Oklahoma Insurance Department (OID)

The Oklahoma Insurance Department (OID) is the state agency responsible for regulating the Property & Casualty insurance industry in Oklahoma. The Department operates under Title 36 of the Oklahoma Statutes and protects consumers while ensuring a healthy insurance marketplace.

The Insurance Commissioner

The Oklahoma Insurance Commissioner is:

• Elected by Oklahoma voters (unlike many states where the Commissioner is appointed)
• Serves a four-year term with no term limits
• Chief regulator of Oklahoma's insurance industry
• Authorized to adopt regulations, review rates, investigate violations, and discipline licensees
• Supported by the Oklahoma Insurance Department staff

Current Structure (2026)

Oklahoma's elected Insurance Commissioner approach makes Oklahoma unique among states. The Commissioner answers directly to Oklahoma voters, emphasizing consumer protection and accountability.

Commissioner Powers for P&C Insurance

Rate Regulation

Oklahoma uses a file-and-use system for most P&C insurance:

Key Provisions

• File-and-Use: Insurers file rates with OID and may use them immediately (no prior approval required)
• OID Review: Commissioner reviews filed rates for compliance
• Rate Standards: Rates must not be excessive, inadequate, or unfairly discriminatory
• Disapproval Authority: Commissioner may disapprove rates after review
• Hearing Process: Insurers may contest rate disapprovals

File-and-Use Process

1. Insurer Files Rates: Submit rate filing with actuarial justification to OID
2. Immediate Use: Rates effective immediately upon filing
3. OID Review: Department reviews filing for compliance (typically 30-60 days)
4. Approval or Disapproval: Commissioner approves or orders rates modified
5. Insurer Response: If disapproved, insurer may modify or contest

Exam Tip: Oklahoma uses file-and-use, NOT prior approval. Insurers can implement rates immediately after filing, but the Commissioner reviews them and may disapprove. This differs from Massachusetts' prior approval system.

Rate Regulation by Line

Oklahoma Insurance Law

Title 36 of the Oklahoma Statutes

Oklahoma insurance regulation is codified in Title 36 of the Oklahoma Statutes, which covers:

1. Insurer Licensing and Solvency

   • Requirements for insurers to operate in Oklahoma
   • Financial standards and reserve requirements
   • Annual financial examinations and reporting

2. Producer Licensing

   • Producer license requirements and procedures
   • Continuing education mandates
   • Prohibited practices and penalties

3. Policy Requirements

   • Mandatory policy provisions
   • Required disclosures
   • Consumer protections

4. Rate Regulation

   • Rate filing requirements
   • Prohibitions on unfair discrimination
   • Rate review procedures

5. Consumer Protections

   • Cancellation and non-renewal restrictions
   • Claims handling requirements
   • Unfair trade practices prohibitions

Key Oklahoma Statutes

OID Organization

The Oklahoma Insurance Department operates through several functional divisions:

Key Divisions

Consumer Protection Functions

Consumer Assistance Division

The OID provides consumer protection through:

• Consumer Hotline: (405) 521-2828 or toll-free (800) 522-0071
• Consumer Services: Investigates complaints against insurers and producers
• Educational Resources: Consumer guides, brochures, and online information
• Complaint Resolution: Mediates disputes between consumers and insurers
• Fraud Investigation: Works with law enforcement on insurance fraud cases

Complaint Process

1. Consumer Files Complaint: Online at www.oid.ok.gov, phone, or mail
2. OID Review: Department reviews complaint and determines jurisdiction
3. Insurer Contact: OID contacts insurer for response
4. Investigation: OID investigates if warranted
5. Resolution: OID works to resolve dispute or takes enforcement action
6. Follow-up: OID tracks outcomes and consumer satisfaction

Common Consumer Complaints

Exam Tip: The OID Consumer Hotline numbers are (405) 521-2828 for local and (800) 522-0071 toll-free. Know that consumers can file complaints about insurers and producers online, by phone, or by mail.

Regulatory Authority

Examination Authority

The Oklahoma Insurance Commissioner has authority to:

1. Conduct Financial Examinations

   • Examine insurer financial records and operations
   • Verify compliance with solvency requirements
   • Review reserve adequacy

2. Perform Market Conduct Examinations

   • Review business practices and procedures
   • Examine claims handling processes
   • Verify rating and underwriting compliance
   • Check producer licensing and appointments

3. Investigate Complaints

   • Review consumer complaints
   • Investigate potential violations
   • Gather evidence and testimony

Enforcement Powers

The Commissioner may:

• Issue cease and desist orders
• Impose civil penalties (fines up to $25,000 per violation)
• Suspend or revoke licenses
• Order restitution to consumers
• Refer criminal matters to prosecutors
• Place insurers under supervision or rehabilitation

Administrative Hearings

Parties subject to OID enforcement action have rights to:

• Written notice of charges
• Hearing before administrative law judge
• Legal representation
• Present evidence and witnesses
• Appeal to Oklahoma courts

Insurance Fraud Prevention

Oklahoma Insurance Fraud Unit

Oklahoma takes insurance fraud seriously:

Fraud Unit Functions:

• Investigate suspected insurance fraud
• Work with law enforcement agencies
• Prosecute fraudulent activities
• Educate public about fraud prevention

Common Fraud Types:

• Application fraud (misrepresenting information)
• Claims fraud (false or inflated claims)
• Premium fraud (misappropriation of premiums)
• Agent fraud (unlicensed activity, misrepresentation)

Reporting Fraud

• Fraud Hotline: (800) 522-0071
• Online: Report fraud at www.oid.ok.gov
• Confidential: Reports may be anonymous
• Penalties: Fraud is a felony punishable by imprisonment and fines

Exam Tip: Insurance fraud is a serious crime in Oklahoma. Producers must report suspected fraud and cannot participate in fraudulent activities. The penalty for insurance fraud can include prison time and substantial fines.