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SENATE FLOOR VERSION
March 5, 2026
COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 1913 By: Reinhardt of the Senate
and
Tedford of the House
[ insurance - proceedings - supplemental report -
determinations - civil penalty - penalty amount -
approvals - restitution - rates - first claim -
premium discounts - rate reductions - inquiry
response - dispute resolution program - mediation -
negotiation - requirements - settlement agreements -
rules - detailed estimate - Homeowners Claims Bill of
Rights - violations - time period - notice -
explanation - interest - appeal process - policy -
roof age - codification - effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 12 O.S. 2021, Section 1804, is
amended to read as follows:
Section 1804. A. Prior to commencement of any dispute
resolution proceedings, the disputing parties shall enter into a
written consent which specifies the method by which the parties
shall attempt to resolve the issues in dispute.
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B. The written consent shall be in a form prescribed by the
Administrative Director of the Courts and shall include the
following:
1. The rights and obligations of all parties pursuant to the
provisions of the Dispute Resolution Act; and
2. The confidentiality of the proceedings.
C. If the parties agree to have the resolution reduced to
written form, a copy shall be provided to the parties.
D. An alternative dispute resolution proceeding conducted
pursuant to Section 13 of this act shall not be subject to the
requirements of this section.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 311.5 of Title 36, unless there
is created a duplication in numbering, reads as follows:
A. On a quarterly basis, beginning March 31, 2027, each insurer
authorized to write personal and commercial property insurance in
this state shall file with the Insurance Department a supplemental
report with information regarding personal and commercial
residential property insurance policies in this state. Such report
shall:
1. Be filed electronically in the manner and form prescribed by
the Insurance Commissioner in accordance with any instructions from
the Department;
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2. Include separate information for personal lines property
policies and for commercial lines property policies; and
3. Include the following information for each zip code,
monthly:
a. the total number of policies in force at the end of
each month,
b. the total number of policies canceled,
c. the total number of policies not renewed,
d. the total number of new policies written,
e. the total written premium,
f. if such insurer is actively writing policies,
g. the number of policies that exclude wind coverage,
h. the number of new claims open during each month,
i. the number of claims closed during each month,
j. the number of claims pending at the end of each month,
and
k. the number of claims in which either the insurer or
insured invoked any form of alternative dispute
resolution.
B. Supplemental quarterly reports filed with the Commissioner
pursuant to this section shall be treated as working papers and
documents pursuant to subsection F of Section 309.4 of Title 36 of
the Oklahoma Statutes.
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C. The Insurance Commissioner may use supplemental quarterly
reports to assist in determining whether a market conduct
examination or investigation of an insurer should be conducted. For
the purposes of completing a market conduct examination of any
company pursuant to Sections 309.1 through 309.7 of Title 36 of the
Oklahoma Statutes, the Commissioner may use supplemental quarterly
reports or amendments or addendums to such reports to assist in
determining compliance with the laws of this state and rules adopted
by the Commissioner.
D. The Commissioner may, after notice and opportunity to be
heard for an insurer, subject such insurer to a civil penalty of up
to One Thousand Dollars ($1,000.00) for each occurrence of a
violation of the provisions of this section, along with any other
penalties set forth in state law.
SECTION 3. AMENDATORY Section 7, Chapter 345, O.S.L.
2024 (36 O.S. Supp. 2025, Section 322), is amended to read as
follows:
Section 322. A. The Insurance Commissioner may, if the
Commissioner finds that any person or organization has violated the
provisions of any statute, rule, bulletin, or order for which the
Commissioner has jurisdiction, impose a penalty of not more than
Five Thousand Dollars ($5,000.00) Ten Thousand Dollars ($10,000.00)
for each such violation. In addition to or in lieu of any fine, the
Commissioner may suspend, refuse to renew, put on probation, or
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revoke an insurer’s certificate of authority, license, or any other
registration or similar approval that has been issued by the
Commissioner to conduct business in this state. Such penalties may
be in addition to any other penalty provided by law.
B. The Commissioner may direct the person or organization
against whom the order was issued to make complete restitution, in
the form, manner, and amount within a time period prescribed by the
Commissioner, to all residents or insured persons of this state or
entities operating in this state damaged by the violation or failure
to comply with the provisions of any statute, rule, bulletin, or
order for which the Commissioner has jurisdiction.
C. No penalty shall be imposed except upon a written order of
the Commissioner or the appointed independent hearing examiner,
stating the findings of the Commissioner or the appointed
independent hearing examiner after notice and opportunity for a
hearing in accordance with Article II of the Administrative
Procedures Act.
SECTION 4. AMENDATORY 36 O.S. 2021, Section 908, as
amended by Section 2, Chapter 195, O.S.L. 2024 (36 O.S. Supp. 2025,
Section 908), is amended to read as follows:
Section 908. A. The Insurance Commissioner may, if the
Commissioner finds that any person or organization has violated the
provisions of any statute, rule, or order for which the Commissioner
has jurisdiction, impose a penalty of not more than Five Thousand
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Dollars ($5,000.00) Ten Thousand Dollars ($10,000.00) for each such
violation. In addition to or in lieu of any fine, the Commissioner
may suspend, refuse to renew, put on probation, or revoke an
insurer’s certificate of authority, license, or any other
registration or similar approval that has been issued by the
Commissioner to conduct business in this state. Such penalties may
be in addition to any other penalty provided by law.
B. The Commissioner may direct the person or organization
against whom the order was issued to make complete restitution, in
the form, manner, and amount within a time period prescribed by the
Commissioner, to all residents or insured persons of this state or
entities operating in this state damaged by the violation or failure
to comply with the provisions of any statute, rule, bulletin, or
order for which the Commissioner has jurisdiction.
C. No penalty shall be imposed except upon a written order of
the Commissioner or the appointed independent hearing examiner,
stating the findings of the Commissioner or the appointed
independent hearing examiner after notice and opportunity for a
hearing in accordance with Article II of the Administrative
Procedures Act.
SECTION 5. AMENDATORY 36 O.S. 2021, Section 942, is
amended to read as follows:
Section 942. Any insurance carrier that issues motor vehicle
liability or collision insurance policies in this state shall not
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establish or apply premium rates, increase premium rates, cancel a
policy, or refuse to issue or renew a policy, based on any traffic
record maintained by the Department of Public Safety which
including, but not limited to, traffic complaints, traffic
citations, or other legal forms of traffic charges and accident
reports, that covers a period of time more than three (3) years
prior to the date the insurance carrier makes a determination to
take any such action; provided, however, those offenses that are
provided for in subsection C of Section 941 of this title and the
offense of reckless driving as provided for in Section 11-901 of
Title 47 of the Oklahoma Statutes may be considered by an insurance
carrier for a period of not more than five (5) years.
