Oklahoma lawmakers recently passed a new law that prohibits the transfer of property damage compensation rights to third parties in auto, residential or commercial property insurance policies. According to House Bill 1084, policyholders are not allowed to transfer their insurance claims to third parties such as roofers and plumbers to prevent cost inflation and legal disputes. Bill author and Congressman Mark Tedford said such transfer agreements could lead to fraud, increased litigation and damage to policyholders’ rights and interests.
Tedford pointed out that the post-loss distribution agreement helps reduce unnecessary legal conflicts and rising maintenance costs, thereby lowering overall insurance premiums. He emphasized that the new law aims to ensure that policyholders maintain control over the claim process and avoid third-party interference. However, this law does not apply to liability insurance but only to the distribution of property damage compensation.
The bill was unanimously passed by both the state House of Representatives and the Senate and was officially signed into law on May 29. It will come into effect on November 1, 2025. Those who violate the regulations will be regarded as having violated the Oklahoma Insurance Law and will face corresponding penalties.
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