Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB539 Compare Versions

Version 1 (Old)

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4		-	An Act
5		-	ENROLLED SENATE
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	ENGROSSED SENATE
6	36		BILL NO. 539 By: Montgomery of the Senate
7	37
8	38		and
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10	40		Sneed of the House
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15	45		An Act relating to insurance licensure; amending 36
16	46		O.S. 2021, Sections 1435.13, 1435.29, as amended by
17	47		Section 7, Chapter 225, O.S.L . 2022 (36 O.S. Supp.
18	48		2022, Section 1435.29), 6206, 6217, and 6220, which
19	49		relate to power over licensure, continuing education,
20	50		license evidence, license expiration and renewal, and
21	51		causes for disbarring licensure; removing certain
22	52		parameters for license termination; modifying time
23	53		period for review of certain continuing education
24	54		courses; removing minimum fine amount ; requiring
25	55		licensee maintain updated information with the
26	56		Insurance Commissioner; clarifying and conforming
27	57		language; and providing an effective date.
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33		-	SUBJECT: Insurance licensure
34		-
35	63		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
36		-
37	64		SECTION 1. AMENDATORY 36 O.S. 2021, Section 1435.13, is
38	65		amended to read as follows:
39		-
40	66		Section 1435.13. A. The Insurance Commissioner may place on
41	67		probation, censure, suspend, revoke or refuse to issue or renew a
42	68		license issued pursuant to the Oklahoma Producer Licensing Act or
43	69		may levy a civil penalty in accordance with subsection D of this
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44	97		section or any combination of actions, for an y one or more of the
45	98		following causes:
46		-
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48		-	ENR. S. B. NO. 539 Page 2
49	99		1. Providing incorrect, misleading, incomplete or materiall y
50	100		untrue information in the license application;
51		-
52	101		2. Violating any insurance laws, or violating any regulation,
53	102		subpoena or order of the Insurance Commission er or of another
54	103		state’s Insurance Commissioner;
55		-
56	104		3. Obtaining or attempting to obtain a license th rough
57	105		misrepresentation or fraud;
58		-
59	106		4. Improperly withholding, misappropriating or converting any
60	107		monies or properties received in the course of doing insuran ce
61	108		business;
62		-
63	109		5. Intentionally misrepresen ting the terms of an actual or
64	110		proposed insurance contrac t or application for insurance;
65		-
66	111		6. Having been convicted of a felony;
67		-
68	112		7. Having admitted or been found to hav e committed any
69	113		insurance unfair trade practic e or fraud;
70		-
71	114		8. Using fraudulent, coercive or dishonest practices, or
72	115		demonstrating incompetence, u ntrustworthiness or financial
73	116		irresponsibility in the conduct of business in this state or
74	117		elsewhere;
75		-
76	118		9. Having an insurance producer license, or its equiva lent,
77	119		denied, suspended, censured, placed on probation or revoked in any
78	120		other state, province, dis trict or territory;
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80	148		10. Forging another’s name to an application for insurance or
81	149		to any document related to a n insurance transaction;
82		-
83	150		11. Improperly using notes or any other reference material to
84	151		complete an examination for an insurance license;
85		-
86	152		12. Knowingly accepting insurance business from an individual
87	153		who is not licensed;
88		-
89	154		13. Failing to comply with an adm inistrative or court order
90	155		imposing a child support obligation;
91		-
92		-	ENR. S. B. NO. 539 Page 3
93		-
94	156		14. Failing to pay state income tax or comply with any
95	157		administrative or court o rder directing payment of state income tax;
96		-
97	158		15. Failing to respond to an inquiry from the Department as
98	159		required in Section 1250.4 of this title; or
99		-
100	160		16. Any cause for which an original issuance of a license could
101	161		have been refused.
102		-
103	162		B. 1. In the event that the action by the Insurance
104	163		Commissioner is to nonrenew or to deny an application for a license,
105	164		the Insurance Commissioner shall notify the applicant or licensee
106	165		and advise the applicant or lice nsee, in writing, of the reason for
107	166		the denial or nonrene wal of the applicant ’s or licensee’s license.
