Chapter 737 — Rates and Rating Organizations

737.005 [Amended by 1963 c.580 §92; repealed by 1967 c.359 §704]

GENERAL PROVISIONS

737.007 “Rating organization” defined

As used in this chapter, unless the context requires otherwise, “rating organization” means: Every person, other than an insurer, whether located within or outside this state who has as the person’s object or purpose the making of rates, rating plans or rating systems; or Two or more insurers which act in concert for the purpose of making rates, rating pla…

737.010 [Amended by 1967 c.359 §303; renumbered 737.280]

737.012 “Advisory organization” defined

As used in this chapter, unless the context requires otherwise, “advisory organization” means every group, association or other organization of insurers, whether located within or outside this state, which assists authorized insurers which make their own filings or licensed rating organizations in rate making, by the collection and furnishing of loss or expe…

737.015 [Repealed by 1967 c.359 §704]

737.017 “Member,” “subscriber” defined

As used in this chapter, unless the context requires otherwise: “Member” means: An insurer that participates in or is entitled to participate in the management of a rating, advisory or other organization; or For purposes of workers’ compensation insurance, an insurer that is affiliated or associated with a rating, advisory or other organization by agreeme…

737.020 [1967 c.359 §299; repealed by 1969 c.690 §29]

737.025 Purpose, intent of chapter

The purpose of this chapter is to promote the public welfare by regulating insurance rates to the end that they shall not be excessive, inadequate or unfairly discriminatory and to authorize cooperation between insurers in rate making and other related matters. It is the express intent of this chapter to permit and encourage competition between insurers on …

737.030 [1967 c.359 §300; repealed by 1969 c.690 §29]

737.035 Application of chapter

This chapter applies to all forms of insurance on risks or operations in this state, except: Reinsurance, other than joint reinsurance to the extent stated in ORS 737.390; Insurance against loss of, or damage to, aircraft, including accessories and equipment, or against liability arising out of ownership, maintenance or use of aircraft; Wet marine and tra…

737.040 [1967 c.359 §301; repealed by 1969 c.690 §29]

737.045 Remedies of director for violations of chapter

If the Director of the Department of Consumer and Business Services has reason to believe that a rate, rating plan or rating system filed or used by an insurer or filed by a rating or advisory organization on behalf of an insurer does not comply with the requirements and standards of this chapter, the director may issue an order directing the insurer or the …

737.050 [1967 c.359 §302; repealed by 1969 c.690 §29]

737.105 [Amended by 1961 c.562 §7; 1965 c.611 §17; repealed by 1967 c.359 §704]

737.110 [Repealed by 1967 c.359 §704]

737.115 [Repealed by 1967 c.359 §704]

737.120 [Repealed by 1967 c.359 §704]

737.125 [Repealed by 1967 c.359 §704]

737.130 [Repealed by 1967 c.359 §704]

737.135 [Repealed by 1969 c.336 §21 and 1969 c.690 §29]

737.140 [Repealed by 1967 c.359 §704]

737.145 [Repealed by 1967 c.359 §704]

737.150 [Repealed by 1967 c.359 §704]

737.155 [Repealed by 1967 c.359 §704]

737.160 [Repealed by 1967 c.359 §704]

737.165 [Repealed by 1967 c.359 §704]

737.170 [Repealed by 1967 c.359 §704]

737.175 [Repealed by 1967 c.359 §704]

737.180 [Amended by 1967 c.359 §308; renumbered 737.312]

737.185 [Repealed by 1967 c.359 §704]

RATES AND RATE MAKING

737.205 Filing rates, plans with director; public inspection of filings; effect on workers’ compensation filings

Every insurer shall file with the Director of the Department of Consumer and Business Services copies of the rates, rating plans and rating systems used by it. Except as provided in ORS 737.207, 737.209 and 737.320 (2), each filing shall become effective immediately on the date specified therein but not earlier than the date such filing is received by the di…

737.207 Commercial liability insurance rate filings; prior approval by director

As used in this section, a market may be a line, subline or classification of commercial liability insurance. Filings of commercial liability insurance rates for markets specified by the Director of the Department of Consumer and Business Services shall be submitted by an insurer or rating organization to the director for review prior to the effective date …

737.209 Hearing on rate filings under ORS 737.207; order; review

The Director of the Department of Consumer and Business Services may hold a hearing on a filing made pursuant to ORS 737.207 if the director determines that such a hearing would aid the director in determining whether to approve or disapprove the filing. A hearing under this section may be held at a place designated by the director and upon not less than 10 …

