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An Act
ENROLLED HOUSE
BILL NO. 3796 By: Sneed of the House
and
Coleman and Murdock of the
Senate
An Act relating to insurance; amending Section 8,
Chapter 345, O.S.L. 2024 (36 O.S. Supp. 2025, Section
323), which relates to the enforcement power and
authority of the Insurance Commissioner; establishing
that bulletins published by previous Insurance
Commissioners shall expire following inauguration of
next Insurance Commissioner; allowing Commissioner to
continue bulletin; clarifying Commissioner has the
authority to issue, amend, or terminate a bulletin at
any time; amending Section 2, Chapter 293, O.S.L.
2024 (36 O.S. Supp. 2025, Section 972), which relates
to the Strengthen Oklahoma Homes Program; expanding
length of program indefinitely; amending 36 O.S.
2021, Section 1633, which relates to the acquisition
of control of or merger with domestic insurers;
requiring individuals filing statement with the
Commissioner to include personal financial statements
reviewed by an independent public accountant;
amending 36 O.S. 2021, Section 4423, which relates to
the application of the Long-Term Care Insurance Act;
prohibiting persons from selling, soliciting, or
negotiating long-term care insurance without proper
license; repealing 36 O.S. 2021, Section 1416, which
relates to the state innovation waiver; repealing 36
O.S. 2021, Section 1416; and providing an effective
date.
SUBJECT: Insurance
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
ENR. H. B. NO. 3796 Page 2
SECTION 1. AMENDATORY Section 8, Chapter 345, O.S.L.
2024 (36 O.S. Supp. 2025, Section 323), is amended to read as
follows:
Section 323. A. In addition to any powers herein before
expressly enumerated in this law, the Insurance Commissioner shall
have full power and authority to enforce by regulations, orders,
bulletins or otherwise all and singular, the provisions of this law,
and the full intent thereof. In particular the Commissioner shall
have the authority and power:
1. To examine all records of persons or organizations falling
under the jurisdiction of the Commissioner and to require the same
to furnish under oath such information as the Commissioner may deem
necessary for the administration of this law. The expense of such
examination shall be paid by the insurer or advisory organization
examined. In lieu of such examination, the Commissioner may, in the
discretion of the Commissioner, accept a report of examination made
by any other insurance supervisory authority;
2. To make and enforce such reasonable bulletins, orders, rules
and regulations as may be necessary in making this law effective,
but such bulletins, orders, rules and regulations shall not be
contrary to or inconsistent with the provisions of this law; and
3. To issue an order in accordance with Article II of the
Administrative Procedures Act to all parties in interest requiring
any person or organization falling under the jurisdiction of the
Commissioner to cease and desist from any unfair or unreasonable
practice.
B. Bulletins published by previous Insurance Commissioners
shall terminate ninety (90) calendar days following the inauguration
of the next Insurance Commissioner unless continued by an order
issued by the new Insurance Commissioner. Nothing in this
subsection shall restrict the authority of the Insurance
Commissioner to issue, amend, or terminate a bulletin at any time.
SECTION 2. AMENDATORY Section 2, Chapter 293, O.S.L.
2024 (36 O.S. Supp. 2025, Section 972), is amended to read as
follows:
ENR. H. B. NO. 3796 Page 3
Section 972. A. There is hereby established within the
Department of Insurance the Strengthen Oklahoma Homes (SOH) Program,
to continue until November 1, 2027.
B. This act does not create an entitlement for property owners
or obligate the state in any way to fund the inspection,
construction, or retrofitting of residential property in this state.
Implementation of the SOH Program is subject to the receipt of
federal grants or funds or from other sources of grants or funds.
The Department shall use its best efforts to obtain grants or funds
from the federal government or other funding sources to supplement
the financial resources of the SOH Program that may be provided by
the state.
C. The SOH Program shall apply for financial grants to
construct or retrofit insurable property as defined in Section 963
of Title 36 of the Oklahoma Statutes this title to resist loss due
to a tornado or other catastrophic windstorm events or hail as
prescribed in subsection B of Section 962 of Title 36 of the
Oklahoma Statutes this title.
