2007 Oregon Code - Chapter 746 :: Chapter 746 - Trade Practices
Chapter 746 —
Trade Practices
2007 EDITION
TRADE PRACTICES
INSURANCE
GENERAL PROVISIONS
746.005Â Â Â Â Trade
practices exempted from prohibitions
746.015Â Â Â Â Discrimination;
noncompliance; hearing
746.018Â Â Â Â Discrimination
in issuance of burglary, theft, robbery or casualty policies prohibited
746.025Â Â Â Â Securities
or other contracts as inducement to insurance
746.035Â Â Â Â Inducements
not specified in policy
746.045Â Â Â Â Rebates
746.055Â Â Â Â Title
insurance commissions, rebates and discounts
746.065Â Â Â Â Personal
or controlled insurance
746.075Â Â Â Â Misrepresentation
generally
746.085Â Â Â Â Regulating
replacement of life insurance; compensation of insurance producers; rules
746.100Â Â Â Â Misrepresentation
in insurance applications or transactions
746.110Â Â Â Â False,
deceptive or misleading statements
746.115Â Â Â Â Advertisements
in languages other than English
746.120Â Â Â Â Illegal
dealing in premiums
746.125Â Â Â Â Limitation
on coverage of eye care services
746.130Â Â Â Â Insurance
connected to sale or rental of property; prohibition; exceptions; charges
746.135Â Â Â Â Genetic
tests and information; rules
746.140Â Â Â Â
746.145Â Â Â Â WorkersÂ’
compensation insurance; combination of group of employers; purpose; conditions
746.147Â Â Â Â WorkersÂ’
compensation insurance; quoting premiums
746.150Â Â Â Â Other
insurance; combination of experience of group of persons or risks; purpose;
rules; conditions
746.155Â Â Â Â Applicability
of ORS 746.145 and 746.150
746.160Â Â Â Â Practices
injurious to free competition
746.195Â Â Â Â Insurance
on property securing loan or credit; certain practices by depository
institutions prohibited
746.201Â Â Â Â Depository
institution to obtain required property insurance when borrower does not;
notice required
746.213Â Â Â Â Definitions
for ORS 746.213 to 746.219
746.215Â Â Â Â Regulation
of depository institutions with regard to insurance sales or solicitations
746.217Â Â Â Â Disclosures
to customers
746.219Â Â Â Â Investigatory
powers
746.220Â Â Â Â DebtorÂ’s
option in furnishing credit life or credit health insurance
746.222Â Â Â Â Prohibition
on referral of individual to Medical Insurance Pool
746.230Â Â Â Â Unfair
claim settlement practices
746.240Â Â Â Â Undefined
trade practices injurious to public prohibited
746.260Â Â Â Â Driving
record not to be considered in issuance of motor vehicle insurance
746.265Â Â Â Â Purposes
for which abstract of nonemployment driving record may be considered
746.270Â Â Â Â Use
of past investment or predicted future investment experience in sale of
variable life insurance policies
746.275Â Â Â Â Definitions
for ORS 746.275 to 746.300
746.280Â Â Â Â Designation
of particular motor vehicle repair shop by insurer prohibited; notice;
limitation of costs
746.285Â Â Â Â Notice
of prohibition in motor vehicle repair shops; size; location
746.287Â Â Â Â Insurer
requirement of installation of aftermarket crash part in vehicle
746.289Â Â Â Â Insurer
offer of crash part warranty
746.290Â Â Â Â Notice
of prohibition in policies and by adjusters
746.292Â Â Â Â Motor
vehicle repair shops; invoices; estimates; warranties; prohibited practices
746.295Â Â Â Â Proof
and amount of loss under motor vehicle liability policies; determination by
insurer
746.300Â Â Â Â Liability
of insurers and motor vehicle repair shops for damages; attorney fees
746.305Â Â Â Â Rules
746.308Â Â Â Â Violation
of provisions regarding totaled vehicles as violation of Insurance Code
UNAUTHORIZED INSURANCE
746.310Â Â Â Â Representing
or aiding unauthorized insurer prohibited; insurance producer liable to insured
746.320Â Â Â Â Service
of process equivalent to personal service on unauthorized foreign or alien
insurer
746.330Â Â Â Â Judgment
by default after service of process under ORS 746.320
746.340Â Â Â Â Conditions
to be met by defendant unauthorized insurer before filing motions or pleadings
746.350Â Â Â Â Attorney
fee allowable to prevailing party
746.360Â Â Â Â Exceptions
to application of unauthorized insurer service of process law
746.370Â Â Â Â Records
of insureds
PREMIUM FINANCING
746.405Â Â Â Â Definitions
for ORS 746.405 to 746.530
746.422Â Â Â Â Inquiries
from director to premium finance company
746.425Â Â Â Â Applicability
of ORS 746.405 to 746.530
746.465Â Â Â Â Records
required of premium finance companies; form; inspection
746.470Â Â Â Â Prohibition
against interfering with premium financing recommendation
746.475Â Â Â Â Premium
finance agreements; contents; form; delivery; notice to insurer
746.485Â Â Â Â Regulation
of service charge for premium financing; method of computation; prepayment
746.495Â Â Â Â Delinquency
charges regulated
746.505Â Â Â Â Cancellation
of policy by premium finance company; notice required; effective date of
cancellation
746.515Â Â Â Â Return
of unearned premiums on cancellation
746.525Â Â Â Â Agreement
effective as security interest
746.530Â Â Â Â Attorney
fees
USE AND DISCLOSURE OF INSURANCE INFORMATION
746.600Â Â Â Â Definitions
for ORS 746.600 to 746.690
746.605Â Â Â Â Purpose
746.606Â Â Â Â Information
privacy standards for health insurers
746.607Â Â Â Â Use
and disclosure of personal information
746.608Â Â Â Â Rules
746.609Â Â Â Â Exemptions
for health insurers
746.610Â Â Â Â Application
of ORS 746.600 to 746.690
746.611Â Â Â Â Personal
representative of deceased person
746.612Â Â Â Â No
right of action
746.615Â Â Â Â Pretext
interviews prohibited
746.620Â Â Â Â Notice
of insurance information practices; rules
746.625Â Â Â Â Marketing
and research surveys
746.630Â Â Â Â Authorization
for disclosure of certain information; forms; revocation
746.632Â Â Â Â Genetic
information used for treatment; authorization; disclosure
746.635Â Â Â Â Investigative
consumer reports
746.640Â Â Â Â Access
to recorded personal information
746.645Â Â Â Â Correction,
amendment or deletion of recorded personal information
746.650Â Â Â Â Reasons
for adverse underwriting decisions
746.655Â Â Â Â Information
concerning previous adverse underwriting decisions
746.660Â Â Â Â Basing
adverse underwriting decision on previous adverse decision
746.661Â Â Â Â Use
of credit history or insurance score
746.662Â Â Â Â Filing
of insurance scoring models
746.663Â Â Â Â Cancellation
or nonrenewal of personal insurance policies based on credit history or insurance
score
746.665Â Â Â Â Limitations
and conditions on disclosure of certain information
746.668Â Â Â Â Relationship
of ORS 746.620, 746.630 and 746.665 to federal Fair Credit Reporting Act
746.670Â Â Â Â Investigatory
powers
746.675Â Â Â Â Service
of process on out-of-state insurance-support organizations
746.680Â Â Â Â Remedies
746.685Â Â Â Â Liability
for disclosure of information
746.686Â Â Â Â Use
of prior claim or inquiry in determination to issue or renew homeowner
insurance policy; rules
746.687Â Â Â Â Cancellation
of homeowner insurance policy
746.688Â Â Â Â Use
of loss history reports; notice to consumer
746.690Â Â Â Â Obtaining
information under false pretenses prohibited
PENALTIES
746.991Â Â Â Â Penalties
GENERAL PROVISIONS
     746.005
Trade practices exempted from prohibitions. Nothing in this chapter shall apply to wet marine and transportation
insurance or prohibit any of the following practices:
     (1) In the case of life insurance
policies, paying bonuses to policyholders or otherwise abating their premiums
in whole or in part out of surplus accumulated from nonparticipating insurance,
provided that any such bonuses or abatement of premiums shall be fair and
equitable to policyholders and for the best interests of the insurer and its
policyholders;
     (2) In the case of industrial life
insurance policies, making allowance to policyholders who have continuously for
a specified period made premium payments directly to an office of the insurer,
in an amount which fairly represents the saving in collection expense;
     (3) Readjustment of the rate of premium
for a group life or health insurance policy based on the loss or expense
experience thereunder, at the end of the first or any subsequent policy year,
which may be made retroactive only for such policy year;
     (4) Extension of credit for payment of
premiums without any service charge or interest by the insurer or insurance
producer for a period of not more than 90 days after the end of the month in
which the policy becomes effective;
     (5) Practices authorized pursuant to ORS
733.220 and 733.230;
     (6) The issuing of life or health
insurance policies on a salary savings, bank draft, preauthorized check or
payroll deduction plan or similar plan at a reduced rate reasonably related to
the savings made by use of such plan; or
     (7) The issuing of life or health
insurance policies at rates less than the usual premium rates for such
policies, or using modifications of premium rates based on amount of insurance,
if such issuance or modification does not result in reduction in premium rates
in excess of savings in administration and issuance expenses reasonably
attributable to such policies. [Formerly 736.825; 1983 c.740 §254; 2003 c.364 §133]
     746.010 [Amended by 1961 c.256 §1; 1967 c.359 §507;
renumbered 743.702]
     746.015
Discrimination; noncompliance; hearing. (1) No person shall make or permit any unfair discrimination between
individuals of the same class and equal expectation of life, or between risks
of essentially the same degree of hazard, in the availability of insurance, in
the application of rates for insurance, in the dividends or other benefits
payable under insurance policies, or in any other terms or conditions of
insurance policies.
     (2) Discrimination by an insurer in the
application of its underwriting standards or rates based solely on an
individualÂ’s physical disability is prohibited, unless such action is based on
sound actuarial principles or is related to actual or reasonably anticipated
experience. For purposes of this subsection, “physical disability” shall
include, but not be limited to, blindness, deafness, hearing or speaking
impairment or loss, or partial loss, of function of one or more of the upper or
lower extremities.
     (3) Discrimination by an insurer in the
application of its underwriting standards or rates based solely upon an insuredÂ’s
or applicantÂ’s attaining or exceeding 65 years of age is prohibited, unless
such discrimination is clearly based on sound actuarial principles or is
related to actual or reasonably anticipated experience.
     (4)(a) No insurer, on the basis of the
status of an insured or prospective insured as a victim of domestic violence,
shall do any of the following:
     (A) Deny, cancel or refuse to issue or
renew an insurance policy;
     (B) Demand or require a greater premium or
payment;
     (C) Designate domestic violence as a
preexisting condition for which coverage will be denied or reduced;
     (D) Exclude or limit coverage for losses
or deny a claim; or
     (E) Fix any lower rate for or discriminate
in the fees or commissions of an insurance producer for writing or renewing a
policy.
     (b) The fact that an insured or
prospective insured is or has been a victim of domestic violence shall not be
considered a permitted underwriting or rating criterion.
     (c) Nothing in this subsection prohibits
an insurer from taking an action described in paragraph (a) of this subsection
if the action is otherwise permissible by law and is taken in the same manner
and to the same extent with respect to all insureds and prospective insureds
without regard to whether the insured or prospective insured is a victim of
domestic violence.
     (d) An insurer that complies in good faith
with the requirements of this subsection shall not be subject to civil
liability due to such compliance.
     (e) For purposes of this subsection, “domestic
violence” means the occurrence of one or more of the following acts between
family or household members:
     (A) Attempting to cause or intentionally
or knowingly causing physical injury;
     (B) Intentionally or knowingly placing
another in fear of imminent serious physical injury; or
     (C) Committing sexual abuse in any degree
as defined in ORS 163.415, 163.425 and 163.427.
     (5) If the Director of the Department of
Consumer and Business Services has reason to believe that an insurer in the
application of its underwriting standards or rates is not complying with the
requirements of this section, the director shall, unless the director has
reason to believe the noncompliance is willful, give notice in writing to the
insurer stating in what manner such noncompliance is alleged to exist and
specifying a reasonable time, not less than 10 days after the date of mailing,
in which the noncompliance may be corrected.
     (6)(a) If the director has reason to
believe that noncompliance by an insurer with the requirements of this section
is willful, or if, within the period prescribed by the director in the notice
required by subsection (5) of this section, the insurer does not make the
changes necessary to correct the noncompliance specified by the director or
establish to the satisfaction of the director that such specified noncompliance
does not exist, the director may hold a hearing in connection therewith. Not
less than 10 days before the date of such hearing the director shall mail to
the insurer written notice of the hearing, specifying the matters to be considered.
     (b) If, after the hearing, the director
finds that the insurerÂ’s application of its underwriting standards or rates
violates the requirements of this section, the director may issue an order
specifying in what respects such violation exists and stating when, within a
reasonable period of time, further such application shall be prohibited. If the
director finds that the violation was willful, the director may suspend or
revoke the certificate of authority of the insurer.
     (7) Affiliated workers’ compensation
insurers having reinsurance agreements which result in one carrier ceding 80
percent or more of its workersÂ’ compensation premium to the other, while
utilizing different workersÂ’ compensation rate levels without objective
evidence to support such differences, shall be presumed to be engaging in
unfair discrimination. [1967 c.359 §568; 1977 c.331 §1; 1979 c.140 §1; 1987
c.676 §2; 1987 c.884 §53; 1997 c.564 §1; 1999 c.59 §229; 2003 c.364 §134; 2007
c.70 §319]
     746.018
Discrimination in issuance of burglary, theft, robbery or casualty policies
prohibited. (1) In cities of
300,000 or more, and except as provided in subsection (3) of this section, no
insurer shall make or permit any unfair discrimination between risks of
essentially the same degree of hazard in the issuance of burglary and theft or
robbery insurance policies or casualty insurance policies which insure against
liability to persons arising out of the use or control of real or personal
property other than motor vehicles.
     (2) Property insured or persons insured
against liability arising out of use or control of real or personal property
other than motor vehicles, if comparable in other respects in exposures to the
peril insured against, shall not be deemed to be of different hazard solely
because of the geographic location of the property or the place of residence or
business of the person to be insured.
     (3) Notwithstanding subsection (1) of this
section an insurer may make or permit discrimination between risks of
essentially the same degree of hazard in the issuance of insurance policies
described in subsection (1) of this section if the insurer, at the time of the
discrimination, insures a percentage of the similar risks at least equal to the
ratio that its premiums for the respective line of business as reported in the
annual statement required by ORS 731.574 for the second preceding calendar year
bears to the total premium for the same line of business as reported by all
insurers in the annual statements required by ORS 731.574 for the second
preceding calendar year, within a square one mile on each side centered upon
the location of the property, insurance in regard to which the insurer declines
to issue. [1971 c.522 §2; 1973 c.9 §1]
     746.020 [Amended by 1965 c.610 §13; repealed by 1967
c.359 §704]
     746.025
Securities or other contracts as inducement to insurance. No person shall sell, agree or offer to
sell, or give or offer to give, directly or indirectly in any manner
whatsoever, shares of stock, securities, bonds, special or advisory board
contracts or agreements of any form or nature promising returns and profits as
an inducement to insurance. No insurer engaging in or permitting its
representatives to engage in such practices in this or any other state may be
authorized to do business in this state. [Formerly 739.535]
     746.030 [Amended by 1961 c.256 §2; 1967 c.359 §508;
renumbered 743.705]
     746.035
Inducements not specified in policy. Except as otherwise expressly provided by the Insurance Code, no
person shall permit, offer to make or make any contract of insurance, or
agreement as to such contract, unless all agreements or understandings by way
of inducement are plainly expressed in the policy issued thereon. [1967 c.359 §570]
     746.040 [Amended by 1961 c.256 §3; repealed by 1967
c.359 §704]
     746.045
Rebates. No person shall
personally or otherwise offer, promise, allow, give, set off, pay or receive,
directly or indirectly, any rebate of or rebate of part of the premium payable
on an insurance policy or the insurance producerÂ’s commission thereon, or
earnings, profit, dividends or other benefit founded, arising, accruing or to
accrue on or from the policy, or any other valuable consideration or inducement
to or for insurance on any domestic risk, which is not specified in the policy.
[1967 c.359 §571; 2003 c.364 §135]
     746.050 [Amended by 1961 c.256 §4; repealed by 1967
c.359 §704]
     746.055
Title insurance commissions, rebates and discounts. With respect to title insurance, no
commissions, rebates or discounts shall be paid, allowed or permitted to any
person having an interest in or lien upon real property which is the subject of
the title insurance involved, or to any person acting for or on behalf of a
person with such an interest or lien. [Formerly 748.086]
     746.060 [Repealed by 1961 c.256 §5]
     746.065
Personal or controlled insurance. (1) As used in this section, “personal or controlled insurance” means
insurance covering an insurance producer or:
     (a) The spouse of the insurance producer,
the employer of the insurance producer or the employerÂ’s spouse, or any group
of employees under a group policy issued to the employer of the insurance
producer;
     (b) Any person related to the insurance
producer, to the spouse of the insurance producer, to the employer of the
insurance producer or to the employerÂ’s spouse within the second degree by
blood or marriage;
     (c) If the employer of the insurance
producer is a corporation, any person directly or indirectly owning or
controlling a majority of the voting stock or controlling interest in such
corporation;
     (d) If the employer of the insurance
producer is a partnership or association, any person owning any interest in
such partnership or association;
     (e) If the insurance producer is a
corporation, any person directly or indirectly owning or controlling a majority
of the voting stock or controlling interest in the insurance producer, and any
corporation which is likewise directly or indirectly controlled by the person
who so directly or indirectly controls the insurance producer; or
     (f) If the insurance producer is a
corporation, any corporation making consolidated returns for
     (2) If premiums on personal or controlled
insurance transacted by an insurance producer payable in one calendar year
exceed the premiums or with respect to life and health insurance twice the
premiums, on other insurance transacted by the insurance producer payable in
the same year, the receipt of commissions upon the excess is an unlawful
rebate.
     (3) This section shall not apply to an
individual licensee who:
     (a) Is licensed during all of such
calendar year individually as an insurance producer;
     (b) During such calendar year conducts an
individual insurance producer business, not being designated to exercise the
powers conferred by an insurance producerÂ’s license issued to any firm or
corporation nor owning any interest in any firm or corporation transacting an
insurance producer business;
     (c) Has been continuously licensed in some
manner as an insurance producer, and has been active as such, for at least 25
years; and
     (d) Is at least 65 years of age at the
beginning of such calendar year.
