OAR 836-080-0200: Electronic Payment of Claims

(1) An insurer may pay claim proceeds through a prepaid card, direct deposit system, automated teller machine card or debit card, or other means of electronic transfer if the claimant elects payment by one of those methods and specifies the method of electronic payment agreed upon. The consent of the recipient of claim proceeds must be obtained prior to initiating electronic payments and may be written or verbal. The insurer must provide the recipient a written confirmation when consent is obtained verbally. Proof of mailing will act as proof of providing written notice. The recipient may discontinue receiving electronic payments by notifying the insurer in writing. (2) The recipient of claim proceeds must receive a copy of the cardholder agreement clearly outlining the terms and conditions under which a prepaid card, an automated teller machine card or debit card has been issued prior to or at the time the initial electronic payment is made. (3) The instrument of payment must be negotiable and payable to the recipient for the full amount due, without cost to the recipient. The recipient must be able to make an initial withdrawal of the entire amount due without delay or cost to the recipient.