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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
COMMITTEE SUBSTITUTE
FOR
SENATE BILL 542 By: Montgomery of the Senate
and
Sneed of the House
COMMITTEE SUBSTITUTE
An Act relating to the Insurance Department; amendi ng
36 O.S. 2021, Sections 350, 606.1, 607, as amended by
Section 1, Chapter 152, O.S.L. 2022 , 924.1, 1641, and
6652 (36 O.S. Supp. 2022, Sec tion 607), which relate
to electronic filings, proc edures and requirements
for insurers, rule promulgation, and compliance;
clarifying requirements fo r certain filings and
submissions; modifying public hearing process;
modifying required reduction in premium charges for
certain insureds; requiring certain insurers maintain
up-to-date information with the Insurance
Commissioner; updating statutory language; making
language gender neutral; updating statutory
reference; 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 t hat
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 Department, the Insurance Commissioner
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may, by appropriate order, require that all filings of that specific
type be filed or delivered in an electronic format. Electronic
filings shall include payment of any tra nsaction, filing, or other
applicable fees.
SECTION 2. AMENDATORY 36 O.S. 2021, Section 606.1, is
amended to read as follows:
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 Commissioner approves the insurer ’s
application for redomestication following a public hearing. Said
Such 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 or she
finds that:
a. the insurer cannot c omply with all the requirements of
law relative to the organization and licensing of a
domestic insurer,
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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,
c. the effect of the redomestication would be
substantially to lessen competition in insurance in
this state or tend to cr eate 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 Com missioner concerning its financial
condition, its plan of operation for the succeeding three (3 ) years,
and information concerning the compe tence, experience and integrity
of those persons who control the operation of the insurer.
4. If the Commissioner d etermines that grounds exist to
disapprove the application to redomesticate, a public hearing s hall
be held. The application for redomestic ation shall be deemed
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approved unless the Commissioner has, within thirty (30) days after
the conclusion of the hear ing, entered his or her order disapproving
the redomestication.
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 or
she 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 Insu rance Commissioner
allows, in his or her discretion, which are in existence at the time
any insurer licensed to transact the business of insurance in this
state transfers its corpor ate domicile to this or any other state by
merger, consolidation or any oth er lawful method shall continue in
full force and effect upon such transfer if such insurer remains
duly qualified to transact the busine ss of insurance in this state.
All outstanding policies and other contracts of any transferrin g
insurer shall remain i n 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 Commissio ner. Every transferring insurer
shall file new policy forms with the Commissioner on or before the
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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 Commissioner. However, every such
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 607, as
amended by Section 1, Chapter 152, O.S.L. 2022 (36 O.S. Supp. 2022,
Section 607), is amended to read as follows:
Section 607. A. To qualify for and hold authority to transact
insurance in Oklahom a an insurer must be otherwise in compliance
with the provisions of this the Oklahoma Insurance Code and with its
charter powers, and must b e an incorporated stock insurer, an
incorporated mutual insurer, a mutual benefit association, a
nonprofit hospital service and medical indemnity corporation, a
farmers mutual fire insurance association, a Lloyd ’s association or
a reciprocal insurer, of the same gene ral type as may be formed as a
domestic insurer under this Code; except, that no foreign or alien
insurer shall be authorized to transact insurance in Oklahoma which
does not maintain reserves as required by Article 15 of this Code
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applicable to the kind o r kinds of insurance transacted by such
insurer.
B. No certificate of authority or license to transact a ny kind
of direct insurance business in this state shall be issued, renewed
or continued in effect, to any domestic, foreign or al ien insurance
company or other insurance entity which is owned or fin ancially
controlled in whole or in part by another state of the United
States, or by a foreign government, or by any political subdivision
of either, or which is an agency of any such sta te, government or
subdivision.
C. A domestic, foreign, or alien insurance company, or entity
thereof which is owned or financ ially controlled in whole or in part
by another state of the United States, a foreign government, or any
political subdivision thereof, or which is an agency of any such
state, government, or subdiv ision may apply only for a certificate
of authority as a reinsurer. Such insurance company or entity shall
establish and maintain a regional home office in this state, in a
building owned or leased by the insurer, that employs Oklahoma
employees as defined pursuant to Section 625.1 of this title.
Insurance companies or entities obtaining a certificate of au thority
under this subsection shall maintain secur ity deposits pursuant to
this code Code in a bank as defined pursuant to Section 102 of Title
6 of the Oklahoma Statutes.
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D. Any insurance company or other insurance entity which is
owned or financially controlled in whole or in part by any federally
recognized American Indian tribe or nation may apply for a
certificate of authority or license to transact in surance business
in this state and will not be subject to subsection B of this
section.
E. Insurers under the jurisdiction of the Insurance
Commissioner shall keep any contact information deemed necessary by
the Commissioner on file with the Insurance Department . Contact
information shall be kept current an d submitted electronically in
the manner and form prescribed by the Commissioner, along with any
applicable fees. Any change in contact information shall be
submitted within twenty (20) days of the change.
SECTION 4. AMENDATORY 3 6 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
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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.
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 5. AMENDATORY 36 O.S. 2021, Section 1641, 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,
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regulations and orders as sh all be necessary to carry out th e
provisions of this act Section 1631 et seq. of this title.
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 st ate unless the seller, warrantor and
administrator, if any, comply with 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 Oklahoma
Insurance 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 and such sales are shall not be subject to the
requirements of the Vehicle Protection Product Act 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.
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D. Warranties, indemnity agreements and guarantees that a re not
provided as a part of a vehicle protection product are not subject
to the provisions of the Vehicle Protection Product Act.
SECTION 7. This act shall become effective November 1, 2023.
59-1-1783 RD 2/8/2023 9:50:06 AM