Oklahoma 2022 Regular Session

Oklahoma House Bill HB2403 Compare Versions

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Version 2 (New)

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1		-	An Act
2		-	ENROLLED HOUSE
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	28	+	ENGROSSED SENATE AMENDMENTS
	29	+	TO
	30	+	ENGROSSED HOUSE
3	31		BILL NO. 2403 By: Russ of the House
4	32
5	33		and
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7	35		Quinn of the Senate
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9	37
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14	38		An Act relating to licenses and certificates;
	39	+	amending 36 O.S. 2011, Section 617, which relates to
	40	+	***amending 36 O.S. 2011, Section 619, wh ich relates
	41	+	to revocation or suspension of insurance certificate;
	42	+	***amending 36 O.S. 2011, Section 2727.1, which
	43	+	relates to fraternal benefit societies; requiring
	44	+	inactivation of license for failure to qualify for
	45	+	renewal; imposing reinstatement fee ; *** providing
	46	+	continuing education exemption; requiring
	47	+	inactivation of license for failure to qualify for
	48	+	renewal; imposing reinstatement fee; allowing ***
	49	+	date.
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	53	+
	54	+	AMENDMENT NO. 1. Page 1, strike the title, enacting clause and
	55	+	entire bill and insert
	56	+
	57	+	“An Act relating to licenses and certificates;
15	58		amending 36 O.S. 2011, Section 1435.13, as amended by
16	59		Section 3, Chapter 294, O.S.L. 2019 (36 O.S. Supp.
17	60		2020, Section 1435.13), which relates to the Oklahoma
18	61		Producer Licensing Act; requiring certain
19	62		notification before termination of certain license;
20	63		providing exemption; and providing an effective date.
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22	65
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25		-	SUBJECT: Licenses and certificates
26		-
27	68		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
28		-
29	69		SECTION 1. AMENDATORY 36 O.S. 2011, Section 1435.13, as
30	70		amended by Section 3, Ch apter 294, O.S.L. 2019 (36 O.S. Supp. 2020,
31	71		Section 1435.13), is amended to read as follows:
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32	97
33	98		Section 1435.13. A. The Insurance Commissioner may place on
34	99		probation, censure, suspend, revoke or refuse to issue or renew a
35	100		license issued pursuant to the Okla homa Producer Licensing Act or
36	101		may levy a civil penalty in accordance with subsection D of this
37	102		section or any combination of actions, for any one or more of the
38	103		following causes:
39		-
40	104		1. Providing incorrect, misleading, incomplete or materially
41	105		untrue information in the license application;
42		-
43	106		2. Violating any insurance laws, or violating any regulation,
44	107		subpoena or order of the Insurance Commissioner or of another
45	108		state’s Insurance Commissioner;
46		-	ENR. H. B. NO. 2403 Page 2
47	109		3. Obtaining or attempting to obtain a license through
48	110		misrepresentation or fraud;
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50	111		4. Improperly withholding, misappropriating or converting any
51	112		monies or properties received in the course of doing insurance
52	113		business;
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54	114		5. Intentionally misrepresenting the terms of an actual or
55	115		proposed insurance contract or application for insurance;
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57	116		6. Having been convicted of a felony;
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59	117		7. Having admitted or been found to have committed any
60	118		insurance unfair trade practice or fraud;
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62	119		8. Using fraudulent, coercive , or dishonest practices, or
63	120		demonstrating incompetence, untrustworthines s or financial
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64	147		irresponsibility in the conduct of business in this state or
65	148		elsewhere;
66		-
67	149		9. Having an insurance producer license, or its equivalent,
68	150		denied, suspended, censured, placed on probation or revoked in any
69	151		other state, province, district or territ ory;
70		-
71	152		10. Forging another’s name to an application for insurance or
72	153		to any document related to an insurance transaction;
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74	154		11. Improperly using notes or any other reference material to
75	155		complete an examination for an insurance license;
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77	156		12. Knowingly accepti ng insurance business from an individual
78	157		who is not licensed;
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80	158		13. Failing to comply with an administrative or court order
81	159		imposing a child support obligation;
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83	160		14. Failing to pay state income tax or comply with any
84	161		administrative or court order directing payment of state income tax;
85		-
86	162		15. Failing to respond to an inquiry from the Department as
87	163		required in Section 1250.4 of this title; or
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89	164		16. Any cause for which an original issuance of a license could
90	165		have been refused.
91		-	ENR. H. B. NO. 2403 Page 3
92	166		B. 1. In the event that the action by the Insurance
93	167		Commissioner is to nonrenew or to deny an application for a license,
94	168		the Insurance Commissioner shall notify the applicant or licensee
95	169		and advise the applicant or licensee, in writing, of the reason for
96	170		the denial or nonrenewal of the appl icant’s or licensee’s license.
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97	197		The applicant or licensee may make written demand upon the Insurance
98	198		Commissioner within thirty (30) days of the date of notification of
99	199		the notification by the Insurance Commissioner for a hearing before
100	200		the Insurance Commissioner or an independent hearing examiner to
101	201		determine the reasonableness of the Insurance Commissioner’s action.
102	202		The hearing shall be heard within a reasonable time period and shall
103	203		be held pursuant to the Oklahoma Administrative Procedures Act.
104		-
105	204		2. The Insurance Department shall only terminate a license
106	205		issued pursuant to the Oklahoma Producer Licensing Act that failed
107	206		to renew after a twelve -month inactive period upon notification by
108	207		first-class mail ninety (90) days prior to termination of the
109	208		license. The provisions of this subsection shall not apply to a
110	209		licensee that willfully and knowingly violates any provision of this
111	210		Code as to which refusal, suspension or revocation is mandatory.
112		-
113	211		C. The license of a business entity may be suspended, revoked
114	212		or refused if the Insurance Commissioner finds, after opportunity
115	213		for hearing, that an individual licensee’s violation was known or
116	214		should have been known by one or more of the partners, officers or
117	215		managers acting on behalf of the partnership or corporatio n and the
118	216		violation was neither reported to the Insurance Commissioner nor
119	217		corrective action taken.
120		-
121	218		D. In addition to or in lieu of any applicable denial,
122	219		probation, censure, suspension or revocation of a license, a person
123	220		may, after opportunity for heari ng, be subject to a civil fine of
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124	247		not less than One Hundred Dollars ($100.00) nor more than One
125	248		Thousand Dollars ($1,000.00) for each occurrence. The penalty may
126	249		be enforced in the same manner in which civil judgments may be
127	250		enforced.
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129	251		E. Every licensee l icensed pursuant to the provisions of the
130	252		Oklahoma Producer Licensing Act shall keep at the licensee’s place
131	253		of business the usual and customary records pertaining to
132	254		transactions authorized by the license. All records as to any
133	255		particular transactions sh all be kept available and open to the
134	256		inspection of the Commissioner at any time during business hours
135	257		during the three (3) years immediately following the date of
136		-	completion of the transaction. The Commissioner may require a ~~ENR. H. B. NO. 2403 Page 4~~
	258	+	completion of the transaction. The Commissioner may require a
137	259		financial or market conduct e xamination during any investigation of
138	260		a licensee. The cost of such examination shall be apportioned among
139	261		all of the appointing insurers of the licensee.
140		-
141	262		F. The Insurance Commissioner shall retain the authority to
142	263		enforce the provisions of and impose an y penalty or remedy
143	264		authorized by the Oklahoma Producer Licensing Act and Title 36 of
144	265		the Oklahoma Statutes this title against any person who is under
145	266		investigation for or charged with a violation of the Oklahoma
146	267		Producer Licensing Act or Title 36 of the Oklahoma Statutes this
147	268		title even if the person’s license or registration has been
148	269		surrendered or has lapsed by operation of law.
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150	296		G. Files pertaining to investigations or legal matters which
151	297		contain information concurring a current and ongoing investigatio n
152	298		of allegations of violations of the Oklahoma Insurance Code by a
153	299		licensed agent shall not be available for public inspection without
154	300		proper judicial authorization; however, a licensee under
155	301		investigation for alleged violations of the Oklahoma Insurance C ode,
156	302		or against whom an action for alleged violations of the Oklahoma
157	303		Insurance Code has been commenced, may view evidence and complaints
158	304		pertaining to the investigation, other than privileged information,
159	305		at reasonable times at the Commissioner’s office. All qualification
160	306		examination materials, booklets and answers for any license
161	307		authorized to be issued by the Commissioner under any statute shall
162	308		not be available for public inspection. The residence address,
163	309		residence telephone number, birth date , and Social Security number
164	310		of a licensee shall not be available for public inspection. A
165	311		separate business or mailing address provided by the licensee shall
166	312		be considered a public record. If the residence and business
167	313		addresses or residence and business telep hone numbers are the same,
168	314		such addresses or telephone numbers shall be considered a public
169	315		record.
