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Oklahoma OK
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2023 Regular Session
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SB548
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Oklahoma Senate Bill SB548

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Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB548 Compare Versions

Only one version of the bill is available at this time.

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
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4	4		Req. No. 392 Page 1 1
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53	53		STATE OF OKLAHOMA
54	54
55	55		1st Session of the 59th Legislature (2023)
56	56
57	57		SENATE BILL 548 By: Montgomery
58	58
59	59
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63	63		AS INTRODUCED
64	64
65	65		An Act relating to prepaid vision plans; creating the
66	66		Prepaid Vision Plan Act; providing short title;
67	67		defining terms; requiring cer tificate of authority
68	68		for certain plan providers be obtained by certain
69	69		date; establishing application procedures; requiring
70	70		certain accompaniments with application; establishing
71	71		provisions for approval of application; establishing
72	72		expiration date of certifi cate of authority;
73	73		establishing provisions for renewal of certificate of
74	74		authority; requiring certain prepaid vision plan
75	75		organizations respond to Insurance Commissioner by
76	76		certain date; requiring certain plan organizations to
77	77		maintain certain tangible net equity; requiring plan
78	78		organizations with certain expenses to maintain
79	79		certain tangible net equity or deposit; establishing
80	80		provisions for exemption to certain deposit
81	81		requirements; requiri ng certain plan organizations to
82	82		maintain certain financial reserv e; establishing
83	83		provisions for membership coverage policies;
84	84		requiring approval by Commissioner of certain policy;
85	85		requiring certain report be submitted to Commissioner
86	86		by certain date in ce rtain manner; establishing
87	87		components of report; requiring certain tax be paid
88	88		to the State Treasurer; allowing for offset of
89	89		certain tax with state corporate income tax;
90	90		providing for suspension or revocation of certain
91	91		certificate of authority subject to certain
92	92		conditions; requiring certain restrictions be imposed
93	93		on certain suspensions and revocations; providing for
94	94		certain fine to be imposed; providing for hearing for
95	95		certain plan organizations; establishing requirements
96	96		for certain advertising and sal es material; requiring
97	97		submission of material to Commissioner; establishing
98	98		approval requirements; prohibiting disapproved
99	99		materials from certain use; providing certain
100	100
101	101
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151	151		exceptions; requiring certain statutory obligations
152	152		apply to plan organizations; allow ing Commissioner to
153	153		conduct certain examinations; directing promulg ation
154	154		of rules; providing for codification; and providing
155	155		an effective date.
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161	161		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
162	162		SECTION 1. NEW LAW A ne w section of law to be codified
163	163		in the Oklahoma Statutes as Secti on 6104 of Title 36, unless there
164	164		is created a duplication in numb ering, reads as follows:
165	165		This act shall be known and may be cited as the “Prepaid Vision
166	166		Plan Act”.
167	167		SECTION 2. NEW LAW A new section of law to be codified
168	168		in the Oklahoma Statutes as Section 6105 of Title 36, unless there
169	169		is created a duplication in numb ering, reads as follows:
170	170		As used in this act:
171	171		1. “Covered expense” means costs incurred by a provider who has
172	172		agreed in writing not to bill members, except for permissible
173	173		supplemental charges;
174	174		2. “Member” means an individual who is enrolled in an
175	175		individual or group prepaid vision plan as a principal subscriber
176	176		and any dependents entitled to vision care services under the plan
177	177		solely because of their statu s as a dependent of the principal
178	178		subscriber;
179	179
180	180
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230	230		3. “Membership coverage” means any certificate or contract
231	231		issued to a member specifying the vision coverage to which the
232	232		member is entitled;
233	233		4. “Net equity” means the excess of total assets over total
234	234		liabilities, excluding liabilities whi ch have been subordinated in a
235	235		manner acceptable to the Insurance Commissioner;
236	236		5. “Prepaid vision plan” means any contractual agreement
237	237		whereby any prepaid vision plan organization undertakes to provide
238	238		payment of vision services directly, to arrange for prepaid vision
239	239		services, or to pay or make reimbursement for any vision service not
240	240		provided for by other insura nce;
241	241		6. “Prepaid vision plan organization” means any person who, or
242	242		organization or entity that, undertakes to conduct one or more
243	243		prepaid vision plans providing only vision services ;
244	244		7. “Prepaid vision services” means services included in the
245	245		practice of optometry in all of its branches as defined pursuant to
246	246		Section 581 of Title 59 of the Oklahoma Statutes;
247	247		8. “Provider” means any person licens ed or otherwise authoriz ed
248	248		to furnish prepaid vision services in this state o ther than an
249	249		authorized insurer;
250	250		9. “Tangible net equity” means net equity reduced by the value
251	251		assigned to intangible assets including, but not limite d to,
252	252		goodwill, going concern value, organizational exp enses, start-up
253	253		costs, long-term prepayments of deferred c harges, nonreturnable
254	254
255	255
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305	305		deposits, and obligations of officers, directors, owners, or
306	306		affiliates, except short-term obligations of af filiates for goods or
307	307		services arising in the normal course of business that are payable
308	308		on the same term as equivalent transactions with nonaffilia tes and
309	309		that are not past due ; and
310	310		10. “Uncovered expense” means the cost of health care services
311	311		that are the obligation of a prepaid vision plan organization for
312	312		which:
313	313		a. a member may be liable in the e vent of the insolvenc y
314	314		of the organization, and
315	315		b. alternative arrangements acceptable to the
316	316		Commissioner have not been mad e to cover the costs.
