75th OREGON LEGISLATIVE ASSEMBLY--2009 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 2799
House Bill 3046
Sponsored by Representative SHIELDS; Representatives CLEM, C
EDWARDS, GALIZIO, GREENLICK, RILEY, TOMEI
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.
Establishes Insurance Rate Review Board in Department of
Consumer and Business Services. Requires board review and
approval of all insurance rates, rating plans and rating systems
filed or used by insurer, rating organization or advisory
organization.
Declares emergency, effective July 1, 2009.
A BILL FOR AN ACT
Relating to insurance; creating new provisions; amending ORS
83.580, 731.260, 731.754, 731.804, 735.230, 737.045, 737.205,
737.207, 737.209, 737.310, 737.312, 737.320, 737.322, 737.325,
737.336, 737.340, 737.505, 737.526, 737.535, 737.600, 742.003,
742.490, 742.706, 743.015, 743.018, 743.405, 743.527, 743.737,
743.760 and 743.767 and section 6, chapter 781, Oregon Laws
2003; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 6 of this 2009 Act are added to
and made a part of ORS chapter 737. + }
SECTION 2. { + (1) The Insurance Rate Review Board is
established in the Department of Consumer and Business Services.
The purposes of the board are to represent the customers of
insurers and the public generally in the regulation of insurance
rates and to ensure that insurance rates are reasonable and
justified.
(2) The board shall consist of five members appointed by the
Governor.
(3) A member of the board may not be involved in the operation
or management of an insurer or have a pecuniary interest or a
direct financial interest in an insurer.
(4) The term of office of each member of the board is four
years. Each member serves at the pleasure of the Governor. Before
the expiration of the term of a member, the Governor shall
appoint a successor whose term begins on July 1 next following. A
member is eligible for reappointment for one additional term. If
there is a vacancy for any cause, the Governor shall make an
appointment to become immediately effective for the unexpired
term. The board shall nominate a slate of candidates whenever a
vacancy occurs or is announced and shall forward the names of the
recommended candidates to the Governor for consideration.
(5) The board shall select one of its members as chairperson
and another as vice chairperson for the terms and with the duties
and powers as the board considers necessary for the performance
of the functions of those offices.
(6) The Governor may remove any member of the board at any time
at the pleasure of the Governor. The board may remove a member as
specified in the board bylaws.
(7) The board may appoint subcommittees and advisory groups as
needed to assist the board.
(8) A majority of the members of the board then in office
constitutes a quorum for the transaction of business.
(9) A member of the board is entitled to compensation and
expenses as provided in ORS 292.495.
(10) The board shall appoint an administrator and employ other
staff as necessary to carry out the functions of the board.
(11) The board shall adopt rules that the board considers
necessary to carry out the functions of the board. + }
SECTION 3. { + (1) The Insurance Rate Review Board shall
review and approve or disapprove all rates, rating plans and
rating systems filed or used by an insurer or filed by a rating
or advisory organization on behalf of an insurer. The insurer,
rating organization or advisory organization has the burden of
proving that the rates are reasonable and justified.
(2) A filing made under subsection (1) of this section is open
to public inspection immediately upon submission to the board.
(3) Each filing shall be accompanied by the applicable fees
established by the board by rule. The fees shall be based on the
actual costs to the board of conducting the review process under
this section.
(4) If, within 30 days of a filing, a majority of the members
of the board requests a hearing or a person makes written
application to the board for a hearing on the filing, the board
shall hold a hearing on any rate, rating plan or rating system
reviewed by the board under subsection (1) of this section prior
to approving or disapproving the rate, rating plan or rating
system.
(5) The board shall:
(a) Give written notice of the hearing to the insurer and to
any person that has requested notice under subsection (6) of this
section; and
(b) Provide copies of the information reviewed under subsection
(1) of this section to any person that has requested information
under subsection (6) of this section.
(6) A person may request in writing that the board mail to the
person copies of the information reviewed under subsection (1) of
this section or notices of hearings issued under subsection (5)
of this section. The board shall acknowledge each request made
under this subsection, establish mailing lists of persons that
have requested information or notice under this subsection and
maintain a record of all information and notices of hearings
mailed pursuant to this subsection. The board may by rule
establish fees to be charged to persons requesting information or
notice under this subsection to defray the costs of mailings and
maintenance of the lists.
(7) The board shall issue an order approving or disapproving
the filing within:
(a) 45 days of a filing made under subsection (1) of this
section; or
(b) 14 days of a hearing held under subsection (4) of this
section.
(8) A filing approved by the board under this section shall be
effective 14 days after the board issues an order approving the
filing and shall remain effective during any review of the order.
(9) If the board disapproves a filing, the board shall send to
the insurer, rating organization or advisory organization that
made the filing written notice of the disapproval, specifying the
reasons for the disapproval.
(10) An order issued under subsection (7) of this section may
be reviewed as provided in ORS 183.480 to 183.540 for review of
contested cases. + }
SECTION 4. { + (1) The Insurance Rate Review Board may enter
into a written agreement with one or more organizations that
represent broad customer interests in regulatory actions taken by
the board. The agreement shall govern the manner in which the
board may provide financial assistance to an organization found
by the board to be qualified under subsection (2) of this
section.
(2) Financial assistance under an agreement entered into under
this section may be provided only to an organization that
petitions the board to represent broad customer interests in
proceedings before the board. The board by rule shall establish
the qualifications that the board deems appropriate for
determining which organizations are eligible for financial
assistance under an agreement entered into under this section.
(3) In administering an agreement entered into under this
section, the board may determine:
(a) The manner in which an organization may petition the board
to represent customer interests before the board;
(b) The amount of financial assistance that may be provided to
an organization;
(c) The manner in which the financial assistance will be
distributed; and
(d) Other matters necessary to administer the agreement. + }
SECTION 5. { + (1) As used in this section and section 6 of
this 2009 Act:
(a) 'Enrollee' means an employee, a dependent of the employee
or an individual otherwise eligible for a group health benefit
plan who has enrolled for coverage under the terms of the plan.
(b) 'Health benefit plan' has the meaning given that term in
ORS 743.730.
(2) An insurer that offers a group health benefit plan in this
state may not deliver or issue for delivery a group health
benefit plan unless the Insurance Rate Review Board has approved
the rates under section 6 of this 2009 Act and the insurer has
filed with the board the following:
(a) The proposed rates;
(b) If filing changes to a previously approved rate, an
explanation of the changes;
(c) Financial information describing the basis for the proposed
rates;
(d) The rate of return anticipated if the rates are approved;
(e) The average rate increase or decrease anticipated per
enrollee;
(f) The medical loss ratio reserves and surpluses anticipated
if the rates are approved;
(g) A summary of the insurer's nonmedical expenses for the most
recent fiscal year; and
(h) Any other information required by the board by rule. + }
SECTION 6. { + (1) The Insurance Rate Review Board shall
review a filing made by an insurer under section 5 of this 2009
Act and approve or disapprove the rates.
(2) The board shall approve the rates if the board determines
that the health benefit plan provides for appropriate
accessibility and affordability of needed health care services
and that the rates are reasonable and justified.
(3) The board shall disapprove the rates if the board finds
that:
(a) The benefits provided are unreasonable in relation to the
rates charged; or
(b) The rates are unfair or excessive.
(4) When determining the reasonableness of a rate and whether
to approve or disapprove the rate, the board shall consider but
is not limited to whether the insurer is:
(a) Eliminating or adding benefits covered under the health
benefit plan;
(b) Increasing or decreasing benefits covered under the health
benefit plan and whether the increase or decrease in benefits is
due to a change in the formulas, methodologies or schedules that
serve as the basis for making benefit determinations;
(c) Increasing or decreasing coinsurance, deductibles,
copayments or other amounts to be paid by enrollees; or
(d) Establishing new conditions or requirements, such as
preauthorization requirements to obtain benefits under the health
benefit plan, or eliminating conditions or requirements. + }
SECTION 7. ORS 83.580 is amended to read:
83.580. (1) The amount, if any, included for automobile
insurance, shall not exceed the premiums chargeable in accordance
with rate filings made by the insurer with the { - Director of
the Department of Consumer and Business Services - }
{ + Insurance Rate Review Board + } for such insurance.
(2) The amount, if any, included for life, health and accident
or other insurance, other than automobile insurance, shall not
exceed the premiums charged by the insurer.
(3) Except as provided in ORS 743.377, the motor vehicle dealer
or financing agency, if an amount for automobile or other
insurance on the motor vehicle is included in a retail
installment contract, shall within 30 days after execution of the
retail installment contract send or cause to be sent to the buyer
a policy or policies or certificate of insurance, written by an
insurance company authorized to do business in this state,
clearly setting forth the amount of the premium, the kind or
kinds of insurance and the scope of the coverage and all the
terms, exceptions, limitations, restrictions and conditions of
the contract or contracts of insurance. The buyer of a motor
vehicle under a retail installment contract shall have the
privilege of purchasing such insurance from an insurance producer
of the selection of the buyer and of selecting an insurance
company acceptable to the motor vehicle dealer; provided,
however, that the inclusion of the insurance premium in the
retail installment contract when the buyer selects the insurance
producer or company, shall be optional with the motor vehicle
dealer and in such case the motor vehicle dealer or financing
agency shall have no obligation to send, or cause to be sent, to
the buyer the policy or certificate of insurance.