D. The SOH Program may also make grants or funding available to
nonprofit entities for projects to construct or retrofit insurable
properties to resist loss due to tornado or other catastrophic
windstorm events or hail if such grants or funding to nonprofit
entities are allowable under grant or funding rules, requirements,
guidelines, or criteria. However, a nonprofit entity shall agree to
administer the grants or funds as the SOH Program would be required
to administer grants or funds, and the entity shall provide
documentation to the Department in a timely manner as requested by
the Department.
E. All mitigation shall be based upon the securing of all
required local permits and applicable inspections in keeping with
local building codes and the Insurance Institute for Business and
Home Safety (IBHS) Fortified Homes Program. Mitigation projects are
subject to random reinspection of all projects.
F. The Insurance Commissioner may promulgate rules and
eligibility requirements necessary for the proper administration of
this act and pursuant to any instructions or requirements on grants
or funds received by the Department for the SOH Program.
SECTION 3. AMENDATORY 36 O.S. 2021, Section 1633, is
amended to read as follows:
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Section 1633. A. The requirements for filing shall be as
follows:
1. No person other than the issuer shall make a tender offer
for or a request or invitation for tenders of, or enter into any
agreement to exchange securities for, seek to acquire, or acquire,
in the open market or otherwise, any voting security of a domestic
insurer if, after the consummation thereof, such person would,
directly or indirectly, or by conversion or by exercise of any right
to acquire, be in control of the insurer, and no person shall enter
into an agreement to merge with or otherwise to acquire control of a
domestic insurer or any person controlling a domestic insurer
unless, at the time the offer, request or invitation is made or the
agreement is entered into, or prior to the acquisition of the
securities if no offer or agreement is involved, such person has
filed with the Commissioner and has sent to the insurer, and such
insurer has sent to its shareholders, a statement containing the
information required by this section and the offer, request,
invitation, agreement or acquisition has been approved by the
Commissioner in the manner prescribed in this act;
2. For purposes of this section, any controlling person of a
domestic insurer seeking to divest its controlling interest in the
domestic insurer, in any manner, shall file with the Commissioner,
with a copy to the insurer, confidential notice of its proposed
divestiture at least thirty (30) days prior to the cessation of
control. The Commissioner shall determine those instances in which
the party or parties seeking to divest or to acquire a controlling
interest in an insurer shall be required to file for and obtain
approval of the transaction. The information shall remain
confidential until the conclusion of the transaction unless the
Commissioner, in his or her discretion, determines that confidential
treatment will interfere with enforcement of this section. If the
statement referred to in paragraph 1 of this subsection is otherwise
filed, this paragraph shall not apply;
3. With respect to a transaction subject to this section, the
acquiring person must also file a preacquisition notification with
the Commissioner, which shall contain the information set forth in
paragraph 1 of subsection C of Section 4 1634 of this act title. A
failure to file the notification may be subject to the penalty
specified in paragraph 3 of subsection E of Section 4 1634 of this
act title; and
ENR. H. B. NO. 3796 Page 5
4. For purposes of this section, a "domestic insurer" shall
include any person controlling a domestic insurer unless the person,
as determined by the Commissioner, is either directly or through its
affiliates primarily engaged in business other than the business of
insurance. For the purposes of this section, "person" shall not
include any securities broker holding, in the usual and customary
broker's function, less than twenty percent (20%) of the voting
securities of an insurance company or of any person which controls
an insurance company.