317	317		SECTION 3. NEW LAW A new section of law to be codified
318	318		in the Oklahoma Statutes as Section 6106 of Title 36, unless there
319	319		is created a duplication in numb ering, reads as follows:
320	320		A. No person, organization, or entity, unless authorized
321	321		pursuant to an approved application under Section 5 of this act
322	322		shall establish or operate a prepaid vision plan organization in
323	323		this state or sell, offer to sell, solicit offers to purchase, or
324	324		receive advance or periodi c consideration in conjunction with a
325	325		prepaid vision plan without obtaining and maintaining a certificate
326	326		of authority.
327	327		B. On or before February 1, 2024, every prepaid vision plan
328	328		organization operating in this state shall submit an application for
329	329
330	330
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380	380		a certificate of authority to the Insurance Commissioner . Each
381	381		applicant may continue to operate as an organization until the
382	382		Commissioner acts upon the application.
383	383		SECTION 4. NEW LAW A new section of l aw to be codified
384	384		in the Oklahoma Statutes as Section 6107 of Title 36, unless there
385	385		is created a duplication in numb ering, reads as follows:
386	386		A. An application for a certificate of authority to operate as
387	387		a prepaid vision plan organization shall be filed with the Insurance
388	388		Commissioner in the form and manner prescribed by the Commissioner.
389	389		The application shall be verified by an officer or authorized
390	390		representative of the applicant and shall set forth or be
391	391		accompanied by:
392	392		1. A copy of any basic organizational document of the applicant
393	393		such as the articles of incorporation, arti cles of association,
394	394		partnership agreement, trust agreement, or other applicable
395	395		documents, with all amendments to the documents;
396	396		2. A copy of any bylaws, rules, regulations, or similar
397	397		documents regulating the conduct of the internal affairs of the
398	398		applicant;
399	399		3. A list of the names, addresses, and official positions of
400	400		the persons who are responsible for the conduct of the busines s
401	401		affairs of the applicant, in cluding all members of the board of
402	402		directors, board of truste es, executive committee, or other
403	403		governing board or committee, and the principal officers , in the
404	404
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455	455		case of a corporation, or the partners or members in the case of a
456	456		partnership or association ;
457	457		4. A copy of any contract made or to be made between any
458	458		providers of vision services or persons listed in parag raph 3 of
459	459		this subsection and the applicant;
460	460		5. A statement generally describing the prepaid vision plan
461	461		organization, the facilities, personnel of the organization, and all
462	462		prepaid vision plans offered b y the organization;
463	463		6. A copy of the form of indiv idual or group membership
464	464		coverage or a copy of the contract to be issued to t he members;
465	465		7. Financial stateme nts showing assets, liabiliti es, and
466	466		sources of financial support of the applicant. I f the financial
467	467		affairs of the applicant are audited by ind ependent certified public
468	468		accountants, a copy of the most recent regular certi fied financial
469	469		statement for the applicant shall satisfy the requirement of this
470	470		paragraph, unless the Commissioner determines that additional or
471	471		more recent financial informatio n is required;
472	472		8. A description of the proposed me thod of marketing the
473	473		prepaid vision plan, a financial prospectus which includes a three -
474	474		year projection of the initial operating results anti cipated, and a
475	475		statement as to the s ources of working capital available for the
476	476		operation of the prepaid vision plan a nd any other source of
477	477		funding;
478	478
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529	529		9. A power of attorne y, duly executed by the applicant if not
530	530		domiciled in this state , appointing the Commissione r as the true and
531	531		lawful representative for service of process for the applicant in
532	532		this state upon whom all lawful process in any legal action or
533	533		proceeding against the prepaid vision plan organization on a cause
534	534		of action arising in this state may be serv ed;
535	535		10. A fee of One Hundred Dollars ($100.00 ) for issuance of a
536	536		certificate of authority; and
537	537		11. Any other information as the Commissioner may require .
