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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
SENATE BILL 1444 By: Kirt
AS INTRODUCED
An Act relating to insurance; amending 36 O.S. 2021,
Sections 985, 987, 989, 994, and 995, as amended by
Section 1, Chapter 304, O.S.L. 2022 (36 O.S. Supp.
2025, Section 995), which relate to ratemaking
standards, rate filings, improper rates, and the
Property and Casualty Competitive Loss Cost Rating
Act; allowing certain rates to be determined to be
excessive; allowing certain rates to be considered
based on certain criteria; requiring every insurer to
file with the Insurance Commissioner all rates and
supplementary rate information within a certain time
period prior to the effective date of the rate;
allowing Commissioner to give written notice to
certain insurer within a certain time period for
additional time; updating statutory reference;
requiring Commissioner to disapprove certain rates;
allowing Commissioner to hold certain hearing for
certain rate disapproval; increasing certain time
frame for certain advisory organization to file
certain information; 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 985, is
amended to read as follows:
Section 985. Ratemaking Standards.
A. A rate may not be excessive, inadequate or unfairly
discriminatory.
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1. No rate in a competitive market may be determined to be
excessive. A rate in a noncompetitive market may be determined to
be excessive if it is likely to produce a profit that is
unreasonably high for the insurance provided or is unreasonably high
in relation to the services rendered.
2. A rate may not be determined to be inadequate unless:
a. the rate is clearly insufficient to sustain projected
losses, expenses and special assessments, and
b. the rate is unreasonably low and use of the rate by
the insurer has tended or, if continued, will tend to
create a monopoly in the market.
3. Unfair discrimination may be determined to exist if, after
allowing for practical limitations, price differentials fail to
reflect equitably the differences in expected losses and expenses.
A rate may not be determined to be unfairly discriminatory because
different premiums result for policyholders with like loss exposures
but different expense levels, or like expenses but different loss
exposures, or if it averaged broadly among persons insured within a
group, franchise or blanket policy or a mass-marketed plan. No rate
in a competitive market shall be considered unfairly discriminatory
unless it classifies risk on the basis of race, color, creed, or
national origin, or religion.
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B. In determining whether rates in a noncompetitive market are
excessive, inadequate, or unfairly discriminatory, due consideration
may be given to:
1. Past and prospective loss experience within and outside this
state, in accordance with accepted actuarial principles;
2. Conflagration and catastrophe hazards;
3. A reasonable margin for underwriting profit and
contingencies;
4. Loadings for leveling premium rates over time for dividends,
savings or unabsorbed premium deposits allowed or returned by
insurers to their policyholders, members or subscribers;
5. Past and prospective expenses both countrywide and those
specially applicable to this state; and
6. Provisions for special assessments; and to all other
relevant factors including judgment within and outside this state.
C. Risks may be grouped by classifications for the
establishment of rates and minimum premiums. Classification rates
may be modified to produce rates for individual risks in accordance
with rating plans which establish standards for measuring variations
in hazards or expense provisions, or both. Such standards may
measure any differences among risks that can be demonstrated to have
a probable effect upon losses or expenses. No risk classification,
however, may be based on race, creed, national origin, or the
religion of the insured.
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D. The expense provisions included in the rates for use by an
insurer or group of insurers may differ from those of any other
insurer or group of insurers to reflect the requirements of the
operating methods of the insurer or group of insurers.
E. The rates may contain provision for contingencies and an
allowance permitting a reasonable profit. In determining the
reasonableness of the profit, consideration shall be given to the
investment income attributable to the line of insurance.
F. Risks may be classified in any way except that no risk may
be classified on the basis of race, color, creed, or national
origin, or religion.
SECTION 2. AMENDATORY 36 O.S. 2021, Section 987, is
amended to read as follows:
Section 987. Rate Filings.
A. In a competitive market, every Every insurer shall file with
the Insurance Commissioner all rates and supplementary rate
information to be used in this state no later than thirty (30) days
after at least sixty (60) calendar days prior to the effective date;
provided, that the rates and supplementary rate information need not
be filed for commercial risks, which by general custom are not
written according to manual rules or rating plans.