B. The statement to be filed with the Commissioner shall be
made under oath or affirmation and shall contain the following:
1. The name and address of each person by whom or on whose
behalf the merger or other acquisition of control referred to in
subsection A of this section, hereinafter called the "acquiring
party", is to be affected:
a. if the person is an individual, his or her principal
occupation and all offices and positions held during
the past five (5) years, and any conviction of crimes
other than minor traffic violations during the past
ten (10) years, and
b. if the person is not an individual, a report of the
nature of its business operations during the past five
(5) years or for the lesser period as the person and
any predecessors shall have been in existence; an
informative description of the business intended to be
done by the person and the person's subsidiaries; and
a list of all individuals who are or who have been
selected to become directors or executive officers of
the person, or who perform or will perform functions
appropriate to such positions. The list shall include
for each individual the information required by
subparagraph a of this paragraph;
2. The source, nature and amount of the consideration used or
to be used in effecting the merger or other acquisition of control,
a description of any transaction where funds were or are to be
obtained for any such purpose, including any pledge of the insurer's
stock or the stock of any of its subsidiaries or controlling
affiliates, and the identity of persons furnishing consideration;
provided, however, that where a source of consideration is a loan
made in the lender's ordinary course of business, the identity of
ENR. H. B. NO. 3796 Page 6
the lender shall remain confidential, if the person filing the
statement so requests;
3. Fully
a. If the person is an individual, personal financial
statements reviewed by an independent public
accountant, as to the earnings and financial condition
of each acquiring party for the preceding five (5)
fiscal years of each acquiring party, and similar
unaudited information as of a date not earlier than
ninety (90) days prior to the filing of the statement,
or
b. If the person is not an individual, fully audited
financial information as to the earnings and financial
condition of each acquiring party for the preceding
five (5) fiscal years of each acquiring party, or for
such lesser period as the acquiring party and any
predecessors shall have been in existence, and similar
unaudited information as of a date not earlier than
ninety (90) days prior to the filing of the statement;
4. Any plans or proposals which each acquiring party may have
to liquidate the insurer, to sell its assets or merge or consolidate
it with any person, or to make any other material change in its
business or corporate structure or management;
5. The number of shares of any security referred to in
subsection A of this section which each acquiring party proposes to
acquire, and the terms of the offer, request, invitation, agreement
or acquisition referred to in subsection A of this section, and a
statement as to the method by which the fairness of the proposal was
arrived at;
6. The amount of each class of any security referred to in
subsection A of this section which is beneficially owned or
concerning which there is a right to acquire beneficial ownership by
each acquiring party;
7. A full description of any contracts, arrangements or
understandings with respect to any security referred to in
subsection A of this section in which any acquiring party is
involved, including but not limited to transfer of any of the
securities, joint ventures, loan or option arrangements, puts or
ENR. H. B. NO. 3796 Page 7
calls, guarantees of loans, guarantees against loss or guarantees of
profits, division of losses or profits, or the giving or withholding
of proxies. The description shall identify the persons with whom
the contracts, arrangements or understandings have been entered
into;
8. A description of the purchase of any security referred to in
subsection A of this section during the twelve (12) calendar months
preceding the filing of the statement by any acquiring party,
including the dates of purchase, names of the purchasers and
consideration paid or agreed to be paid;
9. A description of any recommendations to purchase any
security referred to in subsection A of this section made during the
twelve (12) calendar months preceding the filing of the statement by
any acquiring party, or by anyone based upon interviews or at the
suggestion of the acquiring party;
10. Copies of all tender offers for, requests, or invitations
for tenders of, exchange offers for, and agreements to acquire or
exchange any securities referred to in subsection A of this section,
and, if distributed, additional related soliciting material;
11. The term of any agreement, contract or understanding made
with or proposed to be made with any broker-dealer as to
solicitation of securities referred to in subsection A of this
section for tender, and the amount of any fees, commissions or other
compensation to be paid to broker-dealers with regard thereto;
12. An agreement by the person required to file the statement
referred to in subsection A of this section that it will provide the
annual report, specified in subsection L of Section 5 1635 of this
act title, for so long as control exists;
13. An acknowledgement by the person required to file the
statement referred to in subsection A of this section that the
person and all subsidiaries within its control in the insurance
holding company system will provide information to the Commissioner
upon request as necessary to evaluate enterprise risk to the
insurer; and
14. Such additional information as the Commissioner may by rule
or regulation prescribe as necessary or appropriate for the
protection of policyholders of the insurer or in the public
interest. If the person required to file the statement referred to
ENR. H. B. NO. 3796 Page 8
in subsection A of this section is a partnership, limited
partnership, syndicate or other group, the Commissioner may require
that the information required pursuant to paragraphs 1 through 14 of
this subsection shall be given with respect to each partner of the
partnership or limited partnership, each member of the syndicate or
group, and each person who controls the partner or member. If any
partner, member or person is a corporation or the person required to
file the statement referred to in subsection A of this section is a
corporation, the Commissioner may require that the information
required pursuant to paragraphs 1 through 14 of this subsection
shall be given with respect to the corporation, each officer and
director of the corporation, and each person who is directly or
indirectly the beneficial owner of more than ten percent (10%) of
the outstanding voting securities of the corporation. If any
material change occurs in the facts set forth in the statement filed
with the Commissioner and sent to the insurer pursuant to this
section, an amendment setting forth the change, together with copies
of all documents and other material relevant to the change, shall be
filed with the Commissioner and sent to the insurer within two (2)
business days after the person learns of the change.