     (4) This section does not apply to the
writing, issuing or soliciting by a seller of personal property of insurance
covering the personal property sold by the seller on an installment contract
whereunder the title to the property is reserved by the seller.
     (5) This section shall not apply to an
insurance producer, whether an individual, firm or corporation, if:
     (a) The insurance producer is controlled
or owned by a nonprofit professional association and offers professional
liability and related business and personal umbrella or excess liability
insurance exclusively to members of the association; and
     (b) The primary function of the
association is other than marketing insurance. [1967 c.359 §573; 1987 c.774 §147;
1989 c.701 §73; 2003 c.364 §136]
     746.070 [Repealed by 1961 c.256 §5]
     746.075
Misrepresentation generally.
(1) A person may not engage, directly or indirectly, in any action described in
subsection (2) of this section in connection with:
     (a) The offer or sale of any insurance; or
     (b) Any inducement or attempted inducement
of any insured or person with ownership rights under an issued life insurance
policy to lapse, forfeit, surrender, assign, effect a loan against, retain,
exchange or convert the policy.
     (2) Subsection (1) of this section applies
to the following actions:
     (a) Making, issuing, circulating or causing
to be made, issued or circulated, any estimate, illustration, circular or
statement misrepresenting the terms of any policy issued or to be issued or the
benefits or advantages therein or the dividends or share of surplus to be
received thereon;
     (b) Making any false or misleading
representation as to the dividends or share of surplus previously paid on
similar policies;
     (c) Making any false or misleading
representation as to the financial condition of any insurer, or as to the legal
reserve system upon which any life insurer operates;
     (d) Using any name or title of any policy
or class of policies misrepresenting the true nature thereof;
     (e) Employing any device, scheme or
artifice to defraud;
     (f) Obtaining money or property by means
of any untrue statement of a material fact or any omission to state a material
fact necessary in order to make the statement, in light of the circumstances
under which it was made, not misleading;
     (g) Engaging in any other transaction,
practice or course of business that operates as a fraud or deceit upon the
purchaser, insured or person with policy ownership rights; or
     (h) Materially misrepresenting the
provider network of an insurer offering managed health insurance or preferred
provider organization insurance as defined in ORS 743.801, including its
composition and the availability of its providers to enrollees in the plan. [1967
c.359 §574; 2001 c.266 §7]
     746.080 [Amended by 1967 c.359 §509; renumbered
743.708]
     746.085
Regulating replacement of life insurance; compensation of insurance producers;
rules. In addition to all
other powers of the Director of the Department of Consumer and Business
Services with respect thereto, the director may issue rules:
     (1) Requiring persons who replace, or
offer or propose to replace, existing life insurance, to leave with the
policyholder written, signed and dated statements which fully and correctly
compare the terms, conditions and benefits of an existing policy with the
proposed policy; and
     (2) Limiting the commission or compensation
payable to an insurance producer on account of a life insurance policy that
provides a nonforfeiture value sold to replace an existing life insurance
policy that provides a nonforfeiture value to the commission or compensation
the insurance producer would have received if both the replaced and the
replacement insurance policies had been carried by the insurer which issues the
replacement policy. [1967 c.359 §575; 1971 c.231 §35; 2003 c.364 §137]
     746.090 [Repealed by 1967 c.359 §704]
     746.100
Misrepresentation in insurance applications or transactions. No person shall make a false or fraudulent
statement or representation on or relative to an application for insurance, or
for the purpose of obtaining a fee, commission, money or benefit from an insurer
or insurance producer. [Formerly 736.460; 2003 c.364 §138]
     746.110
False, deceptive or misleading statements. No person shall make, publish, disseminate, circulate, or place before
the public, or cause, directly or indirectly, to be made, published,
disseminated, circulated, or placed before the public, in a newspaper, magazine
or other publication, or in the form of a notice, circular, pamphlet, letter or
poster, or over any radio or television station, or in any other way, an
advertisement, announcement or statement containing any assertion,
representation or statement with respect to the business of insurance or with
respect to any person in the conduct of the insurance business, which is
untrue, deceptive or misleading. [Formerly 736.608]
     746.115
Advertisements in languages other than English. (1) An insurer or licensee who advertises in
a language other than English is not required to provide an insurance policy in
any language other than English so long as the advertisement states clearly
that the policy that is purchased is available only in English.
     (2) Advertisements regarding an insurance
policy in languages other than English may not be construed to modify the
policy in the event of a dispute over the provisions of the policy. [1997 c.809
§2; 2003 c.249 §1]
     Note: 746.115 was added to and made a part of ORS
chapter 746 by legislative action but was not added to any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation.
     746.120
Illegal dealing in premiums.
No person shall willfully collect any sum as premium or charge for insurance
which is not then provided, or is not in due course to be provided subject to
acceptance of the risk by the insurer, under an insurance policy issued by an
insurer in conformity to the Insurance Code. [1967 c.359 §579]
     746.125
Limitation on coverage of eye care services. (1) As used in this section:
     (a) “Health care service contractor” has
the meaning given that term in ORS 750.005.
     (b) “Independent practice association” has
the meaning given that term in ORS 743.801.
     (2) An insurer or a health care service
contractor that has a contract with an independent practice association to
provide eye care services may not limit coverage of eye care services only to
services provided by a physician if the eye care services are covered services
and are within the lawful scope of practice of a licensed optometrist. [2005
c.442 §2]
     Note: 746.125 was added to and made a part of ORS
chapter 746 by legislative action but was not added to any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation.
     746.130
Insurance connected to sale or rental of property; prohibition; exceptions;
charges. (1) No insurer
shall participate in any plan to offer or effect in this state, as an
inducement to the purchase or rental by the public of any property or services,
any insurance for which there is no separate charge to the insured. No person
shall arrange the sale of any such insurance.
     (2) Subsection (1) of this section does
not apply to:
     (a) Home protection insurance or other
insurance offered as a guarantee of the performance of property and designed to
protect the purchasers or users of such property;
     (b) Title insurance; or
     (c) Credit life or credit health insurance
as defined in ORS 743.371.
     (3) The charge for any insurance
incidental to the purchase or rental by the public of any property or services
shall be in accordance with rates on file with the Director of the Department
of Consumer and Business Services. [1967 c.359 §580; 1969 c.336 §16; 1981 c.247
§20; 1993 c.265 §9]
     746.135
Genetic tests and information; rules. (1) If a person asks an applicant for insurance to take a genetic test
in connection with an application for insurance, the use of the test shall be
revealed to the applicant and the person shall obtain the specific
authorization of the applicant using a form adopted by the Director of the
Department of Consumer and Business Services by rule.
     (2) A person may not use favorable genetic
information to induce the purchase of insurance.
     (3) A person may not use genetic
information to reject, deny, limit, cancel, refuse to renew, increase the rates
of, affect the terms and conditions of or otherwise affect any policy for
hospital or medical expenses.
     (4) A person may not use genetic
information about a blood relative to reject, deny, limit, cancel, refuse to
renew, increase the rates of, affect the terms and conditions of or otherwise
affect any policy of insurance.
     (5) For purposes of this section, “blood
relative,” “genetic information” and “genetic test” have the meanings given
those terms in ORS 192.531. [1995 c.680 §8; 2001 c.588 §17]
     746.140
     (2) The written proposal shall be dated
and signed by the insurance producer, or by the insurer if no insurance
producer is involved, and left with the prospect. The written proposal shall be
on a form which has been filed with the Director of the Department of Consumer
and Business Services. If a sale is made of both life insurance and securities,
a duplicate copy of the written proposal left with the buyer shall be retained
by the insurer for a period of not less than three years.
     (3) Each such proposal shall:
     (a) State the name of the insurer in which
the life insurance is to be written;
     (b) State that the prospect has the right
to purchase the life insurance only, the securities only or both the life
insurance and the securities;
     (c) Contain no misrepresentations or
false, deceptive or misleading words, figures or statements;
     (d) State all material facts without which
the proposal would have the capacity or tendency to mislead or deceive; and
     (e) Set forth all matters pertaining to
life insurance, including premium charges, separately from matters not
pertaining to life insurance.
     (4) This section shall not be construed to
affect the application of any other provision of law concerning or regulating
securities. [Formerly 739.562; 2003 c.364 §139]
     746.145
WorkersÂ’ compensation insurance; combination of group of employers; purpose; conditions. (1) Notwithstanding ORS 737.600, but subject
to all other rate filing requirements of ORS chapter 737, an insurer may
combine for dividend purposes the experience of a group of employers covered
for workersÂ’ compensation insurance by the insurer, subject to applicable rules
adopted by the Director of the Department of Consumer and Business Services,
if:
     (a) All the employers in the group are
members of an organization.
     (b) The employers in the group constitute
at least 50 percent of the employers in the organization, unless the number of
covered workers in the group exceeds 500, in which case the employers in the
group must constitute at least 25 percent of the employers in the organization.
     (c) The grouping of employers is likely to
substantially improve accident prevention, claims handling for the employers
and reduce expenses.
     (2) This section does not apply to an
organization of employers for which organization a workersÂ’ compensation policy
was lawfully issued before October 4, 1977. The guaranty contract required by
ORS 656.419 shall contain for each employer covered thereby the information
required by ORS 656.419 (2). When an employer becomes an insured member of the
organization the insurer shall, within 30 days after the date insured
membership commenced, file a notice thereof with the director. [1977 c.405 §3;
1983 c.706 §3; 1990 c.1 §5; 2003 c.170 §11]
     Note: The amendments to 746.145 by section 29,
chapter 241, Oregon Laws 2007, become operative July 1, 2009. See section 31,
chapter 241, Oregon Laws 2007. The text that is operative on and after July 1,
2009, is set forth for the userÂ’s convenience.
     746.145. (1) Notwithstanding ORS 737.600, but subject
to all other rate filing requirements of ORS chapter 737, an insurer may
combine for dividend purposes the experience of a group of employers covered
for workersÂ’ compensation insurance by the insurer, subject to applicable rules
adopted by the Director of the Department of Consumer and Business Services,
if:
     (a) All the employers in the group are
members of an organization.
     (b) The employers in the group constitute
at least 50 percent of the employers in the organization, unless the number of
covered workers in the group exceeds 500, in which case the employers in the
group must constitute at least 25 percent of the employers in the organization.
     (c) The grouping of employers is likely to
substantially improve accident prevention, claims handling for the employers
and reduce expenses.
     (2) This section does not apply to an
organization of employers for which organization a workersÂ’ compensation policy
was lawfully issued before October 4, 1977. The policy required by ORS 656.419
shall contain for each employer covered thereby the information required by ORS
656.419 (2). When an employer becomes an insured member of the organization the
insurer shall, within 30 days after the date insured membership commenced, file
a notice thereof with the director.
     746.147
WorkersÂ’ compensation insurance; quoting premiums. An insurer or insurance producer offering
workersÂ’ compensation insurance in
     Note: 746.147 was added to and made a part of ORS
chapter 746 by legislative action but was not added to any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation.
     746.150
Other insurance; combination of experience of group of persons or risks; purpose;
rules; conditions. (1) For
property, inland marine, casualty or surety insurance, an insurer may combine
for dividend purposes the experience of a group of persons or risks any of
which are within this state, except for workersÂ’ compensation insurance done in
compliance with ORS 746.145 and subject to rules adopted by the Director of the
Department of Consumer and Business Services.
     (2) The director shall make reasonable
rules regarding such dividend groupings as an aid to the effectuation and
enforcement of the Insurance Code. Such rules shall have as their purpose the
prevention of misrepresentation, unfair discrimination and other unfair trade
practices, and may among other things require that:
     (a) Such a grouping comprises
substantially homogeneous risks.
     (b) The organization under the auspices of
which such a grouping is made has been in existence for at least two years and
was formed for purposes other than that of obtaining insurance.
     (c) A substantial improvement in loss
prevention or claims handling will be a likely result of such a grouping.
     (d) Information regarding eligibility for
participation in the grouping and the system for allocation of dividends among
the participants be filed with the director.
     (3) An insurer shall not unfairly
discriminate in the allocation of dividends among the participants in such a
dividend grouping.
     (4) The system for allocation of dividends
among the participants may provide for allocation at a fixed percentage of
premiums, or may provide for variations in the percentage of premiums paid as
dividends, or may provide for other variations in determining the amounts of
dividends allocated to participants. The variations may be based on loss or
expense factors or on other reasonable considerations, such as risk size, risk
location or industry or trade hazard classification, that have a probable
effect on losses or expenses.
     (5) Failure to apply in a consistent
manner the dividend allocation system specified in an insurerÂ’s dividend
declaration shall be prima facie evidence of unfair discrimination. [1977 c.405
§4; 1983 c.706 §4; 1999 c.59 §230]
     746.155
Applicability of ORS 746.145 and 746.150. ORS 746.145 and 746.150 do not apply to groupings or combinations of
persons or risks by way of common ownership or common use and control as
permitted under ORS 737.600. [1977 c.405 §2]
     746.160
Practices injurious to free competition. Except as otherwise expressly provided by law, no person, either
within or outside of this state, directly or indirectly, shall enter into any
contract, understanding or combination with any insurer or manager, agent or
representative thereof for the purpose of, nor shall any such persons or
insurers, jointly or severally do any act or engage in any practice for the
purpose of:
     (1) Controlling the rates to be charged,
or the commissions or other compensations to be paid, for insuring any risk or
class of risks in this state;
     (2) Discriminating against or
differentiating from any insurer, manager or agent, by reason of the plan or
method of transacting business or the affiliation or nonaffiliation with any
board or association of insurers, managers, agents or representatives; or
     (3) Doing anything which is detrimental to
free competition in the business or injurious to the insuring public. [Formerly
736.615]
     746.170 [Formerly 736.705; repealed by 1977 c.742 §9]
     746.180 [Formerly 736.715; repealed by 2003 c.363 §16]
     746.182 [1987 c.846 §18; 1989 c.701 §74; 1995 c.334 §5;
1997 c.831 §§6,6a; 2001 c.191 §57; 2001 c.377 §52; repealed by 2003 c.363 §16]
     746.185 [1977 c.742 §2; 1985 c.762 §189; 1997 c.631 §551;
2001 c.377 §52a; repealed by 2003 c.363 §16]
     746.190 [Formerly 736.725; repealed by 1977 c.742 §9]
     746.191 [1977 c.742 §3; 2003 c.14 §451; repealed by
2003 c.363 §16]
     746.195
Insurance on property securing loan or credit; certain practices by depository
institutions prohibited. (1)
A depository institution may not:
     (a) Solicit the sale of insurance for the
protection of real or personal property after a person indicates interest in
securing a loan or credit extension, until the depository institution has
agreed to make the loan or credit extension;
     (b) Refuse to accept a written binder
issued by an insurance producer as proof that temporary insurance exists
covering the real or personal property that is the subject matter of, or
security for, a loan or extension of credit, and that a policy of insurance
will be issued covering that property. A written binder issued by an insurance
producer or insurer covering real or personal property that is the subject
matter of, or security for, a loan or extension of credit shall be effective
until a policy of insurance is issued in lieu thereof, including within its
terms the identical insurance bound under the binder and the premium therefor,
or until notice of the cancellation of the binder is received by the borrower
and the depository institution extending credit or offering the loan. When a
depository institution closes on a binder under ORS 742.043, the insurance
producer or insurer issuing the binder shall be bound to provide a policy of
insurance, equivalent in coverage to the coverage set forth in the binder,
within 60 days from the date of the binder. The provisions of this paragraph do
not apply when prohibited by federal or state statute or regulations; or
     (c) Use or disclose to any other insurance
producer, other than the original insurance producer, the information relating
to a policy of insurance furnished by a borrower unless the original insurance
producer fails to deliver a policy of insurance within 60 days prior to
expiration to the depository institution without first procuring the written
consent of the borrower.
     (2) As used in this section, “depository
institution” means a financial institution as that term is defined in ORS
706.008. [1977 c.742 §4; 1987 c.916 §10; 2003 c.363 §12; 2003 c.364 §144a]
     746.200 [Formerly 736.735; repealed by 1977 c.742 §9]
     746.201
Depository institution to obtain required property insurance when borrower does
not; notice required. (1) In
a contract or loan agreement, or in a separate document accompanying the
contract or loan agreement and signed by the mortgagor, borrower or purchaser,
that provides for a loan or other financing secured by the mortgagorÂ’s,
borrowerÂ’s or purchaserÂ’s real or personal property and that authorizes the
secured party to place insurance on the property when the mortgagor, borrower
or purchaser fails to maintain the insurance as required by the contract or
loan agreement or the separate document, a warning in substantially the
following form shall be set forth in 10-point type:
______________________________________________________________________________
WARNING
     Unless you provide us with evidence of the
insurance coverage as required by our contract or loan agreement, we may
purchase insurance at your expense to protect our interest. This insurance may,
but need not, also protect your interest. If the collateral becomes damaged,
the coverage we purchase may not pay any claim you make or any claim made
against you. You may later cancel this coverage by providing evidence that you
have obtained property coverage elsewhere.
     You are responsible for the cost of any
insurance purchased by us. The cost of this insurance may be added to your
contract or loan balance. If the cost is added to your contract or loan
balance, the interest rate on the underlying contract or loan will apply to
this added amount. The effective date of coverage may be the date your prior
coverage lapsed or the date you failed to provide proof of coverage.
     The coverage we purchase may be
considerably more expensive than insurance you can obtain on your own and may
not satisfy any need for property damage coverage or any mandatory liability
insurance requirements imposed by applicable law.
______________________________________________________________________________
     (2) Substantial compliance by a secured
party with subsection (1) of this section constitutes a complete defense to any
claim arising under the laws of this state challenging the secured partyÂ’s
placement of insurance on the real or personal property in which the secured
party has a security interest, for the protection of the secured partyÂ’s
interest in the property.
     (3) Nothing contained in this section
shall be construed to require any secured party to place or maintain insurance
on real or personal property in which the secured party has a security
interest, and the secured party shall not be liable to the mortgagor, borrower
or purchaser or to any other party as a result of the failure of the secured
party to place or maintain such insurance.
