Bill > HB1084

This bill addresses insurance assignment of benefits by establishing new restrictions on how post-loss insurance benefits can be transferred. The legislation defines an "assignment agreement" as any instrument that transfers post-loss benefits from an insurance policy for property damage, such as for auto, residential, or commercial insurance. The bill prohibits service providers from soliciting or accepting assignments of these benefits, rendering such agreements null and void. However, there are exceptions for assignments to financial institutions, mortgagees, property purchasers, and for liability coverage. Violations of these provisions are considered unfair trade practices, subject to existing penalties in Oklahoma law. The bill explicitly allows attorneys to collect fees for insurance claim-related actions and does not prevent insureds from authorizing direct payments to service providers for covered services. Insurers are required to issue payments directly to service providers when the insured agrees, while respecting applicable liens. The law is set to become effective on November 1, 2025, and is designed to prevent potential abuse in insurance benefit assignments while maintaining flexibility for legitimate service provider payments.

Business and Industry

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1084&Session=2600