Property And Casualty Insurance - Oklahoma

In a liability case, the second-party refers to the insurer. The insurer is the party that provides insurance coverage to the insured, who is the first-party. The insurer is responsible for compensating the insured for any injury or damage suffered, as per the terms of the insurance policy. Therefore, in a liability case, the insurer is the second-party involved.

A tort is a civil wrong that occurs when one person's actions or omissions cause harm or injury to another person, regardless of whether there was any intention to cause harm. It is a violation of someone's rights and can include various types of wrongful acts such as negligence, intentional misconduct, or strict liability. The term "tort" encompasses a wide range of legal claims, including personal injury, property damage, and defamation.

Federal employees are not exempt from Workers Compensation. Workers Compensation laws generally cover all employees, including federal employees, who suffer work-related injuries or illnesses. Therefore, the correct answer is False.

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180 days.

Whenever necessary, the Commissioner can examine an insurer's financial condition and dealings with policyowners.
All domestic insurers must be examined at least once every (5) years.
Every foreign insurer licensed in Oklahoma must be examined at least once every five years or the Commissioner may accept the examinations conducted by other states' insurance departments.
At the request of at least one person who has a financial interest in an insurer.

In the state of Oklahoma, a person who is 15 years old is legally allowed to purchase life and/or health insurance. This means that even though they are a minor, they have the ability to enter into insurance contracts and obtain coverage for themselves. It is important to note that insurance companies may have their own specific requirements and limitations for issuing policies to minors, but in general, this statement is true for Oklahoma.

The statement is false because being employed in agriculture or horticulture does not automatically exempt a person from Workers Compensation. Workers Compensation laws vary by jurisdiction, but generally, any employee who is injured or becomes ill while on the job is entitled to receive benefits, regardless of the industry they work in. Therefore, individuals employed in agriculture or horticulture are not exempt from Workers Compensation if they operate motorized machines.

36 O.S. Sec 1435.29; Reg. 365:25-3-1
Every two years, each insurance producer must complete a total of 24 continuing education hours, including:
three hours in ethics, including courses on fiduciary responsibility, commingling of funds, commissions, unfair claims practices, policy replacement, and conflichts of interest; and
two hours in state legislative updates or federal legislative updates

Closing the Sale is not related to the requirements, and is apparently not on the list of state approved courses.

36 O.S. 1435.21
A. The Commissioner shall not grant, renew, continue, or permit to continue any license if the Commissioner finds that the license is being or will be used by the applicant or licensee for the purpose of writing controlled business. "Controlled business" means:

a. insurance written on the interests of the licensee or those of his or her relatives to the second degree or of his or her employer, or

b. insurance covering the licensee or relatives of the licensee to the second degree or a corporation, association, or partnership of which the licensee or a member of the licensee’s immediate family is an officer, director, substantial stockholder, partner, associate, or employee, or the officers, directors, substantial stockholders, partners, or employees of such a corporation, association, or partnership. A vendor's or lender's interest in property sold or being sold pursuant to contract or which is security for any loan shall not be deemed for the purpose of this provision to constitute property or an interest of the vendor or lender.

B. A license shall be deemed to have been or intended to be used for the purpose of writing controlled business if the Commissioner finds that during any twelve-month period the aggregate commissions earned from controlled business has exceeded twenty-five percent (25%) of the aggregate commissions earned on all business written by the applicant or licensee during the same period.

C. The prohibitions contained in this section concerning licensing for the writing of controlled business shall not apply to title insurance producers and limited lines producers.

36 O.S. Sec. 1435.26
A. It shall be unlawful for any person whose license to act as an insurance producer, limited lines producer, managing general agent, insurance consultant, surplus lines insurance broker, or customer service representative has been suspended, revoked, surrendered, or refused to do or perform any of the acts of an insurance producer, limited lines producer, managing general agent, insurance consultant, surplus lines insurance broker, or customer service representative. Any person convicted of violating the provisions of this section shall be guilty of a felony and shall be punished by the imposition of a fine of not more than Five Thousand Dollars ($5,000.00) or shall be committed to the custody of the Department of Corrections for not less than one (1) year nor more than five (5) years, or be punished by both said fine and commitment to custody.

