FOR IMMEDIATE RELEASE:
November 18, 2019

Oklahoma Leads the Country on Insurance Business Transfers

OKLAHOMA CITY – An international forum of insurance experts explained a new law that is expected to bring an economic boost to Oklahoma. The second Insurance Business Transfer (IBT) Forum was hosted by the Oklahoma Insurance Department (OID) in Tulsa on Tuesday, November 12, 2019. OID invited industry experts to explain how the law works, discuss the opportunities it can bring to the state, and promote how OID can help companies manage the IBT process.

“Oklahoma is leading the country on this innovative, new process,” Oklahoma Insurance Commissioner Glen Mulready said. “Oklahoma’s IBT law is the most expansive in the country, and I believe a conference like this will help make Oklahoma the hub for IBTs in the United States.”

Oklahoma’s IBT law became effective in November 2018 and Oklahoma became the first U.S. state to embrace IBTs under a structure that closely mimics “Part VII” transfers authorized under the UK Financial Services and Markets Act of 2000. IBTs create considerable flexibility and financial security for companies, help eliminate uncertainty, reduce administrative expenses, and simplify regulation. More importantly, an IBT can connect policyholders with a company that better understands their policy and the coverage it provides. The state’s IBT legislation applies to life, health, property and casualty liabilities, and is open to both run-off and active books of business.

“Oklahoma’s IBT law places us front and center in the global insurance marketplace,” OID’s First Deputy Commissioner and Chief of Staff Buddy Combs said. “I am proud of the work we do to ensure an efficient and transparent approval process. This will set precedent for other states and make our state the leader in insurance business transfers in the United States.” Combs also mentioned he has already received positive feedback from attendees.

“The IBT forum brought together many of the foremost experts on the IBT statutes and implications for the industry, policyholders, and regulators.” Kelly Superczynski, Head of Aon Reinsurance Solutions’ Capital Advisory team, said. “It was another great opportunity to educate stakeholders on the benefits of IBTs and discuss how this tool has been successfully utilized repeatedly in many jurisdictions around the world.”

“Last year’s IBT Forum was good, but this year was even better,” Keith Kaplan, Vice President of ProTucket Insurance Company, said. “I was honored to be included among the distinguished list of speakers. Having Rhode Island Department officials as panelists demonstrated the OID’s genuine interest in showcasing the latest information, thinking, and solutions to trending issues in the IBT space.” Rhode Island was among the first states to introduce comprehensive IBT legislation.

Although Oklahoma was not the first state to pass IBT legislation, Department officials expect Commissioner Mulready to be the first commissioner in the country to approve an IBT to proceed to district court. That approval could come as early as this week.

To see a list of the speakers from the event and their credentials, click here.

If you have questions about other insurance issues, contact the Oklahoma Insurance Department at 1-800-522-0071 or visit our website at www.oid.ok.gov.

For more information, contact:
Liz Heigle
405-819-2221
Liz.Heigle@oid.ok.gov

FOR IMMEDIATE RELEASE:
November 26, 2019

Commissioner Mulready Becomes the First Commissioner in the Country to Approve an IBT

OKLAHOMA CITY – On Tuesday, November 26, 2019, Oklahoma Insurance Commissioner Glen Mulready issued an order authorizing Providence Washington Insurance Company (PWIC), a Rhode Island-based insurance company, to submit its Insurance Business Transfer (IBT) Plan to the District Court of Oklahoma County for approval. This is the first IBT approved by an insurance commissioner in the United States.

If approved by the Court, the IBT would transfer nearly all of the insurance and reinsurance business underwritten by PWIC to Yosemite Insurance Company, an insurance company in Oklahoma. The transfer would include the liabilities associated with those policies as well as $38.5 million from PWIC to Yosemite as consideration for assuming those liabilities.

The application filed by PWIC and reviewed by the Commissioner and department staff includes the IBT Plan, extensive financial documents and a plan for how the transaction will be communicated to policyholders and other interested parties. It also includes a report from an independent expert who concluded that the policyholders and claimants of both companies will not have a materially adverse effect by the proposed transaction.

“This is a big accomplishment for us,” Commissioner Mulready said. “We expect the IBT to bring tremendous opportunities to Oklahoma—more jobs to the state, more options for consumers and a more competitive environment for insurers. ”

Oklahoma’s IBT law became effective in November 2018 and is the most expansive such law in the country. The Oklahoma process closely mirrors Part VII of the Financial Services & Markets Act of 2000 in the United Kingdom, which has resulted in nearly 300 successful transfers. This cutting edge mechanism focuses on the protection of consumers while allowing insurance companies to strategically deploy assets to their areas of focus.

If you have questions about other insurance issues, contact the Oklahoma Insurance Department at 1-800-522-0071 or visit our website at www.oid.ok.gov.

For more information, contact:
Liz Heigle
405-819-2221
Liz.Heigle@oid.ok.gov

For Immediate Release:
October 8, 2019

Insurance Commissioner Announces Chief of Staff and First Deputy Successor

OKLAHOMA CITY – Oklahoma Insurance Commissioner Glen Mulready has tapped his Deputy Commissioner of Licensing Services & Policy Counsel, Buddy Combs, to fill the upcoming Chief of Staff and First Deputy Commissioner vacancy. The current Chief of Staff and First Deputy Commissioner, Tyler Laughlin, has accepted a position in the private sector.

“Buddy Combs is a rising star in the insurance world with the talent to ensure consumers remain protected while promoting a vibrant insurance market. He’s a natural choice for this position because he is well-respected within the agency, in the insurance industry, at the state capitol, and by other state insurance regulators,” said Commissioner Mulready.  “Buddy understands our mission, and I look forward to a seamless leadership transition at the Insurance Department.”