108	167		The applicant or licensee may make written demand upon the Insur ance
109	168		Commissioner within thirty (30) days of t he date of notification of
110	169		the notification by the Insurance Commissioner for a hearing before
111	170		the Insurance Commissioner or an independent hearing examiner to
112	171		determine the reasonableness of the Insurance Comm issioner’s action.
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113	199		The hearing shall be heard within a reasonable time period and shall
114	200		be held pursuant to the Oklahoma Administrative Procedur es Act.
115		-
116	201		2. The Insurance Department shall only terminate a license
117	202		issued pursuant to the Oklahoma Producer Li censing Act that failed
118	203		to renew after a twelv e-month inactive period upon notification by
119	204		first-class mail ninety (90) days prior to termination of the
120	205		license. The provisions of this subsection shall not apply to a
121	206		licensee that willfully and knowingly violates any provision of this
122	207		Code as to which refusal, suspension or revocation is man datory.
123		-
124	208		C. The license of a business entity may be suspe nded, revoked
125	209		or refused if the Insurance Commissioner finds, after opportunity
126	210		for hearing, that an individual licensee’s violation was known or
127	211		should have been known by one or more of the partners , officers or
128	212		managers acting on behalf of the partnershi p or corporation and the
129	213		violation was neither reported to the Insurance Commissioner nor
130	214		corrective action tak en.
131		-
132	215		D. In addition to or in lieu of any appli cable denial,
133	216		probation, censure, suspensi on or revocation of a license, a person
134	217		may, after opportunity for hearing, be subject to a civil fine of
135		-
136		-	ENR. S. B. NO. 539 Page 4
137	218		not less than One Hundred Dollars ($100.00) nor more than One
138	219		Thousand Dollars ($1,000.00) for each occurren ce. The penalty may
139	220		be enforced in the sa me manner in which civil judgments may be
140	221		enforced.
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142	249		E. Every licensee licensed pursuant to the provisions of the
143	250		Oklahoma Producer Licensing Act shall keep at the lice nsee’s place
144	251		of business the usual and customa ry records pertaining to
145	252		transactions authorized by the license. All records as to any
146	253		particular transactions shall be kept available and open to the
147	254		inspection of the Commissioner at any time during business hours
148	255		during the three (3) years immediately following the date of
149	256		completion of the tr ansaction. The Commissioner may require a
150	257		financial or market conduct examination during any investigation of
151	258		a licensee. The cost of such examination shall be apport ioned among
152	259		all of the appointing insurers of the licensee.
153		-
154	260		F. The Insurance Commission er shall retain the authority to
155	261		enforce the provisions o f and impose any penalty or remedy
156	262		authorized by the Oklahoma Producer Licensing Act an d this title
157	263		against any person who is under investigation for or char ged with a
158	264		violation of the Oklahoma Produ cer Licensing Act or this title even
159	265		if the person’s license or registration has been surrendered or has
160	266		lapsed by operation of law.
161		-
162	267		G. Files pertaining to investigati ons or legal matters which
163	268		contain information concurring a current and ongoing investig ation
164	269		of allegations of violations of the Oklahoma Insura nce Code by a
165	270		licensed agent shall not be available for public inspection without
166	271		proper judicial authorization ; however, a licensee under
167	272		investigation for alleged violations of the Oklahoma Insuran ce Code,
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168	300		or against whom an action for alleged violations of the Oklahoma
169	301		Insurance Code has been commenced, may view evidence and complaints
170	302		pertaining to the investig ation, other than privileged information,
171	303		at reasonable times at the Commissioner ’s office. All qualification
172	304		examination materials, booklets an d answers for any license
173	305		authorized to be issued by the Commissioner under any statute shall
174	306		not be available for public inspection. The residence address,
175	307		residence telephone number, birth date an d Social Security number of
176	308		a licensee shall not be avail able for public inspection . A separate
177	309		business or mailing address provided by the licensee shall be
178	310		considered a public record. If the residence and busin ess addresses
179		-
180		-	ENR. S. B. NO. 539 Page 5
181	311		or residence and business te lephone numbers are the same, such
182	312		addresses or telephone numbers shall be considered a public record.
