Oregon Agents' Advocate - Feb. 10, 2025

February 10, 2025

BAD BILL ALERT!

Make your voice heard on these bad insurance bills that are scheduled for public hearings this week!

HB 2563 (Public Hearing on 2/11 in House Committee on Commerce & Consumer Protection)

What does this bill do? Requires an insurer to provide to an insured a clear and reasonable explanation of the reasons for 10% or more increase in the premium amount for a qualified policy (homeowner & motor vehicle) upon renewal of the qualified policy.

What is the impact?

• More Administrative Work – Agents will likely face an increased workload handling client questions and explaining insurer-provided premium increase notices. Insurers must now provide detailed written explanations, but many policyholders will still turn to their agents for clarification.
• More Frustrated Customers – Consumers may become confused or alarmed by the breakdown of premium increases, especially when sensitive factors like credit history, claims history, and geographic risk are included. Agents will be responsible for managing these concerns.
• More Delays & Coverage Disruptions – The bill requires insurers to provide a written explanation at least 20 days before renewal if a premium increases by 10% or more. This could create processing delays, and clients might hesitate or shop elsewhere, even when the increase is justified.
• More Burden on Smaller Insurers & Less Market Competition – The new requirements could disproportionately impact smaller insurers that do not have the same administrative capacity as larger companies. Less competition in the market means fewer choices for your clients.

HB 3423 (Public Hearing on 2/13 in House Committee on Commerce & Consumer Protection)

What does the bill do? Prohibits an insurer from using any of the following when determining eligibility, premiums or rates for a motor vehicle liability insurance policy:

• an applicant’s or insured’s credit history, including an insurance score based on the applicant’s or insured’s credit history;
• an applicant’s or insured’s sex or gender; or
• an applicant’s or insured’s marital status

What is the impact?

• Loss of Competitive Pricing Tools – The bill removes credit history as a rating factor, which is a key tool insurers use to assess risk accurately. This will lead to higher premiums for many policyholders, reducing affordability and limiting options for clients.
• Increased Premiums for Responsible Drivers – Consumers with strong credit scores, who often receive lower rates, will see unwarranted price hikes, making it harder for agents to provide cost-effective coverage.
• Market Disruptions & Reduced Availability – Insurers may adjust their underwriting models or reduce offerings in Oregon, leading to fewer choices for independent agents to present to clients.
• More Policy Cancellations & Shopping Around – Higher costs could force clients to seek alternative coverage or cancel policies altogether, making it harder for agents to retain business and build long-term relationships.

There is power in numbers! Participate in opposing these bills by:

• Submit written testimony to the committee. Reach out to isis@ustrategies.org if you’d like a testimony template to submit.
• Contact members of the designated committees, and urge them to vote NO. Make sure to mention if you’re a constituent, find your legislator here. Please CC isis@ustrategies.org on any emails to legislators.

House Committee on Consumer & Commerce Protection

Representative Nathan Sosa (D), Chair: rep.NathanSosa@oregonlegislature.gov
Representative Farrah Chaichi (D), Vice-Chair: rep.farrahchaichi@oregonlegislature.gov

Representative Virgle Osborne (R), Vice-Chair: rep.virgleosborne@oregonlegislature.gov

Representative Jami Cate (R): Rep.JamiCate@oregonlegislature.gov

Representative Willy Chotzen (D): rep.willychotzen@oregonlegislature.gov

Representative David Gomberg (D): Rep.DavidGomberg@oregonlegislature.gov

Representative Courtney Neron (D): Rep.CourtneyNeron@oregonlegislature.gov

Representative E. Werner Reschke (R): Rep.EWernerReschke@oregonlegislature.gov

Representative Kim Wallan (R): Rep.KimWallan@oregonlegislature.gov

Representative Jules Walters (D): rep.juleswalters@oregonlegislature.gov

If you have questions, please reach out to Isis Thornton-Saunders at isis@ustrategies.org.

Lobbying services provided by: