Oklahoma right-to-appraisal bill passes House
The Oklahoma House recently passed a right-to-appraisal bill.
The bill, HB 4488, passed 64-30 on March 25. It had its first reading in the Senate the next day and was refereed to the Business and Insurance Committee Thursday.
“[House Bill 4888] updates Oklahoma insurance law governing first party motor vehicle damage and claims by establishing a standardized appraisal process to resolve disputes between insurers and their policyholders over the actual cash value and the amount of loss for a damaged vehicle,” said Rep. Tammy Townley on the House floor prior to it passing.
There was no other discussion about the bill on the House floor.
The bill would require every insurance policy to have an appraisal clause that would be included in newly issued or renewed policies starting Jan. 1, 2027, if passed.
If any party fails to agree on the loss amount, either party can demand an appraisal via writing, the bill says.
Each party must select an appraiser and notify the other party within 20 days after the demand is received, the bill says.
If the appraisers are unable to agree, an umpire will be selected in 15 days. It adds that a judge of a court of record in the county can be asked to select the umpire.
Each party will pay the appraiser it has chosen and will pay an equal share of the expenses of the umpire.
Neither party can demand an appraisal until 10 days after the insurer received notification of the claim.
The bill also says that an insurance company may elect to offer a replacement motor vehicle or provide a cash settlement for a total loss.
A cash settlement can be determined via three options.
The first is by comparing the settlement to a comparable motor vehicle in the local market area when a comparable motor vehicle is currently or recently available in the prior 90 days. The second option is receiving two or more quotations from a qualified dealer located within the local market area. The third option is using quotes from the latest edition of the National Automobile Dealers Association or monthly edition of any nationally recognized published guidebook.
Any deviation from the process should be supported with documentation giving particulars of the conditions of the motor vehicle.
“Any deductions from such cost, including, but not limited to, deduction for salvage, shall be measurable, discernible, itemized and specified as to dollar amount and shall be appropriate in amount,” the bill says. “The basis for such settlement shall be fully explained to a first-party claimant.”
The bill also says that if a claimant selects a motor vehicle repair or motor vehicle glass repair or replacement facility, the insurer shall provide payment to the facility or claimant based on a competitive price as established by that insurer through market survey or by the insured through competitive bids at the insured’s option to determine a fair and reasonable market price for similar services.
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Rep. Tammy Townley speaks on the Oklahoma House Floor March 25, 2006/screenshot