Bill No. 2144, known as the "Insurance Consumers Protection Act," aims to enhance protections for insurance consumers in Oklahoma by establishing a statutory cause of action for bad faith claims against insurers. The bill defines key terms such as "bad faith," "first-party claimant," and "insurer," and clarifies that the duty of good faith and fair dealing is a nondelegable duty inherent in every insurance contract. It allows both first-party claimants and third-party beneficiaries to bring actions against insurers for unreasonable delays or denials of benefits, and it eliminates the requirement to exhaust administrative remedies before filing a lawsuit. Additionally, the bill ensures that claimants are entitled to a trial by jury and that issues of bad faith are questions of fact for the jury to decide.

The legislation also outlines the conditions under which a cause of action for bad faith may arise, including unreasonable refusal to pay claims and the insurer's lack of a reasonable basis for such refusal. It provides for the assessment of damages, including compensatory and punitive damages, with specific categories and limits based on the insurer's conduct. Notably, any provisions in insurance contracts that reserve discretion to the insurer for interpreting terms or determining eligibility for benefits are declared void. The act is set to take effect on November 1, 2025, and emphasizes that the new statutory causes of action do not limit existing common law remedies for bad faith claims.