74th OREGON LEGISLATIVE ASSEMBLY--2008 Special Session
Enrolled
House Bill 3605
Sponsored by COMMITTEE ON ELECTIONS, ETHICS AND RULES (at the
request of House Interim Committee on Workforce and Economic
Development)
CHAPTER ................
AN ACT
Relating to regulation of insurance policy terms; creating new
provisions; amending ORS 731.028, 748.603, 750.055 and 750.333;
and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2008 Act is added to and made
a part of the Insurance Code. + }
SECTION 2. { + (1) When the Governor declares a state of
emergency under ORS 401.055, the Director of the Department of
Consumer and Business Services may issue an order that addresses
any or all of the following matters related to insurance policies
issued in this state:
(a) Reporting requirements for claims;
(b) Grace periods for payment of insurance premiums and
performance of other duties by insureds; and
(c) Temporary postponement of cancellations and nonrenewals.
(2) An order by the director under subsection (1) of this
section may remain effective for not more than 30 days unless the
director extends the termination date for the order for an
additional period of not more than 30 days or for subsequent
additional periods of not more than 30 days. The director may
extend the order if, in the director's judgment, the
circumstances warrant an extension. The order must specify, by
line of insurance:
(a) The geographic areas in which the order applies, which must
be within but may be less extensive than the geographic area
specified in the Governor's proclamation of a state of emergency
and must be specified according to an appropriate means of
delineation, such as United States Postal Service ZIP codes or
other appropriate means; and
(b) The date on which the order becomes effective and the date
on which the order terminates.
(3) The director shall adopt rules that establish general
criteria for orders issued under this section and may adopt
emergency rules applicable to a specific proclamation of a state
of emergency by the Governor.
(4) The rulemaking authority set forth in this section does not
limit or affect the rulemaking authority otherwise granted to the
director by law. + }
SECTION 3. ORS 731.028 is amended to read:
Enrolled House Bill 3605 (HB 3605-A) Page 1
731.028. (1) The State Accident Insurance Fund Corporation is
subject as a domestic insurer to ORS 731.248, 731.252, 731.256,
731.258, 731.260, 731.296 to 731.316, 731.488, 731.574, 731.592,
731.594, 731.730, 731.731, 731.735, 731.737, 731.988, 731.992,
733.010 to 733.060, 733.140 to 733.170, 733.210, 737.205,
737.215, 737.225, 737.235 to 737.340, 737.505 and 737.560, ORS
chapters 742, 743, 743A and 744 and ORS 746.015, 746.075,
746.110, 746.145 to 746.155, 746.230 and 746.240 { + and section
2 of this 2008 Act + }. However:
(a) The requirements of the Director of the Department of
Consumer and Business Services under ORS 733.010 to 733.060,
733.140 to 733.170 and 733.210 govern in the case of a conflict
between those requirements and the requirements of any accounting
system prescribed by the Oregon Department of Administrative
Services.
(b) The filing requirements of ORS 737.205 to 737.340, 737.505
and 737.560 are in lieu of any similar filing requirements
prescribed by any other law of this state.
(c) The requirements of ORS chapters 743 and 743A are
applicable only with respect to excess workers' compensation
insurance furnished by the corporation.
(d) The provisions of ORS chapter 744 apply only with respect
to the regulation of insurance producers.
(e) For each year that the Secretary of State conducts an audit
of the State Accident Insurance Fund Corporation under ORS
297.210, the director may accept the audit and a copy of the
Secretary of State's audit report in lieu of the requirements of
ORS 731.488 if the director determines that the purposes of ORS
731.488 are adequately served by the Secretary of State's audit
and report. The Secretary of State shall file a copy of its audit
report of the State Accident Insurance Fund Corporation with the
director.
(2) The provisions of subsection (1) of this section govern in
the case of a conflict between those provisions and the
provisions of ORS chapter 656 that apply only to the State
Accident Insurance Fund Corporation.
