Oklahoma has taken a significant step in updating its insurance regulations with the passage of House Bill 1498. This new legislation introduces major changes to the state’s insurance code, focusing on data security and the regulation of prepaid funeral benefits. The bill is set to go into effect on November 1, 2025.
One of the key aspects of this bill is the requirement for insurance companies to create a detailed information security program. This program must be tailored to fit the size and risks of each company. Insurers will need to conduct regular risk assessments, assign responsible personnel, and implement necessary safeguards to protect sensitive information. Companies based in Oklahoma will also have to provide an annual compliance certification to the Insurance Commissioner by April 15 and keep records for five years.
Additionally, the law establishes a clear framework for responding to cybersecurity incidents. This includes planning for responses, ensuring oversight from company boards, maintaining audit trails, managing third-party vendors, and training staff. These measures aim to enhance consumer data protection in the insurance sector.
For funeral service providers, the bill tightens the rules around offering prepaid funeral benefits. Key changes include the requirement for electronic submission of applications and renewals to the Insurance Department, strict deadlines with penalties for late submissions, and mandatory reporting on permit transfers and trust fund details. The penalties for operating without a valid permit have also increased, with potential fines and even felony charges for serious violations.
Furthermore, the bill clarifies that prepaid funeral contracts can be funded through life insurance or fixed annuities. It also outlines how the funds should be distributed or refunded. Funeral providers will need to submit annual financial reports by March 15, keep historical price lists for six years, and respond to inquiries from the commissioner within 20 days.
The enforcement authority has also been expanded. The Insurance Commissioner can now suspend or revoke permits and seek receivership in cases of noncompliance. Violations may lead to disciplinary actions from the Oklahoma Funeral Board.
House Bill 1498 was approved by the House of Representatives on March 24, 2025, and by the Senate on April 28, 2025. It is now awaiting final procedural steps before becoming law. These changes are expected to significantly impact how insurance companies and funeral providers operate in Oklahoma, emphasizing the importance of compliance and consumer protection.