183		-
184	313		H. The Commissioner shall promptly notify all appointing
185	314		insurers, where applicable, and the licensee regardin g any censure,
186	315		suspension, revocation or t ermination of license by the
187	316		Commissioner.
188		-
189	317		I. Upon suspension, revocation or termination of the license of
190	318		a resident or nonresident of this state, the Commissioner s hall
191	319		notify the Central Office of the National Association of Insurance
192	320		Commissioners, or its appropriate nonprofit affiliates and the
193	321		Insurance Commissioner of each state for whom the Commissioner has
194	322		executed a certificate of licensure status.
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196	350		J. The Commissioner may issue a duplicate license for an y lost,
197	351		stolen or destroyed license issued pursuant to the Oklahoma Producer
198	352		Licensing Act upon an affidavit of the licensee prescribed by the
199	353		Commissioner concerning the facts of such loss, theft or
200	354		destruction.
201		-
202	355		SECTION 2. AMENDATORY 36 O.S. 2021, Section 1435.29, as
203	356		amended by Section 7, Chapter 225, O.S.L. 2022 (36 O.S. Supp. 2022,
204	357		Section 1435.29), is amended to read as follows:
205		-
206	358		Section 1435.29. A. 1. Each insurance producer, with the
207	359		exception of title producers and aircraft title producers or any
208	360		other producer exempt by rule, shall, biennially, complete not less
209	361		than twenty-one (21) clock hours of continuing insurance education.
210	362		Such education may include a written or oral examination.
211		-
212	363		2. Licensees, with the exception of title producers and
213	364		aircraft title producers or any other producer exempt by rule, sh all
214	365		complete, in addition to the foregoing, three (3) clock hours of
215	366		ethics course work in this same period.
216		-
217	367		3. Each title producer and aircraft title producer shall,
218	368		biennially, complete not less th an sixteen (16) clock hours of
219	369		continuing insurance education, two (2) h ours of which shall be
220	370		ethics course work, which shall cover the line for which the
221	371		producer is licensed. S uch education may include a written or oral
222	372		examination.
223	373
224		-	ENR. S. B. NO. 539 Page 6
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226	400		B. 1. The Insurance Commissioner shall approve courses and
227	401		providers of continuing educat ion. The Insurance Department may use
228	402		one or more of the following to review and provide a nonbinding
229	403		recommendation to the Insurance Commissioner on approval or
230	404		disapproval of course s and providers of continuing education:
231		-
232	405		a. employees of the Insurance C ommissioner,
233		-
234	406		b. a continuing education advisory committee, or
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236	407		c. an independent service whose normal busines s
237	408		activities include the review and approval of
238	409		continuing education courses and providers. The
239	410		Commissioner may negotiate agre ements with such
240	411		independent service to review documents and other
241	412		materials submitted for approval of courses and
242	413		providers and provide the Commissioner with its
243	414		nonbinding recommendation. The Commissio ner may
244	415		require such independent service to collect the fee
245	416		charged by the independent service for reviewing
246	417		materials provided for review directly from the course
247	418		providers.
248		-
249	419		The Insurance Commissioner has sole authority to approve courses
250	420		and providers of continuing education. If the Insurance
251	421		Commissioner uses one of the en tities listed above to provide a
252	422		nonbinding recommendation, the Commissioner shall adopt or decline
253	423		to adopt the recommendation within thirty (30) days of receipt of
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254	451		the recommendation. In the event the Insurance Commissioner takes
255	452		no action within said t hirty-day period, the recommendation made to
256	453		the Commissioner will be deemed to have been adopted by the
257	454		Commissioner.
