ORS Chapter 737 - Oregon Statutes

Chapter 737 — Ratesand Rating Organizations

 

2009 EDITION

 

 

RATESAND RATING ORGANIZATIONS

 

INSURANCE

 

GENERALPROVISIONS

 

737.007     “Ratingorganization” defined

 

737.012     “Advisoryorganization” defined

 

737.017     “Member,”“subscriber” defined

 

737.025     Purpose,intent of chapter

 

737.035     Applicationof chapter

 

737.045     Remediesof director for violations of chapter

 

RATESAND RATE MAKING

 

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

 

737.207     Commercialliability insurance rate filings; prior approval by director

 

737.209     Hearingon rate filings under ORS 737.207; order; review

 

737.215     Effectof noncompliance with rating regulation

 

737.225     Recordsrequirements; inspection; statistics; workers’ compensation statistical agency;rules

 

737.230     Datamust include certain information

 

737.235     Examiningrating systems of insurers; costs

 

737.245     Collusiveratings prohibited; liability for damages

 

737.255     Authorityfor cooperative ratings and systems

 

737.265     Unauthorizedadherence to rates, rating systems; workers’ compensation insurance policyforms

 

737.270     Determinationof workers’ compensation premiums for worker leasing company; reportingstatistical experience

 

737.275     Preparationof rates, rating systems and other administrative matters by insurers undercommon ownership

 

737.310     Methodof rate making; factors considered; rules

 

737.312     Agreementsamong insurers for assignment of risks; rate modifications

 

737.316     Combiningemployers for workers’ compensation insurance; conditions

 

737.318     Premiumaudit program for workers’ compensation insurance; rules

 

737.320     Reviewof certain filings; effective date of filings; investigation and evaluation ofworkers’ compensation rate filings

 

737.322     Ratingplan approval; rules; hearing on disapproval; costs

 

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

 

737.330     Contractsto comply with effective filings; exception

 

737.336     Disapprovalof filings by director; noncompliance with chapter

 

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

 

737.342     Hearingand order procedure

 

RATINGORGANIZATIONS

 

737.350     Applicationfor license by rating organization

 

737.355     Licensingrating organizations generally; licensing workers’ compensation ratingorganizations; rules; revocation and suspension; fees

 

737.360     Ratingorganization to accept insurers as subscribers; rules of organization to bereasonable; review of applications for subscribership and of reasonableness ofrules

 

737.365     Cooperativeactivities among rating organizations and insurers

 

737.390     Regulationof joint underwriting and joint reinsurance

 

737.505     Insuredentitled to rate information; remedies of aggrieved persons

 

737.510     Advisoryorganizations; registration; jurisdiction of director to restrict unfairpractices

 

737.515     Examinationof rating, advisory and other organizations; payment of costs; acceptance ofreport from another state

 

737.526     Interchangeof data; rules; promoting uniformity of rating laws

 

737.535     Withholdingor giving false information prohibited

 

737.545     Procedurefor suspension of rating organization license

 

737.560     Ratingorganization membership

 

FICTITIOUSGROUPINGS

 

737.600     Fictitiousgrouping for rate purposes prohibited; rules; exceptions

 

737.602     Authorizationfor insurance for certain projects; premiums; qualifications

 

737.604     Rules

 

AUTHORIZATIONFOR INSURANCE FOR COMBINED SEWER OVERFLOW PROJECTS

 

(Temporaryprovisions relating to authorization for insurance for combined sewer overflowprojects are compiled as notes following ORS 737.604)

 

      737.005 [Amended by1963 c.580 §92; repealed by 1967 c.359 §704]

 

GENERALPROVISIONS

 

      737.007“Rating organization” defined. (1) As used in this chapter, unless thecontext requires otherwise, “rating organization” means:

      (a)Every person, other than an insurer, whether located within or outside thisstate who has as the person’s object or purpose the making of rates, ratingplans or rating systems; or

      (b)Two or more insurers which act in concert for the purpose of making rates,rating plans or rating systems.

      (2)Subsection (1) of this section does not include, apply to or affect two or moreinsurers operating within the specific authorizations contained in ORS 737.275,737.312, 737.365, 737.390 and 737.526. [1969 c.690 §14]

 

      737.010 [Amended by1967 c.359 §303; renumbered 737.280]

 

      737.012“Advisory organization” defined. As used in this chapter, unless thecontext requires otherwise, “advisory organization” means every group,association or other organization of insurers, whether located within oroutside this state, which assists authorized insurers which make their ownfilings or licensed rating organizations in rate making, by the collection andfurnishing of loss or expense statistics or by the submission ofrecommendations, but which does not make filings under this chapter. [1969c.690 §15]

 

      737.015 [Repealed by1967 c.359 §704]

 

      737.017“Member,” “subscriber” defined. As used in this chapter, unless thecontext requires otherwise:

      (1)“Member” means:

      (a)An insurer that participates in or is entitled to participate in the managementof a rating, advisory or other organization; or

      (b)For purposes of workers’ compensation insurance, an insurer that is affiliatedor associated with a rating, advisory or other organization by agreement withthe organization for the purpose of obtaining the rates and rating manuals orthe services offered by the organization.

