Oregon Adopts Declaration of Emergency Order Rules

The Oregon Insurance Division recently adopted rules implementing legislation (HB 3605) enacted in the 2008 special session, which authorized the Director of the Department of Consumer and Business Services, in the event the Governor issues a declaration of emergency, to issue an order addressing matters related to insurance policies issued in the state. The provisions apply when the conditions leading to the declaration substantially interfere with the public’s ability to carry on its normal business affairs, DCBS indicated.

Among the criteria for orders are:

• If the Director determines that an order must address reporting requirements for claims, the Director shall consider what extent the circumstances of the declared state of emergency prevent policyholders from using normal methods of reporting claims, and shall determine what methods of reporting remain available to consumers in affected areas. The Director may direct insurers to accept alternative methods of reporting, and may extend the reporting period.

• The Director may direct insurers to extend grace periods for payment of insurance premiums and performance of other duties by insureds.

• The Director may direct insurers to accept alternative methods of communication of notices of cancellation or nonrenewal from policyholders, and may postpone cancellations and nonrenewals as appropriate. For more information on the criteria for orders in the rule, visit www.insurance.oregon.gov/rules/recent_admin_rules.html.