SECTION 4. ORS 748.603 is amended to read:
748.603. (1) Societies are governed by this chapter and are
exempt from all other provisions of the insurance laws of this
state unless expressly designated therein, or unless specifically
made applicable by this chapter.
(2) ORS 705.137, 705.139, 731.004 to 731.026, 731.036 to
731.136, 731.146 to 731.156, 731.162, 731.166, 731.170, 731.216
to 731.268, 731.296, 731.324, 731.328, 731.354, 731.356, 731.358,
731.378, 731.380, 731.381, 731.382, 731.385, 731.386, 731.390,
731.394, 731.396, 731.398, 731.402, 731.406, 731.410, 731.422 to
731.434, 731.446 to 731.454, 731.488, 731.504, 731.508, 731.509,
731.510, 731.511, 731.512, 731.592, 731.594, 731.730, 731.731,
731.735, 731.737, 731.750, 731.804, 731.844 to 731.992, 732.245,
732.250, 732.320, 732.325, 733.010 to 733.050, 733.080, 733.140
to 733.210, 733.220, 733.510, 733.652 to 733.658, 733.730 to
733.750, 735.600 to 735.650, 742.001, 742.003, 742.005, 742.007,
742.009, 742.013 to 742.021, 742.028, 742.038, 742.041, 742.046,
742.051, 742.150 to 742.162 and 744.700 to 744.740 { + and
section 2 of this 2008 Act + } and ORS chapters 734, 743 and 743A
apply to fraternal benefit societies to the extent not
inconsistent with the express provisions of this chapter.
(3) For the purposes of this subsection and subsection (2) of
this section, fraternal benefit societies shall be deemed
Enrolled House Bill 3605 (HB 3605-A) Page 2
insurers, and benefit certificates issued by fraternal benefit
societies shall be deemed policies.
(4) Every society authorized to do business in this state shall
be subject to the provisions of ORS chapter 746 relating to
unfair trade practices. However, nothing in ORS chapter 746 shall
be construed as applying to or affecting the right of any society
to determine its eligibility requirements for membership, or be
construed as applying to or affecting the offering of benefits
exclusively to members or persons eligible for membership in the
society by a subsidiary corporation or affiliated organization of
the society.
SECTION 5. ORS 750.055 is amended to read:
750.055. (1) The following provisions of the Insurance Code
apply to health care service contractors to the extent not
inconsistent with the express provisions of ORS 750.005 to
750.095:
(a) ORS 705.137, 705.139, 731.004 to 731.150, 731.162, 731.216
to 731.362, 731.382, 731.385, 731.386, 731.390, 731.398 to
731.430, 731.428, 731.450, 731.454, 731.488, 731.504, 731.508,
731.509, 731.510, 731.511, 731.512, 731.574 to 731.620, 731.592,
731.594, 731.640 to 731.652, 731.730, 731.731, 731.735, 731.737,
731.750, 731.752, 731.804 and 731.844 to 731.992 { + and section
2 of this 2008 Act + }.
(b) ORS 732.215, 732.220, 732.230, 732.245, 732.250, 732.320,
732.325 and 732.517 to 732.592, not including ORS 732.582.
(c) ORS 733.010 to 733.050, 733.080, 733.140 to 733.170,
733.210, 733.510 to 733.680 and 733.695 to 733.780.
(d) ORS chapter 734.
(e) ORS 742.001 to 742.009, 742.013, 742.061, 742.065, 742.150
to 742.162, 742.400, 742.520 to 742.540, 743.010, 743.013,
743.018 to 743.030, 743.050, 743.100 to 743.109, 743.402,
743.472, 743.492, 743.495, 743.498, 743.522, 743.523, 743.524,
743.526, 743.527, 743.528, 743.529, 743.549 to 743.552, 743.560,
743.600 to 743.610, 743.650 to 743.664, 743.804, 743.807,
743.808, 743.814 to 743.839, 743.842, 743.845, 743.847, 743.854,
743.856, 743.857, 743.858, 743.859, 743.861, 743.862, 743.863,
743.864, 743.911, 743.913, 743A.010, 743A.012, 743A.036,
743A.048, 743A.062, 743A.064, 743A.066, 743A.068, 743A.070,
743A.080, 743A.084, 743A.088, 743A.090, 743A.100, 743A.104,
743A.110, 743A.140, 743A.148, 743A.160, 743A.164, 743A.168,
743A.184, 743A.188 and 743A.190.
