Posts by: Wyatt Stanford

HB3089 Passes Oklahoma House Floor: A Step Towards Lower Homeowners Insurance Rates

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Oklahoma Insurance Department

For Immediate Release:
March 12, 2024

HB3089 Passes Oklahoma House Floor: A Step Towards Lower Homeowners Insurance Rates

 

OKLAHOMA CITY – The Oklahoma House of Representatives has approved House Bill 3089, introduced by Rep. Mark Tedford, R-Tulsa, which aims to provide financial grants to construct or retrofit homes, making them more resilient against the destructive forces of tornadoes, windstorms and hail.

Under the proposed legislation, known as the Strengthen Oklahoma Homes Act, grants will be made available by the Oklahoma Insurance Department to residential property owners who meet specific eligibility criteria. These criteria include an owner-occupied, single-family primary residence. The grants are intended to help homeowners achieve safety standards outlined by the Insurance Institute for Business and Home Safety (IBHS).

Insurance Commissioner Glen Mulready applauds the Oklahoma House of Representatives for passing this measure highlighting its potential to assist Oklahomans in fortifying their homes against natural disasters.

“As Insurance Commissioner, I can’t control the weather, but I can certainly help Oklahomans fortify their homes,” said Mulready. “I am looking forward to seeing this bill becoming law and giving Oklahomans some relief when it comes to helping the consumer lower their homeowners rates.”

The Strengthen Oklahoma Homes Act will establish a grant program aimed at assisting homeowners in reinforcing their roofs with impact-resistant materials that meet FORTIFIED standards set by the IBHS. These funds will enable consumers to construct or retrofit their homes with impact-resistant shingles and other enhancements. Additionally, many insurance companies offer reduced premiums for homes with such modifications.

The bill overwhelmingly passed the House floor with a vote of 88-4 and is now set to be considered by the Senate, where it is sponsored by Sen. Dewayne Pemberton, R-Muskogee. If passed into law, the legislation will provide valuable support to Oklahoma homeowners in safeguarding their properties against severe weather conditions.

Questions regarding HB 3089, please contact Govt. & Community Affairs Director, Ashley Scott (405) 521-6616.
Media questions or comments should be directed to
Chief of Communications, Liz Heigle
Liz.Heigle@oid.ok.gov | (405) 819-2221

Special Notice to Medicare Supplement Carriers

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Oklahoma Insurance Department

Special Notice to Medicare Supplement Carriers

 

To: Medicare Supplement Carriers
Re: Amendment to Medicare Supplement Regulations
From: Glen Mulready, Insurance Commissioner
Date: February 27, 2024

 

Effective September 1, 2023, amendments to the Oklahoma Insurance Department (“OID”) Medicare supplement regulations create new enrollment requirements for Medicare supplement issuers.

OAC 365:10-5-129(f)

Amendments to Oklahoma Administrative Code (“OAC”) 365:10-5-129(f) create new enrollment opportunities for Medicare supplement policyholders. The regulation requires Medicare supplement issuers to provide new supplement policies with the same or lesser benefits to current Medicare supplement policyholders—regardless of current issuer—who have had no gap in coverage greater than ninety (90) days.  Medicare supplement issuers that provide these policyholders a sixty (60) calendar day “open enrollment” period beginning on the policyholder’s birthday each year, shall be deemed in compliance with this rule. Previously, these policyholders have had no opportunity, after initial enrollment (without going through medical underwriting) to move to any other Medicare supplement policies or issuers, trapping the policyholders in policies with rising premium costs and no opportunity to search for lower premium rates.

Issuers offering a new (i.e., succeeding) supplement policy shall waive medical underwriting and preexisting exclusions if the new supplement policy offers the same or lesser benefits. Issuers of the current (i.e., prior) policy are required to furnish a statement of benefits or other pertinent information sufficient to permit verification of benefit determination to any new issuer upon request. Issuers shall consider this process an “open enrollment,” not “guaranteed issue.”

