Okla. Stat. tit. 36, § 36-3639

policies - Definitions - Notice and reasons for cancellation or

nonrenewal - Notice of premium increases.

A. The provisions of this section apply to commercial marine

policies, commercial automobile policies, commercial property

insurance policies, commercial casualty insurance policies, and

commercial fire insurance policies.

B. As used in this section:

1. “Renewal” or “to renew” means the issuance or offer of

issuance by an insurer of a policy succeeding a policy previously

issued and delivered by the same insurer or an insurer within the

same group of insurers, or the issuance of a certificate or notice

extending the term of an existing policy for a specified period

beyond its expiration date;

2. “Nonpayment of premium” means the failure or inability of

the named insured to discharge any obligation in connection with the

payment of premiums on a policy of insurance subject to this

section, whether such payments are payable directly to the insurer

or its agent or indirectly payable under a premium finance plan or

extension of credit;

3. “Cancellation” means termination of a policy at a date other

than its expiration date;

4. “Expiration date” means the date upon which coverage under a

policy ends. It also means, for a policy written for a term longer

Oklahoma Statutes - Title 36. Insurance Page 812

than one (1) year or with no fixed expiration date, each annual

anniversary date of such policy; and

5. “Nonrenewal” or “refusal to renew” means termination of a

policy at its expiration date.

C. After coverage has been in effect for more than forty-five

(45) business days or after the effective date of the renewal of a

commercial marine, commercial automobile, commercial property,

commercial casualty or commercial fire insurance policy, a notice of

cancellation shall not be issued by any licensed insurer or surplus

or excess lines insurer unless it is based on at least one of the

following reasons with at least ten (10) days’ notice to the

insured:

1. Nonpayment of premium;

2. Discovery of fraud or material misrepresentation in the

procurement of the insurance or with respect to any claims submitted

thereunder;

3. Discovery of willful or reckless acts or omissions on the

part of the named insured which increase any hazard insured against;

4. The occurrence of a change in the risk which substantially

increases any hazard insured against after insurance coverage has

been issued or renewed;

5. A violation of any local fire, health, safety, building, or

construction regulation or ordinance with respect to any insured

property or the occupancy thereof which substantially increases any

hazard insured against;

6. A determination by the Commissioner that the continuation of

the policy would place the insurer in violation of the insurance

laws of this state;

7. Conviction of the named insured of a crime having as one of

its necessary elements an act increasing any hazard insured against;

or

8. Loss of or substantial changes in applicable reinsurance.

D. An insurer may refuse to renew a policy if the insurer gives

to the first-named insured at the address shown on the policy

written notice that the insurer will not renew the policy. Such

notice shall be given at least forty-five (45) days before the

expiration date. Notice may be sent by electronic means if the

recipient consents to such method of delivery and the insurer is in

compliance with the provisions of the Uniform Electronic

Transactions Act. Electronic delivery is considered to be

equivalent to any delivery method required by law, including first-

class mail, postage prepaid, certified mail, certificate of mail, or

certificate of mailing. If notice is given by mail or sent by

electronic means, such notice shall be deemed to have been given on

the day the notice is mailed or sent electronically. If the notice

is mailed or sent electronically less than forty-five (45) days
uivalent to any delivery method required by law, including first-

class mail, postage prepaid, certified mail, certificate of mail, or

certificate of mailing. If notice is given by mail or sent by

electronic means, such notice shall be deemed to have been given on

the day the notice is mailed or sent electronically. If the notice

is mailed or sent electronically less than forty-five (45) days

before expiration, coverage shall remain in effect until forty-five

Oklahoma Statutes - Title 36. Insurance Page 813

(45) days after notice is mailed or sent electronically. Earned

premium for any period of coverage that extends beyond the

expiration date shall be considered pro rata based upon the previous

year’s rate. For purposes of this section, the transfer of a

policyholder between companies within the same insurance group is

not a refusal to renew. In addition, changing deductibles, changes

in premium, changes in the amount of insurance, or reductions in

policy limits or coverage are not refusals to renew.

Notice of nonrenewal shall not be required if the insurer or a

company within the same insurance group has offered to issue a

renewal policy, or if the named insured has obtained replacement

coverage or has agreed in writing to obtain replacement coverage.

If an insurer provides the notice required by this subsection

and thereafter the insurer extends the policy for ninety (90) days

or less, an additional notice of nonrenewal is not required with

respect to the extension.

E. An insurer shall give to the named insured at the mailing

address shown on the policy, written notice of premium increase,

change in deductible, reduction in limits or coverage at least

forty-five (45) days prior to the expiration date of the policy. If

the insurer fails to provide such notice, the premium, deductible,

limits and coverage provided to the named insured prior to the

change shall remain in effect until notice is given or until the

effective date of replacement coverage obtained by the named

insured, whichever first occurs. If notice is given by mail, such

notice shall be deemed to have been given on the day the notice is

mailed. If the insured elects not to renew, any earned premium for

the period of extension of the terminated policy shall be calculated

pro rata at the lower of the current or previous year’s rate. If

the insured accepts the renewal, the premium increase, if any, and

other changes shall be effective the day following the prior

policy’s expiration or anniversary date.

This subsection shall not apply to:

1. Changes in a rate or plan filed with or approved by the

Insurance Commissioner or filed pursuant to the Property and

Casualty Competitive Loss Cost Rating Act and applicable to an

entire class of business;

2. Changes based upon the altered nature of extent of the risk

insured; or

3. Changes in policy forms filed with or approved by the

Insurance Commissioner and applicable to an entire class of

business.

F. Proof of mailing of notice of cancellation, or of nonrenewal

or of premium or coverage changes, to the named insured at the

address shown in the policy, shall be sufficient proof of notice.