House Bill No. 1160 amends the Oklahoma Property and Casualty Insurance Guaranty Association Act to enhance its functionality and clarify its provisions. The bill modifies the purpose of the Act to include minimizing financial loss to claimants due to insurer insolvency and provides clearer definitions for terms such as "covered claim," "member insurer," and "cybersecurity insurance." It expands the applicability of the Act to include new types of insurance and clarifies the Association's obligations regarding the payment of claims, particularly for cybersecurity insurance, which now has specific coverage limits. Additionally, the bill introduces provisions allowing the Association to join certain organizations and make specific payments while prohibiting the use of its existence for selling or soliciting insurance.

The amendments also update terminology, replacing "association" with "Association" to emphasize its formal designation. The bill establishes that the Association's obligation to defend an insured ceases upon payment of the lesser of the covered claim obligation limit or the applicable policy limit. It outlines the Association's rights as a payor of last resort, including the ability to pursue salvage and subrogation recoverables, and specifies the allocation of claims and expenses among different accounts. Furthermore, it introduces confidentiality measures for records related to the Association, stating they are not public records under the Oklahoma Open Records Act, with certain exceptions, and prohibits the use of the Association's existence in advertisements for insurance sales. The act is set to take effect on November 1, 2025.