Oklahoma Adopts New Insurance Laws Impacting Policyholders’ Right to Assign its Claim and Public Adjuster Compensation

The Oklahoma Insurance Department (OID) has issued Bulletin No. 2025-07, outlining several important legislative changes that will take effect on November 1, 2025. These updates, found in House Bill 1084 and House Bill 1501, introduce new restrictions and requirements that will affect property insurance claims and public adjuster compensation.

For those who work on behalf of policyholders, including public adjusters, restoration professionals, and attorneys, it’s important to understand how these new laws may alter the claims landscape in Oklahoma.

House Bill 1084 – Restrictions on Post-Loss Assignments

House Bill 1084 creates a new statute, 36 O.S. § 1230(B), which prohibits the assignment of post-loss insurance benefits for property damage under auto, residential, or commercial property insurance policies.

In short, no person may solicit or accept an assignment of post-loss insurance benefits. Any such agreement will be considered against public policy and therefore void and unenforceable.

The law does allow a few limited exceptions. Assignments made to a federally insured financial institution, mortgagee, or subsequent purchaser of the property are still valid. The same applies to assignments involving liability coverage under an auto or property policy.

What this means: Contractors and mitigation companies that have traditionally worked under assignment of benefits (AOB) contracts will no longer be able to pursue payment directly from insurers. Policyholders themselves will now have to remain the named party asserting the claim. This change effectively ends the AOB model for most property claims in Oklahoma. These changes will also require policyholders to bear the burden of expending the monies related unexpected mitigation costs and making repairs while waiting for insurers to pay claims. Under the AOB model, many contractors front these expenses while the insurers determine what is owed. Without the AOB, these same contractors are not likely to finance the “claims” process. The insured will be the party harmed and you can expect a sharp increase in contractors placing liens on properties while insurers delay claims while arguing over what is or what is not reasonable. In states that have passed similar legislation, we have seen an increase in lawsuits by contractors against insureds directly related to insurers’ failure to pay or timely evaluate complex mitigation claims, including hurricanes in Florida.

House Bill 1501 – Fee Cap for Public Adjusters Working with Government Entities

House Bill 1501 establishes 36 O.S. § 6224, a new law limiting what public adjusters can charge when representing political subdivisions and public agencies as defined under 51 O.S. § 152.

Under the new rule, the total compensation to a public adjuster, including commissions, expenses, and any other costs, cannot exceed 10% of the insurance settlement amount.

In practical terms: This cap applies only when the insured is a governmental entity, such as a city, county, or school district. Adjusters who handle claims for private policyholders are not affected. However, when dealing with public entities, contracts and billing structures will need to comply with the new 10% limit.