ENGR. H. B. NO. 2403 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED HOUSE BILL NO. 2403 By: Russ of the House and Quinn of the Senate An Act relating to licenses and certificates; amending 36 O.S. 2011, Section 617, which relates to insurance certificates; requiring inactivation of license for failure to qualify for renewal; imposing reinstatement fee; allowing termination of license after certain time period; providing exemption; amending 36 O.S. 2011, Section 618, which relates to mandatory revocation or suspension; requiring inactivation of license for failure to qualify for renewal; imposing reinstatement fee ; allowing termination of license after certain time period; providing exemption; amending 36 O.S. 2011, Section 619, which relates to revocation or suspension of insurance certificate; requiri ng inactivation of certificate for failure to qualify for rene wal; imposing reinstatement fee ; allowing termination of certificate after certain time period; providing exemption; amending 36 O.S. 2011, Sections 1435.13, as amended by Section 3, Chapter 294 , O.S.L. 2019 and 1435.29, as amended by Section 7, Chapter 11, O.S.L. 2012 (36 O.S. Supp. 2020, Sections 1435.13 and 1435.29), which relate to the Oklahoma Producer Licensing Act; requiring inactivation of license for failure to qualify for renewal; imp osing reinstatement fee; allowing termination of license after certain time period; providing exemption; providing continuing education exemption; amending 36 O.S. 2011, Section 2727.1, which relates to fraternal benefit societies; requiring inactivation of license for failure to qualify for rene wal; imposing reinstatement fee; allowing termination of license after certain time period; providing exemption; amending 36 O.S. 2011, Section 4055.4, which relates to the Viatical Settlements Act of 2008 ; requiring inactivation of license for failure to qualify for ENGR. H. B. NO. 2403 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 renewal; imposing reinstatement fee; allowing termination of license after certain time period; providing exemption; amending 36 O.S. 2011, Sections 6217, as last amended by Section 14, Chapter 269, O.S.L. 2013 and 6220, as last amended by Section 10, Chapter 294, O.S.L. 2019 (36 O.S. Supp. 2020, Sections 6217 and 6220), which relate to the Insurance Adjusters Licensing Act; providing continuing education exemption; requiring inactivation of license for failure to qualify for renewal; imposing reinstatement fee; allowing termination of license after certain time period; providing exemption; amending 36 O.S. 2011, Sections 6560 and 6561, which relate to the Hospital and Medical Services Utilization Review Act ; requiring inactivation of license for failure to qualify for renewal; imposing reinstatement fee ; allowing termination of license after certain time period; providing exemption; amending 59 O.S. 2011, Sections 1304, as amended by Section 1, Chapter 150, O.S.L. 2013, 1308.1, as amended by Section 1, Chapter 259, O.S.L. 2019 and 1309, as last amended by Section 3, Chapter 110, O.S.L. 2015 (59 O.S. Supp. 2020, Sections 1304, 1308.1 and 1309), which relate to bail bondsmen; requiring inactivation of license for failure to qualify for rene wal; imposing reinstatement fee; allowing termination of license after certain time period; providing exemption; providing continuing education exemption; eliminating automatic expiration; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 36 O.S. 2011, Section 617, is amended to read as follows: Section 617. A. All certificates of authority shall, beginning November 1, 2002, be perpetual and automatically renewed as of March ENGR. H. B. NO. 2403 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 of each year, unless the insurer fails to qualify for renewal pursuant to the requirements of the Insurance Code . B. The Insurance Commissioner may amend a certificate of authority at any time to accord with change s in the insurer's charter or insuring powers. If the insurer or holder of the license fails to qualify for a renewal, the license shall be inactive. If the license has been inactive for less than twelve (12) months and the insurer or holder of the licen se meets the requirements for renewal, the license shall be reinstated after the insurer or holder of the license pays a fee of Two Hundred Fifty Dollars ($250.00 ) and no reexamination shall be required . After the license has been inactive for more than t welve (12) months, the license shall be terminated. The Department shall only terminate a license that failed to renew after the twelve-month inactive period required under this subsection and upon notification by first -class mail ninety (90) days prior to termination of any license . The provisions of this subsection shall not apply to an insurer or holder of a license that willfully and knowingly violates any provision of this Code as to which refusal, suspension or revocation is mandatory. SECTION 2. AMENDATORY 36 O.S. 2011, Section 618, is amended to read as follows: ENGR. H. B. NO. 2403 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Section 618. A. The Insurance Commissioner shall refuse to renew or shall revoke or suspend an insurer's certificate of authority: 1. If such action is required by any provision of this Code ,; or 2. If the insurer no longer meets the requirements for the authority originally granted, on account of deficiency in assets or otherwise. B. If the insurer or holder of the license fails to qualify for a renewal, the license shall be inactive. If the license has been inactive for less than twelve (12) months and the insurer or holder of the license meets the requirements for renewal, the license shall be reinstated after the insurer or holder of the license pays a fee of Two Hundred Fifty Dollars ($250.00 ) and no reexamination shall be required. After the license has been inactive for more than twelve (12) months, the license shall be terminated. The Department shall only terminate a license that failed to renew after the twelve-month inactive period required under this subsection and upon notification by first-class mail ninety (90) days prior to termination of any license. The provisions of this subsection shall not apply to an insurer or holder of a license that wi llfully and knowingly violates any provision of this Code as to which refusal, suspension or revocation is mandatory. ENGR. H. B. NO. 2403 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 3. AMENDATORY 36 O.S. 2011, Section 619, is amended to read as follows: Section 619. A. The Except as otherwise provided in this section, the Insurance Commissioner may , after opportunity for a hearing, refuse to renew, or may revoke or suspend an insurer's certificate of authority, in addition to other grounds in this Code, if the insurer: 1. Violates any provision of this Code other than those as to which refusal, suspension, or revocation is mandatory; 2. Knowingly fails to comply with any lawful rule or order of the Insurance Commissioner; 3. Is found by the Insurance Commissioner to be in unsound condition or in such