     (4) The failure of a secured party prior
to January 1, 1996, to include in a contract or loan agreement, or in a
separate document accompanying the contract or loan agreement, the notice set
forth in subsection (1) of this section shall not be admissible in any court or
arbitration proceeding or otherwise used to prove that a secured partyÂ’s
actions with respect to the placement or maintenance of insurance on real or
personal property in which the secured party has a security interest are or
were unlawful or otherwise improper. A secured party shall not be liable to the
mortgagor, borrower or purchaser or to any other party for placing such
insurance in accordance with the terms of an otherwise legal contract or loan
agreement with the mortgagor, borrower or purchaser entered into prior to
January 1, 1996. [1977 c.742 §5; 1995 c.313 §3; 2003 c.363 §13]
     746.205 [1977 c.742 §6; repealed by 2003 c.363 §16]
     746.210 [Formerly 736.745; repealed by 1977 c.742 §9]
     746.211 [1977 c.742 §7; 1987 c.916 §11; repealed by
2003 c.363 §16]
     746.213
Definitions for ORS 746.213 to 746.219. As used in ORS 746.213 to 746.219:
     (1) “Affiliate” means any company that
controls, is controlled by or is under common control with another company.
     (2) “Customer” means an individual who
purchases, applies to purchase or is solicited to purchase insurance products
primarily for personal, family or household purposes.
     (3) “Depository institution” means a
financial institution as that term is defined in ORS 706.008. [2003 c.363 §2]
     Note: 746.213 to 746.219 were added to and made a
part of the Insurance Code by legislative action but were not added to ORS
chapter 746 or any series therein. See Preface to Oregon Revised Statutes for
further explanation.
     746.215
Regulation of depository institutions with regard to insurance sales or
solicitations. (1) A depository
institution or an affiliate of a depository institution that lends money or
extends credit may not:
     (a) As a condition precedent to the
lending of money or extension of credit, or any renewal thereof, require that
the person to whom the money or credit is extended, or whose obligation a
creditor is to acquire or finance, negotiate any policy or renewal thereof
through a particular insurer or group of insurers or insurance producer or
group of insurance producers.
     (b) Reject an insurance policy solely
because the policy has been issued or underwritten by a person who is not
associated with the depository institution or affiliate when insurance is
required in connection with a loan or the extension of credit.
     (c) As a condition for extending credit or
offering any product or service that is equivalent to an extension of credit,
require that a customer obtain insurance from a depository institution or an
affiliate of a depository institution, or from a particular insurer or
insurance producer. This paragraph does not prohibit a depository institution
or an affiliate of a depository institution from informing a customer or
prospective customer that insurance is required in order to obtain a loan or
credit, that loan or credit approval is contingent upon the procurement by the
customer of acceptable insurance or that insurance is available from the
depository institution or an affiliate of the depository institution.
     (d) Unreasonably reject an insurance
policy furnished by the customer or borrower for the protection of the property
securing the credit or loan. A rejection is not considered unreasonable if it
is based on reasonable standards that are uniformly applied and that relate to
the extent of coverage required and to the financial soundness and the services
of an insurer. The standards may not discriminate against any particular type
of insurer or call for rejection of an insurance policy because the policy
contains coverage in addition to that required in the credit transaction.
     (e) Require that any customer, borrower,
mortgagor, purchaser, insurer or insurance producer pay a separate charge in
connection with the handling of any insurance policy required as security for a
loan on real estate, or pay a separate charge to substitute the insurance policy
of one insurer for that of another. A charge prohibited in this paragraph does
not include the interest that may be charged on premium loans or premium
advancements in accordance with the terms of the loan or credit document. This
paragraph does not apply to charges that would be required when the depository
institution or an affiliate of a depository institution is the licensed
insurance producer providing the insurance.
     (f) Require any procedures or conditions
of an insurer or insurance producer not customarily required of insurers or
insurance producers affiliated or in any way connected with the depository
institution.
     (g) Use an advertisement or other
insurance promotional material that would cause a reasonable person to
mistakenly believe that the federal government or the state is responsible for
the insurance sales activity of, or stands behind the credit of, the depository
institution or its affiliate.
     (h) Use an advertisement or other
insurance promotional material that would cause a reasonable person to
mistakenly believe that the federal government or the state guarantees any
returns on insurance products or is a source of payment on any insurance
obligation of or sold by the depository institution or its affiliate.
     (i) Act as an insurance producer unless
properly licensed in accordance with ORS 744.062, 744.063 or 744.064.
     (j) Pay or receive any commission,
brokerage fee or other compensation as an insurance producer, unless the
depository institution or affiliate holds a valid insurance producer license
for the applicable class of insurance. However, an unlicensed depository
institution or affiliate may make a referral to a licensed insurance producer
if the depository institution or affiliate does not negotiate, sell or solicit
insurance. In the case of a referral of a customer, however, the unlicensed
depository institution or affiliate may be compensated for the referral only if
the compensation is a fixed dollar amount for each referral that does not
depend on whether the customer purchases the insurance product from the
licensed insurance producer. Any depository institution or affiliate that
accepts deposits from the public in an area in which such transactions are
routinely conducted in the depository institution may receive for each customer
referral no more than a one-time, nominal fee of a fixed dollar amount for each
referral that does not depend on whether the referral results in a transaction.
     (k) Solicit or sell insurance, other than
credit insurance or flood insurance, unless the solicitation or sale is
completed through documents separate from any credit transactions.
     (L) Except as provided in ORS 746.201,
include the expense of insurance premiums, other than credit insurance premiums
or flood insurance premiums, in the primary credit transaction without the
express written consent of the customer.
     (m) Solicit or sell insurance unless the
insurance sales activities of the depository institution or affiliate are, to
the extent practicable, physically separated from areas where retail deposits
are routinely accepted by depository institutions.
     (n) Solicit or sell insurance unless the
depository institution or affiliate maintains separate and distinct books and
records relating to the insurance transactions, including all files relating to
and reflecting consumer complaints.
     (2) A depository institution or an
affiliate of a depository institution that lends money or extends credit and
that solicits insurance primarily for personal, family or household purposes
shall disclose to the customer in writing that the insurance related to the
credit extension may be purchased from an insurer or insurance producer of the
customerÂ’s choice, subject only to the depository institutionÂ’s right to reject
a given insurer or insurance producer as provided in subsection (1)(d) of this
section. The disclosure shall inform the customer that the customerÂ’s choice of
insurer or insurance producer will not affect the credit decision or credit
terms in any way, except that the depository institution may impose reasonable
requirements concerning the creditworthiness of the insurer and the extent of
coverage chosen as provided in subsection (1)(d) of this section. [2003 c.363 §3;
2005 c.22 §497]
     Note: See note under 746.213.
     746.217
Disclosures to customers.
(1) A depository institution that sells insurance, and any person that sells
insurance on behalf of a depository institution, or on the premises of a
depository institution where the depository institution is engaged in the
business of taking deposits or making loans, shall disclose to the customer in
writing, when practicable and in a clear and conspicuous manner, prior to a
sale, that the insurance:
     (a) Is not a deposit;
     (b) Is not insured by the Federal Deposit
Insurance Corporation or any other federal government agency;
     (c) Is not guaranteed by the depository
institution or an affiliate of the depository institution if applicable, or any
person that is selling insurance if applicable; and
     (d) When appropriate, involves investment
risk, including the possible loss of value.
     (2) The requirements of subsection (1) of
this section apply:
     (a) To an affiliate of a depository
institution only to the extent that it sells insurance on the premises of a
depository institution where the depository institution is engaged in the
business of taking deposits or making loans or on behalf of a depository
institution.
     (b) When an individual purchases insurance
primarily for personal, family or household purposes and only to the extent
that the disclosure would be accurate.
     (3) For the purpose of subsection (1) of
this section, a person is selling insurance on behalf of a depository
institution, whether on the premises of the depository institution or at
another location, if either one of the following applies:
     (a) The person represents to the customer
that the sale of the insurance is by or on behalf of the depository
institution; or
     (b) The depository institution refers a
customer to the person that sells insurance and the depository institution has
a contractual arrangement to receive commissions or fees derived from the sale
of insurance resulting from the referral. [2003 c.363 §4]
     Note: See note under 746.213.
     746.219
Investigatory powers. (1)
The Director of the Department of Consumer and Business Services may examine
and investigate the insurance activities of any person that the director
believes may be in violation of ORS 746.213, 746.215 or 746.217. Upon request
and reasonable notice, a person shall make its insurance books and records
available to the director and the directorÂ’s staff for inspection. An affected
person may submit to the director a complaint or material pertinent to the
enforcement of ORS 746.213, 746.215 and 746.217.
     (2) Nothing in ORS 746.213, 746.215 or
746.217 prevents a depository institution or an affiliate of a depository
institution that lends money or extends credit or other lender or seller from
placing insurance on real or personal property in the event the customer,
borrower, mortgagor or purchaser fails to provide insurance required under the
terms of the loan or credit document.
     (3) ORS 746.213, 746.215 and 746.217 do
not apply to credit-related insurance. [2003 c.363 §5]
     Note: See note under 746.213.
     746.220
DebtorÂ’s option in furnishing credit life or credit health insurance. When credit life insurance or credit health
insurance, as defined in ORS 743.371, is required as additional security for
any indebtedness, the debtor shall, upon request to the creditor, have the
option of furnishing the required amount of insurance through existing policies
of insurance owned or controlled by the debtor or of procuring and furnishing
the required coverage through any authorized insurer. [Formerly 739.615]
     746.222
Prohibition on referral of individual to Medical Insurance Pool. No insurer or licensee under the Insurance
Code shall refer an individual to the Oregon Medical Insurance Pool,
established under ORS 735.600 to 735.650, for coverage offered by the pool or
arrange for the individual to apply to the pool for the purpose of separating
the individual from health insurance benefits offered or provided in connection
with a group health benefit plan. [1993 c.130 §5; 1999 c.987 §20]
     746.225 [1975 c.469 §2; repealed by 1979 c.140 §3]
     746.230
Unfair claim settlement practices. (1) No insurer or other person shall commit or perform any of the
following unfair claim settlement practices:
     (a) Misrepresenting facts or policy
provisions in settling claims;
     (b) Failing to acknowledge and act
promptly upon communications relating to claims;
     (c) Failing to adopt and implement
reasonable standards for the prompt investigation of claims;
     (d) Refusing to pay claims without
conducting a reasonable investigation based on all available information;
     (e) Failing to affirm or deny coverage of
claims within a reasonable time after completed proof of loss statements have
been submitted;
     (f) Not attempting, in good faith, to
promptly and equitably settle claims in which liability has become reasonably
clear;
     (g) Compelling claimants to initiate
litigation to recover amounts due by offering substantially less than amounts
ultimately recovered in actions brought by such claimants;
     (h) Attempting to settle claims for less
than the amount to which a reasonable person would believe a reasonable person
was entitled after referring to written or printed advertising material
accompanying or made part of an application;
     (i) Attempting to settle claims on the
basis of an application altered without notice to or consent of the applicant;
     (j) Failing, after payment of a claim, to
inform insureds or beneficiaries, upon request by them, of the coverage under
which payment has been made;
     (k) Delaying investigation or payment of
claims by requiring a claimant or the physician of the claimant to submit a
preliminary claim report and then requiring subsequent submission of loss forms
when both require essentially the same information;
     (L) Failing to promptly settle claims
under one coverage of a policy where liability has become reasonably clear in
order to influence settlements under other coverages of the policy; or
     (m) Failing to promptly provide the proper
explanation of the basis relied on in the insurance policy in relation to the
facts or applicable law for the denial of a claim.
     (2) No insurer shall refuse, without just
cause, to pay or settle claims arising under coverages provided by its policies
with such frequency as to indicate a general business practice in this state,
which general business practice is evidenced by:
     (a) A substantial increase in the number
of complaints against the insurer received by the Department of Consumer and
Business Services;
     (b) A substantial increase in the number
of lawsuits filed against the insurer or its insureds by claimants; or
     (c) Other relevant evidence.
     (3)(a) No health maintenance organization,
as defined in ORS 750.005, shall unreasonably withhold the granting of
participating provider status from a class of statutorily authorized health
care providers for services rendered within the lawful scope of practice if the
health care providers are licensed as such and reimbursement is for services
mandated by statute.
     (b) Any health maintenance organization
that fails to comply with paragraph (a) of this subsection shall be subject to
discipline under ORS 746.015.
     (c) This subsection does not apply to
group practice health maintenance organizations that are federally qualified
pursuant to Title XIII of the Health Maintenance Organization Act. [1967 c.359 §588a;
1973 c.281 §1; 1989 c.594 §1]
     746.240
Undefined trade practices injurious to public prohibited. No person shall engage in this state in any
trade practice that, although not expressly defined and prohibited in the
Insurance Code, is found by the Director of the Department of Consumer and
Business Services to be an unfair or deceptive act or practice in the
transaction of insurance that is injurious to the insurance-buying public. [1967
c.359 §589; 1973 c.281 §2]
     746.250 [1967 c.359 §590; repealed by 1973 c.281 §3]
     746.260
Driving record not to be considered in issuance of motor vehicle insurance. (1) Except as provided in subsection (4) of
this section, when an individual applies for a policy or a renewal of a policy
of casualty insurance providing automobile liability coverage, uninsured
motorist coverage, automobile medical payments coverage or automobile physical
damage coverage on an individually owned passenger vehicle including pickup and
panel trucks and station wagons, an insurer shall not consider either the
employment driving record or the nonemployment driving record of the individual
in determining whether the policy will be issued or renewed or in determining
the rates for the policy. An insurer shall not cancel such policy or
discriminate in regard to other terms or conditions of the policy based upon
the employment driving record or the nonemployment driving record of the
individual.
     (2) As used in this section, “employment
driving record” and “nonemployment driving record” mean the employment driving
record and nonemployment driving record described in ORS 802.200.
     (3) This section is not intended to affect
the enforcement of the motor vehicle laws.
     (4) An insurer may use the abstract of the
individualÂ’s nonemployment driving record as authorized under ORS 746.265. [1973
c.113 §2; 1979 c.662 §2; 1983 c.338 §969; 1987 c.5 §6]
     746.265
Purposes for which abstract of nonemployment driving record may be considered. (1) Subject to subsection (2) of this
section, when an individual applies for a policy or a renewal of a policy of
casualty insurance providing automobile liability coverage, uninsured motorist
coverage, automobile medical payments coverage or automobile physical damage
coverage on an individually owned passenger vehicle including pickup and panel
trucks and station wagons, the insurer may consider the abstract of the
nonemployment driving record of the individual under ORS 802.220:
     (a) For the purpose of determining whether
to issue or renew the individualÂ’s policy.
     (b) For the purpose of determining the
rates of the individualÂ’s policy.
     (2) For the purposes specified in
subsection (1) of this section, an insurer issuing or renewing a policy
described in subsection (1) of this section shall not consider any:
     (a) Accident or conviction for violation
of motor vehicle laws that occurred more than three years immediately preceding
the application for the policy or renewal of the policy;
     (b) Diversion agreements under ORS 813.220
that were entered into more than three years immediately preceding the
application for the policy or renewal of the policy; or
     (c) Suspension of driving privileges
pursuant to ORS 809.280 (7) or (9) if the suspension is based on a nondriving
offense.
     (3) Subsection (2) of this section does
not apply if an insurer considers the nonemployment driving record of an
individual under ORS 802.220 for the purpose of providing a discount to the
individual. [1987 c.5 §5; 1989 c.853 §1; 1991 c.860 §7; 1999 c.59 §231; 2001
c.327 §1]
     746.270
Use of past investment or predicted future investment experience in sale of
variable life insurance policies. No person shall make or use in the offer or sale of a variable life
insurance policy any illustrations of benefits payable that include projections
of past investment experience into the future or predictions of future investment
experience. This section is not intended to prohibit use of hypothetical
assumed rates of investment return to illustrate possible levels of benefits. [1973
c.435 §26]
     746.275
Definitions for ORS 746.275 to 746.300. As used in ORS 746.275 to 746.300:
     (1) “Adjuster” means a person authorized
to do business under ORS 744.505 or 744.515.
     (2) “Motor vehicle liability insurance
policy” means an insurance policy which provides automobile liability coverage,
uninsured motorist coverage, automobile medical payments coverage or automobile
physical damage coverage on motor vehicles, but does not include any insurance
policy:
     (a) Covering garage, automobile sales
agency, repair shop, service station or public parking place operation hazards;
or
     (b) Issued principally to cover personal
or premises liability of an insured, even though such insurance may also
provide some incidental coverage for liability arising out of the ownership,
maintenance or use of a motor vehicle on the premises of such insured or on the
ways immediately adjoining such premises.
     (3) “Motor vehicle body and frame repair
shop” means a business or a division of a business organized for the purpose of
effecting repairs to motor vehicles which have been physically damaged. [1977
c.785 §1]
     Note: 746.275 to 746.300 and 746.991 were enacted
into law by the Legislative Assembly but were not added to or made a part of
ORS chapter 746 or any series therein by legislative action. See Preface to
Oregon Revised Statutes for further explanation.
     746.280
Designation of particular motor vehicle repair shop by insurer prohibited; notice;
limitation of costs. (1) An
insurer may not require that a particular person make the repairs to the
insuredÂ’s motor vehicle as a condition for recovery by the insured under a
motor vehicle liability insurance policy.
     (2) Prior to providing a recommendation
that a particular person make repairs to the insuredÂ’s motor vehicle, the
person adjusting the claim on behalf of the insurer shall inform the insured of
the rights conferred by subsection (1) of this section by communicating in a
statement substantially similar to the following:
______________________________________________________________________________
    Â
______________________________________________________________________________
     (3) If an insured elects to have the motor
vehicle repaired at a motor vehicle repair shop other than a shop recommended
by the insurer, the insurer may not limit the cost of repairs necessary to
return the motor vehicle to a preloss condition relative to safety, function
and appearance other than as stated in the policy or as otherwise allowed by
law.
     (4) If an insured accepts the insurer’s
recommendation, the insurer shall provide, electronically or in printed form, a
statement to the insured within three business days after the date of acceptance
in substantially the following form:
______________________________________________________________________________
     WE HAVE RECOMMENDED A MOTOR VEHICLE REPAIR
SHOP. IF YOU AGREE TO USE OUR RECOMMENDED REPAIR SHOP, YOUR VEHICLE WILL
RECEIVE REPAIRS RETURNING IT TO A PRELOSS CONDITION RELATIVE TO SAFETY,
FUNCTION AND APPEARANCE AT NO ADDITIONAL COST TO YOU OTHER THAN AS STATED IN
THE INSURANCE POLICY OR AS OTHERWISE ALLOWED BY LAW.
