HB 1084: Insurance; assignment of benefits; prohibited activity; effective date. - Oklahoma

Floor (House) → Floor (Senate) · 2 edits

MINOR

The bill was updated from the House version to the Senate floor version, incorporating amendments by the Senate Committee on Business and Insurance. The substantive policy content, including definitions, prohibitions on assignment agreements, and penalties, remains identical between the two versions. The primary changes involve formatting, the addition of a specific Senate committee report, and a slight adjustment to the codification section header.

Scope change

No change in the bill's scope or applicability; the legal provisions remain the same.

TECHNICAL

Added a specific report from the Senate Committee on Business and Insurance dated April 24, 2025, replacing the House committee report.

Changed the header from 'HOUSE OF REPRESENTATIVES' to 'SENATE FLOOR VERSION' and updated the codification section title to reflect the new law status.

HB1084 (5-06-25) (REINHARDT) FA1.PDF → Floor (House) · 5 edits

MODERATE

The bill was converted from a Senate version to a House Floor version, which includes the full text of the legislation. The core policy change establishes a prohibition on insurance companies or service providers from accepting assignments of post-loss benefits for auto, residential, or commercial property insurance. This prevents third parties from buying the insured's right to claim money from the insurer after a loss. The law includes specific exceptions for financial institutions and liability coverage, and clarifies that attorneys can still collect fees and insureds can pay service providers directly for covered repairs.

Scope change

The bill's scope is now fully defined for the House of Representatives, moving from a committee amendment stage to a floor-ready version with complete statutory language.

DEFINITION

New definitions were added for 'Assignment agreement' and 'Person' to clarify exactly what the law covers.

REQUIREMENT

A new requirement prohibits soliciting or accepting assignments of insurance benefits for property damage under auto, residential, or commercial policies.

ENFORCEMENT

Violations of the assignment prohibition are classified as unfair or deceptive trade practices subject to existing penalties.

EXCEPTIONS

Specific exceptions were added allowing assignments to federally insured financial institutions and covering liability insurance.

TIMELINE

The law is set to become effective on November 1, 2025.

House Committee Substitute → HB1084 (5-06-25) (REINHARDT) FA1.PDF · 2 edits

MINOR

The bill was amended to clarify that the prohibition on assigning insurance benefits applies to 'service providers,' explicitly including attorneys. Additionally, the list of examples for what constitutes a service provider was shortened to remove redundant phrases, streamlining the definition while maintaining the core restriction.

Scope change

The scope of the bill was clarified to explicitly include attorneys and other service providers under the ban on assigning insurance benefits, ensuring they cannot accept assignments of post-loss benefits.

DEFINITION

Added 'service provider' as a specific category of person prohibited from soliciting or accepting insurance benefit assignments, ensuring attorneys and similar professionals are clearly covered.

Removed the phrase 'including, but not limited to' from the list of services, simplifying the definition of activities that qualify as service provision.

Proposed Policy Committee Substitute 1 → House Committee Substitute · 2 edits

MINOR

The House Committee Substitute removed the 'Proposed Policy' label from the bill title and made minor formatting adjustments to the text. The core legal content, including definitions of prohibited assignment agreements, exemptions for financial institutions, and penalties for violations, remains unchanged.

Scope change

The bill's scope and applicability are unchanged; only the document header and formatting were modified.

TECHNICAL

Removed the 'PROPOSED POLICY COMMITTEE SUBSTITUTE' header and changed it to 'COMMITTEE SUBSTITUTE' to reflect the bill's current status in the legislative process.

Adjusted line numbers and spacing throughout the document to align with the new formatting.

Enrolled (final version) → Proposed Policy Committee Substitute 1 · 1 edit

MINOR

The bill was completely rewritten from its final enrolled version to a new committee substitute version. The substantive policy content regarding insurance assignments remains largely the same, but the text was reorganized, renumbered, and the page structure was altered to reflect a new legislative session.

Scope change

The bill's scope and applicability remain unchanged as the core prohibitions on assigning insurance benefits are preserved.

TECHNICAL

The entire text of the bill was replaced with a new version that reorganized the layout, updated the legislative session reference to the 2025 session, and adjusted page numbering.

Engrossed → Enrolled (final version) · 3 edits · May 29, 2025

MINOR

The bill was finalized from its Engrossed version to the Enrolled version, which is the final version ready for the Governor's signature. The substantive policy content, including definitions of prohibited assignments and effective dates, remained identical. The primary changes are technical formatting corrections and the addition of standard certification blocks for the House, Senate, and Governor.

Scope change

No change to the bill's scope or applicability; the text of the law is identical.

TECHNICAL

Corrected formatting errors in the header and title section, such as removing placeholder lines and fixing the layout of the bill title and sponsors.

Added a 'SUBJECT: Insurance' line to the top of the text, which was missing in the previous version.

Updated the certification and signing pages to reflect the correct passage dates (May 21 for the House and May 7 for the Senate) and added the Office of the Secretary of State section.

Amended And Engrossed → Engrossed · 2 edits · May 8, 2025

MINOR

The bill adds a new definition for 'service provider' and requires insurers to pay service providers directly when the insured agrees to this arrangement, subject to applicable liens. This change shifts payment responsibility from the insured to the service provider in agreed-upon scenarios, aiming to streamline claims and ensure providers are compensated directly.

Scope change

The bill now explicitly covers direct payment scenarios for service providers, expanding the scope of who receives funds under the insurance policy.

DEFINITION

Added a new definition for 'service provider' to clarify who is covered under the direct payment rules.

REQUIREMENT

Added a requirement for insurers to issue direct payments to service providers when the insured agrees, subject to any existing liens.

Introduced → Amended And Engrossed · 4 edits · May 8, 2025

MODERATE

The bill was amended to clarify its definitions and add a new requirement for insurers to issue payments directly to service providers when the insured agrees to this arrangement. The changes also reorganized the text to fix formatting errors and ensure the new provisions regarding direct payments are clearly integrated into the existing rules about prohibited assignment agreements.

Scope change

The bill's scope was expanded to include a specific mandate for insurers to pay service providers directly under certain conditions, while the definition of 'assignment agreement' was broadened to cover a wider range of post-loss benefits.

REQUIREMENT

Insurers are now required to issue payments directly to a person providing services, materials, or items covered under an insurance policy when the insured agrees to this direct payment method.

DEFINITION

The definition of 'assignment agreement' was updated to explicitly include any right of action against the insurer or proceeds acquired from the insurer, ensuring broader coverage of prohibited assignments.

The term 'service provider' was formally defined to include anyone communicating with an insurer on an insured's behalf or involved in inspecting, estimating, protecting, repairing, restoring, or replacing property.

TECHNICAL

Formatting errors in the bill title and summary were corrected, and the text was reorganized to improve clarity and consistency.

Insurance; assignment of benefits; prohibited activity; effective date.

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