House Bill No. 1498, introduced by Chapman and Tedford, amends various sections of Oklahoma insurance laws to bolster information security and clarify the responsibilities of the Insurance Commissioner. The bill mandates that licensees develop and maintain a comprehensive information security program to address risks related to nonpublic information, designate personnel responsible for the program, conduct regular threat assessments, and implement safeguards for sensitive data. Additionally, it requires annual compliance reporting to the Insurance Commissioner. The legislation also revises regulations surrounding prepaid funeral services, necessitating organizations to obtain permits before offering such services, clarifying the application process, and outlining the Commissioner’s responsibilities in reviewing trust operations.

Key changes include the introduction of electronic filing for permit applications and notifications, a reinstatement process for expired permits, and the stipulation that organizations must operate under the name specified in their permit. The bill also clarifies funding sources for prepaid funeral benefits and establishes penalties for non-compliance, including misdemeanors for officers who fail to file required reports. Furthermore, it updates terminology, increasing the maximum civil penalty for violations from $100 to $1,000, and requires organizations to report changes in their business name or contact information within specified timeframes. Overall, House Bill No. 1498 aims to enhance regulatory oversight and compliance within the insurance sector, with an effective date set for November 1, 2025.

Statutes affected:
Introduced: 36-6124.1, 36-6813, 36-6814, 36-6815
House Committee Substitute: 36-6124.1, 36-1106.1, 36-6813, 36-6814, 36-6815
Floor (House): 36-6124.1, 36-1106.1, 36-6813, 36-6814, 36-6815
Engrossed: 36-6124.1, 36-1106.1, 36-6813, 36-6814, 36-6815
Sub Committee OR Policy Committee Recommendations (House) Policy Committee Recommendation: 36-6124.1, 36-1106.1, 36-6813, 36-6814, 36-6815