Okla. Stat. tit. 36, § 36-961

tornado or other wind events.

A. Commencing on April 1, 2018, insurance companies shall

provide a premium discount or insurance rate reduction in an amount

and manner as established in subsection D of this section and

pursuant to Section 3 of this act only when the company determines

that the premium discount or rate reduction is actuarially justified

and there is sufficient and credible evidence of cost savings, which

can be attributed to the construction standards set forth in

subsection B of this section. A premium discount or rate reduction

shall be available under the terms specified in this section to any

owner who builds or locates a new insurable property in the State of

Oklahoma to resist loss due to tornado or other catastrophic

windstorm events. Insurance companies shall be required to offer

such a premium discount or rate reduction only when the insurer

determines they are actuarially justified and there is sufficient

and credible evidence of cost savings, which can be attributed to

the construction standards set forth in subsection B of this

section. In addition, insurance companies may also offer additional

adjustments in deductible, other risk differentials, or a

combination thereof, collectively referred to as other adjustments.

B. To obtain the premium discount, rate reduction, or other

adjustment provided in this section, an insurable property located

in this state shall be certified as constructed in accordance with

Appendix Y of the 2015 Oklahoma Uniform Building Code, as amended,

including all tornado mitigation construction requirements, as long

as its standards are equal to or greater than the FORTIFIED Home

High Wind and Hail Standards as certified by the Institute for

Business and Home Safety (IBHS), or the FORTIFIED Home High Wind and

Hail Standards as may from time to time be adopted by the Institute

for Business and Home Safety or successor entity. An insurable

property shall be certified as conforming to the applicable building

code only after an inspection of the insurable property has been

satisfactorily completed by a certified or licensed building

inspector and certified to be conforming to the applicable building

code including all high wind and hail mitigation construction

requirements. An insurable property shall be certified as

conforming to the FORTIFIED Home High Wind and Hail Standards only

after evaluation and certification by an evaluator certified

pursuant to the FORTIFIED Home High Wind and Hail Standards.

Oklahoma Statutes - Title 36. Insurance Page 220

C. An owner of insurable property claiming a premium discount,

rate reduction, or other adjustment pursuant to this section shall

maintain sufficient certification records and construction records

including, but not limited to, a certification of compliance with

the applicable building code or the FORTIFIED Home High Wind and

Hail Standards provided in subsection B of this section, receipts

from contractors, receipts for materials and records from local

building officials. The records shall be subject to audit by the

Insurance Commissioner, or his or her representatives, and copies of

any such records shall be presented to the insurer or potential

insurer of a property owner before the premium discount, rate

reduction, or other adjustment becomes effective for the insurable

property.

D. Insurers that write policies that are subject to the premium

discount or rate reduction in this section and that are required to

submit rates and rating plans to the Commissioner pursuant to

Section 987 of Title 36 of the Oklahoma Statutes shall submit a

rating plan certified by their actuary as actuarially justified

providing for the premium discount or rate reduction described in

this section. An insurer is not required to provide the same amount

of premium discount, rate reduction, or other adjustment for a

building code insurable property as the insurer would to an
rsuant to

Section 987 of Title 36 of the Oklahoma Statutes shall submit a

rating plan certified by their actuary as actuarially justified

providing for the premium discount or rate reduction described in

this section. An insurer is not required to provide the same amount

of premium discount, rate reduction, or other adjustment for a

building code insurable property as the insurer would to an

insurable property conforming to the FORTIFIED Home High Wind and

Hail Standards. A premium discount, rate reduction, or other

adjustment shall only apply to policies that provide wind or hail

coverage and to that portion of the premium for wind or hail

coverage. A premium discount, rate reduction, or other adjustment

shall apply exclusively to the wind and hail premium applicable to

improved insurable property. If an insurer already offers an

actuarially justified hail resistance discount, that hail-related

discount shall be deemed as having met the requirements of this act

as it pertains to hail-related discounts or rate reductions and no

additional hail-related discount or rate reduction shall be

required. If an insurer already offers an actuarially justified

discount for IBHS FORTIFIED Home standards, that discount shall be

deemed as having met the requirements of this act as it pertains to

wind-related discounts or rate reductions and no additional wind-

related discount or rate reduction shall be required. Insurers

shall apply any applicable premium discount, rate reduction or other

adjustment to the wind and hail premium at the policy renewal that

follows the submission of the certification to the insurer. At the

time of a policy renewal for which a premium discount, rate

reduction, or other adjustment has previously been made, the insurer

may request documentation or recertification that the fortified

standards as described in subsection C of this section continue to

be met. In addition to the requirements of this section, an insurer

Oklahoma Statutes - Title 36. Insurance Page 221

may voluntarily offer any other mitigation adjustment that the

insurer deems appropriate.