Okla. Stat. tit. 36, § 36-989

Improper Rates; Disapproval; Hearing.

A. Basis for disapproval.

1. The Commissioner shall disapprove a rate in a competitive

market only if the Commissioner finds, pursuant to subsection B of

this section, that the rate is inadequate or unfairly discriminatory

pursuant to Section 985 of this title.

2. The Commissioner may disapprove a rate for use in a

noncompetitive market only if the Commissioner finds, pursuant to

subsection B of this section, that the rate is excessive, inadequate

or unfairly discriminatory under this subsection.

B. Procedures for disapproval.

1. Prior to the expiration of a waiting period or an extension

thereof, made pursuant to subsection B of Section 987 of this title,

the Commissioner may disapprove, by written order, rates filed

pursuant to subsection B of Section 987 of this title with a

hearing. The order shall specify in what respects the filing fails

to meet the requirements of this act. Any insurer whose rates are

disapproved pursuant to this section shall be given a hearing upon

written request made within thirty (30) days of disapproval.

2. If, at any time, the Commissioner finds that a rate

applicable to insurance sold in a noncompetitive market does not

comply with the standards set forth in Section 985 of this title,

the Commissioner may, after a hearing held upon not less than twenty

(20) days’ written notice, issue an order pursuant to subsection C

of this section, disapproving such rate. The hearing notice shall

be sent to every insurer and advisory organization that adopted the

rate and shall specify the matters to be considered at the hearing.

The disapproval order shall not affect any contract or policy made

or issued prior to the effective date set forth in the order.

Oklahoma Statutes - Title 36. Insurance Page 237

3. If, at any time, the Commissioner finds that a rate

applicable to insurance sold in a competitive market is inadequate

or unfairly discriminatory under paragraph 2 or 3 of subsection A of

Section 985 of this title, the Commissioner may issue an order

pursuant to subsection C of this section disapproving the rate. The

order shall not affect any contract or policy made or issued prior

to the effective date set forth in the order.

C. Order of disapproval.

If the Commissioner disapproves a rate pursuant to subsection B

of this section, the Commissioner shall issue an order within thirty

(30) days of the close of the hearing specifying in what respects

the rate fails to meet the requirements of this act. The order

shall state an effective date no sooner than thirty (30) business

days after the date of the order when the use of the rate shall be

discontinued. This order shall not affect any policy made before

the effective date of the order.

D. Appeal of orders and establishment of reserves.

If an order of disapproval is appealed pursuant to Section 990

of this title, the insurer may implement the disapproved rate upon

notification to the court, in which case any excess of the

disapproved rate over a rate previously in effect shall be placed in

a reserve established by the insurer. The court shall have control

over the disbursement of funds from such reserve. The funds shall

be distributed as determined by the court in its final order except

that de minimus refunds to policyholders shall not be required.

E. All determinations made by the Commissioner under this

section shall be on the basis of findings of fact and conclusions of

law.