SECTION 6. AMENDATORY 36 O.S. 2021, Section 943, is
amended to read as follows:
Section 943. A. No insurance carrier who issues motor vehicle
policies in this state shall use traffic complaints, traffic
citations, or other legal forms of traffic charges as a basis for
cancellation of a motor vehicle insurance policy, increasing premium
rates for a motor vehicle insurance policy, or refusing to issue or
renew a motor vehicle insurance policy, where the insured was:
1. the insured was acquitted Acquitted of the charge;
2. the insured was arrested Arrested and no charges were filed;
or
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3. the insured was arrested Arrested and the charges were
dismissed.
B. No insurer shall cancel, refuse to renew, or otherwise
terminate a motor vehicle policy that has been in effect more than
forty-five (45) days solely because the insurer filed a first claim
against the policy. Nothing in this subsection shall be construed
to prevent the cancellation, nonrenewal, or other termination for:
1. Nonpayment of premium;
2. Discovery of fraud or material misrepresentation in the
procurement of the insurance or with respect to any claims
submitted;
3. Offenses set forth in subsection C of Section 941 of this
title;
4. Offenses set forth in Section 11-901 of Title 47 of the
Oklahoma Statutes; or
5. A determination by the Insurance Commissioner that the
continuation of the policy would place the insurer in violation of
the insurance laws of this state.
C. The Insurance Commissioner may suspend or revoke, after
notice and hearing, the certificate of authority to transact
insurance business in this state of any insurance carrier violating
the provisions of this section or may censure the insurer or impose
a fine.
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SECTION 7. AMENDATORY 36 O.S. 2021, Section 961, is
amended to read as follows:
Section 961. A. Commencing on April 1, 2018, insurance
Insurance companies shall provide a premium discount or insurance
rate reduction in an amount and manner as established in subsection
D of this section and pursuant to Section 3 of this act only when
the company determines that the premium discount or rate reduction
is actuarially justified and there is sufficient and credible
evidence of cost savings 963 of this title, which can be attributed
to the construction standards set forth in subsection B of this
section. A premium discount or rate reduction shall be available
under the terms specified in this section to any owner who builds or
locates a new insurable property in the State of Oklahoma this state
to resist loss due to tornado or other catastrophic windstorm
events. Insurance companies shall be required to offer such a
premium discount or rate reduction only when the insurer determines
they are actuarially justified and there is sufficient and credible
evidence of cost savings, which can be attributed to the
construction standards set forth in subsection B of this section.
In addition, insurance companies may also offer additional
adjustments in deductible, other risk differentials, or a any
combination thereof, collectively referred to as other adjustments.
B. To obtain the premium discount, rate reduction, or other
adjustment provided in this section, an insurable property located
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in this state shall be certified as constructed in accordance with
Appendix Y X of the 2015 2018 International Building Code, as
adopted by the Oklahoma Uniform Building Code, as amended, including
all tornado mitigation construction requirements, as long as its
standards are equal to or greater than the FORTIFIED Home High Wind
and Hail Standards as certified by the Insurance Institute for
Business and Home Safety (IBHS), or the FORTIFIED Home High Wind and
Hail Standards as may from time to time be adopted by the Insurance
Institute for Business and Home Safety or successor entity. An
insurable property shall be certified as conforming to the
applicable building code only after an inspection of the insurable
property has been satisfactorily completed by a certified or
licensed building inspector and certified to be conforming to the
applicable building code including all high wind and hail mitigation
construction requirements. An insurable property shall be certified
as conforming to the FORTIFIED Home High Wind and Hail Standards
only after evaluation and certification by an evaluator certified
pursuant to the FORTIFIED Home High Wind and Hail Standards.
C. An owner of insurable property claiming a premium discount,
rate reduction, or other adjustment pursuant to this section shall
maintain sufficient certification records and construction records
including, but not limited to, a certification of compliance with
the applicable building code or the FORTIFIED Home High Wind and
Hail Standards provided in subsection B of this section, receipts
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from contractors, receipts for materials, and records from local
building officials. The records shall be subject to audit by the
Insurance Commissioner, or his or her representatives, and copies of
any such records shall be presented to the insurer or potential
insurer of a property owner before the premium discount, rate
reduction, or other adjustment becomes effective for the insurable
property.
D. Insurers that write policies that are subject to the premium
discount or rate reduction in this section and that are required to
submit rates and rating plans to the Commissioner pursuant to
Section 987 of Title 36 of the Oklahoma Statutes this title shall
submit a rating plan plans certified by their actuary as actuarially
justified providing for the premium discount discounts or rate
reduction reductions described in this section. An insurer is not
required to provide the same amount of premium discount, rate
reduction, or other adjustment for a building code insurable
property as the insurer would to an insurable property conforming to
the FORTIFIED Home High Wind and Hail Standards. A premium
discount, rate reduction, or other adjustment shall only apply to
policies that provide wind or hail coverage and to that portion of
the premium for wind or hail coverage. A premium discount, rate
reduction, or other adjustment shall apply exclusively to the wind
and hail premium applicable to improved insurable property. If an
insurer already offers an actuarially justified a hail resistance
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discount, that hail-related discount shall be deemed as having met
the requirements of this act Section 961 et seq. of this title as it
pertains to hail-related discounts or rate reductions and no
additional hail-related discount or rate reduction shall be
required. If an insurer already offers an actuarially justified a
discount for IBHS FORTIFIED Home standards High Wind and Hail
Standards, that discount shall be deemed as having met the
requirements of this act Section 961 et seq. of this title as it
pertains to wind-related discounts or rate reductions and no
additional wind-related discount or rate reduction shall be
required. Insurers shall apply any applicable premium discount,
rate reduction, or other adjustment to the wind and hail premium at
the policy renewal that follows the submission of the certification
to the insurer. At the time of a policy renewal for which a premium
discount, rate reduction, or other adjustment has previously been
made, the insurer may request documentation or recertification that
the fortified standards IBHS FORTIFIED Home High Wind and Hail
Standards as described in subsection subsections B and C of this
section continue to be met. In addition to the requirements of this
section, an insurer may voluntarily offer any other mitigation
adjustment that the insurer deems appropriate.
