1| COMMITTEE AMENDMENT |
| HOUSE OF REPRESENTATIVES |
2| State of Oklahoma |
| |
3| SPEAKER: |
| |
4| CHAIR: |
| |
5|I move to amend HB3646 |
| Of the |
6|printed Bill |
|Page Section Lines |
7| |
| Of the |
8|Engrossed Bill |
| |
9|By deleting the content of the entire measure, and by inserting in |
|lieu thereof the following language: |
10| |
| |
11| |
| |
12| |
| |
13| |
| |
14| |
| |
15| |
| |
16| |
| |
17| |
| |
18| |
| |
19| STATE OF OKLAHOMA |
| |
20| 2nd Session of the 60th Legislature (2026) |
| |
21|PROPOSED POLICY |
|COMMITTEE SUBSTITUTE |
22|FOR |
|HOUSE BILL NO. 3646 By: Stinson and Fugate |
23| |
| |
24| |
| |
Req. No. 16309 Page 1
___________________________________________________________________________
1| |
| |
2| PROPOSED POLICY COMMITTEE SUBSTITUTE |
| |
3| An Act relating to insurance; creating the Protection |
| for Oklahoma Insurance Policyholders Act of 2026; |
4| amending 36 O.S. 2021, Section 1250.3, which relates |
| to acts that constitute unfair claims settlement |
5| practices; prohibiting the use of Artificial |
| Intelligence (AI) by an insurer to deny claims |
6| covered by the Unfair Claims Settlement Practices |
| Act; amending 36 O.S. 2021, Section 1435.3, as |
7| amended by Section 2, Chapter 225, O.S.L. 2022 (36 |
| O.S. Supp. 2025, Section 1435.3), which relates to |
8| agency of insurance producer; requiring insurance |
| producers to exercise care owed as a fiduciary; |
9| establishing no civil liability unless proven by a |
| preponderance of the evidence that the fiduciary |
10| relationship has been violated; clarifying provisions |
| do not limit or release insurance producer from |
11| liability for certain negligence; amending 36 O.S. |
| 2021, Section 982, which relates to definitions used |
12| in the Property and Casualty Competitive Loss Cost |
| Rating Act; defining the term Intervenor; amending 36 |
13| O.S. 2021, Section 987, which relates to rate |
| filings; requiring hearing before rate change; |
14| permitting the Insurance Commissioner to declare a |
| hearing not necessary if certain objection is not |
15| filed; requiring insurers to specify loss expenses |
| incurred on in this state; establishing filer has |
16| burden of proving a rate change is justified; |
| directing the Commissioner to notify the Attorney |
17| General and post information about application for a |
| rate change; permitting the persons or policyholders |
18| to intervene in hearing; providing hearing |
| procedures; permitting declaratory judgement action; |
19| permitting discovery; amending 36 O.S. 2021, Section |
| 902.2, which relates to factors for review of filing; |
20| directing Insurance Commissioner to consider certain |
| factors within state; amending 36 O.S. 2021, Section |
21| 907.1, which relates to monitoring and examination of |
| rates; directing the Commissioner to employ or retain |
22| services of independent actuary or actuaries; |
| amending 36 O.S. 2021, Section 1126, which relates to |
23| public access to documents and reports; establishing |
| certain documents, materials, and other information |
24| as being open to the public and admissible as |
| evidence in any private civil action; amending 36 |
Req. No. 16309 Page 2
___________________________________________________________________________
1| O.S. 2021, Section 3617, which relates to policy |
| restrictions voided; modifying statute of |
2| limitations; amending 36 O.S. 2021, Section 1250.7, |
| which relates to property and casualty insurer denial |
3| or acceptance of claim; modifying required notice to |
| be given to first party claimants; prohibiting |
4| insurers from limiting statute of limitations to less |
| than required amount; amending 36 O.S. 2021, Section |
5| 1250.14, which relates to violations of the Unfair |
| Claims Settlement Practices Act; establishing |
6| insurers may be liable to a first-party insured in |
| addition to civil penalty enforceable by the |
7| Insurance Commissioner; providing for |
| noncodification; and providing an effective date. |
8| |
| |
9| |
| |
10|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
| |
11| SECTION 1. NEW LAW A new section of law not to be |
| |
12|codified in the Oklahoma Statutes reads as follows: |
| |
13| This act shall be known and may be cited as the "Protection for |
| |
14|Oklahoma Insurance Policyholders Act of 2026". |
| |
15| SECTION 2. AMENDATORY 36 O.S. 2021, Section 1250.3, is |
| |
16|amended to read as follows: |
| |
17| Section 1250.3. A. The provisions of the Unfair Claims |
| |
18|Settlement Practices Act shall apply to all claims arising under an |
| |
19|insurance policy or insurance contract issued by any insurer. |
| |
20| B. It is an unfair claim settlement practice for any insurer to |
| |
21|commit any act set out in Section 1250.5 of this title, or to commit |
| |
22|a violation of any other provision of the Unfair Claims Settlement |
| |
23|Practices Act, if: |
| |
24| |
| |
Req. No. 16309 Page 3
___________________________________________________________________________
1| 1. It is committed flagrantly and in conscious disregard of |
| |
2|this act or any rules promulgated hereunder; or |
| |
3| 2. It has been committed with such frequency as to indicate a |
| |
4|general business practice to engage in that type of conduct. |
| |
5| C. Artificial Intelligence (AI) shall not be used by any |
| |
6|insurer to deny any claim covered by the Unfair Claims Settlement |
| |