(4) If an insurance policy or certificate that was obtained for
an amount included in the retail installment contract is
canceled, the unearned insurance premium refund received by the
holder of the contract shall be credited to the last maturing
installments of the retail installment contract except to the
extent applied toward payment for similar insurance protecting
the interests of the buyer or of the buyer and the holder of the
contract.
SECTION 8. ORS 731.260 is amended to read:
731.260. No person shall file or cause to be filed with the
Director of the Department of Consumer and Business Services
{ + or the Insurance Rate Review Board + } any article,
certificate, report, statement, application or any other
information required or permitted to be so filed under the
Insurance Code and known to such person to be false or misleading
in any material respect.
SECTION 9. ORS 731.754 is amended to read:
731.754. (1) The Director of the Department of Consumer and
Business Services may use the following only for the purpose of
monitoring the solvency of insurers and health care service
contractors and the need for possible corrective action with
respect to insurers and health care service contractors:
(a) Reports and financial plans of action that are made
confidential under ORS 731.752; and
(b) Instructions adopted and amended by the National
Association of Insurance Commissioners for use by insurers and
health care service contractors in preparing reports and
financial plans of action referred to in paragraph (a) of this
subsection.
(2) The director { + and the Insurance Rate Review Board + }
may not use reports, financial plans of action and instructions
referred to in subsection (1) of this section for ratemaking, for
reviewing rate filings or in a rate proceeding related thereto,
or to calculate or derive any elements of an appropriate premium
level or rate of return for any line of insurance that an
insurer, a health care service contractor or an affiliate is
authorized to transact. Such reports and financial plans of
action also shall not be introduced as evidence in a rate
proceeding.
(3) This section does not restrict the authority of the
director to use information included in reports, financial plans
or instructions referred to in subsection (1) of this section
that is available from other sources.
SECTION 10. ORS 731.804 is amended to read:
731.804. (1) Except as otherwise provided in this section, each
authorized insurer doing business in this state shall pay
assessments that the Director of the Department of Consumer and
Business Services determines are necessary to support the
legislatively authorized budget of the Department of Consumer and
Business Services with respect to functions of the department
under the Insurance Code { + , including the functions of the
Insurance Rate Review Board + }. The director shall determine the
assessments according to one or more percentage rates established
by the director by rule. The director shall specify in the rule
when assessments shall be made and payments shall be due. The
premium-weighted average of the percentage rates may not exceed
nine-hundredths of one percent of the gross amount of premiums
received by an insurer or the insurer's insurance producers from
and under the insurer's policies covering direct domestic risks,
after deducting the amount of return premiums paid and the amount
of dividend payments made to policyholders with respect to such
policies. In the case of reciprocal insurers, the amount of
savings paid or credited to the accounts of subscribers shall be
deducted from the gross amount of premiums. In establishing the
percentage rate or rates, the director shall use the most recent
premium data approved by the director. In establishing the
amounts to be collected under this subsection, the director shall
take into consideration the expenses of the department for
administering the Insurance Code and the fees collected under
subsection (2) of this section. When the director establishes two
or more percentage rates:
(a) Each rate shall be based on such expenses of the department
ascribed by the director to the line of insurance for which the
rate is established.
(b) Each rate shall be applied to the gross amount of premium
received by an insurer or its insurance producers for the
applicable line of insurance as provided in this subsection.
(2) The director may collect fees for specific services
provided by the department under the Insurance Code according to
a schedule of fees established by the director by rule. The
director may collect such fees in advance. In establishing the
schedule for fees, the director shall take into consideration the
cost of each service for which a fee is imposed.
(3) Establishment and amendment of the schedule of fees under
subsection (2) of this section are subject to prior approval of
the Oregon Department of Administrative Services and a report to
the Emergency Board prior to adopting the fees and shall be
within the budget authorized by the Legislative Assembly as that
budget may be modified by the Emergency Board.
(4) The director may not collect an assessment under subsection
(1) of this section from any of the following persons:
(a) A fraternal benefit society complying with ORS chapter 748.
(b) Any person or class of persons designated by the director
by rule.
(5) The director may not collect an assessment under subsection
(1) of this section with respect to premiums received from any of
the following policies:
(a) Workers' compensation insurance policies.
(b) Wet marine and transportation insurance policies.
(c) Any category of policies designated by the director by
rule.
SECTION 11. ORS 735.230 is amended to read:
735.230. The board of directors of the joint underwriting
association shall engage the services of an independent actuarial
firm to develop and recommend actuarially sound rates, rating
plans, rating rules and classifications. The { - Director of
the Department of Consumer and Business Services - }
{ + Insurance Rate Review Board + } shall approve rates filed by
the joint underwriting association in accordance with ORS
737.310. All rates approved for the joint underwriting
association shall be actuarially sound and calculated to be
self-supporting.
SECTION 12. ORS 737.045 is amended to read:
737.045. (1) If the Director of the Department of Consumer and
Business Services has reason to believe that a rate, rating plan
or rating system filed or used by an insurer or filed by a rating
or advisory organization on behalf of an insurer { + and
approved by the Insurance Rate Review Board + } does not comply
with the requirements and standards of this chapter, the director
may issue an order directing the insurer or the rating or
advisory organization to discontinue or desist from the
noncompliance. An order issued under this subsection is subject
to the provisions of ORS 731.252.
(2) If the director holds a hearing on an order issued pursuant
to subsection (1) of this section, the insurer or rating or
advisory organization filing or using the rate, rating plan or
rating system shall pay to the director the just and legitimate
costs of the hearing, including actual necessary expenses.
(3) If the { - director - } { + board + } finds after a
hearing under ORS 737.340 that any rate, rating plan or rating
system violates the provisions of this chapter, the director may
issue an order specifying the violation and stating when, within
a reasonable period of time, the further use of such rate, rating
plan or rating system by an insurer or rating or advisory
organization shall be prohibited.
(4) If the director { + or board + } finds after a hearing
under ORS 737.215 or 737.340 that an insurer or rating or
advisory organization is in violation of any provision of this
chapter other than the provisions dealing with rates, rating
plans or rating systems, the director may issue an order
specifying the violation and requiring compliance within a
reasonable time.
(5) If the director finds after a hearing under ORS 737.215
that the violation of any of the provisions of this chapter
applicable to it by any insurer or rating organization that has
been the subject of a hearing was willful, the director may
suspend or revoke the certificate of authority of such insurer or
the license of such rating organization.
(6) If the director finds after a hearing that any rating
organization has willfully engaged in any fraudulent or dishonest
act or practices, the director may suspend or revoke the license
of such organization.
SECTION 13. ORS 737.205 is amended to read:
737.205. (1) Every insurer shall file with the { - Director
of the Department of Consumer and Business Services - }
{ + Insurance Rate Review Board + } copies of the rates, rating
plans and rating systems used by it. Except as provided in ORS
737.207, 737.209 and 737.320 (2), each filing shall become
effective { - immediately on the date specified therein but not
earlier than the date such filing is received by the director - }
{ + 14 days after the board issues an order approving the
filing + }. This subsection does not apply to inland marine risks
which by general custom of the business are not written according
to manual rates or rating plans.
(2) An insurer may satisfy its obligation to make such filings
by becoming a member of or a subscriber to a licensed rating
organization which makes such filings, and by authorizing the
{ - director - } { + board + } to accept such filings on its
behalf. { - Such - } { + The + } insurer may { - so - }
adopt the filings of a rating organization on part of the classes
of risks insured by it and may make its own filings as to other
classes which shall be uniform throughout the insurer's
territorial classification. This subsection does not apply to
workers' compensation insurance filings except to the extent that
the rating organization filings of rating plans or systems under
ORS 737.320 are complete and usable by an insurer without the
addition of allowances for expenses, taxes or profit.
{ - (3) A filing shall be open to public inspection
immediately upon submission to the director. - }
SECTION 14. ORS 737.207 is amended to read:
737.207. (1) As used in this section, a market may be a line,
subline or classification of commercial liability insurance.
(2) Filings of commercial liability insurance rates for markets
specified by the Director of the Department of Consumer and
Business Services shall be submitted by an insurer or rating
organization to the { - director - } { + Insurance Rate
Review Board + } for review prior to the effective date { - if
the average annual rate level increase or decrease for each
market exceeds 15 percent - } . Factors to be considered by the
{ - director - } { + board + } in { - specifying a market to
be subject to this section - } { + approving or disapproving
filings + } may include:
(a) The nature and extent of competition;
(b) The size and significance of the coverage provided;
(c) Reinsurance availability;
(d) The volume of cancellations and nonrenewals; and
(e) Changing conditions in the economic, judicial and social
environment.
