HB 2073 Summary

• Creates the Unauthorized Insurers and Surplus Lines Insurance Act codified as Sections 1100-1121 of Title 36, establishing comprehensive regulations for nonadmitted insurance and surplus lines transactions in Oklahoma.

• Requires surplus lines insurance transactions to be conducted only through licensed surplus lines brokers or licensees; prohibits unlicensed individuals from representing nonadmitted insurers or collecting premiums.

• Establishes financial requirements for surplus lines insurers including minimum capital and surplus of $15 million, with exceptions allowing approval by the Insurance Commissioner for insurers with at least $4.5 million capital and surplus based on specific criteria.

• Authorizes the Insurance Commissioner to enter into the Nonadmitted Insurance Multi-State Agreement to facilitate collection, allocation, and disbursement of premium taxes through a central clearinghouse with uniform reporting methods.

• Implements a 6% surplus lines premium tax on nonadmitted insurance where Oklahoma is the home state, with quarterly filing and payment requirements; allows exempt commercial purchasers meeting specific net worth, revenue, or employee thresholds to place insurance without due diligence requirements.