Oklahoma Insurance Department and Legislators Announce 2026 Legislative Package to Strengthen Consumer Protections and Address Rising Homeowners Insurance Costs

OKLAHOMA CITY— The Oklahoma Insurance Department (OID) today announced a comprehensive package of 2026 legislative policy proposals designed to provide Oklahomans with stronger consumer protections, enhanced transparency, and meaningful relief from rising homeowners insurance premiums.

Insurance Commissioner Glen Mulready emphasized that the proposals reflect ongoing efforts to collaborate with lawmakers, industry stakeholders, and consumer advocates, with a clear goal: ensure fair treatment, handle claims faster, and improve access to affordable coverage.

“Oklahomans deserve an insurance market that is transparent, responsive, and accountable,” Mulready said. “This package addresses consumer frustrations—including slow claims responses, limited disclosure from insurers, and premium increases—while helping stabilize the state’s insurance market.”

“It has been a challenging few years for Oklahoma policyholders. While we can’t control severe weather or the rising cost of building materials, strengthening property resiliency, pursuing tort reform, and closing administrative loopholes in current law are the right steps forward,” said Rep. Mark Tedford, R-Tulsa. “I applaud the commissioner’s commitment to ensuring policyholders receive prompt and fair treatment before and after a claim. Combined with recent anti-fraud and tort-reform measures, I believe the Legislature has taken meaningful action to put sound prevention and mitigation mechanisms in place for the market.”

“Oklahoma has faced its challenges with significant weather losses, and it has taken its toll on Oklahoma policyholders,” said Sen. Aaron Reinhardt, R-Jenks. “We cannot legislate the weather we face in this state, the losses that occur and the continual rising cost in labor and materials that affect overall claims cost. What we can do is continue to work on tort reform and put guardrails in place to stem the rising cost of litigation. We can also focus on consumer protection measures and ensure that we are holding insurance companies accountable and expediting the claims process and any issues that may arise. I am pleased to see the steps taken by the Insurance Commissioner and his team to address these areas. I look forward to working with him and the legislature to continue our efforts to protect Oklahomans and work to stem the rising costs of insurance here in the state.”

Key Components of the 2026 Legislative Package

Faster Response and Claims Handling

• Shortened Response Deadlines for Complaints:
  • Insurers must respond to OID consumer complaint inquiries within 14 days (reduced from 20 days).
  • Insurers must respond to insureds’ claims questions or information requests within 14 days (reduced from 30 days).
• Faster Claim Acknowledgment & Estimates:
  • Insurers must acknowledge the filing of a claim within 14 days (reduced from 30 days).
  • Once an adjuster’s estimate is generated, a detailed estimate must be provided to the policyholder within 7 days.
• Quicker Claim Decisions:
  • Claim acceptance or denial required within 30 days (reduced from 60 days).
  • Final claim resolution deadline reduced from 120 days to 90 days.
  • Allows interest at 10% on untimely payments, mirroring Life & Health statutes.

Strengthening Consumer Rights

• Homeowner Bill of Rights:
  • Establishes, in statute, a clear set of rights and timelines for homeowners during the claims process, along with guidance on what steps consumers should take when filing a claim.
• Mandatory FORTIFIED Roof Discounts:
  • Requires insurers to offer a discount for homes built or retrofitted to IBHS FORTIFIED standards, helping homeowners’ lower premiums through proven risk-mitigation upgrades.
• Protection from Aerial Imaging Misuse:
  • Prohibits insurers from denying claims, refusing coverage, non-renewing policies, or reducing coverage based solely on aerial images.
• Roof Age Fairness Requirements:
  • Insurers may not non-renew, refuse to issue, or reduce coverage solely because a roof is 15 years or older.
  • Homeowners may obtain an independent inspection (at their own cost) to appeal roof-age determinations.
  • Insurers may not deny or non-renew solely due to roof age if an authorized inspection confirms at least 5 years of useful life remaining.
• Clarified Building Code Requirements:
  • Updates statutory language to ensure insurers must provide coverage consistent with applicable building codes, whether local municipalities enforce those codes.

Improved Market Transparency & Data Reporting

• Quarterly P&C Market Stability Statements:
  • Requires insurers to submit quarterly reports—similar to data calls—on non-renewals, market withdrawals, written premium, and other key indicators affecting consumers and the state’s insurance market.
• Motor Vehicle Lookback Period Fix:
  • Closes a loophole allowing entities outside the Department of Public Safety to use motor vehicle violation data beyond the legal 3-year lookback period.

Mediation & Dispute Resolution Enhancements

• Mandatory Eagle Mediation Availability:
  • Applies to residential, commercial-residential, and auto claims.
  • May be requested by policyholders, first-party claimants, third-party claimants, or assignees.
  • Available only after consumers complete the OID complaint process.
  • Not allowed once civil litigation begins.
  • Establishes penalties for insurers who fail to comply with mediation requirements.
  • Mediation limits costly legal expenses passed on to consumers.

Legal Reform

• Attorney Fees:
  • Legislation would codify that attorney fees may not be awarded to either party.
  • This will help disincentivize frivolous lawsuits, reduce litigation costs, and further stabilize the market. As the lawsuits increase the costs of claims, insurers then raise rates to transfer those costs to Oklahoma policyholders.

Moving Oklahoma Forward

Commissioner Mulready stated that the purpose of the 2026 legislative package is not only to give homeowners greater peace of mind but also to support a stable and competitive insurance market.

“These reforms make Oklahoma a leader in consumer-focused insurance regulation,” the Commissioner said. “We have seen positive results of similar legislation around the country and by strengthening timelines, improving communication, expanding mediation options, and requiring fair treatment, we are helping Oklahomans recover faster and maintain access to coverage they can depend on.”

Next Steps

The Oklahoma Insurance Department will work closely with legislators during the 2026 legislative session, which begins in February, to advance these proposals. Additional consumer education will be conducted to inform Oklahomans about their evolving rights and protections.

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