2017 ORS 742.566¹
Renewal of policies
  • replacement policy in lieu of renewal
  • requirements for refusal to renew

(1) An insurer shall offer renewal of a policy to an insured, contingent upon payment of premium as stated in the offer, unless the insurer mails or delivers to the named insured, at the address shown in the policy, at least 30 days’ advance notice of nonrenewal. The notice must contain or be accompanied by a statement of the reason or reasons for nonrenewal.

(2)(a) If an insurer offers to an insured, in lieu of a renewal, a replacement policy from a different company that is part of a group of companies that is under the same ownership or control as the insurer, any new terms, rates and policy provisions in the replacement policy take effect on the renewal date if the insurer sends the insured and any insurance producer with whom the insured previously dealt notice at least 45 days before the renewal date. The notice must include the replacement policy or a description of any terms in the replacement policy that differ from the policy that the insurer will not renew.

(b) An insured may cancel a replacement policy at any point before the replacement policy becomes effective.

(c) Earned premium for any period of time in which a replacement policy was in effect before a cancellation must be calculated pro rata at the lower of the current rate or the previous year’s rate.

(d) If an insured accedes to a replacement policy, any increase in premium or change in policy terms is effective on the day after the previous policy expires.

(e) The notice required under this subsection applies only if the company that offers a replacement policy is different from the company that issued the policy that would otherwise be subject to renewal.

(3) An insurer need not notify the named insured or any other insured of nonrenewal of the policy if the insurer has mailed or delivered a notice of expiration or cancellation on or prior to the 30th day preceding expiration of the policy period.

(4) Notwithstanding an insurer’s failure to comply with this section, the policy terminates on the effective date of any replacement or succeeding automobile insurance policy, with respect to any automobile designated in both policies.

(5) An insurer may not refuse to renew a policy for the reason that the driving privileges of the named insured or any operator either resident in the same household or who customarily operates an automobile insured under the policy were suspended pursuant to ORS 809.280 (Department procedures following court order of suspension or revocation) (6) or (8) if the suspension was based on a nondriving offense. [Formerly 743.916; 1991 c.860 §7b; 2011 c.355 §24; 2017 c.250 §1]

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 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.