2007 ORS 744.078¹
Appointment of insurance producers
  • rules

(1) An insurance producer shall not act as an agent of an insurer unless:

(a) The insurance producer is an appointed agent of that insurer; or

(b) The insurance producer transacts insurance on behalf of another insurance producer who is an appointed agent of that insurer according to conditions and limitations established by the Director of the Department of Consumer and Business Services by rule.

(2) Each insurer shall maintain a current list of insurance producers contractually authorized to accept applications on behalf of the insurer. Each insurer shall make the list available to the director upon request.

(3) An insurance producer may represent as agent under one insurance producer license as many insurers as may appoint the insurance producer in accordance with this section.

(4) Except as provided in a group contract of insurance under subsection (5) of this section, any person who solicits or procures an application for insurance as an agent of the insurer shall in all matters relating to the application for insurance and the policy issued in consequence of the application be regarded as the agent of the insurer issuing the policy and not the agent of the insured. Any provision in the application and policy to the contrary is invalid and of no effect.

(5) A group contract of insurance and the individual certificate issued pursuant to the group contract may contain provisions stating whether the group policyholder acts as the agent of the individual insured or as the agent of the insurer. [2001 c.191 §16; 2003 c.364 §18]

Notes of Decisions

Under Former Similar Statute (ORS 744.165)

The rule in automobile insurance cases under which knowledge of an agent is imputed to his principal in cases involving third per­sons injured in automobile accidents, despite possible collusion between the insured and insurance agent, is consistent with this sec­tion. State Farm Fire and Cas. Co. v. Sevier, 272 Or 278, 537 P2d 88 (1975)

This sec­tion did not prohibit insurance agent from canceling policy on behalf of insured. Hiransomboon v. Unigard Mutual Ins. Co., 46 Or App 493, 612 P2d 306 (1980)

When an employer is the intermediary in marketing insurance to group of per­sons who are invited to subscribe to or reject coverage individually under master policy, state­ments made to such per­sons relating to applica­tion for insurance are to be regarded as those of an agent for insurer if it can be said that master policy holder solicits or procures individual's applica­tion. Paulson v. Western Life Insurance Co., 292 Or 38, 636 P2d 935 (1981)

Where agents were contract employees of insured, agents were not intermediaries in sale of insurance and therefore could not be regarded as agents of insurer. Port of Portland v. Water Quality Insurance Syndicate, 549 F Supp 233 (1982)

Although this statute es­tab­lishes agency rela­tionship between insurers and sellers of their products, scope of agent's authority is ques­tion of fact. J-P Interna­tional, LTD. v. Thompson, 115 Or App 309, 838 P2d 616 (1992), Sup Ct review denied

1 Legislative Counsel Committee, CHAPTER 744—Insurance Producers; Life Settlement Providers, Brokers and Contracts; Adjusters; Consultants; Third Party Administrators; Reinsurance Intermediaries; Rental Company Limited Licenses, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­744.­html (2007) (last ac­cessed Feb. 12, 2009).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 744, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­744ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.