ORS Chapter 737
Chapter 737 — Ratesand Rating Organizations
2009 EDITION
RATESAND RATING ORGANIZATIONS
INSURANCE
GENERALPROVISIONS
737.007 “Ratingorganization” defined
737.012 “Advisoryorganization” defined
737.017 “Member,”“subscriber” defined
737.025 Purpose,intent of chapter
737.035 Applicationof chapter
737.045 Remediesof director for violations of chapter
RATESAND RATE MAKING
737.205 Filingrates, plans with director; public inspection of filings; effect on workers’compensation filings
737.207 Commercialliability insurance rate filings; prior approval by director
737.209 Hearingon rate filings under ORS 737.207; order; review
737.215 Effectof noncompliance with rating regulation
737.225 Recordsrequirements; inspection; statistics; workers’ compensation statistical agency;rules
737.230 Datamust include certain information
737.235 Examiningrating systems of insurers; costs
737.245 Collusiveratings prohibited; liability for damages
737.255 Authorityfor cooperative ratings and systems
737.265 Unauthorizedadherence to rates, rating systems; workers’ compensation insurance policyforms
737.270 Determinationof workers’ compensation premiums for worker leasing company; reportingstatistical experience
737.275 Preparationof rates, rating systems and other administrative matters by insurers undercommon ownership
737.310 Methodof rate making; factors considered; rules
737.312 Agreementsamong insurers for assignment of risks; rate modifications
737.316 Combiningemployers for workers’ compensation insurance; conditions
737.318 Premiumaudit program for workers’ compensation insurance; rules
737.320 Reviewof certain filings; effective date of filings; investigation and evaluation ofworkers’ compensation rate filings
737.322 Ratingplan approval; rules; hearing on disapproval; costs
737.325 Suspensionor modification of filing requirement; rules; excess rates for specific risks
737.330 Contractsto comply with effective filings; exception
737.336 Disapprovalof filings by director; noncompliance with chapter
737.340 Initiationof proceedings by aggrieved person to determine lawfulness of filings; hearing
737.342 Hearingand order procedure
RATINGORGANIZATIONS
737.350 Applicationfor license by rating organization
737.355 Licensingrating organizations generally; licensing workers’ compensation ratingorganizations; rules; revocation and suspension; fees
737.360 Ratingorganization to accept insurers as subscribers; rules of organization to bereasonable; review of applications for subscribership and of reasonableness ofrules
737.365 Cooperativeactivities among rating organizations and insurers
737.390 Regulationof joint underwriting and joint reinsurance
737.505 Insuredentitled to rate information; remedies of aggrieved persons
737.510 Advisoryorganizations; registration; jurisdiction of director to restrict unfairpractices
737.515 Examinationof rating, advisory and other organizations; payment of costs; acceptance ofreport from another state
737.526 Interchangeof data; rules; promoting uniformity of rating laws
737.535 Withholdingor giving false information prohibited
737.545 Procedurefor suspension of rating organization license
737.560 Ratingorganization membership
FICTITIOUSGROUPINGS
737.600 Fictitiousgrouping for rate purposes prohibited; rules; exceptions
737.602 Authorizationfor insurance for certain projects; premiums; qualifications
737.604 Rules
AUTHORIZATIONFOR INSURANCE FOR COMBINED SEWER OVERFLOW PROJECTS
(Temporaryprovisions relating to authorization for insurance for combined sewer overflowprojects are compiled as notes following ORS 737.604)
737.005 [Amended by1963 c.580 §92; repealed by 1967 c.359 §704]
GENERALPROVISIONS
737.007“Rating organization” defined. (1) As used in this chapter, unless thecontext requires otherwise, “rating organization” means:
(a)Every person, other than an insurer, whether located within or outside thisstate who has as the person’s object or purpose the making of rates, ratingplans or rating systems; or
(b)Two or more insurers which act in concert for the purpose of making rates,rating plans or rating systems.
(2)Subsection (1) of this section does not include, apply to or affect two or moreinsurers operating within the specific authorizations contained in ORS 737.275,737.312, 737.365, 737.390 and 737.526. [1969 c.690 §14]
737.010 [Amended by1967 c.359 §303; renumbered 737.280]
737.012“Advisory organization” defined. As used in this chapter, unless thecontext requires otherwise, “advisory organization” means every group,association or other organization of insurers, whether located within oroutside this state, which assists authorized insurers which make their ownfilings or licensed rating organizations in rate making, by the collection andfurnishing of loss or expense statistics or by the submission ofrecommendations, but which does not make filings under this chapter. [1969c.690 §15]
737.015 [Repealed by1967 c.359 §704]
737.017“Member,” “subscriber” defined. As used in this chapter, unless thecontext requires otherwise:
(1)“Member” means:
(a)An insurer that participates in or is entitled to participate in the managementof a rating, advisory or other organization; or
(b)For purposes of workers’ compensation insurance, an insurer that is affiliatedor associated with a rating, advisory or other organization by agreement withthe organization for the purpose of obtaining the rates and rating manuals orthe services offered by the organization.