______________________________________________________________________________
[1977 c.785 §2;
2007 c.506 §1]
     Note: See note under 746.275.
     746.285
Notice of prohibition in motor vehicle repair shops; size; location. A person operating a motor vehicle body and
frame repair shop shall display in a conspicuous place in the shop a sign in
bold face type in letters at least two inches high reading substantially as
follows:
______________________________________________________________________________
     PURSUANT TO
______________________________________________________________________________
[1977 c.785 §3]
     Note: See note under 746.275.
     746.287
Insurer requirement of installation of aftermarket crash part in vehicle. (1) Without the consent of the owner of the
vehicle, an insurer may not require, directly or indirectly, that a motor
vehicle body and frame repair shop supply or install any aftermarket crash part
unless the part has been certified by an independent test facility to be at
least equivalent to the part being replaced.
     (2) For purposes of this section, an
aftermarket crash part is at least equivalent to the part being replaced if the
aftermarket crash part is the same kind of part and is at least the same
quality with respect to fit, finish, function and corrosion resistance. [1987
c.622 §3]
     Note: See note under 746.275.
     746.289
Insurer offer of crash part warranty. Any insurer which offers a motor vehicle insurance policy that
provides coverage for repair of the vehicle shall make available to its insured
a crash part warranty for crash parts not made by the original equipment
manufacturer as described in ORS 746.292 when the insured requests one. [1987
c.622 §4]
     Note: 746.289 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 746,
ORS 746.275 to 746.300 or any other series by legislative action. See Preface
to Oregon Revised Statutes for further explanation.
     746.290
Notice of prohibition in policies and by adjusters. (1) An adjuster establishing loss under a
motor vehicle liability insurance policy shall advise the insured of the
provisions of ORS 746.280.
     (2) Every motor vehicle liability
insurance policy issued in this state after December 31, 1977, and any
extension or renewal after that date of a policy issued before that date shall
be accompanied by a statement in clear and conspicuous language approved by the
director of:
     (a) The rights and responsibilities of the
insured when a claim is submitted; and
     (b) The provisions of ORS 746.280. [1977
c.785 §4]
     Note: See note under 746.275.
     746.292
Motor vehicle repair shops; invoices; estimates; warranties; prohibited
practices. (1) All work done
by a motor vehicle body and frame repair shop shall be recorded on an invoice
and shall describe all service work done and parts supplied. If any used parts
are supplied, the invoice shall clearly state that fact. If any component
system installed is composed of new and used parts, such invoice shall clearly
state that fact. One copy of the invoice shall be given to the customer and one
copy shall be retained by the motor vehicle body and frame repair shop.
     (2) Before commencing repair work and upon
the request of any customer, a motor vehicle body and frame repair shop shall
make an estimate in writing of the parts and labor necessary for the repair
work, and shall not charge for the work done or parts supplied in excess of the
estimate without the consent of such customer.
     (3)(a) If crash parts to be used in the
repair work are supplied by the original equipment manufacturer, the parts
shall be accompanied by a warranty that guarantees the customer that the parts
meet or exceed standards used in manufacturing the original equipment.
     (b) If crash parts to be used in the
repair work are not supplied by the original equipment manufacturer, the
estimate shall include a statement that says:
______________________________________________________________________________
     This estimate has been prepared based on
the use of a motor vehicle crash part not made by the original equipment
manufacturer. The use of a motor vehicle crash part not made by the original
equipment manufacturer may invalidate any remaining warranties of the original
equipment manufacturer on that motor vehicle part. The person who prepared this
estimate will provide a copy of the part warranty for crash parts not made by
the original equipment manufacturer for comparison purposes.
______________________________________________________________________________
     (4) No motor vehicle body and frame shop
may:
     (a) Supply or install used parts, or any
component system composed of new and used parts, when new parts or component
systems are or were to be supplied or installed.
     (b) Supply or install, without the owner’s
consent, any aftermarket crash part unless the part has been certified by an
independent test facility to be at least equivalent to the part being replaced.
For purposes of this paragraph, an aftermarket crash part is at least
equivalent to the part being replaced if the aftermarket crash part is the same
kind of part and is at least the same quality with respect to fit, finish,
function and corrosion resistance.
     (c) Charge for repairs not actually performed,
or add the cost of repairs not actually to be performed to any repair estimate.
     (d) Refuse any insurer, or its insured, or
their agents or employees, reasonable access to any repair facility for the
purpose of inspecting or reinspecting the damaged vehicle during usual business
hours.
     (5) As used in ORS 746.287 and this
section, “aftermarket crash part” means a motor vehicle replacement part, sheet
metal or plastic, that constitutes the visible exterior of the vehicle,
including an inner or outer panel, is generally repaired or replaced as the
result of a collision and is not supplied by the original equipment
manufacturer. [1977 c.785 §5; 1987 c.622 §1]
     Note: See note under 746.275.
     746.295
Proof and amount of loss under motor vehicle liability policies; determination
by insurer. Nothing in ORS
746.275 to 746.300 or 746.991 shall prohibit an insurer from establishing proof
of loss requirements for motor vehicle liability insurance policies,
investigating and determining the amount of an insuredÂ’s loss through its
agents or employees or negotiating with any person for the repair of such loss.
[1977 c.785 §6]
     Note: See note under 746.275.
     746.300
Liability of insurers and motor vehicle repair shops for damages; attorney
fees. An insured whose insurer
violates ORS 746.280 or 746.290, or a customer whose motor vehicle body and
frame repair shop violates ORS 746.292, may file an action to recover actual
damages or $100, whichever is greater, for each violation. The court may award
reasonable attorney fees to the prevailing party in an action under this
section. [1977 c.785 §7; 1981 c.897 §102; 1995 c.618 §129]
     Note: See note under 746.275.
     746.305
Rules. The Director of the
Department of Consumer and Business Services may adopt rules to carry out the
provisions of ORS 746.275 to 746.300 and 746.991. [1987 c.622 §5]
     Note: 746.305 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 746 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     746.307 [1989 c.947 §4; renumbered 743.724 in 1991]
     746.308
Violation of provisions regarding totaled vehicles as violation of Insurance
Code. An insurer that
violates ORS 819.014 or 819.018 shall be considered to have violated a
provision of the Insurance Code. [1991 c.820 §7]
     Note: 746.308 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 746 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
UNAUTHORIZED
INSURANCE
     746.310
Representing or aiding unauthorized insurer prohibited; insurance producer
liable to insured. (1) No
person shall in this state directly or indirectly with respect to domestic risks
act as insurance producer for or otherwise transact insurance for any insurer
not then authorized to transact such insurance in this state.
     (2) In the event of failure of any
unauthorized insurer to pay any claim or loss within the provisions of such insurance
policy, any insurance producer who assisted or in any manner aided in the
procurement of such insurance policy knowing it to be procured through an
unauthorized insurer shall be liable to the insured for the full amount of the
claim or loss.
     (3) This section does not apply to:
     (a) Matters authorized to be done by the
Director of the Department of Consumer and Business Services under ORS 746.320
to 746.360.
     (b) Insurance written under a surplus line
license in compliance with ORS 735.400 to 735.495.
     (c) Any transaction with respect to
reinsurance when transacted by an insurer duly authorized by its state of
domicile to transact the class of insurance involved.
     (d) A licensed adjuster or attorney at law
representing such an insurer from time to time in such occupational or
professional capacity. [1967 c.359 §591; 1969 c.336 §17; 1987 c.774 §140; 1991
c.810 §27; 2003 c.364 §145]
     746.320
Service of process equivalent to personal service on unauthorized foreign or
alien insurer. (1) When an
unauthorized insurer does any of the acts specified in subsection (2) of this
section in this state, by mail or otherwise, the doing of such acts shall
constitute an appointment by such insurer of the Director of the Department of
Consumer and Business Services, and the successor in office, as its lawful
attorney upon whom all process may be served in any action begun by or on
behalf of an insured or beneficiary and arising out of policies of insurance
between the insurer and persons residing or authorized to do business in this
state. Subject to subsection (4) of this section, the doing of any such act
shall signify the insurerÂ’s consent that service of process upon the director
is of the same legal force and effect as personal service of process upon such
insurer within this state.
     (2) The acts referred to in subsection (1)
of this section are:
     (a) Issuing or delivering policies of
insurance to persons residing or authorized to do business in this state.
     (b) Soliciting applications for policies
of insurance from such persons.
     (c) Collecting premiums, membership fees,
assessments or other considerations under policies of insurance from such
persons.
     (d) Any other transaction of business
arising out of policies of insurance with such persons.
     (3) Service of process upon the director
shall be made by delivering to and leaving with the director, or with any clerk
on duty in the office, two copies of such process. Immediately after service of
process, the director shall send one of such copies to the defendant insurer at
its principal office. The director shall keep a record of all processes served
upon the director under this section.
     (4) Service of process in the manner
provided in this section gives jurisdiction over the person of an insurer
provided:
     (a) Notice of such service and a copy of
the process are sent by registered mail or by certified mail with return
receipt by the plaintiff, or the attorney of the plaintiff, to the defendant
insurer at its principal office within 10 days after the date of service; and
     (b) The defendant insurer’s receipt, or
receipt issued by the post office with which the letter is registered or
certified, showing the name of the sender of the letter and the name and
address of the person to whom the letter is addressed and an affidavit of the
plaintiff, or the attorney of the plaintiff, showing compliance with this
section are filed with the clerk of the court in which the action against such
insurer is pending on or before the date on which such insurer is required to
appear, or within such further time as the court may allow.
     (5) Nothing contained in this section
shall limit or abridge the right to serve any process upon an insurer in any
other manner then permitted by law. [Formerly 736.252; 1991 c.249 §71]
     746.330
Judgment by default after service of process under ORS 746.320. Until the expiration of 30 days from the
date of filing an affidavit of compliance under ORS 746.320, no plaintiff or
complainant shall be entitled to a judgment by default in any action in which
service of process is made in the manner provided in such section. [Formerly
736.254]
     746.340
Conditions to be met by defendant unauthorized insurer before filing motions or
pleadings. (1) Except as
provided in subsection (3) of this section, before any unauthorized insurer may
file or cause to be filed any motion or pleading in an action started against
it by service of process in the manner provided in ORS 746.320, the defendant
insurer shall either:
     (a) Procure a certificate of authority to
transact insurance in this state; or
     (b) Deposit cash or securities or file a
bond with good and sufficient sureties, approved by the court, with the clerk
of the court in which such action is pending in an amount, fixed by the court,
sufficient to secure the payment of any judgment which may be entered in such
action. However, the court may in its discretion make an order dispensing with
such deposit or bond where the insurer makes a showing satisfactory to such
court that the insurer maintains in a state of the
     (2) The court may order such postponement
as may be necessary to give such insurer reasonable opportunity to comply with
subsection (1) of this section and to prepare its defense in such action.
     (3) Nothing in ORS 746.320 to 746.360
shall be construed to prevent a defendant unauthorized insurer from filing a
motion to set aside service of process made in the manner provided in ORS
746.320 on the ground that such insurer has not done any of the acts described
in subsection (2) of such section. [Formerly 736.256]
     746.350
Attorney fee allowable to prevailing party. In any action against an unauthorized insurer in which service of
process was made in the manner provided in ORS 746.320, the court may award
reasonable attorney fees to the prevailing party. [Formerly 736.258; 1981 c.897
§103; 1995 c.618 §130]
     746.360
Exceptions to application of unauthorized insurer service of process law. ORS 746.320 to 746.360 do not apply to an
action against an unauthorized insurer arising out of any policy of:
     (1) Reinsurance or wet marine and
transportation insurance;
     (2) Insurance effected in compliance with
ORS 735.400 to 735.495;
     (3) Insurance against legal liability
arising out of ownership, operation or maintenance of any property having a
permanent situs outside the state; or
     (4) Insurance against loss of or damage to
any property having a permanent situs outside this state, where such policy
contains a provision designating the Director of the Department of Consumer and
Business Services or a bona fide resident of this state as the insurerÂ’s lawful
attorney upon whom all process may be served in any action begun by or on behalf
of an insured or beneficiary and arising out of policies of insurance between
the insurer and persons residing or authorized to do business in this state. [Formerly
736.260; 2005 c.185 §6]
     746.370
Records of insureds. In
order that the Director of the Department of Consumer and Business Services may
effectively administer ORS 746.310 to 746.370, every person for or by whom
insurance has been placed with an unauthorized insurer shall, upon the directorÂ’s
order, produce for examination all policies and other documents evidencing the
insurance, and shall disclose to the director the amount of premiums paid or
agreed to be paid for the insurance. [1967 c.359 §597]
PREMIUM
FINANCING
     746.405
Definitions for ORS 746.405 to 746.530. As used in ORS 746.405 to 746.530, unless the context requires
otherwise:
     (1) “Premium finance agreement” means an
agreement by which an insured or prospective insured promises to pay to a
premium finance company or to its assignee the amount advanced or to be
advanced under the agreement to an insurer or to an insurance producer in
payment of premiums on an insurance policy together with a service charge. No
mortgage, conditional sale contract or other security agreement covering
property which authorizes the lienholder to pay or advance premiums for
insurance with respect thereto shall be deemed to be a premium finance
agreement.
     (2) “Premium finance company” means a
person engaged in the business of entering into premium finance agreements with
insureds or of acquiring such premium finance agreements from insurance
producers or other premium finance companies. [1969 c.639 §2; 2003 c.364 §146]
     746.415 [1969 c.639 §3; repealed by 1993 c.265 §14]
     746.420 [1989 c.700 §22; repealed by 1993 c.265 §14]
     746.422
Inquiries from director to premium finance company. In the manner provided in ORS 731.296, the
Director of the Department of Consumer and Business Services may address
inquiries to a premium finance company, and a premium finance company shall
reply to such inquiries. [1993 c.265 §11]
     746.425
Applicability of ORS 746.405 to 746.530. ORS 746.405 to 746.530 do not apply to:
     (1) Any insurer authorized to transact
business in this state who finances insurance premiums on domestic risks with a
service charge no greater than that provided in ORS 746.485 and 746.495;
     (2) Any bank, trust company, savings and
loan association, credit union or other lending institution authorized to
transact business in this state that does not possess or acquire any right,
title or interest with respect to the insurance policy for which the premiums
are financed other than in the proceeds thereof in the event of loss;
     (3) The inclusion of a charge for
insurance in connection with an installment sale in accordance with ORS 83.010
to 83.820 and 83.990; or
     (4) Insurance producers financing only
their own accounts and whose aggregate charge for financing does not exceed one
and one-half percent per month on the outstanding balance. [1969 c.639 §4; 1981
c.412 §22; 2003 c.364 §147]
     746.435 [Amended by 1969 c.639 §5; 1971 c.231 §36;
1989 c.700 §19; repealed by 1993 c.265 §14]
     746.445 [1969 c.639 §6; 1989 c.700 §20; repealed by
1993 c.265 §14]
     746.455 [1969 c.639 §7; 1971 c.231 §37; repealed by
1993 c.265 §14]
     746.460 [1989 c.700 §23; repealed by 1993 c.265 §14]
     746.465
Records required of premium finance companies; form; inspection. (1) Every premium finance company shall
maintain records of its premium finance transactions and the records shall be
open to examination and investigation by the Director of the Department of
Consumer and Business Services. The director may at any time require the
company to bring such records as the director may direct to the directorÂ’s
office for examination.
     (2) Every premium finance company shall
preserve its records of such premium finance transactions, including cards used
in a card system, for at least three years after making the final entry in
respect to any premium finance agreement. The preservation of records in
photographic form shall constitute compliance with this requirement. [1969
c.639 §8]
     746.470
Prohibition against interfering with premium financing recommendation. No insurer shall interfere in any way with
the right of any person soliciting or procuring an application for its
insurance policies to recommend to an insured any premium finance company. [1983
c.239 §5]
     746.475
Premium finance agreements; contents; form; delivery; notice to insurer. (1) A premium finance agreement shall:
     (a) Be dated, signed by the insured or by
any person authorized in writing to act in behalf of the insured, and the
printed portion thereof shall be in at least eight-point type;
     (b) Contain the name and place of business
of the insurance producer negotiating the related insurance policy, the name
and residence or the place of business of the insured as specified by the
insured, the name and place of business of the premium finance company to which
payments are to be made, a description of the insurance policies involved and
the amount of the premium therefor; and
     (c) Set forth the following items where
applicable:
     (A) The total amount of the premiums.
     (B) The amount of the down payment.
     (C) The principal balance (the difference
between items (A) and (B)).
     (D) The amount of the service charge.
     (E) The balance payable by the insured
(sum of items (C) and (D)).
     (F) The number of payments required, the
amount of each payment expressed in dollars, and the due date or period
thereof.
     (2) The items set out in subsection (1)(c)
of this section need not be stated in the sequence or order in which they
appear in such paragraph, and additional items may be included to explain the
computations made in determining the amount to be paid by the insured.
     (3) The premium finance company or the
insurance producer shall deliver to the insured, or mail to the insured at the
address shown in the agreement, a complete copy of the agreement.
     (4) A premium finance company shall give
notice of its financing to the insurer not later than the 30th day after the
date the premium financing agreement is received by the premium finance
company. A notice given under this subsection shall be effective whether or not
the insured’s policy number is set forth in the notice. [1969 c.639 §9; 1971
c.231 §38; 1983 c.239 §3; 2003 c.364 §148]
     746.485
Regulation of service charge for premium financing; method of computation;
prepayment. (1) A premium
finance company shall not charge, contract for, receive, or collect a service
charge other than as permitted by ORS 746.405 to 746.530.
     (2) The service charge is to be computed
on the balance of the premiums due (after subtracting the down payment made by
the insured in accordance with the premium finance agreement) from the
effective date of the insurance coverage, for which the premiums are being advanced,
to and including the date when the final payment of the premium finance
agreement is payable.
     (3) The service charge shall not exceed
interest at a rate authorized under this subsection plus an additional charge
of 10 percent of the amount financed or $50, whichever amount is less, per
premium finance agreement. The additional charge need not be refunded upon
cancellation or prepayment. The rate of interest charged by a premium finance
company on the amount of financed premium shall not exceed the nominal annual
rate of five percentage points in excess of the discount rate, and any
surcharge thereon, on 90-day commercial paper in effect at the Federal Reserve
Bank in the Federal Reserve District which includes Oregon on the effective
date of the insurance coverage or 18 percent, whichever is greater.
