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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 1503 By: Sneed
COMMITTEE SUBSTITUTE
An Act relating to insurance; amending 47 O.S. 20 21,
Section 7-324, which relates to motor vehicle
liability policies; modifying minimum insurance
coverage requirements; and providing an ef fective
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) 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 Sectio n 7-321 or Section 7-322 for which a security
verification form, as defined in Section 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 in this
state, to or for the benefit of the person named t herein as insured.
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(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 coverage is thereby to
be granted; and
2. Shall insure the pers on named therein and any other person
except as herein provided, as insured, using any such vehicle or
vehicles with the express or implied permission o f such named
insured, against loss from the liability imposed by law for damages
arising out of the owne rship, maintenance or use of such vehicle or
vehicles within the United States of America or the Dominion of
Canada, subject to limits exclusive of inte rest and costs, with
respect to each such vehicle, as follows: Twenty-five Thousand
Dollars ($25,000.00) 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, Fifty Thousand Dollars
($50,000.00) One Hundred Thousand Dollars ($100,000.00) because of
bodily injury to or death of two or more persons in any one
accident, and Twenty-five Thousand Dollars ($25,000.00) 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 written endorsement between
any named insured and the insurer exclude as insured any person or
persons designated by name from coverage under the polic y.
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(c) Operator's policy. Such operator 's policy of liability
insurance shall insure the person named as insured therein against
loss from the liability imposed upon him or her by law for damages
arising out of the use by him of any motor vehicle not own ed by him
or her, within the same territorial limits and subject to the same
limits of liability as are set forth above with respect to an
owner's policy of liability insurance.
(d) Required statements in policies. Such motor vehicle
liability policy sha ll state the name and address of the named
insured, the coverage afforded by the policy, the premium cha rged
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 coverage defined in this chapter
as respects bodily injury and death or property damage , or both, and
is subject to all the provisions of this title.
(e) Policy need not insure workmen's workers' compensation.
Such motor vehicle liabilit y policy need not insure any liability
under any workmen's workers' compensation law nor any liability o n
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 enga ged in the operation, 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.
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(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 insur ance carrier with respect to the
insurance required by this title shall become absolute whenever
injury or damage covered by said motor vehicle liabilit y policy
occurs; said policy may not be canceled or annulled as to such
liability by any agreement betwe en 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 insured of a judgm ent 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, an d if such settlement is made in good
faith, the amount thereof shall be deductible from the limits of
liability specified in paragraph 2 of subsection ( b) of this
section.
4. The policy, the written application therefor, if any, and
any rider or endorseme nt which does not conflict with the provisions
of this title shall constitute the entire contract between the
parties.
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(g) Excess or additional coverag e. Any policy which grants the
coverage required for a motor vehicle liability policy 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 shal l not be subject to the provisions
of this title. With respect to a policy which grants such excess or
additional coverage, the term "motor vehicle liability policy " shall
apply only to that part of the coverage which is required by this
section.
(h) Reimbursement provision permitted. Any motor vehicle
liability policy may provide that the insured shall r eimburse 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) Proration of insurance permitted. Any motor vehicle
liability policy may provide for the prorating of the insurance
thereunder with other valid and collectible insurance.
(j) Multiple policies. The requirements for a motor vehicle
liability policy may be fulfilled by the policies of one or more
insurance carriers which polic ies together meet such requirements.
(k) Binders. Any binder issued pending the issuance of a motor
vehicle liability policy shall be deemed to fulfil l the requirements
for such a policy.
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SECTION 2. This act shall become effective Novem ber 1, 2023.
59-1-7661 MJ 02/22/23