B. In a noncompetitive market, every insurer shall file with
the Commissioner all rates, supplementary rate information and
supporting information at least thirty (30) days before the proposed
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effective date. The Commissioner may give written notice, within
thirty (30) sixty (60) days of receipt of the filing, that the
Commissioner needs additional time, not to exceed thirty (30) sixty
(60) days from the date of the notice to consider the filing. Upon
written application of the insurer, the Commissioner may authorize
rates to be effective before the expiration of the waiting period or
an extension thereof. A filing shall be deemed to meet the
requirements of the Property and Casualty Competitive Loss Cost
Rating Act and to become effective unless disapproved pursuant to
this title by the Commissioner before the expiration of the waiting
period or an extension thereof.
In a noncompetitive market, the filing shall be deemed in
compliance with the filing provision of this section unless the
Commissioner informs the insurer within ten (10) days after receipt
of the filings as to what supplementary rate information or
supporting information is required to complete the filing.
C. B. Every authorized insurer shall file with the
Commissioner, except as to rates for those lines of insurance
exempted from the provisions of the Property and Casualty
Competitive Loss Cost Rating Act by the Commissioner under
subsections E D and F E of this section and except for those risks
designated as special risks under Section 997 of this title, all
rates, supplementary rate information and any changes and amendments
which it proposes to use. An insurer may file its rates by either
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filing its final rates or by filing a multiplier and, if applicable,
an expense constant adjustment to be applied to prospective loss
costs that have been filed by an advisory organization as permitted
by this title. Such loss cost multiplier filing and expense
constant filings made by insurers shall remain in effect until
amended or withdrawn by the insurer. Every filing shall state the
effective date.
D. C. Under rules as may be adopted, the Commissioner may, by
written order, suspend or modify the requirement of filing as to any
kind of insurance, subdivision or combination thereof, or as to
classes of risks.
E. D. Notwithstanding any other provision of the Property and
Casualty Competitive Loss Cost Rating Act, upon the written consent
of the insured in a separate written document, a rate in excess of
that determined in accordance with the other provisions of the
Property and Casualty Competitive Loss Cost Rating Act may be used
on a specific risk.
F. E. A filing and any supporting information required to be
filed shall be open to public inspection once the filing becomes
effective except information marked confidential, trade secret, or
proprietary by the insurer or filer and except the filings of an
advisory organization which shall be open to public inspection upon
the received date of the rate, loss cost, or manual rule change.
The insurer or filer shall have the burden of asserting to the
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Commissioner that a filing and supporting information are
confidential, upon the request of the Commissioner. The
Commissioner may disapprove of the insurer’s request for
confidential filing status.
SECTION 3. AMENDATORY 36 O.S. 2021, Section 989, is
amended to read as follows:
Section 989. Improper Rates; Disapproval; Hearing.
A. Basis for disapproval.
1. The Insurance Commissioner shall disapprove a rate in a
competitive market only if the Commissioner finds, pursuant to
subsection B of this section, that the rate is excessive,
inadequate, or unfairly discriminatory pursuant to Section 985 of
this title.
2. The Commissioner may disapprove a rate for use in a
noncompetitive market only if the Commissioner finds, pursuant to
subsection B of this section, that the rate is excessive, inadequate
or unfairly discriminatory under this subsection.
B. Procedures for disapproval.
1. Prior to the expiration of a waiting period or an extension
thereof, made pursuant to subsection B of Section 987 of this title,
the Commissioner may disapprove, by written order, rates filed
pursuant to subsection B of Section 987 of this title with a
hearing. The order shall specify in what respects the filing fails
to meet the requirements of this act. Any insurer whose rates are
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disapproved pursuant to this section shall be given a hearing upon
written request made within thirty (30) days of disapproval.
2. If, at any time, the Commissioner finds that a rate
applicable to insurance sold in a noncompetitive market does not
comply with the standards set forth in Section 985 of this title,
the Commissioner may, after a hearing held upon not less than twenty
(20) days’ written notice, issue an order pursuant to subsection C
of this section, disapproving such rate. The hearing notice shall
be sent to every insurer and advisory organization that adopted the
rate and shall specify the matters to be considered at the hearing.
