Bulletin No. PC 2013-02: Timely Refund of Unearned Premium

3625 NW 56th Street, Suite 100 • Oklahoma City, Oklahoma 73112• Toll Free (In State) (800) 522-0071 • Fax: (405) 521-0125 JOHN D. DOAK OKLAHOMA INSURANCE COMMISSIONER 3625 NW 56th Street OKLAHOMA CITY, OK 73112 (405) 521-2746 www.oid.ok.gov BULLETIN NO. PC 2013-02 TO: ALL PRODUCERS LICENSED TO WRITE PROPERTY AND CASUALTY INSURANCE IN THE STATE OF OKLAHOMA ALL PROPERTY & CASUALTY INSURERS LICENSED IN THE STATE OF OKLAHOMA RE: TIMELY REFUND OF UNEARNED PREMIUM FROM: OKLAHOMA INSURANCE DEPARTMENT DATE: March 27, 2013 All of us, the Oklahoma Insurance Department, insurers, and producers share a common goal of providing Oklahoma consumers with the best service possible. Unfortunately, OID has become aware of instances in which insurers and/or producers have failed to timely refund unearned premiums on property and casualty policies. OID is taking this opportunity to remind the industry about the relevant law and to warn that delay in the refunding of unearned premiums will not be tolerated. The law, 36 O.S. § 1435.13a(B) is as follows: “Every insurer shall remit unearned premiums to the insured or the proper agent or shall otherwise credit the account of the proper insurance producer licensee as soon as is practicable after entitlement thereto has been established but in no event more than forty-five (45) days after the effective date of any cancellation or termination effected by the insurer or after the date of entitlement thereto as established by notification of cancellation or of termination or as otherwise established. Any insurance producer licensee having knowledge of a failure on the part of any insurer to comply with this subsection shall promptly report such failure to the Commissioner in writing.” If a producer discovers instances of an insurer failing to timely refund unearned premium, please file a request for assistance with our Consumer Assistance Division. Questions or comments applicable to this bulletin should be directed to: 3625 NW 56th Street, Suite 100 • Oklahoma City, Oklahoma 73112• Toll Free (In State) (800) 522-0071 • Fax: (405) 521-0125 Denise Engle, Deputy Commissioner of Workers Compensation, Rate and Form Compliance, Licensing and Education Oklahoma Insurance Department Five Corporate Plaza, 3625 NW 56th Suite 100 Oklahoma City, OK 73112 Denise.Engle@oid.ok.gov or Courtney Phipps, Manager, Licensing Division Courtney.Phipps@oid.ok.gov 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.