New insurance law looks to add transparency around your bill

OKLAHOMA CITY (KFOR) — For the past several years, homeowners have watched as insurance costs go higher and higher.

A new bill signed into law aims to provide transparency around the price you pay.

This new law requires insurance companies submit their proposed rates 30-60 days before they go into effect, along with why they are making a change.

The Oklahoma insurance commissioner would review them and have the final say on if they can take effect or not.

However, the lawmaker behind this measure says there is no guarantee you will see lower bills.

"I discovered that Oklahoma is one of the few states that allows insurance companies to raise rates and then file with the insurance commissioner after the fact," said Rep. Stacy Adams, (R) Duncan.

Rep. Adams was shocked to learn this even though she has been in the insurance business for nearly 20 years.

"Homeowners insurance in the last probably 4 to 5 years has just really gone up a lot," said Rep. Adams.

She doesn't believe insurance companies should be able to increase their rates and immediately pass them down to homeowners without a review and explanation why.

"I thought maybe that's something that we could change in Oklahoma," said Rep. Adams. "If there is something that looks off now, the commissioner has the opportunity to, he has a mechanism to challenge those rates and ask for the data."

In response to rising insurance costs, State Insurance Commissioner Glen Mulready has told us multiple times in the past, he believes it is best to not intervene in Oklahoma's free market system.

Legislators look to tackle Oklahoma's high insurance rates

"I think the best thing that you can do to push back against excessive profits for the company is to maintain, do what you can to maintain a competitive free market and them competing against each other in the private marketplace," said Mulready.

However, even Rep. Adams says she felt the free market system getting a bit out of hand.

"It does give him power, if the math doesn't math, then he can ask for more data and challenge those things," said Rep. Adams.

However, this question now comes into play.

Will insurance companies up and leave Oklahoma if their rate proposals aren't approved.

"We look at the rates in Arkansas and the competition in Arkansas; their rates are far lower," said Rep. Adams. "I'm not saying that Oklahoma's going to follow that trend. I'm saying that we looked there and we didn't see carriers leaving Arkansas. We didn't see carriers leaving Kansas. "We make sure that we do something that is carefully calculated and thought out and keep that free market principle working. So, being able to raise the rates still exists. It's just we want to see the transparency."

The law will not go into effect until July 1st, 2027.

Rep. Adams says this gives both parties time to transition to the new standard.