1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 HOUSE BILL 3168 By: Kerbs
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6 AS INTRODUCED
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7 An Act relating to insurance; amending 36 O.S. 2021,
7 Section 1250.8, which relates to motor vehicle total
8 loss or damage claims; prohibiting insurers from
8 requiring certain estimate methods; and providing an
9 effective date.
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12 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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13 SECTION 1. AMENDATORY 36 O.S. 2021, Section 1250.8, is
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14 amended to read as follows:
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15 Section 1250.8 A. If an insurance policy or insurance contract
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16 provides for the adjustment and settlement of first party motor
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17 vehicle total losses, on the basis of actual cash value or
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18 replacement with another of like kind and quality, one of the
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19 following methods shall apply:
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20 1. An insurer may elect to offer a replacement motor vehicle
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21 which is a specific comparable motor vehicle available to the
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22 insured, with all applicable taxes, license fees, and other fees
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23 incident to the transfer of evidence of ownership of the motor
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24 vehicle paid, at no cost to the insured other than any deductible
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 1 provided in the policy. The offer and any rejection thereof shall
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2 be documented in the claim file; or
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3 2. An insurer may elect a cash settlement based upon the actual
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4 cost, less any deductible provided in the policy, to purchase a
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5 comparable motor vehicle, including all applicable taxes, license
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6 fees and other fees incident to a transfer of evidence of ownership,
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7 or a comparable motor vehicle. Such cost may be determined by:
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8 a. the cost of a comparable motor vehicle in the local
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9 market area when a comparable motor vehicle is
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10 currently or recently available in the prior ninety
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11 (90) days in the local market area,
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12 b. one of two or more quotations obtained by an insurer
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13 from two or more qualified dealers located within the
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14 local market area when a comparable motor vehicle is
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15 not available in the local market area, or
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16 c. the cost of a comparable motor vehicle as quoted in
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17 the latest edition of the National Automobile Dealers
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18 Association Official Used Car Guide or monthly edition
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19 of any other nationally recognized published
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20 guidebook.
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21 B. If a first party motor vehicle total loss is settled on a
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22 basis which deviates from the methods described in subsection A of
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23 this section, the deviation shall be supported by documentation
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24 giving particulars of the condition of the motor vehicle. Any
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 1 deductions from such cost, including, but not limited to, deduction
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2 for salvage, shall be measurable, discernible, itemized and
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3 specified as to dollar amount and shall be appropriate in amount.
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4 The basis for such settlement shall be fully explained to a first
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5 party claimant.
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6 C. If liability for motor vehicle damages is reasonably clear,
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7 insurers shall not recommend that third party claimants make claims
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8 pursuant to the third party claimants' own policies solely to avoid
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9 paying claims pursuant to such insurer's insurance policy or
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10 insurance contract.
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11 D. Insurers shall not require a claimant to travel unreasonably
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12 either to inspect a replacement motor vehicle, obtain a repair
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13 estimate or have the motor vehicle repaired at a specific repair
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14 shop.
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15 E. Insurers shall, upon the request of a claimant, include the
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16 deductible of a first party claimant, if any, in subrogation
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17 demands. Subrogation recoveries shall be shared on a proportionate
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18 basis with a first party claimant, unless the deductible amount has
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19 been otherwise recovered. No deduction for expenses shall be made
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20 from a deductible recovery unless an outside attorney is retained to
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21 collect such recovery. The deduction shall then be made for only a
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22 pro rata share of the allocated loss adjustment expense.
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23 F. If an insurer prepares an estimate of the cost of automobile
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24 repairs, such estimate shall be in an amount for which it reasonably
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 1 may be expected that the damage can be repaired satisfactorily. An
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2 insurer shall give a copy of an estimate to a claimant and may
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3 furnish to the claimant the names of one or more conveniently
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4 located repair shops, if requested by the claimant.
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5 G. An insurer shall not require a first party nor third party
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6 claimant to obtain an estimate by the use of photographs, telephone
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7 calls, or in any manner whatsoever other than actual personal
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8 inspection without the consent of the claimant. Insurers shall
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9 obtain consent for every individual claim filed.
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10 G. H. If an amount claimed is reduced because of betterment or
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11 depreciation, all information for such reduction shall be contained
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12 in the claim file. Such deductions shall be itemized and specified
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13 as to dollar amount and shall be appropriate for the amount of
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14 deductions.
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15 H. I. An insurer or its representative shall not require a
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16 claimant to obtain motor vehicle repairs at a specific repair
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17 facility. An insurer or its representative shall not require a
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18 claimant to obtain motor vehicle glass repair or replacement at a
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19 specific motor vehicle glass repair or replacement facility. An
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20 insurer shall fully and promptly pay for the cost of the motor
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21 vehicle repair services or products, less any applicable deductible
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22 amount payable according to the terms of the policy. The claimant
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23 shall be furnished an itemized priced statement of repairs by the
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24 repair facility at the time of acceptance of the repaired motor
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 1 vehicle. Unless a cash settlement is made, if a claimant selects a
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2 motor vehicle repair or motor vehicle glass repair or replacement
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3 facility, the insurer shall provide payment to the facility or
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4 claimant based on a competitive price, as established by that
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5 insurer through market surveys or by the insured through competitive
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6 bids at the insured's option, to determine a fair and reasonable
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7 market price for similar services. Reasonable deviation from this
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8 market price is allowed based on the facts in each case.
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9 I. J. An insurer shall not use as a basis for cash settlement
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10 with a first party claimant an amount which is less than the amount
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11 which an insurer would pay if repairs were made, other than in total
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12 loss situations, unless such amount is agreed to by the insured.
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13 J. K. An insurer shall not force a claimant to execute a full
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14 settlement release in order to settle a property damage claim
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15 involving a personal injury.
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16 K. L. All payment or satisfaction of a claim for a motor
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17 vehicle which has been transferred by title to the insurer shall be
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18 paid by check, draft or electronic payment, payable on demand.
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19 L. M. In the event of payment of a total loss to a third party
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20 claimant, the insurer shall include any registered lienholder as
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21 copayee to the extent of the lienholder's interest.
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22 M. N. As used in this section, "total loss" means that the
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23 vehicle repair costs plus the salvage value of the vehicle meets or
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 1 exceeds the actual cash value of the motor vehicle prior to the
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2 loss, as provided in used automobile dealer guidebooks.
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3 N. O. An insurer shall not offer a cash settlement as provided
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4 in paragraph 2 of subsection A of this section for the purchase of a
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5 comparable motor vehicle and then subsequently sell the motor
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6 vehicle which has been determined to be a total loss back to the
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7 claimant if the insurer has determined that the repair of the
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8 vehicle would not result in the vehicle being restored to operative
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9 condition as provided in Section 1111 of Title 47 of the Oklahoma
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10 Statutes unless the claimant specifies in writing or via an
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11 electronic signature that the claimant understands that the motor
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12 vehicle shall be titled as a "junked vehicle".
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13 SECTION 2. This act shall become effective November 1, 2024.
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15 59-2-8983 MJ 12/13/23
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