7|Practices Act. This prohibition shall include any type or function |
| |
8|of AI, including Artificial Narrow Intelligence, Artificial General |
| |
9|Intelligence, Reactive Machines, and Limited Memory AI. |
| |
10| SECTION 3. AMENDATORY 36 O.S. 2021, Section 1435.3, as |
| |
11|amended by Section 2, Chapter 225, O.S.L. 2022 (36 O.S. Supp. 2025, |
| |
12|Section 1435.3), is amended to read as follows: |
| |
13| Section 1435.3. A. Every insurance producer, as defined |
| |
14|pursuant to paragraph 7 of Section 1435.2 of this title, or limited |
| |
15|lines producer who solicits or negotiates an application for |
| |
16|insurance of any kind shall, subject to subsections D, E, and F of |
| |
17|this section, in any controversy between the insured or the |
| |
18|insured's beneficiary and the insurer, be regarded as representing |
| |
19|the insurer and not the insured or the insured's beneficiary. This |
| |
20|provision shall not affect the apparent authority of an insurance |
| |
21|producer. |
| |
22| B. Every surplus lines insurance broker who solicits an |
| |
23|application for insurance of any kind shall, in any controversy |
| |
24|between the insured or the insured's beneficiary and the insurer |
| |
Req. No. 16309 Page 4
___________________________________________________________________________
1|issuing any policy upon such application, be regarded as |
| |
2|representing the insured or the insured's beneficiary and not the |
| |
3|insurer. Any company which directly or through its agents delivers |
| |
4|in this state to any insurance broker, a policy of insurance |
| |
5|pursuant to the application or request of such broker, acting for an |
| |
6|insured other than himself or herself, shall be deemed to have |
| |
7|authorized such broker to receive on its behalf, payment of any |
| |
8|premium which is due on such policy of insurance at the time of its |
| |
9|issuance or delivery. |
| |
10| C. Every licensed insurance producer shall be entitled to |
| |
11|commissions on all premiums collected for group insurance policies |
| |
12|negotiated by the insurance producer on behalf of an insurer and an |
| |
13|insurer shall be required to pay such commissions to the insurance |
| |
14|producer, except entitlement to commissions shall automatically |
| |
15|terminate without notice, effective on the date of the occurrence of |
| |
16|any of the following events: |
| |
17| 1. The insurance producer's license to engage in accident and |
| |
18|health insurance business is terminated or revoked by this state or |
| |
19|any other public authority for cause. As used in this paragraph, |
| |
20|"cause" shall be defined as perpetration by the insurance producer |
| |
21|of fraud or embezzlement; |
| |
22| 2. Material breach of the insurance producer's contract with |
| |
23|the account or insurer, excluding production requirements; |
| |
24| |
| |
Req. No. 16309 Page 5
___________________________________________________________________________
1| 3. Termination of the insurance producer's "Agent of Record" |
| |
2|relationship with the employer or account; or |
| |
3| 4. Death of the insurance producer, unless the contract between |
| |
4|the insurer states otherwise or the right to the commission has |
| |
5|vested. |
| |
6|Recovery of such commissions shall be through civil action. In any |
| |
7|action brought pursuant to this subsection, the court may award |
| |
8|reasonable attorney fees to the prevailing party. |
| |
9| D. An insurance producer shall exercise care owed as a |
| |
10|fiduciary in renewing, procuring, binding, or placing the coverage |
| |
11|requested by the insured or proposed insured. |
| |
12| E. No cause of action brought by any person or entity against |
| |
13|any insurance producer concerning the sale, placement, procurement, |
| |
14|renewal, binding, cancellation of, or failure to procure any policy |
| |
15|of insurance shall subject the insurance producer to civil liability |
| |
16|unless it is proved by a preponderance of the evidence that the |
| |
17|fiduciary relationship between a policyholder and producer has been |
| |
18|violated. |
| |
19| F. While limiting the scope of liability of an insurance |
| |
20|producer under standards governing the conduct of a fiduciary or a |
| |
21|fiduciary relationship, the provisions of this Section do not limit |
| |
22|or release an insurance producer from liability for negligence |
| |
23|concerning the sale, placement, procurement, renewal, binding, |
| |
24|cancellation of, or failure to procure any policy of insurance. |
| |
Req. No. 16309 Page 6
___________________________________________________________________________
1| SECTION 4. AMENDATORY 36 O.S. 2021, Section 982, is |
| |
2|amended to read as follows: |
| |
3| Section 982. Definitions. |
| |
4| As used in the Property and Casualty Competitive Loss Cost |
| |
5|Rating Act: |
| |
6| 1. "Accepted actuarial standards" means the standards adopted |
| |
7|by the Casualty Actuarial Society Statement of Principles regarding |
| |
8|property and casualty ratemaking or the Standards of Practice |
| |
9|adopted by the Actuarial Standards Board; |
| |
10| 2. "Advisory organization" means any corporation, |
| |
11|unincorporated association, partnership or person, whether located |
| |
12|inside or outside this state, that is licensed in accordance with |
| |
13|Section 1140 of this title and which assists insurers in |
| |
14|ratemaking-related activities such as enumerated in Section 1142 of |