(3) Except as otherwise provided in ORS 737.209, the effective
date of a commercial liability insurance filing required by
subsection (2) of this section to be submitted to the
{ - director - } { + board + } for review shall be the date
specified therein but not earlier than the 30th day after the
filing is received by the { - director - } { + board + }.
After review of the filing, the { - director - } { +
board + } may authorize an earlier effective date, if
appropriate. The 30-day waiting period may be extended to 60 days
if the { - director - } { + board + } gives written notice
within { - such - } { + the + } waiting period to the insurer
or rating organization { - which - } { + that + } made the
filing that the extended period is needed for consideration of
the filing. A filing subject to subsection (2) of this section
that has not been approved or disapproved within the waiting
period, or any extension thereof, shall be deemed approved.
(4) Supporting actuarial data shall accompany every filing of
commercial liability insurance rates. The data shall be in
sufficient detail to justify the rate level change and shall
demonstrate compliance with ORS 737.310 governing the making of
rates.
SECTION 15. ORS 737.209 is amended to read:
737.209. (1) The { - Director of the Department of Consumer
and Business Services - } { + Insurance Rate Review Board + }
may hold a hearing on a filing made pursuant to ORS 737.207 if
the { - director - } { + board + } determines that
{ - such - } { + holding + } a hearing would aid the
{ - director - } { + board + } in determining whether to
approve or disapprove the filing. A hearing under this section
may be held at a place designated by the { - director - }
{ + board + } and upon not less than 10 days' written notice to
the insurer or rating organization that made the filing and to
any other person { - the director decides should be
notified - } { + that requests notification + }. A filing that
is the subject of a hearing under this section becomes effective,
if approved, as provided in subsection (4) of this section.
(2) A hearing held pursuant to subsection (1) of this section
must be conducted by an administrative law judge assigned from
the Office of Administrative Hearings established under ORS
183.605. The administrative law judge shall report findings,
conclusions and recommendations to the { - director - }
{ + board + } within 30 days of the close of the hearing. The
insurer or rating organization proposing the rate filing shall
have the burden of proving that the rate proposal is justified
and shall pay to the
{ - director - } { + board + } the fair and reasonable costs
of the hearing, including actual necessary expenses.
(3) Within 10 days of receiving a report from the
administrative law judge, the { - director - } { + board + }
shall issue an order approving or disapproving the filing.
(4) An order issued under subsection (3) of this section may be
reviewed as provided in ORS 183.480 to 183.540 for review of
contested cases. A filing approved by the { - director - }
{ + board + } under this section shall be effective { - 10 - }
{ + 14 + } days after the order issued under subsection (3) of
this section and shall remain effective during any review of the
order.
SECTION 16. ORS 737.310 is amended to read:
737.310. The following standards shall apply to the making and
use of rates:
(1) Rates shall not be excessive, inadequate or unfairly
discriminatory.
(2) As to all classes of insurance, other than workers'
compensation and title insurance:
(a) No rate shall be held to be excessive unless:
(A) Such rate is unreasonably high for the insurance provided;
and
(B) A reasonable degree of competition does not exist in the
area with respect to the classification to which such rate is
applicable.
(b) No rate shall be held inadequate unless such rate is
unreasonably low for the insurance provided and:
(A) Use or continued use of such rate endangers the solvency of
the insurer; or
(B) The use of such rate by the insurer has, or if continued
will have, the effect of destroying competition or creating a
monopoly.
(3) Rates for each classification of coverage shall be based on
the claims experience of insurers within Oregon on that
classification of coverage unless that experience provides an
insufficient base for actuarially sound rates.
(4) Due consideration shall be given to past and prospective
loss experience within this state, to the hazards of
conflagration and catastrophe, to a reasonable margin for profit
and to contingencies, to dividends, savings or unabsorbed premium
deposits allowed or returned by insurers to their policyholders,
members or subscribers, to past and prospective expenses
specially applicable to this state, and to all other relevant
factors, including judgment factors deemed relevant, within this
state.
(5) In addition to subsection (4) of this section, rates for
home protection insurance may include provision for unreimbursed
costs of risk inspection and for loss costs under policies which
are terminated without premium because the related home sale is
not made.
(6) In the case of fire insurance rates, consideration may be
given to the experience of the fire insurance business during the
most recent five-year period for which such experience is
available.
(7) The systems of expense provisions included in the rates for
use by any insurer or group of insurers may differ from those of
other insurers or groups of insurers to reflect the requirements
of the operating methods of any such insurer or group of insurers
with respect to any class of insurance, or with respect to any
subdivision or combination thereof for which subdivision or
combination separate expenses are applicable.
(8) Risks may be grouped by classifications for the
establishment of rates and minimum premiums. Classification rates
for casualty, surety or inland marine risks may be modified to
produce rates for individual risks in accordance with rating
plans which establish standards for measuring variations in
hazards or expense provisions or both. Such standards may measure
any differences among risks that can be demonstrated to have a
probable effect upon losses or expenses.
(9) Due consideration shall be given, in the making and use of
rates for all insurance, to investment income earned by the
insurer, to insurer profits and to accumulated reserves for
vocational rehabilitation services and for claim costs related to
orders or awards made pursuant to ORS 656.278.
(10) The Director of the Department of Consumer and Business
Services, by rule, shall prescribe the conditions under which a
division of payroll between different manual classifications is
permitted for purposes of computing workers' compensation
premiums.
(11)(a) The { - director shall - } { + Insurance Rate
Review Board may + } not approve any workers' compensation rating
system that does not include a plan for rewarding employers,
however small, that have good loss experience or programs likely
to improve accident prevention. However, this paragraph is not
intended to require that all employers be experience rated.
(b) The { - director shall - } { + board may + } not
approve any workers' compensation rating system that does not
allow the insurer to include potential third party recovery as
one of the variables in the claims reserving process.
(12) At the time an insurer issues a workers' compensation
insurance policy to an insured for the first time, the insurer
shall give written notice to the insured of the rating
classifications to which the insured's employees are to be
assigned and shall provide an adequate description of work
activities in each classification. In the event an insurer
recommences coverage following its termination, the notice
required under this subsection must be given only if the gap in
coverage exceeds six months.
(13) If an insurer determines the workers' compensation
insurance policy of an insured needs reclassification, the
insurer:
(a) May bill an additional premium for the revised
classification after the insurer has provided the insured at
least 60 days' written notice of the reclassification.
(b) Shall bill retroactively to policy inception or date of
change in insured's operations for any reclassification that
results in a net reduction of premium.
(c) May, notwithstanding paragraph (a) of this subsection,
retroactively bill an insured for reclassification during the
policy year without prior notice of reclassification if the
insurer shows by a preponderance of the evidence that:
(A) The insured knew that the employees were misclassified, or
the insured was adequately informed by the insurer of the proper
classification for the insured's employees;
(B) The insured provided improper or inaccurate information
concerning its operations; or
(C) The insured's operations changed after the date information
on the employees was obtained from the insured.
(14) In consultation with system participants, the director
shall analyze the rating classification system to investigate
changes that simplify the system and reduce costs for employers
and insurers while preserving rate equity and minimizing the
potential for abuse. The director shall give particular emphasis
to the method of allocating payroll to rating classifications and
to alternatives to methods that require verifiable payroll
records. Upon completion of this analysis, the director shall
implement appropriate changes to the system.
(15) The director shall adopt rules to carry out the provisions
of this section and may by rule specify procedures relating to
rating and ratemaking by workers' compensation insurers.
(16) A rate increase based solely upon an insured's attaining
or exceeding 65 years of age shall be presumed to be unfairly
discriminatory unless the increase is clearly based on sound
actuarial principles or is related to actual or reasonably
anticipated experience.
SECTION 17. ORS 737.312 is amended to read:
737.312. Agreements may be made among insurers with respect to
the equitable apportionment among them of insurance which may be
afforded applicants who are in good faith entitled to such
insurance but who are unable to procure such insurance through
ordinary methods. Such insurers may agree among themselves on the
use of reasonable rate modifications for such insurance, such
agreements and rate modifications to be subject to the approval
of the { - Director of the Department of Consumer and Business
Services - } { + Insurance Rate Review Board + }.
SECTION 18. ORS 737.320 is amended to read:
737.320. (1) The { - Director of the Department of Consumer
and Business Services - } { + Insurance Rate Review Board + }
shall review title insurance filings { - , - } and each
workers' compensation insurance filing { - , as soon as
reasonably possible after they have been made in order - } to
determine whether they meet the requirements of this chapter.
