STATE OF OKLAHOMA

2nd Session of the 52nd Legislature (2010)

SENATE BILL 1717	By:	Gumm

AS INTRODUCED

An Act relating to insurance; amending 36 O.S. 2001, Section 4402, which relates to accident and health policies; requiring certain insurer to file application with the Insurance Commissioner for increase in certain rates; limiting the amount of such increase; allowing the Commissioner to approve such rates; allowing the Legislature to overturn such increase; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     36 O.S. 2001, Section 4402, is amended to read as follows:
Section 4402.  A.  On and after the effective date of this Code July 1, 1957, no policy of insurance against loss or expense from the sickness, or from the bodily injury or death of the insured by accident shall be issued or delivered to any person in this state, nor shall any application, rider or endorsement be used in connection therewith until a copy of the form thereof, and of the classification of risks, and the premium rates pertaining thereto, have been filed with the Insurance Commissioner. If the Insurance Commissioner disapproves the policy, application, rider or endorsement form, said Commissioner shall make a written decision stating the reason or reasons therefor, and shall deliver a copy thereof to the company, and it shall be unlawful for any such insurer to use any such form in the state.  Any such insurer shall have twenty (20) days from the date of receipt of the notice of disapproval in which to request a hearing on such disapproval.
B.  Effective January 1, 2011, any insurer subject to the provisions of subsection A of this section shall be required to file with the Insurance Commissioner an application for any proposed rate increase in premiums.  Except as otherwise provided in this subsection, the proposed increase in any such premiums shall not exceed the annual change in the medical component of the “Consumer Price Index for All Urban Consumers” as determined by the United States Bureau of Labor Statistics.  The Insurance Commissioner may approve any such premium rates which exceed the annual change in the medical component of the “Consumer Price Index for All Urban Consumers” as determined by the United States Bureau of Labor Statistics. The Legislature may overturn the approval by the Insurance Commissioner by the passage of a Joint Resolution to rescind such rate increase.
SECTION 2.  This act shall become effective November 1, 2010.

52-2-2134	ARE	1/11/2010 2:30:36 PM