Insurance; allowing certain rates to be determined to be excessive in the Property and Casualty Competitive Loss Cost Rating Act. Effective date.
SB1592 revises Oklahoma’s insurance rate-regulation statutes, primarily the Property and Casualty Competitive Loss Cost Rating Act. The bill updates the standards the Insurance Commissioner uses to evaluate whether rates are excessive, inadequate, or unfairly discriminatory, and it clarifies when rates in competitive and noncompetitive markets may be disapproved. It also expands and reorganizes filing requirements for insurers, including timelines for submitting rates, supplementary rate information, and supporting documentation, as well as procedures for objections, hearings, and appeals.
A notable feature of the bill is that it gives the Insurance Commissioner more explicit authority to require closer supervision of an insurer’s rates, to demand additional information, and to publish notice on the Insurance Department’s website when certain personal lines rates increase. The bill also preserves the ability of insurers to use rates above the filed level with the insured’s separate written consent in specific cases, while maintaining public inspection rules for filings except for confidential, trade secret, or proprietary information. The act is set to take effect July 1, 2027.
SB1592 amends 36 O.S. 2021, Sections 985, 987, and 989, affecting how property and casualty insurance rates are filed, reviewed, disclosed, and disapproved in Oklahoma. It changes the regulatory framework for both competitive and noncompetitive markets, including waiting periods, notice requirements, hearing rights, and the treatment of rate reserves if a disapproved rate is appealed. The bill primarily affects insurers, the Insurance Commissioner, advisory organizations, and policyholders in lines such as private passenger automobile, homeowners multi-peril, and dwelling fire insurance.
The bill appears to have received generally favorable support in the Senate. It passed the Senate Business & Insurance Committee 9-1 after amendment and then passed third reading 44-1, indicating broad bipartisan approval with only limited opposition. The available committee commentary is minimal, but the voting record suggests the measure was viewed as a substantive but acceptable update to insurance rate oversight.
The main points of contention appear to center on the scope of the Insurance Commissioner’s authority and the degree of regulatory scrutiny imposed on insurers’ rates, especially in competitive markets. The bill also touches on transparency versus confidentiality by allowing public inspection of filings while preserving trade secret and proprietary protections, which may be a point of concern for insurers. Another likely area of debate is the expanded notice and hearing process, including the ability to require closer supervision and the publication of rate increase notices for certain policies.