Oklahoma § 36-1230 - Solicitation or acceptance of an assignment of post-loss

§ 36-1230. Solicitation or acceptance of an assignment of post-loss

insurance benefits prohibited — Violations.

A. For purposes of this act:

1. "Assignment agreement" means any instrument by which postloss benefits under an auto or residential or commercial property

insurance, including, but not limited to, any right of action

against the insurer or any proceeds acquired from the insurer, are

assigned, transferred, or acquired in any other manner, in whole or

in part, to or from a person providing services, including, but not

limited to, communicating with an insurer on an insured's behalf or

inspecting, estimating, protecting, repairing, restoring, or

replacing the property or mitigating against further damage to the

property; and

2. "Person" means:

Oklahoma Statutes - Title 36. Insurance

a.

b.

c.

a natural person,

a service provider,

any type or form of corporation, company, partnership,

proprietorship, association, or other legal entity,

and

d.

a government, governmental subdivision or agency, or

other governmental body.

B. 1. A person shall not solicit or accept an assignment, in

whole or in part, of any post-loss insurance benefit for property

damage under an auto collision or comprehensive policy, residential

property insurance policy, or commercial property insurance policy.

An assignment agreement is against public policy and is null and

void, and any contract entered in violation of this section shall be

void and unenforceable.

2. The provisions of paragraph 1 of this subsection do not

apply to any of the following:

a.

an assignment, transfer, pledge, or conveyance granted

to a federally insured financial institution,

mortgagee, or a subsequent purchaser of the property,

or

b.

liability coverage under an auto, residential, or

commercial property insurance policy.

C. Violation of subsection B of this section is considered an

unfair or deceptive trade practice. Any person who is found to have

violated the provisions of subsection B of this section shall be

subject to the procedures and penalties as other unfair or deceptive

trade practices outlined in Title 36 of the Oklahoma Statutes.

D. Nothing in this section shall be interpreted to prohibit an

attorney from collecting an attorney fee for an action related to a

property insurance claim.

E. Nothing in this section shall be construed to prohibit an

insured from authorizing or directing payment to, or paying, a

person for services, materials, or any other thing which may be, or

is, covered under an insurance policy. Insurers shall issue payment

directly to a person for services, materials, and other items that

are covered under an insurance policy, when the insured agrees that

any person providing such services should be paid directly, subject

to applicable liens.

Added by Laws 2025, c. 444, § 1, eff. Nov. 1, 2025.