258		-
259	455		The Insurance Commissioner may certify providers and courses
260	456		offered for license examination study. The Insurance De partment
261	457		shall use employees of the Insurance Commissioner to review and
262	458		certify license examination study program providers and courses.
263		-
264	459		2. Each insurance company shall be allowed to provide
265	460		continuing education to insurance producers as required by this
266	461		section; provided that su ch continuing education meets the general
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268		-	ENR. S. B. NO. 539 Page 7
269	462		standards for education otherwise established by the Insurance
270	463		Commissioner.
271		-
272	464		3. An insurance produ cer who, during the time period prior to
273	465		renewal, participates in a professional designation program,
274	466		approved by the Insurance Commissioner, shall be deemed to have met
275	467		the biennial requirement for conti nuing education.
276		-
277	468		The curriculum for the program shal l total a minimum of twenty-
278	469		four (24) hours within a twenty-four-month period. Each approved
279	470		professional designation program included in this section shall be
280	471		reviewed for quality and compliance every three (3) two (2) years in
281	472		accordance with standardized crit eria promulgated by rule.
282	473		Continuation of approved status is contingent upon the findings of
283	474		the review. The lis t of professional designation programs approved
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284	502		under this paragraph shall be made availab le to producers and
285	503		providers annually.
286		-
287	504		4. The Insurance Department may promulgate rules providing that
288	505		courses or programs offered by professional associations sha ll
289	506		qualify for presumptive continuing education credit approval. The
290	507		rules shall include standardized criteria for reviewing the
291	508		professional associations’ mission, membership, and other relevant
292	509		information, and shall provide a procedure for the Departme nt to
293	510		disallow all or part of a presumptively approved course.
294	511		Professional association c ourses approved in accordance with this
295	512		paragraph shall be reviewed every three (3) two (2) years to
296	513		determine whether they continue t o qualify for continuing education
297	514		credit.
298		-
299	515		5. Subject to approval by the Commissioner, the active
300	516		membership of the licensed pro ducer or broker in local, regional,
301	517		state, or national professional insurance organizations or
302	518		associations may be approved for up to one (1) annual hour of
303	519		instruction. The hour shall be credited upon timely filing with the
304	520		Commissioner, or designee of t he Commissioner, and appropriate
305	521		written evidence acceptable to the Commissioner of such active
306	522		membership in the organization or association.
307		-
308	523		6. The active service of a licensed producer as a member of a
309	524		continuing education advisory committee, as descr ibed in paragraph 1
310	525
311		-	ENR. S. B. NO. 539 Page 8
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312	552		of this subsection, shall b e deemed to qualify for continuing
313	553		education credit on an hour-for-hour basis.
314		-
315	554		C. 1. Annual fees and course submission fees shall be set
316	555		forth as a rule by the Commissioner. The fees are payable to the
317	556		Insurance Commissioner. Provided, public -funded educational
318	557		institutions, federal agencies, nonprofit organizations, not-for-
319	558		profit organizations, and state agencies shall be exempt from this
320	559		subsection.
321		-
322	560		2. The Commissioner may assess a civil pena lty, after notice
323	561		and opportunity for hearing, against a c ontinuing education provider
324	562		who fails to comply with the requirements of the Oklahoma Producer
325	563		Licensing Act, of not less than One Hundred Dollars ($100.00) nor
326	564		more than Five Hundred Dollars ($500 .00), for each occurrence. The
327	565		civil penalty may be enfor ced in the same manner in which civil
328	566		judgments may be enforced.
329		-
330	567		D. Failure of an insurance producer to comply with the
331	568		requirements of the Oklahoma Producer Lic ensing Act may, after
332	569		notice and opportunity for hearing, result in censure, suspension,
333	570		nonrenewal of license or a civil penalty o f up to Five Hundred
334	571		Dollars ($500.00) or by both such penalty and civil penalt y. Said
335	572		civil penalty may be enforced in the same manner in which civil
336	573		judgments may be enfo rced.
