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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 542 By: Montgomery
AS INTRODUCED
An Act relating to the Insurance Department; amending
36 O.S. 2021, Sections 350, 606.1, 924.1, 1250.4,
1641, and 6652, which relate to electronic filings,
procedures and requirements for insurers, rule
promulgation, and compl iance; clarifying requirements
for certain filings and submissi ons; modifying public
hearing process; modifying required reduction in
premium charges for certain i nsureds; requiring
certain insurers to maintain up-to-date information
with the Insurance Commissioner; updating statutory
language; conforming lan guage; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 36 O.S. 2021, Section 350, is
amended to read as follows:
Section 350. Notwithstanding any other provision of law that
requires a particular form and associate d payment to be filed with
the Insurance Department in paper form, or to be mailed or hand -
delivered to the Insurance D epartment, the Insurance Commissioner
may, by appropriate order, require that all filings , including the
payment of any transaction, fili ng, or other fee prescribed by the
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Commissioner, of that specific type be filed or delivered in an
electronic format.
SECTION 2. AMENDATORY 36 O.S. 2021, Section 606.1, is
amended to read as f ollows:
Section 606.1. A. 1. Any foreign or alien insurer which is
organized under the laws of any other jurisdiction for the purpose
of transacting insurance may become a domestic insurer by complying
with all of the requirements of law relative to the organization and
licensing of a domes tic insurer of the same type and by designating
its principal place of business at a location in this state,
provided, the Insurance Co mmissioner approves the insurer ’s
application for redomestication following a public hearing. Said
domestic insurer will be entitled to like certificates and licenses
to transact business in this state and shall be subject to the
authority and jurisdictio n of this state.
2. The Commissioner shall approve an insurer ’s application to
redomesticate unless, after a public hear ing thereon, he finds that:
a. the insurer cannot c omply with all the requirements of
law relative to the organization and licensing of a
domestic insurer,
b. after redomestication, the insurer would not be able
to satisfy the requirements for the issuance of a
license to write the line or lines of insuran ce for
which it is presently licensed,
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c. the effect of the redomestication would be
substantially to lessen competition in insurance in
this state or tend to create a monopoly therein,
d. the financial condition of the insurer is such as
might jeopardize or prejudice the interest of its
policyholders or the state and is not in the public
interest, or
e. the competence, experience and integrity of those
persons who control the operation of the insurer are
such that it would not be in the interest of the
policyholders, the public or the state to permit the
redomestication.
3. The insurer’s application to redomesticate shall contain
information acceptable to the Commissio ner concerning its financial
condition, its plan of operation for the succeeding three (3 ) years,
and information concerning the competence, experience and integrity
of those persons who control the operation of the insurer.
4. If the Commissioner determi nes that grounds exist to
disapprove the application to redomesticate, a public hearing s hall
be held. The application for redomestication shall be deemed
approved unless the Commissioner has, within thirty (30) days after
the conclusion of the hearing, en tered his order disapproving the
redomestication.
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B. Any domestic insurer may, upon the approval of the Insurance
Commissioner, transfer its domicile to any other state in which it
is admitted to transact the business of insurance, and upon such a
transfer, shall cease to be a domestic insur er, and shall be
admitted to this state if qualifie d as a foreign insurer. The
Commissioner shall approve any such proposed transfer unless he
shall determine such transfer is not in the interest of the
policyholders of this state.
C. The certificate of authority, agents appointments and
licenses, rates, and other items which the Insurance Commissioner
allows, in his discretion, which are in existence at the time any
insurer licensed to transact the business of insuran ce in this state
transfers its corpor ate domicile to this or any other state by
merger, consolidation or any other lawful method shall continue in
full force and effect upon such transfer if such insurer remains
duly qualified to transact the business of i nsurance in this state.
All outstanding policies and other contracts of any transferrin g
insurer shall remain in full force and effect and need not be
endorsed as to the new name of the company or its new location
unless so ordered by the Commissioner. E very transferring insurer
shall file new policy forms with the Commissioner on or before the
effective date of the transfer, but may use existing policy forms
with appropriate endorsements if allowed by, and under such
conditions as approved by, the Commis sioner. However, every such
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transferring insurer shall notify the Commissioner of the d etails of
the proposed transfer, and shall file promptly, any resulting
amendments to corporate documents required to be filed with the
Commissioner.
D. The Insurance Commissioner may promulgate rules and
regulations to carry out the purposes of this sect ion.