737.215 Effect of noncompliance with rating regulation

If the Director of the Department of Consumer and Business Services has reason to believe that noncompliance by an insurer with the requirements and standards of this chapter to be willful, or if within the period prescribed by the director in the notice required by ORS 737.336, the insurer, rating or advisory organization does not make such changes as may b…

737.225 Records requirements; inspection; statistics; workers’ compensation statistical agency; rules

Each insurer, rating organization or advisory organization shall maintain reasonable records, of the type and kind reasonably adapted to its method of operation, of its experience or the experience of its members and of the data, statistics or information collected or used by it in connection with the rates, rating plans, rating systems, underwriting rules, …

737.230 Data must include certain information

The data collected and maintained by each insurer, rating organization or advisory organization pursuant to ORS 737.225 shall be in sufficient detail to demonstrate the statistical significance of differences or correlations relevant to the rating plan definitions and rate differentials.

737.235 Examining rating systems of insurers; costs

The Director of the Department of Consumer and Business Services may make or cause to be made an examination of every insurer transacting any class of insurance to which the provisions of this chapter are applicable to ascertain whether such insurer and every rate and rating system used by it for every such class of insurance complies with the requirements a…

737.245 Collusive ratings prohibited; liability for damages

In the event any insurer shall in collusion with any other insurer conspire to fix, set or adhere to insurance rates except as expressly sanctioned by the Insurance Code, such insurer shall be liable to any person damaged thereby for an amount equal to three times the amount of such damage together with the damaged party’s attorney fees.

737.255 Authority for cooperative ratings and systems

Subject to and in compliance with the provisions of this chapter authorizing insurers to be members or subscribers of rating or advisory organizations or to engage in joint underwriting or joint reinsurance, two or more insurers may act in concert with each other and with others with respect to any matters pertaining to the making of rates or rating systems,…

737.265 Unauthorized adherence to rates, rating systems; workers’ compensation insurance policy forms

Members and subscribers of rating or advisory organizations may use the rates, rating systems, underwriting rules or policy or bond forms of such organizations, either consistently or intermittently, but, except as provided in ORS 737.275, 737.312, 737.365, 737.390, 737.526 and subsection (2) of this section, shall not agree with each other or rating organiz…

737.270 Determination of workers’ compensation premiums for worker leasing company; reporting statistical experience

When a worker leasing company required to be licensed by ORS 656.850 provides workers to work for a client and also provides the workers’ compensation coverage for those workers, the insurance premium for the client’s exposure shall be based on the client’s own experience rating, in the same manner as required for employers insuring directly employed workers…

737.275 Preparation of rates, rating systems and other administrative matters by insurers under common ownership

With respect to any matters pertaining to the making of rates or rating systems, the preparation or making of insurance policy or bond forms, underwriting rules, surveys, inspections and investigations, the furnishing of loss or expense statistics or other information and data, or carrying on of research, two or more admitted insurers having a common ownersh…

737.280 [Formerly 737.010; repealed by 1969 c.690 §29]

737.290 [1967 c.359 §305; repealed by 1969 c.690 §29]

737.300 [1967 c.359 §306; repealed by 1969 c.690 §29]

737.305 [Repealed by 1967 c.359 §704]

737.310 Method of rate making; factors considered; effect of wildfire risk mitigation actions; rules

The following standards shall apply to the making and use of rates: Rates shall not be excessive, inadequate or unfairly discriminatory. As to all classes of insurance, other than workers’ compensation and title insurance: No rate shall be held to be excessive unless: Such rate is unreasonably high for the insurance provided; and A reasonable degree of …

737.312 Agreements among insurers for assignment of risks; rate modifications

Agreements may be made among insurers with respect to the equitable apportionment among them of insurance which may be afforded applicants who are in good faith entitled to such insurance but who are unable to procure such insurance through ordinary methods. Such insurers may agree among themselves on the use of reasonable rate modifications for such insuran…

737.315 [Amended by 1967 c.359 §309; 1967 c.366 §1; repealed by 1969 c.690 §29]

737.316 Combining employers for workers’ compensation insurance; conditions

Notwithstanding ORS 737.600, but subject to all other rate filing requirements of this chapter, an insurer may combine for rating purposes the experience of a group of employers covered for workers’ compensation insurance by the insurer, subject to applicable rules adopted by the Director of the Department of Consumer and Business Services, if: All the empl…

