74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 579
 
                         House Bill 2224
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Governor Theodore R.
  Kulongoski for Department of Consumer and Business Services)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Permits Director of Department of Consumer and Business
Services by rule to specify categories of insurance for which
director need not review individual policy forms if director
finds that Interstate Insurance Product Regulation Commission or
similar multistate review process provides policyholders with
same protections as or better protections than does review
process under state law.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to insurance policy forms; creating new provisions;
  amending ORS 742.003; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 742.003 is amended to read:
  742.003. (1) Except  { + as provided in this section or + }
where otherwise provided by law,   { - no - }  { +  a + } basic
policy form, or application form where written application is
required and is to be made a part of the policy, or rider,
indorsement or renewal certificate form   { - shall - }  { +  may
not + } be delivered or issued for delivery in this state until
the form has been filed with and approved by the Director of the
Department of Consumer and Business Services. This section does
not apply to:
  (a) Forms of unique character   { - which - }   { + that + }
are designed for and used with respect to insurance upon a
particular risk or subject;
  (b) Forms issued at the request of a particular life or health
insurance policy owner or certificate holder and   { - which - }
 { + that + } relate to the manner of distribution of benefits or
to the reservation of rights and benefits thereunder;
  (c) Forms of group life or health insurance policies, or both,
that have been agreed upon as a result of negotiations between
the policyholder and the insurer; or
  (d) Forms complying with specific requirements regarding
delivery or issuance for delivery in this state established by
the director by rule.
  (2) The director shall within 30 days after the filing of any
such form approve or disapprove the form. The director shall give
written notice of such action to the insurer proposing to deliver
such form and when a form is disapproved the notice shall show
wherein such form does not comply with the law.
  (3) The 30-day period referred to in subsection (2) of this
section may be extended by the director for an additional period
not to exceed 30 days if the director gives written notice within
the first 30-day period to the insurer proposing to deliver the
form that the director needs such additional time for the
consideration of such form.
  (4) The director may at any time request an insurer to furnish
the director a copy of any form exempted under subsection (1) of
this section.
   { +  (5) Notwithstanding any other provision of law, the
director by rule may specify categories of life insurance,
annuities or disability insurance for which the director need not
consider or review an individual policy form that an insurer has
filed before approving the form for delivery or issuance for
delivery in this state. Policy forms that the Interstate
Insurance Product Regulation Commission has reviewed, or that
have undergone review through a similar multistate process, are
subject to approval in the manner specified in this subsection if
the director finds that the applicable review process gives
policyholders substantially the same protection as or better
protections than does the process available under the laws of
this state when considered in light of:
  (a) The procedures used in the multistate review;
  (b) The nature of the insurance product reviewed; and
  (c) The consumer needs that the insurance product serves.
  (6) Nothing in subsection (5) of this section affects the
director's power to withdraw approval of any policy form under
ORS 742.007 or to regulate the marketing and use of any approved
policy form under the laws of this state. + }
  SECTION 2.  { + The amendments to ORS 742.003 by section 1 of
this 2007 Act apply to insurance policy forms filed with the
Director of the Department of Consumer and Business Services 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. + }
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