ORS 746.201
Depository institution to obtain required property insurance when borrower does not

  • notice required

(1)

In a contract or loan agreement, or in a separate document accompanying the contract or loan agreement and signed by the mortgagor, borrower or purchaser, that provides for a loan or other financing secured by the mortgagor’s, borrower’s or purchaser’s real or personal property and that authorizes the secured party to place insurance on the property when the mortgagor, borrower or purchaser fails to maintain the insurance as required by the contract or loan agreement or the separate document, a warning in substantially the following form shall be set forth in 10-point type:

Unless you provide us with evidence of the insurance coverage as required by our contract or loan agreement, we may purchase insurance at your expense to protect our interest. This insurance may, but need not, also protect your interest. If the collateral becomes damaged, the coverage we purchase may not pay any claim you make or any claim made against you. You may later cancel this coverage by providing evidence that you have obtained property coverage elsewhere.
You are responsible for the cost of any insurance purchased by us. The cost of this insurance may be added to your contract or loan balance. If the cost is added to your contract or loan balance, the interest rate on the underlying contract or loan will apply to this added amount. The effective date of coverage may be the date your prior coverage lapsed or the date you failed to provide proof of coverage.
The coverage we purchase may be considerably more expensive than insurance you can obtain on your own and may not satisfy any need for property damage coverage or any mandatory liability insurance requirements imposed by applicable law.

(2)

Substantial compliance by a secured party with subsection (1) of this section constitutes a complete defense to any claim arising under the laws of this state challenging the secured party’s placement of insurance on the real or personal property in which the secured party has a security interest, for the protection of the secured party’s interest in the property.

(3)

Nothing contained in this section shall be construed to require any secured party to place or maintain insurance on real or personal property in which the secured party has a security interest, and the secured party shall not be liable to the mortgagor, borrower or purchaser or to any other party as a result of the failure of the secured party to place or maintain such insurance.

(4)

The failure of a secured party prior to January 1, 1996, to include in a contract or loan agreement, or in a separate document accompanying the contract or loan agreement, the notice set forth in subsection (1) of this section shall not be admissible in any court or arbitration proceeding or otherwise used to prove that a secured party’s actions with respect to the placement or maintenance of insurance on real or personal property in which the secured party has a security interest are or were unlawful or otherwise improper. A secured party shall not be liable to the mortgagor, borrower or purchaser or to any other party for placing such insurance in accordance with the terms of an otherwise legal contract or loan agreement with the mortgagor, borrower or purchaser entered into prior to January 1, 1996. [1977 c.742 §5; 1995 c.313 §3; 2003 c.363 §13]

Source: Section 746.201 — Depository institution to obtain required property insurance when borrower does not; notice required, https://www.­oregonlegislature.­gov/bills_laws/ors/ors746.­html.