538	538		B. Within ten (10) days following any modification for
539	539		information previously furnished as required by subsection A of this
540	540		section, a prepaid vision pla n organization shall file a notice of
541	541		the modification with the Commissione r.
542	542		SECTION 5. NEW LAW A new section of law to be codified
543	543		in the Oklahoma Statutes as Section 6108 of Title 36, unless there
544	544		is created a duplicatio n in numbering, reads as follows:
545	545		A. Issuance of a certificate of a uthority for a prepaid vision
546	546		plan organization shall be granted by the Insurance Commissioner if
547	547		the Commissioner is satisfied that the following conditions are met:
548	548		1. The persons, organization, or entity responsible f or
549	549		conducting the business affairs of the prepaid vision plan
550	550		organization are competent, trustworthy, and are professionally
551	551		capable of providing or arranging for the pro vision of services
552	552		offered;
553	553
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604	604		2. The prepaid vision plan organization constitutes an
605	605		appropriate mechanism to achieve an effective prepaid vision plan ;
606	606		3. Each officer responsible for conducting the business affairs
607	607		of the prepaid vision plan organization has filed with the
608	608		Commissioner a fidelity bond in the amount of Fifty Thousand Doll ars
609	609		($50,000.00); provided, the bond is subject to the approval of the
610	610		Commissioner;
611	611		4. The financial struc ture of the prepaid vision plan
612	612		organization may reasonabl y be expected to meet obligations for
613	613		payment of services for members and prospective members. In making
614	614		this determination, the Commissioner may con sider:
615	615		a. the financial soundness of the arrangements made
616	616		pursuant to the provisions of the prepaid vision plan
617	617		for services and the schedule of charges used,
618	618		b. any agreement with an insurer, hospital, medical
619	619		service corporation, or any other organization for
620	620		ensuring the payment or prepaid vision services ,
621	621		c. provisions in the plan for automatic coverage of
622	622		vision service if the prepaid plan is discontinued,
623	623		and
624	624		d. the sufficiency of the agreement for prepaid vision
625	625		services with providers of vision services; and
626	626		5. The Commissioner has not made a determination that the
627	627		prepaid vision plan organization is not competent, trustworthy, or
628	628
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679	679		financially responsible, and the organization has not had any
680	680		insurance license denied for cause by any state.
681	681		B. 1. A certificate of autho rity shall expire at midnight on
682	682		June 30 following the date of issu ance or last renewal date. If th e
683	683		prepaid vision plan organization remains in compliance with the
684	684		provisions of this act and pays a renewal fee of One Hundred Dollars
685	685		($100.00), the certificate of authority may be renewed.
686	686		2. Renewal fees paid to the Commissioner pursuant to paragraph
687	687		1 of this subsection shall be deposit ed into the State Insurance
688	688		Commissioner Revolving Fund.
689	689		C. Every prepaid vision plan organiza tion, upon receipt of any
690	690		inquiry from the Insurance Commissioner, shall furnish the
691	691		Commissioner with an adequate response t o the inquiry within twenty
692	692		(20) days from the receipt of inquiry.
693	693		SECTION 6. NEW LAW A new section of law to be codified
694	694		in the Oklahoma Statutes as Section 6109 of Title 36, unless there
695	695		is created a duplication in num bering, reads as follows:
696	696		A. 1. Except as approved in accordance with subsection C of
697	697		this section, each prepaid vision plan organization shall at all
698	698		times have and maintain tangible net equity equal to the greater of:
699	699		a. Fifty Thousand Dollars ($50,000 .00), or
700	700		b. two percent (2%) of the organization’s annual gross
701	701		premium income, up to a maximum of the required
702	702
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718	718		15
719	719		16
720	720		17
721	721		18
722	722		19
723	723		20
724	724		21
725	725		22
726	726		23
727	727		24
728	728		1
729	729		2
730	730		3
731	731		4
732	732		5
733	733		6
734	734		7
735	735		8
736	736		9
737	737		10
738	738		11
739	739		12
740	740		13
741	741		14
742	742		15
743	743		16
744	744		17
745	745		18
746	746		19
747	747		20
748	748		21
749	749		22
750	750		23
751	751		24
752	752
753	753		capital and surplus of an accident and health
754	754		insurance policy.