OAC 365:10-5-129(g)

Amendments to OAC 365:10-5-129(g) require issuers of Medicare supplement policies to provide notice to individuals under the age of sixty-five (65) enrolled in Medicare by reason of disability of their eligibility for open enrollment to Medicare supplement policies upon reaching the age of sixty-five (65). Issuers must provide this notice sixty (60) to ninety (90) days prior to the first day of the first month in which the individual becomes sixty-five (65) years of age.

Questions related to this notice should be directed to Nicole Nash, Deputy General Counsel, at nicole.nash@oid.ok.gov and Mike Rhoads, Deputy Commissioner of Consumer Services, at mike.rhoads@oid.ok.gov.

BULLETIN NO. 2024-1

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Oklahoma Insurance Department

BULLETIN NO. 2024-1

To: Oklahoma Prepaid Funeral Benefit Permit Holders
Re: 2024 Maximum Amount of Principal Allowed For Non-Specified
Contracts
From: Glen Mulready, Insurance Commissioner
Date: February 16, 2024

 

The Regulated Industry Services Division of the Oklahoma Insurance Department registers and regulates Prepaid Funeral Benefits (PFB) permit holders, pursuant to the Prepaid Funeral Services and Funeral Service Merchandise Act (the “Act”), OKLA. STAT. tit. 36 §§ 6121, et seq.

The maximum amount of principal which an organization may legally receive from any one
individual non-specified contract establishing a fund for PFB, pursuant to the Act, OKLA. STAT. tit. 36 § 6125 (B)(2), is Twenty Thousand Dollars ($20,000.00). See, 36 O.S. § 6125.1 (A).

The Insurance Commissioner is authorized to increase this amount annually by the previous year’s increase in the national Consumer Price Index (“CPI”) on April 1st of each year. See, 36 O.S.§ 6125.1 (B).

Effective April 1, 2024, the Insurance Commissioner has determined the maximum amount of principal for any one individual non-specified PFB contract established under § 6125 (B)(2), based on the CPI for the year beginning April 1, 2024, and ending April 1, 2025, is Twenty-eight Thousand Six Hundred and Seventy Dollars ($28,670.00). 36 O.S. § 6125.1 (B).

Questions or concerns regarding this increase, as well as all other PFB related matters, may be emailed to RIS@oid.ok.gov.

Another Record Year for Oklahoma’s Captive Insurance Growth

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Oklahoma Insurance Department

For Immediate Release:
February 15, 2024

Another Record Year for Oklahoma’s Captive Insurance Growth

 

OKLAHOMA CITY – Oklahoma’s captive insurance program proudly announces yet another triumphant year of growth, marking 2023 as a milestone in its continuous success story. The Oklahoma Insurance Department (OID) reports a remarkable 31% net gain in licensed captive insurers for the year ending December 31, 2023.

During 2023, the OID issued 20 new licenses, with six dissolutions, resulting in a net gain of 14 new captive insurers. This significant achievement brings Oklahoma’s total captive insurers to 59, reinforcing the state’s position as a thriving hub for captive insurance activities.

The diverse landscape of licenses includes 34 pure captive insurers, one association captive insurer, 14 special purpose captive insurers, two sponsored captive insurers, four entity-protected (incorporated) cells, one protected cell, and three series captive insurers. Additionally, while not part of the licensing process, Oklahoma diligently tracks the federal tax election made by the captive insurers. Of the 59, 16 opted for the Internal Revenue Code section 831(b) election, while 43 chose the section 831(a).

In 2023, for the first time, the OID’s captive insurance program achieved finalist status for the Captive Review’s Captive Domicile of the Year in the category of gross written premiums less than $5 billion.

Commissioner Mulready said, “I commend the good work of Oklahoma’s captive team, Captive Insurance Director Steve Kinion and Captive Insurance Analyst Victor Gallardo. Steve is very experienced with captive insurance and highly respected in the industry. Victor represents the next generation of captive insurance leaders. They exemplify having a firm but fair approach to captive insurance regulation.”