In determining when to examine a company, the Commission will consider:
analyses of financial statements;
changes in management or ownership;
actuarial opinions;
reports of independent certified financial examiners or public accountants; and
other criteria described in the Examiner' Handbook

Reg. 365:15-1-6
Marine and transportation policies may provide coverage for the following types of property under certain conditions:
-Imports
-Exports
-Domestic shipments on and not on consignment
-etc.

Marine or transportation policies need not cover the storage of the insured's merchandise unless otherwise provided by law.

Negligence refers to a civil wrong where someone fails to exercise reasonable care, resulting in harm to another person. It involves the violation of another person's rights by not taking the necessary precautions to prevent harm. This lack of reasonable care creates an unreasonable chance of harm, making negligence the correct answer in this context.

A person who has been convicted of a criminal felony involving dishonesty or a breach of trust and participates in the business of insurance in Oklahoma without authorization from the Commissioner will be fined $10,000 for each act of violation and for each day of violation. This means that for every instance of violating the law and for every day that the violation continues, the person will be fined $10,000.

36 O.S. 3629
A. An insurer shall furnish, upon written request of any insured claiming to have a loss under an insurance contract issued by such insurer, forms of proof of loss for completion by such person, but such insurer shall not, by reason of the requirement so to furnish forms, have any responsibility for or with reference to the completion of such proof or the manner of any such completion or attempted completion.

Replacing life insurance policies is not an unfair practice.
Rebating premiums and issuing company stock to prospective clients are examples of Rebating, which is illegal.
Making derogatory statements regarding an insurer's financial condition is Defamation, which is illegal.

The term uninsured motor vehicle also includes a motor vehicle insured under a policy in which the liability limits are not high enough to pay the amount of damages claimed.
A person may obtain uninsured motorist coverage in an amount equal to $25,000 per person/$50,000 per occurrence, up to her bodily injury liability coverage limit.

Ann had minimum state liability coverage, 25/50/25, which covers up to $25,000 for body injury for one person, as well as up to $25,000 for property damage. Her insurance company would pay $25,000 for Bill's medical bills, as well as $9,500 for damages to Bills car. Ann's coverage is $20,000 short from covering Bill's total medical bills.
Bill's insurance includes uninsured motorist coverage, which would cover the remaining $20,000.

Could Ann be sued by Bill's Insurer for $20,000? Subrogation...

An insurer must provide 45 days' written notice if they wish to make a reduction in limits or coverage within a policy. This allows the policyholder sufficient time to review the changes and make any necessary adjustments or find alternative coverage if needed.

The Insurance Commissioner shall issue a cease and desist order upon a person after finding the person complained of or has engaged in a method of competition or practice in violation of the Unfair Practices and Frauds Act.

Every agent, adjuster, administrator, insurance company representative, or insurer must respond to a Commissioner's request for information within 30 days. This timeframe allows for a reasonable amount of time for the requested party to gather and provide the necessary information to the Commissioner. It ensures that the Commissioner can effectively carry out their duties and responsibilities in regulating the insurance industry.

85A O.S. Sec 45 (A)
There will be no payment for the first three days of the initial period of temporary total disability.

Insurers are required to give at least 10 days of notice prior to the date of cancellation and 20 days of notice prior to the date of non-renewal of an insurance policy. However, for homeowners insurance policy or any other personal residential insurance coverage, insurers must give at least 30 days' notice prior to the date of non-renewal.

An insurer must give 45 days' written notice if they wish to change the deductible within a policy. This notice period allows policyholders to be informed and make any necessary adjustments or decisions regarding their coverage. It ensures transparency and gives them sufficient time to review the changes and potentially seek alternative insurance options if needed.

An act of fraud involves someone intentionally lying with the intention of causing someone else to rely on that lie. Another person then relies on the lie and as a result, suffers harm. This sequence of events constitutes the elements of an act of fraud.

Binders, whether written or oral, expire either 90 days after their effective date or when the policy is issued. This means that if the binder is not replaced by an actual policy within 90 days of its effective date, it will no longer be valid. The expiration date can also be earlier if the policy is issued before the 90-day mark.

