Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB542 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	SB542 HFLR Page 1
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	3	+	ENGR. S. B. NO. 542 Page 1 1
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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31		-	STATE OF OKLAHOMA
32		-
33		-	1st Session of the 59th Legislature (2023)
34	27
35	28		ENGROSSED SENATE
36	29		BILL NO. 542 By: Montgomery of the Senate
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38	31		and
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40	33		Sneed of the House
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45	38		An Act relating to the Insurance Department; amendi ng
46	39		36 O.S. 2021, Section s 350, 606.1, 607, as amended by
47	40		Section 1, Chapter 152, O.S.L. 2022 , 924.1, 1641, and
48	41		6652 (36 O.S. Supp. 2022, Sec tion 607), which relate
49	42		to electronic filings, proc edures and requirements
50	43		for insurers, rule promulgation, and compliance;
51	44		clarifying requirements fo r certain filings and
52	45		submissions; modifying public hearing process;
53	46		modifying required reduction in premium charges for
54	47		certain insureds; requiring certain insurers maintain
55	48		up-to-date information with the Insurance
56	49		Commissioner; updating statutory language; making
57	50		language gender neutral; updating statutory
58	51		reference; and providing an effective date.
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63	56		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
64	57		SECTION 1. AMENDATORY 36 O.S. 2021, Section 350, is
65	58		amended to read as follows :
66	59		Section 350. Notwithstanding any other provision of l aw that
67	60		requires a particular form and associate d payment to be filed with
68	61		the Insurance Department in paper form, or to be mailed or hand -
69	62		delivered to the Insurance Department, the Insurance Commissi oner
	63	+	may, by appropriate order, require that all filings of that specific
	64	+	type be filed or delivered in an electronic format. Electronic
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71		-	SB542 HFLR Page 2
72		-	BOLD FACE denotes Committee Amendments. 1
	66	+	ENGR. S. B. NO. 542 Page 2 1
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97		-	may, by appropriate order, require that all filings of that specific
98		-	type be filed or delivered in an electronic format. Electronic
99	91		filings shall include payment of any tra nsaction, filing, or other
100	92		applicable fees.
101	93		SECTION 2. AMENDATORY 36 O.S. 2021, Section 606.1, is
102	94		amended to read as follows:
103	95		Section 606.1. A. 1. Any foreign or alien insurer which is
104	96		organized under the laws of any other jurisdiction for the purpose
105	97		of transacting insurance may become a domestic insurer by complying
106	98		with all of the requirements of law relat ive to the organization and
107	99		licensing of a domes tic insurer of the same type and by designating
108	100		its principal place of business at a location in this state ,
109	101		provided, the Insurance Commissioner approves the insurer’s
110	102		application for redomestication following a public hearing. Said
111	103		Such domestic insurer will be entitled to like certificates and
112	104		licenses to transact business in this state and shall be subject to
113	105		the authority and jurisdictio n of this state.
114	106		2. The Commissioner shall approve an insurer ’s application to
115	107		redomesticate unless, after a public hear ing thereon, he or she
116	108		finds that:
117	109		a. the insurer cannot c omply with all the requirements of
118	110		law relative to the organization and licensing of a
119	111		domestic insurer,
	112	+	b. after redomestication, the insurer wo uld not be able
	113	+	to satisfy the requirements for the issuance of a
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121		-	SB542 HFLR Page 3
122		-	BOLD FACE denotes Committee Amendments. 1
	115	+	ENGR. S. B. NO. 542 Page 3 1
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147		-	b. after redomestication, the insurer wo uld not be able
148		-	to satisfy the requirements for the issuance of a
149	140		license to write the line or lines of insuran ce for
150	141		which it is presently licensed,
151	142		c. the effect of the redomestication would be
152	143		substantially to lessen competition in insurance in
153	144		this state or tend to create a monopoly therein,
154	145		d. the financial condition of the insurer is such as
155	146		might jeopardize or prejudice the interest of its
156	147		policyholders or the state and is not in the public
157	148		interest, or
158	149		e. the competence, experience and integrity of those
159	150		persons who control the operation of the insurer are
160	151		such that it would not be in the interest of the
161	152		policyholders, the public or the state to permit the
162	153		redomestication.
