SB 1592: Insurance; allowing rates to be excessive; allowing Commissioner to send objections to certain rates; requiring rates to be filed prior to effective date; establishing rate requirements. Effective date. Emergency. - Oklahoma

Committee Substitute → SB1592 (3-24-26) (REINHARDT) FS FA1.PDF · 5 edits

MODERATE

The bill was reclassified from a 'Committee Substitute' to a 'Floor Substitute,' indicating it has passed the committee stage and is ready for floor debate. Substantively, the legislation was reorganized to clarify that rates in competitive markets cannot be deemed excessive, while noncompetitive markets allow for excessive rates only if they produce unreasonably high profits. The bill also explicitly prohibits using religion as a factor for risk classification and updates the timeline for filing rate information with the Insurance Commissioner.

Scope change

The bill's scope was clarified by explicitly distinguishing between 'competitive' and 'noncompetitive' markets in the definitions of excessive and inadequate rates, whereas the previous version had a more general structure.

DEFINITION

Reorganized the Short Title and Purposes section to explicitly state that rates in competitive markets cannot be determined to be excessive, while rates in noncompetitive markets may be excessive only if they yield unreasonably high profits.

Updated the definition of 'Advisory organization' to remove references to specific section numbers (1140 and 1142) and instead describe the function generally as assisting insurers in ratemaking.

REQUIREMENT

Added an explicit prohibition against classifying risks based on the religion of the insured, reinforcing existing protections against discrimination.

TIMELINE

Modified the rate filing requirements to specify a 30-day window for filing in competitive markets after the effective date, and a 30-day pre-filing window for noncompetitive markets.

ENFORCEMENT

Changed the Commissioner's authority in noncompetitive markets to allow rates to be effective before the waiting period expires upon written application, provided the filing is deemed compliant.

Engrossed → Committee Substitute · 5 edits

MODERATE

The bill was converted from an 'Engrossed' version to a 'Committee Substitute,' which significantly expanded its scope by amending multiple sections of the Oklahoma Insurance Code. The changes clarify the short title and purposes of the act, update definitions to include modern actuarial standards, and modify filing requirements for insurers in both competitive and noncompetitive markets. Most notably, the substitute removes the automatic presumption that certain markets are competitive, requiring insurers to file more detailed information for Commissioner review.

Scope change

The bill's scope expanded from a single section amendment to a comprehensive overhaul of the Property and Casualty Competitive Loss Cost Rating Act, affecting Sections 981, 982, 985, 987, and others. It now explicitly addresses the removal of automatic compliance presumptions for noncompetitive markets and strengthens the Commissioner's authority to review rate filings.

SCOPE

The bill was restructured to amend multiple sections of the Insurance Code rather than just one, broadening the legislative impact.

DEFINITION

Key terms like 'accepted actuarial standards' and 'advisory organization' were formally defined to ensure consistent application of the law.

REQUIREMENT

Filing requirements were tightened; the automatic compliance for noncompetitive market filings was removed, requiring insurers to submit supporting data for Commissioner review.

ENFORCEMENT

The Commissioner's power to disapprove rates and order premium returns was clarified, including specific procedures for hearings and interest calculations.

TIMELINE

Timeframes for filing rates and the Commissioner's review period were adjusted, with specific attention to the 30-day window for initial filings and extensions.

Introduced → Engrossed · 4 edits · Mar 26, 2026

MODERATE

The bill was amended to clarify the rules for filing insurance rates and to add specific protections against excessive rates in noncompetitive markets. Key changes include a new requirement for the Insurance Commissioner to notify insurers of objections before finalizing a decision, a revised filing deadline for competitive markets, and the addition of a specific exemption for commercial risks that do not follow standard rating plans.

Scope change

The scope of rate filing requirements was modified to explicitly exclude certain commercial risks from mandatory filing in competitive markets, and the definition of when rates must be filed was adjusted.

TIMELINE

The deadline for filing rates in a competitive market was changed from sixty days prior to the effective date to thirty days after the effective date.

ENFORCEMENT

A new procedural step was added requiring the Insurance Commissioner to send an objection and allow the insurer to respond with additional information before determining a rate is excessive.

ELIGIBILITY

Rates for commercial risks that are not written according to manual rules or rating plans are now exempt from the mandatory filing requirement in competitive markets.

REQUIREMENT

The filing requirements for noncompetitive markets were expanded to include a specific process for the Commissioner to request additional time for review and to authorize early effectiveness upon application.

SB1592 (3-24-26) (REINHARDT) FS FA1.PDF → Floor (Senate) · 3 edits

MINOR

The bill text was reformatted from a 'Floor Substitute' version to a 'Committee Substitute' version, with the header updated to reflect the Senate Floor Version dated March 5, 2026. The substantive content of the Property and Casualty Competitive Loss Cost Rating Act remains consistent, focusing on ratemaking standards, definitions, and filing requirements for insurers in competitive and noncompetitive markets.

TECHNICAL

Document header changed from 'Floor Substitute' to 'Committee Substitute' and updated to reflect the Senate Floor Version dated March 5, 2026.

Formatting and line numbering were adjusted throughout the document to align with the committee substitute markup style.

Minor text reordering in the short title and purposes section to improve clarity and structure.

Insurance; allowing rates to be excessive; allowing Commissioner to send objections to certain rates; requiring rates to be filed prior to effective date; establishing rate requirements. Effective date. Emergency.

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