This bill establishes new regulations for auto insurers in Oklahoma regarding their accident investigation processes and claims payments. Insurers are required to submit their accident investigation procedures to the Oklahoma Insurance Department by July 1, 2027, or upon initial application for licensure thereafter. Noncompliance will result in escalating penalties, starting with a fine of up to $5,000 for a first offense, $10,000 for a second offense, and a suspension of the insurer's ability to write new business for 90 days after a third offense.

Additionally, the bill mandates that insurers must pay claims based on police reports from auto accidents. Insurers have the option to contest claims by requesting arbitration through the Oklahoma Insurance Department. If found in violation of this requirement, the insurer will also face a 90-day suspension of their privilege to write new business in the state. The act is set to take effect on November 1, 2026.