The bill amends the Unauthorized Insurers and Surplus Lines Insurance Act in Oklahoma, focusing on updating definitions and clarifying the roles of surplus lines brokers and nonadmitted insurers. Key insertions include new definitions for terms such as "Affiliate," "Affiliated group," and "Eligible surplus lines insurer," which aim to improve the understanding of relationships between insured entities and their insurers. The bill expands the scope to include nonadmitted insurers selling nonadmitted insurance coverage, making them subject to the act and allowing for legal actions against them. It also modifies provisions regarding the procurement of surplus lines insurance, mandating that it be obtained through a licensed surplus lines broker in the insured's home state and extending the record-keeping requirement for brokers from three to five years.

Additionally, the bill introduces new penalties for non-compliance with tax remittance and reporting requirements, including civil penalties for brokers who fail to remit taxes on time. It establishes that surplus lines insurance contracts will be fully valid and enforceable, and mandates specific notification language regarding the lack of protection from state guaranty funds in the event of insurer insolvency. The bill clarifies the service of process upon the Insurance Commissioner as lawful personal service for actions arising from policies issued in the state and modifies the requirement for producing insurance documents, now necessitating that a "producer or surplus line broker" provide relevant policies and information. The bill also repeals Section 1106.2 and sets an effective date of November 1, 2026, for these changes.

Statutes affected:
Introduced: 36-1107, 36-1114, 36-1106.2