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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
ENGROSSED SENATE
BILL NO. 435 By: Montgomery of the Senate
and
Martinez of the House
An Act relating to the Service Warranty A ct; amending
15 O.S. 2021, Section 141.14, which relates to
penalties, reports, and administ rative fees;
modifying administrative fee amount; providing
exclusion of certain fee ; conforming language; and
providing an effective d ate.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 15 O.S. 20 21, Section 141.14, is
amended to read as follows:
Section 141.14. A. In addition to the li cense fees provided in
the Service Warranty Act for service warranty associ ations each
service warranty association and insurer shall annually, on or
before the first day of May, file with the Insurance Commissioner
its annual financial statement showing a ll gross written provid er
fees or assessments received by it in connection with the issuance
of service warranties in t his state during the preceding calendar
year and other relevant financial information as deemed necessary by
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the Commissioner. The finan cial statements require d by this
subsection must be:
1. Audited and prepar ed in accordance with statutory accounting
principles if the applicant complies with the requirements of
subsection A of Section 141.6 of this title; or
2. Verified under oath of a t least two of its prin cipal
officers and prepared in accordance with gener ally accepted
accounting principles if the a pplicant utilizes an insurance policy
which satisfies the requirements of subsection B of Section 141.6 of
this title.
B. The Commissioner may levy a fine of u p to One Hundred
Dollars ($100.00) a day for each da y an association neglects to file
its financial statement in the form and within the tim e provided by
the Service Warranty Act.
C. In addition to the annual financial statements re quired to
be filed by subsection A of this section, the Commissioner may
require of licensees, under oath and in the fo rm prescribed by it,
quarterly statements or special reports which the Commissioner deems
necessary for the proper supervision of license es under the Service
Warranty Act.
D. Provider fees and assessments receiv ed by associations and
insurers for service warranties shall not be subject to the premi um
tax provided in Section 624 of Title 36 of the Oklahoma Statutes,
but shall be subject to an administrative fee o f equal to two
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percent (2%) of the gross provider fe e received on the sale of all
service warranties issued in this state during the precedi ng
calendar quarter. The fees shall be paid quarterly to the Insurance
Commissioner. Howeve r, licensed association s, licensed insurers and
entities with applications for licensure as a service warranty
association pending with the Department that have co ntractual
liability insurance in place as of March 31, 2009, from an insurer
which satisfies the requirements of sub sections B and C of Section
141.6 of this title and which covers one hundred percent (100%) of
the claims exposure of the association or ins urer on all contracts
written may elect to shall pay an annual administrative fee of Three
Thousand Dollars ($3,000. 00) in lieu of the two-percent
administrative fee Four Thousand Two Hundred Dollars ($4,200.00).
The administrative fee set forth in this s ection shall not be
subject to subsection C of Section 307.3 of Title 36 of the Oklahoma
Statutes.
SECTION 2. This act shall become effective January 1 , 2024.
COMMITTEE REPORT BY: COMMITTEE ON INSURANCE, dated 04/04/2023 - DO
PASS.