With this resounding success, Oklahoma’s captive insurance program sets a high standard for innovation, efficiency, and regulatory excellence, promising a bright future ahead.

Media questions or comments should be directed to
Chief of Communications, Liz Heigle
Liz.Heigle@oid.ok.gov | (405) 819-2221

Earthquake Insurance: What You Need To Know

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Oklahoma Insurance Department

For Immediate Release:
February 15, 2024

Earthquake Insurance: What You Need To Know

By Oklahoma Insurance Commissioner Glen Mulready

 

The Oklahoma Insurance Department (OID) kicked off February with a post on X, formerly known as Twitter, announcing our Earthquake Awareness Month social media campaign. Ironically enough, a 5.1 magnitude quake struck near Prague, Oklahoma, about eight and a half hours later. I can assure you that OID cannot predict earthquakes, but this illustrates perfectly how earthquakes happen without warning and why you should always be prepared. This month, I want to provide helpful information to Oklahomans to help them determine their earthquake insurance needs.

What is earthquake insurance, and how does it work?

Earthquake insurance protects your home from earthquake-related damage. This coverage is an endorsement (amendment) to your existing homeowners policy or a separate, stand-alone policy. Contrary to what many consumers might think, a standard homeowners policy does not cover earthquake damage. Earthquake insurance works with your policy to offer more protection for your home.

What does earthquake insurance cover?

Earthquake insurance covers repairs needed because of earthquake damage to your home and may cover other structures not attached to your house, like a garage. Some policies may also cover your personal property against damage, the increased costs to meet current building codes, the stabilization of the land under your home and debris removal. The coverage can also pay for the extra living expenses you may have while your home is being rebuilt or repaired.

What does earthquake insurance not cover?

Each policy has different exclusions, so review your policy or contact your insurance company to find out exactly what isn’t included. Typically, earthquake insurance won’t cover something already included in your homeowners policy, such as fire damage, or any pre-existing damage to your home not caused by an earthquake. It typically won’t cover damage to vehicles either. Your car insurance policy may cover that damage.

Do I need earthquake insurance?

The United States Geological Survey (USGS) outlines some things to consider when purchasing earthquake insurance, like how close your home is to active faults, the earthquake history of the region, your home’s construction type and materials, and the slope of the land. It’s also necessary to consider your financial situation and how much it would cost to repair or rebuild your home. A qualified contractor or engineer can help you assess your risks. After an earthquake occurs, many insurance companies may impose a waiting period due to aftershocks, which is why it’s essential to be proactive and consider purchasing earthquake insurance before your home sustains damage.

What determines earthquake premiums and deductibles?

Factors, like your home’s size, location, age and construction type, determine premiums. Insuring your home for replacement cost or actual cash value also determines premiums. It’s important to note that earthquake deductibles are a percentage of the insured value of your home and not a usual set amount like $500 or $1,000 in homeowners policies.

Are there any additional resources about earthquakes and earthquake insurance?

As with all your insurance-related questions, OID is here for you. You can contact us at 800-522-0071 or visit our Earthquakes page for helpful information. I’ve included some additional resources at the links below:

Media questions or comments should be directed to
Chief of Communications, Liz Heigle
Liz.Heigle@oid.ok.gov | (405) 819-2221

Commissioner Mulready Re-Appointed Chair of American Indian and Alaska Native Liaison Committee

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Oklahoma Insurance Department

For Immediate Release:
January 30, 2024

Commissioner Mulready Re-Appointed Chair of American Indian and Alaska Native Liaison Committee

 

OKLAHOMA CITY – Oklahoma Insurance Commissioner Glen Mulready has been re-appointed by the National Association of Insurance Commissioners (NAIC) to serve as the Chair for the American Indian and Alaska Native Liaison Committee in 2024. He was also named Vice-Chair of the Health Insurance and Managed Care (B) Committee.

