Old	New	Differences
1	1
2	2
3	3
4	4	Req. No. 608 Page 1 1
5	5	2
6	6	3
7	7	4
8	8	5
9	9	6
10	10	7
11	11	8
12	12	9
13	13	10
14	14	11
15	15	12
16	16	13
17	17	14
18	18	15
19	19	16
20	20	17
21	21	18
22	22	19
23	23	20
24	24	21
25	25	22
26	26	23
27	27	24
28	28	1
29	29	2
30	30	3
31	31	4
32	32	5
33	33	6
34	34	7
35	35	8
36	36	9
37	37	10
38	38	11
39	39	12
40	40	13
41	41	14
42	42	15
43	43	16
44	44	17
45	45	18
46	46	19
47	47	20
48	48	21
49	49	22
50	50	23
51	51	24
52	52
53	53	STATE OF OKLAHOMA
54	54
55	55	1st Session of the 58th Legislature (2021)
56	56
57	57	SENATE BILL 290 By: Quinn
58	58
59	59
60	60
61	61
62	62
63	63	AS INTRODUCED
64	64
65	65	An Act relating to property and casualty insurance;
66	66	amending 36 O.S. 2011, Section 1250 .7, as amended by
67	67	Section 7, Chapter 9 5, O.S.L. 2018 (36 O.S. Supp.
68	68	2020, Section 1250.7), which relates to denial or
69	69	acceptance of claim; establishing procedures for
70	70	demand for payment of policy limits by an insured
71	71	after acceptance of claim; and providing an effective
72	72	date.
73	73
74	74
75	75
76	76
77	77	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
78	78	SECTION 1. AMENDATORY 36 O.S. 2011, Section 1250.7, as
79	79	amended by Section 7, Chapter 95, O.S.L. 2018 (36 O.S. Sup p. 2020,
80	80	Section 1250.7), is amended to read as follows:
81	81	Section 1250.7. A. Within sixty (60) days after receipt by a
82	82	property and casualty insurer of properly executed proofs of loss,
83	83	the first party claimant shall be advised of the acceptance or
84	84	denial of the claim by the insurer, or if further investigation is
85	85	necessary. No prope rty and casualty insurer shall deny a claim
86	86	because of a specific policy provision, condition, or e xclusion
87	87	unless reference to such provision, condition , or exclusion is
88	88	included in the denial. A denial shall be given to any claimant in
89	89
90	90
91	91	Req. No. 608 Page 2 1
92	92	2
93	93	3
94	94	4
95	95	5
96	96	6
97	97	7
98	98	8
99	99	9
100	100	10
101	101	11
102	102	12
103	103	13
104	104	14
105	105	15
106	106	16
107	107	17
108	108	18
109	109	19
110	110	20
111	111	21
112	112	22
113	113	23
114	114	24
115	115	1
116	116	2
117	117	3
118	118	4
119	119	5
120	120	6
121	121	7
122	122	8
123	123	9
124	124	10
125	125	11
126	126	12
127	127	13
128	128	14
129	129	15
130	130	16
131	131	17
132	132	18
133	133	19
134	134	20
135	135	21
136	136	22
137	137	23
138	138	24
139	139
140	140	writing, and the claim file of the property and casualty insurer
141	141	shall contain a copy of the denial. If there is a reasonable basis
142	142	supported by specific information available for review b y the
143	143	Commissioner that the first party claimant has fraudulently caused
144	144	or contributed to the loss, a property and casualty insurer shall be
145	145	relieved from the requirements of this su bsection. In the event of
146	146	a weather-related catastrophe or a major natur al disaster, as
147	147	declared by the Governor, the Insurance Commissioner may extend the
148	148	deadline imposed under this subsection an additional twenty (20)
149	149	days.
150	150	B. If a claim is denied for reasons other than those described
151	151	in subsection A of this section, and is made by any other means than
152	152	writing, an appropriate notation shall be made in th e claim file of
153	153	the property and casualty insurer until such time as a written
154	154	confirmation can be made.