170		-
171	316		H. The Commissioner shall promptly notify all appointing
172	317		insurers, where applicable, and the licensee regarding any censure,
173	318		suspension, revocation or term ination of license by the
174	319		Commissioner.
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176	346		I. Upon suspension, revocation or termination of the license of
177	347		a resident or nonresident of this state, the Commissioner shall
178	348		notify the Central Office of the National Association of Insurance
179	349		Commissioners, or it s appropriate nonprofit affiliates and the
180	350		Insurance Commissioner of each state for whom the Commissioner has
181		-	executed a certificate of licensure status. ENR. H. B. NO. 2403 Page 5
182		-
	351	+	executed a certificate of licensure status.
183	352		J. The Commissioner may issue a duplicate license for any lost,
184	353		stolen or destroyed license issued pu rsuant to the Oklahoma Producer
185	354		Licensing Act upon an affidavit of the licensee prescribed by the
186	355		Commissioner concerning the facts of such loss, theft or
187	356		destruction.
188		-
189		-	SECTION 2. This act shall become effective November 1, 2021.
190		-
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194		-	ENR. H. B. NO. 2403 Page 6
195		-	Passed the House of Representatives the 28th day of April, 2021.
	357	+	SECTION 2. This act shall become effective November 1, 2021. ”
	358	+
	359	+
	360	+	Passed the Senate the 14th day of April, 2021.
	361	+
	362	+
	363	+
	364	+	Presiding Officer of the Senate
	365	+
	366	+
	367	+	Passed the House of Representatives the ____ day of __________,
	368	+	2021.
196	369
197	370
198	371
199	372		Presiding Officer of the House
200	373		of Representatives
201	374
202		-	Passed the Senate the 14th day of April, 2021.
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	400	+	ENGROSSED HOUSE
	401	+	BILL NO. 2403 By: Russ of the House
	402	+
	403	+	and
	404	+
	405	+	Quinn of the Senate
	406	+
	407	+
	408	+
	409	+
	410	+
	411	+
	412	+	An Act relating to licenses and certificates;
	413	+	amending 36 O.S. 2011, Section 617, which relates to
	414	+	insurance certificates; requiring inactivation of
	415	+	license for failure to qualify for renewal; imposing
	416	+	reinstatement fee; allowing termination of license
	417	+	after certain time period; providing exemption;
	418	+	amending 36 O.S. 2011, Section 618, which relates to
	419	+	mandatory revocation or suspension; requiring
	420	+	inactivation of license for failure to qualify for
	421	+	renewal; imposing reinstatement fee; allowing
	422	+	termination of license after certain time period;
	423	+	providing exemption; amending 36 O.S. 2011, Section
	424	+	619, which relates to revocation or suspension of
	425	+	insurance certificate; requiring inactivation of
	426	+	certificate for failure to qual ify for renewal;
	427	+	imposing reinstatement fee ; allowing termination of
	428	+	certificate after certain time period; providing
	429	+	exemption; amending 36 O.S. 2011, Sections 1435.13,
	430	+	as amended by Section 3, Chapter 294, O.S.L. 2019 and
	431	+	1435.29, as amended by Section 7 , Chapter 11, O.S.L.
	432	+	2012 (36 O.S. Supp. 2020, Sections 1435.13 and
	433	+	1435.29), which relate to the Oklahoma Producer
	434	+	Licensing Act; requiring inactivation of license for
	435	+	failure to qualify for renewal; imp osing
	436	+	reinstatement fee; allowing termination of lic ense
	437	+	after certain time period; providing exemption;
	438	+	providing continuing education exemption; amending 36
	439	+	O.S. 2011, Section 2727.1, which relates to fraternal
	440	+	benefit societies; requiring inactivation of license
	441	+	for failure to qualify for rene wal; imposing
	442	+	reinstatement fee; allowing termination of license
	443	+	after certain time period; providing exemption;
	444	+	amending 36 O.S. 2011, Section 4055.4, which relates
	445	+	to the Viatical Settlements Act of 2008 ; requiring
	446	+	inactivation of license for failure to qualify for
	447	+
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	473	+	renewal; imposing reinstatement fee; allowing
	474	+	termination of license after certain time period;
	475	+	providing exemption; amending 36 O.S. 2011, Sections
	476	+	6217, as last amended by Section 14, Chapter 269,
	477	+	O.S.L. 2013 and 6220, as last amended by Section 10,
	478	+	Chapter 294, O.S.L. 2019 (36 O.S. Supp. 2020,
	479	+	Sections 6217 and 6220), which relate to the
	480	+	Insurance Adjusters Licensing Act; providing
	481	+	continuing education exemption; requiring
	482	+	inactivation of license for failure to qualify for
	483	+	renewal; imposing reinstatemen t fee; allowing
	484	+	termination of license after certain time period;
	485	+	providing exemption; amending 36 O.S. 2011, Sections
	486	+	6560 and 6561, which relate to the Hospital and
	487	+	Medical Services Utilization Review Act; requiring
	488	+	inactivation of license for failure to qualify for
	489	+	renewal; imposing reinstatement fee ; allowing
	490	+	termination of license after certain time period;
	491	+	providing exemption; amending 59 O.S. 2011, Sections
	492	+	1304, as amended by Section 1, Chapter 150, O.S.L.
	493	+	2013, 1308.1, as amended by Section 1, Chap ter 259,
	494	+	O.S.L. 2019 and 1309, as last amended by Section 3,
	495	+	Chapter 110, O.S.L. 2015 (59 O.S. Supp. 2020,
	496	+	Sections 1304, 1308.1 and 1309), which relate to bail
	497	+	bondsmen; requiring inactivation of license for
	498	+	failure to qualify for rene wal; imposing
	499	+	reinstatement fee; allowing termination of license
	500	+	after certain time period; providing exemption;
	501	+	providing continuing education exemption; eliminating
	502	+	automatic expiration; and providing an effective
	503	+	date.
	504	+
	505	+
	506	+
	507	+
	508	+
	509	+	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAH OMA:
	510	+	SECTION 3. AMENDATORY 36 O.S. 2011, Section 617, is
	511	+	amended to read as follows:
	512	+	Section 617. A. All certificates of authority shall, beginning
	513	+	November 1, 2002, be perpetual and automatically renewed as of March
	514	+
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	540	+	1 of each year, unless the insurer fails to qualify for renewal
	541	+	pursuant to the requirements of the Insurance Code .
	542	+	B. The Insurance Commissioner may amend a certificate of
	543	+	authority at any time to accord with changes in the insurer's
	544	+	charter or insuring powers. If the insurer or holder of the license
	545	+	fails to qualify for a renewal, the license shall be inactive. If
	546	+	the license has been inactive for less than twelve (12) months and
	547	+	the insurer or holder of the license meets the requirements for
	548	+	renewal, the license shall be reinstated after the insurer or holder
	549	+	of the license pays a fee of Two Hundred Fifty Dollars ($250.00 ) and
	550	+	no reexamination shall be required . After the license has been
	551	+	inactive for more than twelve (12) months, the license shall be
	552	+	terminated. The Department shall only terminate a license that
	553	+	failed to renew after the twelve-month inactive period required
	554	+	under this subsection and upon notification by first -class mail
	555	+	ninety (90) days prior to termination of any license. The
	556	+	provisions of this subsection shall not apply to an insurer or
	557	+	holder of a license that willfully and knowingly violates any
	558	+	provision of this Code as to which refusal, suspension or revocation
	559	+	is mandatory.
	560	+	SECTION 4. AMENDATORY 36 O.S. 2011, S ection 618, is
	561	+	amended to read as follows:
	562	+
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	588	+	Section 618. A. The Insurance Commissioner shall refuse to
	589	+	renew or shall revoke or suspend an insurer's certificate of
	590	+	authority:
	591	+	1. If such action is required by any provision of this Code ,;
	592	+	or
	593	+	2. If the insurer no longer meets the requirements for the
	594	+	authority originally granted, on account of deficiency in assets or
	595	+	otherwise.
	596	+	B. If the insurer or holder of the license fails to qualify for
	597	+	a renewal, the license shall be inactive. If the license has been
	598	+	inactive for less than twelve (12) months and the insurer or holder
	599	+	of the license meets the requirements for renewal, the license shall
	600	+	be reinstated after the insurer or holder of the license pays a fee
	601	+	of Two Hundred Fifty Dollars ($250.00 ) and no reexamination shall be
	602	+	required. After the license has been inactive for more than twelve
	603	+	(12) months, the license shall be terminated. The Department shall
	604	+	only terminate a license that failed to renew after the twelve-month
	605	+	inactive period required under t his subsection and upon notification
	606	+	by first-class mail ninety (90) days prior to termination of any
	607	+	license. The provisions of this subsection shall not apply to an
	608	+	insurer or holder of a license that willfully and knowingly violates
	609	+	any provision of this Code as to which refusal, suspension or
	610	+	revocation is mandatory.
