Bill Text: OR SB713 | 2011 | Regular Session | Introduced

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Bill Title: Relating to arbitration of disputes over insurance policy claims.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2011-06-30 - In committee upon adjournment. [SB713 Detail]

Download: Oregon-2011-SB713-Introduced.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2011 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 3137

                         Senate Bill 713

Sponsored by Senator ATKINSON

                             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.

  Requires all mandatory arbitration provisions in insurance
policies between insureds in this state and insurers to make
State Insurance Arbitration Board arbitrator. Requires Director
of the Department of Consumer and Business Services to appoint
members of board based upon public contracting process.
Compensates members of board from state funds.
  Allows insured to terminate arbitration proceedings filed after
January 1, 2009, and before effective date of Act, and vacate
decisions on such claims. Allows insured to refile such claims
with State Insurance Arbitration Board.

                        A BILL FOR AN ACT
Relating to arbitration of disputes over insurance policy claims.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 and 3 of this 2011 Act are added to
and made a part of the Insurance Code. + }
  SECTION 2.  { + If an insurance policy offered to an insured
residing in this state includes a provision requiring binding
arbitration of an appeal by the insured of a decision of the
insurer denying or partially denying a claim under the policy,
the arbitration must be conducted by the State Insurance
Arbitration Board established by section 3 of this 2011 Act. + }
  SECTION 3.  { + (1) The Director of the Department of Consumer
and Business Services shall establish a State Insurance
Arbitration Board with authority to provide arbitration for all
insurance policies between insureds who reside in this state and
insurers.
  (2) Members of the State Insurance Arbitration Board:
  (a) Shall be chosen by the director based upon a contracting
process consistent with the Public Contracting Code;
  (b) Shall not be state employees;
  (c) Shall be residents of this state; and
  (d) Shall be compensated for their work from the Consumer and
Business Services Fund established in ORS 705.145.
  (3) The director shall adopt rules governing the actions and
procedures of the State Insurance Arbitration Board. + }
  SECTION 4.  { + Sections 2 and 3 of this 2011 Act apply to all
insurance policies entered into or renewed after the effective
date of this 2011 Act. + }
  SECTION 5.  { + (1) Any arbitration proceeding arising from a
denial of a claim under an insurance policy between an insured
residing in this state and an insurer filed after January 1,
2009, and before the effective date of this 2011 Act that has not
resulted in a decision on the claim may be terminated if the
insured, within 90 days after the effective date of this 2011
Act, files an appeal of the claim with the State Insurance
Arbitration Board in a manner consistent with rules adopted by
the Director of the Department of Consumer and Business Services
under section 3 of this 2011 Act.
  (2) If a decision has been made under an arbitration clause of
an insurance policy after January 1, 2009, that is inconsistent
with the provisions of section 3 of this 2011 Act, the insured
may take action to vacate the decision within 90 days after the
effective date of this 2011 Act by filing an appeal of the claim
with the State Insurance Arbitration Board in a manner consistent
with rules adopted by the Director of the Department of Consumer
and Business Services. + }
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