36 O.S. Sec. 3639
C. After coverage has been in effect for more than forty-five (45) business days or after the effective date of the renewal of a commercial marine, commercial automobile, commercial property, commercial casualty or commercial fire insurance policy, a notice of cancellation shall not be issued by any licensed insurer or surplus or excess lines insurer unless it is based on at least one of the following reasons with at least ten (10) days notice to the insured:

1. Nonpayment of premium;

2. Discovery of fraud or material misrepresentation in the procurement of the insurance or with respect to any claims submitted thereunder;

3. Discovery of willful or reckless acts or omissions on the part of the named insured which increase any hazard insured against;

4. The occurrence of a change in the risk which substantially increases any hazard insured against after insurance coverage has been issued or renewed;

5. A violation of any local fire, health, safety, building, or construction regulation or ordinance with respect to any insured property or the occupancy thereof which substantially increases any hazard insured against;

6. A determination by the Commissioner that the continuation of the policy would place the insurer in violation of the insurance laws of this state;

7. Conviction of the named insured of a crime having as one of its necessary elements an act increasing any hazard insured against; or

8. Loss of or substantial changes in applicable reinsurance.

A company may not pay a commission or fee to a producer unless and until the appointment with that company has been approved by the Commissioner. A producer may place only types of insurance for which he is licensed and appointed by an insurer.

No advance notice is required to be given to the terminated producer, the insurer that terminates the appointment must notify the Commissioner within 30 days of the termination if the termination is due to any activity that caused the producer to have his license suspended or revoked.

Nothing in the law details an expiration date of an appointment, there is detail of procedure when an appointment is filed and terminated. Therefore, an appointment is open so long as the insurer retains the producer under contract or via initial insurance application submission until the state or insurer revokes the producer's appointment.

An appointment by an insurer may be made within 15 days after the contract is executed or the first insurance application is submitted.

An insurer must give a written notice of 45 days if they wish to increase the premium of a policy. This notice period allows the policyholder to review the proposed changes and make any necessary adjustments to their coverage or seek alternative options if they find the increase to be unreasonable. It also ensures transparency and gives the policyholder sufficient time to make informed decisions about their insurance coverage.

Customer service representatives must complete 13 continuing education hours every two years. This requirement ensures that they stay updated with the latest industry trends, regulations, and best practices. Continuing education helps them enhance their skills, knowledge, and professionalism, enabling them to provide better service to customers. It also demonstrates their commitment to ongoing learning and professional development, which is essential in a rapidly evolving customer service landscape.

The statement suggests that individuals working in agriculture or horticulture are exempt from Workers Compensation as long as they are not operating motorized machines. This implies that if a person is employed in these fields and does not use motorized machines, they do not need to have Workers Compensation. Therefore, the answer "True" indicates that the statement is correct.

36 O.S. Sec. 1435.13
A. The Insurance Commissioner may place on probation, censure, suspend, revoke or refuse to issue or renew a license issued pursuant to the Oklahoma Producer Licensing Act or may levy a civil penalty in accordance with subsection D of this section or any combination of actions, for any one or more of the following causes:

1. Providing incorrect, misleading, incomplete or materially untrue information in the license application;

2. Violating any insurance laws, or violating any regulation, subpoena or order of the Insurance Commissioner or of another state’s Insurance Commissioner;

3. Obtaining or attempting to obtain a license through misrepresentation or fraud;

4. Improperly withholding, misappropriating or converting any monies or properties received in the course of doing insurance business;

5. Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance;

6. Having been convicted of a felony;

7. Having admitted or been found to have committed any insurance unfair trade practice or fraud;

8. Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness or financial irresponsibility in the conduct of business in this state or elsewhere;

9. Having an insurance producer license, or its equivalent, denied, suspended, censured, placed on probation or revoked in any other state, province, district or territory;

10. Forging another’s name to an application for insurance or to any document related to an insurance transaction;

11. Improperly using notes or any other reference material to complete an examination for an insurance license;

12. Knowingly accepting insurance business from an individual who is not licensed;

13. Failing to comply with an administrative or court order imposing a child support obligation; or

14. Failing to pay state income tax or comply with any administrative or court order directing payment of state income tax.


36 O.S. 1435.8
F. Licensees shall inform by any means acceptable to the Insurance Commissioner of a change of legal name, address, or e-mail address within thirty (30) days of the change to permit the Insurance Commissioner to give proper notice to licensees. A change in legal name or address submitted more than thirty (30) days after the change must include an administrative fee of Fifty Dollars ($50.00). FAILURE TO PROVIDE ACCEPTABLE NOTIFICATION OF A CHANGE OF LEGAL NAME OR ADDRESS TO THE INSURANCE COMMISSIONER WITHIN FORTY-FIVE (45) DAYS OF THE DATE OF THE ADMINISTRATIVE FEE IS ASSESSED SHALL RESULT IN PENALTIES PURSUANT TO SECTION 1435.13 OF THIS TITLE. (This would be suspension for "violating any insurance law or regulation" no longer for the issue of the change of address which was punishable by a fee.)