755	755		2. A prepaid vision plan organization that has uncovered
756	756		expenses in excess of Fifty Thousand Dollars ($50,000.00), as
757	757		reported on the most re cent annual financial statement file d with
758	758		the Insurance Commissioner, shall maintain tangible net equity equal
759	759		to twenty-five percent (25%) of the uncovered expense in excess of
760	760		Fifty Thousand Dollars ($50,000.00) in addition to the tangible net
761	761		equity required by paragraph 1 of this subsection.
762	762		B. 1. Each prepaid vision plan organization shall deposit with
763	763		the Commissioner cash, securities, other measures deemed acceptable
764	764		by the Commissioner, or any combination thereof in an amount equal
765	765		to Twenty-Five Thousand Dollars ($25,000.00) plus tw enty-five
766	766		percent (25%) of the tangible net equity required in subsection A of
767	767		this section; provided, however, that the d eposit shall not be
768	768		required to exceed One Hundred Thousand Dollars ($100,000.00).
769	769		2. The deposit shall be an admitted asset of the prepaid vision
770	770		plan organization in the determination of tangible net equity.
771	771		3. All income from deposits shall be an asset of the prepaid
772	772		vision organization. A prepaid vision plan organization may
773	773		withdraw a deposit or any part thereof after making a substitute
774	774		deposit of an equal amount and value. Any securities shall be
775	775		approved by the Commissioner before bei ng substituted.
776	776
777	777
778	778		Req. No. 392 Page 11 1
779	779		2
780	780		3
781	781		4
782	782		5
783	783		6
784	784		7
785	785		8
786	786		9
787	787		10
788	788		11
789	789		12
790	790		13
791	791		14
792	792		15
793	793		16
794	794		17
795	795		18
796	796		19
797	797		20
798	798		21
799	799		22
800	800		23
801	801		24
802	802		1
803	803		2
804	804		3
805	805		4
806	806		5
807	807		6
808	808		7
809	809		8
810	810		9
811	811		10
812	812		11
813	813		12
814	814		13
815	815		14
816	816		15
817	817		16
818	818		17
819	819		18
820	820		19
821	821		20
822	822		21
823	823		22
824	824		23
825	825		24
826	826
827	827		4. The deposit shall be used to protect the interests of the
828	828		prepaid vision plan organizat ion’s members and to assure
829	829		continuation of vision plan services to members of a prepaid vision
830	830		plan organization that is in rehabilitation or conservation. If a
831	831		prepaid vision plan organi zation is placed in receivership or
832	832		liquidation, the deposit shall be an asset subject to the provisions
833	833		of the Rehabilitation and Liquidation Act pursuant to Section 1901
834	834		et seq. of Title 36 of the Oklahoma Statutes.
835	835		5. The Commissioner may reduce or eliminate the deposit
836	836		requirement if the prepaid vision pla n organization has made an
837	837		acceptable deposit with the state or jurisdiction of domicile for
838	838		the protection of members, wherever located, and delivers to the
839	839		Commissioner a certificate to that effect, duly authenticated by the
840	840		appropriate state official holding the deposit.
841	841		C. Upon application by a prepaid vision plan organization, the
842	842		Commissioner may waive some or all of the requirements of subsection
843	843		A of this section for any period of time the Comm issioner deems
844	844		proper upon a filing that either:
845	845		1. The prepaid vision plan organization has a net equity of at
846	846		least Five Million Dollars ($5,000 ,000.00); or
847	847		2. An entity having a net equity of at least Five Million
848	848		Dollars ($5,000,000.00) furnishes to the Commissioner a written
849	849		commitment, acceptable to the Commissioner, to provide for the
850	850
851	851
852	852		Req. No. 392 Page 12 1
853	853		2
854	854		3
855	855		4
856	856		5
857	857		6
858	858		7
859	859		8
860	860		9
861	861		10
862	862		11
863	863		12
864	864		13
865	865		14
866	866		15
867	867		16
868	868		17
869	869		18
870	870		19
871	871		20
872	872		21
873	873		22
874	874		23
875	875		24
876	876		1
877	877		2
878	878		3
879	879		4
880	880		5
881	881		6
882	882		7
883	883		8
884	884		9
885	885		10
886	886		11
887	887		12
888	888		13
889	889		14
890	890		15
891	891		16
892	892		17
893	893		18
894	894		19
895	895		20
896	896		21
897	897		22
898	898		23
899	899		24
900	900
901	901		uncovered expenses of the prepaid limited health service
902	902		organization.
