Oklahoma Senate Minority Leader Unveils New Insurance Reform Legislation

By Ezra Amacher

An Oklahoma state senator has introduced a series of insurance reform bills aimed at addressing the alarming rise in insurance costs across the state. 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, 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 in a recent announcement.

One of the proposed bills, SB 1438, seeks to establish criteria for identifying excessive profits made by insurance companies. If an insurer’s profits are found to be excessive, the bill mandates that a refund be issued. Specifically, an insurer will be considered to have excessive profits if it reports an underwriting gain for three consecutive years that exceeds the anticipated underwriting profit plus five percent of earned premiums for those years. Should this occur, the insurance commissioner is required to order a pro-rata return of the excessive amounts, following a hearing opportunity for the insurer.

Another key proposal, SB 1444, would empower the insurance commissioner to reject rate increases deemed excessively high. This bill mandates that insurance companies submit documentation justifying any proposed rate hikes before they can be implemented. Currently, Oklahoma operates under a “use and file” system, allowing insurers to implement new rates prior to filing with the Oklahoma Insurance Department (OID). Under this system, the OID generally lacks the authority to disapprove rate changes.

The third bill, SB 1435, aims to eliminate the consideration of an individual’s credit score in determining insurance premium rates. This change is intended to make insurance pricing more equitable and accessible for Oklahomans.

While Kirt’s legislative proposals address pressing concerns regarding insurance affordability, they are likely to encounter significant opposition in a legislature where Republicans hold a supermajority in both the House and Senate. The political landscape in Oklahoma may pose challenges for these reforms, even as they aim to alleviate the financial burden on residents struggling with rising insurance costs.

Topics
Leadership
Politics
Oklahoma

By Ezra Amacher

An Oklahoma state senator has introduced a series of insurance reform bills aimed at addressing the alarming rise in insurance costs across the state. 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, 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 in a recent announcement.

One of the proposed bills, SB 1438, seeks to establish criteria for identifying excessive profits made by insurance companies. If an insurer’s profits are found to be excessive, the bill mandates that a refund be issued. Specifically, an insurer will be considered to have excessive profits if it reports an underwriting gain for three consecutive years that exceeds the anticipated underwriting profit plus five percent of earned premiums for those years. Should this occur, the insurance commissioner is required to order a pro-rata return of the excessive amounts, following a hearing opportunity for the insurer.

Another key proposal, SB 1444, would empower the insurance commissioner to reject rate increases deemed excessively high. This bill mandates that insurance companies submit documentation justifying any proposed rate hikes before they can be implemented. Currently, Oklahoma operates under a “use and file” system, allowing insurers to implement new rates prior to filing with the Oklahoma Insurance Department (OID). Under this system, the OID generally lacks the authority to disapprove rate changes.

The third bill, SB 1435, aims to eliminate the consideration of an individual’s credit score in determining insurance premium rates. This change is intended to make insurance pricing more equitable and accessible for Oklahomans.

While Kirt’s legislative proposals address pressing concerns regarding insurance affordability, they are likely to encounter significant opposition in a legislature where Republicans hold a supermajority in both the House and Senate. The political landscape in Oklahoma may pose challenges for these reforms, even as they aim to alleviate the financial burden on residents struggling with rising insurance costs.

Topics
Leadership
Politics
Oklahoma