condition as to render its further transaction of insurance in this state hazardous to its policyholders or to the people of this state; 4. Without reasonable cause compels claimants under its policies to accept less than the amount due them or to bring suit against it to secure full payment; 5. Refuses to be examined or to produce its accounts, records, and files for examination by the Insurance Commissioner when required; 6. Fails to pay any final judgment rendered against it in this state within thirty (30) days after the judgment becomes final; or ENGR. H. B. NO. 2403 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 7. Is affiliated with and under the same general management or interlocking directorate or ownership as another insurer which transacts direct insurance in this state without having a certificate of authority therefor, except as permitted to a surplus line insurer pursuant to Sections 1101 through 1120 of this title. B. In addition to or in lieu of any applicable revocation or suspension of an insurer's certificate of authority, any insur er who knowingly and willfully violates this Code may be subject to a civil penalty of not more than Five Thousand Dollars ($5,000.00) for each occurrence. C. In addition to or in lieu of any sanction, the Commissioner may require an insurer to restrict i ts insurance writings, obtain additional contributions to surplus, withdraw from the state, reinsure all or part of its business, increase capital, surplus, deposits or any other account for the security of policyholders or creditors, or provide independen t actuarial review. D. If the insurer fails to qualify for a renewal, the insurance certificate shall be inactive. If the insurance certificate has been inactive for less than twelve (12) months and the insurer meets the requirements for renewal, the insurance certificate shall be reinstated after the insurer pays a fee of Two Hundred Fifty Dollars ($250.00) and no reexamination shall be required . After the insurance certificate has been inactive for more than twelve (12) months, the insurance certificat e shall be terminated. The ENGR. H. B. NO. 2403 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Department shall only terminate a n insurance certificate that failed to renew after the twelve-month inactive period required under this subsection and upon notification by first -class mail ninety (90) days prior to termination of any insurance certificate. The provisions of this subsection shall not apply to an insurer that willfully and knowingly violates any provision of this Code as to which refusal, suspension or revocation is mandatory. SECTION 4. AMENDATORY 36 O.S. 2011, Section 1435.13, as amended by Section 3, Chapter 294, O.S.L. 2019 (36 O.S. Supp. 2020, Section 1435.13), is amended to read as follows: Section 1435.13 A. The Except as otherwise provided in this section, the Insurance Commissioner may place on probation, censure, suspend, revoke or refuse to issue or renew a license issued pursuant to the Oklahoma Producer Licensing Act or may levy a civil penalty in accordance with subsection D of this section or any combination of actions, fo r any one or more of the following causes: 1. Providing incorrect, misleading, incomplete or materially untrue information in the license application; 2. Violating any insurance laws, or violating any regulation, subpoena or order of the Insurance Commis sioner or of another state's Insurance Commissioner; 3. Obtaining or attempting to obtain a license through misrepresentation or fraud; ENGR. H. B. NO. 2403 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4. Improperly withholding, misappropriating or converting any monies or properties received in the course of doing ins urance business; 5. Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance; 6. Having been convicted of a felony; 7. Having admitted or been found to have committed any insurance unfair trade pra ctice or fraud; 8. Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness or financial irresponsibility in the conduct of business in this state or elsewhere; 9. Having an insurance producer license, or its e quivalent, denied, suspended, censured, placed on probation or revoked in any other state, province, district or territory; 10. Forging another's name to an application for insurance or to any document related to an insurance transaction; 11. Improperly using notes or any other reference material to complete an examination for an insurance license; 12. Knowingly accepting insurance business from an individual who is not licensed; 13. Failing to comply with an administrative or court order imposing a child support obligation; ENGR. H. B. NO. 2403 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 14. Failing to pay state income tax or comply with any administrative or court order directing payment of state income tax; 15. Failing to respond to an inquiry from the Department as required in Section 1250.4 of this title; or 16. Any cause for which an original issuance of a license could have been refused. B. 1. In the event that the action by the Insurance Commissioner is to nonrenew or to deny an application for a license, the Insurance Commissioner shall notify the applica nt or licensee and advise the applicant or licensee, in writing, of the reason for the denial or nonrenewal of the applicant's or licensee's license. The applicant or licensee may make written demand upon the Insurance Commissioner within thirty (30) days of the date of notification of the notification by the Insurance Commissioner for a hearing before the Insurance Commissioner or an independent hearing examiner to determine the reasonableness of the Insurance Commissioner's action. The hearing shall be heard within a reasonable time period and shall be held pursuant to the Oklahoma Administrative Procedures Act. 2. If the licensee fails to qualify for a renewal, the license shall be inactive. If the license has been inactive for less than twelve (12) months and the licensee meets the requirements for renewal, the license shall be reinstated after the licensee pays a fee of Two Hundred Fifty Dollars ($250.00 ) and no reexamination shall be required. After the license has been inactive for more ENGR. H. B. NO. 2403 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 than twelve (12) months, the license shall be terminated. The Department shall only terminate a license that failed to renew after the twelve-month inactive period required under this subsection and upon notification by first -class mail ninety (90) days prior to termination of any license. The provisions of this subsection shall not apply to a licensee that willfully and knowingly violates any provision of this Code as to which refusal, suspension or revocation is mandatory. C. The license of a business entity may be suspended, revoked or refused if the Insurance Commissioner finds, after opportunity for hearing, that an individual licensee's violation was known or should have been known by one or more of the partners, officers or managers acting on behalf of the p artnership or corporation