Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 1438 By: Kirt
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6 AS INTRODUCED
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7 An Act relating to insurance; defining terms;
7 requiring certain insurers to file certain
8 information annually with the Insurance Commissioner;
8 establishing certain requirements to determine
9 excessive profit; requiring certain insurers to file
9 certain loss and loss adjustment data; establishing
10 certain computation for certain underwriting gain or
10 loss; requiring certain comparison of certain gain or
11 loss with certain profit; requiring certain return of
11 certain excessive amounts; providing certain
12 requirements for certain returns; requiring certain
12 refunds to be treated as certain dividend;
13 authorizing promulgation by Commissioner of certain
13 rules; providing for codification; and providing an
14 effective date.
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17 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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18 SECTION 1. NEW LAW A new section of law to be codified
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19 in the Oklahoma Statutes as Section 1018 of Title 36, unless there
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20 is created a duplication in numbering, reads as follows:
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21 A. As used in this section:
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22 1. "Anticipated underwriting profit" means the sum of the
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23 dollar amounts obtained by multiplying, for each rate filing of the
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24 insurer group in effect in a three-year period, the earned premiums
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1 applicable to such rate filings by the percentage factor, determined
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2 with due recognition to investment income from funds generated by
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3 business in this state, included in such rate filings for profit and
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4 contingencies;
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5 2. "Final compilation year" means the final year in which data
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6 is reported in a three-year reporting period; and
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7 3. "Insurer" means any insurance business licensed in this
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8 state that is written on a family automobile policy, standard
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9 automobile policy, personal automobile policy, or other similar
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10 private passenger automobile policy written for personal use.
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11 Insurer shall not include a commercial automobile insurance
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12 business.
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13 B. All insurers in this state shall file annually, prior to
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14 July 1, the following information with the Insurance Commissioner.
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15 All information shall be a consolidation of the data of the
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16 individual insurers of the group. Such information shall include:
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17 1. Calendar-year total limits earned premium;
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18 2. Accident-year incurred losses and loss adjustment expenses;
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19 3. The administrative and selling expenses incurred in this
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20 state or allocated to this state for the calendar year; and
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21 4. Policyholder dividends incurred during the applicable
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22 calendar year.
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23 C. An insurer shall be deemed to have excessive profit if there
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24 has been an underwriting gain for the three (3) most recent calendar
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Req. No. 2754 Page 2
1 years combined that is greater than the anticipated underwriting
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2 profit plus five percent (5%) of earned premiums for those calendar
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3 years.
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4 D. Each insurer shall file a schedule of loss and loss
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5 adjustment experience for the three (3) previous accident years.
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6 Any incurred losses and loss adjustment expenses shall be valued as
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7 of March 31 of the year following the close of the accident year,
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8 developed to an ultimate basis, and at two-month intervals after
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9 such close of an accident year such that three evaluations shall be
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10 provided in each accident year.
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11 E. Each insurer group's underwriting gain or loss for each
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12 accident year shall be computed by taking the sum of the accident
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13 year incurred losses and loss adjustment expenses as of March 31 of
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14 the following year, plus the administrative and selling expenses
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15 incurred in the calendar year, plus policyholder dividends
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16 applicable to the calendar year, subtracted from the accident year
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17 earned premium.
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18 F. For the three (3) most recent calendar-accident years, the
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19 underwriting gain or loss shall be compared to the anticipated
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20 underwriting profit.
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21 G. 1. If the insurer group is deemed to have excessive profit,
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22 the Commissioner shall order a return of the excessive amounts after
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23 affording the insurer group an opportunity for hearing. Any
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24 excessive amounts shall be refunded unless the insurer group
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Req. No. 2754 Page 3
1 affirmatively demonstrates to the Commissioner that the refund of
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2 such excessive amounts will render a member of the insurer group
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3 financially impaired or insolvent.
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4 2. Such excessive amounts shall be refunded on a pro rata basis
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5 in relation to the final compilation year earned premiums to all
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6 policyholders on record of the insurer on December 31 of the final
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7 compilation year. Any such refund shall be returned to
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8 policyholders in the form of a cash refund or a credit toward the
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9 future purchase of insurance.
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10 3. A cash refund shall be completed within sixty (60) days of
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11 entry of a final order indicating that the insurer has been deemed
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12 to have excessive profits. A credit refund shall be applied to
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13 policy renewal premium notices that are forwarded to the
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14 policyholders more than sixty (60) days after entry of such final
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15 order. If an insurer has elected to utilize credit refunds, and a
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16 policyholder cancels his or her policy or otherwise allows the
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17 policy to terminate, the insurer shall make a cash refund no later
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18 than sixty (60) days after termination of such coverage. Upon
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19 completion of such refunds, the insurer shall immediately notify the
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20 Commissioner.
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21 4. Any refund made pursuant to this subsection shall be treated
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22 as a policyholder dividend applicable to the year in which it is
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23 incurred for the purposes of reporting pursuant to this section.
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1 H. The Commissioner shall be authorized to promulgate any rules
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2 necessary to implement the provisions of this section.
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3 SECTION 2. This act shall become effective November 1, 2026.
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Req. No. 2754 Page 5Every fact on this page links to its source, starting with the official bill record.