Issues
The Insurance business in Oklahoma has a substantial impact on our state’s economy. Almost 100,000 Oklahomans derive income from the insurance industry. It generates $11.8 billion in premiums and $200 million in tax revenues for the State of Oklahoma, contributing greatly to the General Fund and the pension plans of firefighters, police and highway patrol officers. The insurance industry is second only to the tax commission as the largest contributor to the General Fund which provides essential services and support to communities throughout Oklahoma.
After a successful twenty-five year career in the insurance industry Commissioner Holland knows the intricacies of the business, and she knows that a competitive market is a healthy market. That’s why she promotes Oklahoma across the nation as an attractive destination for expanding insurance operations In collaboration with the Department of Commerce, she is also working to help Oklahoma’s domestic companies understand and participate in available state resources to promote expansion.
“Oklahoma is a great place to do business – efficient regulatory environment, competitive labor market, low cost of living and high quality of life – all the essentials for profitable enterprise. I want the industry to know what Oklahoma has to offer and that we want to help promote the growth and prosperity of a quality insurance marketplace.
“A competitive environment is good for everyone. It expands consumer choice and drives premium costs down,” says Commissioner Holland.
She plays an active role advising members of the House of Representatives and the Senate about the impact of proposed legislation on both the insurance consumer and the industry. This year she was instrumental in convincing the House and Senate to pass the Interstate Insurance Product Regulation Compact which will set uniform national standards for many insurance products and practices. Commissioner Holland understands that supporting best practices and uniformity is necessary to reduce insurance industry administrative costs and ultimately premiums costs for everyone.
As an experienced agent, Commissioner Holland learned the importance of gaining advanced professional knowledge in order to adequately serve and protect her customers. Insurance products have become increasingly complex, reflecting the complexity of today’s business and personal financial environment. This necessitates the availability of high quality continuing education programs for our agent population. Commissioner Holland created and filled a new department position, Continuing Education Coordinator, to work with industry and our higher education community to provide and promote timely, interesting and challenging insurance education programs and courses.
“I’ve spent my entire career as an insurance professional. In serving Oklahoma businesses as an employee benefit specialist and by leading a multi-lines insurance agency, I have experienced first hand the many challenges facing the industry and the agent community. The insurance industry has served me well and I am proud to have an opportunity to contribute to it’s future growth and prosperity.”
Accountability, high standards of Ethics and Transparency are guiding principles for Insurance Commissioner Kim Holland.
In an unprecedented and bold action, during her very first week in office, Commissioner Holland requested that State Auditor Jeff McMahan perform an audit of the Department.
“I welcomed the opportunity receive a thorough and unbiased assessment of every aspect of the Insurance Department”, Commissioner Holland explained.
Commissioner Holland has implemented new and rigorous ethical standards to which all employees must comply, including requiring that Department employees not be in a position where conflicts of interest exist between employees and the insurance industry. Because of these higher ethical standards, some employees have had to leave the Department.
Commissioner Holland insists that regulatory responsibilities are administered with objectivity. “I continue to demand that every employee work diligently to ensure that our decisions and actions are based upon sound principals and state statutes – that they are fair, just, and balanced between the needs of the consumer and the industry”.
Commissioner Holland has instituted requirements to ensure timely help for insurance consumers. Bringing extensive business experience to Department operations, Commissioner Holland has established customer care standards that compete with private industry. In her first year in office, the Oklahoma Insurance Department accomplished record levels of claims recoveries, returning over $8 million to Oklahoma families. In addition she has upgraded the website to respond to consumer questions. “We carefully monitor email inquiries to ensure they get to the right person and are responded to within 24 hours of receipt. In the first quarter of this year we were able to meet our customer needs by responding in just over 3 hours. Our goal is to be the most responsive – measured by accuracy, courtesy and promptness – agency in state government”
One of Commissioner Holland’s favorite projects, though, is her traveling “roadshows”. She knows that for many people, getting to Oklahoma City or Tulsa to meet with Department staff can be a tremendous obstacle, so she takes part of her staff with her to visit communities.
These listening session provide an opportunity for consumers to meet face-to-face with department professionals and receive personal attention to their problems and questions. “We enjoy reaching out to our customers and meeting with them in their home town. It’s a wonderful opportunity to help our fellow Oklahomans and learn about the issues that are important to their families and their businesses.”
Fighting insurance fraud has been a priority for Commissioner Holland since taking office. In the first few months on the job, she worked with the legislature to obtain law enforcement status for the Department’s 10-member anti-fraud team. This year she sought and obtained funding to increase the team to 12 members. “Paying bad claims means honest people pay higher premiums. Unscrupulous insurance sales tactics cause financial hardship to those victimized. I will not tolerate any such activity that causes our citizens harm.” Under Commissioner Holland’s direction, the Oklahoma Insurance Department recovered over $2.5 million on behalf of Oklahoma consumers as a result of its anti-fraud efforts in 2005.
