Bulletin No. 2019-Exec-01: Flood 05-24-2019

1 AMENDED 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 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 Executive Order 2019-19 and has since amended that order, 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. 2 The following applies to any and all insuring entities, including, but not limited to health maintenance organizations, accident and health insurers, third party administrators, 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. 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. 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. 3 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. Flood Zip Code affected areas are provided on the attached Zip Code list and map as “Attachment A”. 4 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.