Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1 STATE OF OKLAHOMA
1
2 2nd Session of the 60th Legislature (2026)
2
3 SENATE BILL 1913 By: Reinhardt
3
4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to insurance; amending 12 O.S. 2021,
7 Section 1804, which relates to written consent to
8 dispute resolution proceedings; providing certain
8 exception; defining term; establishing provisions of
9 certain dispute resolution program; establishing
9 certain requirements for insurer to participate in
10 certain mediation; establishing certain claims as not
10 eligible; requiring certain negotiation in good
11 faith; establishing certain requirements for
11 rescinding certain settlement; establishing certain
12 settlement agreements as binding; requiring certain
12 mediation conference; establishing requirements for
13 good cause; allowing conference to be expedited in
13 certain situations; establishing requirements for
14 insurers to be deemed to have appeared; establishing
14 certain civil penalty; allowing Insurance
15 Commissioner to promulgate rules; providing for
15 codification; and providing an effective date.
16
16
17
17
18 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
18
19 SECTION 1. AMENDATORY 12 O.S. 2021, Section 1804, is
19
20 amended to read as follows:
20
21 Section 1804. A. Prior to commencement of any dispute
21
22 resolution proceedings, the disputing parties shall enter into a
22
23 written consent which specifies the method by which the parties
23
24 shall attempt to resolve the issues in dispute.
24
Req. No. 2915 Page 1
1 B. The written consent shall be in a form prescribed by the
1
2 Administrative Director of the Courts and shall include the
2
3 following:
3
4 1. The rights and obligations of all parties pursuant to the
4
5 provisions of the Dispute Resolution Act; and
5
6 2. The confidentiality of the proceedings.
6
7 C. If the parties agree to have the resolution reduced to
7
8 written form, a copy shall be provided to the parties.
8
9 D. An alternative dispute resolution pursuant to Section 2 of
9
10 this act shall not be subject to the provisions of this section.
10
11 SECTION 2. NEW LAW A new section of law to be codified
11
12 in the Oklahoma Statutes as Section 1250.4a of Title 36, unless
12
13 there is created a duplication in numbering, reads as follows:
13
14 A. For purposes of this section, "claim" means any dispute
14
15 between an insurer and a policyholder relating to a material issue
15
16 of fact other than a dispute:
16
17 1. Where the insurer has a reasonable basis to suspect fraud;
17
18 2. When there is no coverage under the policy based on
18
19 presented facts as to the cause of loss;
19
20 3. Where the insurer has a reasonable basis to believe that the
20
21 policyholder has intentionally made a material misrepresentation of
21
22 fact which is relevant to the claim, and the entire request for
22
23 payment of a loss has been denied on the basis of the material
23
24 misrepresentation;
24
Req. No. 2915 Page 2
1 4. When the policyholder suffers no actual monetary or property
1
2 loss, based on presented facts;
2
3 5. When a claim is outside the time frames prescribed in
3
4 applicable law; or
4
5 6. When a claim has been paid in full prior to any mediation
5
6 session held pursuant to this section.
6
7 B. The Insurance Commissioner's dispute resolution program
7
8 shall assist consumers and insurance companies effectively,
8
9 economically, and fairly, and timely resolve disputes with persons
9
10 or entities subject to the jurisdiction of the Insurance
10
11 Commissioner and related to insurance or service warranty claims.
11
12 Such dispute resolution period shall be subject to the provisions of
12
13 Sections 1801 through 1813 of Title 12 of the Oklahoma Statutes.
13
14 C. Mediation may be requested only by the policyholder as a
14
15 first-party claimant, a third party as an assignee of the policy
15
16 benefits, or the insurer.
16
17 D. Mediation shall be voluntary for insurers except when the
17
18 assignee of the policy benefits, by a first-party claimant or third-
18
19 party claimant, for mediation that:
19
20 1. Involves an insurance claim under a residential or
20
21 commercial residential or automobile insurance policy; and
21
22 2. Has not commenced civil litigation relating to the claim to
22
23 be mediated.
23
24
24
Req. No. 2915 Page 3
1 E. A claim shall not be eligible for mediation unless it has
1
2 first been submitted and fully processed through the Insurance
2
3 Department's consumer complaint program.
3
4 F. All parties to the mediation shall negotiate in good faith
4
5 to resolve the dispute and shall have the authority to immediately
5
6 settle the claim. The dispute shall not be required to be resolved
6
7 in mediation. If a written settlement is reached and the
7
8 policyholder is not represented by an attorney, the policyholder
8
9 shall have three (3) business days in which the policyholder may
9
10 rescind the settlement unless such policyholder has cashed or
10
11 deposited any check, draft, or other payment made to the
11
12 policyholder as a result of the settlement. If a settlement
12
13 agreement is reached and is not rescinded, it shall be binding as a
13
14 release of all specific claims presented in the mediation
14
15 conference.
15
16 G. 1. A mediation conference shall be held as scheduled by the
16
17 dispute resolution program coordinator. Upon application by any
17
18 party for continuance, the program coordinator shall, for good cause
18
19 shown or if neither party objects, grant a continuance and shall
19
20 notify all parties of the date and place of the rescheduled
20
21 conference. Good cause shall include:
21
22 a. severe illness, injury, or other emergency that could
22
23 not be controlled by the party and could not
23
24 reasonably be remedied by the party prior to the
24
Req. No. 2915 Page 4
1 conference by providing a replacement representative,
1
2 or
2
3 b. the necessity of obtaining additional information,
3
4 securing the attendance of a necessary professional,
4
5 or the avoidance of significant financial hardship.
5
6 2. If the policyholder demonstrates to the mediator the need
6
7 for expedited mediation conference due to an undue hardship, the
7
8 conference shall be conducted at the earliest date convenient to all
8
9 of the parties and the mediator. Undue hardship shall be
9
10 demonstrated if holding the conference on a non-expedited basis
10
11 would interfere with or contradict the treatment of a severe illness
11
12 or injury, substantially impair a party's ability to assert their
12
13 position at the conference, result in significant financial
13
14 hardship, or other reasonably justified grounds.
14
15 H. An insurer shall be deemed to have failed to appear if the
15
16 insurer's representative lacks authority to settle the full value of
16
17 the claim. The authority to settle a claim shall include the
17
18 ability to disburse the full settlement amount within ten (10) days
18
19 of the conclusion of the conference. The insurer shall produce at
19
20 the conference a copy of the policy and shall bring the entire
20
21 claims file to such conference.
21
22 I. Any violation of this section by an insurer shall subject
22
23 the insurer to discipline including a civil penalty not less than
23
24
24
Req. No. 2915 Page 5
1 One Hundred Dollars ($100.00), in addition to any other penalties
1
2 provided by law.
2
3 J. The Commissioner shall be authorized to promulgate rules
3
4 necessary for the enforcement of the provisions of this section.
4
5 SECTION 3. This act shall become effective November 1, 2026.
5
6
6
7 60-2-2915 CAD 1/15/2026 8:47:29 AM
7
8
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
18
18
19
19
20
20
21
21
22
22
23
23
24
24
Req. No. 2915 Page 6Every fact on this page links to its source, starting with the official bill record.