Oklahoma Panel Rejects Earthquake Insurance Notification Bill

An Oklahoma state representative said he is disappointed that a legislative panel rejected a bill aimed at informing consumers about earthquake insurance.

Oklahoma State Rep. Mike Shelton said the House Insurance Committee voted down House Bill 2863, which was opposed by the insurance industry.

It would have ensured Oklahomans are notified of the need to buy earthquake coverage, Shelton said.

“This was a simple bill that only required insurers to notify customers that their property insurance policy does not cover earthquake damage,” said Shelton, D-Oklahoma City. “Under current law, insurance companies must obtain an explicit opt-out from customers declining uninsured motorist coverage, and that system has worked fine for years. I don’t see why we would oppose greater transparency for the customer when it comes to earthquake coverage.”

HB 2863 would have required that customers obtaining or renewing property insurance policies be “notified as to whether the property insurance policy provides coverage for loss caused by the peril of earthquake.”

“After the recent earthquakes, many homeowners experienced significant damage and learned the hard way that it was not covered by a homeowner’s policy,” Shelton said. “My legislation would simply require insurance agents to explicitly notify customers that they do not have earthquake coverage and give them the opportunity to buy it.”

Shelton revised the bill to address the concerns of insurance groups, but noted that lobbyists for the insurance industry still “turned out in force” to oppose it.

“Now that earthquakes have been added to the list of natural disasters facing Oklahoma homeowners, it makes sense to be proactive and encourage property owners to obtain earthquake insurance coverage,” Shelton said. “A house is the biggest single investment most families will ever make, and they should not face the loss of their home due to a lack of information.”

Source: Oklahoma House of Representatives

Topics Catastrophe Natural Disasters Oklahoma