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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
HOUSE BILL 4276 By: Sneed
AS INTRODUCED
An Act relating to insurance; amending 47 O.S. 20 21,
Section 7-324, which relates to motor vehic le
liability policies; modifying minimum i nsurance
coverage requirements; and providing an effective
date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 47 O.S. 20 21, Section 7-324, is
amended to read as follows:
Section 7-324. (a) A. Certification. A "motor vehicle
liability policy" as the term is used in this article shall mean an
"owner's policy" or an "operator's policy" of liability insurance,
certified as provided in Section 7 -321 or Section 7-322 for which a
security verification form, as defined in Se ction 7-600 of this
title, has been issued as proof of financial responsibility, and
issued, except as otherwise provided in Section 7-322 7-204 of this
title, by an insurance carrier duly authorized to transact business
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in this state, to or for the benefi t of the person named therein a s
insured.
(b) B. Owner's policy. Such owner 's policy of liability
insurance:
1. Shall designate by explicit description or by appropriate
reference all vehicles with respect to which coverag e is thereby to
be granted; and
2. Shall insure the person na med therein and any other person
except as herein provided, as insured, using any such vehicle or
vehicles with the express or implied permission of suc h named
insured, against loss from the lia bility imposed by law for damag es
arising out of the ownership , maintenance or use of such vehicle or
vehicles within the United States of America or the Dominion of
Canada, subject to limits exclusive of interest and costs, with
respect to each such vehic le, as follows: Twenty-five Thousand
Dollars ($25,000.00) bec ause of bodily injury to or death of one
person in any one accident and, subject to said limit for one
person, Fifty Thousand Dollars ($50,000.00) becau se of bodily injury
to or death of two or more persons in any one acciden t, and Twenty-
five Thousand Dollars ($25,000.00) because of injury to or
destruction of property of others in any one accident.
a. beginning on January 1, 202 3, Thirty Thousand Dollar s
($30,000.00) because of bodily injury to or death of
one person in any one accident and, subject to sa id
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limit for one person, Sixty Thousand Dollars
($60,000.00) because of bodily injury to or death of
two or more persons in any one accident, and Thirty
Thousand Dollars ($30,000.00) because of injury to or
destruction of property of others in any one acci dent,
b. beginning on January 1, 202 4, Thirty-five Thousand
Dollars ($35,000.00) because of bodily injury to or
death of one person in any one accident and, subject
to said limit for one person, Seventy Thousand Dollars
($70,000.00) because of bodily injur y to or death of
two or more persons i n any one accident, and Thirty -
five Thousand Dollars ($35,000.00) because of injury
to or destruction of property of others in any one
accident,
c. beginning on January 1, 2025, Forty Thousand Dollars
($40,000.00) because of bodily injury to or death of
one person in any one accident and, subject to said
limit for one person, Eighty Thousand Dollars
($80,000.00) because of bodily injury to or death of
two or more persons in any one acciden t, and Forty
Thousand Dollars ($40,000.00) because of injury to or
destruction of property of others in any one accident ,
d. beginning on January 1, 202 6, Forty-five Thousand
Dollars ($45,000.00) because of bodily injury to o r
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death of one person in any on e accident and, subject
to said limit for one person, Ninety Thousand Dollars
($90,000.00) because of bodily injury to or death of
two or more persons in any one accident, and Forty-
five Thousand Dollars ($45,000.00) because of injury
to or destruction of property of others in any one
accident, and
e. beginning on January 1, 202 7, Fifty Thousand Dollars
($50,000.00) because of bodily injury to or death of
one person in any one accident and, subject to said
limit for one person , One Hundred Thousand Dollars
($100,000.00) because of bodily injury to or death of
two or more persons in any one accident, and Fifty
Thousand Dollars ($50,000.00) because of injury to or
destruction of property of others in any one accident ;
and
3. May by agreement in a separate wri tten endorsement between
any named insured and the insurer exclude as insured any person or
persons designated by name from coverage under the policy.
(c) C. Operator's policy. Such operator's policy of liability
insurance shall insure the person named a s insured therein against
loss from the liability imposed upon him or her by law for damages
arising out of the use by him or her of any motor vehicle not owned
by him or her, within the same territorial limits and subject to the
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same limits of liability a s are set forth above with resp ect to an
owner's policy of liability insurance.
(d) D. Required statements in policies. Such motor vehicle
liability policy shall state the name and address of the named
insured, the coverage afforded by the policy, the pr emium charged
therefor, the policy period and the limits of liability, and shall
contain an agreement or be endorsed that insurance is provided
thereunder in accordance with the cover age defined in this chapter
as respects bodily injury and death or proper ty damage, or both, and
is subject to all the provisions of this title.
(e) E. Policy need not insure workmen's workers' compensation.
Such motor vehicle liability policy need not i nsure any liability
under any workmen's workers' compensation law nor any liability on
account of bodily injury to or death of an employee of the insured
while engaged in the employment, other than domestic, of the
insured, or while engaged in the operatio n, maintenance or repair of
any such vehicle nor any liability for damage to property owned by,
rented to, in charge of or transported by the insured.
(f) F. Provisions incorporated in policy. Every motor vehicle
liability policy shall be subject to the following provisions which
need not be contained therein:
1. The liability of the insurance carrier wit h respect to the
insurance required by this title shall become absolute whenever
injury or damage covered by said motor vehicle liability policy
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occurs; said policy may not be canceled or annull ed as to such
liability by any agreement between the insurance carrier and the
insured after the occurrence of the injury or damage; no statement
made by the insured or on his or her behalf and no violation of said
policy shall defeat or void said policy.
2. The satisfaction by the ins ured of a judgment for such
injury or damage shall not be a condition precedent to the right or
duty of the insurance carrier to make payment on account of such
injury or damage.
3. The insurance carrier shall have the right to settle any
claim covered by the policy, and if such settle ment is made in good
faith, the amount thereof shall be deductible from the limits of
liability specified in paragraph 2 of subsection (b) B of this
section.
4. The policy, the written applicat ion therefor, if any, and
any rider or endorsement which does not conflict with the provisions
of this title shall constitute the entire contract between the
parties.
(g) G. Excess or additional coverage. Any pol icy which grants
the coverage required for a motor vehicle liability poli cy may also
grant any lawful coverage in excess of or in addition to the
coverage specified for a motor vehicle liability policy and such
excess or additional coverage shall not be su bject to the provisions
of this title. With respect to a policy which gr ants such excess or
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additional coverage, the term "motor vehicle liability policy " shall
apply only to that part of the coverage which is required by this
section.
(h) H. Reimbursement provision permitted. Any motor vehicle
liability policy may provide t hat the insured shall reimburse the
insurance carrier for any payment the insurance carrier would not
have been obligated to make under the terms of the policy except for
the provisions of this title.
(i) I. Proration of insurance permitted. Any motor ve hicle
liability policy may prov ide for the prorating of the insurance
thereunder with other valid and collectible insurance.
(j) J. Multiple policies. The requirements for a motor v ehicle
liability policy may be fulfilled b y the policies of one or more
insurance carriers which policie s together meet such requirements.
(k) K. Binders. Any binder issued pending the issuance of a
motor vehicle liability policy shall be deemed to fulfi ll the
requirements for such a policy.
SECTION 2. This act shall become effective Janua ry 1, 2023.
COMMITTEE REPORT BY: COMMITTEE ON INSURANCE, dated 03/02/2022 - DO
PASS.