1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 SENATE BILL 1813 By: Paxton
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6 AS INTRODUCED
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7 An Act relating to insurance claims; defining terms;
7 providing application of act; requiring compliance
8 with act by insurer; providing for certain payments
8 for noncompliance by insurer; construing provision;
9 requiring Insurance Commissioner to determine
9 postjudgment interest rate monthly; requiring posting
10 of rate on Insurance Department website; setting
10 postjudgment rates; providing date of accrual for
11 interest awarded as damages; requiring presuit notice
11 by claimant or representative of claimant prior to
12 filing certain action; stating requirements of
12 notice; stating exemptions from presuit notice;
13 requiring court to dismiss certain claims under
13 certain circumstances; providing for admissibility of
14 presuit notice in civil action or alternative dispute
14 resolution; authorizing inspection of property damage
15 at issue upon written notice; providing procedure for
15 inspection; authorizing filing of plea in abatement
16 under certain circumstances; authorizing court to
16 abate an action upon certain findings; providing for
17 automatic abatement without court order under certain
17 circumstances; providing requirements of affidavit by
18 claimant controverting failure to provide presuit
18 notice; providing for specified duration of
19 abatement; prohibiting court from compelling
19 alternative dispute resolution during abatement
20 period; authorizing insurer to make election to
20 accept liability of producer; providing for dismissal
21 of action against producer under certain
21 circumstances; requiring insurer to make producer
22 available for deposition under certain circumstances;
22 stating exception; stating exception to dismissing
23 suit against producer; prohibiting revocation by
23 insurer or nullification by court of election by
24 insurer for producer liability; providing for
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 1 admissibility of certain evidence against producer
1 under certain circumstances; providing admissibility
2 of evidence for this act to supersede civil procedure
2 provisions when conflict exists; prohibiting election
3 of producer liability by insurer if insurer is in
3 receivership; prohibiting making jury aware of
4 election by insurer; providing for determination of
4 amount of attorney fees as determined by trier of
5 fact; stating exception for award of attorney fees;
5 setting time of filing pleadings under this act;
6 providing for codification; and providing an
6 effective date.
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9 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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10 SECTION 1. NEW LAW A new section of law to be codified
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11 in the Oklahoma Statutes as Section 1231 of Title 36, unless there
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12 is created a duplication in numbering, reads as follows:
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13 A. As used in this section:
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14 1. “Claim” means a first-party claim that:
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15 a. is made by an insured under an insurance policy
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16 providing coverage for real property or improvements
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17 to real property,
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18 b. must be paid by the insurer directly to the insured,
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19 and
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20 c. arises from damage to or loss of covered property
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21 caused, wholly or partly, by forces of nature,
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22 including an earthquake or earth tremor, a wildfire, a
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23 flood, a tornado, lightning, a hurricane, hail, wind,
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24 a snowstorm, or a rainstorm;
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 1 2. “Claimant” means a claimant as defined pursuant to Section
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2 1250.2 of Title 36 of the Oklahoma Statutes;
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3 3. “Insurance adjuster” or “adjuster” means an insurance
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4 adjuster as defined pursuant to Section 6202 of Title 36 of the
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5 Oklahoma Statutes;
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6 4. “Insurer” means a corporation, association, partnership, or
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7 individual engaged as a principal in the business of insurance and
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8 authorized or eligible to write property insurance in this state,
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9 including:
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10 a. an insurance company,
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11 b. a reciprocal or interinsurance exchange,
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12 c. a mutual insurance company,
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13 d. a capital stock insurance company,
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14 e. a county mutual insurance company,
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15 f. a farm mutual insurance company,
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16 g. a Lloyd’s plan, or
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17 h. an eligible surplus lines insurer; and
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18 5. “Insurance producer” or “producer” means an insurance
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19 producer as defined pursuant to Section 1435.2 of Title 36 of the
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20 Oklahoma Statutes.
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21 SECTION 2. NEW LAW A new section of law to be codified
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22 in the Oklahoma Statutes as Section 1232 of Title 36, unless there
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23 is created a duplication in numbering, reads as follows:
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 1 A. The provisions of this act shall apply to an action on a
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2 claim against an insurer, producer, or adjuster, including:
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3 1. An action alleging a breach of contract;
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4 2. An action alleging negligence, misrepresentation, fraud, or
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5 breach of a common law duty; or
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6 3. An action brought under the Unfair Claims Settlement
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7 Practices Act.
