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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 435 By: Montgomery
AS INTRODUCED
An Act relating to the Service Warranty A ct; amending
15 O.S. 2021, Section 141.14, which relates to
penalties, reports, and administ rative fees;
modifying administrative fee amount; conforming
language; amending 36 O.S. 2021, Section 307.3, which
relates to the State Insurance Commissioner Re volving
Fund; exempting certain fee from provisions of State
Insurance Commissioner Rev olving Fund; and providing
an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 15 O.S. 2021, Se ction 141.14, is
amended to read as follows:
Section 141.14. A. In addition to the li cense fees provided in
the Service Warranty Act for service warranty associations each
service warranty association and insurer shall annually, on or
before the first day of May, file with the Insurance Co mmissioner
its annual financial statement showing a ll gross written provid er
fees or assessments received by it in connection with the issuance
of service warranties in this state during the preceding calendar
year and other relevant financial information as deemed necessary by
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the Commissioner. The finan cial statements require d by this
subsection must be:
1. Audited and prepared in accordance with statutory accounting
principles if the applicant complies with the requi rements of
subsection A of Section 1 41.6 of this title; or
2. Verified under oath of a t least two of its prin cipal
officers and prepared in accordance with generally accepted
accounting principles if the applicant utilizes an insurance policy
which satisfies the requirements of subsection B of Section 141.6 of
this title.
B. The Commissioner may levy a fine of u p to One Hundred
Dollars ($100.00) a day for each day an association neglects to file
its financial statement in the form and within the time prov ided by
the Service Warranty Act.
C. In addition to the annual financial statements re quired to
be filed by subsection A of this section, the Commissioner may
require of licensees, under oath and in the form prescribed by it,
quarterly statements or speci al reports which the Commissioner de ems
necessary for the proper supervision of license es under the Service
Warranty Act.
D. Provider fees and assessments received by associations and
insurers for service warranties shall not be subject to the premium
tax provided in Section 624 of Title 36 of the Oklahoma Statutes,
but shall be subject to an administrative fee o f equal to two
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percent (2%) of the gross provider fee received on the sale of all
service warranties issued in this state during the preceding
calendar quarter. The fees shall be pa id quarterly to the Insurance
Commissioner. Howeve r, licensed association s, licensed insurers and
entities with applications for licensure as a service warranty
association pending with the Department that have contract ual
liability insurance in place as of March 31, 2009, from an insurer
which satisfies the requirements of sub sections B and C of Section
141.6 of this title and which covers one hundred percent (100%) of
the claims exposure of the association or insurer o n all contracts
written may elect to shall pay an annual administrative fee of Three
Thousand Dollars ($3,000. 00) in lieu of the two-percent
administrative fee Four Thousand Two Hundred Dollars ($4,200.00).
The administrative fee set forth in this section shall not be
subject to the provisi ons of Section 307.3 of Title 36 of the
Oklahoma Statutes.
SECTION 2. AMENDATORY 36 O.S. 2021, Section 307.3, is
amended to read as follows:
Section 307.3. A. Effective July 1, 2009, there is hereby
created in the State Treasury a revolving fund for the Insurance
Commissioner called the State Insurance Commissioner Revolving Fund.
The revolving fund shall be used to fund the operations of the
Office of the Insurance Commissioner.
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1. Notwithstanding any other law to the contrary , the revolving
fund shall consist of and consolida te all funds that are or have
been paid or collected by the Insurance Comm issioner pursuant to the
laws of this state and the rules of the Insurance Department except
that the revolving fund shall not incl ude:
a. premium taxes,
b. monies transferred to the Attorney General’s Insurance
Fraud Unit Revolving Fund pursuant to Sectio n 362 of
this title,
c. funds paid to and collected pursuant to the Oklahoma
Certified Real Estate Appraisers Act, Sections 858 -700
through 858-732 of Title 59 of the Oklahoma Statut es,
d. health carrier access payments paid to and collected
by the Insurance Commissioner and deposited into the
Health Carrier Access Payment Revolving Fund,
e. recoveries obtained as a result of insuranc e-related
crimes, and other fines, late fees, and p enalties
assessed and collected, and
f. monies collected for or received from the Workers’
Compensation Commission , and
g. administrative fees paid pursuant to subsection D of
Section 141.14 of Title 15 of the Oklahoma Statutes.
2. The revolving fund shal l be a continuing fund, not subject
to fiscal year limitations. Expenditures from the revolving fund
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shall be made pursuant to the laws of this state and the statutes
relating to the Insurance Department. Warrants for expenditures
from the revolving fund shall be drawn by the State Treasurer, based
on claims signed by an authorized employee or employees of the
Insurance Department and filed with the Director of the Off ice of
Management and Enterprise Services.
B. All funds collected by the Insurance Comm issioner shall be
paid into the State Treasury weekly.
C. After the effective date of this act, the State Treasury is
authorized and directed to deduct from the funds paid or collected
by the Insurance Commissioner a sum equal to seventy -six and one-
half percent (76.5%) of the payment and place the same to the credit
of the General Revenue Fund of the state. The State Treasurer shall
place to the credit of the State I nsurance Commissioner Revolving
Fund the remainder of the funds so paid and collected by the
Insurance Commissioner.
SECTION 3. This act shall become effective January 1, 2024.
59-1-628 RD 1/17/2023 9:26:54 AM