ORS 746.661¹
Use of credit history or insurance score

(1) An insurer that issues personal insurance policies in this state:

(a) May not cancel or nonrenew personal insurance that has been in effect for more than 60 days based in whole or in part on a consumer’s credit history or insurance score.

(b) May use a consumer’s credit history to decline coverage of personal insurance in the initial underwriting decision only in combination with other substantive underwriting factors. An offer of placement with an affiliate insurer does not constitute a declination of insurance coverage.

(c) May not use the following types of credit history to decline coverage of personal insurance, calculate an insurance score or determine personal insurance premiums or rates:

(A) The absence of credit history or the inability to determine the consumer’s credit history, if the insurer has received accurate and complete information from the consumer, unless the insurer does one of the following:

(i) If the insurer presents information that the absence of credit history or the inability to determine the consumer’s credit history relates to the risk for the insurer, uses the absence of a credit history or inability to determine a consumer’s credit history as allowed by rules adopted by the Director of the Department of Consumer and Business Services;

(ii) Treats the consumer as if the applicant or insured has neutral credit history, as defined by the insurer; or

(iii) Excludes the use of credit information as a factor and uses only other underwriting criteria.

(B) Credit inquiries not initiated by the consumer or inquiries requested by the consumer for the consumer’s own credit information.

(C) Inquiries identified on a consumer’s credit report relating to insurance coverage.

(D) Multiple lender inquiries identified as being from the home mortgage industry and made within 30 days of one another, unless only one inquiry is considered.

(E) Multiple lender inquiries identified as being from the automobile lending industry and made within 30 days of one another, unless only one inquiry is considered.

(F) The consumer’s total available line of credit. However, an insurer may consider the total amount of outstanding debt in relation to the total available line of credit.

(d) May not rerate an existing policy or rerate a customer based on a customer’s credit history or the credit history component of a customer’s insurance score when the marital status of the customer changes due to death or divorce.

(2) If an insurer assigns a consumer to a less favorable rating category for a policy of personal insurance based in whole or in part on the consumer’s credit history or insurance score, the consumer may request, no more than once annually, that the insurer rerate the consumer according to the standards that the insurer would apply to the consumer if the consumer were initially applying for the same personal insurance.

(3) If an insurer uses disputed credit history to determine eligibility for coverage of personal insurance and places a consumer with an affiliate that charges higher premiums or offers less favorable policy terms:

(a) The insurer shall rerate the policy retroactive to the effective date of the current policy term; and

(b) The policy, as reissued or rerated, shall provide the premiums and policy terms for which the consumer would have been eligible if accurate credit history had been used to determine eligibility.

(4) If an insurer charges higher premiums due to disputed credit history, the insurer shall rerate the policy retroactive to the effective date of the current policy term. As rerated, the insurer shall charge the consumer the same premiums the consumer would have been charged if accurate credit history had been used to calculate an insurance score.

(5) Subsections (3) and (4) of this section apply only if the consumer resolves the credit dispute under the process set forth in the federal Fair Credit Reporting Act (15 U.S.C. 1681) and notifies the insurer in writing that the dispute has been resolved.

(6) Except as provided in subsections (2), (3) and (4) of this section, an insurer may only use rating factors other than credit history or insurance score to rerate the policy at renewal. [2003 c.788 §4; 2005 c.464 §1]

1 Legislative Counsel Committee, CHAPTER 746—Trade Practices, https://­www.­oregonlegislature.­gov/­bills_laws/­Archive/­2007ors746.­pdf (2007) (last ac­cessed Feb. 12, 2009).
 
2 OregonLaws.org contains the con­tents of Volume 21 of the ORS, inserted along­side the per­tin­ent statutes. See the preface to the ORS An­no­ta­tions for more information.
 
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. Currency Information