and the violation was neither reported to the Insurance Commissioner nor corrective action taken. D. In addition to or in lieu of any applicable denial, probation, censure, suspension or revocation of a license, a person may, after opportunity for hearing, be subject to a civil fine of not less than One Hundred Dollars ($100.00) nor more than One Thousand Dollars ($1,000.00) for each occurrence. The penalty may be enforced in the same manner in which civil judgments may be enforced. E. Every licensee licensed pursuant to the provisions of the Oklahoma Producer Licensing Act shall keep at the licensee's place ENGR. H. B. NO. 2403 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 of business the usual and customary records pertaining to transactions authorized by the license. All records as to any particular transactions shall be kept available and open to the inspection of the Commissioner at any time during business hours during the three (3) years immediately following the date of completion of the transaction. The Commissioner may require a financial or market conduct examination during any investigation of a licensee. The cost of such examination shall be apportioned among all of the appointing insurers of the licensee. F. The Insurance Commissioner shall retain the authority to enforce the provisions of and impose any penalty or remedy authorized by the Oklahoma Producer Licensing Act and Title 36 of the Oklahoma Statutes this title against any person who is under investigation for or charged with a violation of the Oklahoma Producer Licensing Act or Title 36 of the Oklahoma Statutes this title even if the person's license or registration has been surrendered or has lapsed by operation of law. G. Files pertaining to investigations or legal matters which contain information concurring a current and ongoing investigation of allegations of violations of the Oklahoma Insurance Code by a licensed agent shall not be available for public inspection without proper judicial authorization; however, a licensee under investigation for alleged violations of the Oklahoma Insurance Code, or against whom an action for alleged violations of the Oklahoma ENGR. H. B. NO. 2403 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Insurance Code has been commenced, may view evidence and complaints pertaining to the investigation, other than privileged information, at reasonable times at the Commissioner's office. All qualification examination materials, booklets and answers for any license authorized to be issued by the Commissioner under any statute shall not be available for public inspection. The residence address, residence telephone n umber, birth date, and Social Security number of a licensee shall not be available for public inspection. A separate business or mailing address provided by the licensee shall be considered a public record. If the residence and business addresses or residence and business telephone numbers are the same, such addresses or telephone numbers shall be considered a public record. H. The Commissioner shall promptly notify all appointing insurers, where applicable, and the licensee regarding any censure, suspension, revocation or termination of license by the Commissioner. I. Upon suspension, revocation or termination of the license of a resident or nonresident of this state, the Commissioner shall notify the Central Office of the National Association of Insura nce Commissioners, or its appropriate nonprofit affiliates and the Insurance Commissioner of each state for whom the Commissioner has executed a certificate of licensure status. ENGR. H. B. NO. 2403 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 J. The Commissioner may issue a duplicate license for any lost, stolen or destroyed license issued pursuant to the Oklahoma Producer Licensing Act upon an affidavit of the licensee prescribed by the Commissioner concerning the facts of such loss, theft or destruction. SECTION 5. AMENDATORY 36 O.S. 2011, Se ction 1435.29, as amended by Section 7, Chapter 11, O.S.L. 2012 (36 O.S. Supp. 2020, Section 1435.29), is amended to read as follows: Section 1435.29 A. 1. Each insurance producer, with the exception of title producers and, aircraft title producers , producers that have maintained an insurance producer license for twenty (20) or more years or any other producer exempt by rule, shall, biennially, complete not less than twenty -one (21) clock hours of continuing insurance education. Such education may inclu de a written or oral examination. 2. Each customer service representative shall, biennially, complete not less than ten (10) clock hours of continuing insurance education. 3. Licensees, with the exception of title producers and aircraft title producers o r any other producer exempt by rule, shall complete, in addition to the foregoing, three (3) clock hours of ethics course work in this same period. 4. Each title producer and aircraft title producer shall, biennially, complete not less than sixteen (16) c lock hours of ENGR. H. B. NO. 2403 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 continuing insurance education, two (2) hours of which shall be ethics course work, which shall cover the line for which the producer is licensed. Such education may include a written or oral examination. B. 1. The Insurance Commissioner s hall approve courses and providers of continuing education. The Insurance Department may use one or more of the following to review and provide a nonbinding recommendation to the Insurance Commissioner on approval or disapproval of courses and providers o f continuing education: a. employees of the Insurance Commissioner, b. a continuing education advisory committee, or c. an independent service whose normal business activities include the review and approval of continuing education courses and providers. The Commissioner may negotiate agreements with such independent service to review documents and other materials submitted for approval of courses and providers and provide the Commissioner with its nonbinding recommendation. The Commissioner may require such independent service to collect the fee charged by the independent service for reviewing materials provided for review directly from the course providers. ENGR. H. B. NO. 2403 Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 The Insurance Commissioner has sole authority to approve courses and providers of continuing educa tion. If the Insurance Commissioner uses one of the entities listed above to provide a nonbinding recommendation, the Commissioner shall adopt or decline to adopt the recommendation within thirty (30) days of receipt of the recommendation. In the event t he Insurance Commissioner takes no action within said thirty -day period, the recommendation made to the Commissioner will be deemed to have been adopted by the Commissioner. The Insurance Commissioner may certify providers and courses offered for license e xamination study. The Insurance Department shall use employees of the Insurance Commissioner to review and certify license examination study program providers and courses. 