Okla. Admin. Code § 365:10-5-72

Current through Vol. 42, No. 7, December 16, 2024

Section 365:10-5-72 - Prohibited practices and penalties

(a)Purpose. The purpose of this section is to specify those practices which are considered as either unfair methods of competition or excessive rate charges, and to prescribe penalties for violation of this Part.

(b)Unfair methods of competition. The following practices when engaged in either directly or by reciprocal agreement by an insurer or by any insurance agent in connection with the sale or placement of credit insurance as an inducement thereto, shall constitute unfair methods of competition:

(1) the offer or grant by an insurer or by any insurance agent to a creditor or to any person connected with the creditor of any special advantage on any service not set out in a contract entered into between that creditor and such insurer or agent;

(2) agreement by an insurer or by an insurance agent to deposit with a bank or financial institution money or securities of the insurer with the design or intent that the same shall affect or take the place of a deposit of money or securities which otherwise would be required of the creditor by such bank or financial institution as a compensating balance or offsetting deposit for a loan or other advancement;

(3) deposit as an inducement to insurance by an insurer or by an insurance agent of money or securities, at a rate of interest which is less than that prevailing rate of interest paid upon passbook savings accounts by a creditor bank or financial institution. This paragraph shall not be construed to prohibit the maintenance by an insurer of such demand deposit or premium deposit accounts as are reasonably necessary for use in the ordinary course of the insurer's business; and

(4) collection of the insurance charge by the creditor from the debtor on a single premium basis and remitted to the insurer by the creditor on any basis other than a single premium basis.

(c)Excessive rate charges. Any insurer who is determined by the Commissioner to have charged the presumptive or maximum premium rates set forth in this Part, while paying excessive compensation allowance or failing to comply with any of the requirements or conditions precedent to the charging of such rates, may be required to refund the premiums received in connection with policies for which the presumptive rate was wrongfully charged.

(d)Penalties or fines. Any insurer, agent, or limited insurance representative determined, after notice and opportunity for hearing, to be in violation of this Part is subject to the civil penalty provisions of the Oklahoma Insurance Code which are generally applicable to violations of the Oklahoma Insurance Code.

Okla. Admin. Code § 365:10-5-72

Amended at 10 Ok Reg 3049, eff 10-1-93; Amended at 10 Ok Reg 4235, eff 10-1-93 (emergency); Amended at 11 Ok Reg 1847, eff 5-15-94