     (4) Any insured may prepay the premium
finance agreement in full at any time before the due date of the final payment.
In such event the unearned interest shall be refunded. The amount of any such
refund shall be the total amount of interest due on the agreement less the
interest earned to the installment date nearest the date of payment, computed
by applying the actuarial method based on the annual percentage rate set forth
on the premium finance agreement. [1969 c.639 §10; 1971 c.231 §39; 1983 c.239 §1]
     746.495
Delinquency charges regulated.
(1) A premium finance agreement may provide for the payment by the insured of a
delinquency charge for any payment that is in default for a period of 10 days
or more. Such charge may be made for each month or fraction thereof that the
payment is in default. The amount of such charge may be a minimum of $1 and as
a maximum shall be subject to the following limits:
     (a) For delinquent payments of less than
$250, five percent of the payment or $5, whichever is less; or
     (b) For delinquent payments of $250 or
more, two percent of the payment.
     (2) If a payment default results in the
cancellation of any insurance policy listed in the agreement, the agreement may
provide for the payment by the insured of a cancellation charge of $5, less any
delinquency charges imposed in respect to the payment in default. [1969 c.639 §11]
     746.505
Cancellation of policy by premium finance company; notice required; effective
date of cancellation. (1)
When a premium finance agreement contains a power of attorney enabling the
premium finance company to cancel any insurance policy or policies listed in
the agreement, the insurance policy or policies shall not be canceled by the
premium finance company unless such cancellation is effectuated in accordance
with this section.
     (2) Not less than 10 days’ written notice
shall be mailed to the insured of the intent of the premium finance company to
cancel the insurance policy unless the default is cured within such 10-day
period. A copy of such notice shall also be mailed to the insurance producer
indicated on the premium finance agreement.
     (3) After expiration of such 10-day
period, the premium finance company may thereafter in the name of the insured cancel
such insurance policy or policies by mailing to the insurer a notice of
cancellation, and the insurance policy shall be canceled as if such notice of
cancellation had been submitted by the insured, but without requiring the
return of the insurance policy or policies. The premium finance company shall
also mail a notice of cancellation to the insured at the last-known address of
the insured and to the insurance producer indicated on the premium finance
agreement.
     (4) All statutory, regulatory and contractual
restrictions providing that the insurance policy may not be canceled unless
notice is given to a governmental agency, mortgagee, or other third party shall
apply where cancellation is effected under the provisions of this section. The
insurer shall give the prescribed notice on behalf of itself or the insured to
any governmental agency, mortgagee, or other third party on or before the
second business day after the day it receives the notice of cancellation from
the premium finance company and shall determine the effective date of
cancellation taking into consideration the number of daysÂ’ notice required to
complete the cancellation. [1969 c.639 §12; 1983 c.239 §2; 2003 c.364 §149]
     746.515
Return of unearned premiums on cancellation. (1) Whenever a financed insurance policy is canceled, the insurer who
has been notified as provided in ORS 746.475 (4) shall return whatever gross
unearned premiums are due under the insurance policy to the premium finance
company for the account of the insured or insureds not later than the 30th day
after the date of cancellation. If the insurer elects to return the premium
through the insurance producer, the insurance producer shall transmit the
unearned premium to the premium finance company within the 30-day period. The
insurer, on written notice of any failure of the insurance producer to transmit
the premium and not later than the 30th day after the notice, shall pay the
amount of return premium directly to the premium finance company.
     (2) In calculating the gross unearned
premium due under a financed insurance policy, the insurer shall use the
prorate method of calculation.
     (3) In the event that the crediting of
return premiums to the account of the insured results in a surplus over the
amount due from the insured, the premium finance company shall refund such
excess to the insured provided that no such refund shall be required if it
amounts to less than $1. [1969 c.639 §13; 1983 c.239 §7; 2003 c.364 §150]
     746.525
Agreement effective as security interest. No filing of the premium finance agreement shall be necessary to
perfect the validity of such agreement as a secured transaction as against
creditors, subsequent purchasers, pledgees, encumbrancers, successors or
assigns. [1969 c.639 §14]
     746.530
Attorney fees. In any action
to enforce any right created by ORS 746.405 to 746.530, the prevailing party
may be awarded a reasonable amount, to be fixed by the court, as attorney fees.
The amount may be taxed as part of the cost of the action and any appeal
thereon. [1983 c.239 §6]
USE AND
DISCLOSURE OF INSURANCE INFORMATION
     746.600
Definitions for ORS 746.600 to 746.690. As used in ORS 746.600 to 746.690:
     (1)(a) “Adverse underwriting decision”
means any of the following actions with respect to insurance transactions
involving insurance coverage that is individually underwritten:
     (A) A declination of insurance coverage.
     (B) A termination of insurance coverage.
     (C) Failure of an insurance producer to
apply for insurance coverage with a specific insurer that the insurance
producer represents and that is requested by an applicant.
     (D) In the case of life or health
insurance coverage, an offer to insure at higher than standard rates.
     (E) In the case of insurance coverage
other than life or health insurance coverage:
     (i) Placement by an insurer or insurance
producer of a risk with a residual market mechanism, an unauthorized insurer or
an insurer that specializes in substandard risks.
     (ii) The charging of a higher rate on the
basis of information that differs from that which the applicant or policyholder
furnished.
     (iii) An increase in any charge imposed by
the insurer for any personal insurance in connection with the underwriting of
insurance. For purposes of this sub-subparagraph, the imposition of a service
fee is not a charge.
     (b) “Adverse underwriting decision” does
not mean any of the following actions, but the insurer or insurance producer
responsible for the occurrence of the action must nevertheless provide the
applicant or policyholder with the specific reason or reasons for the
occurrence:
     (A) The termination of an individual
policy form on a class or statewide basis.
     (B) A declination of insurance coverage
solely because the coverage is not available on a class or statewide basis.
     (C) The rescission of a policy.
     (2) “Affiliate of” a specified person or “person
affiliated with” a specified person means a person who directly, or indirectly,
through one or more intermediaries, controls, or is controlled by, or is under
common control with, the person specified.
     (3) “Applicant” means a person who seeks
to contract for insurance coverage, other than a person seeking group insurance
coverage that is not individually underwritten.
     (4) “Consumer” means an individual, or the
personal representative of the individual, who seeks to obtain, obtains or has
obtained one or more insurance products or services from a licensee that are to
be used primarily for personal, family or household purposes, and about whom
the licensee has personal information.
     (5) “Consumer report” means any written,
oral or other communication of information bearing on a natural personÂ’s
creditworthiness, credit standing, credit capacity, character, general
reputation, personal characteristics or mode of living that is used or expected
to be used in connection with an insurance transaction.
     (6) “Consumer reporting agency” means a
person that, for monetary fees or dues, or on a cooperative or nonprofit basis:
     (a) Regularly engages, in whole or in
part, in assembling or preparing consumer reports;
     (b) Obtains information primarily from
sources other than insurers; and
     (c) Furnishes consumer reports to other
persons.
     (7) “Control” means, and the terms “controlled
by” or “under common control with” refer to, the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting securities, by
contract other than a commercial contract for goods or nonmanagement services,
or otherwise, unless the power of the person is the result of a corporate
office held in, or an official position held with, the controlled person.
     (8) “Covered entity” means:
     (a) A health insurer;
     (b) A health care provider that transmits
any health information in electronic form to carry out financial or
administrative activities in connection with a transaction covered by ORS
746.607 or by rules adopted under ORS 746.608; or
     (c) A health care clearinghouse.
     (9) “Credit history” means any written or
other communication of any information by a consumer reporting agency that:
     (a) Bears on a consumer’s
creditworthiness, credit standing or credit capacity; and
     (b) Is used or expected to be used, or
collected in whole or in part, as a factor in determining eligibility, premiums
or rates for personal insurance.
     (10) “Customer” means a consumer who has a
continuing relationship with a licensee under which the licensee provides one
or more insurance products or services to the consumer that are to be used
primarily for personal, family or household purposes.
     (11) “Declination of insurance coverage”
or “decline coverage” means a denial, in whole or in part, by an insurer or
insurance producer of an application for requested insurance coverage.
     (12) “Health care” means care, services or
supplies related to the health of an individual.
     (13) “Health care operations” includes but
is not limited to:
     (a) Quality assessment, accreditation,
auditing and improvement activities;
     (b) Case management and care coordination;
     (c) Reviewing the competence,
qualifications or performance of health care providers or health insurers;
     (d) Underwriting activities;
     (e) Arranging for legal services;
     (f) Business planning;
     (g) Customer services;
     (h) Resolving internal grievances;
     (i) Creating de-identified information;
and
     (j) Fundraising.
     (14) “Health care provider” includes but
is not limited to:
     (a) A psychologist, occupational
therapist, clinical social worker, professional counselor or marriage and
family therapist licensed under ORS chapter 675 or an employee of the
psychologist, occupational therapist, clinical social worker, professional
counselor or marriage and family therapist;
     (b) A physician, podiatric physician and
surgeon, physician assistant or acupuncturist licensed under ORS chapter 677 or
an employee of the physician, podiatric physician and surgeon, physician
assistant or acupuncturist;
     (c) A nurse or nursing home administrator
licensed under ORS chapter 678 or an employee of the nurse or nursing home
administrator;
     (d) A dentist licensed under ORS chapter
679 or an employee of the dentist;
     (e) A dental hygienist or denturist
licensed under ORS chapter 680 or an employee of the dental hygienist or
denturist;
     (f) A speech-language pathologist or
audiologist licensed under ORS chapter 681 or an employee of the
speech-language pathologist or audiologist;
     (g) An emergency medical technician
certified under ORS chapter 682;
     (h) An optometrist licensed under ORS
chapter 683 or an employee of the optometrist;
     (i) A chiropractic physician licensed
under ORS chapter 684 or an employee of the chiropractic physician;
     (j) A naturopathic physician licensed
under ORS chapter 685 or an employee of the naturopathic physician;
     (k) A massage therapist licensed under ORS
687.011 to 687.250 or an employee of the massage therapist;
     (L) A direct entry midwife licensed under
ORS 687.405 to 687.495 or an employee of the direct entry midwife;
     (m) A physical therapist licensed under
ORS 688.010 to 688.201 or an employee of the physical therapist;
     (n) A radiologic technologist licensed
under ORS 688.405 to 688.605 or an employee of the radiologic technologist;
     (o) A respiratory care practitioner
licensed under ORS 688.800 to 688.840 or an employee of the respiratory care
practitioner;
     (p) A pharmacist licensed under ORS
chapter 689 or an employee of the pharmacist;
     (q) A dietitian licensed under ORS 691.405
to 691.585 or an employee of the dietitian;
     (r) A funeral service practitioner
licensed under ORS chapter 692 or an employee of the funeral service
practitioner;
     (s) A health care facility as defined in
ORS 442.015;
     (t) A home health agency as defined in ORS
443.005;
     (u) A hospice program as defined in ORS
443.850;
     (v) A clinical laboratory as defined in
ORS 438.010;
     (w) A pharmacy as defined in ORS 689.005;
     (x) A diabetes self-management program as
defined in ORS 743.694; and
     (y) Any other person or entity that
furnishes, bills for or is paid for health care in the normal course of
business.
     (15) “Health information” means any oral
or written information in any form or medium that:
     (a) Is created or received by a covered
entity, a public health authority, a life insurer, a school, a university or a
health care provider that is not a covered entity; and
     (b) Relates to:
     (A) The past, present or future physical
or mental health or condition of an individual;
     (B) The provision of health care to an
individual; or
     (C) The past, present or future payment
for the provision of health care to an individual.
     (16) “Health insurer” means:
     (a) An insurer who offers:
     (A) A health benefit plan as defined in
ORS 743.730;
     (B) A short term health insurance policy,
the duration of which does not exceed six months including renewals;
     (C) A student health insurance policy;
     (D) A Medicare supplemental policy; or
     (E) A dental only policy.
     (b) The Oregon Medical Insurance Pool
operated by the Oregon Medical Insurance Pool Board under ORS 735.600 to
735.650.
     (17) “Homeowner insurance” means insurance
for residential property consisting of a combination of property insurance and
casualty insurance that provides coverage for the risks of owning or occupying
a dwelling and that is not intended to cover an ownerÂ’s interest in rental
property or commercial exposures.
     (18) “Individual” means a natural person who:
     (a) In the case of life or health
insurance, is a past, present or proposed principal insured or certificate
holder;
     (b) In the case of other kinds of
insurance, is a past, present or proposed named insured or certificate holder;
     (c) Is a past, present or proposed
policyowner;
     (d) Is a past or present applicant;
     (e) Is a past or present claimant; or
     (f) Derived, derives or is proposed to
derive insurance coverage under an insurance policy or certificate that is
subject to ORS 746.600 to 746.690.
     (19) “Individually identifiable health
information” means any oral or written health information that is:
     (a) Created or received by a covered
entity or a health care provider that is not a covered entity; and
     (b) Identifiable to an individual,
including demographic information that identifies the individual, or for which
there is a reasonable basis to believe the information can be used to identify
an individual, and that relates to:
     (A) The past, present or future physical
or mental health or condition of an individual;
     (B) The provision of health care to an
individual; or
     (C) The past, present or future payment
for the provision of health care to an individual.
     (20) “Institutional source” means a person
or governmental entity that provides information about an individual to an
insurer, insurance producer or insurance-support organization, other than:
     (a) An insurance producer;
     (b) The individual who is the subject of
the information; or
     (c) A natural person acting in a personal
capacity rather than in a business or professional capacity.
     (21) “Insurance producer” or “producer”
means a person licensed by the Director of the Department of Consumer and
Business Services as a resident or nonresident insurance producer.
     (22) “Insurance score” means a number or
rating that is derived from an algorithm, computer application, model or other
process that is based in whole or in part on credit history.
     (23)(a) “Insurance-support organization”
means a person who regularly engages, in whole or in part, in assembling or
collecting information about natural persons for the primary purpose of
providing the information to an insurer or insurance producer for insurance
transactions, including:
     (A) The furnishing of consumer reports to
an insurer or insurance producer for use in connection with insurance
transactions; and
     (B) The collection of personal information
from insurers, insurance producers or other insurance-support organizations for
the purpose of detecting or preventing fraud, material misrepresentation or
material nondisclosure in connection with insurance underwriting or insurance
claim activity.
     (b) “Insurance-support organization” does
not mean insurers, insurance producers, governmental institutions or health
care providers.
     (24) “Insurance transaction” means any
transaction that involves insurance primarily for personal, family or household
needs rather than business or professional needs and that entails:
     (a) The determination of an individual’s
eligibility for an insurance coverage, benefit or payment; or
     (b) The servicing of an insurance
application, policy or certificate.
     (25) “Insurer” has the meaning given that
term in ORS 731.106.
     (26) “Investigative consumer report” means
a consumer report, or portion of a consumer report, for which information about
a natural personÂ’s character, general reputation, personal characteristics or
mode of living is obtained through personal interviews with the personÂ’s
neighbors, friends, associates, acquaintances or others who may have knowledge
concerning such items of information.
     (27) “Licensee” means an insurer,
insurance producer or other person authorized or required to be authorized, or
licensed or required to be licensed, pursuant to the Insurance Code.
     (28) “Loss history report” means a report
provided by, or a database maintained by, an insurance-support organization or
consumer reporting agency that contains information regarding the claims
history of the individual property that is the subject of the application for a
homeowner insurance policy or the consumer applying for a homeowner insurance
policy.
     (29) “Nonaffiliated third party” means any
person except:
     (a) An affiliate of a licensee;
     (b) A person that is employed jointly by a
licensee and by a person that is not an affiliate of the licensee; and
     (c) As designated by the director by rule.
     (30) “Payment” includes but is not limited
to:
     (a) Efforts to obtain premiums or
reimbursement;
     (b) Determining eligibility or coverage;
     (c) Billing activities;
     (d) Claims management;
     (e) Reviewing health care to determine
medical necessity;
     (f) Utilization review; and
     (g) Disclosures to consumer reporting
agencies.
     (31)(a) “Personal financial information”
means:
     (A) Information that is identifiable with
an individual, gathered in connection with an insurance transaction from which
judgments can be made about the individualÂ’s character, habits, avocations,
finances, occupations, general reputation, credit or any other personal
characteristics; or
     (B) An individual’s name, address and
policy number or similar form of access code for the individualÂ’s policy.
     (b) “Personal financial information” does
not mean information that a licensee has a reasonable basis to believe is
lawfully made available to the general public from federal, state or local
government records, widely distributed media or disclosures to the public that
are required by federal, state or local law.
     (32) “Personal information” means:
     (a) Personal financial information;
     (b) Individually identifiable health
information; or
     (c) Protected health information.
     (33) “Personal insurance” means the
following types of insurance products or services that are to be used primarily
for personal, family or household purposes:
     (a) Private passenger automobile coverage;
     (b) Homeowner, mobile homeowners,
manufactured homeowners, condominium owners and renters coverage;
     (c) Personal dwelling property coverage;
     (d) Personal liability and theft coverage,
including excess personal liability and theft coverage; and
     (e) Personal inland marine coverage.
     (34) “Personal representative” includes
but is not limited to:
     (a) A person appointed as a guardian under
ORS 125.305, 419B.370, 419C.481 or 419C.555 with authority to make medical and
health care decisions;
     (b) A person appointed as a health care
representative under ORS 127.505 to 127.660 or 127.700 to 127.737 to make
health care decisions or mental health treatment decisions;
     (c) A person appointed as a personal
representative under ORS chapter 113; and
     (d) A person described in ORS 746.611.
     (35) “Policyholder” means a person who:
     (a) In the case of individual policies of
life or health insurance, is a current policyowner;
     (b) In the case of individual policies of
other kinds of insurance, is currently a named insured; or
     (c) In the case of group policies of
insurance under which coverage is individually underwritten, is a current
certificate holder.
     (36) “Pretext interview” means an
interview wherein the interviewer, in an attempt to obtain personal information
about a natural person, does one or more of the following:
     (a) Pretends to be someone the interviewer
is not.
     (b) Pretends to represent a person the
interviewer is not in fact representing.
     (c) Misrepresents the true purpose of the
interview.
     (d) Refuses upon request to identify the
interviewer.
