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Oklahoma Statutes

Okla. Stat. tit. 51, § 158 (2026)

Settlement or defense of claim – Settlement payout -

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Liability insurance - Public records. A. The state or a political subdivision, after conferring with authorized legal counsel, may settle or defend against a claim or suit brought against it or its employee under The Governmental Tort Claims Act subject to any procedural requirements imposed by statute, ordinance, resolution or written policy, and may appropriate money for the payment of amounts agreed upon. When the amount of any settlement exceeds Twenty-five Thousand Dollars ($25,000.00), and any payment required by the settlement will not be paid through an applicable contract or policy of insurance, the settlement shall not be effective until approved by the district court and entered as a judgment as provided by law. B. Any settlement payout pursuant to this section may be structured in any manner as agreed to by the parties involved; provided, if the state is a party to the settlement, and the settlement provides for a structured settlement, the state may participate in the structured settlement if the state payments to the claimant or the insurance or annuity company that is the assignee of the claimant are completed within the fiscal year in which settlement is agreed to and if the parties sign a Qualified Assignment and Release Agreement that releases the state from further obligation. C. If a policy or contract of liability insurance covering the state or political subdivision or its employees is applicable, the terms of the policy govern the rights and obligations of the state or political subdivision and the insurer with respect to the investigation, settlement, payment and defense of claims or suits against the state or political subdivision or its employees covered by the policy. However, the insurer may not enter into a settlement for an amount which exceeds the insurance coverage without the approval of the governing body of the state or political subdivision or its designated representative if the state or political subdivision is insured. D. Nothing in this section shall be construed to repeal or modify Sections 361 through 365.6 and 435 of Title 62 of the

Oklahoma Statutes and it is intended that this section be construed in conformance with those sections. E. The state or a political subdivision shall not be liable for any costs, judgments or settlements paid through an applicable contract or policy of insurance but shall be entitled to set off those payments against liability arising from the same occurrence. F. The state or a political subdivision shall have the right of subrogation against the insurer issuing any applicable contractor policy of insurance to the monetary limit of said policy of insurance or contract, if judgment or settlement of any claim arising pursuant to this act results in the imposition of monetary liability upon the state or the political subdivision. G. Judgments, orders, and settlements of claims shall be open public records unless sealed by the court for good cause shown. Added by Laws 1978, c. 203, § 8, eff. July 1, 1978. Amended by Laws 1984, c. 226, § 10, eff. Oct. 1, 1985; Laws 1988, c. 241, § 6, eff. Nov. 1, 1988; Laws 1997, c. 317, § 5, emerg. eff. May 29, 1997; Laws 2006, c. 102, § 2, eff. Nov. 1, 2006; Laws 2009, c. 315, § 3, eff. Nov. 1, 2009; Laws 2010, c. 370, § 1, eff. Nov. 1, 2010.

