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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
SENATE BILL 290 By: Quinn
AS INTRODUCED
An Act relating to property and casualty insurance;
amending 36 O.S. 2011, Section 1250 .7, as amended by
Section 7, Chapter 9 5, O.S.L. 2018 (36 O.S. Supp.
2020, Section 1250.7), which relates to denial or
acceptance of claim; establishing procedures for
demand for payment of policy limits by an insured
after acceptance of claim; and providing an effective
date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 36 O.S. 2011, Section 1250.7, as
amended by Section 7, Chapter 95, O.S.L. 2018 (36 O.S. Sup p. 2020,
Section 1250.7), is amended to read as follows:
Section 1250.7. A. Within sixty (60) days after receipt by a
property and casualty insurer of properly executed proofs of loss,
the first party claimant shall be advised of the acceptance or
denial of the claim by the insurer, or if further investigation is
necessary. No prope rty and casualty insurer shall deny a claim
because of a specific policy provision, condition, or e xclusion
unless reference to such provision, condition , or exclusion is
included in the denial. A denial shall be given to any claimant in
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writing, and the claim file of the property and casualty insurer
shall contain a copy of the denial. If there is a reasonable basis
supported by specific information available for review b y the
Commissioner that the first party claimant has fraudulently caused
or contributed to the loss, a property and casualty insurer shall be
relieved from the requirements of this su bsection. In the event of
a weather-related catastrophe or a major natur al disaster, as
declared by the Governor, the Insurance Commissioner may extend the
deadline imposed under this subsection an additional twenty (20)
days.
B. If a claim is denied for reasons other than those described
in subsection A of this section, and is made by any other means than
writing, an appropriate notation shall be made in th e claim file of
the property and casualty insurer until such time as a written
confirmation can be made.
C. Every property a nd casualty insurer shall complete
investigation of a claim within sixty (60) da ys after notification
of proof of loss unless such investigation cannot reasonably be
completed within such time. If such investigation cannot be
completed, or if a property a nd casualty insurer needs more time to
determine whether a claim should be accep ted or denied, it shall so
notify the claimant with in sixty (60) days after receipt of the
proofs of loss, giving reasons why more time is needed. If the
investigation remains incomplete, a property and casualty insurer
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shall, within sixty (60) days from the date of the initial
notification, send to such claimant a letter setting forth the
reasons additional time is needed for investigation. Except fo r an
investigation of poss ible fraud or arson which is supported by
specific information giving a reasonab le basis for the
investigation, the time for invest igation shall not exceed one
hundred twenty (120) days after receipt of proof of loss. Provided,
in the event of a weather -related catastrophe or a major natural
disaster, as declared by the Governor, the Insurance Commissioner
may extend this deadline fo r investigation an additional twenty (20)
days.
D. Upon acceptance by a property and casualty insu rer of
properly executed proof of loss pursuant to this section, a claimant
may make a demand for payment of policy limits or any portion
thereof prior to the filing of a lawsuit . The demand shall be made
in writing and provide a telephone number, fa csimile number and/or
email address to which the response of the insurer shall be
directed. The demand shall be sent by certified mail with return
receipt to the registered service agent of the insurer or to the
Insurance Commissioner if no service agent has been designated by
the insurer pursuant to Section 621 of this title . The claimant
shall be advised of t he acceptance or denial of the demand by the
insurer within ninety (90) days from the date the demand is received
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by the insurer, as evidenced by the return receipt and calculated
pursuant to Section 2006 of Title 12 of the Oklahoma Statutes.
E. Insurers shall not fail to settle first party claims on the
basis that responsibility for payment should be assumed by o thers
except as may otherwise be provided b y policy provisions.
E. F. Insurers shall not continue or delay negotiations for
settlement of a clai m directly with a claimant who is neither an
attorney nor represented by an attorney, for a length of time which
causes the claimant’s rights to be affect ed by a statute of
limitations, or a policy or contract time limit, without giving the
claimant written notice that the time limit is expiring and may
affect the claimant’s rights. Such notice shall be given to firs t
party claimants thirty (30) days, and to third party claimants sixty
(60) days, before the date on which such time limit may expire.
F. G. No insurer shall make statements which indicate that the
rights of a third party claimant may be impaired if a form o r
release is not completed within a g iven period of time unless the
statement is given for the purpose of notifying a third party
claimant of the provision of a statute of limitations.
G. H. If a lawsuit on the claim is initiated, the time limits
provided for in this section shall not apply.
SECTION 2. This act shall become effective November 1, 2021.
58-1-608 CB 1/6/2021 11:57:51 AM