The Oklahoma Insurance coverage Division (OID) has issued Bulletin No. 2025-07, outlining a number of essential legislative adjustments that can take impact on November 1, 2025. These updates, present in Home Invoice 1084 and Home Invoice 1501, introduce new restrictions and necessities that can have an effect on property insurance coverage claims and public adjuster compensation.
For many who work on behalf of policyholders, together with public adjusters, restoration professionals, and attorneys, it’s essential to grasp how these new legal guidelines might alter the claims panorama in Oklahoma.
Home Invoice 1084 – Restrictions on Submit-Loss Assignments
Home Invoice 1084 creates a brand new statute, 36 O.S. § 1230(B), which prohibits the project of post-loss insurance coverage advantages for property harm below auto, residential, or industrial property insurance coverage insurance policies.
In brief, no particular person might solicit or settle for an project of post-loss insurance coverage advantages. Any such settlement shall be thought of in opposition to public coverage and subsequently void and unenforceable.
The legislation does enable a number of restricted exceptions. Assignments made to a federally insured monetary establishment, mortgagee, or subsequent purchaser of the property are nonetheless legitimate. The identical applies to assignments involving legal responsibility protection below an auto or property coverage.
What this implies: Contractors and mitigation corporations which have historically labored below project of advantages (AOB) contracts will not have the ability to pursue cost immediately from insurers. Policyholders themselves will now have to stay the named social gathering asserting the declare. This variation successfully ends the AOB mannequin for many property claims in Oklahoma. These adjustments may also require policyholders to bear the burden of expending the monies associated surprising mitigation prices and making repairs whereas ready for insurers to pay claims. Below the AOB mannequin, many contractors entrance these bills whereas the insurers decide what’s owed. With out the AOB, these identical contractors are usually not more likely to finance the “claims” course of. The insured would be the social gathering harmed and you’ll anticipate a pointy enhance in contractors inserting liens on properties whereas insurers delay claims whereas arguing over what’s or what just isn’t affordable. In states which have handed comparable laws, we now have seen a rise in lawsuits by contractors in opposition to insureds immediately associated to insurers’ failure to pay or well timed consider advanced mitigation claims, together with hurricanes in Florida.
Home Invoice 1501 – Price Cap for Public Adjusters Working with Authorities Entities
Home Invoice 1501 establishes 36 O.S. § 6224, a brand new legislation limiting what public adjusters can cost when representing political subdivisions and public businesses as outlined below 51 O.S. § 152.
Below the brand new rule, the entire compensation to a public adjuster, together with commissions, bills, and every other prices, can’t exceed 10% of the insurance coverage settlement quantity.
In sensible phrases: This cover applies solely when the insured is a governmental entity, similar to a metropolis, county, or college district. Adjusters who deal with claims for personal policyholders are usually not affected. Nonetheless, when coping with public entities, contracts and billing buildings might want to adjust to the brand new 10% restrict.