Oklahoma § 36-4809 - Reduced rates to persons failing or refusing to pay

§ 36-4809. Reduced rates to persons failing or refusing to pay

assessments - Violation – Penalties.

A. Except as otherwise provided in this subsection, no property

or casualty insurance company shall give any special or reduced rate

for fire insurance on any risk because it is located in a rural fire

protection district or in an area protected by a rural fire

department in which the district or department is wholly or

partially funded by dues or subscription payments paid by owners of

property who are members of an association supporting the rural fire

department to any person who fails or refuses to pay the appropriate

Oklahoma Statutes - Title 36. Insurance

dues or subscription payments for support of the district or

department pursuant to the procedure outlined in subsection C of

this section. Property and casualty insurance companies providing a

fire run service benefit payment within the fire insurance policy

shall not be subject to this subsection.

B. Property owners owning property in more than one fire

district or fire department area relying on dues or subscriptions

for partial or complete funding shall pay dues to a fire district or

fire department in whose district or area they own property if they

wish to receive special or reduced rates for property and casualty

insurance.

C. Except as otherwise provided in this subsection, it is

unlawful for any insurance agent or company to knowingly write an

initial policy of fire insurance coverage on any risk located in a

rural fire protection district or in any area protected by a rural

fire department at any special or reduced rate or with any rate

credit based on location of the risk in the district or area without

having first obtained from the insured or from the rural fire

protection district or rural fire department evidence that current

dues or subscription payments, if any, for the property to be

insured have been paid. Following the writing of the initial

policy, the insurance agent or company shall obtain evidence of

successful payment of current dues or subscription payments

annually. The evidence required by the insurer may be a receipt,

canceled check, or other valid proof of payment. Any insurance

agent or company writing a policy of fire insurance coverage

providing a fire run service benefit payment within the fire

insurance policy shall not be subject to this subsection.

D. If any agent is found by the Insurance Commissioner to have

violated the provisions of this subsection, the agent shall be

liable for an administrative penalty of Twenty-five Dollars ($25.00)

for the first violation and Fifty Dollars ($50.00) for any

subsequent violation.

Added by Laws 2002, c. 68, § 1, eff. Nov. 1, 2002. Amended by Laws

2003, c. 235, § 1, eff. Nov. 1, 2003; Laws 2017, c. 317, § 1, eff.

Nov. 1, 2017.