House Bill No. 1498 amends various sections of the Oklahoma Statutes concerning insurance, particularly focusing on information security and the regulation of prepaid funeral services. The bill mandates that licensees develop a comprehensive information security program to protect nonpublic information and requires annual reporting to the Insurance Commissioner. It enhances the Commissioner's oversight responsibilities, including detailed evaluations of underwriting policies and consumer satisfaction. Additionally, the bill clarifies the permit process for prepaid funeral services, establishing penalties for noncompliance and requiring organizations to designate personnel for information security, conduct risk assessments, and implement incident response plans.

The bill also introduces specific requirements for organizations providing prepaid funeral benefits, defining "organization" as a "funeral establishment" and mandating timely responses to inquiries from the Insurance Commissioner. Permit holders must electronically notify the Commissioner of any changes in contact information and are subject to late fees for delays. The bill outlines the application process for permits, including electronic submissions and associated fees, and allows contracts for prepaid benefits to be funded through insurance proceeds. It establishes penalties for violations, including fines and potential imprisonment, and aims to enhance regulatory oversight and consumer protection in the prepaid funeral and cemetery merchandise sectors. The act is set to take effect on 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
Floor (Senate): 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
Enrolled (final version): 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