Chapter 210
AN ACT
HB 2751
Relating to liability insurance for
construction contractors; creating new provisions; amending ORS 737.600; and
declaring an emergency.
Be It Enacted by the People of
the State of
SECTION 1. ORS 737.600 is amended to read:
737.600. (1) As used in this section, “fictitious grouping” means a
grouping by way of membership, license, franchise, contract, agreement or any
method other than common ownership, or use and control.
(2) [No insurer shall] An
insurer may not:
(a) Make available,
through any rating plan or form, property, inland marine, casualty or surety
insurance, or any combination thereof, at a preferred rate or premium to any
person based upon a fictitious grouping of that person.
(b) Write or deliver a
form, plan or policy of insurance covering a grouping or combination of persons
or risks, any of which are within this state, at a preferred rate or form other
than that offered to the public generally and persons not in the group, unless
the form, plan or policy and the rates or premiums to be charged therefor have
been approved by the Director of the Department of Consumer and Business
Services. The director shall not approve any form, plan or policy, or the rates
therefor, that would constitute a violation of paragraph (a) of this
subsection.
(3) [Nothing in this section applies] This section does not apply to:
(a) [To] Policies of life or health
insurance;
(b) [To] Insurance for public bodies as
defined in ORS 30.260;
(c) [To] Insurance for employers subject to
ORS chapter 656 who are primarily engaged in farming. Any contract negotiated
by an exempt farming group, including the rate, shall be restricted to members
of the group;
(d) [To] Property and casualty insurance
policies for personal, family or household purposes,
and not for commercial or business purposes, under the following conditions:
(A) If the policies are
offered to members of an association, including a labor union, which has had an
active existence for at least one year, has a constitution and bylaws and is
maintained in good faith for purposes other than that of obtaining insurance;
(B) If the policies are
based on premiums that are adequate to support coverage of the group without
subsidy by other rate payers; and
(C) If the insurer does
not unfairly discriminate against holders of other insurance policies;
(e) [To] Liability and property insurance
required under ORS 825.160 for persons who apply for or who have received
authority issued by the Department of Transportation under ORS chapter 825 to
transport logs, poles, pilings, peeler cores, lumber, shingles, veneer,
plywood, particle board, wallboard, siding, cordwood in long or short lengths,
sawdust, hog fuel, wood chips, wood pellets, bark dust or cut trees that are or
will be sold for use as Christmas trees;
(f) [To] Liability or casualty insurance
issued in this state on commercial risks, if:
(A) The policy requires
active participation in a plan of risk management which has established
measures and procedures to minimize both the frequency and severity of losses;
(B) The policy passes on
the benefits of reduced losses to plan participants; and
(C) Rates are
actuarially measurable and credible and sufficiently related to actual and
expected loss and expense experience of the group so as to assure that
nonmembers of the group are not unfairly discriminated against; [or]
(g) [To] Insurance for child care facilities
that are certified in accordance with ORS chapter 657A[.]; or
(h) Liability insurance
for contractors licensed under ORS chapter 701.
(4) Under ORS 731.244,
the director shall make rules necessary for implementation of this section.
SECTION 2. The amendments to ORS 737.600 by section 1
of this 2007 Act apply to all insurers in operation on or after the effective
date of this 2007 Act and to all insurance written, made available or delivered
on or after the effective date of this 2007 Act.
SECTION 3. This 2007 Act being necessary for the
immediate preservation of the public peace, health and safety, an emergency is
declared to exist, and this 2007 Act takes effect on its passage.
Approved by the Governor May 30, 2007
Filed in the office of Secretary of State May 31, 2007
Effective date May 30, 2007
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