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338	601		E. Limited lines producers and nonresident agents who have
339	602		successfully completed an equivalent or greater requirement shall be
340	603		exempt from the provisions of this section.
341		-
342	604		F. E. Members of the Legislat ure shall be exempt from this
343	605		section.
344		-
345	606		G. F. The Commissioner shall adopt and promulgate such rules as
346	607		are necessary for effective administration of this section.
347		-
348	608		SECTION 3. AMENDATORY 36 O.S. 2021, S ection 6206, is
349	609		amended to read as follows:
350		-
351	610		Section 6206. A. The Insurance Commissioner shall license as
352	611		an adjuster only an individual who has fully complied wit h the
353	612		provisions of the Insurance Adjusters Licensing Act, including the
354		-
355		-	ENR. S. B. NO. 539 Page 9
356	613		furnishing of evidence satisfactory to the Commissioner that the
357	614		applicant:
358		-
359	615		1. Is at least eighteen (18) years of age;
360		-
361	616		2. Is a bona fide re sident of this state or is a resident of a
362	617		state or country which permits adjusters who are residents of this
363	618		state to act as adjusters in such other state or country;
364		-
365	619		3. If a nonresident of the United States, has complied with all
366	620		federal laws pertaining to employment and the transaction of
367	621		business in the United States;
368		-
369	622		4. Is a trustworthy person;
370		-
371	623		5. Has had experience or special education or training of
372	624		sufficient duration and extent with reference to the handling of
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373	652		loss claims pursuant to insurance contracts to make the applicant
374	653		competent to fulfill the responsibilities of an adjuster;
375		-
376	654		6. Has successfully passed an examination as required by the
377	655		Commissioner within two (2) years prior to date of applica tion, or
378	656		has been exempted from examination, i n accordance with the
379	657		provisions of Sectio n 6208 of this title; and
380		-
381	658		7. If the application is for a public adjuster ’s license, the
382	659		applicant has filed the bond required by Section 6214 of this title.
383		-
384	660		B. Residence addresses and telephone listings, birth da tes, and
385	661		social security numbers for insur ance adjusters and public adjusters
386	662		on file with the Insurance Department are exempt from disclosure as
387	663		public records. A separate business or mailing address as provi ded
388	664		by the adjuster shall be considered a publ ic record and upon request
389	665		shall be disclosed. If an adjuster’s residence and business address
390	666		or residence and business telephone number are the same, such
391	667		address or telephone number shall be considered a pu blic record.
392		-
393	668		C. The mailing address shall app ear on all licenses of the
394	669		licensee, and the licensee shall promptly notify the Insurance
395	670		Commissioner within thirty (30) days of any change in legal name or
396	671		preferred mailing address, physical business address , e-mail
397	672		address, or physical residential addr ess of the licensee. A change
398		-
399		-	ENR. S. B. NO. 539 Page 10
400	673		in legal name or address thirty (30) days after the change must
401	674		include an administrative fee of Fifty Dollars ($50.00). Failure to
402	675		provide acceptable notification of a change of legal name or address
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403	703		to the Insurance Commis sioner within forty-five (45) days of the
404	704		date the administrative fee is assessed will result in penalties
405	705		pursuant to Section 6220 of this title.
406		-
407	706		D. An adjuster doing business in this state under any name
408	707		other than the adjuster’s legal name shall notify the Insurance
409	708		Commissioner and submit any payment necessary electronically and in
410	709		the form and manner prescribed by the Commissioner prior to using
411	710		the assumed name.
412		-
413	711		SECTION 4. AMENDATORY 36 O.S. 2021, Section 6217, is
414	712		amended to read as follows:
415		-
416	713		Section 6217. A. All licenses issued pursuant to the
417	714		provisions of the Insurance Adjusters Licensing Act shall continue
418	715		in force not longer than twenty -four (24) months. The renewal dates
419	716		for the licenses may be staggered throughout the year by notifying
420	717		licensees in writing o f the expiration and renewal date being
421	718		assigned to the licensees by the Insurance Commissioner and b y
422	719		making appropriate adjustments in the biennial licensing fee.
