Oklahoma Tornado Claims for May Over 70,000

The Oklahoma Insurance Department (OID) says insurance claims from a series of tornadoes in May jumped to 70,782 with insurance payments reaching close to $562 million.

Claims from the two worst outbreaks numbered 40,264 for May 19th and 20th and 29,355 for May 30th and 31st. Homeowners claims has the largest insurance pay-out totaling $437 million for the four day period with 33,808 claims. Auto is close behind in number of claims at 31,693 claims and insurance pay-out of more than $80 million.

Oklahoma Insurance Commissioner John Doak says the numbers are proof of the dramatic impact of the tornadoes on his state and he is happy to see that so many victims are insured.

Doak says the department launched a series of forums to allow the state’s tornado victims to receive assistance with insurance-related issues such as claims filing and fraud.

The commissioner also advised public adjusters to refrain from charging customers more than 10 percent of their claims settlement after negotiating compensation for property claims.

“Oklahoma storm victims need alternatives and assistance, but they also need to keep as much of their insurance claim as possible,” he says.

While the OID is monitoring all claims handlers' fees, it asks that all adjusters carry a state proof of license up to 90 days after the catastrophe, and that they ask for no payment in advance of a settlement.

Meanwhile, the OID issued a bulletin to all licensed P&C insurers and producers to keep their customer’s on their current policies for 60 days after the completion of repairs.

“As a result of the devastating tornado outbreak, thousands of Oklahomans have filed property claims,” says Doak. “Because of that, insurers are now reassessing risks and issuing nonrenewal notices. Due to the backlog of work that contractors and repair shops are currently experiencing, many repairs won’t be completed before the policy expires. That results in open and pending claims that prevent the policyholder from obtaining replacement coverage.”

The Insurance Consumer Bill of Rights, passed by the state legislature in early 2013, says that insurers may not cancel, refuse to renew or increase the premium of a homeowner’s policy which has been in effect more than 45 days solely because the insured has filed a first claim against the policy.

About the Author
Anya Khalamayzer, PropertyCasualty360.com

Anya Khalamayzer, PropertyCasualty360.com

Anya Khalamayzer is Assistant Editor of Risk for PropertyCasualty360-National Underwriter. Khalamayzer graduated from CUNY Baruch College after intensive internships with Time Out New York Kids and Crain’s Investment News. Keenly interested in environmental science, music and the arts, her articles have been published in Gotham Gazette, Wonkster blog and Ear to Mind magazine. She can be reached at akhalamayzer@summitpronets.com


Resource Center

View All »

Complimentary Case Study: Helping achieve your financial goals By:...

Find out how a Special Investigation Union used TLOxp to save the company money and...

Do Your Clients Hold The Right CDL License?

Learn about the various classes of CDL Licenses and the industries that are impacted by...

Integrated Content & Communications: A Key Business Issue For Insurers

Insurers are renewing their focus on top line growth, and many are learning that growth...

High Risk Insurance Coverage in the E&S Market

Experts discuss market conditions, trends and projected growth in a rapidly changing niche.

Top E-Signature Security Requirements

This white paper covers the most important security features to look for when evaluating e-signatures...

EPLI Programs Crafted Just For Your Clients

Bring us your restaurant clients, associations and other groups and we’ll help you win more...

Is It Time To Step Up And Own An Agency?

Download this eBook for insight on how to determine if owning an agency is right...

Claims - The Good The Bad And The Ugly

Fraudulent claims cost the industry and the public thousands of dollars in losses. This article...

Leveraging BI for Improved Claims Performance and Results

If claims organizations do not avail themselves of the latest business intelligence (BI) tools, they...

Top 10 Legal Requirements for E-Signatures in Insurance

Want to make sure you’ve covered all your bases when adopting e-signatures? Learn how to...

Claims Connection eNewsletter

Breaking news on disasters, fraud, legal trends, technology, and CE initiatives for the P&C claim professional – FREE. Sign Up Now!

Claims-Handling Guidelines

Claims Magazine is providing the following free guidelines and regulations in order to help adjusting professionals stay abreast of each state’s unique property and casualty claim-handling requirements.

View our State Guidelines »

Advertisement. Closing in 15 seconds.