163	154		3. The insurer’s application to redomesticate shall contain
164	155		information acceptable to the Commissioner concerning its financial
165	156		condition, its plan of operation for the succeeding three (3 ) years,
166	157		and information concerning the compe tence, experience and integrity
167	158		of those persons who control the operation of the insurer.
168	159		4. If the Commissioner determines that grounds exist to
169	160		disapprove the application to redomesticate, a public hearing s hall
170	161		be held. The application for redomestic ation shall be deemed
	162	+	approved unless the Co mmissioner has, within thirty (30) days after
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172		-	SB542 HFLR Page 4
173		-	BOLD FACE denotes Committee Amendments. 1
	164	+	ENGR. S. B. NO. 542 Page 4 1
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198		-	approved unless the Co mmissioner has, within thirty (30) days after
199	189		the conclusion of the hearing, entered his or her order disapproving
200	190		the redomestication.
201	191		B. Any domestic insurer may, upon the approval of the Insurance
202	192		Commissioner, transfer its domicile to any other state in which it
203	193		is admitted to transact the business of insu rance, and upon such a
204	194		transfer, shall cease to be a domestic insur er, and shall be
205	195		admitted to this state if qualifie d as a foreign insurer. The
206	196		Commissioner shall approve any such proposed transfer unless he or
207	197		she shall determine such transfer is not i n the interest of the
208	198		policyholders of this state.
209	199		C. The certificate of authority, agents appointments and
210	200		licenses, rates, and other items which the Insu rance Commissioner
211	201		allows, in his or her discretion, which are in existence at the time
212	202		any insurer licensed to transact the business of insurance in this
213	203		state transfers its corpor ate domicile to this or any other state by
214	204		merger, consolidation or any oth er lawful method shall continue in
215	205		full force and effect upon such transfer if such insurer remains
216	206		duly qualified to transact the business of insurance in this state.
217	207		All outstanding policies and other contracts of any transferrin g
218	208		insurer shall remain i n full force and effect and need not be
219	209		endorsed as to the new name of the company or its new locati on
220	210		unless so ordered by the Commissio ner. Every transferring insurer
221	211		shall file new policy forms with the Commissioner on or before the
	212	+	effective date of the transfer, but may use existing policy for ms
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223		-	SB542 HFLR Page 5
224		-	BOLD FACE denotes Committee Amendments. 1
	214	+	ENGR. S. B. NO. 542 Page 5 1
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249		-	effective date of the transfer, but may use existing policy for ms
250	239		with appropriate endorsements if allowed by, and unde r such
251	240		conditions as approved by, the Commissioner. However, every such
252	241		transferring insurer shall notify the Commissioner of the d etails of
253	242		the proposed transfer, and shall file promptly, any result ing
254	243		amendments to corporate documents required to be fil ed with the
255	244		Commissioner.
256	245		D. The Insurance Commissioner may promulgate rules and
257	246		regulations to carry out the purposes of this sect ion.
258	247		SECTION 3. AMENDATORY 36 O.S. 2021, Section 607, as
259	248		amended by Section 1, Chapter 152, O.S.L. 2022 (36 O.S. Supp. 2022,
260	249		Section 607), is amended to read as follows:
261	250		Section 607. A. To qualify for and hold authority to transact
262	251		insurance in Oklahom a an insurer must be otherwise in compliance
263	252		with the provisions of this the Oklahoma Insurance Code and with its
264	253		charter powers, and must b e an incorporated stock insurer, an
265	254		incorporated mutual insurer, a mutual benefit association, a
266	255		nonprofit hospital service and medical indemnity corporation, a
267	256		farmers mutual fire insurance association, a Lloyd ’s association or
268	257		a reciprocal insurer, of the same gene ral type as may be formed as a
269	258		domestic insurer under this Code; except, that no foreign or alien
270	259		insurer shall be authorized to transact insurance i n Oklahoma which
271	260		does not maintain reserves as required by Article 15 of this Code
	261	+	applicable to the kind o r kinds of insurance transacted by such
	262	+	insurer.