423		-
424	720		B. Any licensee applying for renewal of a license as an
425	721		adjuster shall have completed not less than twenty-four (24) clock
426	722		hours of continuing insurance education, of which three (3) hours
427	723		shall be in ethics, within the previou s twenty-four (24) months
428	724		prior to renewal of the license. The Insurance Commissioner shall
429	725		approve courses and provid ers of continuing education for insurance
430	726		adjusters as required by this section.
431	727
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432	754		The Insurance Depart ment may use one or more of the foll owing to
433	755		review and provide a nonbinding recommendation to the Insurance
434	756		Commissioner on approval or disapproval of cou rses and providers of
435	757		continuing education:
436		-
437	758		1. Employees of the Insurance Commissioner;
438		-
439	759		2. A continuing education advisory committee ;
440		-
441		-
442		-	ENR. S. B. NO. 539 Page 11
443	760		3. An independent service whose normal business activities
444	761		include the review and approval of continuing education cour ses and
445	762		providers. The Commissioner may negotiate agreements with such
446	763		independent service to review documents and other mate rials
447	764		submitted for approval of courses and providers and present the
448	765		Commissioner with its nonbinding recommendation. The Commis sioner
449	766		may require such independent service to collect the fee charged by
450	767		the independent service for reviewing materials prov ided for review
451	768		directly from the course providers.
452		-
453	769		C. An adjuster who, dur ing the time period prior to renewal,
454	770		participates in an approved professional designation program shall
455	771		be deemed to have met the biennial requirement for continuing
456	772		education. Each course in the curriculum for the program shall
457	773		total a minimum of twenty -four (24) hours. Each approved
458	774		professional designat ion program included in this section shall be
459	775		reviewed for quality and compliance every three (3) two (2) years in
460	776		accordance with standardized criteria promulgated by rule.
461	777		Continuation of approved status is contingent upon the findings of
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462	805		the review. The list of professional designation programs approved
463	806		under this subsection shall be made available to producers and
464	807		providers annually.
465		-
466	808		D. The Insurance Department may promulgate rules providing that
467	809		courses or programs offered by professional associatio ns shall
468	810		qualify for presumptive continuing education credit approval. The
469	811		rules shall include standardized criteria for reviewing th e
470	812		professional associations’ mission, membership, and other relevant
471	813		information, and shall provide a procedure for the De partment to
472	814		disallow a presumptively approved course. Professional association
473	815		courses approved in accordance with this subsection sh all be
474	816		reviewed every three (3) two (2) years to determine whether they
475	817		continue to qualify for continuing education credit.
476		-
477	818		E. The active service of a licensed adjuster as a member of a
478	819		continuing education advisory committee, as described in paragraph 2
479	820		of subsection B of this section, shall be deemed to qualify for
480	821		continuing education credit on an hou r-for-hour basis.
481		-
482	822		F. 1. Each provider of continuing education shall, after
483	823		approval by the Commissioner, submit an annual fee. A fee may be
484	824		assessed for each course submission at the time it is first
485		-
486		-	ENR. S. B. NO. 539 Page 12
487	825		submitted for review and upon s ubmission for renewal at expiration.
488	826		Annual fees and course submission fees shall be set forth as a rule
489	827		by the Commissioner. The fees are payable to the Insurance
490	828		Commissioner and shall be deposited in the State Insurance
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491	856		Commissioner Revolving Fund, cr eated in Section 307. 3 of this title,
492	857		for the purposes of fulfilling and accomplishing the conditions and
493	858		purposes of the Oklahoma Producer Licensing Act and the Insurance
494	859		Adjusters Licensing Act. Public-funded educational institutions,
495	860		federal agencies, nonprofit organizatio ns, not-for-profit
496	861		organizations and Oklahoma state agencies shall be exempt from this
497	862		subsection.
