Oklahoma Proposes 2026 Insurance Reforms to Enhance Consumer Protections

Oklahoma's Insurance Department announced a comprehensive legislative package targeting enhanced consumer protections, transparency, and homeowners insurance premium relief for 2026. Insurance Commissioner Glen Mulready emphasized the package's intent to ensure fair treatment, expedite claims processing, and improve affordable coverage access amidst ongoing market challenges. The initiatives build upon previous anti-fraud and tort-reform measures to stabilize the state's insurance market. Key legislative proposals include shortened insurer response times to consumer complaints and claims inquiries, reducing claim acknowledgment periods, and accelerating claim resolution timelines with mandated interest payments on delayed payments. A statutory Homeowner Bill of Rights will clearly outline consumer rights and claims process guidance. The package mandates insurer discounts for homes meeting IBHS FORTIFIED standards to encourage risk mitigation and prohibits reliance on aerial imaging for adverse underwriting decisions. Roof-aging policies will be modernized, allowing independent inspections to challenge non-renewals or coverage refusals tied solely to roof age. Building code compliance language will be updated to ensure insurer obligations regardless of local enforcement, and insurers will submit quarterly reports on key market indicators to promote transparency. Additional reforms target motor vehicle violation data use and expand mandatory Eagle mediation for claims to reduce litigation costs. Attorney fees will be codified as non-recoverable by either party to deter frivolous lawsuits, which drive up claim expenses and premiums. Stakeholders view these measures as positioning Oklahoma as a leader in consumer-focused insurance regulation, with potential for faster claim recovery and improved market stability. The 2026 legislative session commences February 2, when these proposals will be introduced for consideration.