2015 ORS 742.013¹
Representations in applications

(1) All statements and descriptions in any application for an insurance policy by or in behalf of the insured, shall be deemed to be representations and not warranties. Misrepresentations, omissions, concealments of facts and incorrect statements shall not prevent a recovery under the policy unless the misrepresentations, omissions, concealments of fact and incorrect statements:

(a) Are contained in a written application for the insurance policy, and a copy of the application is indorsed upon or attached to the insurance policy when issued;

(b) Are shown by the insurer to be material, and the insurer also shows reliance thereon; and

(c) Are either:

(A) Fraudulent; or

(B) Material either to the acceptance of the risk or to the hazard assumed by the insurer.

(2) This section does not apply to surety insurance. [Formerly 743.042]

(formerly 743.042)

See also annota­tions under ORS 743.042 in permanent edi­tion.

Notes of Decisions

Not reliance alone, but reliance where there is right to rely will relieve party from an­oth­er's fraud under this sec­tion. Kubeck v. Consol. Underwriters, 267 Or 548, 517 P2d 1039 (1974)

Incorrect answers on the insurance applica­tion were not ma­te­ri­al as matter of law. Santilli v. State Farm Life Ins. Co., 278 Or 53, 562 P2d 965 (1977)

Insurer has no duty to investigate representa­tions of policy applica­tion where applica­tion is incomplete on its face unless omissions are so obviously ma­te­ri­al that reliance on incomplete applica­tion would be reckless. Kraus v. Prudential Ins. Co. of America, 799 F2d 502 (1986)

Where affidavit of Pacific Hospital Associa­tion's (PHA) executive vice president states that omitted condi­tion from health insurance applica­tion was ma­te­ri­al to acceptance of risk, PHA relied on accuracy of plaintiff's in­for­ma­­tion in issuing earlier policy and court did not err in granting summary judg­ment. Martin v. Pacific Hospital Assoc., 101 Or App 37, 788 P2d 1029 (1990)

Where typewritten version did not vary ma­te­ri­ally from original and statutes do not require "copy" be signed and insured signed Part II of typewritten version, thereby affirming all parts, unsigned typewritten attach­ment to policy was "copy" of original signed, handwritten applica­tion. Ives v. INA Life Ins. Co., 101 Or App 429, 790 P2d 1206 (1990), Sup Ct review denied

To es­tab­lish reliance on representa­tions, insurer must show reliance in fact; reliance that was justified in light of facts known to insurer at time; and insurer's right to rely on representa­tions. Story v. Safeco Life Insurance Co., 179 Or App 688, 40 P3d 1112 (2002)

Where insurer makes prima facie showing of reasonable reliance on insured's representa­tion, insured has burden to show insurer knew facts that revealed falsity of representa­tion or should have led insurer to learn falsity of representa­tion. Story v. Safeco Life Insurance Co., 179 Or App 688, 40 P3d 1112 (2002)

For copy of applica­tion to be "indorsed upon" policy, ma­te­ri­al in­for­ma­­tion from applica­tion must be inscribed or otherwise reproduced on policy itself. Brock v. State Farm Mutual Automobile Insurance Co., 195 Or App 519, 98 P3d 759 (2004)

To deny coverage based on misrepresenta­tion in applica­tion, indorse­ment upon, or attach­ment to, insurance policy must be sufficient to fully and precisely apprise applicant of in­for­ma­­tion being relied upon by insurer in issuing policy. Brock v. State Farm Mutual Automobile Insurance Co., 195 Or App 519, 98 P3d 759 (2004)


1 Legislative Counsel Committee, CHAPTER 742—Insurance Policies Generally; Property and Casualty Policies, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors742.­html (2015) (last ac­cessed Jul. 16, 2016).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2015, Chapter 742, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano742.­html (2015) (last ac­cessed Jul. 16, 2016).
 
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.