| |
15|this title; |
| |
16| 3. "Classification system" or "classification" means the |
| |
17|process of grouping risks with similar risk characteristics so that |
| |
18|differences in costs may be recognized; |
| |
19| 4. "Commercial risk" means any kind of risk that is not a |
| |
20|personal risk; |
| |
21| 5. "Commissioner" means the Commissioner of Insurance of this |
| |
22|state; |
| |
23| 6. "Competitive market" means a market which has not been found |
| |
24|to be noncompetitive pursuant to Section 984 of this title; |
| |
Req. No. 16309 Page 7
___________________________________________________________________________
1| 7. "Developed losses" means losses, including loss adjustment |
| |
2|expenses, adjusted using accepted actuarial standards, to eliminate |
| |
3|the effect of differences between current payment or reserve |
| |
4|estimates and those which are anticipated to provide actual ultimate |
| |
5|loss, including loss adjustment expense payments; |
| |
6| 8. "Expenses" means that portion of a rate attributable to |
| |
7|acquisition, field supervision, collection expenses, general |
| |
8|expenses, taxes, licenses and fees; |
| |
9| 9. "Experience rating" means a rating procedure utilizing past |
| |
10|insurance experience of the individual policyholder to forecast |
| |
11|future losses by measuring the policyholder's loss experience |
| |
12|against the loss experience of policyholders in the same |
| |
13|classification to produce a prospective premium credit, debit or |
| |
14|unity modification; |
| |
15| 10. "Intervenor" means the Attorney General or any consumer or |
| |
16|policyholder who has an interest in or is aggrieved by a filing to |
| |
17|change insurance rates in this state; |
| |
18| 11. "Joint underwriting" means a voluntary arrangement |
| |
19|established to provide insurance coverage for a risk pursuant to |
| |
20|which two or more insurers jointly contract with the insured at a |
| |
21|price and under policy terms agreed upon between the insurers; |
| |
22| 11. 12. "Loss adjustment expense" means the expenses incurred |
| |
23|by the insurer in the course of settling claims; |
| |
24| |
| |
Req. No. 16309 Page 8
___________________________________________________________________________
1| 12. 13. "Market" means the statewide interaction between buyers |
| |
2|and sellers of identical or readily substitutable products that |
| |
3|provide insurance protection of identifiable perils to buyers; |
| |
4| 13. 14. "Mass marketed plan" means a method of selling |
| |
5|property-liability insurance wherein the insurance is offered to |
| |
6|employees of particular employers or to members of particular |
| |
7|associations or organizations or to persons grouped in other ways, |
| |
8|and the employer or association or other organization has agreed to, |
| |
9|or otherwise affiliated itself with, the sale of such insurance to |
| |
10|its employees or members; |
| |
11| 14. 15. "Noncompetitive market" means a market for which there |
| |
12|is a ruling in effect pursuant to Section 984 of this title that a |
| |
13|reasonable degree of competition does not exist; |
| |
14| 15. 16. "Personal risk" means homeowners, tenants, private |
| |
15|passenger nonfleet automobiles, manufactured homes and other |
| |
16|property and casualty insurance for personal, family or household |
| |
17|needs, including any property and casualty insurance that is |
| |
18|otherwise intended for noncommercial coverage; |
| |
19| 16. 17. "Pool" means a voluntary arrangement, established on an |
| |
20|ongoing basis, pursuant to which two or more insurers participate in |
| |
21|the sharing of risks on a predetermined basis. The pool may operate |
| |
22|through an association, syndicate or other pooling agreement; |
| |
23| 17. 18. "Prospective loss costs" means historical aggregate |
| |
24|losses and may include loss adjustment expenses, including all |
| |
Req. No. 16309 Page 9
___________________________________________________________________________
1|assessments that are loss based, projected through development to |
| |
2|their ultimate value and through trending to a future point in time; |
| |
3| 18. 19. "Pure premium rate" means that portion of the rate |
| |
4|which represents the loss costs per unit of exposure including loss |
| |
5|adjustment expense; |
| |
6| 19. 20. "Rate" or "rates" means that cost of insurance per |
| |
7|exposure unit whether expressed as a single number or as a |
| |
8|prospective loss cost with an adjustment to account for the |
| |
9|treatment of expenses, profit, and individual insurer variation in |
| |
10|loss experience, prior to any application of individual risk |
| |
11|variations based on loss or expense considerations, and does not |
| |
12|include minimum premium; |
| |
13| 20. 21. "Residual market mechanism" means an arrangement, |
| |
14|either voluntary or mandated by law, involving participation by |
| |
15|insurers in the equitable apportionment among them of insurance |
| |
16|which may be afforded applicants who are unable to obtain insurance |
| |
17|through ordinary methods; |
| |
18| 21. 22. "Special assessments" means guaranty fund assessments, |
| |
19|Special Indemnity Fund assessments, Vocational Rehabilitation Fund |
| |
20|assessments, and other similar assessments. Special assessments |
| |
21|shall not be considered as either expenses or losses; |
| |
22| 22. 23. "Statistical plan" means the plan, system or |
| |
