Bill Text: OR HB3005 | 2011 | Regular Session | Introduced
Bill Title: Relating to certificates of insurance.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB3005 Detail]
Download: Oregon-2011-HB3005-Introduced.html
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 1848
House Bill 3005
Sponsored by Representative GILLIAM
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.
Sets standards for certificates of insurance. Authorizes
Director of Department of Consumer and Business Services to make
rules regulating issuance of certificates of insurance. Makes
misuse of certificate of insurance violation of Insurance Code.
A BILL FOR AN ACT
Relating to certificates of insurance.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2011 Act is added to and made
a part of the Insurance Code. + }
SECTION 2. { + (1) As used in this section:
(a) 'Certificate' or 'certificate of insurance' means any
document or instrument, no matter how titled or described, that
is prepared or issued as evidence of property or casualty
insurance coverage. 'Certificate' or 'certificate of insurance'
does not include a policy of insurance or insurance binder.
(b) 'Certificate holder' means any person, other than a
policyholder, who requests, obtains or possesses a certificate of
insurance.
(c) 'Policyholder' means a person who has contracted with a
property or casualty insurer for insurance coverage.
(2) A person may not prepare or issue a certificate of
insurance if the form:
(a) Is unjust, unfair, misleading or deceptive or violates
public policy;
(b) Fails to comply with the requirements of subsection (3) of
this section; or
(c) Violates any law or any rule adopted by the Director of the
Department of Consumer and Business Services.
(3) Each certificate of insurance must contain the following or
similar statement: 'This certificate of insurance is issued as a
matter of information only and confers no rights upon the
certificate holder. This certificate does not amend, extend or
alter the coverage, terms, exclusions or conditions afforded by
the policies herein. This certificate does not constitute a
contract between the issuing insurer or insurers, authorized
representative or producer and the certificate holder. '
(4) The director may designate standard certificate of
insurance forms promulgated by national organizations as meeting
the requirements under this section and not requiring further
approval.
(5) A person may not demand or request the issuance of a
certificate of insurance from an insurer, insurance producer or
policyholder that contains any false or misleading information
concerning the policy of insurance to which the certificate makes
reference.
(6) A person may not knowingly prepare or issue a certificate
of insurance that contains any false or misleading information or
that purports to affirmatively or negatively alter, amend or
extend the coverage provided by the policy of insurance to which
the certificate makes reference.
(7) A person may not issue or request, either in addition to or
instead of a certificate of insurance, an opinion letter or other
document or correspondence that is inconsistent with this
section. However, an insurer or insurance producer may attach to
a certificate copies of endorsements or other policy provisions
that clarify and document the coverages provided by a policy of
insurance.
(8) The provisions of this section apply to all certificate
holders, policyholders, insurers, insurance producers and
certificate of insurance forms issued as evidence of insurance
coverages on property, operations or risks located in this state,
regardless of where the certificate holder, policyholder, insurer
or insurance producer is located.
(9) A certificate of insurance is not a policy of insurance and
does not affirmatively or negatively amend, extend or alter the
coverage afforded by the policy to which the certificate of
insurance makes reference. A certificate of insurance does not
confer to a certificate holder new or additional rights beyond
what the referenced policy of insurance expressly provides.
(10) A certificate of insurance may contain references to
contracts other than the referenced contracts of insurance,
including construction or service contracts, but only for the
purpose of identifying the specific work or operations for which
evidence of insurance coverage has been requested and provided.
(11) A certificate holder has a legal right to notice of
cancellation, nonrenewal, any material reduction in coverage or
limits or any similar notice concerning a policy of insurance if
the certificate holder is included within the policy or any
endorsement, without regard to the type of endorsement, as an
additional insured. Notice shall be provided in accordance with
the terms and conditions of the policy of insurance not less than
10 days prior to cancellation for nonpayment of premium and not
less than 30 days prior to cancellation, nonrenewal or material
reduction in coverage or limits.
(12) An insurance producer may charge a reasonable service fee
for issuing a certificate to a policyholder or certificate
holder.
(13) Any certificate of insurance or any other document or
correspondence prepared, issued or requested in violation of this
section is null and void and has no force or effect.
(14) The director has the power to examine and investigate the
activities of any person that the director reasonably believes
has been or is engaged in an act or practice prohibited by this
section.
(15) The director may adopt rules necessary to carry out the
provisions of this section. + }
SECTION 3. { + Section 2 of this 2011 Act applies to all
certificates of insurance issued on or after the effective date
of this 2011 Act. + }
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