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8 B. Except as provided in subsection C of this section, if an
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9 insurer liable for a claim is not in compliance with this act, the
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10 insurer shall pay the holder of the policy or the beneficiary making
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11 the claim under the policy interest on the amount of the claim at
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12 the rate of eighteen percent (18%) a year as damages, together with
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13 reasonable attorney fees, in addition to the claim. Nothing in this
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14 section shall prevent the award of prejudgment interest on the
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15 amount of the claim as provided by law.
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16 C. In an action constituting an unfair claim settlement
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17 practice, if an insurer of an insurance policy is not in compliance
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18 with this act, the insurer shall pay the holder of the policy, in
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19 addition to the claim, reasonable attorney fees, and simple interest
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20 on the amount of the claim as damages each year at the rate
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21 determined on the date of judgment by adding five percent (5%) to
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22 the interest rate determined in subsection D of this section.
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23 D. 1. On the fifteenth day of each month, the Insurance
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24 Commissioner shall determine the postjudgment interest rate to be
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 1 applied to a money judgment rendered during the succeeding calendar
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2 month. The Insurance Department shall publish the determined rate
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3 on the website of the Department.
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4 2. The postjudgment interest rate is:
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5 a. the prime rate as published by the Board of Governors
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6 of the Federal Reserve System on the date of
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7 computation,
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8 b. five percent (5%) a year if the prime rate as
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9 published by the Board of Governors of the Federal
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10 Reserve System described by subparagraph a is less
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11 than five percent (5%), or
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12 c. fifteen percent (15%) a year if the prime rate as
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13 published by the Board of Governors of the Federal
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14 Reserve System described by subparagraph a is more
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15 than fifteen percent (15%).
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16 Nothing in this section shall prevent the award of prejudgment
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17 interest on the amount of the claim as provided by law. Interest
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18 awarded under this section as damages shall accrue beginning on the
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19 date the claim was required to be paid.
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20 SECTION 3. NEW LAW A new section of law to be codified
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21 in the Oklahoma Statutes as Section 1233 of Title 36, unless there
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22 is created a duplication in numbering, reads as follows:
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23 A. In addition to any other notice required by law or the
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24 applicable insurance policy, not later than the sixty-first day
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 1 before the date a claimant files an action seeking damages from any
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2 insurer, the claimant shall give written notice to the insurer in
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3 accordance with this section as a prerequisite to filing an action
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4 pursuant to this act.
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5 B. Notice required under this section shall provide:
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6 1. A statement of the acts or omissions giving rise to the
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7 claim;
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8 2. The specific amount alleged to be owed by the insurer on the
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9 claim for damage to or loss of covered property; and
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10 3. Reasonable attorney fees.
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11 C. If an attorney or other representative provides notice under
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12 this section on behalf of a claimant, the attorney or representative
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13 shall:
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14 1. Provide a copy of the notice to the claimant; and
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15 2. Include in the notice a statement that a copy of the notice
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16 was provided to the claimant.
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17 D. Presuit notice required under this section is not required
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18 if giving notice is impracticable and:
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19 1. The claimant has a reasonable belief that there is
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20 insufficient time to give presuit notice before the statute of
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21 limitations will expire; or
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22 2. The action is asserted as a counterclaim.
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23 E. To ensure that a claimant is not prejudiced by having given
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24 the presuit notice required by this section, a court shall dismiss
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 1 without prejudice an action relating to the claim for which notice
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2 is given by the claimant and commenced:
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3 1. Before the sixty-first day after the date the claimant
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4 provides presuit notice under subsection A of this section;
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5 2. By an insurer to whom presuit notice is given under
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6 subsection A of this section; and
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7 3. Against the claimant giving the notice.
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8 F. A claimant who gives notice in accordance with this section
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9 is not relieved of the obligation to give notice under any other
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10 applicable law. Notice given pursuant to this section may be
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11 combined with notice given under any other law.