2. Each insurance company shall be allowed to provide continuing education to insu rance producers and customer service representatives as required by this section; provided that such continuing education meets the general standards for education otherwise established by the Insurance Commissioner. 3. An insurance producer who, during t he time period prior to renewal, participates in a professional designation program, approved by the Insurance Commissioner, shall be deemed to have met the biennial requirement for continuing education. The curriculum for the program shall total a minimum of twenty- four (24) hours within a twenty -four-month period. Each approved ENGR. H. B. NO. 2403 Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 professional designation program included in this section shall be reviewed for quality and compliance every three (3) years in accordance with standardized criteria promulgated b y rule. Continuation of approved status is contingent upon the findings of the review. The list of professional designation programs approved under this paragraph shall be made available to producers and providers annually. 4. The Insurance Department m ay promulgate rules providing that courses or programs offered by professional associations shall qualify for presumptive continuing education credit approval. The rules shall include standardized criteria for reviewing the professional associations' miss ion, membership, and other relevant information, and shall provide a procedure for the Department to disallow all or part of a presumptively approved course. Professional association courses approved in accordance with this paragraph shall be reviewed eve ry three (3) years to determine whether they continue to qualify for continuing education credit. 5. Subject to approval by the Commissioner, the active membership of the licensed producer or broker in local, regional, state, or national professional insu rance organizations or associations may be approved for up to one (1) annual hour of instruction. The hour shall be credited upon timely filing with the Commissioner, or designee of the Commissioner, and appropriate ENGR. H. B. NO. 2403 Page 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 written evidence acceptable to the Comm issioner of such active membership in the organization or association. 6. The active service of a licensed producer as a member of a continuing education advisory committee, as described in paragraph 1 of this subsection, shall be deemed to qualify for co ntinuing education credit on an hour -for-hour basis. C. 1. Annual fees and course submission fees shall be set forth as a rule by the Commissioner. The fees are payable to the Insurance Commissioner. Provided, public -funded educational institutions, federal agencies, nonprofit organizations, not -for- profit organizations, and Oklahoma state agencies shall be exempt from this subsection. 2. The Commissioner may assess a civil penalty, after notice and opportunity for hearing, against a continuing educati on provider who fails to comply with the requirements of the Oklahoma Producer Licensing Act, of not less than One Hundred Dollars ($100.00) nor more than Five Hundred Dollars ($500.00), for each occurrence. The civil penalty may be enforced in the same m anner in which civil judgments may be enforced. D. Failure of an insurance producer or customer service representative to comply with the requirements of the Oklahoma Producer Licensing Act may, after notice and opportunity for hearing, result in censure, suspension, nonrenewal of license or a civil penalty of up to Five Hundred Dollars ($500.00) or by both ENGR. H. B. NO. 2403 Page 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 such penalty and civil penalty. Said civil penalty may be enforced in the same manner in which civil judgments may be enforced. E. Limited lines prod ucers and nonresident agents who have successfully completed an equivalent or greater requirement shall be exempt from the provisions of this section. F. Members of the Legislature shall be exempt from this section. G. The Commissioner shall adopt and pr omulgate such rules as are necessary for effective administration of this section. SECTION 6. AMENDATORY 36 O.S. 2011, Section 2727.1, is amended to read as follows: Section 2727.1 A. Societies which are authorized prior to the effective date of this act to transact business in this state may continue such business until the last day of February next succeeding the effective date of this act. The authority of such societies and of all societies licensed on and after the effectiv e date of this act may be renewed annually, to terminate in all cases on the last day of the succeeding February. However, a license so issued shall continue in full force and effect until the new license is issued or specifically refused. For each such license or renewal the society shall pay to the Insurance Commissioner the fee stated in Section 321 of Title 36 of the Oklahoma Statutes this title. A duly certified copy or duplicate of such license shall be prima ENGR. H. B. NO. 2403 Page 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 facie evidence that the licensee is a f raternal benefit society within the meaning of this article. B. If the society fails to qualify for a renewal, the license shall be inactive. If the license has been inactive for less than twelve (12) months and the society meets the requirements for renewal, the license shall be reinstated after the society pays a fee of Two Hundred Fifty Dollars ($250.00 ) and no reexamination shall be required. After the license has been inactive for more than twelve (12) months, the license shall be terminated. The Department shall only terminate a license that failed to renew after the twelve-month inactive period required under this subsection and upon notification by first -class mail ninety (90) days prior to termination of any license . The provisions of this subs ection shall not apply to a society that willfully and knowingly violates any provision of this Code as to which refusal, suspension, or revocation is mandatory. SECTION 7. AMENDATORY 36 O.S. 2011, Section 4055.4, is amended to read as follows: Section 4055.4 A. The Insurance Commissioner may refuse to issue, suspend, revoke or refuse to renew the license of a viatical settlement provider or viatical settlement broker if the Commissioner finds that: 1. There was any material mis representation in the application for the license; ENGR. H. B. NO. 2403 Page 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. The licensee or any officer, partner, member or key management personnel has been convicted of fraudulent or dishonest practices, is subject to a final administrative action or is otherwise shown to be untrustworthy or incompetent; 3. The viatical settlement provider demonstrates a pattern of unreasonable payments to viators; 4. The licensee or any officer, partner, member or key management personnel has been found guilty of, or has pleaded guilty or nolo contendere to, any felony, or to a misdemeanor involving fraud or