OAR 836-085-0001: Statutory Authority; Purpose; Applicability

(1) OAR 836-085-0001 to 836-085-0050 are adopted pursuant to the general rulemaking authority of the Director of the Department of Consumer and Business Services in ORS 731.244 to aid in implementing ORS 737.330, 746.160 and 746.240. (2) The purpose of OAR 836-085-0001 to 836-085-0050 is to protect the insurance-buying public in insurance transactions involving termination, renewal or nonrenewal, or premium increases on contracts of insurance by: (a) Regulating the grounds for midterm cancellation of an insurance policy; (b) Prohibiting midterm increases in premium; (c) Increasing the opportunity for policyholders to shop for replacement or substitute insurance; (d) Reducing the opportunity for breach of policy bargain, misrepresentation by omission or untimely disclosure, and unfair discrimination among insureds; and (e) Increasing the opportunity for insurance producers to freely compete. (3) OAR 836-085-0001 to 836-085-0050 shall apply to all forms of commercial insurance that are subject to filing under ORS 737.330 on risks or operations in this state, except for: (a) Commercial liability insurance as defined in ORS 731.074, and comprehensive or package policies that include commercial liability insurance coverage; (b) Reinsurance; (c) Wet marine and transportation insurance; (d) Marine and transportation insurance; (e) Health Insurance; (f) Life Insurance; (g) FAIR plans and automobile assigned risk insurance; (h) Workers' Compensation and employers' liability insurance; (i) Nuclear liability insurance; (j) Fidelity and surety insurance; (k) Hazardous waste and environmental impairment insurance; (l) Aviation insurance; (m) Commercial automobile liability insurance; (n) Any commercial insurance policy that has not been previously renewed if the policy has been effect less than 60 days at the time notice of cancellation is mailed or otherwise delivered; (o) Any policy issued by a surplus lines insurer. (4) OAR 836-085-0001 to 836-085-0050 are not exclusive. The director may also consider other provisions of the Insurance Code to be applicable to the circumstances or situations addressed herein. Policies may provide terms more favorable to policyholders than are required by these rules. The rights provided by these rules are in addition to, and do not prejudice any other rights the policyholder may have under, common law, statute or other Oregon Administrative Rules.