The Oregon Legislature is currently considering House Bill 2190, the focus of which is to provide additional clarity, transparency, and structure to the motor vehicle total loss claims process in that state. Originally prefiled on behalf of the Department of Consumer and Business Services, the original introduced bill sought to address some key claims topics, one of which was the disclosure to claimants in a total loss situation. The originally drafted proposed disclosure would have required insurers:
- provide a written explanation to the insured or third-party owner of the vehicle concerning the method used by the insurer to determine the vehicle’s value in a form approved by the Department
HB 2190 moved to the Oregon Senate last week, after most recently undergoing an amendment process in the House Committee on Consumer Protection. This amended version supplements the original bill’s disclosure requirements by:
- including insurer requirements to provide the insured or third-party owner any valuation or appraisal reports relied upon the insurer to determine value;
- specifying written content on the disclosure form that includes information about the total loss, vehicle valuation, and the duties of the insurer;
- describing essentially how and when the insured may contact the Department; and
- requiring that the Department actually provide the disclosure form for use in this process.
While states generally account for communication to claimants in a total loss situation along the lines of providing documentation for any deviations, giving particulars of the motor vehicle’s condition, and specifying deductions, a specific form or format with all these consumer-focused disclosures traditionally is not required. Given that Oregon’s House passed the bill, albeit with revisions noted above, it will be interesting to see what the Senate may impart to its content and what the final resolution might be for this measure in the current legislative session.
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