     (37) “Privileged information” means
information that is identifiable with an individual and that:
     (a) Relates to a claim for insurance
benefits or a civil or criminal proceeding involving the individual; and
     (b) Is collected in connection with or in
reasonable anticipation of a claim for insurance benefits or a civil or
criminal proceeding involving the individual.
     (38)(a) “Protected health information”
means individually identifiable health information that is transmitted or
maintained in any form of electronic or other medium by a covered entity.
     (b) “Protected health information” does
not mean individually identifiable health information in:
     (A) Education records covered by the
federal Family Educational Rights and Privacy Act (20 U.S.C. 1232g);
     (B) Records described at 20 U.S.C.
1232g(a)(4)(B)(iv); or
     (C) Employment records held by a covered
entity in its role as employer.
     (39) “Residual market mechanism” means an
association, organization or other entity involved in the insuring of risks
under ORS 735.005 to 735.145, 737.312 or other provisions of the Insurance Code
relating to insurance applicants who are unable to procure insurance through
normal insurance markets.
     (40) “Termination of insurance coverage”
or “termination of an insurance policy” means either a cancellation or a
nonrenewal of an insurance policy, in whole or in part, for any reason other
than the failure of a premium to be paid as required by the policy.
     (41) “Treatment” includes but is not
limited to:
     (a) The provision, coordination or
management of health care; and
     (b) Consultations and referrals between
health care providers. [1981 c.649 §4; 1987 c.490 §50; 2001 c.191 §50; 2001
c.377 §25; 2003 c.87 §6; 2003 c.364 §151; 2003 c.590 §§2,4; 2003 c.599 §§5,7; 2003
c.788 §1a; 2005 c.253 §§6,7; 2005 c.489 §§1,2]
     746.605
Purpose. The purpose of ORS
746.600 to 746.690 is to:
     (1) Establish standards for the
collection, use and disclosure of personal information gathered in connection
with insurance transactions by insurers, insurance producers or
insurance-support organizations;
     (2) Maintain a balance between the need
for personal information by those conducting the business of insurance and the
publicÂ’s need for fairness in insurance information practices, including the
need to minimize intrusiveness;
     (3) Establish a regulatory mechanism to
enable natural persons to ascertain what personal information is being or has
been collected about them in connection with insurance transactions and to have
access to this personal information for the purpose of verifying or disputing
its accuracy;
     (4) Limit the disclosure of personal
information collected in connection with insurance transactions; and
     (5) Enable insurance applicants and
policyholders to obtain the reasons for any adverse underwriting decision. [1981
c.649 §2; 1987 c.490 §51; 2003 c.87 §7; 2003 c.364 §152]
     746.606
Information privacy standards for health insurers. ORS 746.607 and 746.608 establish standards
for health insurers that are subject to the information privacy provisions of
both the federal Health Insurance Portability and Accountability Act of 1996
(P.L. 104-191) and the federal Gramm-Leach-Bliley Act (P.L. 106-102). These
standards address:
     (1) Use and disclosure of personal
information;
     (2) Access of individuals to personal
information;
     (3) Notice of privacy practices for
personal information;
     (4) Amendment of personal information; and
     (5) Accounting of disclosures of personal
information. [2003 c.87 §2]
     746.607
Use and disclosure of personal information. A health insurer:
     (1) May use or disclose personal
information of an individual in a manner that is consistent with an
authorization provided by the individual or a personal representative of the
individual.
     (2) May use or disclose protected health
information of an individual without obtaining an authorization from the
individual or a personal representative of the individual:
     (a) For its own treatment, payment or
health care operations; or
     (b) As otherwise permitted or required by
state or federal law or by order of the court.
     (3) May disclose, subject to any
requirements established by rule under ORS 746.608 and consistent with federal
law, protected health information of an individual without obtaining an
authorization from the individual or a personal representative of the
individual:
     (a) To another covered entity for health
care operations activities of the entity that receives the information if:
     (A) Each entity has or had a relationship
with the individual who is the subject of the protected health information; and
     (B) The protected health information
pertains to the relationship and the disclosure is for the purpose of:
     (i) Health care operations listed in ORS
746.600 (13)(a) or (b); or
     (ii) Health care fraud and abuse detection
or compliance;
     (b) To another covered entity or any other
health care provider for treatment activities of a health care provider; or
     (c) To another covered entity or any other
health care provider for the payment activities of the entity that receives the
information.
     (4) May use or disclose personal financial
information of an individual:
     (a) To perform a business, professional or
insurance function, subject to any requirements established by rule under ORS
746.608 for an authorization by an individual or a personal representative of
an individual; or
     (b) Without obtaining an authorization by
the individual or the personal representative of the individual as otherwise
permitted or required by state or federal law or by order of the court.
     (5) May charge a reasonable, cost-based
fee, provided that the fee includes only the cost of:
     (a) Copying personal information requested
by an individual or a personal representative of the individual, including the
cost of supplies for and labor of copying;
     (b) Postage, when an individual or a
personal representative of the individual has requested that copies of personal
information or an explanation or summary of protected health information be
mailed; or
     (c) Preparing an explanation or summary of
personal information if requested by an individual or a personal representative
of the individual.
     (6) Shall provide adequate notice of the
uses and disclosures of personal information that may be made by the health
insurer and of the individualÂ’s rights and the health insurerÂ’s legal duties
with respect to personal information.
     (7) Shall permit an individual or a
personal representative of an individual to request:
     (a) Access to inspect or obtain a copy of
the individualÂ’s personal financial information or protected health information
that is maintained in a designated record set about the individual; or
     (b) That the health insurer correct, amend
or delete personal information. [2003 c.87 §3]
     746.608
Rules. (1) The Director of
the Department of Consumer and Business Services shall adopt rules implementing
ORS 746.607. In adopting rules under this section, the director shall consider
the information privacy provisions of the federal Health Insurance Portability
and Accountability Act of 1996 (P.L. 104-191) and the federal
Gramm-Leach-Bliley Act (P.L. 106-102).
     (2) The rules adopted under subsection (1)
of this section shall include but are not limited to:
     (a) Permitted uses and disclosures of:
     (A) Personal financial information for
business, professional or insurance purposes; and
     (B) Protected health information for
treatment, payment and health care operations.
     (b) Requirements for notice of privacy
practices for protected health information and notice of information practices
for personal financial information. [2003 c.87 §4]
     746.609
Exemptions for health insurers.
ORS 746.620, 746.630, 746.640, 746.645 and 746.665 do not apply to health
insurers. [2003 c.87 §5]
     746.610
Application of ORS 746.600 to 746.690. (1) Except as otherwise provided in ORS 746.606, 746.607, 746.608 and
746.609, the obligations imposed by ORS 746.600 to 746.690 apply to those
insurers, insurance producers and insurance-support organizations that:
     (a) In the case of life or health
insurance:
     (A) Collect, receive or maintain personal
information, in connection with insurance transactions, that pertains to
natural persons who are residents of this state; or
     (B) Engage in insurance transactions with
applicants, individuals or policyholders who are residents of this state.
     (b) In the case of other kinds of
insurance:
     (A) Collect, receive or maintain personal
information in connection with insurance transactions involving policies or
certificates of insurance delivered, issued for delivery or renewed in this
state; or
     (B) Engage in insurance transactions
involving policies or certificates of insurance delivered, issued for delivery
or renewed in this state.
     (2) The rights granted by ORS 746.600 to
746.690 extend to:
     (a) In the case of life or health
insurance, the following persons who are residents of this state:
     (A) Natural persons who are the subject of
personal information collected, received or maintained in connection with
insurance transactions; and
     (B) Applicants, individuals or
policyholders who engage in or seek to engage in insurance transactions.
     (b) In the case of other kinds of
insurance, the following persons:
     (A) Natural persons who are the subject of
personal information collected, received or maintained in connection with
insurance transactions involving policies or certificates of insurance
delivered, issued for delivery or renewed in this state; and
     (B) Applicants, individuals or
policyholders who engage in or seek to engage in insurance transactions
involving policies or certificates of insurance delivered, issued for delivery
or renewed in this state.
     (3) For purposes of this section, a person
is considered a resident of this state if the personÂ’s last-known mailing
address, as shown in the records of the insurer, insurance producer or
insurance-support organization, is located in this state.
     (4) Notwithstanding subsections (1) and
(2) of this section, ORS 746.600 to 746.690 do not apply to personal
information collected from the public records of a governmental authority and
maintained by an insurer or its representatives for the purpose of insuring the
title to real property located in this state. [1981 c.649 §3; 1987 c.490 §52;
2003 c.87 §8; 2003 c.364 §153]
     746.611
Personal representative of deceased person. If no person has been appointed as a personal representative under ORS
chapter 113 or a person appointed as a personal representative under ORS
chapter 113 has been discharged, the personal representative of a deceased
individual shall be the first of the following persons, in the following order,
who may be located upon reasonable effort by the covered entity and who is
willing to serve as the personal representative:
     (1) A person appointed as guardian under
ORS 125.305, 419B.370, 419C.481 or 419C.555 with authority to make medical and
health care decisions at the time of the individualÂ’s death.
     (2) The individual’s spouse.
     (3) An adult designated in writing by the
persons listed in this section, if no person listed in this section objects to
the designation.
     (4) A majority of the adult children of
the individual who can be located.
     (5) Either parent of the individual or an
individual acting in loco parentis to the individual.
     (6) A majority of the adult siblings of
the individual who can be located.
     (7) Any adult relative or adult friend. [2005
c.253 §5]
     746.612
No right of action. Nothing
in ORS 746.607 may be construed to create a new private right of action against
a health insurer. [2003 c.87 §18a]
     746.615
Pretext interviews prohibited.
An insurer, insurance producer or insurance-support organization may not use or
authorize the use of pretext interviews to obtain personal information in
connection with an insurance transaction. However, a pretext interview may be
undertaken to obtain information from a person or institution that does not
have a generally recognized or statutorily recognized privileged relationship
with the person about whom the information relates, for the purpose of
investigating a claim where, based upon specific information available for
review by the Director of the Department of Consumer and Business Services,
there is a reasonable basis for suspecting criminal activity, fraud, material
misrepresentation or material nondisclosure in connection with the claim. [1981
c.649 §5; 2003 c.87 §9; 2003 c.364 §154]
     746.620
Notice of insurance information practices; rules. (1) A licensee must provide a clear and
conspicuous notice of personal information practices to individuals in
connection with insurance transactions under the circumstances and at the times
as follows:
     (a) Except as provided in this paragraph,
to a consumer who becomes a customer of the licensee, not later than the date
that the licensee establishes a continuing relationship under which the
licensee provides one or more insurance products or services to the consumer
that are to be used primarily for personal, family or household purposes. A
licensee may provide the notice within a reasonable time after the date the
licensee establishes a customer relationship if:
     (A) Establishing the customer relationship
is not at the customerÂ’s election; or
     (B) Providing notice not later than the
date that the licensee establishes a customer relationship would substantially
delay the customerÂ’s transaction and the customer agrees to receive the notice
at a later time.
     (b) To a consumer other than as described
in paragraph (a) of this subsection, before the licensee discloses any personal
information about the consumer pursuant to the requirements of ORS 746.665,
unless the disclosure meets one or more of the conditions specified in ORS
746.665.
     (2) A licensee shall provide a clear and
conspicuous notice to a customer that accurately reflects the privacy policies
and practices not less than annually during the continuation of the
relationship described in subsection (1)(a) of this section. For the purpose of
this subsection, a notice is given annually if it is given at least once in any
period of 12 consecutive months during which the relationship exists. A
licensee may define the period of 12 consecutive months, but the licensee must
apply the period to the customer on a consistent basis.
     (3) The privacy notice required by
subsections (1) and (2) of this section must be in writing and clear and
conspicuous. The notice may be provided in electronic form if the recipient agrees.
In addition to any other personal information the licensee wishes to provide,
the notice shall include the following items of personal information that apply
to the licensee and to the individuals to whom the licensee sends the notice:
     (a) The categories of personal information
that the licensee collects.
     (b) The categories of personal information
that the licensee discloses.
     (c) The categories of affiliates and
nonaffiliated third parties to whom the licensee discloses personal information
other than persons to whom the licensee discloses information under ORS
746.665.
     (d) The categories of personal information
about former customers of the licensee that the licensee discloses and the
categories of affiliates and nonaffiliated third parties to whom the licensee
discloses personal information about the licenseeÂ’s former customers, other
than persons to whom the licensee discloses personal information under ORS
746.665.
     (e) If a licensee discloses personal
information to a nonaffiliated third party under ORS 746.665, a separate
description of the categories of personal information the licensee discloses
and the categories of nonaffiliated third parties with whom the licensee has
contracted.
     (f) An explanation of the individual’s
right under ORS 746.630 to authorize disclosure of personal information,
including the methods by which the individual may exercise that right.
     (g) Any disclosure that the licensee makes
under section 603(d)(2)(A)(iii) of the federal Fair Credit Reporting Act (15
U.S.C. 1681a(d)(2)(A)(iii)) regarding the ability to opt out of disclosures of
personal information among affiliates.
     (h) The policies and practices of the
licensee with respect to protecting the confidentiality and security of
personal information.
     (i) Any disclosure that the licensee makes
under subsection (4) of this section.
     (j) A description of the rights
established under ORS 746.640 and 746.645 and the manner in which such rights
may be exercised.
     (4) If a licensee discloses personal
information as authorized under ORS 746.665, the licensee is not required to
list those exceptions in the privacy notices required by this section. When
describing the categories of parties to whom disclosure is made, the licensee
must state only that the licensee makes disclosures to other affiliated parties
or nonaffiliated third parties, as applicable, as authorized by law.
     (5) In lieu of the notice required in
subsection (3) of this section, the licensee may provide to a consumer an
abbreviated notice, in writing or in electronic form if the consumer agrees,
informing the consumer that:
     (a) Personal information may be collected
from persons other than the consumer proposed for coverage;
     (b) Such information as well as other
personal or privileged information subsequently collected by the licensee may
in certain circumstances be disclosed to third parties without authorization;
     (c) A right of access and correction
exists with respect to all personal information collected; and
     (d) The notice prescribed in subsection
(3) of this section shall be furnished to the consumer upon request.
     (6) The Director of the Department of
Consumer and Business Services by rule may apply the categories of consumer and
customer as defined in ORS 746.600 for the purpose of establishing specific requirements
for notice of personal information practices, authorization for disclosure of
personal information, conditions for disclosure of personal information under
this section and ORS 746.630 and 746.665, and exceptions. The director shall
consider applicable definitions and terms used in the federal
Gramm-Leach-Bliley Act (P.L. 106-102), applicable definitions and requirements
used in the model “Privacy of Consumer Financial and Health Information
Regulation” adopted by the National Association of Insurance Commissioners and
other sources as may be needed so that the terms defined in ORS 746.600 and
applicable to this section and ORS 746.630 and 746.665:
     (a) Facilitate compliance with
requirements in federal law and the laws of other states that establish
protections of nonpublic personal information; and
     (b) Establish separate and discrete
requirements relating to the privacy notice and its contents and delivery for
customers and consumers, so that the requirements provide reasonable notice and
facilitate compliance with requirements in federal law and in the laws of other
states.
     (7) The director shall determine by rule:
     (a) When a privacy notice must be provided
to a certificate holder or beneficiary of a group policy and to a third-party
claimant.
     (b) When the obligation to provide annual
notice ceases.
     (c) Requirements for revision of the
notice by a licensee.
     (8) An insurance producer is not subject
to the requirements of this section when the insurer on whose behalf the
insurance producer acts otherwise complies with the requirements of this
section and the insurance producer does not disclose any personal information
to any person other than the insurer or its affiliate, or as otherwise
authorized by law.
     (9) A licensee may provide a joint notice
from the licensee and one or more of its affiliates or other financial
institutions, as identified in the notice, as long as the notice is accurate
with respect to the licensee and the other institutions. A licensee may also
provide a notice on behalf of a financial institution.
     (10) The obligations imposed by this
section upon a licensee may be satisfied by another licensee authorized to act
on behalf of the first licensee.
     (11) For purposes of this section and ORS
746.630 and 746.665, an individual is not the consumer of a licensee solely
because the individual is covered under a group life insurance policy issued by
the licensee or is a participant or beneficiary of an employee benefit plan
that the licensee administers or sponsors or for which the licensee acts as a
trustee, insurer or fiduciary, if:
     (a) The licensee provides to the
policyholder the initial, annual and revised notices under this section; and
     (b) The licensee does not disclose to a
nonaffiliated third party personal information about the individual other than
as permitted by ORS 746.665.
     (12) When an individual becomes a consumer
of a licensee under subsection (11) of this section, this section and ORS
746.630 and 746.665 apply to the licensee with respect to the individual. [1981
c.649 §6; 2001 c.377 §26; 2003 c.87 §10; 2003 c.364 §155]
     746.625
Marketing and research surveys.
An insurer or insurance producer shall clearly identify those questions that
are designed to obtain personal information solely for marketing or research
purposes from an individual in connection with an insurance transaction. [1981
c.649 §7; 2003 c.87 §11; 2003 c.364 §156]
     746.630
Authorization for disclosure of certain information; forms; revocation. (1) Notwithstanding any other law of this
state, a licensee or insurance-support organization may not use as its
disclosure authorization form in connection with insurance transactions a form
or statement that authorizes the disclosure of personal or privileged
information about an individual to the licensee or insurance-support
organization unless the form or statement is clear and conspicuous, and
contains all of the following:
     (a) The identity of the individual who is
the subject of the personal information.
     (b) A general description of the
categories of personal information to be disclosed.
     (c) General descriptions of the parties to
whom the licensee discloses personal information, the purpose of the disclosure
and how the personal information may be used.
     (d) The signature of the individual who is
the subject of the personal information or the individual who is legally
empowered to grant authority and the date signed.
     (e) Notice of the length of time for which
the authorization is valid, that the individual may revoke the authorization at
any time and the procedure for making a revocation.
     (2) An authorization is not valid for more
than 24 months.
     (3) An individual who is the subject of
personal information may revoke an authorization provided pursuant to this
section at any time, subject to the rights of any individual who acted in
reliance on the authorization prior to notice of the revocation.
     (4) A licensee must retain the
authorization of an individual or a copy thereof in the record of the
individual who is the subject of the personal information.