(2) The effective date of each title and workers' compensation
insurance filing shall be { - the date specified therein but
not earlier than the 30th day after the date the filing is
received by the director or from the date of receipt of the
information furnished in support of a filing or specific portions
of such filing if such supporting information is required by the
director - } { + 14 days after the board issues an order
approving the filing + }. The waiting period may be extended by
the { - director - } { + board + } for not more than 30 days
if the { - director - } { + board + } gives written notice
within { - such - } { + the + } waiting period to the insurer
or rating organization { - which - } { + that + } made the
filing that the { - director - } { + board + } needs such
additional time for the consideration of such filing or specific
portions of such filing. Upon written application by such insurer
or rating organization, the { - director - } { + board + }
may authorize a filing or specific portions of such filing, which
the { - director - } { + board + } has reviewed, to become
effective before the expiration of the waiting period. A filing
or portions of a filing shall be deemed to meet the requirements
of this chapter unless disapproved by the { - director - }
{ + board + } within the waiting period or any extension
thereof.
(3) Filings of workers' compensation rates, rating plans and
rating systems by a workers' compensation rating organization
shall be limited to provisions for claim payment approved or
established by the { - director - } { + board + }, and shall
not include allowances for or recognition of expenses, taxes or
profit. A workers' compensation rating organization shall make
such filings with the { - director - } { + board + }, which
filings shall be subject to this section. The organization shall
also file the workers' compensation policy forms to be used by
its members. The filing shall include a report of investment
income.
(4) Filings of workers' compensation rates by an insurer shall
specify allowances for expenses, taxes and profits.
(5) The { - director - } { + board + } shall investigate
and evaluate all workers' compensation filings to determine
whether the filings meet the requirements of this chapter. The
{ - director - } { + board + } shall employ such experts and
other personnel as may be reasonably necessary to make such
investigation and evaluation, the cost of which shall be paid out
of the fund created under ORS 705.145.
(6) Notwithstanding the provisions of ORS 737.205 (1), the
{ - director - } { + board + } may require any person to
comply with the requirements of subsection (2) of this section if
the { - director - } { + board + } has good cause to believe
that a reasonable degree of competition does not exist in the
area with respect to the classification to which such rate is
applicable.
(7) The { - director - } { + board + } may require insurers
to use, as that portion of a rate filing that constitutes the
amount for claim payment, rates prescribed by the
{ - director - } { + board + } based upon rating information
determined pursuant to ORS 731.216 (3).
SECTION 19. ORS 737.322 is amended to read:
737.322. Notwithstanding any other provision of this chapter:
(1) The { - Director of the Department of Consumer and
Business Services - } { + Insurance Rate Review Board + } shall
adopt rules providing for approval of workers' compensation
rating plans that include provisions allowing for reasonable
retroactive application of experience rating modification
factors. Nothing in this subsection affects retrospective rating
plans.
(2) If the { - director - } { + board + } disapproves a
workers' compensation rate or rating plan and the insurer or
rating organization requests a hearing before the
{ - director - } { + board + }, the burden of proof is upon
the insurer or rating organization to prove that the filing meets
the requirements of this chapter.
(3) If the { - director - } { + board + } holds a hearing
on an order disapproving a workers' compensation rate, rating
plan or rating system, the insurer or rating or advisory
organization filing or using the rate, rating plan or rating
system shall pay to the
{ - director - } { + board + } the just and legitimate costs
of the hearing, including actual necessary expenses.
SECTION 20. ORS 737.325 is amended to read:
737.325. (1) Under { - such - } rules { - and regulations
as the Director of the Department of Consumer and Business
Services adopts, the director, - } { + adopted by the Insurance
Rate Review Board, the board, + } by written order, may suspend
or modify the requirement of filing as to any class of insurance,
or subdivision or combination thereof, or as to classes of risks,
for which the rates cannot practicably be filed before they are
used. Such orders { - , - } { + and + } rules { - and
regulations - } shall be made known to insurers and rating
organizations affected { - thereby - } { + by the orders and
rules + }. The { - director - } { + board + } may make such
examination as the
{ - director - } { + board + } deems advisable to ascertain
whether any rates affected by { - such - } { + the + } order
meet the standards set forth in ORS 737.310.
(2) Upon the written application of the insured, stating the
reasons therefor, filed with the { - director - }
{ + board + } and approved by the { - director - } { +
board + }, a rate in excess of that provided by a filing
otherwise applicable may be used on any specific risk.
SECTION 21. ORS 737.336 is amended to read:
737.336. (1) If within the waiting period or the extension
thereof, if any, as provided in ORS 737.320 (2), the
{ - Director of the Department of Consumer and Business
Services - } { + Insurance Rate Review Board + } finds that a
filing does not meet the requirements of this chapter, the
{ - director - } { + board + } shall send to the insurer or
rating organization { - which - } { + that + } made
{ - such - } { + the + } filing written notice of disapproval
of { - such - } { + the + } filing, specifying therein in
what respects the { - director - } { + board + } finds
{ - such - } { + the + } filing fails to meet the requirements
and stating that { - such - } { + the + } filing shall not
become effective.
(2) If the Director { + of the Department of Consumer and
Business Services + } has reason to believe that an insurer or
rating or advisory organization is not complying with the
requirements and standards of this chapter other than the
requirements and standards dealing with rates, rating plans or
rating systems, unless the director has reason to believe such
noncompliance is willful, the director shall give notice in
writing to such insurer or rating or advisory organization
stating in what manner such noncompliance is alleged to exist and
specifying a reasonable time, not less than 10 days after the
date of mailing, in which such noncompliance may be corrected.
SECTION 22. ORS 737.340 is amended to read:
737.340. { - (1) - } Any person aggrieved with respect to
any filing that is in effect, other than the insurer or rating
organization that made the filing, may make written application
to the { - Director of the Department of Consumer and Business
Services - } { + Insurance Rate Review Board + } for a hearing
on the filing. The application shall specify the grounds to be
relied upon by the applicant.
{ - (2) If the director finds that the application is made in
good faith, that the applicant would be so aggrieved if the
grounds are established, and that such grounds otherwise justify
holding such a hearing, the director shall do one of the
following: - }
{ - (a) Issue an order under ORS 737.045 (1). The director
shall not act under this paragraph if the filing concerns a rate,
rating plan or rating system subject to ORS 737.320 (1). - }
{ - (b) Hold a hearing, within 30 days after receipt of such
application, at a place designated by the director and upon not
less than 10 days' written notice to the applicant and to the
insurer or rating organization that made the filing. - }
SECTION 23. ORS 737.505 is amended to read:
737.505. (1) Every rating organization and every insurer
{ - which - } { + that + } makes its own rates, within a
reasonable time after receiving written request therefor and upon
payment of such reasonable charge as it may make, shall furnish
to any insured affected by a rate made by it, or to the
authorized representative of such insured, all pertinent
information as to such rate.
(2) Every rating organization and every insurer { - which - }
{ + that + } makes its own rates shall provide within this state
reasonable means whereby any person aggrieved by the application
of its rating system may be heard, in person or by the authorized
representative, on written request by the person or authorized
representative to review the manner in which such rating system
has been applied in connection with the insurance afforded the
person. If the rating organization or insurer fails to grant or
reject such request within 30 days after it is made, the
applicant may proceed in the same manner as if the application
had been rejected.
(3) Any party affected by the action of such rating
organization or such insurer on such request, within 30 days
after written notice of such action, may appeal to the
{ - Director of the Department of Consumer and Business
Services, who - } { + Insurance Rate Review Board, which + },
after a hearing held at a place designated by the
{ - director - } { + board + } upon not less than 10 days'
written notice to the appellant and to such rating organization
or insurer, shall affirm or reverse such action.
(4) Appeals to the Director { + of the Department of Consumer
and Business Services + } pursuant to ORS 737.318 with regard to
a final premium audit billing must be made within 60 days after
receipt of the billing.
(5) The director may, upon a showing of good cause, stay any
workers' compensation insurer's collection effort on a final
premium audit billing during the pendency of an appeal authorized
by subsection (4) of this section.
SECTION 24. ORS 737.526 is amended to read:
737.526. (1) Reasonable rules and plans may be promulgated by
the Director of the Department of Consumer and Business Services
for the interchange of data necessary for the application of
rating plans.
(2) In order to further uniform administration of rate
regulatory laws, the director { + , the Insurance Rate Review
Board + } and every insurer and rating organization may exchange
information and experience data with insurance supervisory
officials, insurers and rating organizations in other states and
may consult and cooperate with them with respect to rate making
and the application of rating systems.
SECTION 25. ORS 737.535 is amended to read:
737.535. No person shall willfully withhold information from or
knowingly give false or misleading information to the Director of
the Department of Consumer and Business Services, to any
statistical agency designated by the director, { + to the
Insurance Rate Review Board, + } to any rating organization, or
to any insurer, which will affect the rates or premiums
chargeable under this chapter.
