Oklahoma Senate Bill SB530

Oklahoma 2022 Regular Session

• Introduced: 2/1/21
• Refer: 2/2/21

Caption

Motor vehicle insurance; defining underinsured vehicle; requiring full recovery from certain policy before other payment. Effective date.

Impact

The proposed changes will modify Section 3636 of the Oklahoma Statutes concerning uninsured motorist coverage. By expanding the scope of uninsured vehicles to include underinsured ones, the bill seeks to provide additional protections for drivers, ensuring that they can claim damages when involved with drivers whose insurance does not cover their claimed damages. This legislation could lead to potential shifts in how motor vehicle insurance is approached and managed in the state, affecting both policyholders and insurance companies significantly.

Summary

Senate Bill 530 is a measure that aims to enhance the existing uninsured motorist coverage in Oklahoma. This legislation focuses on expanding the definition of what constitutes an uninsured vehicle, incorporating underinsured vehicles into this category. Should the bill be enacted, it would modify the rights of subrogation for insurers involved when certain claims are made, especially in cases of accident-related liabilities. It mandates that a policyholder must fully recover from their liability coverage before their uninsured motorist coverage comes into play, effectively setting a precedence for insurers regarding their obligations to claimants.

Contention

There are notable points of contention surrounding SB530, particularly regarding the implications for insurers and how it might affect premiums for policyholders. Supporters argue that the bill will provide much-needed protection for drivers who are injured by underinsured drivers, ensuring they are not left without recourse. Opponents, however, might express concerns over the potential increase in insurance costs that could result from such requirements, as insurers might raise premiums to cover the added liabilities introduced by the expanded definitions.