Bill Text: OR HB2932 | 2013 | Regular Session | Introduced

Oregon House Bill 2932 (Prior Session Legislation)

Bill Title: Relating to insurance policies that cover motor vehicles declared to be a total loss; declaring an emergency.

Spectrum: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2932 Detail]

Download: Oregon-2013-HB2932-Introduced.html



     77th OREGON LEGISLATIVE ASSEMBLY--2013 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 2938

                         House Bill 2932

Sponsored by COMMITTEE ON CONSUMER PROTECTION AND GOVERNMENT
  EFFICIENCY

                             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.

  Prohibits insurer from denying insured's claim under motor
vehicle insurance policy if insurer learns that motor vehicle was
previously declared total loss. Permits insurer to cancel
insurance policy under specified conditions.
  Provides that cancellation of motor vehicle insurance policy
because insurer learns that motor vehicle was previously declared
total loss is not effective unless insurer refunds premium
payments insured made under policy or renewal of policy.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to insurance policies that cover motor vehicles declared
  to be a total loss; creating new provisions; amending ORS
  742.562 and 742.564; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2013 Act is added to and made
a part of ORS chapter 742. + }
  SECTION 2.  { + (1) As used in this section, 'policy' has the
definition given that term in ORS 742.560.
  (2) An insurer may not deny a claim that an insured makes under
a policy on the basis of information that shows that the motor
vehicle that the policy insures was previously declared a total
loss.
  (3) An insurer may cancel a policy that insures a motor vehicle
that was previously declared a total loss only as provided in ORS
742.564. + }
  SECTION 3. ORS 742.562 is amended to read:
  742.562. (1) A notice of cancellation of a policy   { - shall
be - }  { +  is + } effective only if   { - it - }  { +  the
notice + } is based on one or more of the following reasons:
  (a) Nonpayment of premium.
  (b) Fraud or material misrepresentation   { - affecting - }
 { +  that affects + } the policy or in   { - the presentation
of - }  { +  presenting + } a claim
  { - thereunder - }  { +  under the policy + }, or violation of
any of the terms or conditions of the policy.
  (c) The named insured or any operator either resident in the
same household or who customarily operates an automobile insured
under the policy has had driving privileges suspended or revoked
pursuant to law during the policy period, or, if the policy is a
renewal, during   { - its - }  { +  the renewal's + } policy
period or the 180 days  { +  that + } immediately   { - preceding
its - }  { +  precede the  + }effective date { +  of the
renewal + }. An insurer may not cancel a policy for the reason
that the driving privileges of the named insured or operator were
suspended pursuant to ORS 809.280 (6) or (8) if the suspension
was based on a nondriving offense.
   { +  (d) The insurer learned that the motor vehicle insured
under the policy was previously declared a total loss. The
insurer, in cancelling a policy or a renewal for the reason set
forth in this paragraph, shall comply with ORS 742.564 (2). + }
  (2) This section   { - shall - }  { +  does + } not apply to
 { - any - }  { +  a + } policy or coverage   { - which - }  { +
that + } has been in effect less than 60 days at the time { +
the insurer mails or delivers + } notice of cancellation   { - is
mailed or delivered by the insurer - }  unless   { - it - }  { +
the policy or coverage + } is a renewal   { - policy - } .
  (3) This section   { - shall - }  { +  does + } not apply to
nonrenewal.
  SECTION 4. ORS 742.564 is amended to read:
  742.564. (1)   { - No - }  { +  A + } notice of cancellation of
a policy to which ORS 742.562 applies   { - shall be - }  { +  is
not + } effective unless
  { - mailed or delivered by - }  the insurer { +  mails or
delivers the notice + } to the named insured at least 30 days
 { - prior to - }  { +  before + } the effective date of
cancellation and   { - accompanied by - }  { +  accompanies the
notice with + } a statement of the reason or reasons for
cancellation, provided, however, that   { - where - }  { +  if
the + } cancellation is for nonpayment of premium { + , the
insurer shall give + } at least 10 days' notice of cancellation
 { - accompanied by the reason therefor shall be given - }  { +
and accompany the notice with the reason for the
cancellation + }.
   { +  (2) A notice of cancellation of a policy or a renewal for
the reason set forth in ORS 742.562 (1)(d) is not effective
unless, in addition to complying with the provisions of
subsection (1) of this section, the insurer refunds all premium
payments the insured made under the policy, or under the renewal,
beginning from the effective date of the policy or the renewal to
the date of cancellation. + }
    { - (2) - }  { +  (3) + } This section   { - shall - }  { +
does + } not apply to nonrenewal.
  SECTION 5.  { + Section 2 of this 2013 Act and the amendments
to ORS 742.562 and 742.564 by sections 3 and 4 of this 2013 Act
apply to insurance policies that are issued or renewed on or
after the effective date of this 2013 Act. + }
  SECTION 6.  { + This 2013 Act being necessary for the immediate
s preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2013 Act takes effect on
its passage. + }
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