SECTION 26. 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) 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 { + or by the
Insurance Rate Review Board + }. The director { - shall - }
{ + or board may + } not approve any form, plan or policy, or
the rates therefor, that would constitute a violation of
paragraph (a) of this subsection.
(3) This section does not apply to:
(a) Policies of life or health insurance;
(b) Insurance for public bodies as defined in ORS 30.260;
(c) 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) 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) 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) 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;
(g) 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 27. ORS 742.003 is amended to read:
742.003. (1) Except 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 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 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 - } { + the + } action to the
insurer proposing to deliver { - such - } { + the + } form
and when a form is disapproved the notice shall show
{ - wherein such - } { + how the + } 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 - } { + to consider the + }
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.
SECTION 28. ORS 742.490 is amended to read:
742.490. (1) Any rate, rating plan or rating system filed with
the { - Director of the Department of Consumer and Business
Services - } { + Insurance Rate Review Board + } for a motor
vehicle insurance policy offering liability, personal injury
protection or collision coverage, shall provide an appropriate
reduction in premium charges for such coverage if:
(a) The principal operator of the covered vehicle is an insured
55 years of age or older.
(b) The principal operator of the covered vehicle has
successfully completed, within the appropriate time as specified
in this subsection, a motor vehicle accident prevention course
approved by the Department of Transportation. To meet the
requirements of this subsection, a course must be completed no
more than three years prior to the beginning of the policy period
for which the discounted rate applies if the person is less than
70 years of age at the time of taking the course or no more than
two years prior to the beginning of the policy period for which
the discounted rate applies if the person is 70 years of age or
more at the time of taking the course.
(c) There are no persons under 25 years of age who regularly
operate the vehicle.
(d) The vehicle is not classified for underwriting purposes as
used for a business.
(2) If the person qualifying for a premium reduction under
subsection (1) of this section is the principal operator of two
or more vehicles, the premium discount shall apply to only one
vehicle. No more than one premium discount may be applied to one
vehicle.
SECTION 29. 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, 45 days' written notice. If
the insurer does not provide such notice, the insured may cancel
the renewal policy within 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 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
{ + or the Insurance Rate Review Board + } 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 30. ORS 743.015 is amended to read:
743.015. (1) All credit life and credit health insurance
policies subject to ORS 743.371 to 743.380, and all certificates
of insurance, notices of proposed insurance, applications for
insurance, indorsements and riders used in connection with such
kinds of policies, delivered or issued for delivery in this state
and the schedules of premium rates pertaining thereto shall be
filed with the { - Director of the Department of Consumer and
Business Services - } { + Insurance Rate Review Board + }. Such
forms are subject to approval, disapproval or withdrawal of
approval by the Director { + of the Department of Consumer and
Business Services or the board + } as provided in ORS 742.003,
742.005 and 742.007.
(2) An insurer may revise the schedules of premium rates from
time to time and shall file the revised schedules with the
{ - director - } { + board + }. An insurer may not issue any
credit life or credit health insurance policy for which the
premium rate exceeds that determined by the schedules of the
insurer as then on file with the { - director - } { +
board + }.
(3) If a group policy of credit life or credit health insurance
has been or is delivered in another state, the insurer shall file
only the group certificate, the individual application and the
notice of proposed insurance delivered or issued for delivery in
this state as specified in ORS 743.377 (2) and (4). The
{ - director - } { + board + } shall approve the group
certificate, the individual application and the notice of
proposed insurance if the forms conform with the requirements
specified in ORS 743.377 (2) and (4) and the schedules of premium
rates applicable to the insurance evidenced by the certificate or
notice are not in excess of the insurer's schedules of premium
rates filed with the
{ - director - } { + board + }.
SECTION 31. ORS 743.018 is amended to read:
743.018. (1) { - Except for group life and health insurance,
and except as provided in ORS 743.015, - } Every insurer shall
file with the { - Director of the Department of Consumer and
Business Services - } { + Insurance Rate Review Board + } all
schedules and tables of premium rates for life and health
insurance to be used on risks in this state, and shall file any
amendments to or corrections of such schedules and tables.
(2) Except as provided in ORS 743.737 and 743.760 and
subsection (3) of this section, a rate filing by a carrier for
any of the following health benefit plans subject to ORS 743.730
to 743.773 shall be available for public inspection immediately
upon submission of the filing to the { - director - } { +
board + }:
(a) Health benefit plans for small employers.
(b) Portability health benefit plans.
(c) Individual health benefit plans.
(3) The { - director - } { + board + }, upon request by a
carrier, may exempt from disclosure any part of the filing that
the { - director - } { + board + } determines to contain
trade secrets and that would, if disclosed, harm competition. The
part that the { - director - } { + board + } determines to be
exempt from disclosure shall be considered confidential for
purposes of ORS 705.137. The { - director - } { + board + }
may not disclose a part of a filing subject to a carrier's
request pending the { - director's - } { + board's + }
determination under this subsection.
SECTION 32. ORS 743.405 is amended to read:
743.405. An individual health insurance policy must meet the
following requirements:
(1) The entire money and other considerations therefor shall be
expressed therein.
(2) The time at which the insurance takes effect and terminates
shall be expressed therein.
(3) It shall purport to insure only one person, except that a
policy may insure, originally or by subsequent amendment, upon
the application of an adult member of a family who shall be
deemed the policyholder, any two or more eligible members of that
family, including husband, wife, dependent children or any
children under a specified age which shall not exceed 19 years
and any other person dependent upon the policyholder.
(4) The policy may not be issued individually to an individual
in a group of persons as described in ORS 743.522 for the purpose
of separating the individual from health insurance benefits
offered or provided in connection with a group health benefit
plan.
(5) Except as provided in ORS 743.498, the style, arrangement
and overall appearance of the policy may not give undue
prominence to any portion of the text, and every printed portion
of the text of the policy and of any indorsements or attached
papers shall be plainly printed in lightfaced type of a style in
general use, the size of which shall be uniform and not less than
10 point with a lower case unspaced alphabet length not less than
120 point. Captions shall be printed in not less than 12-point
type. As used in this subsection, 'text' includes all printed
matter except the name and address of the insurer, name or title
of the policy, the brief description if any, and captions and
subcaptions.
(6) The exceptions and reductions of indemnity must be set
forth in the policy. Except those required by ORS 743.411 to
743.477, 743A.160 and 743A.164, exceptions and reductions shall
be printed at the insurer's option either included with the
applicable benefit provision or under an appropriate caption such
as EXCEPTIONS, or EXCEPTIONS AND REDUCTIONS. However, if an
exception or reduction specifically applies only to a particular
benefit of the policy, a statement of the exception or reduction
must be included with the applicable benefit provision.
(7) Each form constituting the policy, including riders and
indorsements, must be identified by a form number in the lower
left-hand corner of the first page of the policy.
(8) The policy may not contain provisions purporting to make
any portion of the charter, rules, constitution or bylaws of the
insurer a part of the policy unless such portion is set forth in
full in the policy, except in the case of the incorporation of or
reference to a statement of rates or classification of risks, or
short rate table filed with the { - Director of the Department
of Consumer and Business Services - } { + Insurance Rate Review
Board + }.
SECTION 33. ORS 743.527 is amended to read:
743.527. (1) Every group health insurance policy delivered or
issued for delivery in this state shall contain in substance the
following provisions, applicable to the coverage for hospital or
medical services or expenses provided under the policy:
(a) A provision that, when the premium for the policy or any
part thereof is paid by an employer under the terms of a
collective bargaining agreement, if there is a cessation of work
by employees insured under the policy due to a strike or lockout,
the policy, upon timely payment of the premium, will continue in
effect with respect to those employees insured by the policy on
the date of the cessation of work who continue to pay their
individual contribution and who assume and pay the contribution
due from the employer.
(b) A provision that, when an employee insured under the policy
pays a contribution pursuant to paragraph (a) of this subsection,
if the policyholder is not a trustee of a fund established or
maintained in whole or in part by an employer, the employee's
individual contribution shall be:
(A) The rate in the policy, on the date cessation of work
occurs, applicable to an individual in the class to which the
employee belongs as set forth in the policy; or
(B) If the policy does not provide for a rate applicable to
individuals, an amount equal to the amount determined by dividing
the total monthly premium in effect under the policy at the date
of cessation of work by the total number of persons insured under
the policy on such date.
(c) A provision that, when an employee insured under the policy
pays a contribution pursuant to paragraph (a) of this subsection,
if the policyholder is a trustee of a fund established or
maintained in whole or in part by an employer, the employee's
individual contribution shall be the amount which the employee
and employer would have been required to contribute if the
cessation of work had not occurred.
(2) Every group health insurance policy delivered or issued for
delivery in this state may contain in substance the following
provisions applicable to the coverage for hospital or medical
services or expenses provided under the policy:
(a) A provision that, when employees insured under the policy
pay contributions pursuant to subsection (1)(a) of this section,
the continuation of insurance under the policy is contingent upon
the collection of individual contributions by the union
representing the employees when the policyholder is not a trustee
and by the policyholder or the policyholder's agent when the
policyholder is a trustee.