SECTION 8. AMENDATORY 36 O.S. 2021, Section 962, is
amended to read as follows:
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Section 962. A. Commencing on April 1, 2018, insurance
Insurance companies shall provide a premium discount or insurance
rate reduction in an amount and manner as established in subsection
D of this section and pursuant to Section 3 of this act only when
the company determines that the premium discount or rate reduction
is actuarially justified and there is sufficient and credible
evidence of cost savings 963 of this title, which can be attributed
to the construction standards set forth in subsection B of this
section. A premium discount or rate reduction shall be available
under the terms specified in this section to any owner who retrofits
his or her insurable property located in the State of Oklahoma this
state to resist loss due to tornado or other catastrophic windstorm
events. Insurance companies shall be required to offer a premium
discount or rate reduction only when the insurer has deemed the
adjustments to be actuarially justified and there is sufficient and
credible evidence of cost savings, which can be attributed to the
construction standards set forth in subsection B of this section.
In addition, insurance companies may also offer additional
adjustments in deductible, other risk differentials, or a any
combination thereof, collectively referred to as other adjustments.
B. To obtain the premium discount, rate reduction, or other
adjustment provided in this section, an insurable property shall be
retrofitted to the FORTIFIED Home High Wind and Hail Standards, as
may from time to time be adopted certified by the Insurance
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Institute for Business and Home Safety (IBHS). Wind-Zone-3-HUD-Code
manufactured homes installed on a permanent foundation and
retrofitted as defined in the FORTIFIED Home High Wind and Hail
Standards, as may from time to time be adopted certified by the
Insurance Institute for Business and Home Safety, shall be eligible
for the premium discount or rate reduction provided in this section.
An insurable property shall be certified as conforming to FORTIFIED
Home High Wind and Hail Standards only after evaluation and
certification by an evaluator certified pursuant to the FORTIFIED
Home High Wind and Hail Standards.
C. An owner of insurable property claiming a premium discount,
rate reduction, or other adjustment pursuant to this section shall
maintain sufficient certification records and construction records
including, but not limited to, a certification of compliance with
the FORTIFIED Home High Wind and Hail Standards as provided in
subsection B of this section, receipts from contractors, and
receipts for materials. The records shall be subject to audit by
the Insurance Commissioner, or his or her representatives, and
copies of any such records shall be presented to the insurer or
potential insurer of a property owner before the premium discount,
rate reduction, or other adjustment becomes effective for the
insurable property.
D. Insurers that write policies that are subject to the premium
discount or rate reduction in this section and that are required to
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submit rates and rating plans to the Commissioner pursuant to
Section 987 of Title 36 of the Oklahoma Statutes this title shall
submit rating plans certified by their actuary as actuarially
justified providing for the premium discounts or rate reductions
described in this section. A premium discount, rate reduction, or
other adjustment shall only apply to policies that provide wind or
hail coverage and to that portion of the premium for wind or hail
coverage. A premium discount, rate reduction, or other adjustment
shall apply exclusively to the wind and hail premium applicable to
improved insurable property. If an insurer already offers an
actuarially justified a hail resistance discount, that hail-related
discount shall be deemed as having met the requirements of this act
Section 961 et seq. of this title as it pertains to hail-related
discounts or rate reductions and no additional hail-related discount
or rate reduction shall be required. If an insurer already offers
an actuarially justified a discount for IBHS FORTIFIED Home
standards High Wind and Hail Standards, that discount shall be
deemed as having met the requirements of this act Section 961 et
seq. of this title as it pertains to wind-related discounts or rate
reductions and no additional wind-related discount or rate reduction
shall be required. Insurers shall apply the premium discount, rate
reduction, or other adjustment to the wind and hail premium at the
policy renewal that follows the submission of the certification to
the insurer. At the time of a policy renewal for which a premium
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discount, rate reduction, or other adjustment has previously been
made, the insurer may request documentation or recertification that
the fortified standards IBHS FORTIFIED High Wind and Hail Standards
as described in subsection subsections B and C of this section
continue to be met. In addition to the requirements of this
section, an insurer may voluntarily offer any other mitigation
adjustment that the insurer deems appropriate.
SECTION 9. AMENDATORY 36 O.S. 2021, Section 1204, as
amended by Section 16, Chapter 360, O.S.L. 2024 (36 O.S. Supp. 2025,
Section 1204), is amended to read as follows:
Section 1204. The following are hereby defined as unfair
methods of competition and unfair and deceptive acts or practices in
the business of insurance:
1. Misrepresentations and false advertising of policy
contracts. Making, issuing, circulating, or causing to be made,
issued, or circulated, any estimate, illustration, circular, or
statement misrepresenting the terms of any policy issued or to be
issued or the benefits or advantages promised thereby or the
dividends or share of the surplus to be received thereon, or making
any false or misleading statement as to the dividends or share of
surplus previously paid on similar policies, or making any
misleading representation or any misrepresentation as to the
financial condition of any insurer, or as to the legal reserve
system upon which any life insurer operates, or using any name or
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title of any policy or class of policies misrepresenting the true
nature thereof, or making any misrepresentation to any policyholder
insured in any company for the purpose of inducing or tending to
induce such policyholder to lapse, forfeit, or surrender his or her
insurance;
2. False information and advertising generally. Making,
publishing, disseminating, circulating, or placing before the
public, or causing, directly or indirectly, to be made, published,
disseminated, circulated, or placed before the public, in a
newspaper, magazine, or other publication, or in the form of a
notice, circular, pamphlet, letter, or poster, or over any radio or
television station, or in any other way an advertisement,
announcement, or statement containing any assertion, representation,
or statement with respect to the business of insurance or with
respect to any person in the conduct of his or her insurance
business which is untrue, deceptive, or misleading. No insurance
company shall issue, or cause to be issued, any policy of insurance
of any type or description upon life, or property, real or personal,
whenever such policy of insurance is to be furnished or delivered to
the purchaser or bailee of any property, real or personal, as an
inducement to purchase or bail such property, real or personal, and
no other person shall advertise, offer, or give free insurance,
insurance without cost or for less than the approved or customary
rate, in connection with the sale or bailment of real or personal
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property, except as provided in Section 4101 of this title. No
person that is not an insurer shall assume or use any name which
deceptively infers or suggests that it is an insurer;
3. Defamation. Making, publishing, disseminating, or
circulating, directly or indirectly, or aiding, abetting, or
encouraging the making, publishing, disseminating, or circulating of
any oral or written statement or any pamphlet, circular, article, or
literature which is false, or maliciously critical of or derogatory
to the financial condition of an insurer, and which is calculated to
injure any person engaged in the business of insurance;
4. Boycott, coercion, and intimidation. Entering into any
agreement to commit, or by any concerted action committing, any act
of boycott, coercion, or intimidation resulting in or tending to
result in unreasonable restraint of, or monopoly in, the business of
insurance;
5. False financial statements. Filing with any supervisory or
other public official, or making, publishing, disseminating,
circulating, or delivering to any person, or placing before the
public or causing directly or indirectly, to be made, published,
disseminated, circulated, delivered to any person, or placed before
the public, any false statement of financial condition of an insurer
with intent to deceive.;
6. Making any false entry in any book, report, or statement of
any insurer with intent to deceive any agent or examiner lawfully
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appointed to examine into its condition or into any of its affairs,
or any public official to whom such insurer is required by law to
report, or who has authority by law to examine into its condition or
into any of its affairs, or, with like intent, willfully omitting to
make a true entry of any material fact pertaining to the business of
such insurer in any book, report, or statement of such insurer;
6. 7. Stock operations and advisory board contracts. Issuing
or delivering or permitting agents, officers, or employees to issue
or deliver agency company stock or other capital stock, or benefit
certificates or shares in any common-law corporation, or securities
or any special or advisory board contracts or other contracts of any
kind promising returns and profits as an inducement to insurance;
7. 8. Unfair discrimination.