The disapproval order shall not affect any contract or policy made
or issued prior to the effective date set forth in the order.
3. If, at any time, the Commissioner finds that a rate
applicable to insurance sold in a competitive market is inadequate
or unfairly discriminatory under paragraph 2 or 3 of subsection A of
Section 985 of this title, the Commissioner may issue an order
pursuant to subsection C of this section disapproving the rate. The
order shall not affect any contract or policy made or issued prior
to the effective date set forth in the order.
C. Order of disapproval.
If the Commissioner disapproves a rate pursuant to subsection B
of this section, the Commissioner shall issue an order within thirty
(30) days of the close of the hearing specifying in what respects
the rate fails to meet the requirements of this act. The order
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shall state an effective date no sooner than thirty (30) business
days after the date of the order when the use of the rate shall be
discontinued. This order shall not affect any policy made before
the effective date of the order.
D. Appeal of orders and establishment of reserves.
If an order of disapproval is appealed pursuant to Section 990
of this title, the insurer may implement the disapproved rate upon
notification to the court, in which case any excess of the
disapproved rate over a rate previously in effect shall be placed in
a reserve established by the insurer. The court shall have control
over the disbursement of funds from such reserve. The funds shall
be distributed as determined by the court in its final order except
that de minimus refunds to policyholders shall not be required.
E. D. All determinations made by the Commissioner under this
section shall be on the basis of findings of fact and conclusions of
law.
SECTION 4. AMENDATORY 36 O.S. 2021, Section 994, is
amended to read as follows:
Section 994. Advisory Organizations; Filing Requirements.
Every advisory organization shall file with the Insurance
Commissioner for approval every statistical plan, all prospective
loss costs, provisions for special assessments and all supplementary
rating information and every change or amendment or modification of
any of the foregoing proposed for use in this state at least thirty
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(30) sixty (60) days prior to its effective date. Such filings will
be deemed approved unless disapproved within the waiting period.
SECTION 5. AMENDATORY 36 O.S. 2021, Section 995, as
amended by Section 1, Chapter 304, O.S.L. 2022 (36 O.S. Supp. 2025,
Section 995), is amended to read as follows:
Section 995. Joint Underwriting, Joint Reinsurance Pool and
Residual Market Activities.
A. Notwithstanding paragraph 3 of subsection A of Section 992
of this title, insurers participating in joint underwriting, joint
reinsurance pools or residual market mechanisms may in connection
with such activity act in cooperation with each other in the making
of rates, rating systems, policy forms, underwriting rules, surveys,
inspections and investigations, the furnishing of loss and expense
statistics or other information, or carrying on research. Joint
underwriting, joint reinsurance pools and residual market mechanisms
shall not be deemed an advisory organization.
B. Except to the extent modified by this section, joint
underwriting, joint reinsurance pool and residual market mechanism
activities are subject to the other provisions of the Property and
Casualty Competitive Loss Cost Rating Act.
C. If, after a hearing, the Insurance Commissioner finds that
any activity or practice of an insurer participating in joint
underwriting or a pool is unfair, is unreasonable, will tend to
lessen competition in any market or is otherwise inconsistent with
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the provisions or purposes of the Property and Casualty Competitive
Loss Cost Rating Act, the Commissioner may shall issue a written
order and require the discontinuance of such activity or practice.
D. Every pool shall file with the Commissioner a copy of its
constitution, articles of incorporation, agreement or association,
bylaws, rules and regulations governing its activities, list of
members, the name and address of a resident of this state upon whom
notice, orders of the Commissioner, or process may be served, and
any changes in amendments or changes in the foregoing.
E. Any residual market mechanism, plan or agreement to
implement such a mechanism, and any changes or amendments thereto,
shall be submitted in writing to the Commissioner for consideration
and approval, together with such information as may be reasonably
required.
SECTION 6. This act shall become effective November 1, 2026.
60-2-2755 CAD 1/7/2026 5:17:40 PM