HB 3242 To Be Amended in Our Favor
PIA has spoken to the sponsor of HB 3242, which includes a section aimed directly at agents and increasing the level of an agent’s duty of care to the customer.
The Division of Financial Regulation said: “We think that HB 3242 would expand the scope of an agent’s duty of care, whether independent or captive. Current law uses specific facts to determine whether a special relationship exists to create the duty of care required to support a negligence claim against an independent agent. HB 3242 would codify the special relationship requirement for both independent and captive agents toward policyholders. Note that this bill goes further, extending a producer’s duty of care to all “other person[s] to which the insurance producer solicits, negotiates, or sells insurance.”
We asked the sponsor to amend the bill to delete that section, and he agreed to do so if PIA sent him a letter saying we are neutral if Section 3 is removed. PIA has done so, which should relieve our members minds about agents’ direct involvement in this bill. PIA is now neutral on HB 3242 with the proposed amendment.
HB 3243 – PIA is Opposed
PIA stands strongly opposed to HB 3243, which includes insurance in the definition of real estate, goods and services that are subject to penalties for unlawful trade practices.
HB 3243 has the potential to really harm Oregon insurance consumers. It would:
– redefine the relationship of insurer to insured, to the detriment of insurance consumers
– lead to inflated settlement demands
– encourage more lawsuits
– increase underlying costs related to insurance claims
– raise insurance premiums significantly
– create incentives for insurance fraud
– clog the court system.
HB 3243, by authorizing secondary lawsuits regarding the resolution of claims and authorizing suits against insurers, would undermine the existing strong protections we have for consumers already in Oregon. These policies negatively impacted insurance rates in other states that adopted them.
HB 2920 – PIA Opposes Ban on Insurance Risk Factors in Underwriting
The Professional Insurance Agents of Oregon/Idaho (PIA) stands strongly opposed to HB 2920 which disallows many risk-based predictors in motor vehicle insurance underwriting.
PIA believes that HB 2920 will harm consumers regardless of race or income by:
• reducing competition,
• impacting availability of auto insurance, and/or
• increasing costs for many consumers.
Most insurance consumers pay less for insurance or avoid paying more because risk-based factors are considered. So, banning risk-based factors could increase rates for many drivers in Oregon, and the lowest-risk drivers could see the highest rate hikes. Non-driving factors such as education and occupation are often used to provide discounts offered to students, as well as teachers, first responders and front-line health care workers.
HB 2920 may also disrupt the insurance market and would be particularly harmful to the independent insurance agency system.
Important – Please Help Oppose HB 3243 and HB 2920
Ask legislators to oppose both HB 3243 and HB 2920 by sending some emails. Send individual emails rather than a group email. Please send a blind copy to lanab@teleport.com.
– Write to your state representative now where you live and work. 2023 Find Your Legislator (arcgis.com).
– Ask your staff members to write as well.
– Write to each of the committee members: Business and Labor House 2023 Regular Session – Oregon Legislative Information System (oregonlegislature.gov):
MEMBERS OF HOUSE BUSINESS AND LABOR COMMITTEE
Rep.PaulHolvey@oregonlegislature.gov
Rep.LucettaElmer@oregonlegislature.gov
Rep.NathanSosa@oregonlegislature.gov
Rep.ShellyBoshartDavis@oregonlegislature.gov
Rep.DaciaGrayber@oregonlegislature.gov
Rep.ZachHudson@oregonlegislature.gov
Rep.TravisNelson@oregonlegislature.gov
Rep.RobNosse@oregonlegislature.gov
Rep.VirgleOsborne@oregonlegislature.gov
