Senator Reinhardt Comments on Measure to Help Ease Insurance Rates Goes to Governor for Consideration

OKLAHOMA CITY – In response to growing frustrations from Oklahoma homeowners over rising insurance costs, legislation authored by Senator Aaron Reinhardt, R-Jenks, to strengthen oversight and increase transparency in the property and casualty insurance market has advanced through the Oklahoma Legislature and to the governor’s desk.

House Bill 3781 modernizes Oklahoma’s insurance rate filing system by transitioning the state from a “use-and-file” model to a “file-and-use” system. Under the measure, insurance carriers must submit proposed rate changes to the Oklahoma Insurance Department before those rates can take effect, providing regulators additional time to review filings and challenge excessive increases.

“This legislation is about protecting Oklahoma consumers while bringing more accountability and transparency to the insurance rate-setting process,” Senator Reinhardt said. “Families across our state are struggling with rising insurance premiums, and this measure gives the Insurance Commissioner stronger tools to review, scrutinize and potentially disapprove excessive rates before they impact policyholders. This bill will modernize Oklahoma’s rate-regulation framework without overregulating the industry. I appreciate Representative Stacy Jo Adams for helping get this bill through the process.” 

House Bill 3781 requires insurers in competitive markets to file rate changes and supporting information at least 30 days before rates take effect, while insurers in noncompetitive markets must file changes 60 days in advance. New rates may only take effect upon approval by the Insurance Commissioner or after the waiting period expires without objection.

The measure also strengthens provisions related to excessive rates by requiring the commissioner to formally notify insurers of objections and allow companies the opportunity to submit additional actuarial data before a final determination is made.

House Bill 3781 removes outdated distinctions between competitive and noncompetitive markets to ensure all rate filings receive equal scrutiny. The measure also enhances transparency by updating confidentiality provisions and allowing filed rates to be subject to greater public review.

Additionally, the bill requires the Insurance Department to publicly post notices of rate increases for private passenger automobile, homeowners’ multi-peril and dwelling fire policies on the department’s website, including the overall percentage increase.