“Each of us serves the people of Oklahoma who expect and deserve the best.”
Commissioner Holland knows that every Oklahoman has the right to affordable access to quality health care and that as Oklahoma’s Insurance Commissioner she is in a unique position to influence public policy toward that end. Acknowledged as one of the foremost employee benefits experts in the state, she has practical experience assisting Oklahoman’s obtain affordable health insurance.
Commissioner Holland assisted in the development of the O-EPIC program, which pays part of the health insurance premiums for eligible employees working for qualified Oklahoma small businesses. She continues to assume a leadership role in promoting this important program to help working families afford health insurance. Sky rocketing health insurance premiums prevent too many of Oklahoma small businesses from offering coverage to their employees. Commissioner Holland knows that without health insurance, many Oklahomans must resort to seeking untimely and expensive treatment in emergency rooms. The cost of care provided to those who cannot pay is passed on to those who can, through higher insurance rates and higher taxes.
Commissioner Holland believes that one of our state’s most economically and socially debilitating circumstances is the almost 700,000 Oklahomans who do not have health insurance. As a result, Oklahoma businesses and families who obtain health insurance pay $1,781 more in premiums every year to pay for the cost of treating our uninsured. That extra expense, one of the highest in the nation, means fewer jobs, higher production costs and less disposable income.
Last year Commissioner Holland convened a Summit on the High Cost of Health Insurance. This Summit brought together the bright minds of Oklahomans representing all stakeholders in the healthcare system – consumers, providers, insurers and lawmakers, along with nationally recognized health policy experts and advocates. Their charge was to establish an aggressive set of goals that will ensure that every Oklahoman has access to adequate, affordable health care services.
Under her direction, task forces continue to work to develop health care reform recommendations that will be presented this fall to a legislative panel for their consideration. Commissioner Holland is committed to ensuring that health care reform stays at the forefront of our state legislative deliberation.
Additionally, Commissioner Holland is working with insurers and health plans to promote the development of new and affordable products that better meet the needs of today’s consumers.
One of the most frightening statistics about driving on Oklahoma roads is that almost one in three drivers is uninsured. People drive without insurance because of any number of factors such as the inability to afford insurance, or the lack of a driver’s license, or simply the choice to not comply with compulsory insurance laws. But one thing is sure:, uninsured motorists drive up the cost of insurance coverage for insured drivers. Oklahoma has one of the highest levels of uninsured motorists nationally.
Commissioner Holland is committed to finding new and creative solutions to the problem of uninsured motorists. She supports exploring options and learning from other states with similar problems. And, she strongly supports enforcement of Oklahoma’s current laws to reduce the number of uninsured drivers on the road.
Commissioner Holland views her role as Insurance Commissioner as more than just a regulator: she’s an advocate for Oklahomans. She knows that she has a rare opportunity to affect the lives of working Oklahomans in a very positive way – and she’s determined to do just that.
That’s why she is continues to work for our seniors to facilitate enrollment in Medicare Part D. Although Medicare Part D is a federally administered program, Commissioner Holland believes that Oklahomans should protect their own. She has taken a proactive stance to ensure that seniors receive the unbiased support and information needed to make the right prescription drug plan choice.
Insurance fraud results in higher insurance premiums for honest citizens. Commissioner Holland has made fighting insurance fraud and unscrupulous insurance practices a priority. She fought for and received full law enforcement status for her 10 member anti-fraud team. Now, her team can cooperate fully with federal and state law enforcement agencies. In fact, the Anti Fraud Unit has recovered more than $2.5 million dollars on behalf of Oklahomans in the past year.
Our citizens rely on insurance to protect the things they value and they expect the companies who sell policies to live up to their promises. Commissioner Holland has expanded the Department’s customer service team to provide greater assistance to anyone having difficulties resolving a claim. As a result, the Oklahoma Insurance Department recovered a record $8.3 million for Oklahoma policyholders this past year. Commissioner Holland believes in holding insurers accountability to their customers.
Commissioner Holland’s advocacy efforts don’t stop there. When wildfires decimated large parts of Oklahoma this year, Commissioner Holland led a coalition of state, private, and faith-based organizations to rebuild homes for some of those who were uninsured. Far from being a give-away, PROJECT: REBUILD gives new hope for hard working Oklahoma families – while also requiring them to obtain insurance for their new home. Country music super star Blake Shelton was so impressed with Project Rebuild, he held a benefit concert in his home town of Ada and donated the entire proceeds - $108,000 – to this non profit effort. As a result, help is now available to our Oklahoma neighbors suffering uninsured losses due to recent tornadoes.