SECTION 3. AMENDATORY 36 O.S. 2021, Section 924.1, is
amended to read as follows:
Section 924.1. A. Any schedule of rates or rating pla n for
automobile or motorcycle liabil ity and physical damage insurance
submitted to or filed with the State Insurance Commissioner shall
provide for an appropriate reduction in premium charges for those
insured persons for a three -year period after success fully
completing a motor vehicle acci dent prevention course which shall
include but not be limited to an automobile or motorcycle accident
prevention course as approved by the insurance company of the
policyholder. Provided, however, there shall be no red uction in
premiums for a self-instructed course or a course which does not
provide for actual classroom or field driving instruction for a
minimum number of hours as provided in subsection E of this section.
Provided further, there shall be no reduction i n premiums for a
course attended purs uant to a court order in connection with a motor
vehicle violation or an alcohol - or drug-related offense.
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B. All insurance companies writing automobile or motorcycle
liability and physical damage insurance in this sta te shall allow an
appropriate reduction in premium charges to all eligible persons
pursuant to this section.
C. Upon successfully completing the approved course, each
participant shall be issued by the sponsoring agency of the course,
a certificate which shall be the basis of qualification f or the
discount on insurance.
D. Each participant shall successfully complete an approved
course each three (3) years to continue to be eligible for the
discount on insurance.
E. An approved course pursuant to this se ction shall provide at
least six (6) hours of instruction.
SECTION 4. AMENDATORY 36 O.S. 2021, Section 1250.4, is
amended to read as follows:
Section 1250.4. A. An insurer’s claim files shall be subject
to examination by the Ins urance Commissioner or by duly appoin ted
designees. Such files shall contain all notes and work papers
pertaining to a claim in such detail that pertinent events and the
dates of such events can be reconstructed. In addition, the
Insurance Commissioner, authorized employees and examiners sh all
have access to any of an insurer ’s files that may relate to a
particular complaint under investigation or to an inquiry or
examination by the Insurance Department.
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B. Any person subject to the jurisdiction of the C ommissioner,
upon receipt of any inqu iry from the Commissioner shall, within
twenty (20) calendar days from the date of receipt of the inquiry,
furnish the Commissioner with an adequate response to the inquiry.
The Commissioner may, upon good cause shown and on a case-by-case
basis, extend the time allowed for a response for up to seven (7)
additional calendar days. Any i nquiry or response subject to this
subsection shall be delivered electronically.
C. Every insurer subject to this section shall submit to the
Insurance Commissioner any change in contact information, including,
but not limited to, legal or assumed na me, business mailing address,
email address for any contact person for the insurer, or telephone
number. The notification shall be submitted electronically in the
manner and form prescribed by the Commissioner, along with any fees
deemed necessary.
D. Every insurer, upon receipt of any pertinent written
communication including but not limited to e -mail or other forms of
written electronic co mmunication, or documentation by the insurer of
a verbal communication from a claimant wh ich reasonably suggests
that a response is expected, shall, within thirty (30) days after
receipt thereof, furnish the claimant with an adequate response to
the communication.
D. E. Any violation by an insurer of this section shall subject
the insurer to discipline including a civil penalty of not less than
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One Hundred Dollars ($100.00) nor more than Five Thousand Dollars
($5,000.00).
SECTION 5. AMENDATORY 36 O.S. 2021, Section 16 41, is
amended to read as follows:
Section 1641. The Commissioner may, upon notice and opportunity
for all interested persons to be heard, issue such rules,
regulations and orders as shall be necessary to carry out th e
provisions of this act.
SECTION 6. AMENDATORY 36 O.S. 2021, S ection 6652, is
amended to read as follows:
Section 6652. A. No vehicle protection product may be sold or
offered for sale in this state unless the seller, warrantor and
administrator, if any, comply wit h the provisions of the Vehicle
Protection Product Act.
B. Vehicle protectio n product warrantors and related vehicle
protection product sellers and warranty administrators complying
with the Vehicle Protection Product Act are not required to comply
with and are not subject to any other provisions of the I nsurance
Code.
C. Service Licensed service contract providers who may sell
vehicle protection products and are licensed motor vehicle ancillary
protection products under the Service Warranty Act in Title 15 of
the Oklahoma Statutes. Sales under this subsection are shall not be
subject to the requirements of the Vehicle Protection Product Act .
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and sales Licensed service contract providers may also be registered
under the Vehicle Protection Product Act. Sales of the vehicle
protection products under the Vehicle Protection Product Act are
exempt from the requirements of the Service Warranty Act.
D. Warranties, indemnity agreements and guarantees that are not
provided as a part of a vehicle protection produ ct are not subject
to the provisions of the Vehicle Protection Product Act.
SECTION 7. This act shall become effective November 1, 2023.
59-1-390 RD 1/17/2023 5:31:55 PM