23|arrangement used in collecting data; |
| |
24| |
| |
Req. No. 16309 Page 10
___________________________________________________________________________
1| 23. 24. "Supplementary rating information" means any manual or |
| |
2|plan of rates, classification, rating schedule, minimum premium, |
| |
3|policy fee rating rule and any other information needed to determine |
| |
4|the applicable premium in effect or to be in effect. This includes, |
| |
5|rating plans, territory codes and descriptions and rules which |
| |
6|include factors or relativities such as increased limits factors, |
| |
7|deductible discounts or relativities, classification relativities or |
| |
8|similar factors used to determine the rate in effect or to be in |
| |
9|effect; |
| |
10| 24. 25. "Supporting information" means the experience and |
| |
11|judgment of the filer and the experience or data of other insurers |
| |
12|or advisory organizations relied upon by the filer, the |
| |
13|interpretation of any other data relied upon by the filer, |
| |
14|descriptions of methods used in making the rates and any other |
| |
15|information required by the Commissioner to be filed; and |
| |
16| 25. 26. "Trending" means any procedure for projecting losses to |
| |
17|the average date of loss, or premiums or exposures to the average |
| |
18|date of writing, for the period during which the policies are to be |
| |
19|effective. |
| |
20| SECTION 5. AMENDATORY 36 O.S. 2021, Section 987, is |
| |
21|amended to read as follows: |
| |
22| Section 987. Rate Filings. |
| |
23| A. In a competitive market, every insurer shall file with the |
| |
24|Commissioner all rates and supplementary rate information to be used |
| |
Req. No. 16309 Page 11
___________________________________________________________________________
1|in this state no later than thirty (30) days after the effective |
| |
2|date; provided, that the rates and supplementary rate information |
| |
3|need not be filed for commercial risks, which by general custom are |
| |
4|not written according to manual rules or rating plans. The |
| |
5|application for a rate change shall not be approved until a hearing, |
| |
6|as provided for by subsections I and J of this section, is held to |
| |
7|determine the necessity of the rate change. The Commissioner may |
| |
8|declare a hearing is not necessary if the Attorney General or an |
| |
9|intervenor does not file an objection to the rate filing within |
| |
10|thirty (30) days of the date of filing and notice to the Attorney |
| |
11|General and the public as required by this act. |
| |
12| B. In a noncompetitive market, every insurer shall file with |
| |
13|the Commissioner all rates, supplementary rate information and |
| |
14|supporting information at least thirty (30) days before the proposed |
| |
15|effective date. The Commissioner may give written notice, within |
| |
16|thirty (30) days of receipt of the filing, that the Commissioner |
| |
17|needs additional time, not to exceed thirty (30) days from the date |
| |
18|of the notice to consider the filing. Upon written application of |
| |
19|the insurer, the Commissioner may authorize rates to be effective |
| |
20|before the expiration of the waiting period or an extension thereof. |
| |
21| A filing shall be deemed to meet the requirements of the Property |
| |
22|and Casualty Competitive Loss Cost Rating Act and to become |
| |
23|effective unless disapproved pursuant to this title by the |
| |
24| |
| |
Req. No. 16309 Page 12
___________________________________________________________________________
1|Commissioner before the expiration of the waiting period or an |
| |
2|extension thereof. |
| |
3| In a noncompetitive market, the filing shall be deemed in |
| |
4|compliance with the filing provision of this section unless the |
| |
5|Commissioner informs the insurer within ten (10) days after receipt |
| |
6|of the filings as to what supplementary rate information or |
| |
7|supporting information is required to complete the filing. |
| |
8| C. Every authorized insurer shall file with the Commissioner, |
| |
9|except as to rates for those lines of insurance exempted from the |
| |
10|provisions of the Property and Casualty Competitive Loss Cost Rating |
| |
11|Act by the Commissioner under subsections E and F of this section |
| |
12|and except for those risks designated as special risks under Section |
| |
13|997 of this title, all rates, supplementary rate information and any |
| |
14|changes and amendments which it proposes to use. An insurer shall |
| |
15|specify loss expenses incurred only in this state. An insurer may |
| |
16|file its rates by either filing its final rates or by filing a |
| |
17|multiplier and, if applicable, an expense constant adjustment to be |
| |
18|applied to prospective loss costs that have been filed by an |
| |
19|advisory organization as permitted by this title. Such loss cost |
| |
20|multiplier filing and expense constant filings made by insurers |
| |
21|shall remain in effect until amended or withdrawn by the insurer. |
| |
22|Every filing shall state the effective date. |
| |
23| D. Under rules as may be adopted, the Commissioner may, by |
| |
24|written order, suspend or modify the requirement of filing as to any |
| |
Req. No. 16309 Page 13
___________________________________________________________________________
1|kind of insurance, subdivision or combination thereof, or as to |
| |
2|classes of risks. |
| |
