Oklahoma lawmakers this legislative session passed a bill limi
ting 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 comprehen
sive policy, residential property insurance policy, or commercial property insurance policy.
Assignment of benefits is an agreement that transfers the insur
ance 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 pos
t-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 Tedf
ord. “When third parties take control of a claim, it can result in inflated repair costs, excessive litigation and confu
ion for the policyholder. House Bill 1084 helps restore accountability a
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nd ensures Oklahomans remain in control of their own claims.”
The law doesn’t ap
ply 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. Viola
tors will be subject to existing penalties and enforcement mechanisms.
Oklahoma lawmakers voted unanimously in favor of the bill in both the H
ouse and Senate. The bill became law on May 29 and will go into effect on Nov. 1.