State Insurance Commissioner in Oil State Asks for Quake Coverage Clarity

Oklahoma Insurance Commissioner is asking insurers to clarify this issue for energy producers:

• whether their policies cover earthquake damage caused by things like mining or oil and gas exploration.

2 Regulatory Requirements are attached for Insurers:

• Insurers must act within 45 days
• And they must provide notices to policyholders and insurance agents.

How does Oklahoma differ from Texas in this regard?

• “The Oklahoma Geological Survey has determined that the majority of the quakes in Oklahoma are more than likely the result of wastewater injection into disposal wells.”
• Texas Railroad Commission reached a different conclusion.

Insurance policies are taking 3 forms on coverage of quake damage:

• amended policy forms to cover damage from wastewater injection
• others have waived the man-made exclusion
• The 3rd group, specifically excludes quakes induced by wastewater injection

Fuel Fix | Insurers asked to send clarifying notice of quake coverage in Oklahoma