3| E. Notwithstanding any other provision of the Property and |
| |
4|Casualty Competitive Loss Cost Rating Act, upon the written consent |
| |
5|of the insured in a separate written document, a rate in excess of |
| |
6|that determined in accordance with the other provisions of the |
| |
7|Property and Casualty Competitive Loss Cost Rating Act may be used |
| |
8|on a specific risk. |
| |
9| F. A filing and any supporting information required to be filed |
| |
10|shall be open to public inspection once the filing becomes effective |
| |
11|except information marked confidential, trade secret, or proprietary |
| |
12|by the insurer or filer and except the filings of an advisory |
| |
13|organization which shall be open to public inspection upon the |
| |
14|received date of the rate, loss cost, or manual rule change. The |
| |
15|insurer or filer shall have the burden of asserting to the |
| |
16|Commissioner that a filing and supporting information are |
| |
17|confidential, upon the request of the Commissioner. The |
| |
18|Commissioner may disapprove of the insurer's request for |
| |
19|confidential filing status. |
| |
20| G. Notwithstanding any other provision of the Property and |
| |
21|Casualty Competitive Loss Cost Rating Act, the filer in either a |
| |
22|competitive or noncompetitive market shall have the burden of |
| |
23|proving that the rate change is justified and is in compliance with |
| |
24| |
| |
Req. No. 16309 Page 14
___________________________________________________________________________
1|Oklahoma's Insurance Statutes. The Commissioner shall actuarily |
| |
2|evaluate the rate change. |
| |
3| H. The Commissioner shall notify the Attorney General and post |
| |
4|on the official Website of the Oklahoma Insurance Department |
| |
5|information about any application by an insurer for a rate change. |
| |
6| I. Any person or policyholder aggrieved or affected with |
| |
7|respect to a rate filing shall be allowed to intervene and |
| |
8|participate in any hearing called by the Commissioner. The |
| |
9|intervenor shall be allowed to appear in person or by counsel. |
| |
10| J. At a hearing with respect to a rate filing, the Attorney |
| |
11|General or any intervenor shall be allowed to obtain sworn testimony |
| |
12|from a representative or representatives of the insurer, including |
| |
13|any actuary submitting a report in the rate filing. The Attorney |
| |
14|General or intervenor as provided for in subsection C shall have the |
| |
15|right to subpoena witnesses for such hearing. In the event an |
| |
16|intervenor's effort result in a substantial reduction in the |
| |
17|proposed insurance rate increase, the intervenor shall be awarded |
| |
18|costs and attorney's fees to be paid by the insurer. Reasonable |
| |
19|advocacy and witness fees and expenses may be awarded to any person |
| |
20|who demonstrates that the person represents the interests of |
| |
21|consumers, and has made a substantial contribution to the adoption |
| |
22|of any order, regulation, or decision be the Commissioner or court. |
| |
23|Where such advocacy occurs in response to a rate change filing, the |
| |
24|award shall be paid by the filer. If any party in interest or |
| |
Req. No. 16309 Page 15
___________________________________________________________________________
1|intervenor is aggrieved by a district court order, the order may be |
| |
2|appealed to the Oklahoma Supreme Court as provided by law. The |
| |
3|rules of evidence prescribed by the Oklahoma Administrative |
| |
4|Procedures Act shall be observed at all hearings. |
| |
5| K. Within one hundred and eighty (180) days after the filing of |
| |
6|a rate change, a policyholder of the insurer making the rate change |
| |
7|filing may file a Declaratory Judgment action pursuant to Section |
| |
8|1651 of Title 13 of the Oklahoma Statutes in the District Court of |
| |
9|Oklahoma County to determine the necessity and appropriateness of |
| |
10|the rate change. The policyholder shall be permitted to conduct |
| |
11|discover pursuant to the Oklahoma Discovery Code, sections 3224 |
| |
12|through 3237 of tile 12 of the Oklahoma Statutes. |
| |
13| SECTION 6. AMENDATORY 36 O.S. 2021, Section 902.2, is |
| |
14|amended to read as follows: |
| |
15| Section 902.2. A. The Insurance Commissioner when reviewing a |
| |
16|filing shall give due consideration to the following when, in its |
| |
17|discretion, it determines that such factor or factors are |
| |
18|applicable: |
| |
19| 1. Past loss experience within and outside this state; |
| |
20| 2. Prospective loss experience within and outside this state; |
| |
21| 3. Physical hazards insured; |
| |
22| 4. Safety and loss prevention programs; |
| |
23| 5. Underwriting practices and judgment; |
| |
24| 6. Catastrophe hazards; |
| |
Req. No. 16309 Page 16
___________________________________________________________________________
1| 7. Reasonable underwriting profit and contingencies; |
| |
2| 8. Dividends, savings or unabsorbed premium deposits allowed or |
| |
3|returned to policyholders; |
| |
4| 9. Past expenses within and outside this state; |
| |
5| 10. Prospective expenses within and outside this state; |
| |
6| 11. Existence of classification rates for a given risk; |
| |
7| 12. Investment income within and outside this state; |
| |
8| 13. Rarity or peculiarity of the risks within and outside this |
| |
9|state; |
| |
10| 14. In the case of workers' compensation rates, differences in |
| |
