2017 ORS 742.208¹
  • fraud
  • representations by insured

A fire insurance policy shall contain the following provisions:

(1) Subject to subsections (2) and (3) of this section, this entire policy shall be void if, whether before or after a loss, the insured has willfully concealed or misrepresented any material fact or circumstance concerning this insurance or the subject thereof, or the interest of the insured therein, or in case of any fraud or false swearing by the insured relating thereto.

(2) All statements made by or on behalf of the insured, in the absence of fraud, shall be deemed representations and not warranties. No such statements that arise from an error in the application shall be used in defense of a claim under the policy unless:

(a) The statements are contained in a written application; and

(b) A copy of the application is indorsed upon or attached to the policy when issued.

(3) In order to use any representation by or on behalf of the insured in defense of a claim under the policy, the insurer must show that the representations are material and that the insurer relied on them. [Formerly 743.612]

(formerly 743.612)

See also annota­tions under ORS 743.612 in permanent edi­tion.

Notes of Decisions

In ac­tion for insurance fraud or false swearing brought under this sec­tion, standard of proof is preponderance of evidence. Mutual of Enumclaw Ins. v. McBride, 295 Or 398, 667 P2d 494 (1983)

“Reliance” means ordinary reliance requiring evidence of detri­mental ac­tion or change in posi­tion. Eslamizar v. American States Ins. Co., 134 Or App 138, 894 P2d 1195 (1995), Sup Ct review denied

Restric­tion of fraud and conceal­ment exclusion to ac­tions by “the insured” does not mandate similar restric­tion of nonconflicting contractual exclusions. Traders and General Insurance Co. v. Freeman, 81 F. Supp. 2d 1070 (D. Or. 2000)

1 Legislative Counsel Committee, CHAPTER 742—Insurance Policies Generally; Property and Casualty Policies, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors742.­html (2017) (last ac­cessed Mar. 30, 2018).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 742, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano742.­html (2017) (last ac­cessed Mar. 30, 2018).
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.