155	155	C. Every property a nd casualty insurer shall complete
156	156	investigation of a claim within sixty (60) da ys after notification
157	157	of proof of loss unless such investigation cannot reasonably be
158	158	completed within such time. If such investigation cannot be
159	159	completed, or if a property a nd casualty insurer needs more time to
160	160	determine whether a claim should be accep ted or denied, it shall so
161	161	notify the claimant with in sixty (60) days after receipt of the
162	162	proofs of loss, giving reasons why more time is needed. If the
163	163	investigation remains incomplete, a property and casualty insurer
164	164
165	165
166	166	Req. No. 608 Page 3 1
167	167	2
168	168	3
169	169	4
170	170	5
171	171	6
172	172	7
173	173	8
174	174	9
175	175	10
176	176	11
177	177	12
178	178	13
179	179	14
180	180	15
181	181	16
182	182	17
183	183	18
184	184	19
185	185	20
186	186	21
187	187	22
188	188	23
189	189	24
190	190	1
191	191	2
192	192	3
193	193	4
194	194	5
195	195	6
196	196	7
197	197	8
198	198	9
199	199	10
200	200	11
201	201	12
202	202	13
203	203	14
204	204	15
205	205	16
206	206	17
207	207	18
208	208	19
209	209	20
210	210	21
211	211	22
212	212	23
213	213	24
214	214
215	215	shall, within sixty (60) days from the date of the initial
216	216	notification, send to such claimant a letter setting forth the
217	217	reasons additional time is needed for investigation. Except fo r an
218	218	investigation of poss ible fraud or arson which is supported by
219	219	specific information giving a reasonab le basis for the
220	220	investigation, the time for invest igation shall not exceed one
221	221	hundred twenty (120) days after receipt of proof of loss. Provided,
222	222	in the event of a weather -related catastrophe or a major natural
223	223	disaster, as declared by the Governor, the Insurance Commissioner
224	224	may extend this deadline fo r investigation an additional twenty (20)
225	225	days.
226	226	D. Upon acceptance by a property and casualty insu rer of
227	227	properly executed proof of loss pursuant to this section, a claimant
228	228	may make a demand for payment of policy limits or any portion
229	229	thereof prior to the filing of a lawsuit . The demand shall be made
230	230	in writing and provide a telephone number, fa csimile number and/or
231	231	email address to which the response of the insurer shall be
232	232	directed. The demand shall be sent by certified mail with return
233	233	receipt to the registered service agent of the insurer or to the
234	234	Insurance Commissioner if no service agent has been designated by
235	235	the insurer pursuant to Section 621 of this title . The claimant
236	236	shall be advised of t he acceptance or denial of the demand by the
237	237	insurer within ninety (90) days from the date the demand is received
238	238
239	239
240	240	Req. No. 608 Page 4 1
241	241	2
242	242	3
243	243	4
244	244	5
245	245	6
246	246	7
247	247	8
248	248	9
249	249	10
250	250	11
251	251	12
252	252	13
253	253	14
254	254	15
255	255	16
256	256	17
257	257	18
258	258	19
259	259	20
260	260	21
261	261	22
262	262	23
263	263	24
264	264	1
265	265	2
266	266	3
267	267	4
268	268	5
269	269	6
270	270	7
271	271	8
272	272	9
273	273	10
274	274	11
275	275	12
276	276	13
277	277	14
278	278	15
279	279	16
280	280	17
281	281	18
282	282	19
283	283	20
284	284	21
285	285	22
286	286	23
287	287	24
288	288
289	289	by the insurer, as evidenced by the return receipt and calculated
290	290	pursuant to Section 2006 of Title 12 of the Oklahoma Statutes.
291	291	E. Insurers shall not fail to settle first party claims on the
292	292	basis that responsibility for payment should be assumed by o thers
293	293	except as may otherwise be provided b y policy provisions.
294	294	E. F. Insurers shall not continue or delay negotiations for
295	295	settlement of a clai m directly with a claimant who is neither an
296	296	attorney nor represented by an attorney, for a length of time which
297	297	causes the claimant’s rights to be affect ed by a statute of
298	298	limitations, or a policy or contract time limit, without giving the
299	299	claimant written notice that the time limit is expiring and may
300	300	affect the claimant’s rights. Such notice shall be given to firs t
301	301	party claimants thirty (30) days, and to third party claimants sixty
302	302	(60) days, before the date on which such time limit may expire.
303	303	F. G. No insurer shall make statements which indicate that the
304	304	rights of a third party claimant may be impaired if a form o r
305	305	release is not completed within a g iven period of time unless the
306	306	statement is given for the purpose of notifying a third party
307	307	claimant of the provision of a statute of limitations.
308	308	G. H. If a lawsuit on the claim is initiated, the time limits
309	309	provided for in this section shall not apply.
310	310	SECTION 2. This act shall become effective November 1, 2021.
311	311
312	312	58-1-608 CB 1/6/2021 11:57:51 AM

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB290 Compare Versions