§ 36-1624 — Acquiring or holding real property.

Oklahoma § 36-1624

• Jurisdiction: Oklahoma
• Title 36: Insurance

Text

No insurance company, foreign, alien or domestic, doing business in Oklahoma, may acquire or hold real property therein, except as follows: 1. Such as shall be requisite for the convenient accommodation of the transaction of its own business; the amount invested in such real property shall not exceed ten percent (10%) of the investing company's admitted assets but the Insurance Commissioner may grant permission to the company to invest in real property for such purpose in such increased amount as the Insurance Commissioner may deem proper on the showing made, if upon a hearing held the Insurance Commissioner finds that the amount represented by such percentage of its admitted assets is insufficient to provide convenient accommodation for the company's business. Real estate maintained for the convenient accommodation of the transaction of its own business, permitted to be carried as an admitted asset of the company pursuant to this section shall be carried at an amount equal to its cost at the time of acquisition together with the actual cost of improvements made thereon, less encumbrances and less depreciation; provided, however, any real estate carried at fair market value as an admitted asset of the company on November 1, 1989, shall be excluded from this provision; 2. Such as shall have been mortgaged to it in good faith by way of security for loans previously contracted for monies due; 3. Such as shall have been conveyed to it in satisfaction of debts previously contracted in course of its dealings; 4. Such as shall have been purchased at sales on judgments, decrees, or mortgages obtained or made for such debts; 5. Such real property as shall have been acquired in whole or in part, in exchange for real property of approximately the same value theretofore legally acquired and held by it; 6. Real property and improvements thereon located in incorporated cities and towns and as additions thereto or real property and improvements wherever located acquired for sale or lease, if such lessee or purchaser could have legally acquired the same in the first instance, and may make improvements thereon for commercial and industrial purposes as an investment for the production of income. The phrase "commercial and industrial purposes" shall not include real property primarily intended for use or valued as agricultural, horticultural, farm, and ranch, unless adjacent to other real property the ownership of which is permitted under this section and was acquired prior to July 1, 2006. The total amount invested in such real property and improvements thereon shall not exceed the company's capital and/or surplus, or ten percent (10%) of its admitted assets whichever is the lesser; provided, however, the amount invested in any one investment shall not exceed four percent (4%) of the company's admitted assets. The admitted assets shall be determined by the company's last annual report made as of December 31, immediately preceding and which has been filed with the Insurance Commissioner as required by law, or as shown by a current financial statement on file with the Commissioner; 7. Real property acquired and held under Section 1612.1 of this title; and 8. Subject to specific limitations otherwise applicable, no more than an aggregate of thirty-five percent (35%), except as provided in paragraph 1 of subsection C of Section 1622 of this title, of the company's admitted assets may be invested in real property pursuant to this section, purchase money mortgages pursuant to Section 1623 of this title, and mortgage loans pursuant to Section 1622 of this title.

Legislative History

Added by Laws 1957, p. 290, § 1624, operative July 1, 1957. Amended by Laws 1965, c. 123, § 16; Laws 1989, c. 181, § 5, eff. Nov. 1, 1989; Laws 2006, c. 264, § 50, eff. July 1, 2006; Laws 2017, c. 287, § 4, eff. Nov. 1, 2017; Laws 2021, c. 274, § 2, emerg. eff. April 27, 2021.