - $25,000 bond required;
   5. (5) For $75,000 to $99,999 gross premium or gross fees as applicable - $20,000 bond required;
   6. (6) For $50,000 to 74,999 gross premium or gross fees as applicable - $15,000 bond required;
   7. (7) For $25,000 to $49,999 gross premium or gross fees as applicable - $10,000 bond required;
   8. (8) For all gross premium or gross fees below $25,000 as applicable - $5000 bond required.

4. (d) Third party administrators. Pursuant to 36 O.S. § 1448, the amount of bond for a third party administrator must be stipulated by the Insurance Commissioner in an amount that will be sufficient to protect those with which the administrator deals and not less than ten thousand dollars. The bond required by Section 1448 shall be set by the Insurance Commissioner but shall be no less than the following amounts as reported in the annual report of the third party administrator for the immediately preceding calendar year:

   1. (1) For $1,000,000 and above in premiums collected or claims paid, whichever is higher - $40,000 bond required;
   2. (2) For $500,000 to $999,999 in premiums collected or claims paid, whichever is higher - $35,000 bond required;
   3. (3) For $250,000 to $499,999 in premiums collected or claims paid, whichever is higher - $30,000 bond required;
   4. (4) For $100,000 to $249,999 in premiums collected or claims paid, whichever is higher - $25,000 bond required;
   5. (5) For $75,000 to $99,999 in premiums collected or claims paid, whichever is higher - $20,000 bond required;
   6. (6) For $50,000 to 74,999 in premiums collected or claims paid, whichever is higher - $15,000 bond required;
   7. (7) For $49,999 or less in premiums collected or claims paid, whichever is higher - $10,000 bond required.

Amended at 15 Ok Reg 1210, eff 1-30-98 (emergency)

Amended at 15 Ok Reg 3229, eff 7-13-98

Amended at 24 Ok Reg 2217, eff 7-14-07

Amended at 25 Ok Reg 1660, eff 7-14-08

Amended at 40 Ok Reg 1628, eff 9-1-23