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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 1085 By: Tedford
AS INTRODUCED
An Act relating to contracts; amending 15 O.S. 2021,
Section 141.14, as amended by Section 8, Chapter 225,
O.S.L. 2024 (15 O.S. Supp. 20 24, Section 141.14),
which relates to the Service Warranty Act; modifying
administrative fee amount; providing exclusion of
certain fee; conforming language; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 15 O.S. 2021, Section 141.14, as
amended by Section 8, Chapter 225, O.S.L. 2024 (15 O.S. Supp. 2024,
Section 141.14), is amended to read as follows:
Section 141.14. A. In addition to the license fees provi ded 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 Commissioner
its annual financial statement as of a date not earlier than three
hundred sixty-five (365) days prior to the date submitted showing
all gross written provider fees or assessments received by it in
connection with the issuance of service warranties in this state
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during the preceding calendar year and other rele vant financial
information as deemed necessary by the Commissioner. The financial
statements required by this subsection must be:
1. Audited and prepared in accordance with statutory accounting
principles if the applicant complies with the requirements o f
subsection A of Section 141.6 of this title; or
2. Verified under oath of a t least two of its principal
officers and prepared in accordance with generally accepted
accounting principles if the applicant utilizes an insurance policy
which satisfies the r equirements of subsection B of Section 141.6 of
this title.
B. The Commissioner may levy a fine of up 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 provided 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 the
Commissioner, quarterly statements or special reports which the
Commissioner deems necessary for the proper supervision of licensees
under the Service Warranty Act.
D. Provider fees and assessments received by associations and
insurers for service warranties shall not be subject to the premiu m
tax provided in Section 624 of Title 36 of the Oklahoma Statutes,
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but shall be subject to an administrative fee of equal to two
percent (2%) of the gross provider fee received on the sale of all
service warranties issued in this state during the precedin g
calendar quarter. The fees shall be paid quarterly to the Insurance
Commissioner. However, licensed associations, licensed insurers and
entities with applications for licensure as a service warranty
association pending with the Insurance Department tha t have
contractual liability insurance in place as of March 31, 2009, from
an insurer which satisfies the requirements of subsections B and C
of Section 141.6 of this title and which covers one hundred percent
(100%) of the claims exposure of the associati on or insurer on 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 Three Thousand Seven Hundred Dollars ( $3,700.00).
The administrative fee set for th in this section shall not be
subject to subsection C of Section 307.3 of Ti tle 36 of the Oklahoma
Statutes.
SECTION 2. This act shall become effective January 1, 2026.
60-1-11439 MJ 12/20/24