(a) a. Making or permitting any unfair discrimination
between individuals of the same class and equal
expectation of life in the rates charged for any
contract of life insurance or of life annuity or in
the dividends or other benefits payable thereon, or in
any other of the terms and conditions of such
contract.
(b) b. Making or permitting any unfair discrimination
between individuals of the same class and of
essentially the same hazard in the amount of premium,
policy fees, or rates charged for any policy or
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contract of accident or health insurance or in the
benefits payable thereunder, or in any of the terms or
conditions of such contract, or in any other manner
whatever.
(c) c. As to kinds of insurance other than life and
accident and health, no person shall make or permit
any unfair discrimination in favor of particular
persons, or between insureds or subjects of insurance
having substantially like insuring, risk, and exposure
factors, or expense elements, in the terms or
conditions of any insurance contract, or in the rate
or amount of premium charged therefor. This paragraph
shall not apply as to any premium rate in effect
pursuant to Article 9 of the Oklahoma Insurance Code;
8. 9. Rebates.
(a) a. Except as otherwise expressly provided by law,
knowingly permitting or offering to make or making any
contract of insurance or agreement as to such contract
other than as plainly expressed in the contract issued
thereon; or paying or allowing, or giving or offering
to pay, allow, or give, directly or indirectly, as
inducement to any contract of insurance, any rebate of
premiums payable on the contract, or any special favor
or advantage in the dividends or other benefits
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thereon, or any valuable consideration or inducement
whatever not specified in the contract; except in
accordance with an applicable rate filing, rating
plan, or rating system filed with and approved by the
Insurance Commissioner; or giving or selling or
purchasing or offering to give, sell, or purchase as
inducement to such insurance, or in connection
therewith, any stocks, bonds, or other securities of
any company, or any dividends or profits accrued
thereon, or anything of value whatsoever not specified
in the contract or receiving or accepting as
inducement to contracts of insurance, any rebate of
premium payable on the contract, or any special favor
or advantage in the dividends or other benefit to
accrue thereon, or any valuable consideration or
inducement not specified in the contract.
(b) b. Nothing in paragraph 7 or subparagraph (a) a of this
paragraph shall be construed as including within the
definition of discrimination or rebates any of the
following practices:
(1) in the case of any contract of life insurance or
life annuity, paying bonuses to policyholders or
otherwise abating their premiums in whole or in
part out of surplus accumulated from
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nonparticipating insurance, provided that any
such bonuses or abatement of premiums shall be
fair and equitable to policyholders and for the
best interest of the company and its
policyholders,
(2) in the case of life or accident and health
insurance policies issued on the industrial debit
or weekly premium plan, making allowance to
policyholders who have continuously for a
specified period made premium payments directly
to an office of the insurer in an amount which
fairly represents the saving savings in
collection expense,
(3) making a readjustment of the rate of premium for
a policy based on the loss or expense experience
thereunder, at the end of the first or any
subsequent policy year of insurance thereunder,
which may be made retroactive only for such
policy year,
(4) in the case of life insurance companies, allowing
its bona fide employees to receive a commission
on the premiums paid by them on policies on their
own lives,
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(5) issuing life or accident and health policies on a
salary saving or payroll deduction plan at a
reduced rate commensurate with the savings made
by the use of such plan, and
(6) paying commissions or other compensation to duly
licensed agents or brokers, or allowing or
returning to participating policyholders,
members, or subscribers, dividends, savings, or
unabsorbed premium deposits.
(c) c. As used in this section, the word “insurance”
includes suretyship and the word “policy” includes
bond;
9. 10. Coercion prohibited. Requiring as a condition precedent
to the purchase of, or the lending of money upon the security of,
real or personal property, that any insurance covering such
property, or liability arising from the ownership, maintenance, or
use thereof, be procured by or on behalf of the vendee or by the
borrower in connection with such purchase or loan through any
particular person or agent or in any particular insurer, or
requiring the payment of a reasonable fee as a condition precedent
to the replacement of insurance coverage on mortgaged property at
the anniversary date of the policy; provided, however, that this
provision shall not prevent the exercise by any such vendor or
lender of the right to approve or disapprove any insurer selected to
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underwrite the insurance, but any disapproval of any insurer shall
be on reasonable grounds;
10. 11. Inducements. No insurer, agent, broker, solicitor, or
other person shall, as an inducement to insurance or in connection
with any insurance transaction, provide in any policy for or offer,
sell, buy, or offer or promise to buy, sell, give, promise, or allow
to the insured or prospective insured or to any other person in his
or her behalf in any manner whatsoever:
(a) a. any employment,
(b) b. any shares of stock or other securities issued or at
any time to be issued or any interest therein or
rights thereto,
(c) c. any advisory board contract, or any similar
contract, agreement, or understanding, offering,
providing for, or promising any special profits,
(d) d. any prizes, goods, wares, merchandise, or tangible
property of an aggregate value in excess of One
Hundred Dollars ($100.00), or
(e) e. any special favor, advantage, or other benefit in
the payment, method of payment, or credit for payment
of the premium through the use of credit cards, credit
card facilities, credit card lists, or wholesale or
retail credit accounts of another person. The
provisions of this paragraph shall not apply to
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individual policies insuring against loss resulting
from bodily injury or death by accident as defined by
Article 44 of the Oklahoma Insurance Code;
11. 12. Premature disposal of premium notes prohibited. No
insurer or agent thereof shall hypothecate, sell, or dispose of a
promissory note received in payment of any part of a premium on a
policy of insurance applied for prior to the delivery of the policy;
12. 13. Fraudulent statement in application. Any insurance
agent, examining physician, or other person who knowingly or
willfully makes a false or fraudulent statement or representation in
or relative to an application for insurance, or who makes any such
statement to obtain a fee, commission, money, or benefit, shall be
guilty of a misdemeanor;
13. 14. Deceptive use of financial institution’s name in
notification or solicitation. Verbally or by any other means
notifying or soliciting any person in a manner that:
(a) a. mentions the name of an unrelated and unaffiliated
financial institution,
(b) b. mentions an insurance product or the possible lack
of insurance coverage,
(c) c. does not mention the actual or trade name of the
insurance agency or company on whose behalf the
notification or solicitation is provided, and
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(d) d. thereby creates an impression or implication,
including by omission, that the financial institution
or a financial-institution-authorized entity is or may
be the one making the notification or solicitation.
