Oregon Weighs In On Insurance Legislation

The Oregon Legislature adjourned the 2009 legislative session ended with a mixed bag of results on insurance issues, according to the American Insurance Association (AIA).

“A number of costly and unnecessary bills were stopped, but unfortunately others made it to the governor’s desk,” said Steve Suchil, AIA assistant vice president.

Among the bills that were not granted legislative approval were HB 2325, which would have restricted insurer ability to subrogate in PIP claims and HB 2802, which would have increased wrongful death action non-economic damages to $1.5 million, from the current $500,000. Other measures would have permitted first and third party bad faith actions against insurers (HB 2791) and established a prior approval process for insurance rates (HB 3046).

“Unfortunately, Oregon legislators did approve several bills that will increase liability and attorney fees,” Suchil said.

Measures of concern to insurers approved in this session included: SB 284, which will increase the statute of ultimate repose for product liability actions to 10 years and SB 306, that will increase the number of small tort action cases where attorney fees can be awarded.

Source: AIA