(b) A provision that, when employees insured under the policy
pay contributions pursuant to subsection (1)(a) of this section,
the continuation of insurance under the policy on each employee
is contingent upon timely payment of contributions by the
employees and timely payment of the premium by the entity
responsible for collecting the individual contributions.
(c) A provision that, when employees insured under the policy
pay contributions pursuant to subsection (1)(a) of this section,
each individual premium rate under the policy may be increased by
not more than 20 percent, or by any higher percentage approved by
the { - Director of the Department of Consumer and Business
Services - } { + Insurance Rate Review Board + }, during the
period of cessation of work in order to provide sufficient
compensation to the insurer for increased administrative costs
and increased mortality and morbidity. If the policy contains the
provision allowed under this paragraph, an employee's
contribution paid under subsection (1)(a) of this section shall
be increased by the same percentage.
(d) A provision that, when the policy is a policy insuring
employees and which may continue in effect as provided in
subsection (1)(a) of this section, if the premium is unpaid at
the date of cessation of work and the premium became due prior to
such cessation of work, the continuation of insurance is
contingent upon payment of the premium prior to the date the next
premium becomes due under the terms of the policy.
(e) Any provision with respect to the continuation of the
policy as provided in subsection (1)(a) of this section that the
Director { + of the Department of Consumer and Business
Services + } may approve.
(3) Nothing in this section shall be deemed to limit any right
which the insurer may have in accordance with the terms of a
policy to increase or decrease the premium rates before, during
or after a cessation of work by employees insured under the
policy when the insurer had the right to increase the premium
rates even if the cessation of work did not occur. If such a
premium rate change is made, it shall be effective on such date
as the insurer shall determine in accordance with the terms of
the policy.
(4) Nothing in this section shall be deemed to require
continuation of any coverage in a group health insurance policy
insuring employees and which may continue in effect as provided
in subsection (1)(a) of this section for longer than:
(a) The time that 75 percent of insured employees continue such
coverage;
(b) For an individual employee, the time at which the employee
takes full-time employment with another employer; or
(c) Six months after cessation of work by the insured
employees.
SECTION 34. ORS 743.737 is amended to read:
743.737. Health benefit plans covering small employers shall be
subject to the following provisions:
(1) A preexisting conditions provision in a small employer
health benefit plan shall apply only to a condition for which
medical advice, diagnosis, care or treatment was recommended or
received during the six-month period immediately preceding the
enrollment date of an enrollee or late enrollee. As used in this
section, the enrollment date of an enrollee shall be the earlier
of the effective date of coverage or the first day of any
required group eligibility waiting period and the enrollment date
of a late enrollee shall be the effective date of coverage.
(2) A preexisting conditions provision in a small employer
health benefit plan shall terminate its effect as follows:
(a) For an enrollee, not later than the first of the following
dates:
(A) Six months following the enrollee's effective date of
coverage; or
(B) Ten months following the start of any required group
eligibility waiting period.
(b) For a late enrollee, not later than 12 months following the
late enrollee's effective date of coverage.
(3) In applying a preexisting conditions provision to an
enrollee or late enrollee, except as provided in this subsection,
all small employer health benefit plans shall reduce the duration
of the provision by an amount equal to the enrollee's or late
enrollee's aggregate periods of creditable coverage if the most
recent period of creditable coverage is ongoing or ended within
63 days of the enrollment date in the new small employer health
benefit plan. The crediting of prior coverage in accordance with
this subsection shall be applied without regard to the specific
benefits covered during the prior period. This subsection does
not preclude, within a small employer health benefit plan,
application of:
(a) An affiliation period that does not exceed two months for
an enrollee or three months for a late enrollee; or
(b) An exclusion period for specified covered services, as
established by the Health Insurance Reform Advisory Committee,
applicable to all individuals enrolling for the first time in the
small employer health benefit plan.
(4) Late enrollees may be excluded from coverage for up to 12
months or may be subjected to a preexisting conditions provision
for up to 12 months. If both an exclusion from coverage period
and a preexisting conditions provision are applicable to a late
enrollee, the combined period shall not exceed 12 months.
(5) Each small employer health benefit plan shall be renewable
with respect to all eligible enrollees at the option of the
policyholder, small employer or contract holder except:
(a) For nonpayment of the required premiums by the
policyholder, small employer or contract holder.
(b) For fraud or misrepresentation of the policyholder, small
employer or contract holder or, with respect to coverage of
individual enrollees, the enrollees or their representatives.
(c) When the number of enrollees covered under the plan is less
than the number or percentage of enrollees required by
participation requirements under the plan.
(d) For noncompliance with the small employer carrier's
employer contribution requirements under the health benefit plan.
(e) When the carrier discontinues offering or renewing, or
offering and renewing, all of its small employer health benefit
plans in this state or in a specified service area within this
state. In order to discontinue plans under this paragraph, the
carrier:
(A) Must give notice of the decision to the Director of the
Department of Consumer and Business Services and to all
policyholders covered by the plans;
(B) May not cancel coverage under the plans for 180 days after
the date of the notice required under subparagraph (A) of this
paragraph if coverage is discontinued in the entire state or,
except as provided in subparagraph (C) of this paragraph, in a
specified service area;
(C) May not cancel coverage under the plans for 90 days after
the date of the notice required under subparagraph (A) of this
paragraph if coverage is discontinued in a specified service area
because of an inability to reach an agreement with the health
care providers or organization of health care providers to
provide services under the plans within the service area; and
(D) Must discontinue offering or renewing, or offering and
renewing, all health benefit plans issued by the carrier in the
small employer market in this state or in the specified service
area.
(f) When the carrier discontinues offering and renewing a small
employer health benefit plan in a specified service area within
this state because of an inability to reach an agreement with the
health care providers or organization of health care providers to
provide services under the plan within the service area. In order
to discontinue a plan under this paragraph, the carrier:
(A) Must give notice to the director and to all policyholders
covered by the plan;
(B) May not cancel coverage under the plan for 90 days after
the date of the notice required under subparagraph (A) of this
paragraph; and
(C) Must offer in writing to each small employer covered by the
plan, all other small employer health benefit plans that the
carrier offers in the specified service area. The carrier shall
issue any such plans pursuant to the provisions of ORS 743.733 to
743.737. The carrier shall offer the plans at least 90 days prior
to discontinuation.
(g) When the carrier discontinues offering or renewing, or
offering and renewing, a health benefit plan for all small
employers in this state or in a specified service area within
this state, other than a plan discontinued under paragraph (f) of
this subsection. With respect to plans that are being
discontinued, the carrier must:
(A) Offer in writing to each small employer covered by the
plan, all health benefit plans that the carrier offers in the
specified service area.
(B) Issue any such plans pursuant to the provisions of ORS
743.733 to 743.737.
(C) Offer the plans at least 90 days prior to discontinuation.
(D) Act uniformly without regard to the claims experience of
the affected policyholders or the health status of any current or
prospective enrollee.
(h) When the director orders the carrier to discontinue
coverage in accordance with procedures specified or approved by
the director upon finding that the continuation of the coverage
would:
(A) Not be in the best interests of the enrollees; or
(B) Impair the carrier's ability to meet contractual
obligations.
(i) When, in the case of a small employer health benefit plan
that delivers covered services through a specified network of
health care providers, there is no longer any enrollee who lives,
resides or works in the service area of the provider network.
(j) When, in the case of a health benefit plan that is offered
in the small employer market only through one or more bona fide
associations, the membership of an employer in the association
ceases and the termination of coverage is not related to the
health status of any enrollee.
(k) For misuse of a provider network provision. As used in this
paragraph, 'misuse of a provider network provision' means a
disruptive, unruly or abusive action taken by an enrollee that
threatens the physical health or well-being of health care staff
and seriously impairs the ability of the carrier or its
participating providers to provide services to an enrollee. An
enrollee under this paragraph retains the rights of an enrollee
under ORS 743.804.
(L) A small employer carrier may modify a small employer health
benefit plan at the time of coverage renewal. The modification is
not a discontinuation of the plan under paragraphs (e) and (g) of
this subsection.
(6) Notwithstanding any provision of subsection (5) of this
section to the contrary, any small employer carrier health
benefit plan subject to the provisions of ORS 743.733 to 743.737
may be rescinded by a small employer carrier for fraud, material
misrepresentation or concealment by a small employer and the
coverage of an enrollee may be rescinded for fraud, material
misrepresentation or concealment by the enrollee.