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	637	+	SECTION 5. AMENDATORY 36 O.S. 2011, Section 619, is
	638	+	amended to read as follows:
	639	+	Section 619. A. The Except as otherwise provided in this
	640	+	section, the Insurance Commissioner may, after opportunity for a
	641	+	hearing, refuse to renew, or may revoke or suspend an insurer's
	642	+	certificate of authority, in addition to other grounds in this Code,
	643	+	if the insurer:
	644	+	1. Violates any provision of this Code other than those as to
	645	+	which refusal, suspension, or revocation is mandatory;
	646	+	2. Knowingly fails to comply with any lawful rule or order of
	647	+	the Insurance Commissioner;
	648	+	3. Is found by the Insurance Commissioner to be in unsound
	649	+	condition or in such condition as to render its furt her transaction
	650	+	of insurance in this state hazardous to its policyholders or to the
	651	+	people of this state;
	652	+	4. Without reasonable cause compels claimants under its
	653	+	policies to accept less than the amount due them or to bring suit
	654	+	against it to secure full p ayment;
	655	+	5. Refuses to be examined or to produce its accounts, records,
	656	+	and files for examination by the Insurance Commissioner when
	657	+	required;
	658	+	6. Fails to pay any final judgment rendered against it in this
	659	+	state within thirty (30) days after the judgment becomes final; or
	660	+
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	686	+	7. Is affiliated with and under the same general management or
	687	+	interlocking directorate or ownership as another insurer which
	688	+	transacts direct insurance in this state without having a
	689	+	certificate of authority therefor, except as permitte d to a surplus
	690	+	line insurer pursuant to Sections 1101 through 1120 of this title.
	691	+	B. In addition to or in lieu of any applicable revocation or
	692	+	suspension of an insurer's certificate of authority, any insurer who
	693	+	knowingly and willfully violates this Code may be subject to a civil
	694	+	penalty of not more than Five Thousand Dollars ($5,000.00) for each
	695	+	occurrence.
	696	+	C. In addition to or in lieu of any sanction, the Commissioner
	697	+	may require an insurer to restrict its insurance writings, obtain
	698	+	additional contribut ions to surplus, withdraw from the state,
	699	+	reinsure all or part of its business, increase capital, surplus,
	700	+	deposits or any other account for the security of policyholders or
	701	+	creditors, or provide independent actuarial review.
	702	+	D. If the insurer fails to qu alify for a renewal, the insurance
	703	+	certificate shall be inactive. If the insurance certificate has
	704	+	been inactive for less than twelve (12) months and the insurer meets
	705	+	the requirements for renewal, the insurance certificate shall be
	706	+	reinstated after the i nsurer pays a fee of Two Hundred Fifty Dollars
	707	+	($250.00) and no reexamination shall be required . After the
	708	+	insurance certificate has been inactive for more than twelve (12)
	709	+	months, the insurance certificate shall be terminated. The
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	736	+	Department shall only terminate an insurance certificate that failed
	737	+	to renew after the twelve-month inactive period required under this
	738	+	subsection and upon notification by first -class mail ninety (90)
	739	+	days prior to termination of any insurance certificate. The
	740	+	provisions of this subsection shall not apply to an insurer that
	741	+	willfully and knowingly violates any provision of this Code as to
	742	+	which refusal, suspension or revocation is mandatory.
	743	+	SECTION 6. AMENDATORY 36 O.S. 2011, Section 1435.13, as
	744	+	amended by Section 3, Chapter 294, O.S.L. 2019 (36 O.S. Supp. 2020,
	745	+	Section 1435.13), is amended to read as follows:
	746	+	Section 1435.13 A. The Except as otherwise provided in this
	747	+	section, the Insurance Commissioner may place on probation, censure,
	748	+	suspend, revoke or refuse to issue or renew a license issued
	749	+	pursuant to the Oklahoma Producer Licensing Act or may levy a civil
	750	+	penalty in accordance with subsection D of this section or any
	751	+	combination of actions, for any one or more of the following causes:
	752	+	1. Providing incorrect, misleading, incomplete or materially
	753	+	untrue information in the license application;
	754	+	2. Violating any insurance laws, or violating any regulation,
	755	+	subpoena or order of the Insurance Commissioner or of another
	756	+	state's Insurance Commissione r;
	757	+	3. Obtaining or attempting to obtain a license through
	758	+	misrepresentation or fraud;
	759	+
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	785	+	4. Improperly withholding, misappropriating or converting any
	786	+	monies or properties received in the course of doing insurance
	787	+	business;
	788	+	5. Intentionally misrepresenting the terms of an actual or
	789	+	proposed insurance contract or application for insurance;
	790	+	6. Having been convicted of a felony;
	791	+	7. Having admitted or been found to have committed any
	792	+	insurance unfair trade practice or fraud;
	793	+	8. Using fraudulent, coercive, or dishonest practices, or
	794	+	demonstrating incompetence, untrustworthiness or financial
	795	+	irresponsibility in the conduct of business in this state or
	796	+	elsewhere;
	797	+	9. Having an insurance producer license, or its equivalent,
	798	+	denied, suspended, censured, placed on probation or revoked in any
	799	+	other state, province, district or territory;
	800	+	10. Forging another's name to an application for insurance or
	801	+	to any document related to an insurance transaction;
	802	+	11. Improperly using notes or any other reference material to
	803	+	complete an examination for an insurance license;
	804	+	12. Knowingly accepting insurance business from an individual
	805	+	who is not licensed;
	806	+	13. Failing to comply with an administrative or court order
	807	+	imposing a child support obligation;
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	834	+	14. Failing to pay state i ncome tax or comply with any
	835	+	administrative or court order directing payment of state income tax;
	836	+	15. Failing to respond to an inquiry from the Department as
	837	+	required in Section 1250.4 of this title; or
	838	+	16. Any cause for which an original issuance of a l icense could
	839	+	have been refused.
	840	+	B. 1. In the event that the action by the Insurance
	841	+	Commissioner is to nonrenew or to deny an application for a license,
	842	+	the Insurance Commissioner shall notify the applicant or licensee
	843	+	and advise the applicant or license e, in writing, of the reason for
	844	+	the denial or nonrenewal of the applicant's or licensee's license.
	845	+	The applicant or licensee may make written demand upon the Insurance
	846	+	Commissioner within thirty (30) days of the date of notification of
	847	+	the notification by the Insurance Commissioner for a hearing before
	848	+	the Insurance Commissioner or an independent hearing examiner to
	849	+	determine the reasonableness of the Insurance Commissioner's action.
	850	+	The hearing shall be heard within a reasonable time period and shall
	851	+	be held pursuant to the Oklahoma Administrative Procedures Act.
	852	+	2. If the licensee fails to qualify for a renewal, the license
	853	+	shall be inactive. If the license has been inactive for less than
	854	+	twelve (12) months and the licensee meets the requirements for
	855	+	renewal, the license shall be reinstated after the licensee pays a
	856	+	fee of Two Hundred Fifty Dollars ($250.00 ) and no reexamination
	857	+	shall be required. After the license has been inactive for more
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	884	+	than twelve (12) months, the license shall be terminated. The
	885	+	Department shall only terminate a license that failed to renew after
	886	+	the twelve-month inactive period required under this subsection and
	887	+	upon notification by first -class mail ninety (90) days prior to
	888	+	termination of any license. The provisions of this subsection shall
	889	+	not apply to a licensee that willfully and knowingly violates any
	890	+	provision of this Code as to which refusal, suspension or revocation
	891	+	is mandatory.
	892	+	C. The license of a business entity may be suspended, revoked
	893	+	or refused if the Insurance Commissioner finds, after opportunity
	894	+	for hearing, that an individual licensee's violation was known or
	895	+	should have been known by one or more of the partners, officers or
	896	+	managers acting on behalf of the partnership or corporation and the
	897	+	violation was neither reported to the Insurance Commissioner nor
	898	+	corrective action taken.
	899	+	D. In addition to or in lieu of any applicable denial,
	900	+	probation, censure, suspension or revocation of a license, a person
	901	+	may, after opportunity for hearing, be subject to a civil fine of
	902	+	not less than One Hundred Dollars ($100.00) nor more than One
	903	+	Thousand Dollars ($1,000.00) for each occurrence. The penalty may
	904	+	be enforced in the same manner in which civil judgments may be
	905	+	enforced.
