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Frequently Asked Questions


The premium for my auto insurance policy has increased, why?*


Compare the previous declaration page with the renewal declaration to find out exactly what has changed. If you have had an accident or a citation, your automobile insurance may be surcharged. Also, you may have lost a discount. If either of the previously mentioned examples are not the case, the increase may be due to a rate increase because your insurer requested an increase based on overall loss experience for the entire state.



Can I purchase a flood insurance policy if I do or do not live in a floodplain?*


Yes, as long as the community you live in participates in the NFIP. Most communities in Oklahoma do participate in the NFIP. More information can be found at

Top of Flood Insurance


Where can I find out if my community participates in the NFlP?*


To review the Community Status Book go to and click on Oklahoma.



Are companies allowed to use credit ratings to determine eligibility and rating for insurance coverage?*


Yes, they can and many do. Under Federal law, the Fair Credit Reporting Act allows insurers to use credit information for underwriting purposes. Credit reports and/or scores are a commonly used rating tool; however, statutes found in the “Use of Credit Information in Personal Insurance Act”, 36 O.S. 950 et seq, govern how this information may be used in personal lines policies.


Can a company non-renew my homeowners insurance because I have filed "too many claims"?*


Companies will sometimes non-renew a policy due to claims frequency. By law, a company shall not cancel, non-renew or increase the premium of a homeowner’s policy that has been in effect for more than 45 days, solely because the insured filed a first claim on the policy. However, if you have filed more than one claim, there is no law to prevent the company from non-renewing. If a company does choose to non-renew your policy, they are required to provide proper written notice as per their policy language.


How does an Actual Cash Value (ACV) policy differ from a Replacement Cost policy?*


Actual Cash Value coverage will only pay for the replacement cost less depreciation. As the name suggests, a Replacement Cost policy will pay up to policy limits the cost necessary to replace property destroyed by a covered loss, with no deduction for depreciation. You will pay a higher premium for Replacement Cost coverage. With Replacement Cost coverage, at the time of the loss the company will pay the ACV of the damaged or destroyed property. An additional payment will be made for the difference between the ACV and replacement value once the property has been replaced.



What is Term Life insurance?*


Term Life provides coverage for a limited number of years, and expires without value if the insured survives the stated period, which is typically 5 to 20 years. Such periods generally cover the needs for temporary protection.


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