Notes of Decisions
Cited in 7 cases, 1988–2015 · leading case: Smith v. City of Stillwater, 2014 OK 42, 328 P.3d 1192.
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Smith v. City of Stillwater, 2014 OK 42, 328 P.3d 1192. “Title 51 O.S. § 158 extends governmental accountability to all torts for which a private person or entity would be liable, subject only to the act's specific limitations and exceptions.”
Mariani v. State Ex Rel. Oklahoma State Univ., 2015 OK 13, 348 P.3d 194. · cites it 3× “The interpretation of 51 0.$.2011 §§ 158(E) & 162(D) poses a question of statutory construction.”
Crouch v. Harper Cty Cmty. Hosp., 581 F. App'x 701 (10th Cir. 2014). · cites it 2× “The portion of the OGTCA dealing with liability insurance is found at Okla. Stat. tit. 51, § 158 . This section provides that “[tjhe state or a political subdivision, after conferring with authorized legal counsel, may settle or defend against a claim or suit brought against it…”
Wilson v. Gipson Ex Rel. Gipson, 753 P.2d 1349 (Okla. 1988). “2 The court relieved the school district and insurance carrier from all liability and duty to defend pursuant to 51 O.S.1981 §§ 158(B), 161(A). 3 The parents contend that the language in the policy which states that “the company shall have the right and duty to defend any suit .”
Mariani v. State Ex Rel. Oklahoma State Univ., 2015 OK 13. · cites it 105× “TITLE 51 O.S. 2011 §§ 158 (E) and 162(D) DO NOT ABROGATE THE COLLATORAL SOURCE RULE FOR CLAIMS ARISING UNDER THE OKLAHOMA GOVERNMENTAL TORT CLAIMS ACT, 51 O.”
Brewer Ex Rel. Brewer v. Indep. Sch. Dist. 1, 848 P.2d 566 (Okla. 1993). “The School admits that it obtained liability insurance, but that the policy, in pertinent part, reads: The Company will pay on behalf of the PERSONS INSURED, subject to the limits of liability stated below, all sums which the PERSONS INSURED shall become legally obligated to pay…”
Lykins Ex Rel. Lykins v. Saint Francis Hosp., Inc., 917 P.2d 1 (Okla. 1995). “This is so because as state employees they would be immune from accountability by the clear and unambiguous provisions in 51 O.S.1991 § 158(B). 20 We hence reject the notion that the Act’s public-tort procedures apply to the parents’ claim.”
Okla. Stat. tit. 51, § 158(A): 1 case
Mariani v. State Ex Rel. Oklahoma State Univ., 2015 OK 13. “TITLE 51 O.S. 2011 §§ 158 (E) and 162(D) DO NOT ABROGATE THE COLLATORAL SOURCE RULE FOR CLAIMS ARISING UNDER THE OKLAHOMA GOVERNMENTAL TORT CLAIMS ACT, 51 O.”
Okla. Stat. tit. 51, § 158(B): 2 cases
Wilson v. Gipson Ex Rel. Gipson, 753 P.2d 1349 (Okla. 1988). “2 The court relieved the school district and insurance carrier from all liability and duty to defend pursuant to 51 O.S.1981 §§ 158(B), 161(A). 3 The parents contend that the language in the policy which states that “the company shall have the right and duty to defend any suit .”
Lykins Ex Rel. Lykins v. Saint Francis Hosp., Inc., 917 P.2d 1 (Okla. 1995). “This is so because as state employees they would be immune from accountability by the clear and unambiguous provisions in 51 O.S.1991 § 158(B). 20 We hence reject the notion that the Act’s public-tort procedures apply to the parents’ claim.”
Okla. Stat. tit. 51, § 158(C): 1 case
Mariani v. State Ex Rel. Oklahoma State Univ., 2015 OK 13. “TITLE 51 O.S. 2011 §§ 158 (E) and 162(D) DO NOT ABROGATE THE COLLATORAL SOURCE RULE FOR CLAIMS ARISING UNDER THE OKLAHOMA GOVERNMENTAL TORT CLAIMS ACT, 51 O.”
Okla. Stat. tit. 51, § 158(E): 2 cases
Mariani v. State Ex Rel. Oklahoma State Univ., 2015 OK 13, 348 P.3d 194. “The interpretation of 51 0.$.2011 §§ 158(E) & 162(D) poses a question of statutory construction.”
Mariani v. State Ex Rel. Oklahoma State Univ., 2015 OK 13. “TITLE 51 O.S. 2011 §§ 158 (E) and 162(D) DO NOT ABROGATE THE COLLATORAL SOURCE RULE FOR CLAIMS ARISING UNDER THE OKLAHOMA GOVERNMENTAL TORT CLAIMS ACT, 51 O.”
Okla. Stat. tit. 51, § 158(F): 2 cases
Mariani v. State Ex Rel. Oklahoma State Univ., 2015 OK 13, 348 P.3d 194. “The interpretation of 51 0.$.2011 §§ 158(E) & 162(D) poses a question of statutory construction.”
Mariani v. State Ex Rel. Oklahoma State Univ., 2015 OK 13. “TITLE 51 O.S. 2011 §§ 158 (E) and 162(D) DO NOT ABROGATE THE COLLATORAL SOURCE RULE FOR CLAIMS ARISING UNDER THE OKLAHOMA GOVERNMENTAL TORT CLAIMS ACT, 51 O.”
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