	906	+	E. Every licensee licensed pursuant to the pr ovisions of the
	907	+	Oklahoma Producer Licensing Act shall keep at the licensee's place
	908	+
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	934	+	of business the usual and customary records pertaining to
	935	+	transactions authorized by the license. All records as to any
	936	+	particular transactions shall be kept available and open to the
	937	+	inspection of the Commissioner at any time during business hours
	938	+	during the three (3) years immediately following the date of
	939	+	completion of the transaction. The Commissioner may require a
	940	+	financial or market conduct examination during any inve stigation of
	941	+	a licensee. The cost of such examination shall be apportioned among
	942	+	all of the appointing insurers of the licensee.
	943	+	F. The Insurance Commissioner shall retain the authority to
	944	+	enforce the provisions of and impose any penalty or remedy
	945	+	authorized by the Oklahoma Producer Licensing Act and Title 36 of
	946	+	the Oklahoma Statutes this title against any person who is under
	947	+	investigation for or charged with a violation of the Oklahoma
	948	+	Producer Licensing Act or Title 36 of the Oklahoma Statutes this
	949	+	title even if the person's license or registration has been
	950	+	surrendered or has lapsed by operation of law.
	951	+	G. Files pertaining to investigations or legal matters which
	952	+	contain information concurring a current and ongoing investigation
	953	+	of allegations of violat ions of the Oklahoma Insurance Code by a
	954	+	licensed agent shall not be available for public inspection without
	955	+	proper judicial authorization; however, a licensee under
	956	+	investigation for alleged violations of the Oklahoma Insurance Code,
	957	+	or against whom an ac tion for alleged violations of the Oklahoma
	958	+
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	984	+	Insurance Code has been commenced, may view evidence and complaints
	985	+	pertaining to the investigation, other than privileged information,
	986	+	at reasonable times at the Commissioner's office. All qualification
	987	+	examination materials, booklets and answers for any license
	988	+	authorized to be issued by the Commissioner under any statute shall
	989	+	not be available for public inspection. The residence address,
	990	+	residence telephone number, birth date, and Social Security number
	991	+	of a licensee shall not be available for public inspection. A
	992	+	separate business or mailing address provided by the licensee shall
	993	+	be considered a public record. If the residence and business
	994	+	addresses or residence and business telephone numbers are the same,
	995	+	such addresses or telephone numbers shall be considered a public
	996	+	record.
	997	+	H. The Commissioner shall promptly notify all appointing
	998	+	insurers, where applicable, and the licensee regarding any censure,
	999	+	suspension, revocation or termination of license by the
	1000	+	Commissioner.
	1001	+	I. Upon suspension, revocation or termination of the license of
	1002	+	a resident or nonresident of this state, the Commissioner shall
	1003	+	notify the Central Office of the National Association of Insurance
	1004	+	Commissioners, or its appropriate nonprofit af filiates and the
	1005	+	Insurance Commissioner of each state for whom the Commissioner has
	1006	+	executed a certificate of licensure status.
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	1033	+	J. The Commissioner may issue a duplicate license for any lost,
	1034	+	stolen or destroyed license issued pursuant to the Oklahoma Pro ducer
	1035	+	Licensing Act upon an affidavit of the licensee prescribed by the
	1036	+	Commissioner concerning the facts of such loss, theft or
	1037	+	destruction.
	1038	+	SECTION 7. AMENDATORY 36 O.S. 2011, Section 1435.29, as
	1039	+	amended by Section 7, Chapter 11 , O.S.L. 2012 (36 O.S. Supp. 2020,
	1040	+	Section 1435.29), is amended to read as follows:
	1041	+	Section 1435.29 A. 1. Each insurance producer, with the
	1042	+	exception of title producers and, aircraft title producers ,
	1043	+	producers that have maintained an insurance producer license for
	1044	+	twenty (20) or more years or any other producer exempt by rule,
	1045	+	shall, biennially, complete not less than twenty -one (21) clock
	1046	+	hours of continuing insurance education. Such education may include
	1047	+	a written or oral examination.
	1048	+	2. Each customer service representative shall, biennially,
	1049	+	complete not less than ten (10) clock hours of continuing insurance
	1050	+	education.
	1051	+	3. Licensees, with the exception of title producers and
	1052	+	aircraft title producers or any other producer exempt by rule, shall
	1053	+	complete, in addition to the foregoing, three (3) clock hours of
	1054	+	ethics course work in this same period.
	1055	+	4. Each title producer and aircraft title producer shall,
	1056	+	biennially, complete not less than sixteen (16) clock hours of
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	1083	+	continuing insurance education, two (2) hours of which shall be
	1084	+	ethics course work, which shall cover the line for which the
	1085	+	producer is licensed. Such education may include a written or oral
	1086	+	examination.
	1087	+	B. 1. The Insurance Commissioner shall approve courses and
	1088	+	providers of continuing e ducation. The Insurance Department may use
	1089	+	one or more of the following to review and provide a nonbinding
	1090	+	recommendation to the Insurance Commissioner on approval or
	1091	+	disapproval of courses and providers of continuing education:
	1092	+	a. employees of the Insura nce Commissioner,
	1093	+	b. a continuing education advisory committee, or
	1094	+	c. an independent service whose normal business
	1095	+	activities include the review and approval of
	1096	+	continuing education courses and providers. The
	1097	+	Commissioner may negotiate agreements with suc h
	1098	+	independent service to review documents and other
	1099	+	materials submitted for approval of courses and
	1100	+	providers and provide the Commissioner with its
	1101	+	nonbinding recommendation. The Commissioner may
	1102	+	require such independent service to collect the fee
	1103	+	charged by the independent service for reviewing
	1104	+	materials provided for review directly from the course
	1105	+	providers.
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	1132	+	The Insurance Commissioner has sole authority to approve courses
	1133	+	and providers of continuing education. If the Insurance
	1134	+	Commissioner uses one of t he entities listed above to provide a
	1135	+	nonbinding recommendation, the Commissioner shall adopt or decline
	1136	+	to adopt the recommendation within thirty (30) days of receipt of
	1137	+	the recommendation. In the event the Insurance Commissioner takes
	1138	+	no action within said thirty-day period, the recommendation made to
	1139	+	the Commissioner will be deemed to have been adopted by the
	1140	+	Commissioner.
	1141	+	The Insurance Commissioner may certify providers and courses
	1142	+	offered for license examination study. The Insurance Department
	1143	+	shall use employees of the Insurance Commissioner to review and
	1144	+	certify license examination study program providers and courses.
	1145	+	2. Each insurance company shall be allowed to provide
	1146	+	continuing education to insurance producers and customer service
	1147	+	representatives as required by this section; provided that such
	1148	+	continuing education meets the general standards for education
	1149	+	otherwise established by the Insurance Commissioner.
	1150	+	3. An insurance producer who, during the time period prior to
	1151	+	renewal, participates in a professional designation program,
	1152	+	approved by the Insurance Commissioner, shall be deemed to have met
	1153	+	the biennial requirement for continuing education.
	1154	+	The curriculum for the program shall total a minimum of twenty -
	1155	+	four (24) hours within a twenty -four-month period. Each approved
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	1182	+	professional designation program included in this section shall be
	1183	+	reviewed for quality and compliance every three (3) years in
	1184	+	accordance with standardized criteria promulgated by rule.
	1185	+	Continuation of approved status is contin gent upon the findings of
	1186	+	the review. The list of professional designation programs approved
	1187	+	under this paragraph shall be made available to producers and
	1188	+	providers annually.
	1189	+	4. The Insurance Department may promulgate rules providing that
	1190	+	courses or programs offered by professional associations shall
	1191	+	qualify for presumptive continuing education credit approval. The
	1192	+	rules shall include standardized criteria for reviewing the
	1193	+	professional associations' mission, membership, and other relevant
	1194	+	information, and shall provide a procedure for the Department to
	1195	+	disallow all or part of a presumptively approved course.
	1196	+	Professional association courses approved in accordance with this
	1197	+	paragraph shall be reviewed every three (3) years to determine
	1198	+	whether they continue to qualify for continuing education credit.
	1199	+	5. Subject to approval by the Commissioner, the active
	1200	+	membership of the licensed producer or broker in local, regional,
	1201	+	state, or national professional insurance organizations or
	1202	+	associations may be approve d for up to one (1) annual hour of
	1203	+	instruction. The hour shall be credited upon timely filing with the
	1204	+	Commissioner, or designee of the Commissioner, and appropriate
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	1231	+	written evidence acceptable to the Commissioner of such active
	1232	+	membership in the organiza tion or association.