11|the hazard levels of different geographical regions of the state; |
| |
12| 15. All other relevant factors within and outside this state; |
| |
13|and |
| |
14| 16. Whether existing rates continue to meet the standards of |
| |
15|this article. |
| |
16| B. The Commissioner shall determine the weight to be accorded |
| |
17|each of the factors contained in subsection A of this section. |
| |
18| C. Past or prospective expenses within or outside this state |
| |
19|pursuant to paragraphs 9 and 10 of subsection A of this section |
| |
20|shall not include prohibited expenses for advertising or prohibited |
| |
21|expenses for membership in organizations. |
| |
22| For the purpose of this subsection: |
| |
23| 1. "Prohibited expenses for advertising" means the cost of |
| |
24|advertising in any media the purpose of which is to influence |
| |
Req. No. 16309 Page 17
___________________________________________________________________________
1|legislation or to advocate support for or opposition to a candidate |
| |
2|for public office; |
| |
3| 2. "Prohibited expenses for advertising" shall not mean: |
| |
4| a. any communication to customers and the public of |
| |
5| information regarding an insurer's insurance products, |
| |
6| b. any communication to customers and the public of |
| |
7| safety, safety education or loss prevention |
| |
8| information, |
| |
9| c. periodic publications or reports to stockholders or |
| |
10| members required by the certificate or bylaws of the |
| |
11| insurer, |
| |
12| d. any communication with customers and the public which |
| |
13| provides instruction in the use of the insurer's |
| |
14| products and services, or |
| |
15| e. any communication with customers and the public for |
| |
16| giving notice or information required by law or |
| |
17| otherwise necessary; |
| |
18| 3. "Prohibited expenses for membership" means the cost of |
| |
19|membership in any organization which conducts substantial efforts, |
| |
20|including but not limited to prohibited expenses for advertising, |
| |
21|the purpose of which is to influence legislation or to advocate |
| |
22|support for or opposition to a candidate for public office; and |
| |
23| 4. "Prohibited expenses for membership" shall not mean the cost |
| |
24|of membership in advisory organizations or other organizations the |
| |
Req. No. 16309 Page 18
___________________________________________________________________________
1|primary purpose of which is to provide statistical information on |
| |
2|losses. |
| |
3| SECTION 7. AMENDATORY 36 O.S. 2021, Section 907.1, is |
| |
4|amended to read as follows: |
| |
5| Section 907.1. A. The Insurance Commissioner shall monitor and |
| |
6|examine the adequacy of rates of any insurer and advisory |
| |
7|organization in this state and the filing of any requested rate |
| |
8|change. In so doing, the Commissioner shall: |
| |
9| 1. Utilize existing relevant information, analytical systems |
| |
10|and other sources; or and
1| C. The Commissioner shall conduct such monitoring and |
| |
2|examination required pursuant to this section within the Insurance |
| |
3|Department, at the place of business of such insurers and advisory |
| |
4|organizations, in cooperation with other state insurance |
| |
5|departments, through outside contractors or in any other appropriate |
| |
6|manner. |
| |
7| D. The cost of such examination and monitoring shall be |
| |
8|assessed against insurers and advisory organizations on an equitable |
| |
9|and practical basis established, after hearing, in a rule |
| |
10|promulgated by the Commissioner. |
| |
11| E. The monitoring and examinations required pursuant to the |
| |
12|provisions of this section, shall be conducted in a reasonably |
| |
13|economical manner. |
| |
14| SECTION 8. AMENDATORY 36 O.S. 2021, Section 1126, is |
| |
15|amended to read as follows: |
| |
16| Section 1126. A. The Statement of Actuarial Opinion shall be |
| |
17|provided with the annual statement in accordance with the |
| |
18|appropriate National Associations of Insurance Commissioners |
| |
19|Property and Casualty Annual Statement Instructions and shall be |
| |
20|treated as a public document. |
| |
21| B. 1. Documents, materials or other information in the |
| |
22|possession or control of the Insurance Department that are |
| |
23|considered an actuarial report, work papers or actuarial opinion |
| |
24|summary provided in support of the opinion, and any other material |
| |
Req. No. 16309 Page 20
___________________________________________________________________________
1|provided by the company to the Insurance Commissioner in connection |
| |
2|with the actuarial report, work papers or actuarial opinion summary, |
| |
3|and any work papers used by the Commissioner or any other person in |
| |
4|the analysis of the actuarial report, work papers, other material or |
| |
5|actuarial opinion summary provided in support of the opinion, shall |
| |
6|be confidential by law and privileged open to the public, shall not |
| |
7|be subject to the Oklahoma Open Records Act, shall not be subject to |
| |
8|subpoena, and shall not be subject to discovery or and admissible in |
| |
9|evidence in any private civil action. The confidentiality and |
| |
10|protection from discovery by subpoena provided in this paragraph |
| |
11|shall not be construed to be extended to identical, similar or other |
| |
12|related documents or information or to the work papers that are not |
