74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
 
                            Enrolled
 
                         House Bill 2751
 
Sponsored by COMMITTEE ON CONSUMER PROTECTION
 
 
                     CHAPTER ................
 
 
                             AN ACT
 
 
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 Oregon:
 
  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;
 
 
 
 
Enrolled House Bill 2751 (HB 2751-A)                       Page 1
 
 
 
  (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. + }
                         ----------
 
 
Passed by House March 28, 2007
 
 
      ...........................................................
                                             Chief Clerk of House
 
      ...........................................................
                                                 Speaker of House
 
Passed by Senate May 8, 2007
 
 
      ...........................................................
                                              President of Senate
 
 
 
 
 
Enrolled House Bill 2751 (HB 2751-A)                       Page 2
 
 
 
 
 
Received by Governor:
 
......M.,............., 2007
 
Approved:
 
......M.,............., 2007
 
 
      ...........................................................
                                                         Governor
 
Filed in Office of Secretary of State:
 
......M.,............., 2007
 
 
      ...........................................................
                                               Secretary of State
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Enrolled House Bill 2751 (HB 2751-A)                       Page 3