Bulletin No. PC 2016-03: Withdrawal or Discontinue Writing

GOVERNOR MARY FALLIN INSURANCE COMMISSIONER JOHN D. DOAK INSURANCE COMMISSIONER State of Oklahoma FIVE CORPORATE PLAZA, 3625 N.W. 56th STREET, SUITE 100  OKLAHOMA CITY, OKLAHOMA 73112-4511 (405) 521-2828  TOLL FREE (IN STATE) 1-800-522-0071 BULLETIN NO. PC 2016-03 TO: ALL PROPERTY AND CASUALTY INSURERS LICENSED IN OKLAHOMA FROM: JOHN D. DOAK, INSURANCE COMMISSIONER RE: WITHDRAWAL OR DISCONTINUE WRITING DATE: April 20, 2016 PURPOSE OF THIS BULLETIN The purpose of this bulletin is to inform all property and casualty insurers the Oklahoma Insurance Department will begin enforcing notice requirements as it pertains to withdrawal or discontinuance of writing a line of insurance. For example, should an insurer make the decision to discontinue writing earthquake coverage for new polices and/or begin to discontinue earthquake coverage when renewing policies, notice must be provided to OID. OKLA. ADMIN. CODE § 365:15-1-18 requires any insurer desiring to withdraw from the state or discontinue the writing of certain classes of insurance or programs in Oklahoma to provide ninety (90) days notice in writing to the Rate and Form Compliance Division of the Insurance Department. The following information must be included in the notice: (1) The number of policyholders affected; (2) The number of insurance agents affected; (3) The date the insurer will cease writing new business; (4) The date the insurer will start non-renewing insurance policies; (5) The date the insurer will transfer policyholders; (6) Whether the insurer has made arrangements with another insurer to pick up the renewals; if applicable; (7) The lines of insurance on which the insurer plans to concentrate; and (8) Whether the insurer anticipates re-entering the market. 36 O.S. § 619 allows for imposition of a fine up to $5,000.00 against members who fail to provide the requisite notice. Questions applicable to this bulletin should be directed to Cuc Nguyen of the Rate and Form Compliance Division at cuc.nguyen@oid.ok.gov or to Sara Worten of the Legal Division at sara.worten@oid.ok.gov. The Oklahoma Insurance Department encourages readers of this bulletin to periodically check the Department’s website at http://www.ok.gov/oid/ for news and updates to bulletins and other relevant material.