(7) A small employer carrier may continue to enforce reasonable
employer participation and contribution requirements on small
employers applying for coverage. However, participation and
contribution requirements shall be applied uniformly among all
small employer groups with the same number of eligible employees
applying for coverage or receiving coverage from the small
employer carrier. In determining minimum participation
requirements, a carrier shall count only those employees who are
not covered by an existing group health benefit plan, Medicaid,
Medicare, CHAMPUS, Indian Health Service or a publicly sponsored
or subsidized health plan, including but not limited to the
Oregon Health Plan.
(8) Premium rates for small employer health benefit plans shall
be subject to the following provisions:
(a) Each small employer carrier issuing health benefit plans to
small employers must file its geographic average rate for a
rating period with the { - director - } { + Insurance Rate
Review Board + } at least once every 12 months.
(b)(A) The premium rates charged during a rating period for
health benefit plans issued to small employers may not vary from
the geographic average rate by more than 50 percent on or after
January 1, 2008, except as provided in subparagraph (D) of this
paragraph.
(B) The variations in premium rates described in subparagraph
(A) of this paragraph shall be based solely on the factors
specified in subparagraph (C) of this paragraph. A small employer
carrier may elect which of the factors specified in subparagraph
(C) of this paragraph apply to premium rates for small employers.
The factors that are based on contributions or participation may
vary with the size of the employer. All other factors must be
applied in the same actuarially sound way to all small employers.
(C) The variations in premium rates described in subparagraph
(A) of this paragraph may be based on one or more of the
following factors:
(i) The ages of enrolled employees and their dependents;
(ii) The level at which the small employer contributes to the
premiums payable for enrolled employees and their dependents;
(iii) The level at which eligible employees participate in the
health benefit plan;
(iv) The level at which enrolled employees and their dependents
engage in tobacco use;
(v) The level at which enrolled employees and their dependents
engage in health promotion, disease prevention or wellness
programs;
(vi) The period of time during which a small employer retains
uninterrupted coverage in force with the same small employer
carrier; and
(vii) Adjustments to reflect the provision of benefits not
required to be covered by the basic health benefit plan and
differences in family composition.
(D)(i) The premium rates determined in accordance with this
paragraph may be further adjusted by a small employer carrier to
reflect the expected claims experience of a small employer, but
the extent of this adjustment may not exceed five percent of the
annual premium rate otherwise payable by the small employer. The
adjustment under this subparagraph may not be cumulative from
year to year.
(ii) Except for small employers with 25 or fewer employees, the
premium rates adjusted under this subparagraph are not subject to
the provisions of subparagraph (A) of this paragraph.
(E) A small employer carrier shall apply the carrier's schedule
of premium rate variations as approved by the { - Director of
the Department of Consumer and Business Services - } { +
Insurance Rate Review Board + } and in accordance with this
paragraph. Except as otherwise provided in this section, the
premium rate established for a health benefit plan by a small
employer carrier shall apply uniformly to all employees of the
small employer enrolled in that plan.
(c) Except as provided in paragraph (b) of this subsection, the
variation in premium rates between different small employer
health benefit plans offered by a small employer carrier must be
based solely on objective differences in plan design or coverage
and must not include differences based on the risk
characteristics of groups assumed to select a particular health
benefit plan.
(d) A small employer carrier may not increase the rates of a
health benefit plan issued to a small employer more than once in
a 12-month period { + without the approval of the board + }.
Annual rate increases shall be effective on the plan anniversary
date of the health benefit plan issued to a small employer. The
percentage increase in the premium rate charged to a small
employer for a new rating period may not exceed the sum of the
following:
(A) The percentage change in the geographic average rate
measured from the first day of the prior rating period to the
first day of the new period; and
(B) Any adjustment attributable to changes in age, except an
additional adjustment may be made to reflect the provision of
benefits not required to be covered by the basic health benefit
plan and differences in family composition.
(e) Premium rates for health benefit plans shall comply with
the requirements of this section.
(9) In connection with the offering for sale of any health
benefit plan to a small employer, each small employer carrier
shall make a reasonable disclosure as part of its solicitation
and sales materials of:
(a) The full array of health benefit plans that are offered to
small employers by the carrier;
(b) The authority of the carrier to adjust rates, and the
extent to which the carrier will consider age, family composition
and geographic factors in establishing and adjusting rates;
(c) Provisions relating to renewability of policies and
contracts; and
(d) Provisions affecting any preexisting conditions provision.
(10)(a) Each small employer carrier shall maintain at its
principal place of business a complete and detailed description
of its rating practices and renewal underwriting practices,
including information and documentation that demonstrate that its
rating methods and practices are based upon commonly accepted
actuarial practices and are in accordance with sound actuarial
principles.
(b) Each small employer carrier shall file with the director at
least once every 12 months an actuarial certification that the
carrier is in compliance with ORS 743.733 to 743.737 and that the
rating methods of the small employer carrier are actuarially
sound. Each such certification shall be in a uniform form and
manner and shall contain such information as specified by the
director. A copy of such certification shall be retained by the
small employer carrier at its principal place of business.
(c) A small employer carrier shall make the information and
documentation described in paragraph (a) of this subsection
available to the director upon request. Except as provided in ORS
743.018 and except in cases of violations of ORS 743.733 to
743.737, the information shall be considered proprietary and
trade secret information and shall not be subject to disclosure
by the director to persons outside the Department of Consumer and
Business Services except as agreed to by the small employer
carrier or as ordered by a court of competent jurisdiction.
(11) A small employer carrier shall not provide any financial
or other incentive to any insurance producer that would encourage
the insurance producer to market and sell health benefit plans of
the carrier to small employer groups based on a small employer
group's anticipated claims experience.
(12) For purposes of this section, the date a small employer
health benefit plan is continued shall be the anniversary date of
the first issuance of the health benefit plan.
(13) A small employer carrier must include a provision that
offers coverage to all eligible employees and to all dependents
to the extent the employer chooses to offer coverage to
dependents.
(14) All small employer health benefit plans shall contain
special enrollment periods during which eligible employees and
dependents may enroll for coverage, as provided in 42 U.S.C.
300gg as amended and in effect on July 1, 1997.
SECTION 35. ORS 743.760 is amended to read:
743.760. (1) As used in this section:
(a) 'Carrier' means an insurer authorized to issue a policy of
health insurance in this state. 'Carrier' does not include a
multiple employer welfare arrangement.
(b)(A) 'Eligible individual' means an individual who:
(i) Has left coverage that was continuously in effect for a
period of 180 days or more under one or more Oregon group health
benefit plans, has applied for portability coverage not later
than the 63rd day after termination of group coverage issued by
an Oregon carrier and is an Oregon resident at the time of such
application; or
(ii) On or after January 1, 1998, meets the eligibility
requirements of 42 U.S.C. 300gg-41, as amended and in effect on
January 1, 1998, has applied for portability coverage not later
than the 63rd day after termination of group coverage issued by
an Oregon carrier and is an Oregon resident at the time of such
application.
(B) Except as provided in subsection (12) of this section, '
eligible individual' does not include an individual who remains
eligible for the individual's prior group coverage or would
remain eligible for prior group coverage in a plan under the
federal Employee Retirement Income Security Act of 1974, as
amended, were it not for action by the plan sponsor relating to
the actual or expected health condition of the individual, or who
is covered under another health benefit plan at the time that
portability coverage would commence or is eligible for the
federal Medicare program.
(c) 'Portability health benefit plans' and 'portability plans'
mean health benefit plans for eligible individuals that are
required to be offered by all carriers offering group health
benefit plans and that have been approved by the Director of the
Department of Consumer and Business Services in accordance with
this section.
(2)(a) In order to improve the availability and affordability
of health benefit plans for individuals leaving coverage under
group health benefit plans, the Health Insurance Reform Advisory
Committee created under ORS 743.745 shall submit to the director
two portability health benefit plans pursuant to ORS 743.745. One
plan shall be in the form of insurance and the second plan shall
be consistent with the type of coverage provided by health
maintenance organizations. For each type of portability plan, the
committee shall design and submit to the director:
(A) A prevailing benefit plan, which shall reflect the benefit
coverages that are prevalent in the group health insurance
market; and
(B) A low cost benefit plan, which shall emphasize
affordability for eligible individuals.
(b) Except as provided in ORS 743.730 to 743.773, no law
requiring the coverage or the offer of coverage of a health care
service or benefit shall apply to portability health benefit
plans.
(3) The director shall approve the portability health benefit
plans if the director determines that the plans provide for
appropriate accessibility and affordability of needed health care
services and comply with all other provisions of this section.
(4) After the director's approval of the portability plans
submitted by the committee under this section, each carrier
offering group health benefit plans shall submit to the director
the policy form or forms containing at least one low cost benefit
and one prevailing benefit portability plan offered by the
carrier that meets the required standards. Each policy form must
be submitted as prescribed by the director and is subject to
review and approval pursuant to ORS 742.003.
(5) Within 180 days after approval by the director of the
portability plans submitted by the committee, as a condition of
transacting group health insurance in this state, each carrier
offering group health benefit plans shall make available to
eligible individuals the prevailing benefit and low cost benefit
portability plans that have been submitted by the carrier and
approved by the director under subsection (4) of this section.
