AMENDED Bulletin No. 2019 Exec-01: Flood 05-30-2019

1 BULLETIN NO. 2019-EXEC-01 To: ALL ENTITIES REGULATED BY THE OKLAHOMA INSURANCE DEPARTMENT, INCLUDING LIFE AND HEALTH INSURERS, HEALTH MAINTENANCE ORGANIZATIONS, THIRD PARTY ADMINISTRATORS, PROPERTY & CASUALTY INSURERS, LICENSED IN THE STATE OF OKLAHOMA From: Glen Mulready, Insurance Commissioner Date: May 24, 2019 (Revised June 5, 2019) Re: FLOOD EMERGENCY, MAY 24, 2019 The tornado and severe thunderstorms that occurred in Oklahoma during the month of May, 2019, produced wind, hail, and water damage throughout the state but most specifically in the northeast including the City of Tulsa. The severe weather has disrupted the lives of many residents resulting in their inability to perform normal activities of daily life, much less attend to their insurance needs. As a result of the loss of basic services, evacuations, and flooding, affected Oklahomans have been unable to make timely premium payments on their insurance policies or receive notifications required by insurance laws relating to cancellations, non-renewals, reinstatements, and claims. On May 8, 2019, Governor Stitt issued the Second Amended Executive Order 2019-19 declaring a disaster emergency for all seventy-seven (77) Oklahoma counties. This Bulletin, however, is only applicable to insureds residing in the zip codes in Attachment A (“affected areas”). We do expect the number of affected areas to increase as the effects of severe weather continue. This Bulletin will be effective from the date of issuance for a period of thirty (30) days but may be extended at the discretion of the Commissioner. The Commissioner is issuing this Bulletin to assist consumers and individuals and entities regulated by the Oklahoma Insurance Department as they deal with the exigencies caused by the May 2019 storms. The following applies to any and all insuring entities, including, but not limited to health maintenance organizations, accident and health insurers, third party administrators, 2 discount medical plan organizations, property and casualty insurers, surplus and excess lines insurers, county mutual insurers, regarding all types of personal and commercial lines of insurance, including, but not limited to property and casualty insurance, life insurance, accident and health insurance, disability insurance, and all lines of coverage offered by any such entity regulated by the Oklahoma Insurance Department. 1. Coverage for insureds in the affected areas shall continue under all insurance policies in effect immediately preceding the severe storms occurring on and after the third week of May, and shall remain in effect until such time as this Bulletin expires. Insurers may not cancel, nonrenew, or terminate coverage in the affected areas while this Bulletin is in effect. This period of time is a grace period during which consumers can take those actions necessary to keep their policies in force. Further, insurers may not cancel, refuse to renew, or increase the premium of any homeowner's insurance policy or any other personal residential insurance coverage, which has been in effect more than forty-five (45) days, solely because the insured filed a first claim against the policy. This moratorium shall also be inclusive to any notification period required by Title 36 O.S. §§ 3639.1 and Oklahoma Regulation 365.15-1-14, for cancellation, nonrenewal or termination of coverages in the affected areas. The beginning of all of notification time periods shall not commence until the cessation of the moratorium period. No insurer that issues any type of property or casualty insurance policy in this state shall increase premium rates, cancel a policy, or refuse to issue or renew a policy solely on the basis of a policyholder inquiring about making a claim, if the policyholder does not in fact submit a claim. (36 O.S. § 940) The statutory intent includes, but is not limited to, requests by consumers for a letter from an insurer, that under their current policy, they do, or do not have flood insurance coverage, or, if the insured is inquiring about any other specific coverage under their current insurance policy. 2. Insureds in the affected areas may request and obtain a copy of any of their insurance policies free of charge. 3. Insurers shall not implement any rate increase for policyholders in the affected areas while this Bulletin remains in effect unless such rate increase was filed with the Department prior to issuance of this Bulletin. The coverage shall remain in effect at the previously established rate. The Department recognizes that rating Oklahoma territories, counties and zip codes are not necessarily aligned and that insurers may have difficulty identifying policies in the affected areas. If an insurer has concerns with complying with the requirement of this section, please contact the Department to discuss a solution. 4. When prescription drug coverage exists for insureds in the affected areas, insurers shall allow insureds to obtain refills of their prescriptions even if the prescription was recently filled. 3 Insurers should work with their insureds and members to provide coverage for replacement medications. 