Oklahoma 2024 Regular Session

Oklahoma House Bill HB3081

Introduced
2/5/24  

Caption

Insurance; rates; penalties; hearing; due diligence search; filings; surplus lines licensee; broker; unfair settlement; third-party administrator; insurance commissioner; effective date.

Impact

The most notable impact of HB3081 is on the regulatory environment for insurance companies operating in Oklahoma. By clarifying the criteria under which insurance rates can be deemed excessive or inadequate, the bill seeks to protect consumers while also maintaining a competitive market. Additionally, the modifications to penalty structures and the hearing requirements for imposing fines may lead to more equitable treatment of insurance providers, aligning penalties more closely with the severity of violations. This shift is intended to ensure that smaller operators are not disproportionately burdened by penalties compared to larger companies.

Summary

House Bill 3081 is a comprehensive legislation that revises various aspects of insurance law in Oklahoma. Key amendments include changes to the approval process for insurance rates, defining excessive, inadequate, or discriminatory rates, and the penalties associated with violations of the Oklahoma Insurance Code. The bill aims to streamline processes and ensure more uniform compliance in the insurance sector while aiming to enhance the stability and integrity of the insurance market in the state.

Contention

However, the bill has not been without contention. Critics argue that some of the changes, particularly related to removing the requirement for due diligence searches by surplus lines licensees and altering the penalty structures, could lead to less oversight and potentially more unfair practices within the industry. There are ongoing debates about whether these changes might lead to increased consumer protection issues or whether they are necessary steps toward reducing regulatory burdens on the insurance industry. Stakeholders, including consumer advocacy groups, contend that adequate safeguards must remain in place to prevent potential abuses and ensure accountable practices among insurance providers.

Companion Bills

No companion bills found.

Previously Filed As

OK SB551

Unfair insurance practices; modifying rebate actions to be considered unfair methods of competition or unfair and deceptive acts in the business of insurance. Effective date.

OK SB555

Prepaid funeral services; modifying provisions for permit applications and administration by the Insurance Commissioner. Effective date.

OK SB543

Insurance; creating the Insurance Data Security Act. Effective date.

OK SB539

Insurance licensure; modifying requirements for continuing education courses; requiring licensee to maintain updated information with the Insurance Commissioner. Effective date.

OK HB1694

Dental insurance; medical loss ratio calculation; report; rebates; requiring Insurance Department to regulate rates; effective date.

OK SB557

Unfair Claims Settlement Practices Act; providing that denial of payment to claimant constitutes an unfair claim settlement practice. Effective date.

OK SB553

Third-party Administrator Act; modifying application and fee requirements for licensees. Effective date.

OK SB435

Service Warranty Act; exempting certain fee from provisions of State Insurance Commissioner Revolving Fund; modifying administrative fees. Effective date.

OK SB541

Service warranties; modifying administrative procedures of the Insurance Department. Effective date.

OK SB549

Pharmacy benefits management; modifying provisions ad requirements of managers; modifying administration by the Insurance Department. Effective date.

Similar Bills

OK HB3091

Insurance; rates; penalties; hearing; due diligence search; filings; surplus lines licensee; broker; unfair settlement; third-party administrator; Insurance Commissioner; effective date.

OK HB2123

Insurance; creating the Patient's Right to Pharmacy Choice Commission; powers and duties; emergency.

OK HB2824

Long-term care; transfer of employees, powers, duties, monies and contractual rights; informal dispute resolution process; effective dates; emergency.

OK HB2824

Long-term care; transfer of employees, powers, duties, monies and contractual rights; informal dispute resolution process; effective dates; emergency.

OK SB549

Pharmacy benefits management; modifying provisions ad requirements of managers; modifying administration by the Insurance Department. Effective date.

OK SB549

Pharmacy benefits management; modifying provisions ad requirements of managers; modifying administration by the Insurance Department. Effective date.