903	903		SECTION 7. NEW LAW A new section of l aw to be codified
904	904		in the Oklahoma Statutes as Section 6110 of Title 36, unless there
905	905		is created a duplication in numbering, reads as follows:
906	906		A. A prepaid vision plan organization shall maintain for the
907	907		protection of members a financial reserve consisting of at lea st two
908	908		percent (2%) of all prepaid charges collected from members of the
909	909		prepaid vision plan until the reserve totals Five Hundred Thousand
910	910		Dollars ($500,000.00). This reserve shall be in additio n to the
911	911		deposit prescribed by Section 6 of this act.
912	912		B. The reserve prescribed by this se ction shall not apply with
913	913		respect to a prepaid vision plan organization which is funded by the
914	914		federal government, state, or any p olitical subdivision thereof .
915	915		SECTION 8. NEW LAW A new section of law to be codified
916	916		in the Oklahoma Statute s as Section 6111 of Title 36, unless there
917	917		is created a duplication in numb ering, reads as follows:
918	918		A. Every member of a prepaid vision plan shall be issue d a
919	919		membership coverage pol icy by the prepaid vision plan organ ization.
920	920		No policy for membership c overage or amendment to the policy shall
921	921		be issued or delivered to any person in this state until a copy of
922	922		the policy for membership coverage or amendment to the policy has
923	923		been filed with and approved by the Insurance Commissioner.
924	924
925	925
926	926		Req. No. 392 Page 13 1
927	927		2
928	928		3
929	929		4
930	930		5
931	931		6
932	932		7
933	933		8
934	934		9
935	935		10
936	936		11
937	937		12
938	938		13
939	939		14
940	940		15
941	941		16
942	942		17
943	943		18
944	944		19
945	945		20
946	946		21
947	947		22
948	948		23
949	949		24
950	950		1
951	951		2
952	952		3
953	953		4
954	954		5
955	955		6
956	956		7
957	957		8
958	958		9
959	959		10
960	960		11
961	961		12
962	962		13
963	963		14
964	964		15
965	965		16
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967	967		18
968	968		19
969	969		20
970	970		21
971	971		22
972	972		23
973	973		24
974	974
975	975		B. A policy for membership coverage shall contain a statement
976	976		of:
977	977		1. The prepaid vision services or other benefits to which the
978	978		member is entitled un der the prepaid vision plan ;
979	979		2. Any limitations of the services or benefits to which the
980	980		member is entitled under the prepaid vision plan;
981	981		3. Information as to how services may be obtained; and
982	982		4. The obligation of the member for charges for the prepaid
983	983		vision plan.
984	984		C. Any member of a prepaid vision plan shall be free to select
985	985		any licensed vision practitioner to provide vision services and
986	986		prepayment or reimbursement determinations shall be made wi thout
987	987		regard to whether the practitioner is a participating or
988	988		nonparticipating member of the plan. The provisions of this
989	989		subsection shall be printed on t he policy for membership c overage.
990	990		D. Membership coverage shall contain no provisions or
991	991		statements which are unjust, unfair, untrue, inequitable,
992	992		misleading, deceptive, or which encourage misrepresentati on as
993	993		determined by the Commissioner.
994	994		E. The Commissioner shall approve any policy of membership
995	995		coverage if the requirements of this section are complied with and
996	996		the prepaid vision plan, in the judgment of the Commissioner, is
997	997		able to meet its financial obligations for the membership coverage.
998	998		It shall be unlawful for a prepaid vision plan organization to issue
999	999
1000	1000
1001	1001		Req. No. 392 Page 14 1
1002	1002		2
1003	1003		3
1004	1004		4
1005	1005		5
1006	1006		6
1007	1007		7
1008	1008		8
1009	1009		9
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1012	1012		12
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1014	1014		14
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1016	1016		16
1017	1017		17
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1020	1020		20
1021	1021		21
1022	1022		22
1023	1023		23
1024	1024		24
1025	1025		1
1026	1026		2
1027	1027		3
1028	1028		4
1029	1029		5
1030	1030		6
1031	1031		7
1032	1032		8
1033	1033		9
1034	1034		10
1035	1035		11
1036	1036		12
1037	1037		13
1038	1038		14
1039	1039		15
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1041	1041		17
1042	1042		18
1043	1043		19
1044	1044		20
1045	1045		21
1046	1046		22
1047	1047		23
1048	1048		24
1049	1049
1050	1050		a policy until it is approved by the Commissioner. If the
1051	1051		Commissioner does not disapprove any policy within thirty (30) days
1052	1052		after filing, the policy shall be deemed approved. If the
1053	1053		Commissioner disapprove s a policy of membership coverage, the
1054	1054		Commissioner shall notify the prepaid vision plan organization,
1055	1055		specifying the reasons for disapproval. The Commissioner shall
1056	1056		grant a hearing on any disapproval within thirty (30) days after a
1057	1057		request in writing for a hearing i s received by the Commissioner
1058	1058		from the prepaid vision plan organization.
