Oklahoma’s governor signed legislation proposed by the state insurance department that specifies certain required and prohibited actions of public adjusters.
According to Insurance Commissioner John D. Doak, Senate Bill 439, signed by Gov. Mary Fallin aims to protect Oklahoma storm victims, and ensure transparency and accountability in the insurance adjusting process.
The law becomes effective Nov. 1.
Public adjusters are licensed insurance claims adjusters who appraise and negotiate a claim on behalf of the policyholder.
Among the new rules included in SB 439, written by Sen. Marty Quinn, R-Claremore, and Rep. Randy Grau, R-Oklahoma City:
- A public adjuster cannot charge more than 10 percent of the total claim on a non-commercial claim after a disaster.
- A public adjuster must hold any insurance proceeds on behalf of the policyholder in a non-interest bearing account in a FDIC-insured bank.
- Claim records must be kept for at least five years and are subject to inspection by the insurance commissioner.
The new law also makes unauthorized adjusting practices a misdemeanor.
Topics Oklahoma
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