5. Any licensed public adjuster performing services in the affected areas shall exhibit their adjuster license to any prospective client before entering into any contract for the performance of or before performing adjustment or settlement services. This provision protects consumers from unlicensed adjustment activity. In Oklahoma, public adjusters must pass a competency test, obtain a bond, and pay an application fee before being licensed by the Department. Application information is available on the Department’s web site: www.oid.ok.gov. 6. No person required to be licensed as a public adjuster by the Department shall require the insured to pay a fee in advance of the payment by the insurance company or collect their entire fee from the first check issued by an insurance company, rather than as a percentage of each check issued by an insurance company. 7. The insured has the right to cancel any contract with a licensed public adjuster performing adjustment or settlement until midnight of the third business day after the day on which the signed agreement was provided to the insured. Consumers have the right to cancel any contract with a public adjuster without providing an explanation. If a consumer changes his or her mind about a public adjuster contract, the consumer should notify the public adjuster in writing as soon as possible. 8. No adjuster may, directly or indirectly, own or have a pecuniary interest in any business entity which provides construction or reconstruction related services on behalf of an insurance claimant for which the adjuster is providing services, nor may the adjuster, directly or indirectly, own or have a pecuniary interest in any other business entity which furnishes any supplies, material, services, or equipment purchased by or on behalf of the claimant unless providing services on a claim which is located in a municipality having a population of less than six thousand (6,000) persons; provided the adjuster gives written disclosure of the potential conflict of interest to both the insured and insurer prior to the performance of any adjuster services. It is a clear conflict of interest for a public adjuster to provide adjuster services and other claim-related services on a single claim. Any consumer or insurer who believes that a public adjuster has violated any of the restrictions set out in this Bulletin should contact the Department. Failure to comply with the requirements of this Bulletin may subject an individual or entity to penalties authorized in Title 36 Oklahoma Statutes. 4 Flood Zip Code affected areas are provided on the attached Zip Code list and map as “Attachment A”. Questions or comments applicable to this bulletin should be directed to: Tyler Laughlin, Mike Rhoads, or Gordon Amini at: Oklahoma Insurance Department Five Corporate Plaza, 3625 NW 56th, Suite100 Oklahoma City, OK 73112 405-521-2828 The Oklahoma Insurance Department encourages readers of this notice to periodically check the Department’s web site http://www.oid.ok.gov/ for news and updates to Bulletins and other relevant material. 73003 73077 73160 73627 73005 73078 73162 73632 73006 73084 73165 73641 73007 73086 73169 73644 73008 73089 73170 73645 73009 73090 73173 73647 73010 73093 73179 73651 73013 73096 73401 73655 73014 73097 73430 73661 73015 73099 73432 73662 73016 73102 73439 73663 73017 73103 73443 73664 73018 73104 73446 73673 73020 73105 73447 73701 73022 73106 73448 73703 73026 73107 73449 73716 73027 73108 73450 73717 73028 73109 73453 73720 73030 73110 73455 73722 73032 73111 73458 73724 73034 73112 73460 73726 73036 73114 73461 73727 73038 73115 73463 73728 73041 73116 73501 73729 73044 73117 73503 73731 73045 73118 73505 73733 73047 73119 73507 73734 73048 73120 73521 73735 73049 73121 73526 73736 73050 73122 73527 73737 73051 73127 73529 73738 73053 73128 73530 73739 73054 73129 73533 73741 73058 73130 73542 73742 73059 73131 73543 73743 73061 73132 73547 73744 73062 73134 73552 73746 73063 73135 73556 73747 73064 73139 73560 73749 73065 73141 73564 73750 73066 73142 73572 73753 73067 73145 73601 73754 73068 73149 73620 73755 73069 73150 73622 73758 73071 73151 73624 73759 73072 73159 73626 73760 ATTACHMENT A Flood Zip Codes 73761 74053 73762 74054 73766 74055 73768 74056 73771 74058 73772 74059 73773 74061 73801 74062 73838 74063 74001 74066 74002 74070 74003 74072 74006 74073 74008 74074 74010 74075 74011 74079 74012 74080 74014 74081 74015 74084 74016 74085 74017 74103 74020 74104 74021 74105 74022 74106 74023 74107 74026 74108 74027 74110 74028 74112 74029 74114 74032 74115 74033 74116 74034 74117 74035 74119 74036 74120 74037 74126 74038 74127 74039 74128 74041 74129 74042 74130 74044 74131 74045 74132 74047 74133 74048 74134 74050 74135 74051 74136 74052 74137 74145 74455 74850 74146 74456 74851 74301 74463 74852 74330 74464 74855 74331 74467 74856 74332 74469 74857 74333 74470 74859 74335 74501 74868 74337 74522 74873 74338 74525 74875 74339 74530 74878 74340 74538 74881 74342 74553 74883 74343 74554 74884 74344 74556 74901 . 74346 74565 74902 74347 74601 74932 74349 74604 74946 74350 74630 74948 74352 74631 74954 74354 74632 74959 74358 74633 74962 74360 74636 74964 74361 74637 74363 74640 74364. 74641 74365 74643 74366 74644 74367 74646 74368 74647 74369 74650 74370 74651 74401 74652 74403 .74653 74421 74701 74423 74729 74429 74730 74434 74748 . 74435 74801 74436 74804 74441 74824 74446 74830 74447 74832 74450 74833 74452 74834 74454 74848 CJ ZIP Codes Impacted by Flooding (396) Date Exported: 5/30/2019 2:53 PM