(f) The provisions of ORS chapter 744 relating to the
regulation of insurance producers.
(g) ORS 746.005 to 746.140, 746.160, 746.220 to 746.370,
746.600, 746.605, 746.607, 746.608, 746.610, 746.615, 746.625,
746.635, 746.650, 746.655, 746.660, 746.668, 746.670, 746.675,
746.680 and 746.690.
(h) ORS 743A.024, except in the case of group practice health
maintenance organizations that are federally qualified pursuant
to Title XIII of the Public Health Service Act unless the patient
is referred by a physician associated with a group practice
health maintenance organization.
(i) ORS 735.600 to 735.650.
(j) ORS 743.680 to 743.689.
(k) ORS 744.700 to 744.740.
(L) ORS 743.730 to 743.773.
(m) ORS 731.485, except in the case of a group practice health
maintenance organization that is federally qualified pursuant to
Title XIII of the Public Health Service Act and that wholly owns
and operates an in-house drug outlet.
Enrolled House Bill 3605 (HB 3605-A) Page 3
(2) For the purposes of this section, health care service
contractors shall be deemed insurers.
(3) Any for-profit health care service contractor organized
under the laws of any other state that is not governed by the
insurance laws of the other state is subject to all requirements
of ORS chapter 732.
(4) The Director of the Department of Consumer and Business
Services may, after notice and hearing, adopt reasonable rules
not inconsistent with this section and ORS 750.003, 750.005,
750.025 and 750.045 that are deemed necessary for the proper
administration of these provisions.
SECTION 6. ORS 750.055, as amended by section 7, chapter 137,
Oregon Laws 2003, section 3, chapter 263, Oregon Laws 2003,
sections 501 and 502, chapter 22, Oregon Laws 2005, sections 5
and 6, chapter 255, Oregon Laws 2005, section 5, chapter 418,
Oregon Laws 2005, section 3, chapter 128, Oregon Laws 2007,
section 9, chapter 182, Oregon Laws 2007, section 6, chapter 313,
Oregon Laws 2007, section 4, chapter 504, Oregon Laws 2007,
section 4, chapter 566, Oregon Laws 2007, and section 4, chapter
872, Oregon Laws 2007, is amended to read:
750.055. (1) The following provisions of the Insurance Code
apply to health care service contractors to the extent not
inconsistent with the express provisions of ORS 750.005 to
750.095:
(a) ORS 705.137, 705.139, 731.004 to 731.150, 731.162, 731.216
to 731.362, 731.382, 731.385, 731.386, 731.390, 731.398 to
731.430, 731.428, 731.450, 731.454, 731.488, 731.504, 731.508,
731.509, 731.510, 731.511, 731.512, 731.574 to 731.620, 731.592,
731.594, 731.640 to 731.652, 731.730, 731.731, 731.735, 731.737,
731.750, 731.752, 731.804 and 731.844 to 731.992 { + and section
2 of this 2008 Act + }.
(b) ORS 732.215, 732.220, 732.230, 732.245, 732.250, 732.320,
732.325 and 732.517 to 732.592, not including ORS 732.582.
(c) ORS 733.010 to 733.050, 733.080, 733.140 to 733.170,
733.210, 733.510 to 733.680 and 733.695 to 733.780.
(d) ORS chapter 734.