“I am honored and excited to continue serving as Chair of this important committee. We have held robust discussions on important issues affecting Indian Country this past year,” Mulready said. “I look forward to continuing our journey to address market challenges for tribal nations across the country and bring attention to the rich history of Native American heritage in Oklahoma.”

In addition to these leadership roles, Commissioner Mulready will serve as Chair of the Regulatory Framework (B) Task Force and is a standing member on two additional letter committees for the upcoming year: Life Insurance and Annuities (A) and International Insurance Relations (G).

Furthermore, the NAIC announced the 2024 committee assignments for task forces and liaison groups for Oklahoma. Ten Oklahoma Insurance Department (OID) staff members were assigned various roles after carefully considering multiple factors, including expertise and representation across geographical zones.

The OID staff members will serve on the following committees:

  • Andy Schallhorn, Deputy Commissioner of Financial Regulation and Chief Actuary: Life Actuarial (A) Task Force, Health Actuarial (B) Task Force, Casualty Actuarial and Statistical (C) Task Force, Capital Adequacy (E) Task Force, and Risk Retention Group (E) Task Force.
  • Diane Carter, Chief Financial Analyst: Accounting Practices and Procedures (E) Task Force and Valuation of Securities (E) Task Force.
  • Donna Dorr, Director of Consumer Assistance: NAIC/Consumer Liaison Committee.
  • Donna Wilson, Assistant Receiver/Estate Manager at the Oklahoma Receivership Office: Receivership and Insolvency (E) Task Force Vice-Chair.
  • Eli Snowbarger, Chief Financial Examiner: Surplus Lines (C) Task Force, Examination Oversight (E) Task Force, Financial Stability (E) Task Force, and Reinsurance (E) Task Force.
  • Erin Wainner, Deputy Commissioner of Licensing Services: Producer Licensing (D) Task Force Vice-Chair and Title Insurance (C) Task Force.
  • Kim Hunter, General Counsel: Workers’ Compensation (C) Task Force.
  • Landon Hubbart, Chief of Market Regulation: Market Information Systems (D) Task Force.
  • Ray Walker, Medicare Assistance Program Director: Senior Issues (B) Task Force.
  • Rick Wagnon, Antifraud Chief Investigator: Antifraud (D) Task Force.

“I am extremely proud to have our team members selected for these assignments. I appreciate the NAIC for recognizing our team’s dedicated service, expertise, and contributions to these important groups,” said Mulready.

The NAIC is the U.S. standard-setting and regulatory support organization created and governed by insurance regulators from all 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight.

Media questions or comments should be directed to
Chief of Communications, Liz Heigle
Liz.Heigle@oid.ok.gov | (405) 819-2221

A Year in Review With the Oklahoma Insurance Department

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Oklahoma Insurance Department

For Immediate Release:
January 23, 2024

A Year in Review With the Oklahoma Insurance Department

By Oklahoma Insurance Commissioner Glen Mulready

 

Last year began as I was sworn into my second and last term as your Oklahoma Insurance Commissioner. I am always grateful for your continued trust and the unique opportunity it is to serve my fellow Oklahomans. Last year was also an eventful year from an insurance standpoint. From severe weather to changes in the insurance market, the Oklahoma Insurance Department (OID) was here with you through all of it. I want to highlight some of our work from 2023 and discuss what’s in store for this year.

We were here to help.

As we state in our vision, OID’s top priority is to protect Oklahoma consumers. Last year, our Consumer Assistance division assisted with 13,157 phone calls and 2,784 complaints, resulting in 327 external reviews and $8,295,011 recovered for consumers. Our Anti-Fraud division also assisted with 1,414 complaints. With the Life Insurance Policy Locator, we matched Oklahoma beneficiaries with $49 million in life insurance benefits…that they didn’t know they had! Additionally, through all the winter weather, wildfires, hail and tornadoes, we were ready to provide assistance and answer your insurance questions. We help Oklahomans in their time of need, and I want to reiterate that if you need assistance or would like to file a complaint, please contact us at 800-522-0071 or visit oid.ok.gov.

