BULLETIN NO. 2024-08

The purpose of this bulletin is to inform all persons and organizations subject to the jurisdiction of the Insurance Commissioner of the legislative changes for 2024. Disclaimer:  The following overview does not include every legislative change made in 2024.  Please refer to the Oklahoma Supreme Court Network (OSCN) webpage to view all changes.

Legislative Changes effective November 1, 2024

SB 542

36 O.S. § 109(C).

Current Contact Information Required – All persons and organizations subject to the jurisdiction of the Commissioner shall keep any contact information deemed necessary by the Commissioner on file with the Insurance Department. Contact information shall be kept current and be submitted electronically in the manner and form prescribed by the Commissioner, along with any applicable fees. Any change in contact information shall be submitted within twenty (20) days of the change.

Disclaimer: This legislative change does not supersede any other applicable provision of the insurance code. In the event of a conflict between the provisions of 36 O.S. §109(C) and any other section of the insurance code, the latter shall control.

36 O.S. § 607(E).

Current Contact Information Required – Insurers under the jurisdiction of the Insurance Commissioner shall keep any contact information deemed necessary by the Commissioner on file with the Insurance Department. Contact information shall be kept current and submitted electronically in the manner and form prescribed by the Commissioner, along with any applicable fees. Any change in contact information shall be submitted within twenty (20) days of the change. Instructions on how to change company contact information can be found here:

https://www.oid.ok.gov/wp-content/uploads/2021/07/Company-Contact-Changes_2021.pdf

Legislative Changes effective November 1, 2024

HB 3091

36 O.S. § 1106.1(A).

Due Diligence search is not required unless – A surplus lines licensee or broker is not required to make a due diligence search to determine whether the full amount or type of insurance can be obtained from admitted insurers when the surplus lines licensee or broker is seeking to procure or place non-admitted insurance for an exempt commercial purchaser, unless the licensee or broker procuring or placing the surplus lines insurance has disclosed to the exempt commercial purchaser that such insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight.

HB 1505

36 O.S. § 123.

Delivery and storage of electronic documents – An insurer may elect to post a policy or endorsement that does not contain personally identifiable information on its website provided it complies with the requirements set forth in 36 O.S. § 123(L).  After expiration of the policy or endorsement, the insurer must archive it in accordance with the Oklahoma Insurance Department’s record retention requirements.  For property and casualty policies, the insurer must archive the policy or endorsement for a period of five (5) years after expiration.  For life and health policies, the insurer must archive the policy or endorsement for a period of ten (10) years after expiration.

Questions applicable to this bulletin should be directed to:

The Oklahoma Insurance Department’s Legal Division at 405-522-4805 or by email to bo.debose@oid.ok.gov.

BULLETIN NO. 2024-07

The purpose of this bulletin is to inform all persons and organizations subject to the jurisdiction of the Insurance Commissioner of the rule changes for 2024. Disclaimer:  The following overview does not include every change made to the rules in 2024.  Please refer to the Oklahoma Secretary of State Administrative Rules (SOS) webpage to view all changes.

Rule change effective August 11, 2024

OAC 365: 10-1-18 Annual provider directory audit report

(a) Reports of inaccurate information. Each health benefit plan, as defined in 36 O.S. § 6060.4, shall offer the general public a clearly identifiable and easily accessible way in accordance with 36 O.S. § 6971 to report inaccurate information in the plan’s provider directory. No later than two (2) days after receipt of a report of inaccurate information, the plan shall investigate and either verify or update the information.

(b) Audits and sample size. Each health benefit plan shall, at least annually, audit its provider directories for accuracy in accordance with 36 O.S. § 6971. Each plan that chooses to audit based on a reasonable sample size of providers shall include in the audit report filed with the Insurance Department the sample size amount and an explanation of the methodology used to determine that the sample size is statistically valid.

(c) Annual provider directory audit report.

(1) By March 1, 2025, and by every March 1st thereafter, each insurer of a health benefit plan shall file with the Insurance Department an Annual Provider Directory Audit Report for the preceding calendar year. This Report shall be filed electronically in the manner and form designated by the Insurance Commissioner and in accordance with any instructions posted on the Insurance Department website.

