OAR 836-051-0005: Statutory Authority; Purpose; Applicability

(1) OAR 836-051-0005 to 836-051-0020 are adopted by the Director pursuant to general rulemaking authority in ORS 731.244, and specific authority in 742.009 to issue rules requiring disclosures to prospective insurance purchasers. (2) The purpose of OAR 836-051-0005 to 836-051-0020 is to require insurers that are not electing to illustrate life insurance policies under 836-051-0500 to 836-051-0600 to deliver to prospective buyers of life insurance guaranteed policy information that will improve the buyer's ability to select the most appropriate plan of life insurance for the buyer's needs, improve the buyer's understanding of the basic features of the policy that has been purchased or that is under consideration and improve the buyer's ability to evaluate the relative costs of similar plans of life insurance. OAR 836-051-0005 to 836-051-0020 do not prohibit the use of additional material that is not in violation of these or other rules of the Director or provisions of the Insurance Code. (3) OAR 836-051-0005 to 836-051-0020 apply to all transactions of life insurance in this state except with respect to: (a) Annuities; (b) Credit life insurance; (c) Group life insurance; (d) Life insurance policies issued in connection with employee benefit plans as defined by Section 3(3) of the federal Employee Retirement Income Security Act of 1974 (ERISA) as amended from time to time; and (e) Life insurance policies that comply with OAR 836-051-0500 to 836-051-0600.