Oklahoma Insurance Department (DOI) Issues Special Notice on Reduction in Coverage During Renewal

Oklahoma Insurance Department (DOI) Issues Special Notice on Reduction in Coverage During Renewal

 

On February 28, 2022, the Oklahoma Insurance Department (DOI) issued a Special Notice to all Property and Casualty insurers authorized to do business within the state, outlining a specific consumer notice requirement for policy renewals.  The DOI previously issued a bulletin with this information on January 6, 2022 (formerly titled “Bulletin No. PC 2022-01”), but it was ultimately withdrawn.  Notably, the Special Notice includes an added definition for a “triggering event,” providing greater clarity for the requirement.

According to the Special Notice, “Upon renewal of an existing policy, each Oklahoma policyholder must receive notice stating any policy provision that has changed which eliminates or restricts coverage due to a ‘triggering event.’ The policy language changed must be included in the notice, printed in all capital letters, using bold or red font.”  

It further defines a “triggering event” as “any occurrence that eliminates or reduces coverage offered during the prior policy term” and provides examples of such an event, including, but not limited to, injury, unemployment, age, retirement, or accident.

The DOI’s intent for the new requirement is to promote visibility of policy changes during the renewal process that reduce or end the consumers’ coverage.

Questions applicable to this bulletin should be directed to: Bo DeBose, Legal Division, at Bo.DeBose@oid.ok.gov.

 

Link to Bulletin