Oklahoma Senate Minority Leader Proposes Insurance Reform Bills

An Oklahoma state senator has proposed a package of insurance reform bills she says will tackle the state’s skyrocketing insurance costs.

Democrat Sen. Julia Kirt, the Minority Leader of the Oklahoma Senate, has pre-filed three insurance-related bills ahead of the legislative session, which begins 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,” Kirk said in a statement. “This is especially tough for seniors living on fixed income and for families who are already struggling to pay their bills.”

SB 1438 would establish requirements to determine excessive insurance company profits and require a refund of certain amounts if an insurer’s profits are deemed excessive. According to the bill, an insurer shall be deemed to have excessive profit if there has been an underwriting gain for three consecutive years combined that is greater than the anticipated underwriting profit plus five percent of earned premiums for those calendar years.

The bill states that if an is deemed to have excessive profit, the insurance commissioner shall order a pro-rata return of the excessive amounts after affording the insurer group an opportunity for hearing.

SB 1444 would give the insurance commissioner to reject rate increases that are too high. The bill would require insurance companies to file paperwork justifying the rate before being able to move forward with an increase.

Oklahoma is currently a use and file state. Insurers can start using new rates before filing with the Oklahoma Insurance Department (OID). The OID generally does not have the authority to disapprove rates or rate changes.

SB 1435 would remove a person’s credit score from consideration in determining insurance premium prices. California, Hawaii, Massachusetts and Michigan restrict insurers from using credit scores to determine auto and home premiums.

Kirk’s legislative proposals are sure to face resistance in an Oklahoma legislature dominated by Republicans. The GOP currently has a supermajority in both the House (81 of 101 seats) and Senate (40 of 48 seats).