2011 Oregon Revised Statutes
ORS Volume 14, Chapters 645 - 669
ORS Chapter 646a
646A.588 Restrictions on modification or termination of coverage; notice.

(1) Except as provided in subsections (2) and (3) of this section, the insurer or the supervising entity that has issued a policy of portable electronics insurance to a vendor policyholder may not modify or terminate the terms and conditions of the policy unless the insurer or the supervising entity:

(a) Provides the vendor policyholder and enrolled customers with notice of the modification or termination not less than 60 days prior to the effective date of the modification or termination; and

(b) In the event of a modification only, provides:

(A) The vendor policyholder with a revised policy or endorsement evidencing the modification; and

(B) Each enrolled customer with a revised certificate, endorsement or other evidence of a change in terms and conditions, updated written materials and a summary of the material changes to the terms and conditions of coverage.

(2)(a) An insurer or a supervising entity may terminate an enrolled customer s portable electronics insurance coverage:

(A) Upon discovery of fraud or material misrepresentation made by the enrolled customer in obtaining the coverage or in the presentation of a claim; or

(B) For nonpayment of a premium.

(b) The insurer or the supervising entity must notify the enrolled customer at least 15 days before a termination under this subsection.

(3) An insurer or a supervising entity may immediately terminate an enrolled customer s portable electronics insurance coverage if the enrolled customer ceases to have active wireless service with the vendor policyholder or the enrolled customer exhausts the aggregate limit of liability, and the insurer or the supervising entity sends notice of termination to the enrolled customer within 30 days after the active service ceases or the limit has been exhausted.

(4) A vendor policyholder that has issued portable electronics insurance coverage to an enrolled customer may not terminate the coverage unless the vendor policyholder provides the enrolled customer with notice of the termination not less than 30 days prior to the effective date of the termination.

(5)(a) Notice to a vendor policyholder or enrolled customer that is required under this section may either be sent as an electronic record in accordance with ORS 84.001 to 84.061 and 84.070, or:

(A) In the case of a vendor policyholder, mailed by registered or certified mail or delivered to the vendor policyholder at the vendor policyholder s principal place of business in this state; or

(B) In the case of an enrolled customer, mailed by registered or certified mail to the enrolled customer s last known mailing address.

(b) An insurer, a supervising entity or a vendor policyholder providing notice under this section must maintain proof of providing the notice for a minimum of three years after the termination of the portable electronics insurance coverage. [2011 c.393 6]