     (5) A disclosure authorization obtained by
an insurer, insurance producer or insurance-support organization from an
individual prior to January 1, 1983, is considered to be in compliance with
this section. [1981 c.649 §8; 2001 c.377 §27; 2003 c.87 §12; 2003 c.364 §157]
     746.632
Genetic information used for treatment; authorization; disclosure. (1) Notwithstanding ORS 192.537 (3), a
health insurer may retain genetic information of an individual without
obtaining an authorization from the individual or a personal representative of
the individual if the retention is for treatment, payment or health care
operations by the insurer.
     (2) Notwithstanding ORS 192.539 (1), a
health insurer may disclose genetic information of an individual without
obtaining an authorization from the individual or a personal representative of
the individual if the insurer discloses the genetic information in accordance
with ORS 746.607 (3).
     (3) As used in this section, “retain
genetic information” has the meaning given that term in ORS 192.531.
     (4) As used in this section, “health care
operations” does not include underwriting activities.
     (5) Nothing in this section shall be
construed to interfere with or limit the requirements of ORS 746.135. [2007
c.800 §8]
     746.635
Investigative consumer reports.
(1) No insurer, insurance producer or insurance-support organization may
prepare or request an investigative consumer report about an individual in
connection with an insurance transaction involving an application for
insurance, a policy renewal, a policy reinstatement or a change in insurance
benefits unless the insurer or insurance producer informs the individual:
     (a) That the individual may request to be
interviewed in connection with the preparation of the investigative consumer
report; and
     (b) That upon a request pursuant to ORS
746.640, the individual is entitled to receive a copy of the investigative
consumer report.
     (2) If an investigative consumer report is
to be prepared by an insurer or insurance producer, the insurer or insurance
producer shall institute reasonable procedures to conduct a personal interview
requested by the individual.
     (3) If an investigative consumer report is
to be prepared by an insurance-support organization, the insurer or insurance
producer desiring the report shall inform the insurance-support organization
whether a personal interview has been requested by the individual. The
insurance-support organization shall institute reasonable procedures to conduct
such requested interviews. [1981 c.649 §9; 2003 c.364 §158]
     746.640
Access to recorded personal information. (1) If any individual, after proper identification, submits a written
request to an insurer, insurance producer or insurance-support organization for
access to recorded personal information about the individual that is reasonably
described by the individual and reasonably locatable and retrievable by the
insurer, insurance producer or insurance-support organization, the insurer,
insurance producer or insurance-support organization within 30 business days
from the date the request is received shall:
     (a) Inform the individual of the nature
and substance of the recorded personal information in writing, by telephone or
by other oral communication, whichever the insurer, insurance producer or insurance-support
organization prefers;
     (b) Permit the individual to see and copy,
in person, the recorded personal information or to obtain a copy of the
recorded personal information by mail, whichever the individual prefers, unless
the recorded personal information is in coded form, in which case an accurate
translation in plain language shall be provided in writing;
     (c) Disclose to the individual the
identity, if recorded, of the persons to whom the insurer, insurance producer
or insurance-support organization has disclosed the recorded personal
information within two years prior to the request, and if such identity is not
recorded, the names of the insurers, insurance producers, insurance-support
organizations and other persons to whom such information is normally disclosed;
and
     (d) Provide the individual with a summary
of the procedures by which the individual may request correction, amendment or
deletion of recorded personal information.
     (2) Any personal information provided
pursuant to this section must identify the source of the information if the
source is an institutional source.
     (3) If an individual requests individually
identifiable health information supplied by a health care provider, the
insurer, insurance producer or insurance-support organization shall provide the
information, including the identity of the health care provider either directly
to the individual or to a health care provider designated by the individual and
licensed to provide health care with respect to the condition to which the
information relates, whichever the insurer, insurance producer or
insurance-support organization prefers. If the insurer, insurance producer or
insurance-support organization elects to disclose the information to a health
care provider designated by the individual, the insurer, insurance producer or
insurance-support organization shall notify the individual, at the time of the
disclosure, that the insurer, insurance producer or insurance-support
organization has provided the information to the health care provider.
     (4) Except for personal information
provided under ORS 746.650, an insurer, insurance producer or insurance-support
organization may charge a reasonable fee to cover the costs incurred in
providing a copy of recorded personal information to an individual.
     (5) The obligations imposed by this
section upon an insurer or insurance producer may be satisfied by another
insurer or insurance producer authorized to act on its behalf. With respect to
the copying and disclosure of recorded personal information pursuant to a
request under this section, an insurer, insurance producer or insurance-support
organization may make arrangements with an insurance-support organization or a
consumer reporting agency to copy and disclose recorded personal information on
its behalf.
     (6) The rights granted to individuals by
this section shall extend to all natural persons to the extent personal
information about them is collected and maintained by an insurer, insurance
producer or insurance-support organization in connection with an insurance
transaction. The rights granted to all natural persons by this subsection shall
not extend to personal information about them that relates to and is collected
in connection with or in reasonable anticipation of a claim or a civil or
criminal proceeding involving them.
     (7) For purposes of this section, the term
“insurance-support organization” does not include “consumer reporting agency.” [1981
c.649 §10; 2003 c.87 §13; 2003 c.364 §159a]
     746.645
Correction, amendment or deletion of recorded personal information. (1) Within 30 business days from the date of
receipt of a written request from an individual to correct, amend or delete any
recorded personal information about the individual within its possession, an
insurer, insurance producer or insurance-support organization shall either:
     (a) Correct, amend or delete the portion
of the recorded personal information in dispute; or
     (b) Notify the individual of:
     (A) Its refusal to make the correction,
amendment or deletion;
     (B) The reasons for the refusal; and
     (C) The individual’s right to file a
statement as provided in subsection (3) of this section.
     (2) If the insurer, insurance producer or
insurance-support organization corrects, amends or deletes recorded personal
information in accordance with subsection (1) of this section, the insurer,
insurance producer or insurance-support organization shall so notify the
individual in writing and furnish the correction, amendment or fact of deletion
to:
     (a) Each person specifically designated by
the individual who may have, within the preceding two years, received the
recorded personal information;
     (b) Each insurance-support organization
whose primary source of personal information is insurers, if the
insurance-support organization has systematically received recorded personal
information from the insurer within the preceding seven years. However, the
correction, amendment or fact of deletion need not be furnished if the
insurance-support organization no longer maintains recorded personal information
about the individual; and
     (c) Each insurance-support organization
that furnished the recorded personal information that has been corrected,
amended or deleted.
     (3) Whenever an individual disagrees with
an insurerÂ’s, insurance producerÂ’s or insurance-support organizationÂ’s refusal
to correct, amend or delete recorded personal information, the individual shall
be permitted to file with the insurer, insurance producer or insurance-support
organization:
     (a) A concise statement setting forth what
the individual thinks is the correct, relevant or fair information; and
     (b) A concise statement of the reasons why
the individual disagrees with the insurerÂ’s, insurance producerÂ’s or
insurance-support organizationÂ’s refusal to correct, amend or delete recorded
personal information.
     (4) In the event an individual files
either or both of the statements described in subsection (3) of this section,
the insurer, insurance producer or insurance-support organization shall:
     (a) File the statements with the disputed
personal information and provide a means by which anyone reviewing the disputed
personal information will be made aware of the individualÂ’s statements and have
access to them;
     (b) In any subsequent disclosure by the
insurer, insurance producer or insurance-support organization of the recorded
personal information that is the subject of the disagreement, clearly identify
the matter or matters in dispute and provide the individualÂ’s statements along
with the recorded personal information being disclosed; and
     (c) Furnish the statements to the persons
and in the manner specified in subsection (2) of this section.
     (5) The rights granted to individuals by
this section shall extend to all natural persons to the extent information
about them is collected and maintained by an insurer, insurance producer or
insurance-support organization in connection with an insurance transaction. The
rights granted to all natural persons by this subsection shall not extend to
information about them that relates to and is collected in connection with or
in reasonable anticipation of a claim or a civil or criminal proceeding
involving them.
     (6) For purposes of this section, the term
“insurance-support organization” does not include “consumer reporting agency.” [1981
c.649 §11; 2003 c.364 §160]
     746.650
Reasons for adverse underwriting decisions. (1) In the event of an adverse underwriting decision, the insurer or
insurance producer responsible for the decision must:
     (a) Either provide the consumer proposed
for coverage with the specific reason or reasons for the adverse underwriting
decision in writing or advise the consumer that upon written request the
consumer may receive the specific reason or reasons in writing; and
     (b) Provide the consumer proposed for
coverage with a summary of the rights established under subsection (2) of this
section and ORS 746.640 and 746.645.
     (2) Upon receipt of a written request
within 90 business days from the date of the mailing of notice or other
communication of an adverse underwriting decision to a consumer proposed for
coverage, the insurer or insurance producer shall furnish to the consumer
within 21 business days from the date of receipt of the written request:
     (a) The specific reason or reasons for the
adverse underwriting decision, in writing, if this information was not
initially furnished in writing pursuant to subsection (1) of this section;
     (b) The specific items of personal
information and privileged information that support these reasons, subject to
the following:
     (A) The insurer or insurance producer is
not required to furnish specific items of privileged information if the insurer
or insurance producer has a reasonable suspicion, based upon specific
information available for review by the Director of the Department of Consumer
and Business Services, that the consumer proposed for coverage has engaged in
criminal activity, fraud, material misrepresentation or material nondisclosure;
and
     (B) Specific items of individually
identifiable health information supplied by a health care provider shall be
disclosed either directly to the consumer about whom the information relates or
to a health care provider designated by the consumer and licensed to provide
health care with respect to the condition to which the information relates,
whichever the insurer or insurance producer prefers; and
     (c) The names and addresses of the
institutional sources that supplied the specific items of information described
in paragraph (b) of this subsection. However, the identity of any health care
provider must be disclosed either directly to the consumer or to the designated
health care provider, whichever the insurer or insurance producer prefers.
     (3) The obligations imposed by this
section upon an insurer or insurance producer may be satisfied by another insurer
or insurance producer authorized to act on its behalf.
     (4) When an adverse underwriting decision
results solely from an oral request or inquiry, the explanation of reasons and
summary of rights required by subsection (1) of this section may be given
orally.
     (5) Notwithstanding subsection (1) of this
section, when an adverse underwriting decision is based in whole or in part on
credit history or insurance score, the insurer or insurance producer
responsible for the decision must provide the consumer proposed for coverage
with the specific reason or reasons for the adverse underwriting decision in
writing. The notice must include the following:
     (a) A summary of no more than four of the
most significant credit reasons for the adverse underwriting decision, listed
in decreasing order of importance, that clearly identifies the specific credit
history or insurance score used to make the adverse underwriting decision. An
insurer or insurance producer may not use “poor credit history” or a similar
phrase as a reason for an adverse underwriting decision.
     (b) The name, address and telephone
number, including a toll-free telephone number, of the consumer reporting
agency that provided the information for the consumer report.
     (c) A statement that the consumer reporting
agency used by the insurer or insurance producer to obtain the credit history
of the consumer did not make the adverse underwriting decision and is unable to
provide the consumer with specific reasons why the insurer or insurance
producer made an adverse underwriting decision.
     (d) Information on the right of the
consumer:
     (A) To obtain a free copy of the consumer’s
consumer report from the consumer reporting agency described in paragraph (b)
of this subsection, including the deadline, if any, for obtaining a copy; and
     (B) To dispute the accuracy or
completeness of any information in a consumer report furnished by the consumer
reporting agency.
     (6) Notwithstanding subsection (1) of this
section, an insurer or insurance producer responsible for an adverse
underwriting decision that is based in whole or in part on credit history or
insurance score must provide the notice required by subsection (5) of this
section only when the insurer or insurance producer makes the initial adverse
underwriting decision regarding a consumer.
     (7) Notwithstanding subsection (1) of this
section, when an adverse underwriting decision relating to homeowner insurance
is based in whole or in part on a loss history report, the insurer or insurance
producer responsible for the decision must provide the consumer proposed for
coverage with the specific reason or reasons for the adverse underwriting
decision in writing. The notice must include the following:
     (a) A description of a specific claim or
claims that are the basis for the specific loss history report used to make the
adverse underwriting decision.
     (b) The name, address and telephone
number, including a toll-free telephone number, of the consumer reporting
agency that provided the information for the loss history report.
     (c) A statement that the consumer
reporting agency used by the insurer or insurance producer to obtain the loss
history report of the consumer did not make the adverse underwriting decision
and is unable to provide the consumer with specific reasons why the insurer or
insurance producer made an adverse underwriting decision.
     (d) Information on the right of the
consumer:
     (A) To obtain a free copy of the consumer’s
loss history report from the consumer reporting agency described in paragraph
(b) of this subsection, including the deadline, if any, for obtaining a copy;
and
     (B) To dispute the accuracy or
completeness of any information in a loss history report furnished by the
consumer reporting agency.
     (8) When an adverse underwriting decision
relating to homeowner insurance is based in part on credit history and in part
on a loss history report, the insurer or insurance producer responsible for the
adverse underwriting decision may provide the notices required by subsections
(5) and (7) of this section in a single notice. [1981 c.649 §12; 2003 c.87 §15;
2003 c.364 §161; 2003 c.788 §2a; 2005 c.489 §7]
     746.655
Information concerning previous adverse underwriting decisions. No insurer, insurance producer or
insurance-support organization may seek information in connection with an
insurance transaction concerning any previous adverse underwriting decision
experienced by an individual, or any previous insurance coverage obtained by an
individual through a residual market mechanism, unless the inquiry also requests
the reasons for any previous adverse underwriting decision or the reasons why
insurance coverage was previously obtained through a residual market mechanism.
[1981 c.649 §13; 2003 c.364 §162]
     746.660
Basing adverse underwriting decision on previous adverse decision. No insurer or insurance producer may base an
adverse underwriting decision in whole or in part on:
     (1) The fact of a previous adverse
underwriting decision or on the fact that an individual previously obtained
insurance coverage through a residual market mechanism. However, an insurer or
insurance producer may base an adverse underwriting decision on further
information obtained from an insurer or insurance producer responsible for a
previous adverse underwriting decision.
     (2) Personal information received from an
insurance-support organization whose primary source of information is insurers.
However, an insurer or insurance producer may base an adverse underwriting
decision on further personal information obtained as the result of information
received from such an insurance-support organization. [1981 c.649 §14; 2003
c.364 §163]
     746.661
Use of credit history or insurance score. (1) An insurer that issues personal insurance policies in this state:
     (a) May not cancel or nonrenew personal
insurance that has been in effect for more than 60 days based in whole or in
part on a consumerÂ’s credit history or insurance score.
     (b) May use a consumer’s credit history to
decline coverage of personal insurance in the initial underwriting decision
only in combination with other substantive underwriting factors. An offer of
placement with an affiliate insurer does not constitute a declination of
insurance coverage.
     (c) May not use the following types of
credit history to decline coverage of personal insurance, calculate an
insurance score or determine personal insurance premiums or rates:
     (A) The absence of credit history or the
inability to determine the consumerÂ’s credit history, if the insurer has
received accurate and complete information from the consumer, unless the
insurer does one of the following:
     (i) If the insurer presents information
that the absence of credit history or the inability to determine the consumerÂ’s
credit history relates to the risk for the insurer, uses the absence of a credit
history or inability to determine a consumerÂ’s credit history as allowed by
rules adopted by the Director of the Department of Consumer and Business
Services;
     (ii) Treats the consumer as if the
applicant or insured has neutral credit history, as defined by the insurer; or
     (iii) Excludes the use of credit
information as a factor and uses only other underwriting criteria.
     (B) Credit inquiries not initiated by the
consumer or inquiries requested by the consumer for the consumerÂ’s own credit
information.
     (C) Inquiries identified on a consumer’s
credit report relating to insurance coverage.
     (D) Multiple lender inquiries identified
as being from the home mortgage industry and made within 30 days of one
another, unless only one inquiry is considered.
     (E) Multiple lender inquiries identified
as being from the automobile lending industry and made within 30 days of one
another, unless only one inquiry is considered.
     (F) The consumer’s total available line of
credit. However, an insurer may consider the total amount of outstanding debt
in relation to the total available line of credit.
     (d) May not rerate an existing policy or
rerate a customer based on a customerÂ’s credit history or the credit history
component of a customerÂ’s insurance score when the marital status of the
customer changes due to death or divorce.
     (2) If an insurer assigns a consumer to a
less favorable rating category for a policy of personal insurance based in
whole or in part on the consumerÂ’s credit history or insurance score, the consumer
may request, no more than once annually, that the insurer rerate the consumer
according to the standards that the insurer would apply to the consumer if the
consumer were initially applying for the same personal insurance.
     (3) If an insurer uses disputed credit
history to determine eligibility for coverage of personal insurance and places
a consumer with an affiliate that charges higher premiums or offers less
favorable policy terms:
     (a) The insurer shall rerate the policy
retroactive to the effective date of the current policy term; and
     (b) The policy, as reissued or rerated,
shall provide the premiums and policy terms for which the consumer would have
been eligible if accurate credit history had been used to determine
eligibility.
     (4) If an insurer charges higher premiums
due to disputed credit history, the insurer shall rerate the policy retroactive
to the effective date of the current policy term. As rerated, the insurer shall
charge the consumer the same premiums the consumer would have been charged if
accurate credit history had been used to calculate an insurance score.
     (5) Subsections (3) and (4) of this
section apply only if the consumer resolves the credit dispute under the
process set forth in the federal Fair Credit Reporting Act (15 U.S.C. 1681) and
notifies the insurer in writing that the dispute has been resolved.
     (6) Except as provided in subsections (2),
(3) and (4) of this section, an insurer may only use rating factors other than
credit history or insurance score to rerate the policy at renewal. [2003 c.788 §4;
2005 c.464 §1]
     746.662
Filing of insurance scoring models. (1) An insurer may not use credit history to determine personal
insurance eligibility, premiums or rates for coverage unless the insurer has
filed the insurance scoring models used by the insurer with the Director of the
Department of Consumer and Business Services. An insurance scoring model
includes all attributes and factors used in the calculation of an insurance
score.
     (2) Insurance scoring models filed with
the director under subsection (1) of this section are confidential and not
subject to disclosure under ORS 192.410 to 192.505. [2003 c.788 §5]
     746.663
Cancellation or nonrenewal of personal insurance policies based on credit history
or insurance score. (1) An
insurer that issues personal insurance policies in this state may not cancel or
nonrenew a policy of personal insurance based in whole or in part on a consumerÂ’s
credit history or insurance score.
