An Act
ENROLLED 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 1435.13, as amended by
Section 3, Chapter 294, O.S.L. 2019 (36 O.S. Supp.
2020, Section 1435.13), which relates to the Oklahoma
Producer Licensing Act; requiring certain
notification before termination of certain license;
providing exemption; and providing an effective date.
SUBJECT: Licenses and certificates
BE IT ENACTED BY THE PEOPLE O F THE STATE OF OKLAHOMA:
SECTION 1. 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 Insu rance 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, for 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 Commissioner or of another
state’s Insurance Commissioner;
ENR. H. B. NO. 2403 Page 2
3. Obtaining or attempting to obtain a license through
misrepresentation or fraud;
4. Improperly withholding, misappropriating or converting any
monies or properties received in the c ourse of doing insurance
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 practice 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 pro ducer license, or its equivalent,
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 trans action;
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;
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.
ENR. H. B. NO. 2403 Page 3
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 Commis sioner shall notify the applicant 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. The Insurance Department shall only terminate a license
issued pursuant to the Oklahoma Producer Licensing A ct that failed
to renew after a twelve -month inactive period upon notification by
first-class mail ninety (90) days prior to termination of the
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 license e’s violation was known or
should have been known by one or more of the partners, officers or
managers acting on behalf of the partnership 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
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 ENR. H. B. NO. 2403 Page 4
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 avail able 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
Insurance Code has been commen ced, 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 issu ed by the Commissioner under any statute shall
not be available for public inspection. The residence address,
residence telephone number, 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 lice nse of
a resident or nonresident of this state, the Commissioner shall
notify the Central Office of the National Association of Insurance
Commissioners, or its appropriate nonprofit affiliates and the
Insurance Commissioner of each state for whom the Commi ssioner has
executed a certificate of licensure status. ENR. H. B. NO. 2403 Page 5
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 2. This act shall become effective November 1, 2021.
ENR. H. B. NO. 2403 Page 6
Passed the House of Representatives the 28th day of April, 2021.
Presiding Officer of the House
of Representatives
Passed the Senate the 14th day of April, 2021.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________