498		-
499	863		2. The Commissioner may assess a civil penalty, after notice
500	864		and opportunity for hearing, against a continuing education provider
501	865		who fails to comply with the requirements of th e Insurance Adjusters
502	866		Licensing Act, of not less than One Hundred Dollars ($100.00) nor
503	867		more than Five Hundred Dollars ($500.00), for each occ urrence. The
504	868		civil penalty may be enforced in the same manner in which civil
505	869		judgments may be enforced.
506		-
507	870		G. Subject to the right of the Commissioner to suspend, revoke,
508	871		or refuse to renew a license of an adjuster, any such license may be
509	872		renewed by filing on the form prescribed by the Commissioner on or
510	873		before the expiration date a written request by or on behalf of the
511	874		licensee for such renewal and proof of completion of the continuing
512	875		education requirement set forth in subsection B of this section,
513	876		accompanied by payment of the renewal fee.
514		-
515	877		H. If the request, proof of com pliance with the continuing
516	878		education requirement and fee for renewal of a license as an
517	879		adjuster are filed with the Commissioner prior to the expiration of
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518	907		the existing license, the lic ensee may continue to act pursuant to
519	908		said license, unless revoked or suspended prior to the expiration
520	909		date, until the issuance of a renewal license or until the
521	910		expiration of ten (10) days after the Commissioner has refused to
522	911		renew the license and has m ailed notice of said refusal to the
523	912		licensee. Any request for renewal filed after the date of
524	913		expiration may be considered by the Commissioner as an application
525	914		for a new license.
526		-
527	915		SECTION 5. AMENDATORY 36 O.S. 2021, Section 6220, is
528	916		amended to read as fol lows:
529		-
530		-	ENR. S. B. NO. 539 Page 13
531		-
532	917		Section 6220. A. The Commissioner may censure, suspend,
533	918		revoke, or refuse to iss ue or renew a license after hearing pursuant
534	919		to the Insurance Adjusters Licensing Act , levy a civil penalty in
535	920		accordance with subsection B of this section, or any combination of
536	921		actions for any of the following causes:
537		-
538	922		1. Material misrepresentation or fr aud in obtaining an
539	923		adjuster’s license;
540		-
541	924		2. Any cause for which original issuance of a license could
542	925		have been refused;
543		-
544	926		3. Misappropriation, conversion to the personal use of the
545	927		licensee, or illegal withhold ing of monies required to be held by
546	928		the licensee in a fiduciary capacity;
547		-
548	929		4. Material misrepresentation of the terms and effect of any
549	930		insurance contract, with intent to deceive, or engaging in, or
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550	958		attempting to engage in, any fraudulent transaction with respect to
551	959		a claim or loss that the licensee o r the trainee is adjusting and,
552	960		in the case of a public adjuster, misrepresentation of the services
553	961		offered or the fees or commission to be charged;
554		-
555	962		5. Conviction of or pleading guilty or nolo contendere to a
556	963		felony pursuant to the laws of this state, any other state, the
557	964		United States, or any foreign country;
558		-
559	965		6. If in the conduct of business affairs, the licensee or
560	966		trainee has shown himself to be, and is so deemed by the
561	967		Commissioner, incompetent, untrustwo rthy or a source of injury to
562	968		the public;
563		-
564	969		7. Refusal to comply with any lawful order of the Commissioner;
565		-
566	970		8. Violation of any provision of the Insurance Adjusters
567	971		Licensing Act;
568		-
569	972		9. Adjusting losses or negotiating claim settlements arising
570	973		pursuant to provisions of insurance contracts on behalf of an
571	974		insurer or insured without proper licensing from the Commissioner
572	975		and authority from the licensed insurer or the insured party;
573		-
574		-	ENR. S. B. NO. 539 Page 14
575		-
576	976		10. Failing to respond to any inquiry (including electronic
577	977		communications) from the Department within thirty (30) calendar da ys
578	978		of receipt of such inquiry;
579		-
580	979		11. Forging another ’s name to any document;
581		-
582	980		12. Improperly using notes or any other reference material to
583	981		complete an examination for a n insurance license;
584	982
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585	1009		13. Having admitted or been found to have committed any
586	1010		insurance unfair trade practice or insurance fraud;
587		-
588	1011		14. Having an insurance adjuster license or its equivalent
589	1012		denied, suspended, censured, placed on probation or revoked in any
590	1013		other state, province, district or terri tory;
591		-
592	1014		15. Failing to inform the Department, by any means acceptable
593	1015		to the Department, of a change of address, change of legal name or
594	1016		change of information submitted on the application within thirty
595	1017		(30) days of the change; or
596		-
597	1018		16. Providing services as a public adjuster, company adjuster
598	1019		or independent adjuster on the same claim.
