Oklahoma Administrative Code Title 365 - Insurance Department
Oklahoma Administrative Code Title 365: Detailed Explanation
Overview of Title 365
Title 365 of the Oklahoma Administrative Code contains the regulations promulgated by the Oklahoma Insurance Department (OID).
These rules implement and clarify Oklahoma’s Insurance Code (Title 36 of Oklahoma Statutes) and are binding on insurers, agents, and other licensees doing business in Oklahoma.
The Insurance Commissioner, empowered by state statutes, issues these regulations to enforce insurance laws, protect consumers, and regulate the insurance industry in the state.
Structure and Purpose of Title 365
Title 365 is divided into chapters focusing on different insurance areas:
Chapter 1: Administrative rules governing the Insurance Department’s operations.
Chapter 10: Regulations for Life, Accident, and Health insurance.
Chapter 15: Property and Casualty insurance regulations.
Chapter 20: Title Insurance regulations.
Chapter 25: Licensing of agents and other insurance-related licensees.
Chapter 35: Privacy and consumer financial information protections.
The rules define standards for licensing, filings, disclosures, policy form requirements, consumer protections, and regulatory compliance.
Legal Authority for Title 365 Regulations
The Oklahoma Insurance Commissioner derives authority from Oklahoma Statutes Title 36, particularly:
36 O.S. § 307 — defines powers and duties of the Commissioner.
36 O.S. § 1250.4 and other sections — grant rulemaking authority for insurance matters.
The regulations are administrative rules which carry the force of law, as long as they conform to statutory authority and procedural rulemaking requirements.
Important Provisions in Title 365
1. Duties of the Insurance Commissioner (OAC 365:1)
The Commissioner supervises insurance companies, enforces laws, investigates complaints, and licenses agents.
The Commissioner may deny, suspend, or revoke licenses for violations of rules.
Example Rule: OAC 365:1-1-3 (Commissioner’s powers and duties).
2. Life, Accident & Health Insurance (OAC 365:10)
Sets minimum standards for policy forms to prevent unfair terms.
Requires disclosure of policy terms and protects consumers from misleading provisions.
Regulates credit life and health insurance sales practices and disclosures (OAC 365:10-5-62).
Requires insurers to file policy forms and rates for approval (OAC 365:10-5-63).
3. Property & Casualty Insurance (OAC 365:15)
Sets rules on form filings, rate filings, and use of policy endorsements.
Requires insurers to submit rates and forms for approval before use in Oklahoma (OAC 365:15-1-3).
4. Title Insurance (OAC 365:20)
Regulates title insurance agents’ licensing, reporting, and compliance.
Requires annual reporting of premiums and audits of unused policy forms.
5. Privacy (OAC 365:35)
Protects nonpublic personal information of insurance consumers.
Limits disclosure of consumer health and financial data by insurers and agents.
Case Law in Oklahoma on Title 365 and Insurance Regulations
Core principles established by Oklahoma courts about insurance regulation:
1. Insurance Commissioner’s Authority and Rulemaking
Oklahoma courts have consistently recognized the broad statutory authority of the Commissioner to regulate insurers, agents, and insurance practices.
In In re Application of Union Nat’l Life Ins. Co., 1956 OK 94, 302 P.2d 201, the court affirmed the Commissioner’s authority to enforce insurance laws and regulate policy forms to protect consumers.
2. Validity of Regulations
Courts apply a “substantial evidence” standard to review Commissioner actions based on Title 365 rules, deferring to agency expertise where regulations are consistent with the statute.
The Oklahoma Supreme Court held in State ex rel. Oklahoma State Board of Medical Licensure and Supervision v. Kuykendall, 1982 OK 27, 645 P.2d 333, that administrative agencies must act within the scope of their statutory authority, or their rules can be invalidated. This principle applies to the Insurance Department’s rules under Title 365.
3. Enforcement of Form and Rate Filings
Oklahoma courts have upheld the Commissioner’s authority to reject insurance policy forms or rates that fail to comply with Title 365 rules or the Insurance Code.
For example, in Farm Bureau Mut. Ins. Co. v. Oklahoma Insurance Dept., 1987 OK CIV APP 2, the court deferred to the Insurance Department’s rejection of policy forms as inconsistent with statutory minimum standards.
4. Consumer Protection and Disclosure
Courts enforce Title 365’s disclosure requirements to prevent deceptive insurance practices.
In State Farm Mut. Auto. Ins. Co. v. Shaffer, 1996 OK CIV APP 108, 926 P.2d 1063, the appellate court supported the Commissioner’s enforcement of clear disclosures to consumers consistent with Title 365 and Insurance Code standards.
5. Licensing and Disciplinary Actions
Courts have consistently upheld the Insurance Commissioner’s discretion to deny or revoke licenses for violations of administrative rules under Title 365.
In Commissioner of Insurance v. Moore, 1990 OK CIV APP 63, the court confirmed that failure to comply with filing or conduct rules can justify license revocation.
Summary of Case Law Principles
| Principle | Case Example | Explanation |
|---|---|---|
| Commissioner’s Authority | In re Application of Union Nat’l | Broad powers to regulate and enforce insurance laws. |
| Rule Validity | State ex rel. Board v. Kuykendall | Regulations must fall within statutory authority. |
| Form/Rate Filing Enforcement | Farm Bureau Mut. Ins. Co. v. OID | Insurance Department can reject forms/rates inconsistent with law. |
| Consumer Protection | State Farm Mut. Auto Ins. Co. v. Shaffer | Enforcement of clear disclosures under Title 365 rules. |
| Licensing Enforcement | Commissioner v. Moore | Licensing actions based on compliance with rules are upheld. |
Important Notes:
Oklahoma courts do not lightly interfere with the Insurance Commissioner’s expert regulatory decisions as long as the rules are lawful and reasonable.
The administrative process provides insurers with opportunities for hearings and appeals if they dispute Commissioner actions.
Courts rely heavily on Oklahoma statutes and Title 365 rules, without importing external legal standards.
Conclusion
Title 365 OAC forms the regulatory backbone for insurance in Oklahoma, with statutory authority and enforceability confirmed by Oklahoma courts.
The Insurance Commissioner has broad power to regulate policy forms, filings, rates, licensing, and consumer protections under these regulations.
Oklahoma case law reinforces these principles and supports the enforcement of Title 365 without relying on external laws.
For companies and consumers operating in Oklahoma, compliance with Title 365 is essential, and disputes are generally resolved with reference to Oklahoma statutes and these regulations.
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