75th OREGON LEGISLATIVE ASSEMBLY--2010 Special Session

                            Enrolled

                         House Bill 3631

Sponsored by Representative VANORMAN; Representatives BARKER,
  BARNHART, BOONE, BUCKLEY, CLEM, DEMBROW, DOHERTY, FREDERICK,
  GARRARD, GELSER, GREENLICK, HARKER, HOLVEY, HOYLE, KENNEMER,
  KOMP, KOTEK, MATTHEWS, NATHANSON, NOLAN, OLSON, ROBLAN, J
  SMITH, STIEGLER, TOMEI, WITT, Senators BONAMICI, BURDICK,
  DINGFELDER, EDWARDS, MONNES ANDERSON, PROZANSKI, ROSENBAUM,
  SCHRADER, VERGER (Presession filed.)

                     CHAPTER ................

                             AN ACT

Relating to insurer discrimination against victims of violence;
  creating new provisions; amending ORS 746.015; and declaring an
  emergency.

Be It Enacted by the People of the State of Oregon:

  SECTION 1. ORS 746.015 is amended to read:
  746.015. (1) No person shall make or permit any unfair
discrimination between individuals of the same class and equal
expectation of life, or between risks of essentially the same
degree of hazard, in the availability of insurance, in the
application of rates for insurance, in the dividends or other
benefits payable under insurance policies, or in any other terms
or conditions of insurance policies.
  (2) Discrimination by an insurer in the application of its
underwriting standards or rates based solely on an individual's
physical disability is prohibited, unless such action is based on
sound actuarial principles or is related to actual or reasonably
anticipated experience. For purposes of this subsection, '
physical disability' shall include, but not be limited to,
blindness, deafness, hearing or speaking impairment or loss, or
partial loss, of function of one or more of the upper or lower
extremities.
  (3) Discrimination by an insurer in the application of its
underwriting standards or rates based solely upon an insured's or
applicant's attaining or exceeding 65 years of age is prohibited,
unless such discrimination is clearly based on sound actuarial
principles or is related to actual or reasonably anticipated
experience.
  (4)(a)   { - No - }   { + An + } insurer { +  may not + }, on
the basis of the status of an insured or prospective insured as a
victim of domestic  { + violence or sexual + } violence,
 { - shall - }  do any of the following:
  (A) Deny, cancel or refuse to issue or renew an insurance
policy;
  (B) Demand or require a greater premium or payment;
  (C) Designate domestic  { + violence or sexual + }
violence { + , physical or mental injuries sustained as a result

Enrolled House Bill 3631 (HB 3631-A)                       Page 1

of domestic violence or sexual violence or treatment received for
such injuries + } as a preexisting condition for which coverage
will be denied or reduced;
  (D) Exclude or limit coverage for losses or deny a claim; or
  (E) Fix any lower rate for or discriminate in the fees or
commissions of an insurance producer for writing or renewing a
policy.
  (b) The fact that an insured or prospective insured is or has
been a victim of domestic  { + violence or sexual + } violence
shall not be considered a permitted underwriting or rating
criterion.
  (c) Nothing in this subsection prohibits an insurer from taking
an action described in paragraph (a) of this subsection if the
action is otherwise permissible by law and is taken in the same
manner and to the same extent with respect to all insureds and
prospective insureds without regard to whether the insured or
prospective insured is a victim of domestic  { + violence or
sexual + } violence.
  (d) An insurer that complies in good faith with the
requirements of this subsection shall not be subject to civil
liability due to such compliance.
  (e) For purposes of this subsection, 'domestic violence ' means
the occurrence of one or more of the following acts between
family or household members:
  (A) Attempting to cause or intentionally or knowingly causing
physical injury;
  (B) Intentionally or knowingly placing another in fear of
imminent serious physical injury; or
  (C) Committing sexual abuse in any degree as defined in ORS
163.415, 163.425 and 163.427.
   { +  (f) For purposes of this subsection, 'sexual violence '
means the commission of a sexual offense described in ORS 163.305
to 163.467, 163.427 or 163.525. + }
  (5) If the Director of the Department of Consumer and Business
Services has reason to believe that an insurer in the application
of its underwriting standards or rates is not complying with the
requirements of this section, the director shall, unless the
director has reason to believe the noncompliance is willful, give
notice in writing to the insurer 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
the noncompliance may be corrected.
  (6)(a) If the director has reason to believe that noncompliance
by an insurer with the requirements of this section is willful,
or if, within the period prescribed by the director in the notice
required by subsection (5) of this section, the insurer does not
make the changes necessary to correct the noncompliance specified
by the director or establish to the satisfaction of the director
that such specified noncompliance does not exist, the director
may hold a hearing in connection therewith. Not less than 10 days
before the date of such hearing the director shall mail to the
insurer written notice of the hearing, specifying the matters to
be considered.
  (b) If, after the hearing, the director finds that the
insurer's application of its underwriting standards or rates
violates the requirements of this section, the director may issue
an order specifying in what respects such violation exists and
stating when, within a reasonable period of time, further such
application shall be prohibited. If the director finds that the

Enrolled House Bill 3631 (HB 3631-A)                       Page 2

violation was willful, the director may suspend or revoke the
certificate of authority of the insurer.
  (7) Affiliated workers' compensation insurers having
reinsurance agreements which result in one carrier ceding 80
percent or more of its workers' compensation premium to the
other, while utilizing different workers' compensation rate
levels without objective evidence to support such differences,
shall be presumed to be engaging in unfair discrimination.
  SECTION 2.  { + The amendments to ORS 746.015 by section 1 of
this 2010 Act apply to policies or certificates of insurance
offered or renewed on or after the effective date of this 2010
Act. + }
  SECTION 3.  { + This 2010 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2010 Act takes effect on its
passage. + }
                         ----------

Passed by House February 9, 2010

      ...........................................................
                                             Chief Clerk of House

      ...........................................................
                                                 Speaker of House

Passed by Senate February 22, 2010

      ...........................................................
                                              President of Senate

Enrolled House Bill 3631 (HB 3631-A)                       Page 3

Received by Governor:

......M.,............., 2010

Approved:

......M.,............., 2010

      ...........................................................
                                                         Governor

Filed in Office of Secretary of State:

......M.,............., 2010

      ...........................................................
                                               Secretary of State

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