Legislation That Holds Insurance Companies Accountable for Fraud Passes the House

HB 3160A removes insurance industry exemption from Oregon’s Unfair Trade Practices Act

 

April 2, 2013 – A bill that would protect Oregonians who are mistreated by insurance companies passed the Oregon House of Representatives today.
 
Under current law, consumers and small businesses are vulnerable to fraud because insurance companies are exempt from Oregon’s signature consumer protection statute – the Unfair Trade 
Practices Act. House Bill 3160A would remove that exemption and require insurance companies to meet the same standards as every other industry in Oregon.
 
“No company should be able to mistreat, mislead, or cheat Oregonians,” Rep. Paul Holvey (D –Eugene), chair of the Consumer Protection and Government Efficiency Committee said. “But I’ve heard from many small business owners and consumers who have been mistreated by insurance companies. This legislation will finally hold those companies accountable for their bad behavior and provide a pathway to remedies for consumers.”
House Bill 3160A will use existing legal standards in the Unfair Claim Settlement Practices Act to regulate insurers and ensure that they follow the same standards of conduct as everyone else 
doing business in Oregon.
 
“It’s time to end this special privilege granted to insurance companies,” Representative Chris Gorsek (D – Troutdale) said. “Right now, Oregonians don’t have adequate tools to hold them
accountable when they fail to pay claims, hide coverage, or make other unethical business decisions. The House stood up for Oregonians today by passing this bill.”
 
House Bill 3160A passed the House by a vote of 33-27 and now heads to the Senate.
News source: