Oklahoma Supreme Court hears arguments on attorney general role in insurance claims case

Oklahoma City, Oklah. — A dispute over a denied roof claim for a Tulsa family has landed before the Oklahoma Supreme Court in a case that could reshape how insurance companies handle claims across the state and determine whether the state attorney general can intervene.

State Farm argues the case is unconstitutional.

Oklahoma Attorney General Gentner Drummond says it is not and has joined the case, saying the state needs enforcement power when policyholders cannot pursue claims on their own. “If the insurance commissioner cannot enforce these laws and the attorney general cannot enforce these laws then we have created a chasm in the state of Oklahoma through which foreign corporations can come in and injure Oklahomans with reckless disregard,” Drummond said.

State Farm is accused of improperly denying hail and wind damage claims, affecting thousands of Oklahomans.

Billy Hursh, identified as a Tulsa police officer who sued State Farm after his roof claim was denied, said he believes the company’s conduct went far beyond his family’s case.

Asked about State Farm’s “like a good neighbor” branding, Hursh responded, “Show me. Prove it.”

An attorney representing Drummond is using RICO, a law often used in organized crime cases, to argue the company carried out a coordinated pattern of wrongdoing.

Drummond said his involvement is aimed at representing policyholders who cannot afford legal help. “This is the attorney general representing all of the State Farm policy holders who cannot afford or don’t have access to an attorney. That’s why I’m in,” Drummond said.

During arguments, justices weighed whether the case is a consumer protection issue or a contract dispute that belongs in district court.

Hursh alleges it’s widespread misconduct. “This was a pervasive scheme that wasn’t just done to us it was done to thousands of people across Oklahoma to the tune of millions or maybe even billions of dollars,” Hursh said.

State Farm told FOX 25 it has paid more than $1 billion in Oklahoma wind and hail claims over the past two years and strongly denies any wrongdoing.

Drummond said his investigation could expand beyond State Farm. “There is smoke and I’m following the smoke to find the fire,” he said.

The court’s decision could expand or limit the attorney general’s power to intervene in private lawsuits and could affect how insurers handle claims statewide.