| |
13|deemed to be in the possession, custody or control of the |
| |
14|Commissioner. |
| |
15|
1| C. Neither the Commissioner nor any person who received |
| |
2|documents, materials or other information while acting under the |
| |
3|authority of the Commissioner shall be permitted or required to |
| |
4|testify in any private civil action concerning any confidential |
| |
5|documents, materials or information subject to subsection B of this |
| |
6|section. |
| |
7| D. In order to assist in the performance of the Commissioner's |
| |
8|duties, the Commissioner: |
| |
9| 1. May share documents, materials or other information, |
| |
10|including the confidential and privileged documents, materials or |
| |
11|information subject to subsection B of this section with other |
| |
12|state, federal and international regulatory agencies, with the |
| |
13|National Association of Insurance Commissioners and its affiliates |
| |
14|and subsidiaries, and with state, federal and international law |
| |
15|enforcement authorities; provided, that the recipient agrees to |
| |
16|maintain the confidentiality and privileged status of the document, |
| |
17|material or other information and has the legal authority to |
| |
18|maintain confidentiality; |
| |
19| 2. May receive documents, materials or information, including |
| |
20|otherwise confidential and privileged documents, materials or |
| |
21|information, from the National Association of Insurance |
| |
22|Commissioners and its affiliates and subsidiaries, and from |
| |
23|regulatory and law enforcement officials of other foreign or |
| |
24|domestic jurisdictions, and shall maintain as confidential or |
| |
Req. No. 16309 Page 22
___________________________________________________________________________
1|privileged any document, material or information received with |
| |
2|notice or the understanding that it is confidential or privileged |
| |
3|under the laws of the jurisdiction that is the source of the |
| |
4|document, material or information; and |
| |
5| 3. May enter into agreements governing sharing and use of |
| |
6|information consistent with subsections B through D of this section. |
| |
7| E. No waiver of any applicable privilege or claim of |
| |
8|confidentiality in the documents, materials or information shall |
| |
9|occur as a result of disclosure to the Commissioner under this |
| |
10|section or as a result of sharing as authorized in subsection D of |
| |
11|this section unless the documents, materials, or information are |
| |
12|designated as open to the public consistent with subsections B |
| |
13|through D of this section. |
| |
14| SECTION 9. AMENDATORY 36 O.S. 2021, Section 3617, is |
| |
15|amended to read as follows: |
| |
16| Section 3617. No policy delivered or issued for delivery in |
| |
17|Oklahoma and covering a subject of insurance resident, located, or |
| |
18|to be performed in Oklahoma, shall contain any condition, |
| |
19|stipulation or agreement (1) requiring such policy to be construed |
| |
20|according to the laws of any other state or country, except as |
| |
21|necessary to meet the requirements of the motor vehicle financial |
| |
22|responsibility laws or compulsory disability benefit laws of such |
| |
23|other state or country, or (2) preventing the bringing of an action |
| |
24|against any such insurer for more than six (6) months after the |
| |
Req. No. 16309 Page 23
___________________________________________________________________________
1|cause of action accrues, or (3) limiting the time within which an |
| |
2|action may be brought to a period of less than two (2) years from |
| |
3|the time the cause of action accrues in connection with all |
| |
4|insurances other than property and marine and transportation |
| |
5|insurances; in property and marine and transportation policies such |
| |
6|time shall not be limited to less than one (1) year from the date of |
| |
7|occurrence of the event resulting in the loss the limitations of |
| |
8|actions as provided by Section 95 of Title 12 of the Oklahoma |
| |
9|Statutes. Any such condition, stipulation or agreement shall be |
| |
10|void, but such voidance shall not affect the validity of the other |
| |
11|provisions of the policy. |
| |
12| SECTION 10. AMENDATORY 36 O.S. 2021, Section 1250.7, is |
| |
13|amended to read as follows: |
| |
14| Section 1250.7. A. Within sixty (60) days after receipt by a |
| |
15|property and casualty insurer of properly executed proofs of loss, |
| |
16|the first party claimant shall be advised of the acceptance or |
| |
17|denial of the claim by the insurer, or if further investigation is |
| |
18|necessary. No property and casualty insurer shall deny a claim |
| |
19|because of a specific policy provision, condition, or exclusion |
| |
20|unless reference to such provision, condition, or exclusion is |
| |
21|included in the denial. A denial shall be given to any claimant in |
| |
22|writing, and the claim file of the property and casualty insurer |
| |
23|shall contain a copy of the denial. If there is a reasonable basis |
| |
24|supported by specific information available for review by the |
| |
Req. No. 16309 Page 24
___________________________________________________________________________
1|Commissioner that the first party claimant has fraudulently caused |
| |
2|or contributed to the loss, a property and casualty insurer shall be |
| |
3|relieved from the requirements of this subsection. In the event of |
