Bill Text: OR SB513 | 2013 | Regular Session | Introduced

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Bill Title: Relating to remedies for unlawful insurance practices.

Spectrum: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB513 Detail]

Download: Oregon-2013-SB513-Introduced.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 807

                         Senate Bill 513

Sponsored by COMMITTEE ON GENERAL GOVERNMENT, CONSUMER AND SMALL
  BUSINESS PROTECTION

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Permits person to bring action against insurer or other person
that commits unlawful insurance practice. Directs court to award
attorney fees in certain circumstances. Allows class actions
against persons that commit unlawful insurance practices.
Requires insurer or other person to indemnify insurance producer
against insurance producer's unlawful acts or omissions if
insurance producer acted within scope of insurance producer's
employment.  Establishes two-year statute of limitations for
actions.
  Permits Attorney General to punish unlawful insurance practice
as unlawful practice under unlawful trade practices law.

                        A BILL FOR AN ACT
Relating to remedies for unlawful insurance practices; creating
  new provisions; amending ORS 646.607, 746.308, 746.612, 746.680
  and 746.685; and repealing ORS 746.530.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2013 Act is added to and made
a part of ORS chapter 746. + }
  SECTION 2.  { + (1)(a) A person that suffers an ascertainable
loss of money or property, real or personal, as a result of an
act or omission prohibited under ORS 746.075, 746.110, 746.230,
746.240 or 746.405 to 746.530 that another person commits may
bring an individual action in an appropriate court to recover
actual damages or statutory damages of $200, whichever is
greater.
  (b) The court or the jury may award punitive damages and the
court may provide equitable relief that the court considers
necessary and proper.
  (c) A person must bring an action under this subsection within
two years after discovering the unlawful act or omission.
  (d) A person may maintain an action under this subsection as a
class action. In a class action under this subsection:
  (A) Plaintiffs in the action may recover statutory damages on
behalf of class members only if the plaintiffs establish that the
class members have suffered an ascertainable loss of money or
property, real or personal, as a result of an actual or alleged
unlawful act or omission by the defendant;
  (B) The trier of fact may award punitive damages; and
  (C) The court may award equitable relief.
  (e) The court may award reasonable attorney fees and costs at
trial and on appeal to a prevailing plaintiff in an action under
this subsection. The court may award reasonable attorney fees and
costs at trial and on appeal to a prevailing defendant only if
the court finds that an objectively reasonable basis for bringing
the action or asserting the ground for appeal did not exist. The
court may not award attorney fees to a prevailing defendant under
the provisions of this paragraph if the plaintiff maintains the
action under this paragraph as a class action in accordance with
ORCP 32.
  (2) An insurer or other person that employs an insurance
producer shall indemnify and hold the insurance producer harmless
against liability, settlements, costs, damages and expenses in
connection with an action brought under subsection (1) of this
section for the insurance producer's actual or alleged unlawful
act or omission, provided that:
  (a) The insurance producer acted within the scope, duties and
responsibilities of the insurance producer's employment at the
time the actual or alleged unlawful act or omission occurred; and
  (b) The actual or alleged unlawful act or omission did not
result from the insurance producer's intentional or willful
wrongdoing. + }
  SECTION 3. ORS 646.607 is amended to read:
  646.607. A person engages in an unlawful practice
 { - when - }  { +  if + } in the course of the person's
business, vocation or occupation the person:
  (1) Employs any unconscionable tactic in connection with
 { - the sale, rental or other disposition of - }  { +  selling,
renting or otherwise disposing of + } real estate, goods or
services, or
  { - collection or enforcement of - }  { +  collecting or
enforcing + } an obligation;
  (2) Fails to deliver all or any portion of real estate, goods