Nothing in this paragraph shall be interpreted to prohibit the
reference to or use of the name of a financial institution made
pursuant to a contractual agreement between the insurer and the
financial institution; and
14. 15. No insurer or prepaid vision plan organization as
defined in Section 1 of this act 6972 of this title which offers
multiple prepaid vision plans may require as a condition of
participation in any one prepaid vision plan that a vision care
provider participate in any of the other prepaid vision plans
offered by the insurer or prepaid vision plan organization; and
16. Insurers providing additional coverage for an additional
premium as an exception to ordinance or law exclusions shall
consider all building codes as being strictly enforced.
SECTION 10. AMENDATORY 36 O.S. 2021, Section 1211, is
amended to read as follows:
Section 1211. A. Any person who violates a cease and desist
order of the Insurance Commissioner issued and served pursuant to
the provisions of Section 1207 of this title, after it has become
final, and while such order is in effect, shall, upon proof thereof
to the satisfaction of the court, forfeit and pay to the State of
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Oklahoma a civil penalty of not less than One Hundred Dollars
($100.00), nor more than One Thousand Dollars ($1,000.00) Twenty-
five Thousand Dollars ($25,000.00) for each violation.
B. The Commissioner may direct the person or organization
against whom the order was issued to make complete restitution, in
the form, manner, and amount within a time period prescribed by the
Commissioner, to all residents or insured persons of this state or
entities operating in this state damaged by the violation or failure
to comply with the provisions of any statute, rule, bulletin, or
order for which the Commissioner has jurisdiction.
SECTION 11. AMENDATORY 36 O.S. 2021, Section 1212, is
amended to read as follows:
Section 1212. The powers vested in the Insurance Commissioner
by this article shall be additional to any other powers to enforce
penalties, fines, or forfeitures authorized by law with respect to
the methods, acts and practices hereby declared to be unfair or
deceptive violations of the provisions of this title.
SECTION 12. AMENDATORY 36 O.S. 2021, Section 1250.4, is
amended to read as follows:
Section 1250.4. A. An insurer’s claim files shall be subject
to examination by the Insurance Commissioner or by duly appointed
designees. Such files shall contain all notes and work papers
pertaining to a claim in such detail that pertinent events and the
dates of such events can be reconstructed. In addition, the
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Insurance Commissioner, authorized employees, and examiners shall
have access to any of an insurer’s files that may relate to a
particular complaint under investigation or to an inquiry or
examination by the Insurance Department.
B. Any person subject to the jurisdiction of the Commissioner,
upon receipt of any inquiry from the Commissioner, shall, within
twenty (20) fourteen (14) calendar days from the date of receipt of
the inquiry, furnish the Commissioner with an adequate response to
the inquiry. The Commissioner may, upon good cause shown and on a
case-by-case basis, extend the time allowed for a response for up to
seven (7) additional calendar days. Any inquiry or response subject
to this subsection shall be delivered electronically.
C. Every insurer, upon receipt of any pertinent written
communication including, but not limited to e-mail, electronic mail
or other forms of written electronic communication, or documentation
by the insurer of a verbal communication from a claimant which
reasonably suggests that a response is expected, shall, within
thirty (30) fourteen (14) calendar days after receipt thereof,
furnish the claimant with an adequate response to the communication.
D. Any violation by an insurer of this section shall subject
the insurer to discipline including a civil penalty of not less than
One Hundred Dollars ($100.00) nor more than Five Thousand Dollars
($5,000.00) Ten Thousand Dollars ($10,000.00).
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SECTION 13. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1250.4a of Title 36, unless
there is created a duplication in numbering, reads as follows:
A. For purposes of this section, “claim” means any dispute
between an insurer and a policyholder relating to a material issue
of fact other than a dispute:
1. Where the insurer has a reasonable basis to suspect fraud;
2. When there is no coverage under the policy based on
presented facts as to the cause of loss;
3. Where the insurer has a reasonable basis to believe that the
policyholder has intentionally made a material misrepresentation of
fact that is relevant to the claim, and the entire request for
payment of a loss has been denied on the basis of the material
misrepresentation;
4. When the policyholder suffers no actual monetary or property
loss, based on presented facts;
5. When a claim is outside the time frames prescribed in
applicable law; or
6. When a claim has been paid in full prior to any mediation
session held pursuant to this section.
B. The Insurance Commissioner’s dispute resolution program
shall assist consumers and insurance companies effectively,
economically, and fairly, and timely resolve disputes with persons
or entities subject to the jurisdiction of the Insurance
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Commissioner and related to insurance or service warranty claims.
Such dispute resolution period shall be subject to the provisions of
Sections 1801 through 1813 of Title 12 of the Oklahoma Statutes.
C. Mediation may be requested only by the policyholder as a
first-party claimant, a third party as an assignee of the policy
benefits, or the insurer.
D. Mediation shall be voluntary except that insurers shall
participate in any mediation requested by a first-party claimant or
third-party claimant, as assignee of the policy benefits that:
1. Involves an insurance claim under a residential or
commercial residential or automobile insurance policy; and
2. Has not commenced civil litigation relating to the claim to
be mediated.
E. A claim shall not be eligible for mediation unless it has
first been submitted and fully processed through the Insurance
Department’s consumer complaint program.