1059	1059		SECTION 9. NEW LAW A new section of law to be codified
1060	1060		in the Oklahoma Statutes as Section 6112 of Title 36, unless there
1061	1061		is created a duplication in numbering, reads as follows:
1062	1062		A. On or before March 1 of each calendar year, every prepaid
1063	1063		vision plan organization offering coverage in this state shall file
1064	1064		with the Insurance Commissioner a report of the business act ivities
1065	1065		of the organization for the preceding calendar year. The report
1066	1066		shall be signed by at least two principal officers of the
1067	1067		corporation and the signatures shall be notarized .
1068	1068		B. A report submitted un der this section shall be in the form
1069	1069		and manner prescribed by the Commissioner and shall include:
1070	1070		1. A financial statement of the organization, including a copy
1071	1071		of the balance sheet, receipts, and disbursements of the
1072	1072		organization for the subject year certified by an indepen dent
1073	1073		certified public accountant. The Commissioner may accept a full
1074	1074
1075	1075
1076	1076		Req. No. 392 Page 15 1
1077	1077		2
1078	1078		3
1079	1079		4
1080	1080		5
1081	1081		6
1082	1082		7
1083	1083		8
1084	1084		9
1085	1085		10
1086	1086		11
1087	1087		12
1088	1088		13
1089	1089		14
1090	1090		15
1091	1091		16
1092	1092		17
1093	1093		18
1094	1094		19
1095	1095		20
1096	1096		21
1097	1097		22
1098	1098		23
1099	1099		24
1100	1100		1
1101	1101		2
1102	1102		3
1103	1103		4
1104	1104		5
1105	1105		6
1106	1106		7
1107	1107		8
1108	1108		9
1109	1109		10
1110	1110		11
1111	1111		12
1112	1112		13
1113	1113		14
1114	1114		15
1115	1115		16
1116	1116		17
1117	1117		18
1118	1118		19
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1120	1120		21
1121	1121		22
1122	1122		23
1123	1123		24
1124	1124
1125	1125		report of the most recent examination of a foreign prepaid vision
1126	1126		plan, certified to by the appropriate examining official of another
1127	1127		state;
1128	1128		2. Any material changes in the information required to be
1129	1129		provided pursuant to Section 4 of this act;
1130	1130		3. The number of persons who have become members during the
1131	1131		preceding year, the total number of members of the plan as of the
1132	1132		end of the year, and the number of memberships terminated during the
1133	1133		year;
1134	1134		4. The costs of all car e provided and the number of members who
1135	1135		received care pursuant to the provisions of the prepaid vision plan;
1136	1136		and
1137	1137		5. Any other information relating to the performance of the
1138	1138		prepaid vision plan organiza tion deemed necessary by the
1139	1139		Commissioner.
1140	1140		SECTION 10. NEW LAW A new section of law to be codified
1141	1141		in the Oklahoma Statutes as Section 6113 of Title 36, unless there
1142	1142		is created a duplication in numb ering, reads as follows:
1143	1143		A. At the time of filing the annual report prescribed by
1144	1144		Section 9 of this act, each prepaid vision plan sh all pay to the
1145	1145		State Treasurer through the Insurance Commissioner a tax for
1146	1146		transacting a prepaid vision plan . The obligation shall be two
1147	1147		percent (2%) of prepaid net charg es received from members in this
1148	1148		state for both domestic and foreign organiza tions.
1149	1149
1150	1150
1151	1151		Req. No. 392 Page 16 1
1152	1152		2
1153	1153		3
1154	1154		4
1155	1155		5
1156	1156		6
1157	1157		7
1158	1158		8
1159	1159		9
1160	1160		10
1161	1161		11
1162	1162		12
1163	1163		13
1164	1164		14
1165	1165		15
1166	1166		16
1167	1167		17
1168	1168		18
1169	1169		19
1170	1170		20
1171	1171		21
1172	1172		22
1173	1173		23
1174	1174		24
1175	1175		1
1176	1176		2
1177	1177		3
1178	1178		4
1179	1179		5
1180	1180		6
1181	1181		7
1182	1182		8
1183	1183		9
1184	1184		10
1185	1185		11
1186	1186		12
1187	1187		13
1188	1188		14
1189	1189		15
1190	1190		16
1191	1191		17
1192	1192		18
1193	1193		19
1194	1194		20
1195	1195		21
1196	1196		22
1197	1197		23
1198	1198		24
1199	1199
1200	1200		B. An organization may offset this tax in whole or in part by
1201	1201		payment of state corporate income tax as provided pursuant to
1202	1202		Section 2355 of Title 68 of the Oklahoma Statutes. However, an
1203	1203		organization is prohibited from carrying over to a succeeding year
1204	1204		any credit for paying corporate in come tax not used during a year.