599		-
600	1020		B. In addition to or in lieu of any applicable denial,
601	1021		suspension, or revocation of a license, any person violating the
602	1022		provisions of the Insurance Adjusters Licensing Act may be subject
603	1023		to a civil fine of not more than One Thousand Dollars ($1,000.00)
604	1024		for each violation. This fine may be enforced in the same manner in
605	1025		which civil judgment may be enforced.
606		-
607	1026		C. If the license of an adjust er is suspended, revoked, or not
608	1027		renewed, the licensee shall surrender the license to th e
609	1028		Commissioner.
610		-
611	1029		D. The Commissioner shall not reinstate a license to any person
612	1030		whose license has been suspended, revoked, or refused renewal until
613	1031		the Commissioner determines that the cause or causes for the
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614	1059		suspension, revocation, or nonrenewal of the l icense no longer
615	1060		exist.
616		-
617		-
618		-	ENR. S. B. NO. 539 Page 15
619	1061		E. D. The Department shall retain the authority to enforce the
620	1062		provisions of and impose any penalty or remedy authorized by this
621	1063		title against any person who is under investigation for or charged
622	1064		with a violation even if the person ’s license or registration has
623	1065		been surrendered or has lapsed by operation of law.
624		-
625	1066		F. E. It shall be unlawful for any person, firm, association,
626	1067		company or corporation to act as an adjuster without first obtaining
627	1068		a license pursuant to the Insurance Adjus ters Licensing Act. Any
628	1069		person convicted of violating the provisions of this subsection
629	1070		shall be guilty of a misdemeanor and shall be punished as set forth
630	1071		in Section 10 of Title 21 of the Oklahoma Statutes. The restriction
631	1072		set forth in this subsection s hall apply regardless of whether the
632	1073		person, firm, association, company or corporation has obtained power
633	1074		of attorney from an insurance claimant or has entered into any other
634	1075		agreement with an insurance claimant to act on the behalf of the
635	1076		claimant.
636		-
637	1077		SECTION 6. This act shall become effective November 1, 2023.
638	1078
639		-
640		-	ENR. S. B. NO. 539 Page 16
641		-	Passed the Senate the 13th day of February, 2023.
642		-
643		-
644		-
645		-	Presiding Officer of the Senate
646		-
647		-
648		-	Passed the House of Representatives the 25th day of April, 2023.
649		-
650		-
651		-
652		-	Presiding Officer of the House
653		-	of Representatives
654		-
655		-	OFFICE OF THE GOVERNOR
656		-	Received by the Office of the Governor this _______ _____________
657		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
658		-	By: _______________________________ __
659		-	Approved by the Governor of the State of Oklahoma this _____ ____
660		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
661		-
662		-	_________________________________
663		-	Governor of the State of Oklahoma
664		-
665		-
666		-	OFFICE OF THE SECRETARY OF STATE
667		-	Received by the Office of the Secretary of State this _______ ___
668		-	day of __________________, 20 _______, at _______ o'clock _______ M.
669		-	By: _______________________________ __
	1079	+	COMMITTEE REPORT BY: COMMITTEE ON INSURANCE, dated 04/04/2023 - DO
	1080	+	PASS.