Oklahoma: Public Adjuster Regulation Act Bill Passes House Insurance Committee

The Oklahoma House Committee on Insurance passed HB 3094 on Feb. 21, paving the way for legislation that will establish professional standards for public adjusters in the state and provide important consumer protections to Oklahoma policyholders in times of their greatest need.

HB 3094 establishes the Public Adjuster Regulation Act to provide much-needed regulation of this unregulated profession. Among other benefits, the bill imposes a 10 percent cap on the commission payable to public insurance adjusters for a settlement and prohibits public adjusters from participating in lawsuits or receiving judgment rewards.

NAMIC submitted a letter in support HB 3094, which the committee passed 6-0. Bill sponsor Rep. Mark Tedford is the committee’s vice chair.

According to the bill, public adjusters must have a written contract with the insured, specifying contact, license, and agreement information. Further, the bill also prohibits construction contractors from settling or negotiating claims without a public adjuster license. Contractors are further prohibited from hiring a public adjuster. Additionally, the measure prohibits public adjusters from engaging in claims adjustment activities for any educational institution covered under an insurance contract issued by an interlocal entity.