We met with those we serve.

My team and I love getting out in the communities we serve and meeting consumers and insurance industry professionals. We arranged Coffee with the Commissioner and attended Mix and Mingle events across the state, where we met with chambers of commerce, licensed agents, Rotary Club chapters and other organizations to learn ways we can better serve the community. In September, we set up a booth at the Oklahoma State Fair to inform thousands of consumers about our services while having fun in the process. In addition to these events, our Medicare Assistance Program (MAP) was active, giving 303 community presentations and engaging in 19,254 one-on-one client contacts, leading to 27,164 people reached. If you’d like to host an event with us, visit https://www.oid.ok.gov/speaker or call our office at 800-522-0071.

We informed and advocated for Oklahomans.

In 2023, we looked for new ways to reach consumers and licensed producers. We launched campaigns like Here to Help, Ask OID and Winter Weather to give guidance on what Oklahomans should know about insurance. We brought you 13 new episodes of the Mulready Minutes podcast, where we featured informative guests to share perspectives and information on topics such as Medicare Open Enrollment, captive insurance and the different divisions at OID. Our team also produced six episodes of the Medicare Monday webinar, and we hosted our first Insurance Day, where we connected with 125 industry professionals on issues affecting the insurance industry in Oklahoma and across the country. As a reminder, you can keep up with the latest news and events with us by following us on social media and subscribing to email news updates at oid.ok.gov/subscribe.

We’re looking forward to 2024.

Before looking ahead, I’d like to thank the OID team, who are dedicated state employees who make all of this possible. We expect 2024 to come with unique challenges and opportunities, but our commitment to serving Oklahomans will not change. We will keep you informed by bringing you new podcast episodes, webinars, campaigns and events in your own community. Check out our 2023 Annual Report for more information on all the work we do at OID. Here’s to a successful 2024!

Media questions or comments should be directed to
Chief of Communications, Liz Heigle
Liz.Heigle@oid.ok.gov | (405) 819-2221

Deadline Approaching – Secure Your 2024 Health Insurance Coverage Now!

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Oklahoma Insurance Department

For Immediate Release:
January 5, 2024

Deadline Approaching – Secure Your 2024 Health Insurance Coverage Now!

 

OKLAHOMA CITY – Time is running out to secure your health insurance coverage for 2024! The deadline to enroll in an insurance plan on the Health Insurance Marketplace is January 16, 2024.

Oklahomans who have not yet enrolled can still take advantage of this opportunity. To enroll, contact:

  • Healthcare.gov or call 800-318-2596
  • Legal Aid Services Navigator/Assister at myOKplan.org or 888-534-5243
  • Reach out to an insurance agent/broker specially trained to assist you in choosing the right plan.

The enrollment deadline is midnight on January 16, 2024, for coverage starting on February 1, 2024. Plan options, monthly premiums and total annual out-of-pocket costs for 2024 are available at www.healthcare.gov/see-plans/.

Media questions or comments should be directed to
Chief of Communications, Liz Heigle
Liz.Heigle@oid.ok.gov | (405) 819-2221

Understanding Mental Health Parity and Your Insurance Coverage

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Oklahoma Insurance Department

For Immediate Release:
December 19, 2023

Understanding Mental Health Parity and Your Insurance Coverage

By Oklahoma Insurance Commissioner Glen Mulready

 

Often, when we discuss health insurance, we focus mainly on physical health benefits for operations, hospital visits or medication and don’t mention another important component of well-being: mental health. More than one in five U.S. adults live with a mental illness, according to the Centers for Disease Control and Prevention. Around the same percentage of Oklahomans (almost 790,000 people) experience a mental illness every year. This is a topic I hope enters the conversation more, and I want Oklahomans to understand mental health parity and insurance coverage.