moral turpitude, regardless of whether a judgment of conviction has been entered by the court; 5. The viatical settlement provider has entered into any viatical settlement contract tha t has not been approved pursuant to the Viatical Settlements Act of 2008; 6. The viatical settlement provider has failed to honor contractual obligations set out in a viatical settlement contract; 7. The licensee no longer meets the requirements for init ial licensure; 8. The viatical settlement provider has assigned, transferred or pledged a viaticated policy to a person other than a viatical settlement provider licensed in this state, viatical settlement purchaser, an accredited investor or qualified in stitutional buyer as defined respectively in Rule 501(a) or Rule 144A promulgated ENGR. H. B. NO. 2403 Page 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 under the Federal Securities Act of 1933, as amended, financing entity, special purpose entity, or related provider trust; or 9. The licensee or any officer, partner, member or key management personnel has violated any provision of the Viatical Settlements Act of 2008. B. The Commissioner may suspend, revoke or refuse to renew the license of a viatical settlement broker or a life insurance producer operating as a viatical se ttlement broker pursuant to the Viatical Settlements Act of 2008 if the Commissioner finds that the viatical settlement broker or life insurance producer has violated the provisions of the Viatical Settlements Act of 2008 or has otherwise engaged in bad-faith conduct with one or more viators. C. If the Commissioner denies a license application or suspends, revokes or refuses to renew the license of a viatical settlement provider, viatical settlement broker or suspends, revokes, or refuses to renew a licens e of a life insurance producer operating as a viatical settlement broker pursuant to the Viatical Settlements Act of 2008 the Commissioner shall conduct a hearing in accordance with the Administrative Procedures Act. D. If the licensee fails to qualify for a renewal, the license shall be inactive. If the license has been inactive for less than twelve (12) months and the licensee meets the requirements for renewal, the license shall be reinstated after the licensee pays a fee of Two Hundred Fifty Dollars ( $250.00) and no reexamination ENGR. H. B. NO. 2403 Page 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 shall be required. After the license has been inactive for more than twelve (12) months, the license shall be terminated. The Department shall only terminate a license that failed to renew after the twelve-month inactive period required under this subsection and upon notification by first -class mail ninety (90) days prior to termination of any license . The provisions of this subsection shall not apply to a licensee that willfully and knowingly violates any provision of this Code as to which refusal, suspension, or revocation is mandatory. SECTION 8. AMENDATORY 36 O.S. 2011, Section 6217, as last amended by Section 14, Chapter 269, O.S.L. 2013 (36 O.S. Supp. 2020, Section 6217), is amended to read as follows: Section 6217. A. All licenses issued pursuant to the provisions of the Insurance Adjusters Licensing Act shall continue in force not longer than twenty -four (24) months. The renewal dates for the licenses may be staggered throughout the year b y notifying licensees in writing of the expiration and renewal date being assigned to the licensees by the Insurance Commissioner and by making appropriate adjustments in the biennial licensing fee. B. Any licensee applying for renewal of a license as an adjuster shall have completed not less than twenty -four (24) clock hours of continuing insurance education, of which three (3) hours shall be in ethics, within the previous twenty -four (24) months prior to renewal of the license , provided that anyone who h as ENGR. H. B. NO. 2403 Page 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 maintained a license as an adjuster for twenty (20) or more years shall be exempt from any continuing insurance education requirements. The Insurance Commissioner shall approve courses and providers of continuing education for insurance adjusters as required by this section. The Insurance Department may use one or more of the following to review and provide a nonbinding recommendation to the Insurance Commissioner on approval or disapproval of courses and providers of continuing education: 1. Employees of the Insurance Commissioner; 2. A continuing education advisory committee. The continuing education advisory committee is separate and distinct from the Advisory Board established by Section 6221 of this title; or 3. An independent service whose norm al business activities include the review and approval of continuing education courses and providers. The Commissioner may negotiate agreements with such independent service to review documents and other materials submitted for approval of courses and pro viders and present the Commissioner with its nonbinding recommendation. The Commissioner may require such independent service to collect the fee charged by the independent service for reviewing materials provided for review directly from the course provid ers. C. An adjuster who, during the time period prior to renewal, participates in an approved professional designation program shall ENGR. H. B. NO. 2403 Page 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 be deemed to have met the biennial requirement for continuing education. Each course in the curriculum for the program sh all total a minimum of twenty -four (24) hours. Each approved professional designation program included in this section shall be reviewed for quality and compliance every three (3) years in accordance with standardized criteria promulgated by rule. Continuation of approved status is contingent upon the findings of the review. The list of professional designation programs approved under this subsection shall be made available to producers and providers annually. D. The Insurance Department may promulgate rules providing that courses or programs offered by professional associations shall qualify for presumptive continuing education credit approval. The rules shall include standardized criteria for reviewing the professional associations' mission, membershi p, and other relevant information, and shall provide a procedure for the Department to disallow a presumptively approved course. Professional association courses approved in accordance with this subsection shall be reviewed every three (3) years to determ ine whether they continue to qualify for continuing education credit. E. The active service of a licensed adjuster as a member of a continuing education advisory committee, as described in paragraph 2 of subsection B of this section, shall be deemed to qu alify for continuing education credit on an hour -for-hour basis. ENGR. H. B. NO. 2403 Page 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 F. 1. Each provider of continuing education shall, after approval by the Commissioner, submit an annual fee. A fee may be assessed for each course submission at the time it is first submitted for review and upon submission for renewal at expiration. Annual fees and course submission fees shall be set forth as a rule by the Commissioner. The fees are payable to the Insurance Commissioner and shall be deposited in the State Insurance Commissioner Revolving Fund, created in Section 307.3 of this title, for the purposes of fulfilling and accomplishing the conditions and purposes of the Oklahoma Producer Licensing Act and the Insurance Adjusters Licensing Act. Public -funded educational institu tions, federal agencies, nonprofit organizations, not -for-profit organizations and Oklahoma state agencies shall be exempt from this subsection. 