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HB 1497

Insurance; registration of insurers; report; Liquidity Stress Test; confidential documents; information; trade secrets; effective date.

2026 Regular Session Introduced by Aaron Reinhardt and 1 co-sponsor

Oklahoma requires insurers to conduct liquidity stress tests and report findings confidentially to regulators, shielding results from public disclosure as trade secrets.

Becomes law without Governor's signature 05/18/2025
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Bill Summary · HB 1497

Legislative bill overview

HB 1497 establishes a liquidity stress test requirement for insurance companies operating in Oklahoma and creates a framework for reporting these results to state regulators. The bill designates stress test documents and related information as confidential trade secrets, protecting them from public disclosure under state open records laws.

Why is this important

Liquidity stress tests help regulators assess whether insurers can survive financial crises and meet policyholder obligations during market downturns. This is critical consumer protection, especially given recent insurance market volatility. The confidentiality provision balances regulatory oversight with insurers' competitive interests, though it limits public transparency about financial stability assessments.

Potential points of contention

  • Confidentiality concerns: Shielding stress test results from public view may prevent consumers and market analysts from independently assessing insurer solvency, potentially hiding warning signs of financial distress
  • Regulatory effectiveness: Strong confidentiality protections could reduce the deterrent effect of public accountability and make it harder for policymakers to identify systemic insurance market risks
  • Competitive disadvantage for smaller insurers: Larger insurers may have superior compliance resources, making the reporting burden disproportionately burdensome for smaller competitors

Compiled from official sources — confirm details with the bill’s official record.

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