     (2) If, prior to January 1, 2004, an
insurer has assigned a consumer to a less favorable rating category for a
policy of personal insurance based in whole or in part on the consumerÂ’s credit
history or insurance score, the consumer may request, no more than once
annually, that the insurer rerate the consumer according to the standards that
the insurer would apply to the consumer if the consumer were initially applying
for the same personal insurance on or after January 1, 2004.
     (3) An insurer that receives a request
under subsection (2) of this section may not consider that the consumer was
assigned to a less favorable rate category when the insurer rerates the
consumer.
     (4) If an insurer uses disputed credit
history to determine eligibility for coverage of personal insurance and places
a consumer with an affiliate that charges higher premiums or offers less
favorable policy terms:
     (a) The insurer shall rerate the policy
retroactive to the effective date of the current policy term; and
     (b) The policy, as reissued or rerated,
shall provide the premiums and policy terms for which the consumer would have
been eligible if accurate credit history had been used to determine
eligibility.
     (5) If an insurer charges higher premiums
due to disputed credit history, the insurer shall rerate the policy retroactive
to the effective date of the current policy term. As rerated, the insurer shall
charge the consumer the same premiums the consumer would have been charged if
accurate credit history had been used to calculate an insurance score.
     (6) Subsections (4) and (5) of this
section apply only if the consumer resolves the credit dispute under the
process set forth in the federal Fair Credit Reporting Act (15 U.S.C. 1681) and
notifies the insurer in writing that the dispute has been resolved.
     (7) Except as provided in subsections (2),
(4) and (5) of this section, an insurer may only use rating factors other than
credit history or insurance score to rerate the policy at renewal. [2003 c.788 §7]
     746.665
Limitations and conditions on disclosure of certain information. (1) A licensee or insurance-support
organization may not disclose any personal or privileged information about an
individual collected or received in connection with an insurance transaction
unless the disclosure meets one or more of the following conditions:
     (a) Is with the written authorization of
the individual, and:
     (A) If the authorization is submitted by
another licensee or insurance-support organization, the authorization meets the
requirements of ORS 746.630; or
     (B) If the authorization is submitted by a
person other than a licensee or insurance-support organization, the
authorization is:
     (i) Dated;
     (ii) Signed by the individual; and
     (iii) Obtained one year or less prior to
the date a disclosure is sought pursuant to this subsection.
     (b) Is to a person other than a licensee
or insurance-support organization, if the disclosure is reasonably necessary to
enable the person to:
     (A) Perform a business, professional or
insurance function for the disclosing licensee or insurance-support
organization and the person agrees not to disclose the information further
without the individualÂ’s written authorization unless the further disclosure:
     (i) Would otherwise be permitted by this
section if made by a licensee or insurance-support organization; or
     (ii) Is reasonably necessary for the
person to perform its function for the disclosing licensee or insurance-support
organization; or
     (B) Provide information to the disclosing
licensee or insurance-support organization for the purpose of:
     (i) Determining an individual’s
eligibility for an insurance benefit or payment; or
     (ii) Detecting or preventing criminal
activity, fraud, material misrepresentation or material nondisclosure in
connection with an insurance transaction.
     (c) Is to a licensee, insurance-support
organization or self-insurer, if the information disclosed is limited to that
which is reasonably necessary:
     (A) To detect or prevent criminal
activity, fraud, material misrepresentation or material nondisclosure in
connection with insurance transactions; or
     (B) For either the disclosing or receiving
licensee or insurance-support organization to perform its function in
connection with an insurance transaction involving the individual.
     (d) Is to a health care provider and
discloses only such information as is reasonably necessary to accomplish one or
more of the following purposes:
     (A) Verifying insurance coverage or
benefits.
     (B) Informing an individual of a medical
problem of which the individual may not be aware.
     (C) Conducting an operations or services audit.
     (e) Is to an insurance regulatory
authority.
     (f) Is to a law enforcement or other
governmental authority:
     (A) To protect the interests of the
licensee or insurance-support organization in preventing or prosecuting the
perpetration of fraud upon it; or
     (B) If the licensee or insurance-support
organization reasonably believes that illegal activities have been conducted by
the individual.
     (g) Is otherwise permitted or required by
law.
     (h) Is in response to a facially valid
administrative or judicial order, including a search warrant or subpoena.
     (i) Is made for the purpose of conducting
actuarial or research studies, if:
     (A) No individual may be identified in any
resulting actuarial or research report;
     (B) Materials allowing the individual to
be identified are returned or destroyed as soon as they are no longer needed;
and
     (C) The actuarial or research organization
agrees not to disclose the information unless the disclosure would otherwise be
permitted by this section if made by a licensee or insurance-support
organization.
     (j) Is to a party or a representative of a
party to a proposed or consummated sale, transfer, merger or consolidation of
all or part of the business of the licensee or insurance-support organization,
if:
     (A) Prior to the consummation of the sale,
transfer, merger or consolidation only such information is disclosed as is
reasonably necessary to enable the recipient to make business decisions about
the purchase, transfer, merger or consolidation; and
     (B) The recipient agrees not to disclose
the information unless the disclosure would otherwise be permitted by this
section if made by a licensee or insurance-support organization.
     (k) Is to a nonaffiliated third party
whose only use of the information will be in connection with the marketing of a
product or service, if all of the following conditions are met:
     (A) No privileged information or personal
information is disclosed, and no classification derived from such information
may be disclosed.
     (B) The individual must have been given
the notice described in ORS 746.620 and an opportunity to indicate that the
individual does not want personal information disclosed for marketing purposes
and must have given no indication that the individual does not want the
information disclosed. The individual need not have been given the opportunity
described in this subparagraph if the disclosure is made pursuant to a joint
marketing agreement. As used in this subparagraph, “joint marketing agreement”
means a formal written contract pursuant to which an insurer jointly offers,
endorses or sponsors a financial product or service with a financial
institution. When the opportunity is required, the statement that offers the
opportunity must state that the insurer may disclose personal information to nonaffiliates
and that the individual has a right to indicate that the individual does not
want personal information disclosed for marketing purposes, and must describe
the method for exercising that right. The statement must be in writing but may
be in an electronic form if the individual agrees. The individual who is given
the opportunity must be provided a reasonable time to exercise the opportunity.
An individual may exercise the opportunity at any time. A statement by an
individual barring disclosure of personal information remains effective until
the individual who made the statement revokes the statement in writing or, if
the individual agrees, in electronic form.
     (C) The person receiving the information
must agree not to use it except in connection with the marketing of a product
or service.
     (L) Is to an affiliate whose only use of
the information will be in connection with an audit of the licensee or the
marketing of a financial product or service, and the affiliate agrees not to
disclose the information for any other purpose or to unaffiliated persons. This
paragraph does not apply to the disclosure of individually identifiable health
information for the purpose of marketing a financial product or service.
     (m) Is by a consumer reporting agency, and
the disclosure is to a person other than a licensee.
     (n) Is to a group policyholder for the
purpose of reporting claims experience or conducting an audit of the licenseeÂ’s
operations or services, and the information disclosed is reasonably necessary
for the group policyholder to conduct the review or audit.
     (o) Is to a professional peer review
organization for the purpose of reviewing the service or conduct of a health
care provider.
     (p) Is to a governmental authority for the
purpose of determining the individualÂ’s eligibility for health benefits for
which the governmental authority may be liable.
     (q) Is to a policyholder or certificate
holder for the purpose of providing information regarding the status of an
insurance transaction.
     (2) Personal or privileged information may
be acquired by a group practice prepayment health care service contractor from
providers which contract with the contractor and may be transferred among
providers which contract with the contractor for the purpose of administering plans
offered by the contractor. The information may not be disclosed otherwise by
the contractor except in accordance with ORS 746.600 to 746.690. [1981 c.649 §15;
1987 c.490 §53; 2001 c.377 §28; 2003 c.87 §14]
     746.668
Relationship of ORS 746.620, 746.630 and 746.665 to federal Fair Credit
Reporting Act. Nothing in
ORS 746.620, 746.630 or 746.665 may be construed to modify, limit or supersede
the operation of the federal Fair Credit Reporting Act (15 U.S.C. 1681 et seq.)
and no inference may be drawn on the basis of ORS 746.620, 746.630 or 746.665
regarding whether personal information is transaction information or experience
information under section 603 of the federal Fair Credit Reporting Act (15
U.S.C. 1681 et seq.). [2001 c.377 §28c; 2003 c.87 §16]
     746.670
Investigatory powers. (1)
The Director of the Department of Consumer and Business Services may examine
and investigate into the affairs of any insurer or insurance producer
transacting insurance in this state to determine whether it has been or is
engaged in any conduct in violation of ORS 746.600 to 746.690.
     (2) The director may examine and
investigate into the affairs of any insurance-support organization acting on
behalf of an insurer or insurance producer which either transacts insurance in
this state or transacts insurance outside this state which has an effect on a
person residing in this state, in order to determine whether the
insurance-support organization has been or is engaged in any conduct in
violation of ORS 746.600 to 746.690. [1981 c.649 §16; 1987 c.490 §54; 2003 c.87
§17; 2003 c.364 §164]
     746.675
Service of process on out-of-state insurance-support organizations. For the purpose of ORS 746.600 to 746.690
and 750.055, an insurance-support organization transacting business outside this
state which has an effect on a person residing in this state shall be
considered to have appointed the Director of the Department of Consumer and
Business Services to accept service of process on its behalf. Notice of such
service shall be given forthwith by the director as provided for orders and
notices under ORS 731.248 (3). [1981 c.649 §17; 1987 c.490 §55]
     746.680
Remedies. (1) A person whose
rights granted under ORS 746.607 (7), 746.640, 746.645 or 746.650 are violated
may apply to the circuit court for the county in which the person resides, or
any other court of competent jurisdiction, for appropriate equitable relief if
an insurer, insurance producer or insurance-support organization fails to
comply with ORS 746.607 (7), 746.640, 746.645 or 746.650.
     (2) A licensee or insurance-support
organization that discloses information in violation of ORS 746.665 or a health
insurer that uses or discloses information in violation of ORS 746.607 (1) or
(2) is liable for damages sustained by the individual about whom the
information relates. However, an individual is not entitled to a monetary award
that exceeds the actual damages sustained by the individual as a result of the
violation of ORS 746.607 (1) or (2) or 746.665.
     (3) In any action brought pursuant to this
section, the court may award the cost of the action and reasonable attorney
fees to the prevailing party.
     (4) An action under this section must be
brought within two years from the date the alleged violation is or should have
been discovered.
     (5) Except as specifically provided in
this section, there shall be no remedy or recovery available to individuals, in
law or in equity, for occurrences constituting a violation of any provision of
ORS 746.600 to 746.690. [1981 c.649 §18; 1987 c.490 §56; 1995 c.618 §131; 2001
c.377 §28a; 2003 c.87 §18; 2003 c.364 §165a]
     746.685
Liability for disclosure of information. No cause of action in the nature of defamation, invasion of privacy or
negligence shall arise against any person for disclosing personal or privileged
information in accordance with ORS 746.600 to 746.690 and 750.055, nor shall
such a cause of action arise against any person for furnishing personal or
privileged information to an insurer, insurance producer or insurance-support
organization. However, this section shall provide no immunity for disclosing or
furnishing false information with malice or willful intent to injure any
person. [1981 c.649 §19; 1987 c.490 §57; 2003 c.364 §166]
     746.686
Use of prior claim or inquiry in determination to issue or renew homeowner
insurance policy; rules. (1)
When a consumer applies for a homeowner insurance policy, an insurer may not
use:
     (a) A prior claim of the consumer or a
claim relating to the property to be insured, when the date of loss of the
claim is more than five years preceding the date of application, to determine
whether to issue the policy or to determine rates or other terms and conditions
of the policy. This paragraph does not apply when the insurer uses claim
experience of the consumer or of the property to provide a discount to the
consumer.
     (b) The first claim that the consumer made
on a homeowner insurance policy within the five-year period immediately
preceding the date of application to determine whether to issue the policy.
     (c) A prior claim relating to the property
to be insured that occurred prior to purchase of the property by the consumer,
when the consumer demonstrates to the insurerÂ’s satisfaction that the risk
associated with damage resulting from the accident or occurrence that gave rise
to the prior claim has been mitigated, to determine whether to issue the policy
or to determine rates or other terms and conditions of the policy. For purposes
of this paragraph, a risk is mitigated if the consumer has fully restored the
damaged property and has repaired, replaced, restored or eliminated the
condition, system or use of the property that was the underlying cause of the
loss.
     (2) When renewing a homeowner insurance
policy, an insurer may not use:
     (a) A prior claim of the consumer or a
claim relating to the property to be insured, when the date of loss of the
claim is more than five years before the upcoming renewal date, to determine
whether to renew the policy or to determine rates or other terms and conditions
of the policy. This paragraph does not apply when the insurer uses claim
experience of the consumer or of the property to provide a discount to the
consumer at renewal.
     (b) The first claim of the consumer made
within the five-year period immediately preceding the upcoming renewal date to
determine whether to renew the policy.
     (3) An insurer or insurance producer may
not use an inquiry made by any means by the consumer to the insurer or to an
insurance producer regarding the terms, conditions or coverage of an insurance
policy, including an inquiry about an actual loss or claim filing process, to
determine whether to issue or renew a policy or to determine rates or other
terms and conditions of a policy if the consumer is not making a claim as part
of the inquiry. An insurer or insurance producer may verify whether the
consumer is making a claim as part of the inquiry. If the consumer affirms that
the inquiry is not a claim, the insurer or insurance producer may rely on the
affirmation to rebut a later assertion to the contrary. This subsection does
not apply to an inquiry by a consumer relating to the possibility of a third
party claim against the consumer. The Director of the Department of Consumer
and Business Services may adopt rules establishing procedures to implement this
subsection.
     (4) This section does not prohibit an
insurer from taking any underwriting or rating action that is:
     (a) Based on the known condition or use of
the property;
     (b) Based on fraudulent acts of the
consumer; or
     (c) Otherwise allowed by law. [2005 c.489 §4]
     746.687
Cancellation of homeowner insurance policy. (1) Except as provided in subsection (6) of this section, an insurer
may cancel a homeowner insurance policy before the expiration of the policy
only for one or more of the following reasons:
     (a) Nonpayment of premium;
     (b) Fraud or material misrepresentation
affecting the policy or in the presentation of a claim under the policy;
     (c) Violation of any of the terms and
conditions of the policy;
     (d) Substantial increase in the risk of loss
after insurance coverage has been issued or renewed, including but not limited
to an increase in exposure due to rules, legislation or court decision; or
     (e) Determination by the Director of the
Department of Consumer and Business Services that the continuation of a line of
insurance or class of business to which the policy belongs will jeopardize an
insurerÂ’s solvency or place the insurer in violation of the insurance laws of
Oregon or any other state, whether because of a loss or decrease in reinsurance
covering the risk or other reason determined by the director.
     (2) The insurer shall give the
policyholder written notice of the cancellation, including the effective date
of the cancellation and the reasons for the cancellation.
     (3) The insurer must mail or deliver a
notice of cancellation to the policyholder at the address shown in the policy:
     (a) At least 10 days prior to the
effective date of cancellation, if the cancellation is for the reason described
in subsection (1)(a) or (b) of this section.
     (b) At least 30 days prior to the
effective date of cancellation, if the cancellation is for the reason described
in subsection (1)(c), (d) or (e) of this section.
     (4) An insurer shall mail or deliver to a
policyholder, at the address shown in the policy, a notice of renewal or
nonrenewal of a homeowner insurance policy at least 30 days prior to the
expiration of the policy period. This subsection does not apply when the policy
is in lapse status under the terms of the policy.
     (5) Proof of mailing notice of
cancellation or nonrenewal to the policyholder at the address shown in the
policy is sufficient proof of notice under this section.
     (6) This section does not apply to a
homeowner insurance policy that has been in effect fewer than 60 days at the
time the notice of cancellation is mailed or delivered by the insurer unless it
is a renewal policy. An insurer may not use the fact that a claim was filed on
the policy within the 60-day period as a basis for canceling the policy within
the 60-day period, for increasing the premium rate or for altering the terms of
the policy during the current policy term. An insurer may, within the 60-day
period, use any other information consistent with the insurerÂ’s rating or
underwriting program, including but not limited to, conditions or uses of the
property discovered by the insurer, as a basis for cancellation or for offering
to continue coverage at an increased rate or on different terms. At renewal of
the policy, the insurer may treat a claim that occurred within the 60-day
period the same as any other claim occurring during the policy period for the
purposes of rating, nonrenewing and altering the terms of the policy. [2005
c.489 §5]
     746.688
Use of loss history reports; notice to consumer. (1) An insurer or insurance producer shall
notify a consumer that the insurer or insurance producer will request a loss
history report relating to the consumer or property to be insured before the
insurer or insurance producer may obtain the report. The notice may be oral, in
writing or in the same medium as the medium in which previous communication
between the consumer and the insurer or insurance producer has been conducted.
     (2) An insurance producer may provide a
single notice under subsection (1) of this section to a consumer if the
insurance producer makes loss history inquiries of one or more insurers in
response to a request by the consumer relating to a homeowner insurance policy.
     (3) An insurer that uses loss history
reports for underwriting or rating homeowner insurance shall instruct the
insurerÂ’s insurance producers that an insurance producer must notify the
consumer that the insurance producer has requested a loss history report before
the insurance producer may obtain the report.
     (4) An insurer that uses a loss history
report of a consumer when considering an application for a homeowner insurance
policy shall notify the consumer during the application process that the
consumer may request a free copy of the loss history report from the consumer
reporting agency and a written statement describing the insurerÂ’s use of the
report. The notice to the applicant may be in writing or in the same medium as
the medium in which the application is made. The written statement must contain
the following explanations:
     (a) The ways in which the insurer uses
loss history reports;
     (b) How often the insurer reviews a
consumerÂ’s loss history report; and
     (c) The procedures a consumer may use to
obtain additional information. [2005 c.489 §6]
     746.690
Obtaining information under false pretenses prohibited. No person shall knowingly and willfully
obtain information about an individual from an insurer, insurance producer or
insurance-support organization under false pretenses. [1981 c.649 §20; 2003
c.364 §167]
PENALTIES
     746.990 [Repealed by 1967 c.359 §704]
     746.991
Penalties. Violation of ORS
746.280 to 746.292 is a Class D violation. [1977 c.785 §8; 1999 c.1051 §221]
     Note: See note under 746.275.
_______________
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