1205	1205		SECTION 11. NEW LAW A new section of la w to be codified
1206	1206		in the Oklahoma Statutes as Section 6114 of Title 36, unless there
1207	1207		is created a duplication in numb ering, reads as follows:
1208	1208		A. The Insurance Commissioner may suspend or revoke any
1209	1209		certificate of authority issued pursuant to this act if the
1210	1210		Commissioner finds that the prepaid vision plan organization:
1211	1211		1. Is operating contrary to the basic organization al documents
1212	1212		of the organization or in a manner contrary to that described in or
1213	1213		reasonably inferred from any information submitted pursuant to
1214	1214		Section 4 of this act;
1215	1215		2. Issues membership coverage which does not comply with the
1216	1216		requirements of Section 8 of this act;
1217	1217		3. Does not provide or arrange f or basic vision services
1218	1218		appropriate to a prepaid vision plan;
1219	1219		4. Can no longer be exp ected to meet the obligations to members
1220	1220		or prospective members of the prepaid vision plan;
1221	1221		5. Uses fraudulent, coercive, or dishonest practices, or
1222	1222		demonstrates incompetence, untr ustworthiness, or financial
1223	1223		irresponsibility in the conduct of business;
1224	1224
1225	1225
1226	1226		Req. No. 392 Page 17 1
1227	1227		2
1228	1228		3
1229	1229		4
1230	1230		5
1231	1231		6
1232	1232		7
1233	1233		8
1234	1234		9
1235	1235		10
1236	1236		11
1237	1237		12
1238	1238		13
1239	1239		14
1240	1240		15
1241	1241		16
1242	1242		17
1243	1243		18
1244	1244		19
1245	1245		20
1246	1246		21
1247	1247		22
1248	1248		23
1249	1249		24
1250	1250		1
1251	1251		2
1252	1252		3
1253	1253		4
1254	1254		5
1255	1255		6
1256	1256		7
1257	1257		8
1258	1258		9
1259	1259		10
1260	1260		11
1261	1261		12
1262	1262		13
1263	1263		14
1264	1264		15
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1266	1266		17
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1270	1270		21
1271	1271		22
1272	1272		23
1273	1273		24
1274	1274
1275	1275		6. Fails to deal equitably with any providers or other persons
1276	1276		or facilities which offer services covered within a contract or
1277	1277		policy issued pursuant to this act; or
1278	1278		7. Fails to substantially comply with the insurance laws of
1279	1279		this state or violates any regulation, rule, subp oena, or order of
1280	1280		the Commissioner.
1281	1281		B. When the certificate of authority of a prepaid vision plan
1282	1282		organization is suspended, the organization shall not accept, during
1283	1283		the period of such suspension, any additional members except newly
1284	1284		acquired dependents of existing members and shall not engage in any
1285	1285		advertising or solicit ation.
1286	1286		C. When the certificate of au thority of a prepaid vision plan
1287	1287		organization is revoked, the organization shall terminate op eration
1288	1288		of the organization in this state immediately and shall conduct no
1289	1289		further business except as may be ess ential to the orderly
1290	1290		conclusion of the business affairs of th e organization. The
1291	1291		Commissioner, by written order, may permit further operation of the
1292	1292		organization as the Commissioner finds to be in the best interest of
1293	1293		members of the organization.
1294	1294		D. In addition to or in lieu of an y applicable suspension or
1295	1295		revocation of a certificate of authority, the Commissioner may
1296	1296		invoke a fine not to exceed One Thousand Dollars ( $1,000.00) for
1297	1297		each violation. The payment of the fine may be enforced in the same
1298	1298		manner as civil judgments may be enforced.
1299	1299
1300	1300
1301	1301		Req. No. 392 Page 18 1
1302	1302		2
1303	1303		3
1304	1304		4
1305	1305		5
1306	1306		6
1307	1307		7
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1309	1309		9
1310	1310		10
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1325	1325		1
1326	1326		2
1327	1327		3
1328	1328		4
1329	1329		5
1330	1330		6
1331	1331		7
1332	1332		8
1333	1333		9
1334	1334		10
1335	1335		11
1336	1336		12
1337	1337		13
1338	1338		14
1339	1339		15
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1341	1341		17
1342	1342		18
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1345	1345		21
1346	1346		22
1347	1347		23
1348	1348		24
1349	1349
1350	1350		E. A prepaid vision p lan organization which has had its
1351	1351		certificate of authority denied, suspended, or revoked, or has
1352	1352		suffered an adverse determination by the Commissioner shall be
1353	1353		entitled to a hearing pursuant to the provisions of the
1354	1354		Administrative Procedures Act under Section 250 et seq. of Title 75
1355	1355		of the Oklahoma Statutes.
