Read the full stored bill text
Req. No. 2754 Page 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
SENATE BILL 1438 By: Kirt
AS INTRODUCED
An Act relating to insurance; defining terms;
requiring certain insurers to file certain
information annually with the Insurance Commissioner;
establishing certain requirements to determine
excessive profit; requiring certain insurers to file
certain loss and loss adjustment data; establishing
certain computation for certain underwriting gain or
loss; requiring certain comparison of certain gain or
loss with certain profit; requiring certain return of
certain excessive amounts; providing certain
requirements for certain returns; requiring certain
refunds to be treated as certain dividend;
authorizing promulgation by Commissioner of certain
rules; providing for codification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1018 of Title 36, unless there
is created a duplication in numbering, reads as follows:
A. As used in this section:
1. “Anticipated underwriting profit” means the sum of the
dollar amounts obtained by multiplying, for each rate filing of the
insurer group in effect in a three-year period, the earned premiums
Req. No. 2754 Page 2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
applicable to such rate filings by the percentage factor, determined
with due recognition to investment income from funds generated by
business in this state, included in such rate filings for profit and
contingencies;
2. “Final compilation year” means the final year in which data
is reported in a three-year reporting period; and
3. “Insurer” means any insurance business licensed in this
state that is written on a family automobile policy, standard
automobile policy, personal automobile policy, or other similar
private passenger automobile policy written for personal use.
Insurer shall not include a commercial automobile insurance
business.
B. All insurers in this state shall file annually, prior to
July 1, the following information with the Insurance Commissioner.
All information shall be a consolidation of the data of the
individual insurers of the group. Such information shall include:
1. Calendar-year total limits earned premium;
2. Accident-year incurred losses and loss adjustment expenses;
3. The administrative and selling expenses incurred in this
state or allocated to this state for the calendar year; and
4. Policyholder dividends incurred during the applicable
calendar year.
C. An insurer shall be deemed to have excessive profit if there
has been an underwriting gain for the three (3) most recent calendar
Req. No. 2754 Page 3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
years combined that is greater than the anticipated underwriting
profit plus five percent (5%) of earned premiums for those calendar
years.
D. Each insurer shall file a schedule of loss and loss
adjustment experience for the three (3) previous accident years.
Any incurred losses and loss adjustment expenses shall be valued as
of March 31 of the year following the close of the accident year,
developed to an ultimate basis, and at two-month intervals after
such close of an accident year such that three evaluations shall be
provided in each accident year.
E. Each insurer group’s underwriting gain or loss for each
accident year shall be computed by taking the sum of the accident
year incurred losses and loss adjustment expenses as of March 31 of
the following year, plus the administrative and selling expenses
incurred in the calendar year, plus policyholder dividends
applicable to the calendar year, subtracted from the accident year
earned premium.
F. For the three (3) most recent calendar-accident years, the
underwriting gain or loss shall be compared to the anticipated
underwriting profit.
G. 1. If the insurer group is deemed to have excessive profit,
the Commissioner shall order a return of the excessive amounts after
affording the insurer group an opportunity for hearing. Any
excessive amounts shall be refunded unless the insurer group
Req. No. 2754 Page 4
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
affirmatively demonstrates to the Commissioner that the refund of
such excessive amounts will render a member of the insurer group
financially impaired or insolvent.
2. Such excessive amounts shall be refunded on a pro rata basis
in relation to the final compilation year earned premiums to all
policyholders on record of the insurer on December 31 of the final
compilation year. Any such refund shall be returned to
policyholders in the form of a cash refund or a credit toward the
future purchase of insurance.
3. A cash refund shall be completed within sixty (60) days of
entry of a final order indicating that the insurer has been deemed
to have excessive profits. A credit refund shall be applied to
policy renewal premium notices that are forwarded to the
policyholders more than sixty (60) days after entry of such final
order. If an insurer has elected to utilize credit refunds, and a
policyholder cancels his or her policy or otherwise allows the
policy to terminate, the insurer shall make a cash refund no later
than sixty (60) days after termination of such coverage. Upon
completion of such refunds, the insurer shall immediately notify the
Commissioner.
4. Any refund made pursuant to this subsection shall be treated
as a policyholder dividend applicable to the year in which it is
incurred for the purposes of reporting pursuant to this section.
Req. No. 2754 Page 5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
H. The Commissioner shall be authorized to promulgate any rules
necessary to implement the provisions of this section.
SECTION 2. This act shall become effective November 1, 2026.
60-2-2754 CAD 1/7/2026 9:16:02 AM