73rd OREGON LEGISLATIVE ASSEMBLY--2005 Regular Session
Enrolled
House Bill 2719
Sponsored by Representatives ESQUIVEL, GARRARD, SHIELDS, Senator
MORSE; Representatives BROWN, GALIZIO, GILMAN, HUNT, KITTS,
RILEY, SCHAUFLER, WHISNANT
CHAPTER ................
AN ACT
Relating to written notices issued by insurers; creating new
provisions; and amending ORS 742.706.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 742.706 is amended to read:
742.706. (1) If an insurer offers or purports to renew a
commercial liability policy, but on terms less favorable to the
insured or at higher rates, the new terms or rates may take
effect on the renewal date, if the insurer provides the insured,
and the insurance producer if any, { - 30 - } { + 45 + }
days' written notice. If the insurer does not provide such
notice, the insured may cancel the renewal policy within
{ - 30 - } { + 45 + } days after receipt of the notice or
delivery of the renewal policy. Earned premium for the period of
time the renewal policy was in force shall be calculated pro rata
at the lower of the current or previous year's rate. If the
insured accepts the renewal, any premium increase or changes in
terms shall be effective immediately following the prior policy's
expiration date.
(2) Nonrenewal of a commercial liability policy shall not be
effective until at least { - 30 - } { + 45 + } days after the
insured receives a written notice of nonrenewal. If, after an
insurer provides a notice of nonrenewal as described in this
subsection, the insurer extends the policy 90 days or less, an
additional notice of nonrenewal is not required with respect to
the extension.
(3) Subsection (1) of this section does not apply:
(a) If the change is a rate, form or plan filed with the
Director of the Department of Consumer and Business Services and
applicable to the entire line of insurance or class of business
to which the policy belongs; or
(b) To a premium increase based on the altered nature or extent
of the risk insured against.
(4) If a commercial liability policy is issued for a term
longer than one year, and for additional consideration a premium
is guaranteed, the insurer may not refuse to renew the policy or
increase the premium for the term of that policy.
SECTION 2. { + The amendments to ORS 742.706 by section 1 of
this 2005 Act apply to the renewal or nonrenewal of commercial
liability policies made on or after the effective date of this
2005 Act. + }
Enrolled House Bill 2719 (HB 2719-A) Page 1
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Passed by House March 30, 2005
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate May 6, 2005
...........................................................
President of Senate
Enrolled House Bill 2719 (HB 2719-A) Page 2
Received by Governor:
......M.,............., 2005
Approved:
......M.,............., 2005
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2005
...........................................................
Secretary of State
Enrolled House Bill 2719 (HB 2719-A) Page 3