Bill > SB1913

This bill establishes a dispute resolution system for insurance claims in Oklahoma, aiming to resolve disagreements between policyholders and insurers more effectively and fairly. It amends existing law to clarify that certain alternative dispute resolution processes, as defined in Section 2 of this act, do not require the written consent previously mandated for all dispute resolution proceedings. The core of the bill introduces a new dispute resolution program managed by the Insurance Commissioner, which will help consumers and insurance companies resolve disputes related to insurance or service warranty claims. While mediation is generally voluntary for insurers, it becomes mandatory when a claim involves a residential, commercial residential, or automobile insurance policy and civil litigation has not yet begun, provided the mediation is requested by an assignee of policy benefits. Importantly, claims must first go through the Insurance Department's consumer complaint program before being eligible for mediation. The bill requires all parties to negotiate in good faith, and any settlement agreement reached, if not rescinded by the policyholder within three business days (unless payment has been cashed or deposited), will be binding. It also outlines conditions for continuing mediation conferences, allows for expedited conferences in cases of undue hardship, and specifies that an insurer is considered to have failed to appear if their representative lacks the authority to settle the full claim value within ten days. Violations by insurers can result in civil penalties, and the Insurance Commissioner is empowered to create necessary rules for enforcement, with the act taking effect on November 1, 2026.

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http://www.oklegislature.gov/BillInfo.aspx?Bill=sb1913&Session=2600