Okla. Stat. tit. 36, § 36-962: Premium discount or rate reduction for resistance to

tornado or other wind events for retrofit properties.

A. Commencing on April 1, 2018, insurance companies shall

provide a premium discount or insurance rate reduction in an amount

and manner as established in subsection D of this section and

pursuant to Section 3 of this act only when the company determines

that the premium discount or rate reduction is actuarially justified

and there is sufficient and credible evidence of cost savings, which

can be attributed to the construction standards set forth in

subsection B of this section. A premium discount or rate reduction

shall be available under the terms specified in this section to any

owner who retrofits his or her insurable property located in the

State of Oklahoma to resist loss due to tornado or other

catastrophic windstorm events. Insurance companies shall be

required to offer a premium discount or rate reduction only when the

insurer has deemed the adjustments to be actuarially justified and

there is sufficient and credible evidence of cost savings, which can

be attributed to the construction standards set forth in subsection

B of this section. In addition, insurance companies may also offer

additional adjustments in deductible, other risk differentials, or a

combination thereof, collectively referred to as other adjustments.

B. To obtain the premium discount, rate reduction, or other

adjustment provided in this section, an insurable property shall be

retrofitted to the FORTIFIED Home High Wind and Hail Standards, as

may from time to time be adopted by the Institute for Business and

Home Safety (IBHS). Wind-Zone-3-HUD-Code manufactured homes

installed on a permanent foundation and retrofitted as defined in

the FORTIFIED Home High Wind and Hail Standards, as may from time to

time be adopted by the Institute for Business and Home Safety, shall

be eligible for the premium discount or rate reduction provided in

this section. An insurable property shall be certified as

conforming to FORTIFIED Home High Wind and Hail Standards only after

evaluation and certification by an evaluator certified pursuant to

the FORTIFIED Home High Wind and Hail Standards.

C. An owner of insurable property claiming a premium discount,

rate reduction, or other adjustment pursuant to this section shall

maintain sufficient certification records and construction records

including, but not limited to, a certification of compliance with

the FORTIFIED Home High Wind and Hail Standards as provided in

subsection B of this section, receipts from contractors, and

receipts for materials. The records shall be subject to audit by

the Insurance Commissioner, or his or her representatives, and

copies of any such records shall be presented to the insurer or

potential insurer of a property owner before the premium discount,

rate reduction, or other adjustment becomes effective for the

insurable property.

D. Insurers that write policies that are subject to the premium

discount or rate reduction in this section and that are required to

submit rates and rating plans to the Commissioner pursuant to

Section 987 of Title 36 of the Oklahoma Statutes shall submit rating

plans certified by their actuary as actuarially justified providing

for the premium discounts or rate reductions described in this

section. A premium discount, rate reduction, or other adjustment

shall only apply to policies that provide wind or hail coverage and

to that portion of the premium for wind or hail coverage. A premium

discount, rate reduction, or other adjustment shall apply

exclusively to the wind and hail premium applicable to improved

insurable property. If an insurer already offers an actuarially

justified hail resistance discount, that hail-related discount shall

be deemed as having met the requirements of this act as it pertains

to hail-related discounts or rate reductions and no additional hail-

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discount, rate reduction, or other adjustment shall apply

exclusively to the wind and hail premium applicable to improved

insurable property. If an insurer already offers an actuarially

justified hail resistance discount, that hail-related discount shall

be deemed as having met the requirements of this act as it pertains

to hail-related discounts or rate reductions and no additional hail-

related discount or rate reduction shall be required. If an insurer

already offers an actuarially justified discount for IBHS FORTIFIED

Home standards, that discount shall be deemed as having met the

requirements of this act as it pertains to wind-related discounts or

rate reductions and no additional wind-related discount or rate

reduction shall be required. Insurers shall apply the premium

discount, rate reduction, or other adjustment to the wind premium at

the policy renewal that follows the submission of the certification

to the insurer. At the time of a policy renewal for which a premium

discount, rate reduction, or other adjustment has previously been

made, the insurer may request documentation or recertification that

the fortified standards as described in subsection C of this section

continue to be met. In addition to the requirements of this

section, an insurer may voluntarily offer any other mitigation

adjustment that the insurer deems appropriate.