(e) ORS 742.001 to 742.009, 742.013, 742.061, 742.065, 742.150
to 742.162, 742.400, 742.520 to 742.540, 743.010, 743.013,
743.018 to 743.030, 743.050, 743.100 to 743.109, 743.402,
743.472, 743.492, 743.495, 743.498, 743.522, 743.523, 743.524,
743.526, 743.527, 743.528, 743.529, 743.549 to 743.552, 743.560,
743.600 to 743.610, 743.650 to 743.656, 743.804, 743.807,
743.808, 743.814 to 743.839, 743.842, 743.845, 743.847, 743.854,
743.856, 743.857, 743.858, 743.859, 743.861, 743.862, 743.863,
743.864, 743.911, 743.913, 743A.010, 743A.012, 743A.036,
743A.048, 743A.062, 743A.064, 743A.066, 743A.068, 743A.070,
743A.080, 743A.084, 743A.088, 743A.090, 743A.100, 743A.104,
743A.110, 743A.140, 743A.148, 743A.160, 743A.164, 743A.168,
743A.184 and 743A.190.
(f) The provisions of ORS chapter 744 relating to the
regulation of insurance producers.
(g) ORS 746.005 to 746.140, 746.160, 746.220 to 746.370,
746.600, 746.605, 746.607, 746.608, 746.610, 746.615, 746.625,
746.635, 746.650, 746.655, 746.660, 746.668, 746.670, 746.675,
746.680 and 746.690.
(h) ORS 743A.024, except in the case of group practice health
maintenance organizations that are federally qualified pursuant
to Title XIII of the Public Health Service Act unless the patient
is referred by a physician associated with a group practice
health maintenance organization.
Enrolled House Bill 3605 (HB 3605-A) Page 4
(i) ORS 735.600 to 735.650.
(j) ORS 743.680 to 743.689.
(k) ORS 744.700 to 744.740.
(L) ORS 743.730 to 743.773.
(m) ORS 731.485, except in the case of a group practice health
maintenance organization that is federally qualified pursuant to
Title XIII of the Public Health Service Act and that wholly owns
and operates an in-house drug outlet.
(2) For the purposes of this section, health care service
contractors shall be deemed insurers.
(3) Any for-profit health care service contractor organized
under the laws of any other state that is not governed by the
insurance laws of the other state is subject to all requirements
of ORS chapter 732.
(4) The Director of the Department of Consumer and Business
Services may, after notice and hearing, adopt reasonable rules
not inconsistent with this section and ORS 750.003, 750.005,
750.025 and 750.045 that are deemed necessary for the proper
administration of these provisions.
SECTION 7. ORS 750.333 is amended to read:
750.333. (1) The following provisions of the Insurance Code
apply to trusts carrying out a multiple employer welfare
arrangement:
(a) ORS 731.004 to 731.150, 731.162, 731.216 to 731.268,
731.296 to 731.316, 731.324, 731.328, 731.378, 731.386, 731.390,
731.398, 731.406, 731.410, 731.414, 731.418 to 731.434, 731.454,
731.484, 731.486, 731.488, 731.512, 731.574 to 731.620, 731.640
to 731.652 { - , - } { + and + } 731.804 to 731.992.
(b) ORS 733.010 to 733.050, 733.140 to 733.170, 733.210,
733.510 to 733.680 and 733.695 to 733.780.
(c) ORS chapter 734.
(d) ORS 742.001 to 742.009, 742.013, 742.061 and 742.400.
(e) ORS 743.028, 743.053, 743.524, 743.526, 743.527, 743.528,
743.529, 743.530, 743.560, 743.562, 743.600, 743.601, 743.602,
743.610, 743.730 to 743.773 (except 743.760 to 743.773), 743.801,
743.804, 743.807, 743.808, 743.814 to 743.839, 743.842, 743.845,
743.847, 743.854, 743.856, 743.857, 743.858, 743.859, 743.861,
743.862, 743.863, 743.864, 743A.012, 743A.064, 743A.080,
743A.100, 743A.104, 743A.110 and 743A.184.