	1233	+	6. The active service of a licensed producer as a member of a
	1234	+	continuing education advisory committee, as described in paragraph 1
	1235	+	of this subsection, shall be deemed to qualify for continuing
	1236	+	education credit on an hour -for-hour basis.
	1237	+	C. 1. Annual fees and course submission fees shall be set
	1238	+	forth as a rule by the Commissioner. The fees are payable to the
	1239	+	Insurance Commissioner. Provided, public -funded educational
	1240	+	institutions, federal agencies, nonprofit organizations, not -for-
	1241	+	profit organizations, and Oklahoma state agencies shall be exempt
	1242	+	from this subsection.
	1243	+	2. The Commissioner may assess a civil penalty, after notice
	1244	+	and opportunity for hearing, against a continuing education provider
	1245	+	who fails to comply with the requireme nts of the Oklahoma Producer
	1246	+	Licensing Act, of not less than One Hundred Dollars ($100.00) nor
	1247	+	more than Five Hundred Dollars ($500.00), for each occurrence. The
	1248	+	civil penalty may be enforced in the same manner in which civil
	1249	+	judgments may be enforced.
	1250	+	D. Failure of an insurance producer or customer service
	1251	+	representative to comply with the requirements of the Oklahoma
	1252	+	Producer Licensing Act may, after notice and opportunity for
	1253	+	hearing, result in censure, suspension, nonrenewal of license or a
	1254	+	civil penalty of up to Five Hundred Dollars ($500.00) or by both
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	1281	+	such penalty and civil penalty. Said civil penalty may be enforced
	1282	+	in the same manner in which civil judgments may be enforced.
	1283	+	E. Limited lines producers and nonresident agents who have
	1284	+	successfully completed an equivalent or greater requirement shall be
	1285	+	exempt from the provisions of this section.
	1286	+	F. Members of the Legislature shall be exempt from this
	1287	+	section.
	1288	+	G. The Commissioner shall adopt and promulgate such rules as
	1289	+	are necessary for effective administration of this section.
	1290	+	SECTION 8. AMENDATORY 36 O.S. 2011, Section 2727.1, is
	1291	+	amended to read as follows:
	1292	+	Section 2727.1 A. Societies which are authorized prior to the
	1293	+	effective date of this act to transact business in this state may
	1294	+	continue such business until the last day of February next
	1295	+	succeeding the effective date of this act. The authority of such
	1296	+	societies and of all societies licensed on and after the effective
	1297	+	date of this act may be renewed annually, to ter minate in all cases
	1298	+	on the last day of the succeeding February. However, a license so
	1299	+	issued shall continue in full force and effect until the new license
	1300	+	is issued or specifically refused. For each such license or renewal
	1301	+	the society shall pay to the In surance Commissioner the fee stated
	1302	+	in Section 321 of Title 36 of the Oklahoma Statutes this title. A
	1303	+	duly certified copy or duplicate of such license shall be prima
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	1330	+	facie evidence that the licensee is a fraternal benefit society
	1331	+	within the meaning of thi s article.
	1332	+	B. If the society fails to qualify for a renewal, the license
	1333	+	shall be inactive. If the license has been inactive for less than
	1334	+	twelve (12) months and the society meets the requirements for
	1335	+	renewal, the license shall be reinstated after the society pays a
	1336	+	fee of Two Hundred Fifty Dollars ($250.00 ) and no reexamination
	1337	+	shall be required. After the license has been inactive for more
	1338	+	than twelve (12) months, the license shall be terminated. The
	1339	+	Department shall only terminate a license that fail ed to renew after
	1340	+	the twelve-month inactive period required under this subsection and
	1341	+	upon notification by first -class mail ninety (90) days prior to
	1342	+	termination of any license. The provisions of this subsection shall
	1343	+	not apply to a society that willfully and knowingly violates any
	1344	+	provision of this Code as to which refusal, suspension, or
	1345	+	revocation is mandatory.
	1346	+	SECTION 9. AMENDATORY 36 O.S. 2011, Section 4055.4, is
	1347	+	amended to read as follows:
	1348	+	Section 4055.4 A. The Insurance C ommissioner may refuse to
	1349	+	issue, suspend, revoke or refuse to renew the license of a viatical
	1350	+	settlement provider or viatical settlement broker if the
	1351	+	Commissioner finds that:
	1352	+	1. There was any material misrepresentation in the application
	1353	+	for the license;
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	1380	+	2. The licensee or any officer, partner, member or key
	1381	+	management personnel has been convicted of fraudulent or dishonest
	1382	+	practices, is subject to a final administrative action or is
	1383	+	otherwise shown to be untrustworthy or incompetent;
	1384	+	3. The viatical settlement provider demonstrates a pattern of
	1385	+	unreasonable payments to viators;
	1386	+	4. The licensee or any officer, partner, member or key
	1387	+	management personnel has been found guilty of, or has pleaded guilty
	1388	+	or nolo contendere to, any felony, or to a misdemeano r involving
	1389	+	fraud or moral turpitude, regardless of whether a judgment of
	1390	+	conviction has been entered by the court;
	1391	+	5. The viatical settlement provider has entered into any
	1392	+	viatical settlement contract that has not been approved pursuant to
	1393	+	the Viatical Settlements Act of 2008;
	1394	+	6. The viatical settlement provider has failed to honor
	1395	+	contractual obligations set out in a viatical settlement contract;
	1396	+	7. The licensee no longer meets the requirements for initial
	1397	+	licensure;
	1398	+	8. The viatical settlement provide r has assigned, transferred
	1399	+	or pledged a viaticated policy to a person other than a viatical
	1400	+	settlement provider licensed in this state, viatical settlement
	1401	+	purchaser, an accredited investor or qualified institutional buyer
	1402	+	as defined respectively in Rule 501(a) or Rule 144A promulgated
	1403	+
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	1429	+	under the Federal Securities Act of 1933, as amended, financing
	1430	+	entity, special purpose entity, or related provider trust; or
	1431	+	9. The licensee or any officer, partner, member or key
	1432	+	management personnel has violated any prov ision of the Viatical
	1433	+	Settlements Act of 2008.
	1434	+	B. The Commissioner may suspend, revoke or refuse to renew the
	1435	+	license of a viatical settlement broker or a life insurance producer
	1436	+	operating as a viatical settlement broker pursuant to the Viatical
	1437	+	Settlements Act of 2008 if the Commissioner finds that the viatical
	1438	+	settlement broker or life insurance producer has violated the
	1439	+	provisions of the Viatical Settlements Act of 2008 or has otherwise
	1440	+	engaged in bad-faith conduct with one or more viators.
	1441	+	C. If the Commissioner denies a license application or
	1442	+	suspends, revokes or refuses to renew the license of a viatical
	1443	+	settlement provider, viatical settlement broker or suspends,
	1444	+	revokes, or refuses to renew a license of a life insurance producer
	1445	+	operating as a viatical settlement broker pursuant to the Viatical
	1446	+	Settlements Act of 2008 the Commissioner shall conduct a hearing in
	1447	+	accordance with the Administrative Procedures Act.
	1448	+	D. If the licensee fails to qualify for a renewal, the license
	1449	+	shall be inactive. If the license has been inactive for less than
	1450	+	twelve (12) months and the licensee meets the requirements for
	1451	+	renewal, the license shall be reinstated after the licensee pays a
	1452	+	fee of Two Hundred Fifty Dollars ($250.00 ) and no reexamination
	1453	+
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	1479	+	shall be required. After the license has been inactive for more
	1480	+	than twelve (12) months, the license shall be terminated. The
	1481	+	Department shall only terminate a license that failed to renew after
	1482	+	the twelve-month inactive period required under this subsection and
	1483	+	upon notification by first-class mail ninety (90) days prior to
	1484	+	termination of any license . The provisions of this subsection shall
	1485	+	not apply to a licensee that willfully and knowingly violates any
	1486	+	provision of this Code as to which refusal, suspension, or
	1487	+	revocation is mandatory.
	1488	+	SECTION 10. AMENDATORY 36 O.S. 2011, Section 6217, as
	1489	+	last amended by Section 14, Chapter 269, O.S.L. 2013 (36 O.S. Supp.
	1490	+	2020, Section 6217), is amended to read as follows:
	1491	+	Section 6217. A. All licenses issued p ursuant to the
	1492	+	provisions of the Insurance Adjusters Licensing Act shall continue
	1493	+	in force not longer than twenty -four (24) months. The renewal dates
	1494	+	for the licenses may be staggered throughout the year by notifying
	1495	+	licensees in writing of the expiration and renewal date being
	1496	+	assigned to the licensees by the Insurance Commissioner and by
	1497	+	making appropriate adjustments in the biennial licensing fee.