or services as promised, and upon request of the customer, fails
to refund   { - any - }  money that   { - has been received - }
 { +  the person receives + } from the customer   { - that was
for the purchase of the - }  { +  to purchase the + } undelivered
real estate, goods or services and that   { - is not retained
by - }  the seller { +  does not retain + } pursuant to any
right, claim or defense asserted in good faith. This subsection
does not create a warranty obligation and does not apply to a
dispute over the quality of real estate, goods or services
delivered to a customer;
  (3) Violates ORS 401.965 (2);
  (4) Violates a provision of ORS 646A.725 to 646A.750;
  (5) Violates ORS 646A.530;   { - or - }
  (6) Employs a collection practice that is unlawful under ORS
646.639  { - . - }  { + ; or
  (7) Violates a provision of ORS 746.075, 746.110, 746.230,
746.240 or 746.405 to 746.530. + }
  SECTION 4. ORS 746.308 is amended to read:
  746.308. An insurer that violates ORS 819.014 or
819.018 { + , + }
  { - shall be considered to have violated a provision of the
Insurance Code - }  { +  in addition to any other penalties
provided for the violation, is also subject to an action brought
under ORS 646.607 or section 2 of this 2013 Act + }.
  SECTION 5. ORS 746.612 is amended to read:
  746.612.   { - Nothing in ORS 746.607 may be construed to
create a new private right of action against a health insurer - }
 { +  Notwithstanding the provisions of section 2 of this 2013
Act, a violation of ORS 746.607 does not create a new private
right of action against a health insurer + }.
  SECTION 6. ORS 746.680 is amended to read:
  746.680.  { + Notwithstanding the provisions of section 2 of
this 2013 Act: + }
  (1) A person whose rights granted under ORS 746.607 (7),
746.640, 746.645 or 746.650 are violated may apply to the circuit
court for the county in which the person resides, or any other
court of competent jurisdiction, for appropriate equitable relief
if an insurer, insurance producer or insurance-support
organization fails to comply with ORS 746.607 (7), 746.640,
746.645 or 746.650.
  (2) A licensee or insurance-support organization that discloses
information in violation of ORS 746.665 or a health insurer that
uses or discloses information in violation of ORS 746.607 (1) or
(2) is liable for damages sustained by the individual about whom
the information relates. However, an individual is not entitled
to a monetary award that exceeds the actual damages
 { - sustained by - }  the individual { +  sustains + } as a
result of the violation of ORS 746.607 (1) or (2) or 746.665.
  (3) In any action brought pursuant to this section, the court
may award the cost of the action and reasonable attorney fees to
the prevailing party.
  (4) An action under this section must be brought within two
years from the date the alleged violation is or should have been
discovered.
  (5) Except as specifically provided in this section,
 { - there shall be no - }  { +  a + } remedy or recovery { +  is
not + } available to individuals, in law or in equity, for
occurrences   { - constituting - }  { +  that constitute + } a
violation of any provision of ORS 746.600 to 746.690.
  SECTION 7. ORS 746.685 is amended to read:
  746.685.   { - No - }  { +  Notwithstanding the provisions of
section 2 of this 2013 Act, a + } cause of action in the nature
of defamation, invasion of privacy or negligence   { - shall - }
 { +  does not + } arise against
  { - any - }  { +  a + } person for disclosing personal or
privileged information in accordance with ORS 746.600 to 746.690
and 750.055, nor   { - shall such - }  { +  does + } a cause of
action arise against   { - any - }  { +  a + } person for
furnishing personal or privileged information to an insurer,
insurance producer or insurance-support organization. However,
this section   { - shall - }  { +  does not + } provide
 { - no - }  immunity for disclosing or furnishing false
information with malice or willful intent to injure any person.
  SECTION 8.  { + ORS 746.530 is repealed. + }
  SECTION 9.  { + Section 2 of this 2013 Act, the amendments to
ORS 646.607 and 746.612 by sections 3 and 5 of this 2013 Act and
the repeal of ORS 746.530 by section 8 of this 2013 Act apply to
all actual or alleged acts or omissions prohibited under ORS
746.075, 746.110, 746.230, 746.240 or 746.405 to 746.530 that a
person commits on or after the effective date of this 2013
Act. + }
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