If an insurer operates with a revoked, suspended, or surrendered license, they would be guilty of a felony and could face a fine of up to $5,000, be jailed for a period of one to five years, or both.

An insurer may cancel, refuse to renew, or increase the premium of a homeowners insurance policy solely because the insured filed a first claim against the policy before the policy has been in effect for 45 days. After the 45-day period, the insurer cannot take such actions solely based on the insured filing a first claim.

Under the law, a representation is not considered a matter to which the parties contract, so a policy cannot be voided on the basis of a representation.

An insurer must give to the named insured at the mailing address shown on a homeowners policy, a written renewal notice including new premium, new deductible, new limits or coverage at least 30 days prior to the expiration date of the policy.

An insurer must acknowledge the receipt of notification after a property and casualty claim has been made within 30 days, unless payment is made before these days have passed. This means that the insurer is required to provide confirmation that they have received the claim within this time frame.

Her coverage would match Oklahoma's minimum coverage of $25,000 (25/50/25) for property liability. She would only have to pay $1,500 for damages exceeding $25,000, as well as the $1,000 deducible.

If an insurer engages in any trade practice that involves unfair competition or deceptive acts, the Commissioner may investigate possible unfair trade practices and take the following actions: fine the insurer, suspend the insurer's license, and revoke the insurer's license. These actions are taken to hold the insurer accountable for their unfair practices and to protect consumers from deceptive practices in the insurance industry. Censuring the insurer may also be a possible action, which involves publicly expressing disapproval of their actions.

85A O.S. §85A-50. Failure to provide medical treatment - Medical examination - Fee schedule - Formulary.
A. The employer shall promptly provide an injured employee with medical, surgical, hospital, optometric, podiatric, and nursing services, along any with medicine, crutches, ambulatory devices, artificial limbs, eyeglasses, contact lenses, hearing aids, and other apparatus as may be reasonably necessary in connection with the injury received by the employee. The employer shall have the right to choose the treating physician.
B. If the employer fails or neglects to provide medical treatment within five (5) days after actual knowledge is received of an injury, the injured employee may select a physician to provide medical treatment at the expense of the employer; provided, however, that the injured employee, or another in the employee's behalf, may obtain emergency treatment at the expense of the employer where such emergency treatment is not provided by the employer.

