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1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 1444 By: Kirt
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6 AS INTRODUCED
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7 An Act relating to insurance; amending 36 O.S. 2021,
7 Sections 985, 987, 989, 994, and 995, as amended by
8 Section 1, Chapter 304, O.S.L. 2022 (36 O.S. Supp.
8 2025, Section 995), which relate to ratemaking
9 standards, rate filings, improper rates, and the
9 Property and Casualty Competitive Loss Cost Rating
10 Act; allowing certain rates to be determined to be
10 excessive; allowing certain rates to be considered
11 based on certain criteria; requiring every insurer to
11 file with the Insurance Commissioner all rates and
12 supplementary rate information within a certain time
12 period prior to the effective date of the rate;
13 allowing Commissioner to give written notice to
13 certain insurer within a certain time period for
14 additional time; updating statutory reference;
14 requiring Commissioner to disapprove certain rates;
15 allowing Commissioner to hold certain hearing for
15 certain rate disapproval; increasing certain time
16 frame for certain advisory organization to file
16 certain information; updating statutory language; and
17 providing an effective date.
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19 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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20 SECTION 1. AMENDATORY 36 O.S. 2021, Section 985, is
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21 amended to read as follows:
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22 Section 985. Ratemaking Standards.
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23 A. A rate may not be excessive, inadequate or unfairly
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24 discriminatory.
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Req. No. 2755 Page 1
1 1. No rate in a competitive market may be determined to be
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2 excessive. A rate in a noncompetitive market may be determined to
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3 be excessive if it is likely to produce a profit that is
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4 unreasonably high for the insurance provided or is unreasonably high
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5 in relation to the services rendered.
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6 2. A rate may not be determined to be inadequate unless:
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7 a. the rate is clearly insufficient to sustain projected
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8 losses, expenses and special assessments, and
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9 b. the rate is unreasonably low and use of the rate by
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10 the insurer has tended or, if continued, will tend to
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11 create a monopoly in the market.
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12 3. Unfair discrimination may be determined to exist if, after
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13 allowing for practical limitations, price differentials fail to
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14 reflect equitably the differences in expected losses and expenses.
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15 A rate may not be determined to be unfairly discriminatory because
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16 different premiums result for policyholders with like loss exposures
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17 but different expense levels, or like expenses but different loss
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18 exposures, or if it averaged broadly among persons insured within a
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19 group, franchise or blanket policy or a mass-marketed plan. No rate
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20 in a competitive market shall be considered unfairly discriminatory
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21 unless it classifies risk on the basis of race, color, creed, or
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22 national origin, or religion.
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1 B. In determining whether rates in a noncompetitive market are
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2 excessive, inadequate, or unfairly discriminatory, due consideration
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3 may be given to:
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4 1. Past and prospective loss experience within and outside this
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5 state, in accordance with accepted actuarial principles;
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6 2. Conflagration and catastrophe hazards;
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7 3. A reasonable margin for underwriting profit and
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8 contingencies;
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9 4. Loadings for leveling premium rates over time for dividends,
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10 savings or unabsorbed premium deposits allowed or returned by
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11 insurers to their policyholders, members or subscribers;
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12 5. Past and prospective expenses both countrywide and those
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13 specially applicable to this state; and
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14 6. Provisions for special assessments; and to all other
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15 relevant factors including judgment within and outside this state.
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16 C. Risks may be grouped by classifications for the
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17 establishment of rates and minimum premiums. Classification rates
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18 may be modified to produce rates for individual risks in accordance
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19 with rating plans which establish standards for measuring variations
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20 in hazards or expense provisions, or both. Such standards may
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21 measure any differences among risks that can be demonstrated to have
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22 a probable effect upon losses or expenses. No risk classification,
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23 however, may be based on race, creed, national origin, or the
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24 religion of the insured.
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1 D. The expense provisions included in the rates for use by an
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2 insurer or group of insurers may differ from those of any other
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3 insurer or group of insurers to reflect the requirements of the
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4 operating methods of the insurer or group of insurers.
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5 E. The rates may contain provision for contingencies and an
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6 allowance permitting a reasonable profit. In determining the
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7 reasonableness of the profit, consideration shall be given to the
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8 investment income attributable to the line of insurance.
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9 F. Risks may be classified in any way except that no risk may
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10 be classified on the basis of race, color, creed, or national
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11 origin, or religion.
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12 SECTION 2. AMENDATORY 36 O.S. 2021, Section 987, is
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13 amended to read as follows:
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14 Section 987. Rate Filings.
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15 A. In a competitive market, every Every insurer shall file with
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16 the Insurance Commissioner all rates and supplementary rate
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17 information to be used in this state no later than thirty (30) days
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18 after at least sixty (60) calendar days prior to the effective date;
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19 provided, that the rates and supplementary rate information need not
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20 be filed for commercial risks, which by general custom are not
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21 written according to manual rules or rating plans.
