Oklahoma Senate Bill SB66

Oklahoma 2022 Regular Session

• Introduced: 2/1/21
• Refer: 2/2/21
• Report Pass: 2/8/21
• Engrossed: 3/2/21
• Refer: 3/22/21
• Report Pass: 4/1/21
• Enrolled: 5/25/21
• Passed: 5/28/21

Caption

Insurance; creating exemption to surplus lines coverage for schools. Effective date.

Impact

This legislation is expected to significantly impact how surplus lines insurance is taxed in Oklahoma. By exempting policies for Indian tribes and local government entities from surplus line premium taxes, the bill is designed to encourage coverage for these groups while still ensuring that other surplus lines insurance continues to be taxed at a standard rate of six percent. The change aims to better accommodate the unique needs and circumstances of tribal and local government insurance needs.

Summary

Senate Bill 66 focuses on amending existing Oklahoma laws related to insurance premium taxes, specifically concerning surplus lines coverage. The bill aims to create exemptions for certain policies, notably those sold to federally recognized Indian tribes and policies related to local governments like cities and schools. By allowing these exemptions, the bill seeks to provide a more favorable financial environment for these entities and simplify the tax burden associated with surplus lines insurance.

Sentiment

The sentiment surrounding SB 66 appears to be largely positive, particularly among those advocating for local government and tribal interests. Supporters argue that the exemptions will lead to better insurance coverage options for these entities without imposing additional tax burdens. However, there may be concerns about the long-term financial implications for the Oklahoma Insurance Commissioner’s budget, given that a portion of tax revenue will be exempted under this bill.

Contention

A notable point of contention regarding SB 66 may revolve around the implications of the proposed exemptions for certain entities at the potential expense of others. While proponents of the bill see it as a necessary adjustment to provide needed insurance to local and tribal governments, critics may express concerns regarding how this will affect the overall regulatory framework of insurance in the state. The legislative discourse likely included discussions about balancing equitable access to insurance and maintaining robust revenue streams for the state’s insurance oversight.