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12 G. Notice given pursuant to this section is admissible in
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13 evidence in a civil action or an alternative dispute resolution
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14 proceeding.
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15 H. Giving notice pursuant to this section shall not provide a
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16 basis for limiting the evidence of attorney fees, damages, or losses
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17 a claimant may offer at trial.
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18 I. An insurer who receives notice pursuant to this section may
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19 make a settlement offer during a period beginning the date notice is
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20 received and ending on the sixtieth day following the receipt date.
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21 SECTION 4. NEW LAW A new section of law to be codified
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22 in the Oklahoma Statutes as Section 1234 of Title 36, unless there
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23 is created a duplication in numbering, reads as follows:
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 1 Not later than the thirtieth day after receiving a presuit
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2 notice given under Section 3 of this act, an insurer to whom notice
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3 is given may send a written request to the claimant to inspect,
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4 photograph, or evaluate, in a reasonable manner and at a reasonable
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5 time, the property that is the subject of the claim. If reasonably
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6 possible, the inspection, photography, or evaluation must be
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7 completed not later than the sixtieth day after the date the insurer
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8 receives the presuit notice.
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9 SECTION 5. NEW LAW A new section of law to be codified
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10 in the Oklahoma Statutes as Section 1235 of Title 36, unless there
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11 is created a duplication in numbering, reads as follows:
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12 A. In addition to taking any other act allowed by contract or
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13 by any other law, an insurer against whom an action to which this
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14 act applies is pending may file a plea in abatement not later than
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15 the thirtieth day after the date the insurer files an original
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16 answer in the court in which the action is pending if the insurer:
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17 1. Did not receive a presuit notice complying with Section 3 of
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18 this act; or
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19 2. Completed a request pursuant to Section 4 of this act but
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20 was not provided a reasonable opportunity to inspect, photograph, or
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21 evaluate the property that is the subject of the claim.
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22 B. The court shall abate the action if the court finds that the
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23 insurer filing the plea in abatement:
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 1 1. Did not, for any reason, receive a presuit notice complying
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2 with Section 3 of this act; or
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3 2. Completed a request pursuant to Section 4 of this act but
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4 was not provided a reasonable opportunity to inspect, photograph, or
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5 evaluate the property that is the subject of the claim.
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6 C. An action is automatically abated without a court order
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7 beginning on the eleventh day after the date a plea in abatement is
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8 filed if the plea:
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9 1. Is verified and alleges that the insurer against whom the
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10 action is pending:
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11 a. did not receive a presuit notice complying with
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12 Section 3 of this act, or
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13 b. completed a request under Section 4 of this act but
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14 was not provided a reasonable opportunity to inspect,
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15 photograph, or evaluate the property that is the
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16 subject of the claim; and
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17 2. Is not controverted by an affidavit filed by the claimant
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18 before the eleventh day after the date the plea in abatement is
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19 filed.
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20 D. An affidavit described by paragraph 2 of subsection C of
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21 this section controverting whether the insurer against whom the
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22 action is pending received a presuit notice complying with Section 3
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23 of this act shall:
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 1 1. Include as an attachment a copy of the document the claimant
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2 sent to give notice of the claimant’s action; and
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3 2. State the date on which the notice was given.
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4 E. An abatement under this section continues until the later
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5 of:
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6 1. The sixtieth day after the date a notice complying with
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7 Section 3 of this act is given; or
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8 2. The fifteenth day after the date of the requested
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9 inspection, photography, or evaluation of the property is completed
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10 under Section 4 of this act.
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11 F. If an action is abated under this section, a court may not
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12 compel participation in an alternative dispute resolution proceeding
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13 until after the abatement period provided by subsection E of this
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14 section has expired.
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15 SECTION 6. NEW LAW A new section of law to be codified
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16 in the Oklahoma Statutes as Section 1236 of Title 36, unless there
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17 is created a duplication in numbering, reads as follows:
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18 A. Except as provided by subsection H of this section, in an
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19 action to which this act applies, an insurer that is a party to the
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20 action may elect to accept whatever liability a producer or adjuster
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21 might have to the claimant for the acts or omissions of the producer
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22 or adjuster related to the claim by providing written notice to the
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23 claimant.
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