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22 B. In a noncompetitive market, every insurer shall file with
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23 the Commissioner all rates, supplementary rate information and
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24 supporting information at least thirty (30) days before the proposed
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1 effective date. The Commissioner may give written notice, within
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2 thirty (30) sixty (60) days of receipt of the filing, that the
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3 Commissioner needs additional time, not to exceed thirty (30) sixty
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4 (60) days from the date of the notice to consider the filing. Upon
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5 written application of the insurer, the Commissioner may authorize
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6 rates to be effective before the expiration of the waiting period or
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7 an extension thereof. A filing shall be deemed to meet the
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8 requirements of the Property and Casualty Competitive Loss Cost
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9 Rating Act and to become effective unless disapproved pursuant to
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10 this title by the Commissioner before the expiration of the waiting
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11 period or an extension thereof.
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12 In a noncompetitive market, the filing shall be deemed in
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13 compliance with the filing provision of this section unless the
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14 Commissioner informs the insurer within ten (10) days after receipt
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15 of the filings as to what supplementary rate information or
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16 supporting information is required to complete the filing.
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17 C. B. Every authorized insurer shall file with the
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18 Commissioner, except as to rates for those lines of insurance
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19 exempted from the provisions of the Property and Casualty
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20 Competitive Loss Cost Rating Act by the Commissioner under
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21 subsections E D and F E of this section and except for those risks
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22 designated as special risks under Section 997 of this title, all
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23 rates, supplementary rate information and any changes and amendments
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24 which it proposes to use. An insurer may file its rates by either
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Req. No. 2755 Page 5
1 filing its final rates or by filing a multiplier and, if applicable,
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2 an expense constant adjustment to be applied to prospective loss
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3 costs that have been filed by an advisory organization as permitted
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4 by this title. Such loss cost multiplier filing and expense
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5 constant filings made by insurers shall remain in effect until
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6 amended or withdrawn by the insurer. Every filing shall state the
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7 effective date.
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8 D. C. Under rules as may be adopted, the Commissioner may, by
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9 written order, suspend or modify the requirement of filing as to any
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10 kind of insurance, subdivision or combination thereof, or as to
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11 classes of risks.
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12 E. D. Notwithstanding any other provision of the Property and
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13 Casualty Competitive Loss Cost Rating Act, upon the written consent
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14 of the insured in a separate written document, a rate in excess of
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15 that determined in accordance with the other provisions of the
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16 Property and Casualty Competitive Loss Cost Rating Act may be used
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17 on a specific risk.
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18 F. E. A filing and any supporting information required to be
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19 filed shall be open to public inspection once the filing becomes
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20 effective except information marked confidential, trade secret, or
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21 proprietary by the insurer or filer and except the filings of an
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22 advisory organization which shall be open to public inspection upon
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23 the received date of the rate, loss cost, or manual rule change.
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24 The insurer or filer shall have the burden of asserting to the
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1 Commissioner that a filing and supporting information are
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2 confidential, upon the request of the Commissioner. The
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3 Commissioner may disapprove of the insurer's request for
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4 confidential filing status.
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5 SECTION 3. AMENDATORY 36 O.S. 2021, Section 989, is
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6 amended to read as follows:
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7 Section 989. Improper Rates; Disapproval; Hearing.
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8 A. Basis for disapproval.
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9 1. The Insurance Commissioner shall disapprove a rate in a
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10 competitive market only if the Commissioner finds, pursuant to
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11 subsection B of this section, that the rate is excessive,
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12 inadequate, or unfairly discriminatory pursuant to Section 985 of
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13 this title.
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14 2. The Commissioner may disapprove a rate for use in a
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15 noncompetitive market only if the Commissioner finds, pursuant to
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16 subsection B of this section, that the rate is excessive, inadequate
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17 or unfairly discriminatory under this subsection.
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18 B. Procedures for disapproval.
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19 1. Prior to the expiration of a waiting period or an extension
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20 thereof, made pursuant to subsection B of Section 987 of this title,
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21 the Commissioner may disapprove, by written order, rates filed
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22 pursuant to subsection B of Section 987 of this title with a
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23 hearing. The order shall specify in what respects the filing fails
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24 to meet the requirements of this act. Any insurer whose rates are
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1 disapproved pursuant to this section shall be given a hearing upon
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2 written request made within thirty (30) days of disapproval.
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3 2. If, at any time, the Commissioner finds that a rate
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4 applicable to insurance sold in a noncompetitive market does not
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5 comply with the standards set forth in Section 985 of this title,
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6 the Commissioner may, after a hearing held upon not less than twenty
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7 (20) days' written notice, issue an order pursuant to subsection C
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8 of this section, disapproving such rate. The hearing notice shall
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9 be sent to every insurer and advisory organization that adopted the
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10 rate and shall specify the matters to be considered at the hearing.
