ORS 737.600
Fictitious grouping for rate purposes prohibited

  • rules
  • exceptions

(1)

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.

(2)

An insurer may not:

(a)

Make available, through any rating plan or form, property, inland marine, casualty or surety insurance, or any combination thereof, at a preferred rate or premium to any person based upon a fictitious grouping of that person.

(b)

Write or deliver a form, plan or policy of insurance covering a grouping or combination of persons or risks, any of which are within this state, at a preferred rate or form other than that offered to the public generally and persons not in the group, unless the form, plan or policy and the rates or premiums to be charged therefor have been approved by the Director of the Department of Consumer and Business Services. The director shall not approve any form, plan or policy, or the rates therefor, that would constitute a violation of paragraph (a) of this subsection.

(3)

This section does not apply to:

(a)

Policies of life or health insurance;

(b)

Insurance for public bodies as defined in ORS 30.260 (Definitions for ORS 30.260 to 30.300);

(c)

Insurance for employers subject to ORS chapter 656 who are primarily engaged in farming. Any contract negotiated by an exempt farming group, including the rate, shall be restricted to members of the group;

(d)

Property and casualty insurance policies for personal, family or household purposes, and not for commercial or business purposes, under the following conditions:

(A)

If the policies are offered to members of an association, including a labor union, which has had an active existence for at least one year, has a constitution and bylaws and is maintained in good faith for purposes other than that of obtaining insurance;

(B)

If the policies are based on premiums that are adequate to support coverage of the group without subsidy by other rate payers; and

(C)

If the insurer does not unfairly discriminate against holders of other insurance policies;

(e)

Liability and property insurance required under ORS 825.160 (Liability insurance of carriers) for persons who apply for or who have received authority issued by the Department of Transportation under ORS chapter 825 to transport logs, poles, pilings, peeler cores, lumber, shingles, veneer, plywood, particle board, wallboard, siding, cordwood in long or short lengths, sawdust, hog fuel, wood chips, wood pellets, bark dust or cut trees that are or will be sold for use as Christmas trees;

(f)

Liability or casualty insurance issued in this state on commercial risks, if:

(A)

The policy requires active participation in a plan of risk management which has established measures and procedures to minimize both the frequency and severity of losses;

(B)

The policy passes on the benefits of reduced losses to plan participants; and

(C)

Rates are actuarially measurable and credible and sufficiently related to actual and expected loss and expense experience of the group so as to assure that nonmembers of the group are not unfairly discriminated against;

(g)

Insurance for child care facilities that are certified in accordance with ORS chapter 329A; or

(h)

Liability insurance for contractors licensed under ORS chapter 701.

(4)

Under ORS 731.244 (Rules), the director shall make rules necessary for implementation of this section. [Formerly 737.346; 2007 c.210 §1]

Source: Section 737.600 — Fictitious grouping for rate purposes prohibited; rules; exceptions, https://www.­oregonlegislature.­gov/bills_laws/ors/ors737.­html.

737.007
“Rating organization” defined
737.012
“Advisory organization” defined
737.017
“Member,” “subscriber” defined
737.025
Purpose, intent of chapter
737.035
Application of chapter
737.045
Remedies of director for violations of chapter
737.205
Filing rates, plans with director
737.207
Commercial liability insurance rate filings
737.209
Hearing on rate filings under ORS 737.207
737.215
Effect of noncompliance with rating regulation
737.225
Records requirements
737.230
Data must include certain information
737.235
Examining rating systems of insurers
737.245
Collusive ratings prohibited
737.255
Authority for cooperative ratings and systems
737.265
Unauthorized adherence to rates, rating systems
737.270
Determination of workers’ compensation premiums for worker leasing company
737.275
Preparation of rates, rating systems and other administrative matters by insurers under common ownership
737.310
Method of rate making
737.312
Agreements among insurers for assignment of risks
737.316
Combining employers for workers’ compensation insurance
737.318
Premium audit program for workers’ compensation insurance
737.320
Review of certain filings
737.322
Rating plan approval
737.325
Suspension or modification of filing requirement
737.330
Contracts to comply with effective filings
737.336
Disapproval of filings by director
737.340
Initiation of proceedings by aggrieved person to determine lawfulness of filings
737.342
Hearing and order procedure
737.350
Application for license by rating organization
737.355
Licensing rating organizations generally
737.360
Rating organization to accept insurers as subscribers
737.365
Cooperative activities among rating organizations and insurers
737.390
Regulation of joint underwriting and joint reinsurance
737.505
Insured entitled to rate information
737.510
Advisory organizations
737.515
Examination of rating, advisory and other organizations
737.526
Interchange of data
737.535
Withholding or giving false information prohibited
737.545
Procedure for suspension of rating organization license
737.560
Rating organization membership
737.600
Fictitious grouping for rate purposes prohibited
737.602
Authorization for insurance for certain projects
737.604
Rules
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