2. The Commissioner may assess a civil penalty, after notice and opportunity for hearing, against a continuing education provider who fails to comply with the requirements of the Insurance Adjusters Licensing Act, of not less than One Hundred Dollars ($100.00) nor more than Five Hundred Dollars ($500.00), for each occurrence. The civil penalty may be enforced in the same manner in which civil judgments may be enforced. G. Subject to the right of the Commissioner to suspend, revoke, or refuse to renew a license of an adjuster, any such license may be renewed by filing on the form prescribed by the Commissioner on or ENGR. H. B. NO. 2403 Page 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 before the expiration date a written request by or on behalf of the licensee for such renewal and proof of completion of the continuing education requirement set forth in subsection B of this section, accompanied by payment of the renewal fee. H. If the request, proof of compliance with the continuing education requirement and fee for renewal of a license as an adjuster are filed with the Commissioner prior to the expiration of the existing license, the licensee may continue to act pursuant to said license, unless revoked or suspended prior to the expiration date, until the issuance of a renewal license or until the expiration of ten (10) days after the Commissioner has refused to renew the license and has mailed notice of said refusal to the licensee. Any request for renewal filed after the date of expiration may be considered by the Commissioner as an application for a new license. I. If the licensee fails to qualify for a renewal, the license shall be inactive. If the license has been inactive for l ess than twelve (12) months and the licensee meets the requirements for renewal, the license shall be reinstated after the licensee pays a fee of Two Hundred Fifty Dollars ($250.00 ) and no reexamination shall be required. After the license has been inacti ve for more than twelve (12) months, the license shall be terminated. The Department shall only terminate a license that failed to renew after the twelve-month inactive period required under this subsection and ENGR. H. B. NO. 2403 Page 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 upon notification by first -class mail ninety (90) days prior to termination of any license . The provisions of this subsection shall not apply to a licensee that willfully and knowingly violates any provision of this Code as to which refusal, suspension or revocation is mandatory. SECTION 9. AMENDATORY 36 O.S. 2011, Section 6220, as last amended by Section 10, Chapter 294, O.S.L. 2019 (36 O.S. Supp. 2020, Section 6220), is amended to read as follows: Section 6220. A. The Commissioner may censure, suspend, revoke, or refuse to issue or renew a license after hearing for any of the following causes: 1. Material misrepresentation or fraud in obtaining an adjuster's license; 2. Any cause for which original issuance of a license could have been refused; 3. Misappropriation, co nversion to the personal use of the licensee, or illegal withholding of monies required to be held by the licensee in a fiduciary capacity; 4. Material misrepresentation of the terms and effect of any insurance contract, with intent to deceive, or engagin g in, or attempting to engage in, any fraudulent transaction with respect to a claim or loss that the licensee or the trainee is adjusting and, in the case of a public adjuster, misrepresentation of the services offered or the fees or commission to be char ged; ENGR. H. B. NO. 2403 Page 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 5. Conviction of or pleading guilty or nolo contendere to a felony pursuant to the laws of this state, any other state, the United States, or any foreign country; 6. If in the conduct of business affairs, the licensee or trainee has shown himself to be, and is so deemed by the Commissioner, incompetent, untrustworthy or a source of injury to the public; 7. Refusal to comply with any lawful order of the Commissioner; 8. Violation of any provision of the Insurance Adjusters Licensing Act; 9. Adjusting losses or negotiating claim settlements arising pursuant to provisions of insurance contracts on behalf of an insurer or insured without proper licensing from the Commissioner and authority from the licensed insurer or the insured party; 10. Failing to respond to any inquiry (including electronic communications) from the Department within thirty (30) calendar days of receipt of such inquiry; 11. Forging another's name to any document; 12. Improperly using notes or any other reference material to complete an examination for an insurance license; 13. Having admitted or been found to have committed any insurance unfair trade practice or insurance fraud; ENGR. H. B. NO. 2403 Page 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 14. Having an insurance adjuster license or its equivalent denied, suspended, censured, placed on pro bation or revoked in any other state, province, district or territory; 15. Failing to inform the Department, by any means acceptable to the Department, of a change of address, change of legal name or change of information submitted on the application with in thirty (30) days of the change; or 16. Providing services as a public adjuster, company adjuster or independent adjuster on the same claim. B. In addition to or in lieu of any applicable denial, suspension, or revocation of a license, any person viola ting the provisions of the Insurance Adjusters Licensing Act may be subject to a civil fine of not more than One Thousand Dollars ($1,000.00) for each violation. This fine may be enforced in the same manner in which civil judgment may be enforced. C. If the license of an adjuster is suspended, revoked, or not renewed, the licensee shall surrender the license to the Commissioner. D. The Commissioner shall not reinstate a license to any person whose license has been suspended, revoked, or refused renewal u ntil the Commissioner determines that the cause or causes for the suspension, revocation, or nonrenewal of the license no longer exist. ENGR. H. B. NO. 2403 Page 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 E. The Department shall retain the authority to enforce the provisions of and impose any penalty or remedy authorized b y this title against any person who is under investigation for