	1498	+	B. Any licensee applying for renewal of a license as an
	1499	+	adjuster shall have completed not less than twenty -four (24) clock
	1500	+	hours of continuing insurance education, of which three (3) hours
	1501	+	shall be in ethics, within the previous twenty -four (24) months
	1502	+	prior to renewal of the license , provided that anyone who has
	1503	+
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	1529	+	maintained a license as an adjuster for twenty (20) or more years
	1530	+	shall be exempt from any continuing insurance education
	1531	+	requirements. The Insurance Commissioner shall approve courses and
	1532	+	providers of continuing education for insurance adjusters as
	1533	+	required by this section.
	1534	+	The Insurance Department m ay use one or more of the following to
	1535	+	review and provide a nonbinding recommendation to the Insurance
	1536	+	Commissioner on approval or disapproval of courses and providers of
	1537	+	continuing education:
	1538	+	1. Employees of the Insurance Commissioner;
	1539	+	2. A continuing education advisory committee. The continuing
	1540	+	education advisory committee is separate and distinct from the
	1541	+	Advisory Board established by Section 6221 of this title; or
	1542	+	3. An independent service whose normal business activities
	1543	+	include the review and appr oval of continuing education courses and
	1544	+	providers. The Commissioner may negotiate agreements with such
	1545	+	independent service to review documents and other materials
	1546	+	submitted for approval of courses and providers and present the
	1547	+	Commissioner with its nonbi nding recommendation. The Commissioner
	1548	+	may require such independent service to collect the fee charged by
	1549	+	the independent service for reviewing materials provided for review
	1550	+	directly from the course providers.
	1551	+	C. An adjuster who, during the time period p rior to renewal,
	1552	+	participates in an approved professional designation program shall
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	1579	+	be deemed to have met the biennial requirement for continuing
	1580	+	education. Each course in the curriculum for the program shall
	1581	+	total a minimum of twenty -four (24) hours. Ea ch approved
	1582	+	professional designation program included in this section shall be
	1583	+	reviewed for quality and compliance every three (3) years in
	1584	+	accordance with standardized criteria promulgated by rule.
	1585	+	Continuation of approved status is contingent upon the f indings of
	1586	+	the review. The list of professional designation programs approved
	1587	+	under this subsection shall be made available to producers and
	1588	+	providers annually.
	1589	+	D. The Insurance Department may promulgate rules providing that
	1590	+	courses or programs offered b y professional associations shall
	1591	+	qualify for presumptive continuing education credit approval. The
	1592	+	rules shall include standardized criteria for reviewing the
	1593	+	professional associations' mission, membership, and other relevant
	1594	+	information, and shall provi de a procedure for the Department to
	1595	+	disallow a presumptively approved course. Professional association
	1596	+	courses approved in accordance with this subsection shall be
	1597	+	reviewed every three (3) years to determine whether they continue to
	1598	+	qualify for continuin g education credit.
	1599	+	E. The active service of a licensed adjuster as a member of a
	1600	+	continuing education advisory committee, as described in paragraph 2
	1601	+	of subsection B of this section, shall be deemed to qualify for
	1602	+	continuing education credit on an hour -for-hour basis.
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	1629	+	F. 1. Each provider of continuing education shall, after
	1630	+	approval by the Commissioner, submit an annual fee. A fee may be
	1631	+	assessed for each course submission at the time it is first
	1632	+	submitted for review and upon submission for renewal at expiration.
	1633	+	Annual fees and course submission fees shall be set forth as a rule
	1634	+	by the Commissioner. The fees are payable to the Insurance
	1635	+	Commissioner and shall be deposited in the State Insurance
	1636	+	Commissioner Revolving Fund, created in Section 307.3 of this title,
	1637	+	for the purposes of fulfilling and accomplishing the conditions and
	1638	+	purposes of the Oklahoma Producer Licensing Act and the Insurance
	1639	+	Adjusters Licensing Act. Public -funded educational institutions,
	1640	+	federal agencies, nonprofit organizations, not-for-profit
	1641	+	organizations and Oklahoma state agencies shall be exempt from this
	1642	+	subsection.
	1643	+	2. The Commissioner may assess a civil penalty, after notice
	1644	+	and opportunity for hearing, against a continuing education provider
	1645	+	who fails to comply with the r equirements of the Insurance Adjusters
	1646	+	Licensing Act, of not less than One Hundred Dollars ($100.00) nor
	1647	+	more than Five Hundred Dollars ($500.00), for each occurrence. The
	1648	+	civil penalty may be enforced in the same manner in which civil
	1649	+	judgments may be enforced.
	1650	+	G. Subject to the right of the Commissioner to suspend, revoke,
	1651	+	or refuse to renew a license of an adjuster, any such license may be
	1652	+	renewed by filing on the form prescribed by the Commissioner on or
	1653	+
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	1679	+	before the expiration date a written request by or on behalf of the
	1680	+	licensee for such renewal and proof of completion of the continuing
	1681	+	education requirement set forth in subsection B of this section,
	1682	+	accompanied by payment of the renewal fee.
	1683	+	H. If the request, proof of compliance with the continuing
	1684	+	education requirement and fee for renewal of a license as an
	1685	+	adjuster are filed with the Commissioner prior to the expiration of
	1686	+	the existing license, the licensee may continue to act pursuant to
	1687	+	said license, unless revoked or suspended prior to the expi ration
	1688	+	date, until the issuance of a renewal license or until the
	1689	+	expiration of ten (10) days after the Commissioner has refused to
	1690	+	renew the license and has mailed notice of said refusal to the
	1691	+	licensee. Any request for renewal filed after the date of
	1692	+	expiration may be considered by the Commissioner as an application
	1693	+	for a new license.
	1694	+	I. If the licensee fails to qualify for a renewal, the license
	1695	+	shall be inactive. If the license has been inactive for less than
	1696	+	twelve (12) months and the licensee meets the requirements for
	1697	+	renewal, the license shall be reinstated after the licensee pays a
	1698	+	fee of Two Hundred Fifty Dollars ($250.00 ) and no reexamination
	1699	+	shall be required. After the license has been inactive for more
	1700	+	than twelve (12) months, the license shall be terminated. The
	1701	+	Department shall only terminate a license that failed to renew after
	1702	+	the twelve-month inactive period required under this subsection and
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	1729	+	upon notification by first -class mail ninety (90) days prior to
	1730	+	termination of any license. The provisions of this subsection shall
	1731	+	not apply to a licensee that willfully and knowingly violates any
	1732	+	provision of this Code as to which refusal, suspension or revocation
	1733	+	is mandatory.
	1734	+	SECTION 11. AMENDATORY 36 O.S. 2011, Sectio n 6220, as
	1735	+	last amended by Section 10, Chapter 294, O.S.L. 2019 (36 O.S. Supp.
	1736	+	2020, Section 6220), is amended to read as follows:
	1737	+	Section 6220. A. The Commissioner may censure, suspend,
	1738	+	revoke, or refuse to issue or renew a license after hearing for any
	1739	+	of the following causes:
	1740	+	1. Material misrepresentation or fraud in obtaining an
	1741	+	adjuster's license;
	1742	+	2. Any cause for which original issuance of a license could
	1743	+	have been refused;
	1744	+	3. Misappropriation, conversion to the personal use of the
	1745	+	licensee, or illegal withholding of monies required to be held by
	1746	+	the licensee in a fiduciary capacity;
	1747	+	4. Material misrepresentation of the terms and effect of any
	1748	+	insurance contract, with intent to deceive, or engaging in, or
	1749	+	attempting to engage in, any fraudulent t ransaction with respect to
	1750	+	a claim or loss that the licensee or the trainee is adjusting and,
	1751	+	in the case of a public adjuster, misrepresentation of the services
	1752	+	offered or the fees or commission to be charged;
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	1779	+	5. Conviction of or pleading guilty or nolo contendere to a
	1780	+	felony pursuant to the laws of this state, any other state, the
	1781	+	United States, or any foreign country;
	1782	+	6. If in the conduct of business affairs, the licensee or
	1783	+	trainee has shown himself to be, and is so deemed by the
	1784	+	Commissioner, incompe tent, untrustworthy or a source of injury to
	1785	+	the public;
	1786	+	7. Refusal to comply with any lawful order of the Commissioner;
	1787	+	8. Violation of any provision of the Insurance Adjusters
	1788	+	Licensing Act;
	1789	+	9. Adjusting losses or negotiating claim settlements arising
	1790	+	pursuant to provisions of insurance contracts on behalf of an
	1791	+	insurer or insured without proper licensing from the Commissioner
	1792	+	and authority from the licensed insurer or the insured party;
	1793	+	10. Failing to respond to any inquiry (including electronic
	1794	+	communications) from the Department within thirty (30) calendar days
	1795	+	of receipt of such inquiry;
	1796	+	11. Forging another's name to any document;
	1797	+	12. Improperly using notes or any other reference material to
	1798	+	complete an examination for an insurance license;
	1799	+	13. Having admitted or been found to have committed any
	1800	+	insurance unfair trade practice or insurance fraud;
	1801	+
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	1827	+	14. Having an insurance adjuster license or its equivalent
	1828	+	denied, suspended, censured, placed on probation or revoked in any
	1829	+	other state, province, di strict or territory;
	1830	+	15. Failing to inform the Department, by any means acceptable
	1831	+	to the Department, of a change of address, change of legal name or
	1832	+	change of information submitted on the application within thirty
	1833	+	(30) days of the change; or
	1834	+	16. Providing services as a public adjuster, company adjuster
	1835	+	or independent adjuster on the same claim.
