2015 Oregon Revised Statutes
Volume : 14 - Trade Practices, Labor and Employment
Chapter 646A - Trade Regulation
Section 646A.588 - Restrictions on modification or termination of coverage; notice; consent to notice.

(1) Except as provided in subsections (2) and (3) of this section, an insurer or a supervising entity that 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 before 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 that is evidence of 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 discovering fraud or a material misrepresentation the enrolled customer made in obtaining the coverage or in presenting 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:

(a) The enrolled customer ceases to have active wireless service with the vendor policyholder; or

(b) 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 enrolled customer exhausts the limit. If the insurer or the supervising entity does not send a timely notice of termination to the enrolled customer, notwithstanding the enrolled customer’s exhaustion of the limit, coverage continues until the insurer or the supervising entity sends the enrolled customer a notice of termination.

(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 before the effective date of the termination. The supervising entity may provide notice under this subsection on the vendor policyholder’s behalf.

(5)(a) Notice or correspondence to a vendor policyholder or enrolled customer that is required under this section, or that is otherwise required by law, 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 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 or delivered to the enrolled customer’s last known mailing address.

(b) An enrolled customer consents to receive a notice or correspondence with respect to a policy of portable electronics insurance by electronic means if, after the insurer, the insurer’s agent or the vendor that sold the portable electronics notifies the enrolled customer that providing an electronic mail address to the insurer, the insurer’s agent or the vendor is consent to receive the notice or correspondence by electronic means, the enrolled customer provides an electronic mail address to the insurer, the insurer’s agent or the vendor.

(c) An insurer, a supervising entity or a vendor policyholder that provides notice or sends correspondence under this section shall maintain proof of providing the notice or sending the correspondence for a minimum of three years after the termination of the portable electronics insurance coverage. Proof of mailing or delivery to the enrolled customer’s last known mailing address or electronic mailing address is sufficient proof of providing the notice or sending the correspondence.

[2011 c.393 §6; 2013 c.97 §1; 2014 c.27 §1]