76th OREGON LEGISLATIVE ASSEMBLY--2011 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 1431
 
                         Senate Bill 718
 
Sponsored by COMMITTEE ON GENERAL GOVERNMENT, CONSUMER AND SMALL
  BUSINESS PROTECTION
 
 
                             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.
 
  Requires Director of Department of Consumer and Business
Services to post to website of Department of Consumer and
Business Services detailed rationale for approval of any health
insurance rate filing that increases rates.
 
                        A BILL FOR AN ACT
Relating to health insurance rate review; creating new
  provisions; and amending ORS 742.003 and 743.019.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 743.019 is amended to read:
  743.019. (1) When an insurer files a schedule or table of
premium rates for individual, portability or small employer
health insurance   { - under ORS 743.018, - }  { +  for approval
by + } the Director of the Department of Consumer and Business
Services { + , the director + } shall open a 30-day public
comment period on the rate filing that begins on the date the
insurer files the schedule or table of premium rates. The
director shall post all comments to the website of the Department
of Consumer and Business Services without delay.
  (2) The director shall give written notice to an insurer
approving or disapproving a rate filing or, with the written
consent of the insurer, modifying a rate filing submitted under
ORS 743.018 no later than 10 business days after the close of the
public comment period. The notice shall comply with the
requirements of ORS 183.415.
   { +  (3) If the director approves a rate filing that increases
rates above the rates previously approved by the director, the
director shall make available on the department's website a
detailed explanation of how the increased rates:
  (a) Meet standards described in ORS 743.018 (4) and (5); and
  (b) Are not subject to disapproval under ORS 742.005. + }
  SECTION 2.  { + The amendments to ORS 743.019 by section 1 of
this 2011 Act apply to rate filings for periods of coverage that
begin on or after the effective date of this 2011 Act. + }
  SECTION 3. ORS 742.003 is amended to read:
  742.003. (1) Except where otherwise provided by law, no 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 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)  { + Except as provided for rate filings under ORS
743.019, + } the director shall within 30 days after the filing
of any   { - such - } form approve or disapprove the form. The
director shall give written notice of   { - such action - }  { +
the approval or disapproval + } to the insurer proposing to
deliver   { - such - }  { +  the + } form and when a form is
disapproved the notice shall   { - show wherein such form - }
 { +  explain why 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 - }  { +  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.
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