	1836	+	B. In addition to or in lieu of any applicable denial,
	1837	+	suspension, or revocation of a license, any person violating the
	1838	+	provisions of the Insurance Adjusters Lic ensing Act may be subject
	1839	+	to a civil fine of not more than One Thousand Dollars ($1,000.00)
	1840	+	for each violation. This fine may be enforced in the same manner in
	1841	+	which civil judgment may be enforced.
	1842	+	C. If the license of an adjuster is suspended, revoked, or not
	1843	+	renewed, the licensee shall surrender the license to the
	1844	+	Commissioner.
	1845	+	D. The Commissioner shall not reinstate a license to any person
	1846	+	whose license has been suspended, revoked, or refused renewal until
	1847	+	the Commissioner determines that the cause or causes for the
	1848	+	suspension, revocation, or nonrenewal of the license no longer
	1849	+	exist.
	1850	+
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	1876	+	E. The Department shall retain the authority to enforce the
	1877	+	provisions of and impose any penalty or remedy authorized by this
	1878	+	title against any person who is under inves tigation for or charged
	1879	+	with a violation even if the person's license or registration has
	1880	+	been surrendered or has lapsed by operation of law.
	1881	+	F. It shall be unlawful for any person, firm, association,
	1882	+	company or corporation to act as an adjuster without f irst obtaining
	1883	+	a license pursuant to the Insurance Adjusters Licensing Act. Any
	1884	+	person convicted of violating the provisions of this subsection
	1885	+	shall be guilty of a misdemeanor and shall be punished as set forth
	1886	+	in Section 10 of Title 21 of the Oklahoma S tatutes. The restriction
	1887	+	set forth in this subsection shall apply regardless of whether the
	1888	+	person, firm, association, company or corporation has obtained power
	1889	+	of attorney from an insurance claimant or has entered into any other
	1890	+	agreement with an insuran ce claimant to act on the behalf of the
	1891	+	claimant.
	1892	+	G. If the licensee fails to qualify for a renewal, the license
	1893	+	shall be inactive. If the license has been inactive for less than
	1894	+	twelve (12) months and the licensee meets the requirements for
	1895	+	renewal, the license shall be reinstated after the licensee pays a
	1896	+	fee of Two Hundred Fifty Dollars ($250.00 ) and no reexamination
	1897	+	shall be required. After the license has been inactive for more
	1898	+	than twelve (12) months, the license shall be terminated. The
	1899	+	Department shall only terminate a license that failed to renew after
	1900	+
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	1926	+	the twelve-month inactive period required under this subsection and
	1927	+	upon notification by first -class mail ninety (90) days prior to
	1928	+	termination of any license. The provisions of this subsection shall
	1929	+	not apply to a licensee that willfully and knowingly violates any
	1930	+	provision of this Code as to which refusal, suspension or revocation
	1931	+	is mandatory.
	1932	+	SECTION 12. AMENDATORY 36 O.S. 2011, Section 6560, is
	1933	+	amended to read as foll ows:
	1934	+	Section 6560. A. A Except as otherwise provided in this
	1935	+	section, a certificate expires is inactive on the first anniversary
	1936	+	of its effective date unless the certificate is renewed for a one -
	1937	+	year term as provided in this section.
	1938	+	B. Before the certi ficate expires is inactive, a certificate
	1939	+	may be renewed for an additional one -year term, if the applicant:
	1940	+	1. Otherwise is entitled to the certificate;
	1941	+	2. Pays the Insurance Commissioner an annual renewal fee in the
	1942	+	amount of Five Hundred Dollars ($500. 00);
	1943	+	3. Submits to the Commissioner:
	1944	+	a. a renewal application on the form that the
	1945	+	Commissioner requires, and
	1946	+	b. satisfactory evidence of compliance with any
	1947	+	requirement for certificate renewal;
	1948	+	4. Establishes and maintains a complaint system which has b een
	1949	+	approved by the Commissioner and which provides reasonable
	1950	+
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	1976	+	procedures for the resolution of written complaints concerning
	1977	+	utilization review; and
	1978	+	5. Maintains records of written complaints for five (5) years
	1979	+	from the time the complaints are filed and submits to the
	1980	+	Commissioner a summary report at such times and in such format as
	1981	+	the Commissioner may require.
	1982	+	C. If the applicant fails to qualify for a renewal as provided
	1983	+	in subsection B of this section , the certificate shall be inactive.
	1984	+	If the certificate has been inactive for less than twelve (12)
	1985	+	months and the applicant meets the requirements for renewal, the
	1986	+	certificate shall be reinstated after the applicant pays a fee of
	1987	+	Two Hundred Fifty Dollars ($250.00 ) and no reexamination shall be
	1988	+	required. After the certificate has been inactive for more than
	1989	+	twelve (12) months, the certificate shall be terminated. The
	1990	+	Department shall only terminate a certificate that failed to renew
	1991	+	after the twelve-month inactive period required under this
	1992	+	subsection and upon notification by first -class mail ninety (90)
	1993	+	days prior to termination of any certification. The provisions of
	1994	+	this subsection shall not apply to an applicant that willfully and
	1995	+	knowingly violates any provision of this Code as to which refusal,
	1996	+	suspension or revocation is mandatory.
	1997	+	SECTION 13. AMENDATORY 36 O.S. 2011, Section 6561, is
	1998	+	amended to read as follows:
	1999	+
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	2025	+	Section 6561. A. The Insurance Commissioner may refuse to
	2026	+	issue or renew or may suspend or revoke a certifica te if the holder
	2027	+	does not comply with performance assurances under this section,
	2028	+	violates any provision of the Hospital and Medical Services
	2029	+	Utilization Review Act, or violates any rule adopted pursuant
	2030	+	thereto.
	2031	+	B. The Commissioner shall deny or refuse to renew a certificate
	2032	+	to any applicant if, upon review of the application, the
	2033	+	Commissioner finds that the applicant proposing to conduct
	2034	+	utilization review does not:
	2035	+	1. Have available the services of a sufficient number of
	2036	+	qualified medical professionals supervised by appropriate health
	2037	+	care providers to carry out the applicant's utilization review
	2038	+	activities. Said sufficiency shall be based on standards and
	2039	+	criteria pursuant to the provisions of subparagraph b of paragraph 1
	2040	+	of Section 8 6558 of this act title;
	2041	+	2. Meet any applicable rules the Commissioner adopted pursuant
	2042	+	to the Hospital and Medical Services Utilization Review Act relating
	2043	+	to the qualifications of private review agents or the performance of
	2044	+	utilization review; and
	2045	+	3. Provide assurances satisfactory to the Commissioner that:
	2046	+	a. the procedure and policies of the private review agent
	2047	+	shall protect the confidentiality of medical records,
	2048	+	and
	2049	+
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	2075	+	b. the review agent shall be reasonably accessible in
	2076	+	this state to patients, hospitals and health c are
	2077	+	providers as required by this act.
	2078	+	C. Before denying, not renewing, or revoking a certificate, the
	2079	+	Commissioner shall provide the applicant or certificate holder with
	2080	+	reasonable time to supply additional information demonstrating
	2081	+	compliance with the r equirements of the Hospital and Medical
	2082	+	Services Utilization Review Act and the opportunity to request a
	2083	+	hearing. If an applicant or certificate holder requests a hearing,
	2084	+	the Commissioner shall send a hearing notice and conduct a hearing
	2085	+	in accordance with the Administrative Procedures Act.
	2086	+	D. Any person aggrieved by a final decision of the Commissioner
	2087	+	in a contested case may appeal the decision as provided for in the
	2088	+	Administrative Procedures Act.
	2089	+	E. If the applicant fails to qualify for a renewal as provided
	2090	+	in subsection B of this section , the certificate shall be inactive.
