HB 2748 Summary

• Requires domestic title insurers operating in Oklahoma to establish and maintain a statutory premium reserve, treating it as an unearned portion of premiums and a reserve liability.

• Title insurers with annual gross premiums of $20 million or more must maintain a minimum 5% statutory premium reserve; smaller insurers may elect to maintain reserves equal to their IBNR (incurred but not reported) plus ULAE (unallocated loss adjustment expense) reserves.

• Mandates a 20-year reduction schedule for reserve additions, with reductions ranging from 35% in year one down to 1% annually in years 11-20.

• Allows companies with less than $20 million in annual premiums to voluntarily transition to the 5% reserve standard, and requires mandatory transition if they later exceed the $20 million threshold.

• Reserves must be held in cash or admissible securities and can be used to protect title insurance holders in case of insurer insolvency; effective November 1, 2014.