(6) A carrier offering group health benefit plans shall issue
to an eligible individual who is leaving or has left group
coverage provided by that carrier any portability plan offered by
the carrier if the eligible individual applies for the plan
within 63 days of termination of prior coverage and agrees to
make the required premium payments and to satisfy the other
provisions of the portability plan.
(7) Premium rates for portability plans shall be subject to the
following provisions:
(a) Each carrier must file the geographic average rate for each
of its portability health benefit plans for a rating period with
the { - director - } { + Insurance Rate Review Board + } on
or before March 15 of each year.
(b) The premium rates charged during the rating period for each
portability health benefit plan shall not vary from the
geographic average rate, except that the premium rate may be
adjusted to reflect differences in benefit design, family
composition and age. Adjustments for age shall comply with the
following:
(A) For each plan, the variation between the lowest premium
rate and the highest premium rate shall not exceed 100 percent of
the lowest premium rate.
(B) Premium variations shall be determined by applying
uniformly the carrier's schedule of age adjustments for
portability plans as approved by the { - director - } { +
board + }.
(c) Premium variations between the portability plans and the
rest of the carrier's group plans must be based solely on
objective differences in plan design or coverage and must not
include differences based on the actual or expected health status
of individuals who select portability health benefit plans. For
purposes of determining the premium variations under this
paragraph, a carrier may:
(A) Pool all portability plans with all group health benefit
plans; or
(B) Pool all portability plans for eligible individuals leaving
small employer group health benefit plan coverage with all plans
offered to small employers and pool all portability plans for
eligible individuals leaving other group health benefit plan
coverage with all health benefit plans offered to such other
groups.
(d) A carrier may not increase the rates of a portability plan
issued to an enrollee { - more than once in any 12-month
period - } { + without the approval of the board + }. Annual
rate increases shall be effective on the anniversary date of the
plan issued to the enrollee. The percentage increase in the
premium rate charged to an enrollee for a new rating period may
not exceed the average increase in the rest of the carrier's
applicable group health benefit plans plus an adjustment for age.
(8) No portability plans under this section may contain
preexisting conditions provisions, exclusion periods, waiting
periods or other similar limitations on coverage.
(9) Portability health benefit plans shall be renewable with
respect to all enrollees at the option of the enrollee, except:
(a) For nonpayment of the required premiums by the
policyholder;
(b) For fraud or misrepresentation by the policyholder;
(c) When the carrier elects to discontinue offering all of its
group health benefit plans in accordance with ORS 743.737 and
743.754; or
(d) When the director orders the carrier to discontinue
coverage in accordance with procedures specified or approved by
the director upon finding that the continuation of the coverage
would:
(A) Not be in the best interests of the enrollees; or
(B) Impair the carrier's ability to meet its contractual
obligations.
(10)(a) Each carrier offering group health benefit plans shall
maintain at its principal place of business a complete and
detailed description of its rating practices and renewal
underwriting practices relating to its portability plans,
including information and documentation that demonstrate that its
rating methods and practices are based upon commonly accepted
actuarial practices and are in accordance with sound actuarial
principles.
(b) Each such carrier shall file with the director annually on
or before March 15 an actuarial certification that the carrier is
in compliance with this section and that its rating methods are
actuarially sound. Each such certification shall be in a form and
manner and shall contain such information as specified by the
director. A copy of such certification shall be retained by the
carrier at its principal place of business.
(c) Each such carrier shall make the information and
documentation described in paragraph (a) of this subsection
available to the director upon request. Except as provided in ORS
743.018 and except in cases of violations of the Insurance Code,
the information is proprietary and trade secret information and
shall not be subject to disclosure by the director to persons
outside the Department of Consumer and Business Services except
as agreed to by the carrier or as ordered by a court of competent
jurisdiction.
(11) A carrier offering group health benefit plans shall not
provide any financial or other incentive to any insurance
producer that would encourage the insurance producer to market
and sell portability plans of the carrier on the basis of an
eligible individual's anticipated claims experience.
(12) An individual who is eligible to obtain a portability plan
in accordance with this section may obtain such a plan regardless
of whether the eligible individual qualifies for a period of
continuation coverage under federal law or under ORS 743.600 or
743.610. However, an individual who has elected such continuation
coverage is not eligible to obtain a portability plan until the
continuation coverage has been discontinued by the individual or
has been exhausted.
SECTION 36. ORS 743.767 is amended to read:
743.767. Premium rates for individual health benefit plans
shall be subject to the following provisions:
(1) Each carrier must file the geographic average rate for its
individual health benefit plans for a rating period with the
{ - Director of the Department of Consumer and Business
Services - } { + Insurance Rate Review Board + } on or before
March 15 of each year.
(2) The premium rates charged during a rating period for
individual health benefit plans issued to individuals shall not
vary from the individual geographic average rate, except that the
premium rate may be adjusted to reflect differences in benefit
design, family composition and age. For age adjustments to the
individual plans, a carrier shall apply uniformly its schedule of
age adjustments for individual health benefit plans as approved
by the { - director - } { + board + }.
(3) A carrier may not increase the rates of an individual
health benefit plan { - more than once in a 12-month period - }
except as approved by the { - director - } { + board + }.
Annual rate increases shall be effective on the anniversary date
of the individual health benefit plan's issuance. The percentage
increase in the premium rate charged for an individual health
benefit plan for a new rating period may not exceed the sum of
the following:
(a) The percentage change in the carrier's geographic average
rate for its individual health benefit plan measured from the
first day of the prior rating period to the first day of the new
period; and
(b) Any adjustment attributable to changes in age and
differences in benefit design and family composition.
(4) Notwithstanding any other provision of this section, a
carrier that imposes an individual coverage waiting period
pursuant to ORS 743.766 may impose a monthly premium rate
surcharge for a period not to exceed six months and in an amount
not to exceed the percentage by which the rates for coverage
under the Oregon Medical Insurance Pool exceed the rates
established by the Oregon Medical Insurance Pool Board as
applicable for individual risks under ORS 735.625. The surcharge
shall be approved by the Director of the Department of Consumer
and Business Services and, in combination with the waiting
period, shall not exceed the actuarial value of a six-month
preexisting conditions provision.
SECTION 37. Section 6, chapter 781, Oregon Laws 2003, as
amended by section 2a, chapter 574, Oregon Laws 2007, is amended
to read:
{ + Sec. 6. + } (1) If an insurer obtains coverage with the
State Accident Insurance Fund Corporation for medical
professional liability insurance issued by the insurer to a
doctor or nurse practitioner to whom section 1, chapter 781,
Oregon Laws 2003, applies, the insurer shall reduce the premium
charged to the doctor or nurse practitioner in a manner that
fully recognizes savings made available by coverage offered under
section 1, chapter 781, Oregon Laws 2003.
(2) An insurer to which subsection (1) of this section applies
shall demonstrate the difference in its rates for medical
professional liability insurance for purposes of subsection (1)
of this section in its filing of rates with the { - Director of
the Department of Consumer and Business Services - } { +
Insurance Rate Review Board + }.
SECTION 38. { + Notwithstanding the term of office specified
by section 2 of this 2009 Act, of the members first appointed to
the Insurance Rate Review Board under section 2 of this 2009 Act:
(1) One shall serve for a term ending July 1, 2011;
(2) Two shall serve for terms ending July 1, 2012; and
(3) Two shall serve for terms ending July 1, 2013. + }
SECTION 39. { + Sections 3 to 6 of this 2009 Act and the
amendments to ORS 83.580, 731.260, 731.754, 731.804, 735.230,
737.045, 737.205, 737.207, 737.209, 737.310, 737.312, 737.320,
737.322, 737.325, 737.336, 737.340, 737.505, 737.526, 737.535,
737.600, 742.003, 742.490, 742.706, 743.015, 743.018, 743.405,
743.527, 743.737, 743.760 and 743.767 and section 6, chapter 781,
Oregon Laws 2003, by sections 7 to 37 of this 2009 Act become
operative on January 1, 2010. + }
SECTION 40. { + Sections 3 to 6 of this 2009 Act and the
amendments to ORS 83.580, 731.260, 731.754, 731.804, 735.230,
737.045, 737.205, 737.207, 737.209, 737.310, 737.312, 737.320,
737.322, 737.325, 737.336, 737.340, 737.505, 737.526, 737.535,
737.600, 742.003, 742.490, 742.706, 743.015, 743.018, 743.405,
743.527, 743.737, 743.760 and 743.767 and section 6, chapter 781,
Oregon Laws 2003, by sections 7 to 37 of this 2009 Act apply to
all policies of insurance issued or renewed on or after January
1, 2010. + }
SECTION 41. { + This 2009 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2009 Act takes effect
July 1, 2009. + }
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