or charged with a violation even if the person's license or registration has been surrendered or has lapsed by operation of law. F. It shall be unlawful for any person, firm, association, company or corporation to act as an adjuster without first obtaining a license pursuant to the Insurance Adjusters Licensing Act. Any person convicted of violating the provisions of this subsection shall be guilty of a misdemeanor and shall be punished as set forth in Section 10 of Title 21 of the Oklahoma Statutes. The restriction set forth in this subsection shall apply regardless of whether the person, firm, association, company or corporation has obtained power of attorney from an insurance claimant or ha s entered into any other agreement with an insurance claimant to act on the behalf of the claimant. G. If the licensee fails to qualify for a renewal, the license shall be inactive. If the license has been inactive for less than twelve (12) months and th e licensee meets the requirements for renewal, the license shall be reinstated after the licensee pays a fee of Two Hundred Fifty Dollars ($250.00 ) and no reexamination shall be required. After the license has been inactive for more than twelve (12) month s, the license shall be terminated. The Department shall only terminate a license that failed to renew after ENGR. H. B. NO. 2403 Page 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the twelve-month inactive period required under this subsection and upon notification by first -class mail ninety (90) days prior to termination of any license. The provisions of this subsection shall not apply to a licensee that willfully and knowingly violates any provision of this Code as to which refusal, suspension or revocation is mandatory. SECTION 10. AMENDATORY 36 O .S. 2011, Section 6560, is amended to read as follows: Section 6560. A. A Except as otherwise provided in this section, a certificate expires is inactive on the first anniversary of its effective date unless the certificate is renewed for a one - year term as provided in this section. B. Before the certificate expires is inactive, a certificate may be renewed for an additional one -year term, if the applicant: 1. Otherwise is entitled to the certificate; 2. Pays the Insurance Commissioner an annual renewa l fee in the amount of Five Hundred Dollars ($500.00); 3. Submits to the Commissioner: a. a renewal application on the form that the Commissioner requires, and b. satisfactory evidence of compliance with any requirement for certificate renewal; 4. Establishes and maintains a complaint system which has been approved by the Commissioner and which provides reasonable ENGR. H. B. NO. 2403 Page 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 procedures for the resolution of written complaints concerning utilization review; and 5. Maintains records of written complaints for five (5) years from the time the complaints are filed and submits to the Commissioner a summary report at such times and in such format as the Commissioner may require. C. If the applicant fails to qualify for a renewal as provided in subsection B of this section , the certificate shall be inactive. If the certificate has been inactive for less than twelve (12) months and the applicant meets the requirements for renewal, the certificate shall be reinstated after the applicant pays a fee of Two Hundred Fifty Dollar s ($250.00) and no reexamination shall be required. After the certificate has been inactive for more than twelve (12) months, the certificate shall be terminated. The Department shall only terminate a certificate that failed to renew after the twelve-month inactive period required under this subsection and upon notification by first -class mail ninety (90) days prior to termination of any certification. The provisions of this subsection shall not apply to an applicant that willfully and knowingly violates any provision of this Code as to which refusal, suspension or revocation is mandatory. SECTION 11. AMENDATORY 36 O.S. 2011, Section 6561, is amended to read as follows: ENGR. H. B. NO. 2403 Page 33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Section 6561. A. The Insurance Commissioner may refuse to issue or renew or may suspend or revoke a certificate if the holder does not comply with performance assurances under this section, violates any provision of the Hospital and Medical Services Utilization Review Act, or violates any rule adopted pursuant thereto. B. The Commissioner shall deny or refuse to renew a certificate to any applicant if, upon review of the application, the Commissioner finds that the applicant proposing to conduct utilization review does not: 1. Have available the services of a suf ficient number of qualified medical professionals supervised by appropriate health care providers to carry out the applicant's utilization review activities. Said sufficiency shall be based on standards and criteria pursuant to the provisions of subparagr aph b of paragraph 1 of Section 8 6558 of this act title; 2. Meet any applicable rules the Commissioner adopted pursuant to the Hospital and Medical Services Utilization Review Act relating to the qualifications of private review agents or the performance of utilization review; and 3. Provide assurances satisfactory to the Commissioner that: a. the procedure and policies of the private review agent shall protect the confidentiality of medical records, and ENGR. H. B. NO. 2403 Page 34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 b. the review agent shall be reasonably accessible in this state to patients, hospitals and health care providers as required by this act. C. Before denying, not renewing, or revoking a certificate, the Commissioner shall provide the applicant or certificate holder with reasonable time to supply addition al information demonstrating compliance with the requirements of the Hospital and Medical Services Utilization Review Act and the opportunity to request a hearing. If an applicant or certificate holder requests a hearing, the Commissioner shall send a hea ring notice and conduct a hearing in accordance with the Administrative Procedures Act. D. Any person aggrieved by a final decision of the Commissioner in a contested case may appeal the decision as provided for in the Administrative Procedures Act. E. If the applicant fails to qualify for a renewal as provided in subsection B of this section , the certificate shall be inactive. If the certificate has been inactive for less than twelve (12) months and the applicant meets the requirements for renewal, the certificate shall be reinstated after the applicant pays a fee of Two Hundred Fifty Dollars ($250.00 ) and no reexamination shall be required. After the certificate has been inactive for more than twelve (12) months, the certificate shall be terminated. The Department shall only terminate a certificate that failed to renew after the twelve-month inactive period required under this ENGR. H. B. NO. 2403 Page 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 subsection and upon notification by first -class mail ninety (90) days prior to