(f) ORS 743A.010, 743A.014, 743A.024, 743A.028, 743A.032,
743A.036, 743A.040, 743A.044, 743A.048, 743A.066, 743A.068,
743A.084, 743A.088, 743A.090, 743A.140, 743A.148, 743A.168,
743A.180, 743A.188 and 743A.190. Multiple employer welfare
arrangements to which ORS 743.730 to 743.773 apply are subject to
the sections referred to in this paragraph only as provided in
ORS 743.730 to 743.773.
(g) Provisions of ORS chapter 744 relating to the regulation of
insurance producers and insurance consultants, and ORS 744.700 to
744.740.
(h) ORS 746.005 to 746.140, 746.160 and 746.220 to 746.370.
(i) ORS 731.592 and 731.594.
{ + (j) Section 2 of this 2008 Act. + }
(2) For the purposes of this section:
(a) A trust carrying out a multiple employer welfare
arrangement shall be considered an insurer.
(b) References to certificates of authority shall be considered
references to certificates of multiple employer welfare
arrangement.
(c) Contributions shall be considered premiums.
Enrolled House Bill 3605 (HB 3605-A) Page 5
(3) The provision of health benefits under ORS 750.301 to
750.341 shall be considered to be the transaction of health
insurance.
SECTION 8. ORS 750.333, as amended by section 4, chapter 263,
Oregon Laws 2003, section 11, chapter 182, Oregon Laws 2007,
section 8, chapter 313, Oregon Laws 2007, section 6, chapter 504,
Oregon Laws 2007, section 6, chapter 566, Oregon Laws 2007, and
section 6, chapter 872, Oregon Laws 2007, is amended to read:
750.333. (1) The following provisions of the Insurance Code
apply to trusts carrying out a multiple employer welfare
arrangement:
(a) ORS 731.004 to 731.150, 731.162, 731.216 to 731.268,
731.296 to 731.316, 731.324, 731.328, 731.378, 731.386, 731.390,
731.398, 731.406, 731.410, 731.414, 731.418 to 731.434, 731.454,
731.484, 731.486, 731.488, 731.512, 731.574 to 731.620, 731.640
to 731.652 { - , - } { + and + } 731.804 to 731.992.
(b) ORS 733.010 to 733.050, 733.140 to 733.170, 733.210,
733.510 to 733.680 and 733.695 to 733.780.
(c) ORS chapter 734.
(d) ORS 742.001 to 742.009, 742.013, 742.061 and 742.400.
(e) ORS 743.028, 743.053, 743.524, 743.526, 743.527, 743.528,
743.529, 743.530, 743.560, 743.562, 743.600, 743.601, 743.602,
743.610, 743.730 to 743.773 (except 743.760 to 743.773), 743.801,
743.804, 743.807, 743.808, 743.814 to 743.839, 743.842, 743.845,
743.847, 743.854, 743.856, 743.857, 743.858, 743.859, 743.861,
743.862, 743.863, 743.864, 743A.012, 743A.064, 743A.080,
743A.100, 743A.104, 743A.110 and 743A.184.
(f) ORS 743A.010, 743A.014, 743A.024, 743A.028, 743A.032,
743A.036, 743A.040, 743A.044, 743A.048, 743A.066, 743A.068,
743A.084, 743A.088, 743A.090, 743A.140, 743A.148, 743A.168,
743A.180 and 743A.190. Multiple employer welfare arrangements to
which ORS 743.730 to 743.773 apply are subject to the sections
referred to in this paragraph only as provided in ORS 743.730 to
743.773.
(g) Provisions of ORS chapter 744 relating to the regulation of
insurance producers and insurance consultants, and ORS 744.700 to
744.740.
(h) ORS 746.005 to 746.140, 746.160 and 746.220 to 746.370.
(i) ORS 731.592 and 731.594.
{ + (j) Section 2 of this 2008 Act. + }
(2) For the purposes of this section:
(a) A trust carrying out a multiple employer welfare
arrangement shall be considered an insurer.