What is parity?

First, it’s crucial to understand what parity is. In this case, mental health parity means mental health coverage under an insurance plan is equal to physical health coverage. Mental health hasn’t always been treated the same as physical health coverage, with this issue addressed by multiple laws over the decades. In 2008, Congress passed the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA), which generally prevents group health plans and health insurance issuers that provide mental health or substance use disorder benefits from imposing less favorable benefit limitations on those benefits than on medical/surgical benefits. In Oklahoma, we passed SB1718 in 2020, which requires carriers in the state to offer mental health and substance use disorder coverage in parity.

Is my plan included under mental health parity?

All fully insured health plans sold to individuals, small employer groups and large employer groups must include benefits for mental health and substance use disorder services. Self-funded health plans (commonly provided by large employers) aren’t required to cover these services. If they do include this coverage, it must be provided in parity with benefits for physical illness.

In general, parity rules apply to:

  • Private-sector employment-sponsored group health plans with 51 or more workers
  • Private plans of smaller employers that started offering health insurance benefits or made major changes to their health insurance plans after March 23, 2010
  • Plans sponsored by non-federal governmental employers with 51 or more workers (although self-insured non-federal governmental plans can opt out if they follow certain procedures)
  • Most health insurance coverage sold to individuals, including coverage sold through the Health Insurance Marketplace
  • Most, but not all, Medicaid managed care programs and all Children’s Health Insurance Program (CHIP) programs

However, parity does not apply to Medicare fee-for-service or Medicare Advantage plans.

What if my health insurance plan doesn’t treat mental health and physical health equally?

Review your health insurance plan and look closely at your benefits. If you determine your insurer does not meet parity but does meet the above criteria, contact us at the Oklahoma Insurance Department at 800-522-0071 or visit oid.ok.gov. We can help review policies and contact insurance companies on your behalf to ensure compliance with state and federal parity laws. For immediate mental health assistance, call or text Oklahoma’s Mental Health Lifeline at 988.

Media questions or comments should be directed to
Chief of Communications, Liz Heigle
Liz.Heigle@oid.ok.gov | (405) 819-2221

Oklahoma Insurance Department Successfully Hosts Inaugural Insurance Day

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Oklahoma Insurance Department

For Immediate Release:
December 15, 2023

Oklahoma Insurance Department Successfully Hosts Inaugural Insurance Day

 

OKLAHOMA CITY – The Oklahoma Insurance Department (OID) successfully hosted the inaugural Oklahoma Insurance Day in Oklahoma City. The conference was held at the Embassy Suites Downtown Medical Center on December 14 and attracted a total of 125 attendees from across the insurance sector in Oklahoma.

“Our first Insurance Day was a huge success, and I’m proud of our entire team for developing a robust, educational agenda and hosting a great event,” Oklahoma Insurance Commissioner Glen Mulready said. “I know attendees walked away with more insight into the industry here in Oklahoma from several expert perspectives.”

The conference covered important aspects of the insurance sector in Oklahoma and national topics driving the industry. The sessions featured leading experts from industry and regulators across the country. The speakers included Montana State Auditor and Commissioner of Securities and Insurance Troy Downing, Reinsurance Association of America (RAA) Vice President of State Relations Paul Martin, OID’s Captive Insurance Director Steve Kinion and OID’s Government and Community Affairs Director Ashley Scott, with the keynote address given by former KTUL anchor Mark Bradshaw.

The event was supported by the Independent Insurance Agents of Oklahoma (Big I Oklahoma) and brought together regulators, business leaders, industry professionals and beyond to connect, learn, and collaborate. The event featured informative sessions, panel discussions, and networking opportunities.

For conference-related questions or assistance, please contact oid.events@oid.ok.gov. To find out about future OID events, visit oid.ok.gov/subscribe for updates or follow OID on social media.