(2)“Subscriber” means an insurer that is furnished at its request:
(a)With rates and rating manuals by a rating organization of which it is not amember; or
(b)With advisory services by an advisory organization of which it is not a member.[1969 c.690 §16; 1999 c.235 §6]
737.020 [1967 c.359 §299;repealed by 1969 c.690 §29]
737.025Purpose, intent of chapter. (1) The purpose of this chapter is to promote thepublic welfare by regulating insurance rates to the end that they shall not beexcessive, inadequate or unfairly discriminatory and to authorize cooperationbetween insurers in rate making and other related matters.
(2)It is the express intent of this chapter to permit and encourage competitionbetween insurers on a sound financial basis. [1969 c.690 §1]
737.030 [1967 c.359 §300;repealed by 1969 c.690 §29]
737.035Application of chapter. This chapter applies to all forms of insurance onrisks or operations in this state, except:
(1)Reinsurance, other than joint reinsurance to the extent stated in ORS 737.390;
(2)Insurance against loss of, or damage to, aircraft, including accessories andequipment, or against liability arising out of ownership, maintenance or use ofaircraft;
(3)Wet marine and transportation insurance;
(4)Life insurance;
(5)Health insurance; or
(6)Surplus lines insurance. [1969 c.690 §2; 2005 c.185 §10]
737.040 [1967 c.359 §301;repealed by 1969 c.690 §29]
737.045Remedies of director for violations of chapter. (1) If theDirector of the Department of Consumer and Business Services has reason tobelieve that a rate, rating plan or rating system filed or used by an insureror filed by a rating or advisory organization on behalf of an insurer does notcomply with the requirements and standards of this chapter, the director may issuean order directing the insurer or the rating or advisory organization todiscontinue or desist from the noncompliance. An order issued under thissubsection is subject to the provisions of ORS 731.252.
(2)If the director holds a hearing on an order issued pursuant to subsection (1)of this section, the insurer or rating or advisory organization filing or usingthe rate, rating plan or rating system shall pay to the director the just andlegitimate costs of the hearing, including actual necessary expenses.
(3)If the director finds after a hearing under ORS 737.340 that any rate, ratingplan or rating system violates the provisions of this chapter, the director mayissue an order specifying the violation and stating when, within a reasonableperiod of time, the further use of such rate, rating plan or rating system byan insurer or rating or advisory organization shall be prohibited.
(4)If the director finds after a hearing under ORS 737.215 or 737.340 that aninsurer or rating or advisory organization is in violation of any provision ofthis chapter other than the provisions dealing with rates, rating plans orrating systems, the director may issue an order specifying the violation andrequiring compliance within a reasonable time.
(5)If the director finds after a hearing under ORS 737.215 that the violation ofany of the provisions of this chapter applicable to it by any insurer or ratingorganization that has been the subject of a hearing was willful, the directormay suspend or revoke the certificate of authority of such insurer or thelicense of such rating organization.
(6)If the director finds after a hearing that any rating organization haswillfully engaged in any fraudulent or dishonest act or practices, the directormay suspend or revoke the license of such organization. [1969 c.690 §10; 1987c.774 §143]
737.050 [1967 c.359 §302;repealed by 1969 c.690 §29]
737.105 [Amended by1961 c.562 §7; 1965 c.611 §17; repealed by 1967 c.359 §704]
737.110 [Repealed by1967 c.359 §704]
737.115 [Repealed by1967 c.359 §704]
737.120 [Repealed by1967 c.359 §704]
737.125 [Repealed by1967 c.359 §704]
737.130 [Repealed by1967 c.359 §704]
737.135 [Repealed by1969 c.336 §21 and 1969 c.690 §29]
737.140 [Repealed by1967 c.359 §704]
737.145 [Repealed by1967 c.359 §704]
737.150 [Repealed by1967 c.359 §704]
737.155 [Repealed by1967 c.359 §704]
737.160 [Repealed by1967 c.359 §704]
737.165 [Repealed by1967 c.359 §704]
737.170 [Repealed by1967 c.359 §704]
737.175 [Repealed by1967 c.359 §704]
737.180 [Amended by1967 c.359 §308; renumbered 737.312]
737.185 [Repealed by1967 c.359 §704]
RATESAND RATE MAKING
737.205Filing rates, plans with director; public inspection of filings; effect onworkers’ compensation filings. (1) Every insurer shall file with theDirector of the Department of Consumer and Business Services copies of therates, rating plans and rating systems used by it. Except as provided in ORS737.207, 737.209 and 737.320 (2), each filing shall become effective immediatelyon the date specified therein but not earlier than the date such filing isreceived by the director. This subsection does not apply to inland marine riskswhich by general custom of the business are not written according to manualrates or rating plans.
(2)An insurer may satisfy its obligation to make such filings by becoming a memberof or a subscriber to a licensed rating organization which makes such filings,and by authorizing the director to accept such filings on its behalf. Suchinsurer may so adopt the filings of a rating organization on part of theclasses of risks insured by it and may make its own filings as to other classeswhich shall be uniform throughout the insurer’s territorial classification.This subsection does not apply to workers’ compensation insurance filingsexcept to the extent that the rating organization filings o