Bill
Bill > HB1498
OK HB1498
OK HB1498Insurance; prepaid funeral services; permit; application; Insurance Commissioner; violations; penalties; examination; repealer; effective date.
summary
Introduced
02/03/2025
02/03/2025
In Committee
04/17/2025
04/17/2025
Crossed Over
03/25/2025
03/25/2025
Passed
04/29/2025
04/29/2025
Dead
Signed/Enacted/Adopted
05/06/2025
05/06/2025
Introduced Session
2025 Regular Session
Bill Summary
An Act relating to insurance; amending Section 4, Chapter 346, O.S.L. 2024 (36 O.S. Supp. 2024, Section 673), which relates to information security; modifying to whom certain information shall be reported; amending 36 O.S. 2021, Section 2208, which relates to duties of the Insurance Commissioner; modifying duties; amending 36 O.S. 2021, Section 6121, which relates to permits required for prepaid funeral services; modifying language to clarify applicability; providing definition; requiring response to inquiry; requiring notifying the Insurance Commissioner of changes in certain information; amending 36 O.S. 2021, Section 6124, which relates to the acceptance of money for prepaid funeral benefits; proscribing manner in which applications for permits shall be filed; providing procedures for certain expired permits; permitting the Insurance Commissioner to suspend, revoke, or refuse to renew permits; amending 36 O.S. 2021, Section 6124.1, as amended by Section 15, Chapter 345, O.S.L. 2024 (36 O.S. Supp. 2024, Section 6124.1), which relates to the transfer of ownership of prepaid funeral benefits; clarifying the manner in which certain notice shall be provided; permitting the Insurance Commissioner to take actions pursuant to Articles 18 and 19 of Title 36 of the Oklahoma Statutes; amending 36 O.S. 2021, Section 6124.2, which relates to the application for change of name of a prepaid funeral benefit permit holder; modifying language for clarity; requiring additional information; prohibiting conducting unpermitted prepaid funeral benefit business; amending 36 O.S. 2021, Section 6125.2, which relates to funding prepaid funeral benefits contract by assignment of life insurance proceeds; permitting assignment from certain insurance policies and certain annuities; amending 36 O.S. 2021, Section 6128, which relates to annual report to Insurance Commissioner; clarifying organization is responsible for transaction or other applicable fees; amending 36 O.S. 2021, Section 6129, which relates to maintenance of records; modifying penalty; amending 36 O.S. 2021, Section 6130, which relates to violations and penalties; permitting the censure, suspension, revocation, or refusal of permit after opportunity for hearing; amending 36 O.S. 2021, Section 7125, which relates to permit applications under the Cemetery Merchandise Trust Act; clarifying manner in which applications shall be filed; permitting reinstatement of certain expired permits; clarifying no entitlement after revocation; requiring submission of certain changes by permit holders; requiring response to inquiry; amending 36 O.S. 2021, Section 7127, which relates to surety bond in lieu of trust requirement; modifying timeline for notice; amending 36 O.S. 2021, Section 7128, which relates to filing of annual report; clarifying report be filed electronically; amending 36 O.S. 2021, Section 7131, which relates to Insurance Commissioner's actions for violations; clarifying violations; modifying minimum penalty; amending 36 O.S. 2021, Section 7133, which relates to failure to comply with Insurance Commissioner examination; modifying penalties for refusal or interference to examination; repealing 36 O.S. 2021, Sections 1106.1, 6813, 6814, and 6815; and providing an effective date. SUBJECT: Insurance
AI Summary
This bill makes extensive modifications to Oklahoma's insurance laws, particularly focusing on prepaid funeral services and cemetery merchandise regulations. The bill primarily updates requirements for organizations offering prepaid funeral or cemetery merchandise benefits by introducing more stringent electronic reporting, permit renewal, and information disclosure processes. Key provisions include: requiring organizations to electronically file permit applications and annual reports, establishing clearer procedures for permit renewal and reinstatement (including penalties for late submissions), mandating that permit holders notify the Insurance Commissioner of changes in business information within 30 days, and expanding the Commissioner's authority to suspend, revoke, or refuse to renew permits for violations. The bill also modifies rules around transferring ownership of prepaid funeral benefit permits, clarifies definitions, and increases potential penalties for non-compliance. Additionally, the bill updates information security requirements for insurers, mandating comprehensive written security programs that protect non-public information and information systems. These changes aim to enhance consumer protection, improve regulatory oversight, and ensure more transparent and accountable practices in the prepaid funeral and cemetery merchandise industries.
Committee Categories
Business and Industry
Sponsors (3)
Last Action
Becomes law without Governor's signature 05/06/2025 (on 05/06/2025)
Official Document
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