A handful of bills proposed in Oregon could hit consumers with nearly $200 million in cost increases and yield a rash of lawsuits, according to the Property Casualty Insurers Association of America, which is urging Oregon lawmakers to defeat several bad faith laws introduced in legislature this session.
Six bills that either establish private rights of action for first party/third party claims, or extend the state’s Unfair Trade Practices Act to insurers, are in under consideration by the state’s Legislators: House Bill 2525, House Bill 3160, Senate Bill 512, Senate Bill 513, Senate Bill 514 and Senate Bill 686.
Many of the bills are aimed at bringing insurance issues under the state’s Unfair Trade Practices Act or enable first party/third lawsuits against insurers, establishing a separate private right of action outside of Oregon’s insurance code.
Several of the bills are authored by Rep. Paul Holvey, chair of the Consumer Protection and Government Efficiency Committee, and Sen. Chip Shields, chair of the General Government, Consumer and Small Business Protection Committee.
A spokesperson for Holvey did not return a call seeking comment. Shields’ office agreed to get the lawmaker to comment, but he did not do so.
In introducing and supporting such legislation Shields in statements has argued that insurance is the only line of business exempt from Oregon’s UTPA, the state’s consumer and business protection statute prohibiting fraud in business transactions
“No company in the State of Oregon should be able to misled or mistreat you, no matter what industry they are in, ” Shields said in a statement.
HB 2525, for example, would direct the court to award attorney fees in certain circumstances, it allows class actions against persons that commit unlawful insurance practices, and permits the state’s attorney general to punish unlawful insurance practice as unlawful practice under unlawful trade practices law.
Other bills contain similar language, and wording such as
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