Bulletin No. PC 2016-05(a)

BULLETIN NO. PC 2016-05(a) TO: ALL PROPERTY AND CASUALTY INSURERS LICENSED IN OKLAHOMA, ALL RATING AND ADVISORY ORGANIZATIONS, ATTENTION: STATE FILING FROM: OKLAHOMA INSURANCE DEPARTMENT RE: FIRE INSURANCE – COMPLIANCE WITH TITLE 36 O. S. § 4809 DATE: July 1, 2016 PURPOSE OF THIS BULLETIN - Clarification of statutory requirement. On June 21, 2016, the Department issued Bulletin PC 2016 – 05. The purpose of that Bulletin was to remind insurers and producers of their responsibilities under 36 O.S. § 4809. The statute provides in relevant part: C. It is unlawful for any insurance agent or company to knowingly write an initial policy of fire insurance coverage or to rewrite such a policy on any risk …protected by a rural fire department …with any rate credit based on location of the risk …without having first obtained from the insured or from the rural fire protection district or rural fire department evidence that current dues or subscription payments, if any, for the property to be insured have been paid. Questions have arisen as to the meaning of the term “rewrite.” In 2003, Sec. 4809 (C) was amended to remove the term “renewal” and replace it with “rewrite.” The Department is researching this matter and will provide further guidance. In the meantime, THE RESPONSE DATE, SPECIFIED IN BULLETIN PC 2016 – 05, IS EXTENDED FROM JULY 21 TO AUGUST 22, 2016. Questions applicable to this bulletin should be directed to Ms. Cuc Nguyen, Manager of the Rate and Form Compliance Division, cuc.nguyen@oid.ok.gov, or Ms. Sara Worten, Asst. General Counsel, Oklahoma Insurance Department at sara.worten@oid.ok.gov, 3625 NW 56th Street, Suite 100, Oklahoma City, OK 73112.