	2091	+	If the certificate has been inactive for less than twelve (12)
	2092	+	months and the applicant meets the requirements for renewal, the
	2093	+	certificate shall be reinstated after the applicant pays a fee of
	2094	+	Two Hundred Fifty Dollars ($250.00 ) and no reexamination shall be
	2095	+	required. After the certificate has been inactive for more than
	2096	+	twelve (12) months, the certificate shall be terminated. The
	2097	+	Department shall only terminate a certificate that failed to renew
	2098	+	after the twelve-month inactive period required under this
	2099	+
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	2125	+	subsection and upon notification by first -class mail ninety (90)
	2126	+	days prior to termination of any certification. The provisions of
	2127	+	this subsection shall not apply to an applicant that willfully and
	2128	+	knowingly violates any provision of this Code as to which refusal,
	2129	+	suspension or revocation is mandatory.
	2130	+	SECTION 14. AMENDATORY 59 O.S. 2011, Section 1304, as
	2131	+	amended by Section 1, Chapter 150, O.S.L. 2013 (5 9 O.S. Supp. 2020,
	2132	+	Section 1304), is amended to read as follows:
	2133	+	Section 1304. A. Each bail bondsman license issued shall
	2134	+	expire inactivate biennially at 12:00 o'clock midnight on the last
	2135	+	day of the birth month of the bondsman, unless revoked or suspend ed
	2136	+	prior thereto by the Insurance Commissioner.
	2137	+	B. If the bondsman fails to qualify for a renewal, the license
	2138	+	shall be inactive. If the license has been inactive for less than
	2139	+	twelve (12) months and the bondsman meets the requirements for
	2140	+	renewal, the license shall be reinstated after the bondsman pays a
	2141	+	fee of Two Hundred Fifty Dollars ($250.00 ) and no reexamination
	2142	+	shall be required. After the license has been inactive for more
	2143	+	than twelve (12) months, the license shall be terminated. The
	2144	+	Department shall only terminate a license that failed to renew after
	2145	+	the twelve-month inactive period required under this subsection and
	2146	+	upon notification by first -class mail ninety (90) days prior to
	2147	+	termination of any license . The provisions of this subsection shall
	2148	+	not apply to a bondsman that willfully and knowingly violates any
	2149	+
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	2175	+	provision of this Code as to which refusal, suspension or revocation
	2176	+	is mandatory.
	2177	+	SECTION 15. AMENDATORY 59 O.S. 2011, Section 1308.1, as
	2178	+	amended by Section 1, C hapter 259, O.S.L. 2019 (59 O.S. Supp. 2020,
	2179	+	Section 1308.1), is amended to read as follows:
	2180	+	Section 1308.1 A. In order to be eligible to take the
	2181	+	examination required to be licensed as a bail bondsman, each person
	2182	+	shall complete not less than sixteen (1 6) clock hours of education
	2183	+	in subjects pertinent to the duties and responsibilities of a bail
	2184	+	bondsman, including all laws and regulations related thereto.
	2185	+	Further, each licensee shall complete biennially not less than
	2186	+	sixteen (16) clock hours of continu ing education in the subjects
	2187	+	prior to renewal of the license , provided that licensees that have
	2188	+	maintained a license as a bail bondsman for twenty (20) or more
	2189	+	years shall be exempt from any continuing education requirements .
	2190	+	Such continuing education sh all not include a written or oral
	2191	+	examination.
	2192	+	Provided, any person licensed as a bail bondsman prior to
	2193	+	November 1, 1989, shall not be required to complete sixteen (16)
	2194	+	clock hours of education prior to licensure but shall be subject to
	2195	+	the sixteen-hour continuing education requirement in order to renew
	2196	+	the license, except that a licensed bail bondsman who is sixty -five
	2197	+	(65) years of age or older and who has been licensed as a bail
	2198	+
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	2224	+	bondsman for fifteen (15) years or more shall be exempt from both
	2225	+	the education and continuing education requirements of this section.
	2226	+	B. Education shall be provided for bail bondsman licensure as
	2227	+	required by this section; provided that the Insurance Commissioner
	2228	+	shall approve the courses offered and provided further such
	2229	+	education meets the general standards for education established by
	2230	+	the Insurance Commissioner.
	2231	+	The education provider shall submit biennially a fee of Two
	2232	+	Hundred Dollars ($200.00), payable to the Insurance Commissioner ,
	2233	+	which shall be deposited with the State T reasurer for the purposes
	2234	+	of fulfilling and accomplishing the conditions and purposes of this
	2235	+	section.
	2236	+	C. Any person who falsely represents to the Insurance
	2237	+	Commissioner that compliance with this section has been met shall be
	2238	+	subject, after notice and hea ring, to the penalties and fines set
	2239	+	out in Section 1310 of this title.
	2240	+	D. The Commissioner shall adopt and promulgate such rules as
	2241	+	are necessary for effective administration of this section.
	2242	+	SECTION 16. AMENDATORY 59 O.S. 2011, Section 1309, as
	2243	+	last amended by Section 3, Chapter 110, O.S.L. 2015 (59 O.S. Supp.
	2244	+	2020, Section 1309), is amended to read as follows:
	2245	+	Section 1309. A. A renewal license shall be issued by the
	2246	+	Insurance Commissioner to a licensee who has continuously ma intained
	2247	+	same in effect, without further examination, upon payment of a
	2248	+
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	2274	+	renewal fee of Two Hundred Dollars ($200.00) for a cash, property,
	2275	+	surety, or professional bail bondsman or One Thousand Dollars
	2276	+	($1,000.00) for a multicounty agent bondsman, and proof of
	2277	+	completion of sixteen (16) hours of continuing education as required
	2278	+	by Section 1308.1 of this title. The renewal fee for licenses
	2279	+	expiring September 15, 2012, shall be prorated to the birth month of
	2280	+	the bondsman. Thereafter the renewal fee shall be submitted
	2281	+	biennially by the last day of the birth month of the bondsman. Such
	2282	+	licensee shall in all other respects be required to comply with and
	2283	+	be subject to the provisions of Section 1301 et seq. of this title.
	2284	+	B. An individual holding a professional bondsman license or
	2285	+	multicounty agent bondsman license shall also provide an annual
	2286	+	audited financial statement prepared by an accounting firm or
	2287	+	individual holding a permit to practice public accounting in this
	2288	+	state in accordance with the Statements on A uditing Standards
	2289	+	promulgated by the Auditing Standards Board of the American
	2290	+	Institute of Certified Public Accountants showing assets,
	2291	+	liabilities, and net worth, the annual statement to be as of a date
	2292	+	not earlier than June 30. The statements shall be a ttested to by an
	2293	+	unqualified opinion of the accounting firm or individual holding a
	2294	+	permit to practice public accounting in this state that prepared the
	2295	+	statement or statements. The statement shall be submitted annually
	2296	+	by the last day of September.
	2297	+
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	2323	+	C. An individual holding a property bondsman license shall also
	2324	+	provide an annual county assessor's written statement stating the
	2325	+	property's assessed value for each property used to post bonds and a
	2326	+	written statement from any lien holder stating the current pa yoff
	2327	+	amount on each lien for each property used to post bonds. The
	2328	+	written statements shall be submitted annually by the last day of
	2329	+	September.
	2330	+	D. If the license is not renewed or the renewal fee is not paid
	2331	+	by the last day of the birth month of the bond sman, the license
	2332	+	shall expire inactivate automatically pursuant to Section 1304 of
	2333	+	this title. After expiration, the license may be reinstated for up
	2334	+	to one (1) year following the expiration date. If after the one -
	2335	+	year date the license has not been rein stated, the licensee shall be
	2336	+	required to apply for a license as a new applicant.
	2337	+	E. Reinstatement fees shall be double the original fee.
	2338	+	SECTION 17. This act shall become effective November 1, 2021.
	2339	+
	2340	+	ENGR. H. B. NO. 2403 Page 40 1
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	2365	+	Passed the House of Representatives the 11th day of March, 2021.
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	2370	+	Presiding Officer of the House
	2371	+	of Representatives
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	2374	+	Passed the Senate the ___ day of __________, 2021.
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207	2379		Presiding Officer of the Senate
208		-
209		-
210		-
211		-	OFFICE OF THE GOVERNOR
212		-	Received by the Office of the Governor this ____________________
213		-	day of ___________________, 20_______, at _______ o'clock _______ M.
214		-	By: _________________________________
215		-	Approved by the Governor of the State of Oklahoma this _________
216		-	day of ___________________, 20_______, at _______ o'clock _______ M.
217		-
218		-
219		-	_________________________________
220		-	Governor of the State of Oklahoma
221		-
222		-	OFFICE OF THE SECRETARY OF STATE
223		-	Received by the Office of the Secretary of State this __________
224		-	day of ___________________, 20_______, at _______ o'clock _______ M.
225		-	By: _________________________________
226	2380