Oklahoma Senate Minority Leader Unveils New Insurance Reform Legislation

An Oklahoma state senator has proposed a comprehensive package of insurance reform bills aimed at addressing the state’s soaring insurance costs. Democrat Sen. Julia Kirt, who serves as the Minority Leader of the Oklahoma Senate, has pre-filed three significant insurance-related bills in anticipation of the upcoming legislative session, which is set to commence in early February.

“The message is clear – many people in Oklahoma are having a hard time paying for insurance because prices have skyrocketed in recent years,” Kirt stated. “This is especially tough for seniors living on fixed incomes and for families who are already struggling to pay their bills.”

One of the key proposals, SB 1438, aims to establish requirements for determining excessive profits made by insurance companies. If an insurer’s profits are deemed excessive, the bill mandates a refund of certain amounts. Specifically, an insurer will be considered to have excessive profits if there is an underwriting gain for three consecutive years that exceeds the anticipated underwriting profit plus five percent of earned premiums for those years. In such cases, the insurance commissioner will order a pro-rata return of the excessive amounts after providing the insurer an opportunity for a hearing.

Another significant bill, SB 1444, seeks to empower the insurance commissioner to reject rate increases that are deemed too high. This legislation would require insurance companies to submit documentation justifying any proposed rate hikes before they can be implemented. Currently, Oklahoma operates as a “use and file” state, meaning insurers can begin using new rates before filing them with the Oklahoma Insurance Department (OID). Unfortunately, the OID generally lacks the authority to disapprove rates or rate changes.

Additionally, SB 1435 proposes to eliminate the use of credit scores in determining insurance premium prices. This change would align Oklahoma with states like California, Hawaii, Massachusetts, and Michigan, which already restrict insurers from using credit scores to set auto and home premiums.

While Kirt’s legislative proposals aim to provide relief to Oklahomans facing rising insurance costs, they are likely to encounter significant resistance in a legislature dominated by Republicans. The GOP currently holds a supermajority in both the House, with 81 of 101 seats, and the Senate, with 40 of 48 seats.

Topics
Leadership
Politics
Oklahoma

An Oklahoma state senator has proposed a comprehensive package of insurance reform bills aimed at addressing the state’s soaring insurance costs. Democrat Sen. Julia Kirt, who serves as the Minority Leader of the Oklahoma Senate, has pre-filed three significant insurance-related bills in anticipation of the upcoming legislative session, which is set to commence in early February.

“The message is clear – many people in Oklahoma are having a hard time paying for insurance because prices have skyrocketed in recent years,” Kirt stated. “This is especially tough for seniors living on fixed incomes and for families who are already struggling to pay their bills.”

One of the key proposals, SB 1438, aims to establish requirements for determining excessive profits made by insurance companies. If an insurer’s profits are deemed excessive, the bill mandates a refund of certain amounts. Specifically, an insurer will be considered to have excessive profits if there is an underwriting gain for three consecutive years that exceeds the anticipated underwriting profit plus five percent of earned premiums for those years. In such cases, the insurance commissioner will order a pro-rata return of the excessive amounts after providing the insurer an opportunity for a hearing.

Another significant bill, SB 1444, seeks to empower the insurance commissioner to reject rate increases that are deemed too high. This legislation would require insurance companies to submit documentation justifying any proposed rate hikes before they can be implemented. Currently, Oklahoma operates as a “use and file” state, meaning insurers can begin using new rates before filing them with the Oklahoma Insurance Department (OID). Unfortunately, the OID generally lacks the authority to disapprove rates or rate changes.

Additionally, SB 1435 proposes to eliminate the use of credit scores in determining insurance premium prices. This change would align Oklahoma with states like California, Hawaii, Massachusetts, and Michigan, which already restrict insurers from using credit scores to set auto and home premiums.

While Kirt’s legislative proposals aim to provide relief to Oklahomans facing rising insurance costs, they are likely to encounter significant resistance in a legislature dominated by Republicans. The GOP currently holds a supermajority in both the House, with 81 of 101 seats, and the Senate, with 40 of 48 seats.

Topics
Leadership
Politics
Oklahoma