OklahomaHB 1160Oklahoma 2026 Regular SessionHouseWALLET

Insurance; Oklahoma Property and Casualty Insurance Guaranty Association; powers and duties; joining organizations; records; effective date.

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 3 benefits, 4 costs, 2 mixed.

Cyber claimants share a $300,000 payment cap

Beginning November 1, 2025, Oklahoma’s insurance guaranty association has a shared cap for covered cybersecurity claims. For each policy or endorsement, it pays no more than $300,000 for claims tied to one insured event. Claims for the insured’s own losses and claims by others share that cap, regardless of the number of claimants. Other covered claims have a separate $150,000 limit per claimant.

Transferred policies can keep failure protection

Claims can remain eligible after another insurer takes full responsibility, leaving the original Oklahoma member insurer with no policy duties. A court in the new insurer’s home state must issue a final liquidation order finding insolvency. Coverage uses the claim-submission and liquidation dates that apply as though the obligation stayed with the original insurer. A nonmember takeover needs prior regulatory or court approval, and a policy replacement needs any required policyholder consent. An insurer licensed in Oklahoma when it took over can qualify as insolvent after the law’s effective date, November 1, 2025.

Late insurance claims can lose protection

Claims filed with the Association after the earlier applicable deadline are excluded. The provision compares the final court-set deadline with a specified statutory date later than 18 months after the liquidation order. This timing exclusion does not apply to workers’ compensation benefits governed by Oklahoma’s workers’ compensation law and rules.

Some policies lack insurance failure protection

The law excludes government-provided or government-guaranteed insurance from guaranty association protection. Surplus lines insurers, risk retention groups, and captive insurance companies are not members of this system. Deals transferring investment or credit risk, but no insurance risk, are also excluded. To qualify through the Oklahoma property-location rule, a claim must cover the insured’s own damage to property permanently located in Oklahoma.

Insurance failure agencies must coordinate responses

Beginning November 1, 2025, the Insurance Commissioner must promptly notify the Association’s Executive Director of an insolvency determination. Notice is due within three days after the Commissioner receives notice. The Association may join similar state groups and authorize a liaison to bind it in agreements or settlements with receivers. It must make reasonable efforts to work with receivers and other guaranty associations, including through shared data standards.

Insurance sellers cannot advertise guaranty protection

Beginning November 1, 2025, insurance sellers cannot use the Association’s existence in ads to sell covered insurance. The ban includes insurers, insurance producers, and insurer affiliates. It does not apply to the Association or entities that do not sell or solicit insurance.

Departing insurers still owe failure costs

An insurer stops being a member the day after its Oklahoma license for covered insurance expires or ends. It still owes obligations tied to another insurer’s insolvency that occurred before its license ended. Those obligations include assessments charged after its membership ends.

Insurance guaranty records stay mostly private

Beginning November 1, 2025, most Association records are confidential and cannot be publicly inspected or disclosed. This protects information in those records but limits public access. The rule excludes the operating plan and information required to be filed with the Insurance Commissioner, unless another law blocks release. Confidential sharing with other guaranty associations and the liquidator is allowed.

Repayable cyber help for wealthy insureds

Beginning November 1, 2025, the Association may choose to pay cybersecurity obligations for insureds worth more than $50 million. The test uses December 31 of the year before insolvency and includes the insured’s subsidiaries and affiliates. These payments are discretionary and create no ongoing duty to pay. The Association must recover every payment, related allocated claim-adjustment expenses, attorney fees, and court costs from the insured.

Sponsors & Cosponsors

Sponsor

Mark Tedford
Republican • House

Cosponsors

Aaron Reinhardt
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 256 • No: 2

House vote • 5/21/2025

FOURTH READING

Yes: 89 • No: 0

Senate vote • 4/28/2025

THIRD READING

Yes: 44 • No: 0

Senate vote • 4/10/2025

Committee vote: Business & Insurance

Yes: 8 • No: 0

House vote • 3/3/2025

THIRD READING

Yes: 93 • No: 2

House vote • 2/25/2025

DO PASS

Yes: 15 • No: 0

House vote • 2/11/2025