Oklahoma lawmakers this legislative session passed a bill limiting post-loss assignment of benefits for property damage under auto, residential or commercial property insurance policies.
House Bill 1084 prohibits the solicitation or acceptance of an assignment of any post-loss insurance benefit related to property damage under an auto collision or comprehensive policy, residential property insurance policy, or commercial property insurance policy.
Assignment of benefits is an agreement that transfers the insurance claims rights or benefits of an insurance policy to a third party such as a roofer or plumber.
Rep. Mark Tedford, author of the bill, said such agreements in a post-loss format can lead to inflated costs or legal disputes without the policyholder’s full awareness.
“Limiting these types of agreements helps reduce fraud and unnecessary legal conflict, which ultimately helps lower insurance costs for everyone,” said Tedford. “When third parties take control of a claim, it can result in inflated repair costs, excessive litigation and confusion for the policyholder. House Bill 1084 helps restore accountability and ensures Oklahomans remain in control of their own claims.”
The law doesn’t apply to liability coverage under an auto, residential, or commercial property insurance policy.
Violations of the bill are considered unfair or deceptive trade practices under Oklahoma insurance law. Violators will be subject to existing penalties and enforcement mechanisms.
Oklahoma lawmakers voted unanimously in favor of the bill in both the House and Senate. The bill became law on May 29 and will go into effect on Nov. 1.
Topics Profit Loss Property Oklahoma