(2) The report shall include at least the following information:

(A) The number of reports of inaccurate information received by each health benefit plan;

(B) The date each report was received;

(C) The date each report was investigated;

(D) The corrective action(s) taken or, if no action is taken, an explanation as to why;

(E) All auditing reports conducted by each plan; and

(F) Any other information the Insurance Commissioner deems necessary.

The Annual Provider Directory Audit Report form can be found on the Oklahoma Insurance Department website at: https://www.oid.ok.gov/regulated-entities/financial/market-conduct-regulation/. The Annual Provider Directory Audit Report must be filed by emailing the completed form to OIDRegulatoryReporting@oid.ok.gov.

Rule Change effective August 11, 2024

OAC 365: 15-1-26 Motor vehicle repairs

(a) “Core Based Statistical Area” or “CBSA” means the geographic area designated by the U.S. Office of Management and Budget based on the most recent census data.

(b) “Repair facility” means a motor vehicle repair or motor vehicle glass repair or replacement facility, whichever is applicable.

(c) To establish a competitive price for motor vehicle repairs in accordance with 36 O.S. § 1250.8(H), an insurer shall conduct a market survey of the prices charged for repairs performed in accordance with manufacturing standards by repair facilities within the CBSA the facility performing the repairs is located within or is nearest to. A competitive price shall be an amount equal to or greater than the mean of all of the prices provided to the insurer by repair facilities within the CBSA that are capable of making the repairs in accordance with the applicable manufacturing standards.

(d) Insurers may use automobile collision repair estimating software to establish competitive prices if the software complies with the requirements set forth in 36 O.S. § 1250.8 and this rule.

(e) Market Surveys shall be updated sufficiently to reflect current market conditions.

(f) Upon request by the Department, insurers shall provide copies of the market surveys and all related documentation to the Department within twenty (20) days.

(g) Insurers and their representatives shall not make false or misleading statements about market surveys or competitive prices for motor vehicle repairs to repair facilities, policyholders, or members of the public.

Property and Casualty carriers, along with Surplus Lines carriers writing personal or commercial passenger auto policies in the State of Oklahoma shall file a “Market Survey Attestation” by December 31, 2024. The Market Survey Attestation can be found on the Oklahoma Insurance Department website at: https://www.oid.ok.gov/regulated-entities/rate-and-form-filing/rate-and-form-filing-forms/. The Market Survey Attestation must be filed through the Systems for Electronic Rates and Forms Filing (“SERFF”). https://www.serff.com/

Questions applicable to this bulletin should be directed to:

The the Oklahoma Insurance Department’s Legal Division at 405-522-4805 or by email to bo.debose@oid.ok.gov.

BULLETIN NO. 2024-04

The purpose of this bulletin is to inform all Prepaid Vision Plan Organizations subject to the jurisdiction of the Insurance Commissioner of the legislative changes related to the licensing requirements encompassed in House Bill 1979. Disclaimer: The following overview does not include every legislative change made pursuant to HB 1979.  Please view all changes on the Oklahoma Supreme Court Network (OSCN) webpage.

House Bill 1979 was enacted on May 30, 2024, and is codified at 36 O.S. §§  6972 – 6985.

On or before February 1, 2025, every prepaid vision plan organization operating in the state of Oklahoma shall submit an application for a certificate of authority to the Insurance Commissioner.  Each applicant may continue operating as an organization until the Commissioner approves the application. An application for a certificate of authority to operate as a prepaid vision plan organization shall be electronically filed, along with any transaction or other applicable fees, through OPTins. Information regarding registration to OPTins can be found at https://content.naic.org/industry/optins.

The application for a certificate of authority shall be accompanied by:

1. A copy of any documents of the organization of the applicant, such as the articles of incorporation, articles of association, partnership agreement, trust agreement, or other applicable documents, with all amendments to the documents;
2. A copy of any bylaws, rules, regulations, or similar documents regulating the conduct of the internal affairs of the applicant;
3. A list of the names, addresses, and official positions of the persons who are responsible for the conduct of the business affairs of the applicant, including all members of the board of directors, board of trustees, executive committee, or other governing board or committee, and the principal officers, in the case of a corporation, or the partners or members in the case of a partnership or association;
4. A copy of the form of any contract made or to be made between any providers of vision services or persons listed in paragraph 3 and the applicant;
5. A statement generally describing the prepaid vision plan organization, the facilities, personnel of the organization, and prepaid vision plans offered by the organization;
6. A copy of the form of individual or group coverage or a copy of any form of evidence of coverage to be issued to enrollees;
7. Financial statements showing assets, liabilities, and sources of financial support of the applicant. If the financial affairs of the applicant are audited by independent certified public accountants, a copy of the most recent regular certified financial statement for the applicant shall satisfy the requirement of this paragraph unless the Commissioner determines that additional or more recent financial information is required;
8. A description of the proposed method of marketing the prepaid vision plan, a financial prospectus that includes a three-year projection of the initial operating results anticipated, and a statement as to the sources of working capital available for the operation of the prepaid vision plan and any other source of funding;
9. A power of attorney, duly executed by the applicant if not domiciled in this state, appointing the Commissioner as the true and lawful representative for service of process for the applicant in this state upon whom all lawful process in any legal action or proceeding against the prepaid vision plan organization on a cause of action arising in this state may be served; and
10. A fee of One Hundred Dollars ($100.00) for issuance of a certificate of authority;

The initial application for a certificate of authority will be subject to the following additional fees pursuant to 36 O.S. § 321:

1. Issuance of a Certificate of Authority: Fifty Dollars ($50.00);[1]
2. Filing appointment of Insurance Commissioner as agent for service of process: Ten Dollars ($10.00);
3. Pending Company Review: One Thousand Dollars ($1,000.00).

Any modifications of information previously furnished during the application shall be filed within ten (10) days following any such modification.

A filing of a fidelity bond that is in its own name on its officers and employees in the amount of not less than Fifty Thousand Dollars ($50,000.00) is required.

Every enrollee of a prepaid vision plan shall be issued a coverage policy by the prepaid vision plan organization.  No policy for coverage or amendment to the policy shall be issued or delivered to any person in this state until a copy of the policy for coverage or amendment to the policy has been filed with and approved by the Insurance Commissioner.

No advertising or sales material relating to prepaid vision plan organization shall be issued or delivered to any person in this state until a copy of the material has been filed with and approved by the Insurance Commissioner.

All required policy forms and advertising materials shall be electronically filed through the SERFF portal at www.SERFF.com.

On or before March 1 of each calendar year, every prepaid vision plan organization offering coverage in this state shall file with the Insurance Commissioner a report of the business activities

of the organization for the preceding calendar year. The report shall contain a notarized signature of at least two principal officers of the corporation or members of the entity.

The report submitted shall be in the form and manner as prescribed in the NAIC Annual Statement Filings and shall include:

1. A financial statement of the organization, including a copy of the balance sheet, receipts, and disbursements of the organization for the subject year, certified by an independent certified public accountant. The Commissioner may accept a full report of the most recent examination of a foreign prepaid vision plan, certified by the appropriate examining official of another state;
2. Any material changes in the information required to be provided as stated above, and pursuant to 36 O.S. 6977(D);
3. The number of persons who have enrolled in plans offered by the organization during the preceding year, the total number of enrollees of each plan as of the end of the year, and the number of enrollments terminated during the year;
4. The costs of all care provided and the number of enrollees who received care pursuant to the provisions of the prepaid vision plan and
5. Any other information relating to the performance of the prepaid vision plan organization deemed necessary by the Commissioner.

The NAIC report template and information regarding registration with the NAIC can be found at https://content.naic.org/industry_financial_filing.htm

A certificate of authority shall expire at midnight on June 30 following the date of issuance or the most recent renewal date and annually on June 30 thereafter. The certificate of authority may be renewed if the prepaid vision plan organization remains in statutory compliance and pays a renewal fee of One Hundred Dollars ($100.00), in addition to any other applicable fees as notated in 36 O.S. § 321[2].  Annual fees shall be paid through OPTins. Information regarding registration to OPTins can be found at https://content.naic.org/industry/optins.

For implementation purposes of HB 1979, circumstances may arise in which a prepaid vision plan must submit forms or advertising materials to other state agencies prior to licensure with the OID to meet other statutory deadlines. Such circumstances will be handled on a case-by-case basis; however, notice must be given to the OID.

While this Bulletin is limited to the licensure requirements of prepaid vision plans, which do not apply to fully insured plans, there are statutory provisions of HB 1979 that fully insured plans should review and comply with.