Oklahoma Governor Kevin Stitt has signed House Bill 1084 into law, prohibiting most forms of assignment of benefits (AOB) agreements under auto, residential, and commercial property insurance policies.
The new law renders such contracts void and unenforceable, with limited exceptions.
AOB agreements allow service providers—such as contractors or roofers—to take over a policyholder’s claim and seek direct payment from the insurer.
The bill’s author, Republican Representative Mark Tedford, stated the measure aims to curb inflated repair costs, reduce excessive litigation, and prevent confusion for policyholders.
He added that the law will help lower insurance costs and improve the integrity of claims handling in Oklahoma.
When third parties take control of a claim, it can result in inflated repair costs, excessive litigation and confusion for the policyholder.
Republican Representative Mark Tedford
“House Bill 1084 helps restore accountability and ensures Oklahomans remain in control of their own claims. It’s a practical step toward a fairer, more transparent insurance process,” Mark Tedford said.
The legislation makes exceptions for legitimate financial relationships, including federally insured financial institutions, mortgage holders, and future property owners (see Personal Auto Insurance Rates Overview).
It also allows policyholders to authorize direct payment to service providers and does not apply to liability coverage under property or auto policies. Legal services remain protected under the new law (see US Auto Insurance Rates by States in 2025 (June)).
Violations of the statute will be treated as unfair or deceptive trade practices under Oklahoma insurance law and will carry the applicable penalties. The law takes effect on Nov. 1.