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11 The disapproval order shall not affect any contract or policy made
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12 or issued prior to the effective date set forth in the order.
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13 3. If, at any time, the Commissioner finds that a rate
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14 applicable to insurance sold in a competitive market is inadequate
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15 or unfairly discriminatory under paragraph 2 or 3 of subsection A of
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16 Section 985 of this title, the Commissioner may issue an order
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17 pursuant to subsection C of this section disapproving the rate. The
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18 order shall not affect any contract or policy made or issued prior
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19 to the effective date set forth in the order.
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20 C. Order of disapproval.
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21 If the Commissioner disapproves a rate pursuant to subsection B
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22 of this section, the Commissioner shall issue an order within thirty
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23 (30) days of the close of the hearing specifying in what respects
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24 the rate fails to meet the requirements of this act. The order
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1 shall state an effective date no sooner than thirty (30) business
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2 days after the date of the order when the use of the rate shall be
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3 discontinued. This order shall not affect any policy made before
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4 the effective date of the order.
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5 D. Appeal of orders and establishment of reserves.
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6 If an order of disapproval is appealed pursuant to Section 990
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7 of this title, the insurer may implement the disapproved rate upon
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8 notification to the court, in which case any excess of the
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9 disapproved rate over a rate previously in effect shall be placed in
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10 a reserve established by the insurer. The court shall have control
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11 over the disbursement of funds from such reserve. The funds shall
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12 be distributed as determined by the court in its final order except
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13 that de minimus refunds to policyholders shall not be required.
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14 E. D. All determinations made by the Commissioner under this
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15 section shall be on the basis of findings of fact and conclusions of
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16 law.
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17 SECTION 4. AMENDATORY 36 O.S. 2021, Section 994, is
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18 amended to read as follows:
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19 Section 994. Advisory Organizations; Filing Requirements.
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20 Every advisory organization shall file with the Insurance
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21 Commissioner for approval every statistical plan, all prospective
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22 loss costs, provisions for special assessments and all supplementary
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23 rating information and every change or amendment or modification of
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24 any of the foregoing proposed for use in this state at least thirty
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1 (30) sixty (60) days prior to its effective date. Such filings will
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2 be deemed approved unless disapproved within the waiting period.
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3 SECTION 5. AMENDATORY 36 O.S. 2021, Section 995, as
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4 amended by Section 1, Chapter 304, O.S.L. 2022 (36 O.S. Supp. 2025,
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5 Section 995), is amended to read as follows:
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6 Section 995. Joint Underwriting, Joint Reinsurance Pool and
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7 Residual Market Activities.
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8 A. Notwithstanding paragraph 3 of subsection A of Section 992
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9 of this title, insurers participating in joint underwriting, joint
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10 reinsurance pools or residual market mechanisms may in connection
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11 with such activity act in cooperation with each other in the making
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12 of rates, rating systems, policy forms, underwriting rules, surveys,
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13 inspections and investigations, the furnishing of loss and expense
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14 statistics or other information, or carrying on research. Joint
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15 underwriting, joint reinsurance pools and residual market mechanisms
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16 shall not be deemed an advisory organization.
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17 B. Except to the extent modified by this section, joint
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18 underwriting, joint reinsurance pool and residual market mechanism
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19 activities are subject to the other provisions of the Property and
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20 Casualty Competitive Loss Cost Rating Act.
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21 C. If, after a hearing, the Insurance Commissioner finds that
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22 any activity or practice of an insurer participating in joint
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23 underwriting or a pool is unfair, is unreasonable, will tend to
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24 lessen competition in any market or is otherwise inconsistent with
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1 the provisions or purposes of the Property and Casualty Competitive
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2 Loss Cost Rating Act, the Commissioner may shall issue a written
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3 order and require the discontinuance of such activity or practice.
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4 D. Every pool shall file with the Commissioner a copy of its
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5 constitution, articles of incorporation, agreement or association,
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6 bylaws, rules and regulations governing its activities, list of
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7 members, the name and address of a resident of this state upon whom
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8 notice, orders of the Commissioner, or process may be served, and
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9 any changes in amendments or changes in the foregoing.
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10 E. Any residual market mechanism, plan or agreement to
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11 implement such a mechanism, and any changes or amendments thereto,
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12 shall be submitted in writing to the Commissioner for consideration
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13 and approval, together with such information as may be reasonably
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14 required.
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15 SECTION 6. This act shall become effective November 1, 2026.
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Req. No. 2755 Page 11Every fact on this page links to its source, starting with the official bill record.