36 O.S. § 1250.5. Acts by an insurer constituting unfair claim settlement practice.
Any of the following acts by an insurer, if committed in violation of Section 1250.3 of this title, constitutes an unfair claim settlement practice exclusive of paragraph 16 of this section which shall be applicable solely to health benefit plans:
1. Failing to fully disclose to first party claimants, benefits, coverages, or other provisions of any insurance policy or insurance contract when the benefits, coverages or other provisions are pertinent to a claim;
2. Knowingly misrepresenting to claimants pertinent facts or policy provisions relating to coverages at issue;
3. Failing to adopt and implement reasonable standards for prompt investigations of claims arising under its insurance policies or insurance contracts;
4. Not attempting in good faith to effectuate prompt, fair and equitable settlement of claims submitted in which liability has become reasonably clear;
5. Failing to comply with the provisions of Section 1219 of this title;
6. Denying a claim for failure to exhibit the property without proof of demand and unfounded refusal by a claimant to do so;
7. Except where there is a time limit specified in the policy, making statements, written or otherwise, which require a claimant to give written notice of loss or proof of loss within a specified time limit and which seek to relieve the company of its obligations if the time limit is not complied with unless the failure to comply with the time limit prejudices the rights of an insurer;
8. Requesting a claimant to sign a release that extends beyond the subject matter that gave rise to the claim payment;
9. Issuing checks or drafts in partial settlement of a loss or claim under a specified coverage which contain language releasing an insurer or its insured from its total liability;
10. Denying payment to a claimant on the grounds that services, procedures, or supplies provided by a treating physician or a hospital were not medically necessary unless the health insurer or administrator, as defined in Section 1442 of this title, first obtains an opinion from any provider of health care licensed by law and preceded by a medical examination or claim review, to the effect that the services, procedures or supplies for which payment is being denied were not medically necessary. Upon written request of a claimant, treating physician, or hospital, the opinion shall be set forth in a written report, prepared and signed by the reviewing physician. The report shall detail which specific services, procedures, or supplies were not medically necessary, in the opinion of the reviewing physician, and an explanation of that conclusion. A copy of each report of a reviewing physician shall be mailed by the health insurer, or administrator, postage prepaid, to the claimant, treating physician or hospital requesting same within fifteen (15) days after receipt of the written request. As used in this paragraph, "physician" means a person holding a valid license to practice medicine and surgery, osteopathic medicine, podiatric medicine, dentistry, chiropractic, or optometry, pursuant to the state licensing provisions of Title 59 of the Oklahoma Statutes;
11. Compensating a reviewing physician, as defined in paragraph 10 of this subsection, on the basis of a percentage of the amount by which a claim is reduced for payment;
12. Violating the provisions of the Health Care Fraud Prevention Act;
13. Compelling, without just cause, policyholders to institute suits to recover amounts due under its insurance policies or insurance contracts by offering substantially less than the amounts ultimately recovered in suits brought by them, when the policyholders have made claims for amounts reasonably similar to the amounts ultimately recovered;
14. Failing to maintain a complete record of all complaints which it has received during the preceding three (3) years or since the date of its last financial examination conducted or accepted by the Commissioner, whichever time is longer. This record shall indicate the total number of complaints, their classification by line of insurance, the nature of each complaint, the disposition of each complaint, and the time it took to process each complaint. For the purposes of this paragraph, "complaint" means any written communication primarily expressing a grievance;
15. Requesting a refund of all or a portion of a payment of a claim made to a claimant or health care provider more than twenty-four (24) months after the payment is made. This paragraph shall not apply:
a. if the payment was made because of fraud committed by the claimant or health care provider, or
b. if the claimant or health care provider has otherwise agreed to make a refund to the insurer for overpayment of a claim;
16. Failing to pay, or requesting a refund of a payment, for health care services covered under the policy if a health benefit plan, or its agent, has provided a preauthorization or precertification and verification of eligibility for those health care services. This paragraph shall not apply if:
a. the claim or payment was made because of fraud committed by the claimant or health care provider,
b. the subscriber had a preexisting exclusion under the policy related to the service provided, or
c. the subscriber or employer failed to pay the applicable premium and all grace periods and extensions of coverage have expired; or
17. Denying or refusing to accept an application for life insurance, or refusing to renew, cancel, restrict or otherwise terminate a policy of life insurance, or charge a different rate based upon the lawful travel destination of an applicant or insured as provided in Section 4024 of this title.

36 O.S. 1100.1
6. "Nonadmitted insurance" means any property and casualty insurance permitted in a state to be placed directly through a surplus lines licensee or broker with a nonadmitted insurer eligible to accept such insurance. For purposes of the Unauthorized Insurers and Surplus Lines Insurance Act, nonadmitted insurance includes independently procured insurance and surplus lines insurance;

36 O.S. 1101
A. No person in Oklahoma shall in any manner:

1. Represent or assist any nonadmitted insurer in the soliciting, procuring, placing, or maintenance of any nonadmitted insurance coverage upon or with relation to any subject of insurance resident, located, or to be performed in Oklahoma without being a surplus lines licensee or broker as defined in the Unauthorized Insurers and Surplus Lines Insurance Act; or

2. Inspect or examine any risk or collect or receive any premium on behalf of any nonadmitted insurer without being a surplus lines broker or licensee as defined in the Unauthorized Insurers and Surplus Lines Insurance Act

36 O.S. § 996.1. Assigned risk plans.
After consultation with the insurance companies authorized to issue automobile liability policies in this state, the Insurance Commissioner shall approve a reasonable plan or plans, fair to the insurers and equitable to their policyholders, for the apportionment among such companies of applicants for such policies and for motor vehicle liability policies who are in good faith entitled to but are unable to procure such policies through ordinary methods. When any such plan has been approved, all such insurance companies shall subscribe thereto and participate therein.