C. If any offer, request, invitation, agreement or acquisition
referred to in subsection A of this section is proposed to be made
by means of a registration statement under the Securities Act of
1933, or in circumstances requiring the disclosure of similar
information under the Securities Exchange Act of 1934 or under a
state law requiring similar registration or disclosure, the person
required to file the statement referred to in subsection A of this
section may utilize the documents in furnishing the information
called for by that statement.
D. 1. The Commissioner shall approve any merger or other
acquisition of control referred to in subsection A of this section
unless, after a public hearing, the Commissioner finds that:
a. after the change of control, the domestic insurer
referred to in subsection A of this section would not
be able to satisfy the requirements for the issuance
of a license to write the line or lines of insurance
for which it is presently licensed,
b. the effect of the merger or other acquisition of
control would be substantially to lessen competition
in insurance in this state or tend to create a
ENR. H. B. NO. 3796 Page 9
monopoly. In applying the competitive standard in
this subparagraph:
(1) the informational requirements of paragraph 1 of
subsection C of Section 4 1634 of this act title
and the standards of paragraph 2 of subsection D
of Section 4 1634 of this act title shall apply,
(2) the merger or other acquisition shall not be
disapproved if the Commissioner finds that any of
the situations meeting the criteria provided by
paragraph 3 of subsection D of Section 4 1634 of
this act title exist, and
(3) the Commissioner may condition the approval of
the merger or other acquisition on the removal of
the basis of disapproval within a specified
period of time,
c. the financial condition of any acquiring party is such
as might jeopardize the financial stability of the
insurer, or prejudice the interest of its
policyholders,
d. the plans or proposals which the acquiring party has
to liquidate the insurer, sell its assets or
consolidate or merge it with any person, or to make
any other material change in its business or corporate
structure or management, are unfair and unreasonable
to policyholders of the insurer and not in the public
interest,
e. the competence, experience and integrity of those
persons who would control the operation of the insurer
are such that it would not be in the interest of
policyholders of the insurer and of the public to
permit the merger or other acquisition of control, or
f. the acquisition is likely to be hazardous or
prejudicial to the insurance-buying public.
2. The public hearing referred to in paragraph 1 of this
subsection shall be held within thirty (30) days after the statement
required by subsection A of this section is filed, and at least
twenty (20) days' notice shall be given by the Commissioner to the
ENR. H. B. NO. 3796 Page 10
person filing the statement. Not less than fourteen (14) days'
notice of the public hearing shall be given by the person filing the
statement to the insurer and to such other persons as may be
designated by the Commissioner. The insurer shall give notice to
its securityholders. The Commissioner shall make a determination
within the sixty-day period preceding the effective date of the
proposed transaction. At the hearing, the person filing the
statement, the insurer, any person to whom notice of hearing was
sent, and any other person whose interest may be affected shall have
the right to present evidence, examine and cross-examine witnesses,
and offer oral and written arguments and in connection therewith
shall be entitled to conduct discovery proceedings in the same
manner as is presently allowed by subsection A of Section 317 of
Title 36 of the Oklahoma Statutes this title. All discovery
proceedings shall be concluded not later than three (3) days prior
to the commencement of the public hearing.
3. If the proposed acquisition of control will require the
approval of more than one state's Commissioner, the public hearing
referred to in paragraph 2 of this subsection may be held on a
consolidated basis upon request of the person filing the statement
referred to in subsection A of this section. Such person shall file
the statement referred to in subsection A of this section with the
National Association of Insurance Commissioners (NAIC) within five
(5) days of making the request for a public hearing. The
Commissioner may opt out of a consolidated hearing, and shall
provide notice to the applicant of the opt-out within ten (10) days
of the receipt of the statement referred to in subsection A of this
section. A hearing conducted on a consolidated basis shall be
public and shall be held within the United States before the
Commissioners of the states in which the insurers are domiciled.
