Oklahoma has taken a significant step to change how insurance claims work. Lawmakers recently passed House Bill 1084, which restricts the assignment of benefits for property damage claims under auto, residential, and commercial insurance policies. This new law aims to give policyholders more control over their claims and reduce fraud.
The bill, which received unanimous support in both the House and Senate, was signed into law on May 29 and will take effect on November 1. It specifically prohibits the solicitation or acceptance of any assignment of post-loss insurance benefits. This means that policyholders cannot transfer their rights to claim benefits to third parties, such as contractors or repair services, after a loss has occurred.
Rep. Mark Tedford, the bill’s author, expressed concerns about the potential for inflated costs and legal disputes that can arise when third parties manage claims. He believes that limiting these assignments will help lower insurance costs for everyone in Oklahoma. Tedford stated, “When third parties take control of a claim, it can result in inflated repair costs, excessive litigation, and confusion for the policyholder.”
The law does not affect liability coverage under any insurance policies. Additionally, any violations of this new law will be treated as unfair or deceptive trade practices, which means violators could face penalties.
This legislative change reflects a growing trend among states to address issues related to claims management and insurance fraud. By placing the responsibility back in the hands of policyholders, Oklahoma lawmakers hope to create a more transparent and fair insurance process.