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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
SENATE BILL 1556 By: Garvin
AS INTRODUCED
An Act relating to homeowner’s insurance; amending 36
O.S. 2021, Section 3639.1, which relates to
termination or premium increas e of a homeowner’s
policy; prohibiting cancellation, refusal to renew,
or increases in premium due to certain causes;
updating statutory language; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 36 O.S. 2021, Section 3639.1, is
amended to read as follows:
Section 3639.1. A. No insurer shall cancel, refuse to renew ,
or increase the premium of a homeowner’s insurance policy or any
other personal residential insurance cov erage, which has been in
effect more than forty-five (45) days, solely because the insured
filed a first claim against the policy, has filed a claim arising
from a weather-related catastrophe, or a major natural disaster as
declared by the Governor , or has a history of claims a rising from
such causes. The provisions of this section shall not be construed
to prevent the cancellation, nonrenewal , or increase in premium of a
homeowner’s insurance policy f or the following reason s:
1. Nonpayment of premium;
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2. Discovery of fraud or material misrepresentation in the
procurement of the insurance or with respect to any claims su bmitted
thereunder;
3. Discovery of willful or reckless acts or omissions on t he
part of the named in sured which increase any hazard insured against;
4. A change in the risk which substantially increases any
hazard insured against after insurance coverage has been issued or
renewed;
5. Violation of any local fire, health, safety, building, or
construction regulation or ordinance with respect to any insured
property or the occupancy thereof which substantially increases any
hazard insured against;
6. A determination by the Ins urance Commissioner that the
continuation of the poli cy would place the insu rer in violation of
the insurance laws of this state; or
7. Conviction of the named insured of a crime having as one of
its necessary elements an act increasing any hazard insured against.
B. An insurer shall give to the named insured at the mailing
address shown on a homeowner’s policy, a written renewal notice that
shall include the new premium, new deductible, new limits or
coverage at least thirty (30) days prior to the expiration date of
the policy. If the insurer fails to provi de such notice, the
premium, deductible, limits and coverage provided to the named
insurer prior to the change shall remain in effect until notice is
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given or until the effective date of replacement covera ge obtained
by the named insured, whichever occurs first. If notice is gi ven by
mail, the notice shall be deemed to have been given on the day the
notice is mailed. If the insured elects not to renew, any earned
premium for the period of extension of the terminated policy shall
be calculated pro rata at the lower of the curren t or previous
year’s rate. If the insured accepts the rene wal, the premium
increase, if any, and other changes shall be effective the day
following the prior policy’s expiration or anniversary date.
C. In the event an insured canc els a homeowner’s insurance
policy or any other per sonal residential insurance cove rage, written
notice shall be provided by the insured to the insurer that p rovided
the coverage being canceled. The notice of cancellation shall
provide the date of the can cellation of the policy and the insurer
shall reimburse the insured for any premium s paid for coverage
beyond the date of cancellation of t he policy.
D. An insurer canceling a policy under subsection C of thi s
section shall not be liable for claim s arising after the date of
cancellation.
SECTION 2. This act shall become effective November 1, 2024.
59-2-2333 RD 1/4/2024 11:32:02 AM