      (2)“Subscriber” means an insurer that is furnished at its request:

      (a)With rates and rating manuals by a rating organization of which it is not amember; or

      (b)With advisory services by an advisory organization of which it is not a member.[1969 c.690 §16; 1999 c.235 §6]

 

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

 

      737.025Purpose, intent of chapter. (1) The purpose of this chapter is to promote thepublic welfare by regulating insurance rates to the end that they shall not beexcessive, inadequate or unfairly discriminatory and to authorize cooperationbetween insurers in rate making and other related matters.

      (2)It is the express intent of this chapter to permit and encourage competitionbetween insurers on a sound financial basis. [1969 c.690 §1]

 

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

 

      737.035Application of chapter. This chapter applies to all forms of insurance onrisks or operations in this state, except:

      (1)Reinsurance, other than joint reinsurance to the extent stated in ORS 737.390;

      (2)Insurance against loss of, or damage to, aircraft, including accessories andequipment, or against liability arising out of ownership, maintenance or use ofaircraft;

      (3)Wet marine and transportation insurance;

      (4)Life insurance;

      (5)Health insurance; or

      (6)Surplus lines insurance. [1969 c.690 §2; 2005 c.185 §10]

 

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

 

      737.045Remedies of director for violations of chapter. (1) If theDirector of the Department of Consumer and Business Services has reason tobelieve that a rate, rating plan or rating system filed or used by an insureror filed by a rating or advisory organization on behalf of an insurer does notcomply with the requirements and standards of this chapter, the director may issuean order directing the insurer or the rating or advisory organization todiscontinue or desist from the noncompliance. An order issued under thissubsection is subject to the provisions of ORS 731.252.

      (2)If the director holds a hearing on an order issued pursuant to subsection (1)of this section, the insurer or rating or advisory organization filing or usingthe rate, rating plan or rating system shall pay to the director the just andlegitimate costs of the hearing, including actual necessary expenses.

      (3)If the director finds after a hearing under ORS 737.340 that any rate, ratingplan or rating system violates the provisions of this chapter, the director mayissue an order specifying the violation and stating when, within a reasonableperiod of time, the further use of such rate, rating plan or rating system byan insurer or rating or advisory organization shall be prohibited.

      (4)If the director finds after a hearing under ORS 737.215 or 737.340 that aninsurer or rating or advisory organization is in violation of any provision ofthis chapter other than the provisions dealing with rates, rating plans orrating systems, the director may issue an order specifying the violation andrequiring compliance within a reasonable time.

      (5)If the director finds after a hearing under ORS 737.215 that the violation ofany of the provisions of this chapter applicable to it by any insurer or ratingorganization that has been the subject of a hearing was willful, the directormay suspend or revoke the certificate of authority of such insurer or thelicense of such rating organization.

      (6)If the director finds after a hearing that any rating organization haswillfully engaged in any fraudulent or dishonest act or practices, the directormay suspend or revoke the license of such organization. [1969 c.690 §10; 1987c.774 §143]

 

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

 

      737.105 [Amended by1961 c.562 §7; 1965 c.611 §17; repealed by 1967 c.359 §704]

 

      737.110 [Repealed by1967 c.359 §704]

 

      737.115 [Repealed by1967 c.359 §704]

 

      737.120 [Repealed by1967 c.359 §704]

 

      737.125 [Repealed by1967 c.359 §704]

 

      737.130 [Repealed by1967 c.359 §704]

 

      737.135 [Repealed by1969 c.336 §21 and 1969 c.690 §29]

 

      737.140 [Repealed by1967 c.359 §704]

 

      737.145 [Repealed by1967 c.359 §704]

 

      737.150 [Repealed by1967 c.359 §704]

 

      737.155 [Repealed by1967 c.359 §704]

 

      737.160 [Repealed by1967 c.359 §704]

 

      737.165 [Repealed by1967 c.359 §704]

 

      737.170 [Repealed by1967 c.359 §704]

 

      737.175 [Repealed by1967 c.359 §704]

 

      737.180 [Amended by1967 c.359 §308; renumbered 737.312]

 

      737.185 [Repealed by1967 c.359 §704]

 

RATESAND RATE MAKING

 

      737.205Filing rates, plans with director; public inspection of filings; effect onworkers’ compensation filings. (1) Every insurer shall file with theDirector of the Department of Consumer and Business Services copies of therates, rating plans and rating systems used by it. Except as provided in ORS737.207, 737.209 and 737.320 (2), each filing shall become effective immediatelyon the date specified therein but not earlier than the date such filing isreceived by the director. This subsection does not apply to inland marine riskswhich by general custom of the business are not written according to manualrates or rating plans.

      (2)An insurer may satisfy its obligation to make such filings by becoming a memberof or a subscriber to a licensed rating organization which makes such filings,and by authorizing the director to accept such filings on its behalf. Suchinsurer may so adopt the filings of a rating organization on part of theclasses of risks insured by it and may make its own filings as to other classeswhich shall be uniform throughout the insurer’s territorial classification.This subsection does not apply to workers’ compensation insurance filingsexcept to the extent that the rating organization filings o