Under the Federal Employees' Compensation Act, employees who work for the federal government are covered by a separate compensation system. This means that if an employee's employer is liable under this act, they are exempt from the traditional workers' compensation system. Therefore, the statement "An employee whose employer is liable under the Federal Employees' Compensation Act is exempt from Workers Compensation" is true.

If an insurer wishes to refuse to renew a policy, they must provide 45 days' written notice. This means that the insurer must inform the policyholder in writing at least 45 days before the policy's expiration date that they will not be renewing the policy. This allows the policyholder sufficient time to make alternative arrangements for insurance coverage.

If a person commits fraud and makes false statements while conducting insurance transactions across state lines, and these actions put the insurer at risk and contribute significantly to the insurer being placed under court supervision (conservation, rehabilitation, or liquidation), they can be sentenced to a maximum of 15 years in prison.

36 O.S. 4805
When any insurance policy subject to the provisions of this article contains a provision that the insured must render a written sworn proof of loss within sixty (60) days from the date of fire or loss to the insurer, or the same is required by law to be so rendered, the insurer cannot assert the failure of insured to so render such proof of loss in any litigation or court proceeding, unless the insurer plead and prove that it has furnished the insured with two blank forms for the execution of proof of loss, that has printed thereon, in bold-faced type in a conspicuous place, the warning that a proof of loss must be rendered to the insurer within sixty (60) days from the date of receipt of the blank forms for proof of loss by the insured, or by putting such warning in a like form in a letter of instruction for executing a proof of loss that will accompany the proof of loss blanks furnished the insured, and the insurer has further executed and furnished the insured its written extension of time, giving the insured sixty (60) days from the date such blanks were received by the insured. These requirements cannot be waived by any agreement between the parties or otherwise.

Any producer who fails to comply with the continuing education requiremetns may, after notice and opportunity for hearing, be subject to:
censure;
suspension;
non-renewal of license; civil fine of up to $500; or
any combination of civil fine and other named penalty.

A limited lines producer may receive a license to sell one or more of the following limited lines of insurance:
-Crop - unfavorable weather conditions, fire or lightning, flood, hail, insect infestation, disease, or other yield-reducing conditions or perils.
-Car rental
-Credit - credit life, credit disability, credit property, credit unemployment, involuntary unemployment, mortgage life, mortgage guaranty, mortgage disability, guaranteed automobile protection insurance, or any other insurance offered in connection with the extension of credit...
-Prepaid legal - provide legal services, or to reimburse policyholders for legal expenses
-Surety - covers obligations to pay the debts of or answer for the default of another, including faithlessness in a position of public or private trust (does not include bail bonds).
-Travel - trip cancellation, trip interruption, baggage, life, sickness, accident, disability, and personal effects

36 O.S. 1204
(b) Nothing in subsection 7 or paragraph (a) of this subsection shall be construed as including within the definition of discrimination or rebates any of the following practices:

(1) In the case of any contract of life insurance or life annuity, paying bonuses to policyholders or otherwise abating their premiums in whole or in part out of surplus accumulated from nonparticipating insurance, provided, that any such bonuses or abatement of premiums shall be fair and equitable to policyholders and for the best interest of the company and its policyholders;

If the insurer fails to provide such notice, the premium, deductible, limits, and coverage provided to the named insurer prior to the change shall remain in effect until notice is given or until the effective date of replacement coverage obtained by the named insured, which ever occurs first.

Workers' Compensation is a type of insurance that provides benefits to employees who are injured or become ill as a result of their work. It typically covers medical expenses, lost wages, and rehabilitation costs. In the given options, the individuals who receive a state salary for performing duties related to state affairs and those who volunteer as firefighters or emergency management workers are likely to benefit from Workers' Compensation if they are injured or become ill while performing their duties.

85A O.S. Sec 45 - Compensation rates categories include:
Permanent total disability
Temporary total disability
Temporary partial disability
Permanent partial disability
Vocational rehabilitation
Permanent disfigurement

After 45 days of coverage or policy renewal, a notice of cancellation can only be issued to the insured if at least one of the following reasons is present: nonpayment of premium, a determination by the Commissioner that continuing the policy would violate the law, conviction of the named insured for a crime that increases the insured hazard, or loss of or significant changes in applicable reinsurance.

36 O.S. 3629 B. It shall be the duty of the insurer, receiving a proof of loss, to submit a written offer of settlement or rejection of the claim to the insured within (60) days of receipt of that proof of loss.