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273		-	SB542 HFLR Page 6
274		-	BOLD FACE denotes Committee Amendments. 1
	264	+	ENGR. S. B. NO. 542 Page 6 1
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299		-	applicable to the kind o r kinds of insurance transacted by such
300		-	insurer.
301	289		B. No certificate of authority or license to transact a ny kind
302	290		of direct insurance business in this state shall be issued, renewed
303	291		or continued in effect, to any domestic, foreign or alien insurance
304	292		company or other insurance entity which is owned or fin ancially
305	293		controlled in whole or in part by another state of the United
306	294		States, or by a foreign govern ment, or by any political subdivision
307	295		of either, or which is an agency of any such state, government or
308	296		subdivision.
309	297		C. A domestic, foreign, or alien insurance company, or entity
310	298		thereof which is owned or financ ially controlled in whole or in part
311	299		by another state of the United States, a foreign government, or any
312	300		political subdivision thereof, or which is an agency of any such
313	301		state, government, or subdiv ision may apply only for a certificate
314	302		of authority as a reinsurer. Such insurance company or entity shall
315	303		establish and maintain a regional home office in t his state, in a
316	304		building owned or leased by the insurer, that employs Oklahoma
317	305		employees as defined pursuant to Section 625.1 of this title.
318	306		Insurance companies or entities obtaining a certificate of authority
319	307		under this subsection shall maintain secur ity deposits pursuant to
320	308		this code Code in a bank as defined pursuant to Section 102 of Title
321	309		6 of the Oklahoma Statutes.
	310	+	D. Any insurance company or other insurance entity which is
	311	+	owned or financially controlled in whole or in part by any federally
	312	+	recognized American Indian tribe or nation may apply for a
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323		-	SB542 HFLR Page 7
324		-	BOLD FACE denotes Committee Amendments. 1
	314	+	ENGR. S. B. NO. 542 Page 7 1
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349		-	D. Any insurance company or other insurance entity which is
350		-	owned or financially controlled in whole or in part by any federally
351		-	recognized American Indian tribe or nation may apply for a
352	339		certificate of authority or license to transact in surance business
353	340		in this state and will not be subject to subsection B of this
354	341		section.
355	342		E. Insurers under the jurisdiction of the Insurance
356	343		Commissioner shall keep any contact information deemed necessary by
357	344		the Commissioner on file with the Insurance Department . Contact
358	345		information shall be kept current an d submitted electronically in
359	346		the manner and form prescribed by the Commissioner, along with any
360	347		applicable fees. Any change in contact information shall be
361	348		submitted within twenty (20) days of the change.
362	349		SECTION 4. AMENDATORY 3 6 O.S. 2021, Section 924.1, is
363	350		amended to read as follows:
364	351		Section 924.1. A. Any schedule of rates or rating plan for
365	352		automobile or motorcycle liabil ity and physical damage insurance
366	353		submitted to or filed with the State Insurance Commissioner shall
367	354		provide for an appropriate reduction in premium c harges for those
368	355		insured persons for a three -year period after successfully
369	356		completing a motor vehicle acci dent prevention course which shall
370	357		include but not be limited to an automobile or motorcycle accident
371	358		prevention course as approved by the insurance company of the
372	359		policyholder. Provided, however, there s hall be no reduction in
	360	+	premiums for a self-instructed course or a course which does not
	361	+	provide for actual classroom or field driving instruction for a
	362	+	minimum number of hours as provided in subsecti on E of this section.
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374		-	SB542 HFLR Page 8
375		-	BOLD FACE denotes Committee Amendments. 1
	364	+	ENGR. S. B. NO. 542 Page 8 1
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400		-	premiums for a self-instructed course or a course which does not
401		-	provide for actual classroom or field driving instruction for a
402		-	minimum number of hours as provided in subsecti on E of this section.
