Oklahoma Life Insurance Policy Requirements

Oklahoma law imposes specific requirements on life insurance policies sold in the state under Title 36 of the Oklahoma Statutes. These requirements protect consumers and ensure policy standardization.

Regulatory Authority

The Oklahoma Insurance Department (OID) regulates all insurance activities in the state:

• Headed by the Insurance Commissioner
• Founded in 1907 (statehood year)
• Reviews and approves policy forms
• Licenses insurance producers
• Investigates consumer complaints
• Enforces insurance laws and regulations

OID Divisions

Free Look Period

Oklahoma provides a free look period for life insurance:

During the free look period, the policyholder can:

• Review the policy
• Return it for a full refund of premiums paid
• No questions asked, no penalty

Exam Tip: Oklahoma provides a 10-day free look period for life insurance policies.

Incontestability Clause

Oklahoma requires a 2-year incontestability clause in all life insurance policies:

• After 2 years from issue, the insurer cannot contest the policy based on misstatements
• Exceptions: Fraud, non-payment of premiums
• Protects beneficiaries from claim denials based on application errors

Oklahoma-Specific Rules

• Incontestability period begins from the issue date
• If policy lapses and is reinstated, a new 2-year period begins
• Material fraud may still be contested in certain circumstances

Suicide Clause

Oklahoma limits the suicide exclusion:

• Suicide exclusion cannot exceed 2 years from policy issue
• After 2 years, death by suicide is covered
• If policy is reinstated, new 2-year period may apply
• Benefits limited to return of premiums if death is within exclusion period

Beneficiary Protections

Oklahoma has specific beneficiary protection laws:

Divorce and Beneficiary Designations

Oklahoma has addressed beneficiary designations after divorce:

• The Oklahoma Supreme Court has ruled on life insurance beneficiaries and divorce
• Beneficiary designations may be affected by divorce decrees
• Important to update beneficiary designations after major life events

Unclaimed Life Insurance Benefits

Oklahoma requires insurers to:

• Cross-check policies against the Social Security Death Master File
• Make reasonable efforts to locate beneficiaries
• Initiate claims process when death is confirmed
• Cannot charge fees for locating beneficiaries

Unclaimed Property

If beneficiaries cannot be found:

• Death benefits are not forfeited
• Must be reported as unclaimed property to the state
• Beneficiaries can still claim from the state

Policy Delivery Requirements

Oklahoma requires:

• Policy delivered within reasonable time of issue
• Delivery must include policy summary
• Receipt should be documented
• Electronic delivery permitted with consent

Grace Period

Oklahoma life insurance policies must include:

Reinstatement Rights

Oklahoma policyholders have reinstatement rights:

• May reinstate within 3 years of lapse
• Must provide evidence of insurability
• Must pay back premiums with interest
• New contestability period may begin

Standard Policy Provisions

Oklahoma requires these standard provisions in life insurance policies:

• Entire contract clause
• Misstatement of age adjustment
• Grace period
• Incontestability clause
• Suicide exclusion (2-year maximum)
• Reinstatement provisions