TO: All Insurers writing Motor Vehicle Insurance
FROM: The Oregon Department of Consumer & Business Services Division of Financial Regulation
SUBJECT: Motor Vehicle (Automobile) Insurance Exclusions
The Division of Financial Regulation Product Regulation unit wants to remind insurers writing personal and commercial motor vehicle insurance that Oregon laws do not allow exclusions for criminal or illegal acts in a motor vehicle policy used to meet the financial responsibility requirements for Bodily Injury Liability (BI), Property Damage Liability (PD), Automobile Personal Injury Protection (APIP), or Uninsured Motorists/Underinsured Motorists coverage (UM/UIM).
Oregon Revised Statute (ORS) 742.450 and ORS 742.454 outline the required contents and list the allowable exclusions for any automobile policy being used to provide mandatory coverage for BI and PD Liability. ORS 742.530 lists allowable exclusions for APIP. There are no allowable exclusions in the UM/UIM sections of the Oregon Insurance Code.
This notice was sent with the intent to reinforce the “recent” bulletin on cannabis in insurance policies that DFR issued in June of 2017 This bulletin also includes a 12 month phase in process for compliance, which is approaching relatively soon.