New Law Proposed To Help Consumers From Having Policies Canceled

Friday, July 19th 2013, 7:55 pm
By: News 9

State law prohibits home insurance providers from dropping customers who file one claim, but there is nothing stopping the companies from dropping a client that files more than one claim.

Now people who suffered damage to their homes in the recent storms say they are being dropped and having a difficult time getting new insurance policies.

News 9 posted about the issue on Facebook and got more than 100 responses. Dozens said they had gone through a similar situation this year and in years past.

According to the Oklahoma Insurance Department, efforts are underway to further protect insurance consumers. The goal is to increase the number of claims a person needs to file before the insurance company drops that person from coverage.

In addition, Insurance Commissioner John Doak has strongly suggested that insurance companies give customers more time to find new insurance if they are going to be dropped.

The commissioner has asked that companies do not drop customers who have open claims. However, there is no law requiring that insurance companies abide by the commissioner's suggestions.

Consumers who News 9 spoke with said they were upset that companies had dropped them because of the number of claims they filed. Many said that defeats the purpose of having insurance, to cover the costs of unexpected events that are cause by uncontrollable factors.

The Oklahoma Insurance Department has a free program to help "high-risk" consumers get coverage after being dropped. To qualify, a person must have been dropped for filing too many claims and have been denied by two other companies for coverage.

To get in touch with the Market Assistance Program call: (405) 842-9883.