1356	1356		SECTION 12. NEW LAW A new section of law to be codified
1357	1357		in the Oklahoma Statutes as Section 6115 of Title 36, unless there
1358	1358		is created a duplication in numbering, reads as foll ows:
1359	1359		A. No advertising or sales material relating to a prepaid
1360	1360		vision plan organization shall be issued or delivered to any person
1361	1361		in this state until a copy of the material has been filed with and
1362	1362		approved by the Insu rance Commissioner. Within thirty (3 0) days
1363	1363		after the submission of advertising or material under this
1364	1364		subsection, the Commissioner shall issue a determination approving
1365	1365		or disapproving of the material. Disapproval of the advertising or
1366	1366		material shall be on the basis that, in whole or in part, the
1367	1367		material is false, deceptive, or m isleading. Written notification
1368	1368		shall be issued to an organiza tion that has materials disapprove d
1369	1369		pursuant to this subsection. Thereafter, the disapproved
1370	1370		advertising material shall not be used. Violation of the provisions
1371	1371		of this subsection sh all entitle the Commis sioner in his or her
1372	1372		discretion and without additional ca use to withdraw approval of any
1373	1373
1374	1374
1375	1375		Req. No. 392 Page 19 1
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1424	1424		membership coverage with respect to which adver tising or sales
1425	1425		material is used.
1426	1426		B. Offers to sell prepai d vision insurance by advertising or
1427	1427		publication of material by a prepaid vision plan or ganization or
1428	1428		anyone acting on behalf of the o rganization to inform members or
1429	1429		prospective members of the plan as to the coverage offered by the
1430	1430		plan and the operation of the organization shall not be a violatio n
1431	1431		of any provisions of law relating to solicitation of customers or
1432	1432		advertising by prepaid vision plan providers if the advertising or
1433	1433		sales material:
1434	1434		1. Is approved prior to use by the Commissioner upon
1435	1435		determination by the Commissioner that the material is not
1436	1436		inaccurate, false, deceptive, or misleading;
1437	1437		2. Does not identify the providers of vision services nor
1438	1438		describe their professional qualifications, except upon request of
1439	1439		the member or prospective member;
1440	1440		3. Does not describe the professional experience or attainments
1441	1441		of providers of vision services individuall y or as a group, or
1442	1442		contain language that states, evaluates, or lauds the professional
1443	1443		competence, skills, or reputations of the providers; and
1444	1444		4. Shall not cause any providers of vision services to violate
1445	1445		any professional ethics or laws that prohibit the solicitation of
1446	1446		patients.
1447	1447
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1449	1449		Req. No. 392 Page 20 1
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1497	1497
1498	1498		SECTION 13. NEW LAW A new section of law to be codified
1499	1499		in the Oklahoma Statutes as Section 6116 of Title 36, unless there
1500	1500		is created a duplication in numb ering, reads as follows:
1501	1501		A. Article 12 of Title 36 of the Oklahoma Statu tes relating to
1502	1502		unfair trade practices and f rauds shall apply to prepaid vision p lan
1503	1503		organizations, except to the extent the Insurance Commissioner may
1504	1504		determine that particular provisio ns of the article shall not apply
1505	1505		to prepaid vision pl an organizations.
1506	1506		B. The Commissioner may conduct an examination of the business
1507	1507		affairs of any prepaid vision plan organization as often as the
1508	1508		Commissioner deems necessary for the pro tection of the interests of
1509	1509		the people of this state.
1510	1510		C. Any rehabilitation, liquidation, or co nservation of a
1511	1511		prepaid vision plan organization shall be conducted pursuant to the
1512	1512		provisions for the rehabilitation, liquid ation, or conservation of
1513	1513		an insurer provided for by Articles 18 and 19 of Title 36 of the
1514	1514		Oklahoma Statutes.
1515	1515		D. The Commissioner shall promulgate any rules nece ssary to
1516	1516		effectuate the provisions of the Prepaid Vision Plan Act .
1517	1517		SECTION 14. This act shall become effective November 1, 2023.
1518	1518
1519	1519		59-1-392 RD 1/17/2023 5:34:05 PM