Insurance; unlawfully operating a motor vehicle; first-party liability claims; third-parties; passengers; nondrivers; Department of Public Safety; license status data; effective date.

HB 3788 prevents insurance companies from paying first-party liability claims to drivers who were unlawfully operating a motor vehicle at the time of an accident (defined as driving without a valid license, with a suspended/revoked license, or using fraudulent ID). It specifically ensures that passengers, third parties, and other nondrivers can still collect compensation for injuries or property damage. Insurers may verify a claimant’s license status using official Oklahoma Department of Public Safety data. The law takes effect November 1, 2026.