Sen. Shields champions transparency for insurance marketplace

SALEM - The Oregon Senate voted today to increase transparency in the insurance industry by compelling release of records when insurance companies act unlawfully. Senate Bill 1591 passed by a 26-1 vote today on the Senate floor.
 
"Insurance is the only line of business exempt from Oregon's anti-fraud statute," Sen. Chip Shields (D-Portland), who carried the bill, said. "It became clear to me that Oregon is an outlier in the west in that it has virtually no mechanisms to incent good faith and fair dealing by insurance companies when it comes to their duty to defend the policyholder when the policyholder is being sued and timely investigation and payment of meritorious claims. This bill moves Oregon one step closer in holding these companies accountable by requiring the Department of Consumer and Business Services to release records when insurance companies commit an unlawful practice."
 
The public currently doesn't have access to information on insurance companies and there's no database that available that tells how many insurers breach their duty to defend their clients against lawsuits; how many insurers have complaints filed against them; or how many insurers are cited or fined by regulators. This bill improves transparency for consumers shopping for insurance plans.
 
"I asked a group of bipartisan senators to come together over the last year in a workgroup to see if we could find common ground on the most pressing insurance concerns," Shields said. "We heard testimony from insurers, policy holders and the agency regulating this industry. There are some people and groups who oppose this bill because it doesn't go far enough, and there are some people and groups who oppose this bill because it goes too far. That says to me that we struck a pretty good compromise."
 
SB 1591 now will go to the House of Representatives for consideration.