Such Commissioners shall hear and receive evidence. A Commissioner
may attend such hearing, in person or by telecommunication.
4. In connection with a change of control of a domestic
insurer, any determination by the Commissioner that the person
acquiring control of the insurer shall be required to maintain or
restore the capital of the insurer to the level required by the laws
and regulations of this state shall be made not later than sixty
(60) days after the date of notification of the change in control
submitted pursuant to paragraph 1 of subsection A of Section 3 of
this act.
5. The Commissioner may retain at the acquiring person's
expense any attorneys, actuaries, accountants and other experts not
ENR. H. B. NO. 3796 Page 11
otherwise a part of the Commissioner's staff as may be reasonably
necessary to assist the Commissioner in reviewing the proposed
acquisition of control.
E. The provisions of this section shall not apply to any offer,
request, invitation, agreement or acquisition which the Commissioner
by order shall exempt as not having been made or entered into for
the purpose and not having the effect of changing or influencing the
control of a domestic insurer, or as otherwise not comprehended
within the purposes of this section.
F. The following shall be violations of this section:
1. The failure to file any statement, amendment or other
material required to be filed pursuant to subsection A or B of this
section; or
2. The effectuation or any attempt to effectuate an acquisition
of control of, divestiture of, or merger with, a domestic insurer
unless the Commissioner has given approval.
G. The courts of this state are hereby vested with jurisdiction
over every person not resident, domiciled or authorized to do
business in this state who files a statement with the Commissioner
under this section, and overall actions involving such person
arising out of violations of this section, and each such person
shall be deemed to have performed acts equivalent to and
constituting an appointment by the person of the Commissioner to be
his or her true and lawful attorney upon whom may be served all
lawful process in any action, suit or proceeding arising out of
violations of this section. Copies of all lawful process shall be
served on the Commissioner and transmitted by registered or
certified mail by the Commissioner to the person at his or her last-
known address.
SECTION 4. AMENDATORY 36 O.S. 2021, Section 4423, is
amended to read as follows:
Section 4423. A. The requirements of the Long-Term Care
Insurance Act shall apply to policies, other than life care
community policies delivered or issued for delivery in this state on
or after November 1, 1987. The requirements of the Long-Term Care
Insurance Act shall apply to life care community policies delivered
or issued for delivery in this state on or after November 1, 1989.
ENR. H. B. NO. 3796 Page 12
B. Notwithstanding any other provision, the Long-Term Care
Insurance Act shall not apply to the following:
1. Residential care homes licensed pursuant to the Oklahoma
Residential Care Act;
2. Assisted living centers and continuum of care facilities
licensed pursuant to the Oklahoma Continuum of Care and Assisted
Living Act; or
3. Facilities licensed pursuant to the Oklahoma Nursing Home
Care Act.
C. The Long-Term Care Insurance Act is not intended to
supersede the obligations of entities subject to said act to comply
with the substance of other applicable insurance laws insofar as
they do not conflict with the Long-Term Care Insurance Act, except
that laws and regulations designed and intended to apply to Medicare
supplement insurance policies shall not apply to long-term care
insurance. A policy which is not advertised, marketed or offered as
long-term care insurance need not meet the requirements of the Long-
Term Care Insurance Act. The Long-Term Care Insurance Act is not
intended to require life care communities to be licensed insurers.
Life care communities which are not licensed insurers shall not be
subject to the provisions of the Insurance Code or the jurisdiction
of the Insurance Commissioner, except as provided in the Long-Term
Care Insurance Act.
D. A person may not sell, solicit, or negotiate long-term care
insurance unless the person is licensed as an insurance producer for
accident and health or sickness or life. For purposes of this
subsection, "terms" shall have the same definitions as set forth in
Section 1435.2 of this title.
SECTION 5. REPEALER 36 O.S. 2021, Section 1416, is
hereby repealed.
SECTION 6. This act shall become effective November 1, 2026.
ENR. H. B. NO. 3796 Page 13
Passed the House of Representatives the 25th day of March, 2026.
Presiding Officer of the House
of Representatives
Passed the Senate the 4th day of May, 2026.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________