| |
4|a weather-related catastrophe or a major natural disaster, as |
| |
5|declared by the Governor, the Insurance Commissioner may extend the |
| |
6|deadline imposed under this subsection an additional twenty (20) |
| |
7|days. |
| |
8| B. If a claim is denied for reasons other than those described |
| |
9|in subsection A of this section, and is made by any other means than |
| |
10|writing, an appropriate notation shall be made in the claim file of |
| |
11|the property and casualty insurer until such time as a written |
| |
12|confirmation can be made. |
| |
13| C. Every property and casualty insurer shall complete |
| |
14|investigation of a claim within sixty (60) days after notification |
| |
15|of proof of loss unless such investigation cannot reasonably be |
| |
16|completed within such time. If such investigation cannot be |
| |
17|completed, or if a property and casualty insurer needs more time to |
| |
18|determine whether a claim should be accepted or denied, it shall so |
| |
19|notify the claimant within sixty (60) days after receipt of the |
| |
20|proofs of loss, giving reasons why more time is needed. If the |
| |
21|investigation remains incomplete, a property and casualty insurer |
| |
22|shall, within sixty (60) days from the date of the initial |
| |
23|notification, send to such claimant a letter setting forth the |
| |
24|reasons additional time is needed for investigation. Except for an |
| |
Req. No. 16309 Page 25
___________________________________________________________________________
1|investigation of possible fraud or arson which is supported by |
| |
2|specific information giving a reasonable basis for the |
| |
3|investigation, the time for investigation shall not exceed one |
| |
4|hundred twenty (120) days after receipt of proof of loss. Provided, |
| |
5|in the event of a weather-related catastrophe or a major natural |
| |
6|disaster, as declared by the Governor, the Insurance Commissioner |
| |
7|may extend this deadline for investigation an additional twenty (20) |
| |
8|days. |
| |
9| D. Insurers shall not fail to settle first party claims on the |
| |
10|basis that responsibility for payment should be assumed by others |
| |
11|except as may otherwise be provided by policy provisions. |
| |
12| E. Insurers shall not continue or delay negotiations for |
| |
13|settlement of a claim directly with a claimant who is neither an |
| |
14|attorney nor represented by an attorney, for a length of time which |
| |
15|causes the claimant's rights to be affected by a statute of |
| |
16|limitations, or a policy or contract time limit, without giving the |
| |
17|claimant written notice that the time limit is expiring and may |
| |
18|affect the claimant's rights. Such notice shall be given to first |
| |
19|party claimants and third party claimants one year sixty (60) days |
| |
20|after the date of the loss before the expiration of a statute of |
| |
21|limitations. |
| |
22| F. No insurer shall make statements which indicate that the |
| |
23|rights of a third party claimant may be impaired if a form or |
| |
24|release is not completed within a given period of time unless the |
| |
Req. No. 16309 Page 26
___________________________________________________________________________
1|statement is given for the purpose of notifying a third party |
| |
2|claimant of the provision of a statute of limitations. |
| |
3| G. If a lawsuit on the claim is initiated, the time limits |
| |
4|provided for in this section shall not apply. |
| |
5| H. As a matter of public policy, in no event shall an insurer |
| |
6|provide in a contract of insurance a statute of limitations that is |
| |
7|less than the general limitation of actions as provided by Section |
| |
8|95 of Title 12 of the Oklahoma Statutes. Any such condition, |
| |
9|stipulation, or agreement shall be void, but such voidance shall not |
| |
10|affect the validity of the other provisions of the policy. |
| |
11| SECTION 11. AMENDATORY 36 O.S. 2021, Section 1250.14, is |
| |
12|amended to read as follows: |
| |
13| Section 1250.14. A. For any violation of the Unfair Claims |
| |
14|Settlement Practices Act, the Insurance Commissioner may, after |
| |
15|notice and hearing, subject an insurer to a civil penalty of not |
| |
16|less than One Hundred Dollars ($100.00) nor more than Five Thousand |
| |
17|Dollars ($5,000.00) for each occurrence. Such civil penalty may be |
| |
18|enforced in the same manner in which civil judgments may be |
| |
19|enforced. |
| |
20| B. In addition to the civil penalty enforceable by the |
| |
21|Insurance Commissioner, an insurer may be liable to a first-party |
| |
22|insured for the insurer's violation of one or more provisions of the |
| |
23|Unfair Claims Settlement Practices Act. Provided, the insurer shall |
| |
24|not be subject to a judgment in district court unless the insured |
| |
Req. No. 16309 Page 27
___________________________________________________________________________
1|proves by a preponderance of evidence that damages claimed are a |
| |
2|proximate result of the violation or violations of the Unfair Claims |
| |
3|Settlement Practices Act. |
| |
4| SECTION 12. This act shall become effective November 1, 2026. |
| |
5| |
| |
6| 60-2-16309 MJ 02/12/26 |
| |
7| |
| |
8| |
| |
9| |
| |
10| |
| |
11| |
| |
12| |
| |
13| |
| |
14| |
| |
15| |
| |
16| |
| |
17| |
| |
18| |
| |
19| |
| |
20| |
| |
21| |
| |
22| |
| |
23| |
| |
24| |
| |
Req. No. 16309 Page 28
