The recent string of tremors in Oklahoma has even state lawmakers preparing for the worst, such as State Sen. Clark Jolley and his State Bill 1947.
Jolley’s State Bill would give the state insurance commissioner the authority to provide earthquake insurance should private insurers abandon the state.
The bill shares similarities with the California Earthquake Authority. The nonprofit, privately-funded, and publicly-managed company was formed following the 1994 Northridge earthquake, when numerous insurance companies stopped offering earthquake insurance due to the extensive damage caused by the disaster.
Although the bill has some promise, insurance commissioner John Doak believes that it is not ultimately needed.
“If Oklahoma was, at a time of need, to be able to create an earthquake authority if by chance the competitive market was to collapse," said insurance commissioner John Doak. "We’re nowhere near that. We have more than 100 markets in the state of Oklahoma.”
Doak also said that details of how the “Oklahoma authority” would be funded have not yet been finalized.
“If you just pass the bill right now, and you don’t need it, it sits on the shelf as a tool,” Doak commented. “But then, if we ever need to pull it off, then there would be those discussion on how to put it together and what that means.”
