Oklahoma Insurance Commissioner Glen Mulready has issued a detailed public statement in response to rising interest surrounding Attorney General Gentner Drummond’s decision to intervene in a private lawsuit against State Farm. His remarks, released from Oklahoma City, aim to provide clarity on the regulator’s responsibilities as scrutiny intensifies over insurance claim practices in the state.
Mulready emphasised that the Oklahoma Insurance Department (OID) is not directly involved in the legal action. However, he acknowledged that the department has received repeated enquiries from consumers, legislators, and industry stakeholders.
“There have been several inquiries to OID regarding Attorney General Drummond’s intervening in a lawsuit with State Farm. Although our agency is not involved in this private lawsuit, we regularly conduct investigations into the market conduct of the companies we regulate,” he said.
Two-Year Investigation Into Roof Claim Practices
The Commissioner confirmed that, separately from the lawsuit, the OID has been conducting a broad market conduct investigation for the past two years focused specifically on how insurers manage roof-related claims. These claims represent a significant portion of insurance disputes in Oklahoma due to the state’s exposure to severe weather.
“We have been engaged in an ongoing investigation for the past two years now regarding the handling of roof claims. There are strict confidentiality laws surrounding these investigations,” he stated.
Mulready noted that national regulatory standards dictate a methodical and time-intensive approach to evaluating claim practices, particularly when complex structural assessments are involved. “Market conduct investigations can take considerable time to complete because we follow rigorous national guidelines to ensure we have fully and thoroughly investigated an insurer’s claim practices.”
Unprecedented Use of Third-Party Engineers
In what he described as an innovative regulatory step, Mulready highlighted that Oklahoma appears to be the first state insurance department to deploy independent engineers to review adjusters’ inspections.
“To our knowledge, we are the first Insurance Department in the country to take the unprecedented step of sending out third-party engineers to inspect the insurance adjusters’ work,” he said.
He emphasised the significance of these measures for consumer protection, particularly given the financial weight roofing claims carry for homeowners.
“I recognize the importance of these roofing claims and the impact they have on consumers. I firmly believe it is too important to NOT take these extra steps to ensure Oklahomans are protected.”
Investigation Results Expected in 2026
Mulready stated that the department expects to conclude its review in the first quarter of 2026. After completion, all findings and any resulting regulatory actions will be made publicly accessible.
“We expect to have this investigation concluded in the first quarter of 2026. We are fully committed to transparency. Any action taken will of course become public information,” the Commissioner said.
Wider Implications for the US Insurance Market
While the Commissioner refrained from discussing the Attorney General’s legal strategy or the lawsuit’s merits, the combined scrutiny from both offices signals increased regulatory pressure on major insurers, particularly those operating in high-risk weather regions. For UK business audiences monitoring developments across the Atlantic, the situation highlights the shifting regulatory landscape and potential operational challenges facing US insurance providers.