F. All parties to the mediation shall negotiate in good faith
to resolve the dispute and shall have the authority to immediately
settle the claim. The dispute shall not be required to be resolved
in mediation. If a written settlement is reached and the
policyholder is not represented by an attorney, the policyholder
shall have three (3) business days in which the policyholder may
rescind the settlement unless such policyholder has cashed or
deposited any check, draft, or other payment made to the
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policyholder as a result of the settlement. If a settlement
agreement is reached and is not rescinded, it shall be binding as a
release of all specific claims presented in the mediation
conference.
G. 1. A mediation conference shall be held as scheduled by the
dispute resolution program coordinator. Upon application by any
party for continuance, the program coordinator shall, for good cause
shown or if neither party objects, grant a continuance and shall
notify all parties of the date and place of the rescheduled
conference. Good cause shall include:
a. severe illness, injury, or other emergency that could
not be controlled by the party and could not
reasonably be remedied by the party prior to the
conference by providing a replacement representative,
or
b. the necessity of obtaining additional information,
securing the attendance of a necessary professional,
or the avoidance of significant financial hardship.
2. If the policyholder demonstrates to the mediator the need
for expedited mediation conference due to an undue hardship, the
conference shall be conducted at the earliest date convenient to all
of the parties and the mediator. Undue hardship shall be
demonstrated if holding the conference on a non-expedited basis
would interfere with or contradict the treatment of a severe illness
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or injury, substantially impair a party’s ability to assert their
position at the conference, result in significant financial
hardship, or other reasonably justified grounds.
H. An insurer shall be deemed to have failed to appear if the
insurer’s representative lacks authority to settle the full value of
the claim. The authority to settle a claim shall include the
ability to disburse the full settlement amount within ten (10) days
of the conclusion of the conference. The insurer shall produce at
the conference a copy of the policy and shall bring the entire
claims file to such conference.
I. Any violation of this section by an insurer shall subject
the insurer to discipline including a civil penalty not more than
Ten Thousand Dollars ($10,000.00), in addition to any other
penalties provided by law.
J. The Commissioner may promulgate rules necessary for the
enforcement of the provisions of this section.
SECTION 14. AMENDATORY 36 O.S. 2021, Section 1250.6, is
amended to read as follows:
Section 1250.6. A. Every property and casualty insurer, within
thirty (30) fourteen (14) days after receiving notification of a
claim, shall acknowledge the receipt of such notification unless
payment is made within such period of time. If an acknowledgement
acknowledgment is made by means other than writing, an appropriate
notation of such acknowledgement acknowledgment shall be made in the
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claim file of the property and casualty insurer, and dated.
Notification given to an agent of a property and casualty insurer
shall be notification to the insurer. The acknowledgment shall
include the Homeowners Claims Bill of Rights established in Section
15 of this act.
B. Every property and casualty insurer, upon receiving
notification of a claim, promptly shall provide necessary claim
forms, instruction, and reasonable assistance so that first party
first-party claimants can comply with the policy conditions and the
reasonable requirements of the property and casualty insurer.
Compliance with this paragraph subsection within thirty (30) days
after notification of a claim shall constitute compliance with
subsection A of this section.
C. Every property and casualty insurer shall send the
policyholder a copy of any detailed estimate of the amount of the
loss within seven (7) days after the estimate is generated by an
insurer’s adjuster. This subsection shall not be construed to
require an insurer to create a detailed estimate of the amount of
the loss if such estimate is not reasonably necessary as part of the
claims investigation.
SECTION 15. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1250.6a of Title 36, unless
there is created a duplication in numbering, reads as follows:
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A. An insurer issuing a personal lines residential property
insurance policy in this state shall provide a Homeowners Claims
Bill of Rights to a policyholder within fourteen (14) days after
receiving an initial communication with respect to a claim.
B. Any violation of the provisions of this section shall
constitute a violation of the Unfair Claims Settlement Practices
Act, and the Insurance Commissioner may, after notice and
opportunity for a hearing, subject an insurer to civil penalties set
forth in Sections 1250.13 and 1250.14 of Title 36 of the Oklahoma
Statutes, along with any other penalties set forth in law.
C. The Homeowners Claims Bill of Rights shall include:
“HOMEOWNERS CLAIMS BILL OF RIGHTS
This bill of rights is specific to the claims process and does
not represent all of your rights under Oklahoma law regarding your
policy. This document does not prohibit an insurer from exercising
any right to repair damaged property in compliance with the terms of
an applicable policy.
YOU HAVE THE RIGHT TO:
1. Receive from your insurance company an acknowledgment of
your reported claim within fourteen (14) days after the time you
communicated the claim;
2. Receive from your insurance company within thirty (30) days
after you have submitted an executed proof-of-loss statement to your
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insurance company, confirmation that your claim is accepted or
denied or if further investigation is necessary;
3. Receive from your insurance company a copy of any detailed
estimate of the amount of the loss within seven (7) days after the
estimate is generated by the insurance company’s adjuster;
4. Receive from your insurance company within sixty (60) days
after you have submitted an executed proof-of-loss statement either:
a. full settlement payment for your claim or payment of
the undisputed portion of your claim,
b. denial of your claim, or
c. notice that the insurer needs more time to investigate
the claim and stating the reason why;
5. If an insurer provides notice that it needs more time to
investigate the claim, receive from your insurance company within
ninety (90) days after you have submitted an executed proof-of-loss
statement either:
a. full settlement payment for your claim or payment of
the undisputed portion of your claim, or
b. denial of your claim.
In the event of a weather-related catastrophe or a major natural
disaster, as declared by the Governor, the Insurance Commissioner
may approve a request to extend this deadline an additional twenty
(20) days; and
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6. Contact the Insurance Department via telephone or website
for assistance with any insurance claim or questions pertaining to
the handling of your claim.
YOU ARE ADVISED TO:
1. File all claims directly with your insurance company;
2. Contact your insurance company before entering into any
contract for repairs to confirm any managed repair policy provisions
or optional preferred vendors;
3. Make and document emergency repairs that are necessary to
prevent further damage. Keep the damaged property, if feasible,
keep all receipts, and take photographs or video recordings of
damage before and after any repairs to provide to your insurer;
4. Carefully read any contract that requires you to pay out-of-
pocket expenses or a fee that is based on a percentage of the
insurance proceeds that you will receive for repairing or replacing
your property;
5. Confirm that the contractor you chose is licensed to do
business in Oklahoma. You can verify a contractor’s license and
check to see if there are any complaints against him or her by
calling the Construction Industries Board. You should also ask the
contractor for references from previous work;
6. Require all contractors to provide proof of insurance before
beginning repairs; and
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7. Take precautions if the damage requires you to leave your
home, including securing your property, turning off your gas, water,
and electricity, and contacting your insurance company, and provide
a phone number where you can be reached.”