termination of any certification . The provisions of this subsection shall not apply to an applicant that willfully and knowingly violates any provision of this Code as to which refusal, suspension or revocation is mandatory. SECTION 12. AMENDATORY 59 O.S. 2011, Section 1304, as amended by Section 1, Chapter 150, O.S.L. 2013 (59 O.S. Supp. 2020, Section 1304), is amended to read as follows: Section 1304. A. Each bail bondsman license issued shall expire inactivate biennially at 12:00 o'clock midnight on the last day of the birth month of the bondsman, unless revoked or suspended prior thereto by the Insurance Commissioner. B. If the bondsman fails to qualify for a renewal, the license shall be inactive. If the license has been inactive for less than twelve (12) months and the bondsman meets the requirements for renewal, the license shall be reinstated after the bondsman pays a fee of Two Hundred Fifty Dollars ($250.00 ) and no reexamination shall be required. After the license has been inactive for more than twelve (12) months, the license shall be terminated. The Department shall only terminate a license that failed to renew after the twelve-month inactive period required under this subsection and upon notification by first -class mail ninety (90) days prior to termination of any license. The provisions of this subsection shall not apply to a bondsman that willfully and knowingly violates any ENGR. H. B. NO. 2403 Page 36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 provision of this Code as to which refusal, suspension or revocation is mandatory. SECTION 13. AMENDATORY 59 O.S . 2011, Section 1308.1, as amended by Section 1, Chapter 259, O.S.L. 2019 (59 O.S. Supp. 2020, Section 1308.1), is amended to read as follows: Section 1308.1 A. In order to be eligible to take the examination required to be licensed as a bail bondsman, e ach person shall complete not less than sixteen (16) clock hours of education in subjects pertinent to the duties and responsibilities of a bail bondsman, including all laws and regulations related thereto. Further, each licensee shall complete biennially not less than sixteen (16) clock hours of continuing education in the subjects prior to renewal of the license , provided that licensees that have maintained a license as a bail bondsman for twenty (20) or more years shall be exempt from any continuing edu cation requirements. Such continuing education shall not include a written or oral examination. Provided, any person licensed as a bail bondsman prior to November 1, 1989, shall not be required to complete sixteen (16) clock hours of education prior to li censure but shall be subject to the sixteen-hour continuing education requirement in order to renew the license, except that a licensed bail bondsman who is sixty -five (65) years of age or older and who has been licensed as a bail ENGR. H. B. NO. 2403 Page 37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 bondsman for fifteen (15) years or more shall be exempt from both the education and continuing education requirements of this section. B. Education shall be provided for bail bondsman licensure as required by this section; provided that the Insurance Commissioner shall approve the courses offered and provided further such education meets the general standards for education established by the Insurance Commissioner. The education provider shall submit biennially a fee of Two Hundred Dollars ($200.00), payable to the Insurance Commi ssioner, which shall be deposited with the State Treasurer for the purposes of fulfilling and accomplishing the conditions and purposes of this section. C. Any person who falsely represents to the Insurance Commissioner that compliance with this section h as been met shall be subject, after notice and hearing, to the penalties and fines set out in Section 1310 of this title. D. The Commissioner shall adopt and promulgate such rules as are necessary for effective administration of this section. SECTION 14. AMENDATORY 59 O.S. 2011, Section 1309, as last amended by Section 3, Chapter 110, O.S.L. 2015 (59 O.S. Supp. 2020, Section 1309), is amended to read as follows: Section 1309. A. A renewal license shall be issued by the Insurance Commissioner to a licensee who has continuously maintained same in effect, without further examination, upon payment of a ENGR. H. B. NO. 2403 Page 38 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 renewal fee of Two Hundred Dollars ($200.00) for a cash, property, surety, or professional bail bondsman or One Thousand Dollars ($1,000.00) for a multicounty agent bondsman, and proof of completion of sixteen (16) hours of continuing education as required by Section 1308.1 of this title. The renewal fee for licenses expiring September 15, 2012, shall be prorated to the birth month of the bondsman. Thereafter the renewal fee shall be submitted biennially by the last day of the birth month of the bondsman. Such licensee shall in all other respects be required to comply with and be subject to the provisions of Section 1301 et seq. of thi s title. B. An individual holding a professional bondsman license or multicounty agent bondsman license shall also provide an annual audited financial statement prepared by an accounting firm or individual holding a permit to practice public accounting in this state in accordance with the Statements on Auditing Standards promulgated by the Auditing Standards Board of the American Institute of Certified Public Accountants showing assets, liabilities, and net worth, the annual statement to be as of a date not earlier than June 30. The statements shall be attested to by an unqualified opinion of the accounting firm or individual holding a permit to practice public accounting in this state that prepared the statement or statements. The statement shall be subm itted annually by the last day of September. ENGR. H. B. NO. 2403 Page 39 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 C. An individual holding a property bondsman license shall also provide an annual county assessor's written statement stating the property's assessed value for each property used to post bonds and a written statement from any lien holder stating the current payoff amount on each lien for each property used to post bonds. The written statements shall be submitted annually by the last day of September. D. If the license is not renewed or the renewal fee is not p aid by the last day of the birth month of the bondsman, the license shall expire inactivate automatically pursuant to Section 1304 of this title. After expiration, the license may be reinstated for up to one (1) year following the expiration date. If aft er the one- year date the license has not been reinstated, the licensee shall be required to apply for a license as a new applicant. E. Reinstatement fees shall be double the original fee. SECTION 15. This act shall become effective Novembe r 1, 2021. Passed the House of Representatives the 11th day of March, 2021. Presiding Officer of the House of Representatives Passed the Senate the ___ day of __________, 2021. Presiding Officer of the Senate