737.318 Premium audit program for workers’ compensation insurance; rules; penalties

A workers’ compensation insurer shall maintain a premium audit program to aid in achieving equitable premium charges to Oregon employers and for the collection of credible statewide data for ratemaking. The Director of the Department of Consumer and Business Services shall prescribe by rule a premium audit program system for workers’ compensation insurance.…

737.320 Review of certain filings; effective date of filings; investigation and evaluation of workers’ compensation rate filings

The Director of the Department of Consumer and Business Services shall review title insurance filings, and each workers’ compensation insurance filing, as soon as reasonably possible after they have been made in order to determine whether they meet the requirements of this chapter. The effective date of each title and workers’ compensation insurance filing …

737.322 Rating plan approval; rules; hearing on disapproval; costs

Notwithstanding any other provision of this chapter: The Director of the Department of Consumer and Business Services shall adopt rules providing for approval of workers’ compensation rating plans that include provisions allowing for reasonable retroactive application of experience rating modification factors. Nothing in this subsection affects retrospectiv…

737.325 Suspension or modification of filing requirement; rules; excess rates for specific risks

Under such rules and regulations as the Director of the Department of Consumer and Business Services adopts, the director, by written order, may suspend or modify the requirement of filing as to any class of insurance, or subdivision or combination thereof, or as to classes of risks, for which the rates cannot practicably be filed before they are used. Such …

737.330 Contracts to comply with effective filings; exception

No insurer shall make or issue a policy except in accordance with the filings which are in effect for the insurer as provided in this chapter. This section does not apply to policies for inland marine risks as to which filings are not required.

737.335 [Repealed by 1967 c.359 §704]

737.336 Disapproval of filings by director; noncompliance with chapter

If within the waiting period or the extension thereof, if any, as provided in ORS 737.320 (2), the Director of the Department of Consumer and Business Services finds that a filing does not meet the requirements of this chapter, the director shall send to the insurer or rating organization which made such filing written notice of disapproval of such filing, s…

737.340 Initiation of proceedings by aggrieved person to determine lawfulness of filings; hearing

Any person aggrieved with respect to any filing that is in effect, other than the insurer or rating organization that made the filing, may make written application to the Director of the Department of Consumer and Business Services for a hearing on the filing. The application shall specify the grounds to be relied upon by the applicant. If the director find…

737.342 Hearing and order procedure

Conduct of the hearing, issuance of orders pursuant thereto and judicial review of orders shall be as provided in ORS chapter 183.

737.345 [Amended by 1967 c.359 §315; repealed by 1969 c.690 §29]

737.346 [Formerly 737.512; 1977 c.428 §5; 1979 c.850 §4; 1983 c.754 §1; 1985 c.484 §1; 1987 c.774 §71; 1995 c.79 §362; 1995 c.278 §58; 1995 c.306 §40; renumbered 737.600 in 1999]

737.348 [Formerly 736.170; 1975 c.556 §50; repealed by 1977 c.405 §6]

RATING ORGANIZATIONS

737.350 Application for license by rating organization

No rating organization shall conduct its operations in this state without first filing with the Director of the Department of Consumer and Business Services a written application for a license as a rating organization for such classes of insurance, or subdivision or class of risk or a part or combination thereof as are specified in its application and shall …

737.355 Licensing rating organizations generally; licensing workers’ compensation rating organizations; rules; revocation and suspension; fees

If the Director of the Department of Consumer and Business Services finds that the applicant represents a credible statistical base, is competent, trustworthy and otherwise qualified to act as a rating organization and that its constitution, articles of agreement or association or certificate of incorporation, and its bylaws, rules and regulations governing …

737.360 Rating organization to accept insurers as subscribers; rules of organization to be reasonable; review of applications for subscribership and of reasonableness of rules

Subject to rules and regulations which have been approved by the Director of the Department of Consumer and Business Services as reasonable, each rating organization shall permit any insurer, not a member, to be a subscriber to its rating services for any class of insurance, subdivision or class of risk or a part or combination thereof for which it is author…

737.365 Cooperative activities among rating organizations and insurers

Cooperation among rating organizations or among rating organizations and insurers in rate making or in other matters within the scope of this chapter hereby is authorized, provided the filings resulting from such cooperation are subject to and consistent with those sections which are applicable to filings generally. The Director of the Department of Consume…

