Legislation aimed at increasing oversight of insurance rate hikes in Oklahoma is headed to Governor Kevin Stitt for consideration.
House Bill 3781, authored by Oklahoma Senator Aaron Reinhardt, would change the state’s property and casualty insurance rate filing system from a “use-and-file” model to a “file-and-use” process. Under the measure, insurance companies would be required to submit proposed rate increases to the Oklahoma Insurance Department before those rates could take effect.
The bill gives the Insurance Commissioner additional time to review filings and object to rates considered excessive before they impact policyholders.
“This legislation is about protecting Oklahoma consumers while bringing more accountability and transparency to the insurance rate-setting process,” Reinhardt said. “Families across our state are struggling with rising insurance premiums, and this measure gives the Insurance Commissioner stronger tools to review, scrutinize and potentially disapprove excessive rates before they impact policyholders.”
The legislation would require insurers in competitive markets to file rate changes at least 30 days before they take effect, while insurers in noncompetitive markets would face a 60-day filing requirement. Rates could only take effect after approval by the Insurance Commissioner or after the waiting period expires without objection.
House Bill 3781 also updates provisions dealing with excessive rates by requiring insurers to be formally notified of objections and allowing companies to submit additional actuarial information before a final decision is made.
The measure removes distinctions between competitive and noncompetitive markets so all filings receive the same level of review. It also expands public transparency by requiring the Oklahoma Insurance Department to post notices of rate increases for homeowners, dwelling fire and private passenger automobile policies on its website, including the overall percentage increase.
Reinhardt credited Oklahoma Representative Stacy Jo Adams for helping advance the bill through the legislative process.
