Oklahoma's Legislative Efforts to Enhance Homeowners Insurance Protection
The Oklahoma Insurance Department has introduced a legislative package focused on strengthening consumer protections, enhancing transparency, and tackling the escalating costs of homeowners insurance. These proposals are part of a wider effort to improve Oklahoma's insurance landscape through collaboration with lawmakers, industry stakeholders, and consumer advocates. Key objectives include ensuring fair treatment, expediting claims processing, and increasing the availability of affordable insurance coverage.
Streamlining Claims Processes
The legislative package includes several measures to streamline claims processes and hold insurers accountable. Insurers must adhere to reduced deadlines, with a new 14-day response window for consumer complaints and claims inquiries. They must acknowledge claim filings within 14 days and quickly provide detailed estimates post-assessment. Decision timelines will now require insurers to accept or deny claims within 30 days and finalize resolutions within 90 days, with mandatory interest payments on delayed claims adding an accountability layer.
Introducing the Homeowner Bill of Rights
A Homeowner Bill of Rights is being introduced, outlining clear procedures and timelines for policyholders during the claims process. This aims to improve the claims experience and provide guidance for filing claims. Insurers are also mandated to offer premium discounts for homes meeting IBHS FORTIFIED standards, promoting risk mitigation via structural enhancements.
Ensuring Fair Practices
Additional consumer protection measures restrict the misuse of aerial imaging and ensure fair treatment of aging roofs. Insurers cannot deny, non-renew, or alter coverage based solely on aerial imagery or roof age, provided independent inspections indicate sufficient life remaining. Proposals also aim to align coverage with local building codes, regardless of enforcement status, clarifying statutory language for better regulatory compliance.
Enhancing Market Transparency
To maintain market transparency, insurers will submit quarterly reports on market stability, detailing non-renewals and written premiums. The legislative agenda also seeks to refine motor vehicle violation data usage by addressing lookback period loopholes.
Mediation and Cost Containment
New mediation options are proposed to reduce legal costs and facilitate efficient dispute resolution for residential, commercial-residential, and auto claims. Penalties will apply to insurers failing to comply with mediation requirements, supplemented by measures to eliminate awards for attorney fees, thereby containing overall legal expenses.
The reforms aim to position Oklahoma as a leader in consumer-centered insurance regulation, promising faster recovery processes and sustained access to reliable coverage. The Oklahoma Legislature plans to review this comprehensive legislative agenda when it convenes on February 2, 2026, showcasing the state's commitment to a fair, resilient, and efficient insurance market.