403	389		Provided further, there shall be no reduction in premiums for a
404	390		course attended purs uant to a court order in connection with a motor
405	391		vehicle violation or an alcohol- or drug-related offense.
406	392		B. All insurance companies writing automo bile or motorcycle
407	393		liability and physical damage insuran ce in this state shall allow an
408	394		appropriate reduction in premium charges to all eligible persons
409	395		pursuant to this section.
410	396		C. Upon successfully completing the approved course, each
411	397		participant shall be issued by the sponsoring agency of the course,
412	398		a certificate which shall be the basis of qualification f or the
413	399		discount on insurance.
414	400		D. Each participant shall successfully complete an approved
415	401		course each three (3) years to continue to be eligible for the
416	402		discount on insurance.
417	403		E. An approved course pursu ant to this section shall provide at
418	404		least six (6) hours of instruction.
419	405		SECTION 5. AMENDATORY 36 O.S. 2021, Section 1641, is
420	406		amended to read as follows:
421	407		Section 1641. The Commissioner may, upon notice and opportunity
422	408		for all interested persons to be heard, issue such rules,
	409	+	regulations and orders as sh all be necessary to carry out th e
	410	+	provisions of this act Section 1631 et seq. of this title.
	411	+	SECTION 6. AMENDATORY 36 O.S. 2021, S ection 6652, is
	412	+	amended to read as follows:
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424		-	SB542 HFLR Page 9
425		-	BOLD FACE denotes Committee Amendments. 1
	414	+	ENGR. S. B. NO. 542 Page 9 1
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450		-	regulations and orders as sh all be necessary to carry out th e
451		-	provisions of this act Section 1631 et seq. of this title.
452		-	SECTION 6. AMENDATORY 36 O.S. 2021, S ection 6652, is
453		-	amended to read as follows:
454	439		Section 6652. A. No vehicle protection product may be sold or
455	440		offered for sale in this st ate unless the seller, warrantor and
456	441		administrator, if any, comply with the provisions of the Vehicle
457	442		Protection Product Act.
458	443		B. Vehicle protecti on product warrantors and related vehicle
459	444		protection product sellers and warranty administrators complying
460	445		with the Vehicle Protection Product Act are not required to comply
461	446		with and are not subject to any other provisions of the Oklahoma
462	447		Insurance Code.
463	448		C. Service Licensed service contract providers who may sell
464	449		vehicle protection products and are licensed motor vehicle ancillary
465	450		protection products under the Service Warranty Act in Title 15 of
466	451		the Oklahoma Statutes and such sales are shall not be subject to the
467	452		requirements of the Vehicle Protection Product Act and sales.
468	453		Licensed service contract providers may also be registered under the
469	454		Vehicle Protection Product Act. Sales of the vehicle protection
470	455		products under the Vehicle Protection Product Act a re exempt from
471	456		the requirements of the Service Warranty Act.
	457	+	D. Warranties, indemnity agreements and guarantees that a re not
	458	+	provided as a part of a vehicle protection product are not subject
	459	+	to the provisions of the Vehicle Protection Product Act.
	460	+	SECTION 7. This act shall become effective November 1, 2023.
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473		-	SB542 HFLR Page 10
474		-	BOLD FACE denotes Committee Amendments. 1
	462	+	ENGR. S. B. NO. 542 Page 10 1
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499		-	D. Warranties, indemnity agreements and guarantees that a re not
500		-	provided as a part of a vehicle protection product are not subject
501		-	to the provisions of the Vehicle Protection Product Act.
502		-	SECTION 7. This act shall become effective November 1, 2023.
	487	+	Passed the Senate the 13th day of February, 2023.
503	488
504		-	COMMITTEE REPORT BY: COMMITTEE ON INSURANCE, dated 04/04/2023 - DO
505		-	PASS.
	489	+
	490	+
	491	+	Presiding Officer of the Senate
	492	+
	493	+
	494	+	Passed the House of Representatives the ____ day of __________,
	495	+	2023.
	496	+
	497	+
	498	+
	499	+	Presiding Officer of the House
	500	+	of Representatives
	501	+