(b) References to certificates of authority shall be considered
references to certificates of multiple employer welfare
arrangement.
(c) Contributions shall be considered premiums.
(3) The provision of health benefits under ORS 750.301 to
750.341 shall be considered to be the transaction of health
insurance.
SECTION 9. ORS 750.333, as amended by section 8, chapter 137,
Oregon Laws 2003, section 4, chapter 263, Oregon Laws 2003,
section 3, chapter 446, Oregon Laws 2003, section 6, chapter 418,
Oregon Laws 2005, section 12, chapter 182, Oregon Laws 2007,
section 9, chapter 313, Oregon Laws 2007, section 7, chapter 504,
Oregon Laws 2007, section 7, chapter 566, Oregon Laws 2007, and
section 7, chapter 872, Oregon Laws 2007, is amended to read:
750.333. (1) The following provisions of the Insurance Code
apply to trusts carrying out a multiple employer welfare
arrangement:
Enrolled House Bill 3605 (HB 3605-A) Page 6
(a) ORS 731.004 to 731.150, 731.162, 731.216 to 731.268,
731.296 to 731.316, 731.324, 731.328, 731.378, 731.386, 731.390,
731.398, 731.406, 731.410, 731.414, 731.418 to 731.434, 731.454,
731.484, 731.486, 731.488, 731.512, 731.574 to 731.620, 731.640
to 731.652 { - , - } { + and + } 731.804 to 731.992.
(b) ORS 733.010 to 733.050, 733.140 to 733.170, 733.210,
733.510 to 733.680 and 733.695 to 733.780.
(c) ORS chapter 734.
(d) ORS 742.001 to 742.009, 742.013, 742.061 and 742.400.
(e) ORS 743.028, 743.053, 743.524, 743.526, 743.527, 743.528,
743.529, 743.530, 743.560, 743.562, 743.600, 743.601, 743.602,
743.610, 743.730 to 743.773 (except 743.760 to 743.773), 743.801,
743.804, 743.807, 743.808, 743.814 to 743.839, 743.842, 743.845,
743.847, 743.854, 743.856, 743.857, 743.858, 743.859, 743.861,
743.862, 743.863, 743.864, 743A.012, 743A.064, 743A.080,
743A.100, 743A.104, 743A.110 and 743A.184.
(f) ORS 743A.010, 743A.014, 743A.024, 743A.028, 743A.032,
743A.036, 743A.040, 743A.048, 743A.066, 743A.068, 743A.084,
743A.088, 743A.090, 743A.140, 743A.148, 743A.168, 743A.180 and
743A.190. Multiple employer welfare arrangements to which ORS
743.730 to 743.773 apply are subject to the sections referred to
in this paragraph only as provided in ORS 743.730 to 743.773.
(g) Provisions of ORS chapter 744 relating to the regulation of
insurance producers and insurance consultants, and ORS 744.700 to
744.740.
(h) ORS 746.005 to 746.140, 746.160 and 746.220 to 746.370.
(i) ORS 731.592 and 731.594.
{ + (j) Section 2 of this 2008 Act. + }
(2) For the purposes of this section:
(a) A trust carrying out a multiple employer welfare
arrangement shall be considered an insurer.
(b) References to certificates of authority shall be considered
references to certificates of multiple employer welfare
arrangement.
(c) Contributions shall be considered premiums.
(3) The provision of health benefits under ORS 750.301 to
750.341 shall be considered to be the transaction of health
insurance.
SECTION 10. { + This 2008 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2008 Act takes effect on
its passage. + }
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Enrolled House Bill 3605 (HB 3605-A) Page 7
Passed by House February 14, 2008
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate February 21, 2008
...........................................................
President of Senate
Enrolled House Bill 3605 (HB 3605-A) Page 8
Received by Governor:
......M.,............., 2008
Approved:
......M.,............., 2008
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2008
...........................................................
Secretary of State
Enrolled House Bill 3605 (HB 3605-A) Page 9