Oklahoma Insurance Bill Advances After Controversial Provisions Removed

House Bill 2933, an insurance reform measure backed by Oklahoma Insurance Commissioner Glen Mulready, is advancing through the state legislature after lawmakers removed a controversial provision from the proposal.

The legislation, sponsored by Representative Mark Tedford, was unanimously advanced by the House Civil Judiciary Committee. The bill aims to stabilize the Oklahoma insurance market by reducing the volume of lawsuits filed against insurers, which Mulready asserts will lead to lower premiums for policyholders.

Provisions of House Bill 2933

The bill introduces several statutory amendments and new requirements regarding claims handling and consumer protections. Key components of the legislation include the establishment of a Homeowner Bill of Rights, which would require insurance companies to provide standardized information to policyholders at the start of the claims process.

the bill proposes administrative changes to timelines, including shortening the deadlines for the Insurance Department to respond to consumer complaints and adjusting the timeframes required for insurers to acknowledge and make decisions on claims.

The progress of the bill followed the removal of a provision that critics argued would have restricted the ability of policyholders to challenge claims that were underpaid or denied.

Industry Involvement and Market Context

The bill was authored by Representative Mark Tedford and Senator Aaron Reinhardt, both of whom are employed within the insurance industry. Commissioner Mulready stated that involving industry experts in the drafting of such legislation is typical and does not constitute a conflict of interest.

The push for reform occurs amid reported struggles by some policyholders to secure fair payouts. Kenny Cox, a homeowner in Broken Arrow, reported an inability to reach a satisfactory settlement with State Farm following a fire in his home, stating, All we have gotten is lies, denies and delays.

In response to such disputes, Oklahoma Attorney General Gentner Drummond launched an investigation in December 2025 to determine if insurance companies treat claims differently based on whether the customer has legal representation.

State Farm issued a statement asserting its commitment to paying owed benefits promptly, courteously and efficiently and maintaining that customers receive all benefits entitled under their policies.

Failed Profit Oversight Legislation

While House Bill 2933 has advanced, other insurance reform efforts focused on profit oversight have failed in committee. Senate Minority Leader Julia Kirt introduced Senate Bill 1444 and Senate Bill 1438, both of which sought to expand the authority of regulators to mandate refunds to policyholders if underwriting profits or rates were deemed excessive.

Senate Bill 1444 failed on a 4–5 vote, and Senate Bill 1438 failed 2–7. Kirt argued that existing laws limit the insurance commissioner’s ability to reject excessive rates unless the market is formally declared uncompetitive, a term she noted lacks a statutory definition.

Kirt’s proposals would have required insurers to seek approval for rate increases before implementation, similar to the processes used for utility rate changes. She maintained that homeowners assess coverage affordability over decades, whereas insurers evaluate profitability on annual financial cycles.