A licensed attorney, Combs started with the Insurance Department in 2011, as Assistant General Counsel, and has continually advanced within the ranks of the agency. In addition to supervising the Department’s Licensing Services Division, he is the agency’s point person at the Oklahoma Legislature. He is a member of the Oklahoma Federalist Society, active in serving his church, and lives in Edmond with his wife and two daughters.

“I am honored to serve as the Chief of Staff and First Deputy for Commissioner Mulready. I have seen firsthand his dedication to promoting a free market and ensuring consumers have a voice. I’m committed to serving the people of this great state while working alongside Commissioner Mulready to make sure Oklahomans have robust insurance options,” said Combs.

Combs will move into his new role on October 16.

For more information, contact:

Liz Heigle
405-522-0683
Liz.Heigle@oid.ok.gov

For Immediate Release:
September 23, 2019

Lower Workers’ Comp Premiums for Oklahoma Employers

OKLAHOMA CITY – Commissioner Glen Mulready and the Oklahoma Insurance Department approved a 5.1% percent decrease in workers’ compensation insurance loss costs for 2020. This will mark the ninth annual experience filing with a decrease.

The new loss costs go into effect on January 1, 2020.  Loss costs are the average cost of lost wages and medical payments of workers injured during their employment.

Commissioner Mulready said, “The biggest driver in bringing down the loss costs portion of premiums, is what is actually paid out in claims, and the reduction in the number of claims  filed.”  The state’s lost time claim frequency continues to decrease under the new commissioner and is projected to continue its downward trend into 2020.

“This is excellent news for Oklahoma businesses,” Mulready said. “The decline in workers’ compensation rates will lower the cost of doing business in our state.  I will continue to work hard and help create a more business-friendly environment for all sectors.”

The National Council on Compensation Insurance (NCCI), a rating and advisory organization, collects annual data on workers compensation claims for the insurance industry. NCCI publishes loss costs that form the basis for all workers compensation premium determinations.  Oklahoma insurers use the NCCI loss costs as a base.

The new loss costs, recently approved, will go into effect for new and renewing policies effective January 1, 2020.

For more information, contact:

Liz Heigle
405-522-0683
Liz.Heigle@oid.ok.gov

For Immediate Release:
July 11, 2019

$5.1 Million Recovered for Oklahomans in 2019

OKLAHOMA CITY – In the first six months of 2019, the Oklahoma Insurance Department recovered double the amount of money for policyholders compared to all of last year. More than $5.1 million in claims disputes have been settled with the Department’s help.

“These recovery amounts make a real impact on peoples’ lives, and Oklahomans should expect their insurance companies to keep the promises made to them” Oklahoma Insurance Commissioner Glen Mulready said. “Today’s numbers show our Department’s continued commitment to protect insurance consumers.”

OID’s Consumer Assistance/Claims Division processes and assist consumers seeking help with their insurance companies. The division opened 3,061 files from January to June of this year. They’ve also answered 7,110 phone calls. The money recovered from January to June of this year totaled $5,129,962.81. Last year, the recovery amount for the entire year was $3,549,619.17.

Policyholders who have an issue with their claim can file a “Request for Assistance” for the following types of insurance: auto, home, commercial, life and health, service warranty, title or workers’ compensation. To learn more about the complaint process, go to oid.ok.gov or call the Consumer Assistance Division at 800-522-0071.

For more information, contact:
Liz Heigle
405-522-0683
Liz.Heigle@oid.ok.gov

For Immediate Release:
June 7, 2019

Commissioner Glen Mulready Files Amicus in
Federal Court to Support AHPs

OKLAHOMA CITY – Attorneys for the Oklahoma Insurance Department filed a brief with the U.S. Court of Appeals in support of giving Oklahomans more health insurance options. The amicus brief is in response to a U.S. Department of Labor rule that was overturned by a Circuit Court judge.

“This rule, coupled with Oklahoma’s new AHP bill, gives small business owners in our state the chance to find affordable health insurance choices for their employees and their employees’ families,” said Oklahoma Insurance Commissioner Glen Mulready. “We’ve worked diligently this year to get Oklahoma’s laws up to compliance with the Department of Labor’s rule. But now a judge has ruled that it can’t stand, and we’re not backing down on this for the sake of all the uninsured Oklahomans.”

The rule allows more employers to form Association Health Plans (AHPs). AHPs are group health plans that employer groups and associations offer to provide health coverage for their members’ employees. Under the rule, employers can form AHPs by location, industry or other commonalities. The new rule also allowed small business owners without other employees, including sole proprietors and their families, to join AHPs.

The amicus curiae brief, or amicus brief, is filed on behalf of someone who is not a party to a case but would like to offer information or expertise. Montana joined Oklahoma on this brief, and other states are likely to join before the end of the month. Nine other states have passed similar legislation to Oklahoma’s which would allow small businesses to take advantage of the Department of Labor rule.

“Other states are interested in joining us because we believe in state-based regulation,” Commissioner Mulready said. “We believe that less government intervention and a more relaxed rule allows businesses to provide more options to their employees. This rule, coupled with our new state law, allows for that.”

Multiple groups and associations have already filed amicus briefs on behalf of their organization. The appeals case, U.S. Department of Labor v. State of New York, does not have a date set for oral arguments yet.

For more information, contact:
Liz Heigle
405-819-2221
Liz.Heigle@oid.ok.gov