SECTION 16. AMENDATORY 36 O.S. 2021, Section 1250.7, is
amended to read as follows:
Section 1250.7. A. Within sixty (60) thirty (30) days after
receipt by a property and casualty insurer of properly executed
proofs of loss, the first party first-party claimant shall be
advised of the acceptance or denial of the claim by the insurer, or
if further investigation is necessary. No property and casualty
insurer shall deny a claim because of a specific policy provision,
condition, or exclusion unless reference to such provision,
condition, or exclusion is included in the denial. A denial shall
be given to any claimant in writing, and the claim file of the
property and casualty insurer shall contain a copy of the denial.
If there is a reasonable basis supported by specific information
available for review by the Insurance Commissioner that the first
party first-party claimant has fraudulently caused or contributed to
the loss, a property and casualty insurer shall be relieved from the
requirements of this subsection. In the event of a weather-related
catastrophe or a major natural disaster, as declared by the
Governor, the Insurance Commissioner may extend the deadline imposed
under this subsection an additional twenty (20) days.
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B. If a claim is denied for reasons other than those described
in subsection A of this section, and is made by any other means than
writing, an appropriate notation shall be made in the claim file of
the property and casualty insurer until such time as a written
confirmation can be made.
C. Every property and casualty insurer shall complete
investigation of a claim within sixty (60) days after notification
of proof of loss unless such investigation cannot reasonably be
completed within such time. If such investigation cannot be
completed, or if a property and casualty insurer needs more time to
determine whether a claim should be accepted or denied, it shall so
notify the claimant in writing within sixty (60) days after receipt
of the proofs of loss, giving reasons why more time is needed. If
the investigation remains incomplete, a property and casualty
insurer shall, within sixty (60) days from the date of the initial
notification, send to such claimant a letter setting forth the
reasons additional time is needed for investigation. Except for an
investigation of possible fraud or arson which is supported by
specific information giving a reasonable basis for the
investigation, the time for investigation shall not exceed one
hundred twenty (120) ninety (90) days after receipt of proof of
loss. Provided, in the event of a weather-related catastrophe or a
major natural disaster, as declared by the Governor, the Insurance
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Commissioner may extend this deadline for investigation an
additional twenty (20) days.
D. Within the applicable timelines set forth in subsection C of
this section, the insurer shall pay or deny such claim. If the
insurer’s claim payment is less than specified in any insurer’s
detailed estimate pursuant to subsection C of Section 1250.6 of this
title of the amount of the loss, the insurer shall provide a
reasonable explanation in writing of the difference to the
policyholder. Any untimely payment of an initial or supplemental
claim or portion of such claim shall bear simple interest at the
rate of ten percent (10%) per year. Interest shall begin to accrue
from the date the insurer receives notice of the claim. The
provisions of this subsection shall not be waived, voided, or
nullified by the terms of the insurance policy. If there is a right
to prejudgment interest, the insured shall select whether to receive
prejudgment interest of interest accrued pursuant to this
subsection. Interest shall be payable when the claim, or portion of
the claim, is paid. Failure to comply with this subsection shall
constitute a violation of this section, but shall not form the sole
basis for a private cause of action. Insurers shall not fail to
settle first party first-party claims on the basis that
responsibility for payment should be assumed by others except as may
otherwise be provided by policy provisions.
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E. Insurers shall not continue or delay negotiations for
settlement of a claim directly with a claimant who is neither an
attorney nor represented by an attorney, for a length of time which
causes the claimant’s rights to be affected by a statute of
limitations, or a policy or contract time limit, without giving the
claimant written notice that the time limit is expiring and may
affect the claimant’s rights. Such notice shall be given to first
party first-party claimants and third party third-party claimants
one (1) year after the date of the loss.
F. No insurer shall make statements which indicate that the
rights of a third party third-party claimant may be impaired if a
form or release is not completed within a given period of time
unless the statement is given for the purpose of notifying a third
party third-party claimant of the provision of a statute of
limitations.
G. If a lawsuit on the claim is initiated, the time limits
provided for in this section shall not apply.
H. If an insurer denies a homeowner’s claim, in whole or in
part, based solely on the use of video recordings or photographs of
the loss using aerial imaging including, but not limited to, drones,
driverless vehicles, or other machines that can move independently
or through remote control, the insurer shall establish a process
allowing the insured to appeal such denial within thirty (30) days
of the insured’s receipt of the insurer’s full and final
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determination on the claim. The insurer’s evaluation of an appeal
pursuant to this subsection shall include an in-person inspection of
the loss. A determination on the appeal shall be completed, and the
insured shall be notified within thirty (30) days of the request of
the appeal.
SECTION 17. AMENDATORY 36 O.S. 2021, Section 1250.14, is
amended to read as follows:
Section 1250.14. A. For any violation of the Unfair Claims
Settlement Practices Act, the Insurance Commissioner may, after
notice and hearing, subject an insurer to a civil penalty of not
less than One Hundred Dollars ($100.00) nor more than Five Thousand
Dollars ($5,000.00) Ten Thousand Dollars ($10,000.00) for each
occurrence. In addition to or in lieu of any fine, the Commissioner
may suspend, refuse to renew, put on probation, or revoke an
insurer’s certificate of authority, license, or any other
registration or similar approval that has been issued by the
Commissioner to conduct business in this state. Such civil penalty
may be enforced in the same manner in which civil judgments may be
enforced.
B. The Commissioner may direct the person or organization
against whom the order was issued to make complete restitution, in
the form, manner, and amount within a time period prescribed by the
Commissioner, to all residents or insured persons of this state or
entities operating in this state damaged by the violation or failure
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to comply with the provisions of any statute, rule, bulletin, or
order for which the Commissioner has jurisdiction.
SECTION 18. AMENDATORY 36 O.S. 2021, Section 3629, is
amended to read as follows:
Section 3629. A. An insurer shall furnish, upon written
request of any insured claiming to have a loss under an insurance
contract issued by such insurer, forms of proof of loss for
completion by such person, but such insurer shall not, by reason of
the requirement so to furnish forms, have any responsibility for or
with reference to the completion of such proof or the manner of any
such completion or attempted completion.