746.005
Trade practices exempted from prohibitions
746.015
Discrimination
746.018
Discrimination in issuance of burglary, theft, robbery or casualty policies prohibited
746.021
Discrimination under health benefit plans
746.023
Discrimination against living donors or body part donors with respect to life insurance, health insurance or long term care insurance
746.025
Securities or other contracts as inducement to insurance
746.035
Inducements not specified in policy
746.045
Prohibition on rebates
746.055
Title insurance commissions, rebates and discounts
746.065
Personal or controlled insurance
746.075
Misrepresentation generally
746.085
Regulating replacement of life insurance
746.100
Misrepresentation in insurance applications or transactions
746.110
False, deceptive or misleading statements
746.115
Advertisements in languages other than English
746.120
Illegal dealing in premiums
746.125
Limitation on coverage of eye care services
746.130
Insurance connected to sale or rental of property
746.135
Genetic tests and information
746.137
Reimbursement of private emergency responder’s actual expenses in emergency response
746.140
Sale of life insurance with securities
746.145
Workers’ compensation insurance
746.147
Workers’ compensation insurance
746.150
Other insurance
746.155
Applicability of ORS 746.145 and 746.150
746.160
Practices injurious to free competition
746.195
Insurance on property securing loan or credit
746.201
Depository institution to obtain required property insurance when borrower does not
746.213
Definitions for ORS 746.213 to 746.219
746.215
Regulation of depository institutions with regard to insurance sales or solicitations
746.217
Disclosures to customers
746.219
Investigatory powers
746.220
Debtor’s option in furnishing credit life or credit health insurance
746.230
Unfair claim settlement practices
746.233
Unfair claim settlement practices with respect to prior authorizations of health care items or services
746.240
Undefined trade practices injurious to public prohibited
746.260
Driving record not to be considered in issuance of motor vehicle insurance
746.265
Purposes for which abstract of nonemployment driving record may be considered
746.270
Use of past investment or predicted future investment experience in sale of variable life insurance policies
746.275
Definitions for ORS 746.275 to 746.300
746.280
Designation of particular motor vehicle repair shop by insurer prohibited
746.285
Notice of prohibition in motor vehicle repair shops
746.287
Insurer requirement of installation of aftermarket crash part in vehicle
746.289
Insurer offer of crash part warranty
746.290
Notice of prohibition in policies and by adjusters
746.292
Motor vehicle repair shops
746.295
Proof and amount of loss under motor vehicle liability policies
746.300
Liability of insurers and motor vehicle repair shops for damages
746.305
Rules
746.308
Violation of provisions regarding totaled vehicles as violation of Insurance Code
746.310
Representing or aiding unauthorized insurer prohibited
746.320
Service of process equivalent to personal service on unauthorized foreign or alien insurer
746.330
Judgment by default after service of process under ORS 746.320
746.340
Conditions to be met by defendant unauthorized insurer before filing motions or pleadings
746.350
Attorney fee allowable to prevailing party
746.360
Exceptions to application of unauthorized insurer service of process law
746.370
Records of insureds
746.405
Definitions for ORS 746.405 to 746.530
746.422
Inquiries from director to premium finance company
746.425
Applicability of ORS 746.405 to 746.530
746.465
Records required of premium finance companies
746.470
Prohibition against interfering with premium financing recommendation
746.475
Premium finance agreements
746.485
Regulation of service charge for premium financing
746.495
Delinquency charges regulated
746.505
Cancellation of policy by premium finance company
746.515
Return of unearned premiums on cancellation
746.525
Agreement effective as security interest
746.530
Attorney fees
746.600
Definitions for ORS 746.600 to 746.690
746.605
Purpose
746.606
Information privacy standards for health insurers
746.607
Use and disclosure of personal information
746.608
Rules
746.609
Exemptions for health insurers
746.610
Application of ORS 746.600 to 746.690
746.611
Personal representative of deceased person
746.612
No right of action
746.615
Pretext interviews prohibited
746.620
Notice of insurance information practices
746.625
Marketing and research surveys
746.630
Authorization for disclosure of certain information
746.632
Genetic information used for treatment
746.635
Investigative consumer reports
746.640
Access to recorded personal information
746.645
Correction, amendment or deletion of recorded personal information
746.650
Reasons for adverse underwriting decisions
746.655
Information concerning previous adverse underwriting decisions
746.660
Basing adverse underwriting decision on previous adverse decision
746.661
Use of credit history or insurance score
746.662
Filing of insurance scoring models
746.663
Cancellation or nonrenewal of personal insurance policies based on credit history or insurance score
746.665
Limitations and conditions on disclosure of certain information
746.668
Relationship of ORS 746.620, 746.630 and 746.665 to federal Fair Credit Reporting Act
746.670
Investigatory powers
746.675
Service of process on out-of-state insurance-support organizations
746.680
Remedies
746.685
Liability for disclosure of information
746.686
Use of prior claim or inquiry in determination to issue or renew homeowner insurance policy
746.687
Cancellation of homeowner insurance policy
746.688
Use of loss history reports
746.690
Obtaining information under false pretenses prohibited
746.991
Penalties
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