For Oklahoma policyholders affected by storms

Oklahoma commissioner Glen Mulready has issued Insurance Bulletin 2019-EXEC-01 on May 24, 2019, titled Bulletin No. 2019-Exec-01 Flood, requesting insurance companies allow coverage to remain in effect for any Oklahoma insured who resides in a zip code where a disaster has been declared.   All seventy-seven (77) Oklahoma counties are declared a disaster, however the bulletin is only applicable to insureds residing in a zip code shown in Attachment A (“affected areas”), which is contained in the attachment above.

Bulletin No. 2019-EXEC-01 Flood 05-24-2019 2

190531 OK Flood Bulletin Amended

OK Revised Bulletin

Bulletin 2019-EXEC-01 mentions allowing coverage to remain in force for those insureds residing in a zip code where a disaster has been declared and who have had their ability to make timely payments or respond to an insurer materially affected by flood.  Coverage for insureds in the affected zip codes should remain in effective until the Bulletin expires. Insureds should not cancel, nonrenew, or terminate coverage during this time period. 

Insurers may not increase the premium of any homeowner’s insurance policy or any other personal residential insurance coverage, which has been in effective more than forty-five (45) days, solely because the insured filed a first claim against the policy.   

An unusual piece of this bulletin is, Insurers shall not implement any rate increase for policyholders in the affected areas while this Bulletin remains in effective unless such rate increase was filed with the Department prior to issuance of this Bulletin.  The coverage will remain in effective at the previously established rate. What does this mean to us?  No impact as our most recent Personal Auto rate revisions were filed prior to May 24th and are not effective until 10-1-2019.

Also a data call has been issued which Actuarial Services will need to respond to in two weeks.

The attached Bulletin 19-01 contains pertinent details as follows:

  1. The Disaster Emergency order was issued on May 24, 2019, and expires on June 23, 2019, unless extended by the commissioner.
  2. Insureds in the affected area may request and obtain a copy of their insurance policy for free.
  3. The bulletin applies to All personal and commercial lines of business.
  4. The Impacted Areas are the zip codes as identified in Attachment A (in the attachment above.