737.370 [Amended by 1967 c.359 §322; repealed by 1969 c.690 §29]

737.375 [Amended by 1967 c.359 §323; repealed by 1969 c.690 §29]

737.380 [Amended by 1967 c.359 §324; repealed by 1969 c.690 §29]

737.385 [Repealed by 1967 c.359 §704]

737.386 [1967 c.359 §325; repealed by 1969 c.690 §29]

737.390 Regulation of joint underwriting and joint reinsurance

No group, association or other organization of insurers which engages in joint underwriting or joint reinsurance shall engage in any activity which is unfair, unreasonable or otherwise inconsistent with the provisions of this chapter.

737.505 Insured entitled to rate information; remedies of aggrieved persons

Every rating organization and every insurer which makes its own rates, within a reasonable time after receiving written request therefor and upon payment of such reasonable charge as it may make, shall furnish to any insured affected by a rate made by it, or to the authorized representative of such insured, all pertinent information as to such rate. Every r…

737.510 Advisory organizations; registration; jurisdiction of director to restrict unfair practices

Every advisory organization shall file with the Director of the Department of Consumer and Business Services: A copy of its constitution, its articles of agreement or association or its certificate of incorporation and of its bylaws, rules and regulations governing its activities. A list of its members. The name and address of a resident of this state upo…

737.512 [1959 c.324 §2; 1967 c.359 §316; renumbered 737.346]

737.515 Examination of rating, advisory and other organizations; payment of costs; acceptance of report from another state

The Director of the Department of Consumer and Business Services shall make or cause to be made an examination of each rating and advisory organization complying with and referred to in ORS 737.350 or 737.510 and of each organization referred to in ORS 737.390 as often as the director deems expedient. The reasonable costs of any such examination shall be pa…

737.520 [Amended by 1967 c.359 §330; repealed by 1969 c.690 §29]

737.525 [Repealed by 1967 c.359 §704]

737.526 Interchange of data; rules; promoting uniformity of rating laws

Reasonable rules and plans may be promulgated by the Director of the Department of Consumer and Business Services for the interchange of data necessary for the application of rating plans. In order to further uniform administration of rate regulatory laws, the director and every insurer and rating organization may exchange information and experience data wi…

737.530 [Repealed by 1967 c.359 §704]

737.535 Withholding or giving false information prohibited

No person shall willfully withhold information from or knowingly give false or misleading information to the Director of the Department of Consumer and Business Services, to any statistical agency designated by the director, to any rating organization, or to any insurer, which will affect the rates or premiums chargeable under this chapter.

737.540 [Repealed by 1967 c.359 §704]

737.545 Procedure for suspension of rating organization license

The Director of the Department of Consumer and Business Services may suspend the license of any rating organization which fails to comply with an order of the director within the time limited by such order, or any extension thereof which the director may grant. The director shall not suspend the license of any rating organization for failure to comply with a…

737.547 [1971 c.734 §183; repealed by 1975 c.769 §10]

737.550 [Repealed by 1967 c.359 §704]

737.555 [Repealed by 1967 c.359 §704]

737.560 Rating organization membership

Except as provided in subsection (2) of this section, nothing contained in this chapter shall be construed as requiring any insurer to become a member of or a subscriber to any rating organization. Each workers’ compensation insurer, including the State Accident Insurance Fund Corporation, shall be a member of a licensed workers’ compensation rating organiz…

737.600 Fictitious grouping for rate purposes prohibited; rules; exceptions

As used in this section, “fictitious grouping” means a grouping by way of membership, license, franchise, contract, agreement or any method other than common ownership, or use and control. An insurer may not: Make available, through any rating plan or form, property, inland marine, casualty or surety insurance, or any combination thereof, at a preferred ra…

737.602 Authorization for insurance for certain projects; premiums; qualifications

As used in this section: “Project” means a construction project, a plant expansion or improvements within Oregon with an aggregate construction value in excess of $90 million that is to be completed within a defined period. The average construction value during the defined period of the project must be at least $18 million per year. “Project” does not mean …

737.604 Rules

In addition to other rulemaking authority of the Director of the Department of Consumer and Business Services, the director may make rules: Stating the necessary attributes that a construction project of a project sponsor and the participants in the project must have in order to qualify for the grouping permitted under ORS 737.602. The rules may include but…