Gov. John Kitzhaber has signed into law SB 414, which expressly grants the Oregon Insurance Division civil restitution powers. The new law authorizes the OID to pursue an insurer on a consumer’s behalf for actual damages the consumer suffered as a result of an insurer’s violation of a provision of the Insurance Code, a violation of applicable federal law, or the insurer’s breach of an insurance contract or policy the insurer has with the consumer. The bill also allows the OID to seek other equitable relief the director deems appropriate under the circumstances.
NAMIC, in conjunction with its members and the other trade associations, expressed concerns to the Legislature about the lack of regulatory necessity for civil restitution and the administrative law burdens and costs that civil restitution will create for insurers and the OID. NAMIC and its insurance colleagues pointed out to legislators that the OID already has a proven track record of thoroughly and effectively regulating the insurance industry to the benefit of insurance consumers utilizing the regulatory procedures currently authorized by law.
NAMIC will work closely with the OID and interested stakeholders to make sure that the new restitution law is implemented and administered in a way that does not interfere with or deprive insurers of appropriate due process protections.
Christian J. Rataj
State Affairs Manager
Posted: Tuesday, July 09, 2013 2:39:05 PM. Modified: Friday, August 16, 2013 12:38:11 PM.
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