OID and state lawmakers develop plans to address homeowner insurance costs

OKLAHOMA CITY — A comprehensive package of legislative policy proposals designed to provide Oklahomans with stronger consumer protections, enhanced transparency, and relief from rising homeowners insurance premiums, was announced recently by the state Insurance Department.

Insurance Commissioner Glen Mulready said the proposals reflect ongoing efforts to collaborate with lawmakers, industry stakeholders, and consumer advocates, with a specific goal: ensure fair treatment, handle claims faster, and improve access to affordable coverage.

"Oklahomans deserve an insurance market that is transparent, responsive, and accountable," Mulready said. "This package addresses consumer frustrations – including slow claims responses, limited disclosure from insurers, and premium increases — while helping stabilize the state's insurance market."

Oklahoma policyholders have experienced "a challenging few years," said state Rep. Mark Tedford, R-Tulsa. "While we can't control severe weather or the rising cost of building materials, strengthening property resiliency, pursuing tort reform, and closing administrative loopholes in current law are the right steps forward."

Combined with recent anti-fraud and tort-reform measures, "I believe the Legislature has taken meaningful action to put sound prevention and mitigation mechanisms in place for the market," Tedford said.

"We cannot legislate the weather we face in this state, the losses that occur and the continual rising cost in labor and materials that affect overall claims cost," said Sen. Aaron Reinhardt, R-Jenks.

"What we can do is continue to work on tort reform and put guardrails in place to stem the rising cost of litigation. We can also focus on consumer protection measures and ensure that we are holding insurance companies accountable and expediting the claims process and any issues that may arise."

Key components

of 2026 legislation

Shortened response deadlines for complaints: Insurers must respond to Oklahoma Insurance Department consumer complaint inquiries within 14 days (reduced from 20 days). Insurers also must respond to claims questions or information requests from insured customers within 14 days (reduced from 30 days).

Faster claim acknowledgment and estimates: Insurers must acknowledge the filing of a claim within 14 days (reduced from 30 days). Also, after an adjuster's estimate is generated, a detailed estimate must be provided to the policyholder within seven days.

Quicker claim decisions: Claim acceptance or denial would be required within 30 days (reduced from 60 days). Final claim resolution deadline would be reduced from 120 days to 90. Interest would be paid at 10% on untimely payments, mirroring life and health statutes.

Homeowner Bill of Rights: Establish, in statute, a clear set of rights and timelines for homeowners during the claims process, along with guidance on what steps consumers should take when filing a claim.

Mandatory FORTIFIED roof discounts: Require insurers to offer a discount for homes built or retrofitted to IBHS FORTIFIED standards, helping homeowners lower their premiums through proven risk-mitigation upgrades.

Protection from aerial imaging misuse: Prohibit insurers from denying claims, refusing coverage, non-renewing policies, or reducing coverage based solely on aerial images.

Roof age fairness requirements: Insurers may not non-renew, refuse to issue, or reduce coverage solely because a roof is 15 years or older. Homeowners may obtain an independent inspection (at their own cost) to appeal roof-age determinations. Insurers may not deny or non-renew solely due to roof age if an authorized inspection confirms at least five years of useful life remaining.

Clarified building code requirements: Updates statutory language to ensure insurers must provide coverage consistent with applicable building codes, whether local municipalities enforce those codes.

Quarterly property and casualty market stability statements: Require insurers to submit quarterly reports — similar to data calls — on non-renewals, market withdrawals, written premium, and other key indicators affecting consumers and the state's insurance market.

Motor vehicle lookback period fix: Close a loophole that allows entities outside the Department of Public Safety to use motor vehicle violation data beyond the legal three-year lookback period.

Mandatory Eagle mediation availability: Applies to residential, commercial-residential, and auto claims. May be requested by policyholders, first-party claimants, third-party claimants, or assignees. Available only after consumers complete the OID complaint process. Not allowed once civil litigation begins. Establishes penalties for insurers who fail to comply with mediation requirements. Mediation limits costly legal expenses passed on to consumers.

Attorney fees: Legislation would codify that attorney fees could not be awarded to either party. This would help disincentivize frivolous lawsuits, reduce litigation costs, and further stabilize the market. As lawsuits increase the costs of claims, insurers then raise rates to transfer those costs to Oklahoma policyholders.

"These reforms would make Oklahoma a leader in consumer-focused insurance regulation," Mulready said. "We have seen positive results of similar legislation around the country, and by strengthening timelines, improving communication, expanding mediation options, and requiring fair treatment, we would be helping Oklahomans recover faster and maintain access to coverage they can depend on."

The Second Regular Session of the 60th Oklahoma Legislature convenes at noon Feb. 2, 2026.