B. It shall be the duty of the insurer, receiving a proof of
loss, to submit a written offer of settlement or rejection of the
claim to the insured within sixty (60) days of receipt of that proof
of loss. Upon a judgment rendered to either party, costs and
attorney fees shall be allowable to the prevailing party. For
purposes of this section, the prevailing party is the insurer in
those cases where judgment does not exceed written offer of
settlement. In all other judgments the insured shall be the
prevailing party. If the insured is the prevailing party, the court
in rendering judgment shall add interest on the verdict at the rate
of fifteen percent (15%) per year from the date the loss was payable
pursuant to the provisions of the contract to the date of the
verdict; provided, such interest rate shall not apply to property
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insurance, as defined in Section 704 of this title. This provision
shall not apply to uninsured motorist coverage.
SECTION 19. AMENDATORY 36 O.S. 2021, Section 3639.1, is
amended to read as follows:
Section 3639.1. A. For the purpose of this section,
“authorized inspector” means an inspector who is approved by the
insurer and who is:
1. An adjuster as defined in Section 6202 of this title;
2. A home inspector as defined in Section 858-622 of Title 59
of the Oklahoma Statutes;
3. A building code inspector certified under Section 1000.23 of
Title 59 of the Oklahoma Statutes;
4. A registered roofing contractor pursuant to Section 1151.3
of Title 59 of the Oklahoma Statutes;
5. A professional engineer licensed under Section 475.12a of
Title 59 of the Oklahoma Statutes; or
6. A professional architect licensed under Section 46.8a of
Title 59 of the Oklahoma Statutes.
B. No insurer shall cancel, refuse to renew, terminate, or
increase the premium of a homeowner’s insurance policy or any other
personal residential insurance coverage including, which but not
limited to, flood insurance:
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1. Which has been in effect more than forty-five (45) days,
solely because the insured filed a first claim against the policy or
submitted any number of inquiries on the policy;
2. Because of a claim that occurred more than five (5) years
before the effective date of the policy or renewal; or
3. Based on the claims history of an insured for weather-
related claims, unless there were three or more weather-related
claims within the preceding three-year period. This paragraph shall
not apply to claims for weather-related events for which the insurer
provided written notice to the insured for reasonable or customary
repairs or replacement specific to the insured’s premises or
dwelling that the insured failed to make and that, if made, would
have prevented the loss for which a claim was made.
C. No insurer shall refuse to underwrite risk for a homeowner’s
insurance policy or any other personal residential insurance
coverage including, but not limited to, flood insurance, because of
a claim that occurred more than five (5) years before the date of
application.
D. The provisions of this section shall not be construed to
prevent the cancellation, nonrenewal, or increase in premium of a
homeowner’s insurance policy for the following reasons:
1. Nonpayment of premium;
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2. Discovery of fraud or material misrepresentation in the
procurement of the insurance or with respect to any claims submitted
thereunder;
3. Discovery of willful or reckless acts or omissions on the
part of the named insured which increase any hazard insured against;
4. A change in the risk which substantially increases any
hazard insured against after insurance coverage has been issued or
renewed;
5. Violation of any local fire, health, safety, building, or
construction regulation or ordinance with respect to any insured
property or the occupancy thereof which substantially increases any
hazard insured against;
6. A determination by the Insurance Commissioner that the
continuation of the policy would place the insurer in violation of
the insurance laws of this state; or
7. Conviction of the named insured of a crime having as one of
its necessary elements an act increasing any hazard insured against.
B. E. An insurer shall give to the named insured at the mailing
address shown on a homeowner’s policy, a written renewal notice that
shall include new premium, new deductible, new limits, or coverage
at least thirty (30) days prior to the expiration date of the
policy. If the insurer fails to provide such notice, the premium,
deductible, limits, and coverage provided to the named insurer
insured prior to the change shall remain in effect until notice is
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given or until the effective date of replacement coverage obtained
by the named insured, whichever occurs first. If notice is given by
mail, the notice shall be deemed to have been given on the day the
notice is mailed. If the insured elects not to renew, any earned
premium for the period of extension of the terminated policy shall
be calculated pro rata at the lower of the current or previous
year’s rate. If the insured accepts the renewal, the premium
increase, if any, and other changes shall be effective the day
following the prior policy’s expiration or anniversary date.
C. F. In the event an insured cancels a homeowner’s insurance
policy or any other personal residential insurance coverage, written
notice shall be provided by the insured to the insurer that provided
the coverage being canceled. The notice of cancellation shall
provide the date of the cancellation of the policy and the insurer
shall reimburse the insured for any premiums paid for coverage
beyond the date of cancellation of the policy.
D. G. An insurer canceling a policy under subsection C F of
this section shall not be liable for claims arising after the date
of cancellation.
H. If an insurer denies a homeowner’s claim, in whole or in
part, based solely on the use of video recordings or photographs of
the loss using aerial imaging including, but not limited to, drones,
driverless vehicles, or other machines that can move independently
or through remote control, the insurer shall establish a process
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allowing the insured to appeal such denial within thirty (30) days
of the insured’s receipt of the insurer’s full and final
determination on the claim. The insurer’s evaluation of an appeal
pursuant to this subsection shall include an in-person inspection of
the loss. A determination on the appeal shall be completed, and the
insured shall be notified within thirty (30) days of the request of
the appeal.
I. An insurer shall not reduce coverage, refuse to issue, or
refuse to renew a homeowner’s policy insuring a residential
structure with a roof that is less than fifteen (15) years old
solely because of the age of the roof. For a roof that is fifteen
(15) years of age or older, an insurer shall allow a homeowner to
have a roof inspection performed by an authorized inspector at the
homeowner’s expense before requiring the replacement of the roof of
a residential structure as a condition of issuing or renewing a
homeowner’s insurance policy. The insurer shall not refuse to issue
or renew a homeowner’s insurance policy solely because of roof age
if an inspection of the roof of the residential structure performed
by an authorized inspector indicates that the roof has five (5)
years or more of useful life remaining.
J. For the purposes of this section, a roof’s age shall be
calculated using the last date on which one hundred percent (100%)
of the roof’s surface area was built or replaced in accordance with
the building code in effect at the time of the initial date of
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partial roof replacement with subsequent partial roof builds or
replacements that result in one hundred percent (100%) of the roof’s
surface area being built or replaced.
SECTION 20. This act shall become effective November 1, 2026.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND INSURANCE
March 5, 2026 - DO PASS AS AMENDED BY CS