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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 3423
Sponsored by Representative HUDSON, Senator GELSER BLOUIN
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: Says than an insurer may not look at some information about a person to set a rate for
car insurance for that person.(Flesch Readability Score: 62.1).
Directs an insurer to consider only specified information in determining rates for a motor vehi-
cle liability insurance policy.Prohibits an insurer from considering other specified information in
determining eligibility, rates or premiums for a motor vehicle liability insurance policy.
Permits an insurer, under specified circumstances, to consider an abstract of an individual’s
nonemployment driving record when evaluating the individual’s application to obtain or renew motor
vehicle liability insurance.
Prohibits an insurer from using credit history to determine eligibility, rates or premiums for
motor vehicle liability insurance.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to information permitted for insurer’s decisions concerning motor vehicle liability insur-
ance; creating new provisions; amending ORS 746.661 and 746.662; and prescribing an effective
date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 2 of this 2025 Act is added to and made a part of ORS 746.005 to
746.045.
SECTION 2.(1) As used in this section:
(a) “Applicant” means an individual who applies for coverage under a motor vehicle li-
ability insurance policy.
(b)(A) “Motor vehicle liability insurance policy” means an insurance policy that an
insurer issues to a named insured who is an individual resident of this state and that pro-
vides automobile liability coverage, uninsured motorist coverage, automobile medical pay-
ments coverage or automobile physical damage coverage on motor vehicles.
(B) “Motor vehicle liability insurance policy” does not include an insurance policy that:
(i) Covers garage, automobile sales agency, repair shop, service station or public parking
place operation hazards; or
(ii) Covers primarily an insured’s personal or premises liability, except that the insurance
policy may also provide some incidental coverage for liability that arises out of the owner-
ship, maintenance or use of a motor vehicle on the insured’s premises or on the ways im-
mediately adjoining the premises.
(2) An insurer may not consider any of the following information in determining eligibil-
ity, premiums or rates for a motor vehicle liability insurance policy:
(a) An applicant’s or insured’s credit history, including an insurance score based on the
applicant’s or insured’s credit history;
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 3968 HB3423
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(b) An applicant’s or insured’s sex or gender; or
(c) An applicant’s or insured’s marital status.
(3) An insurer shall timely provide a letter of experience in response to an insured’s re-
quest.
(4) The director may adopt rules for the purpose of implementing the provisions of this
section.
SECTION 3. ORS 746.661 is amended to read:
746.661. (1) An insurer that issues personal insurance policies in this state:
(a) May not cancel or nonrenew personal insurance that has been in effect for more than 60
days based in whole or in part on a consumer’s credit history or insurance score.
(b) May use a consumer’s credit history to decline coverage of personal insurance, other than
a motor vehicle liability insurance policy as defined in section 2 of this 2025 Act, in the initial
underwriting decision only in combination with other substantive underwriting factors. An offer of
placement with an affiliate insurer does not constitute a declination of insurance coverage.
(c) May not use the following types of credit history to decline coverage of personal insurance,
calculate an insurance score or determine personal insurance premiums or rates:
(A) The absence of credit history or the inability to determine the consumer’s credit history, if
the insurer has received accurate and complete information from the consumer, unless the insurer
does one of the following:
(i) If the insurer presents information that the absence of credit history or the inability to de-
termine the consumer’s credit history relates to the risk for the insurer, uses the absence of a credit
history or inability to determine a consumer’s credit history as allowed by rules adopted by the
Director of the Department of Consumer and Business Services;
(ii) Treats the consumer as if the applicant or insured has neutral credit history, as defined by
the insurer; or
(iii) Excludes the use of credit information as a factor and uses only other underwriting criteria.
(B) Credit inquiries not initiated by the consumer or inquiries requested by the consumer for the
consumer’s own credit information.
(C) Inquiries identified on a consumer’s credit report relating to insurance coverage.
(D) Multiple lender inquiries identified as being from the home mortgage industry and made
within 30 days of one another, unless only one inquiry is considered.
(E) Multiple lender inquiries identified as being from the automobile lending industry and made
within 30 days of one another, unless only one inquiry is considered.
(F) The consumer’s total available line of credit[. However], except that an insurer may consider
the total amount of outstanding debt in relation to the total available line of credit.
(d) May not rerate an existing policy or rerate a customer based on a customer’s credit history
or the credit history component of a customer’s insurance score when the marital status of the
customer changes due to death or divorce.
(2)(a) If an insurer uses the consumer’s credit history or insurance score at any time in the
rating of a personal insurance policy, the consumer may request, no more than once per insurer per
policy line annually, that the insurer rerate the consumer according to the standards that the
insurer would apply if the consumer were initially applying for the same insurance policy.
(b) The insurer shall rerate the consumer within 30 days after receiving a request from the
consumer. After rerating the consumer based upon the request, the insurer may not use credit in-
formation from rerating to increase the premium on any personal insurance policy the consumer
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holds. If the consumer qualifies for a more favorable rating category, the insurer shall reduce the
premiums on all the personal insurance policies the consumer holds in the related policy line for
which the consumer’s credit history and insurance score would entitle the consumer to lower pre-
miums if the consumer were applying for a new policy. The effective date of any rate change is the
date of the consumer’s request.
(c) If a request to rerate a policy is received within 60 days prior to a renewal date, or if the
difference between the current rate and the improved rate is less than $10, the insurer may provide
the consumer with the difference between the current rate and the improved rate over the remain-
der of the current period as a credit upon renewal. If the policy is canceled or not renewed, the
insurer shall refund the unearned premium. Any existing claim-related discounts or surcharges shall
carry forward for each rerated policy.
(3) If an insurer uses disputed credit history to determine eligibility for coverage of personal
insurance and places a consumer with an affiliate that charges higher premiums or offers less fa-
vorable policy terms:
(a) The insurer shall rerate the policy retroactive to the effective date of the current policy
term;and
(b) The policy, as reissued or rerated, shall provide the premiums and policy terms for which the
consumer would have been eligible if accurate credit history had been used to determine eligibility.
(4) If an insurer charges higher premiums due to disputed credit history, the insurer shall rerate
the policy retroactive to the effective date of the current policy term. As rerated, the insurer shall
charge the consumer the same premiums the consumer would have been charged if accurate credit
history had been used to calculate an insurance score.
(5) Subsections (3) and (4) of this section apply only if the consumer resolves the credit dispute
under the process set forth in the federal Fair Credit Reporting Act (15 U.S.C. 1681) and notifies the
insurer in writing that the dispute has been resolved.
(6) Except as provided in subsections (2), (3) and (4) of this section, an insurer may only use
rating factors other than credit history or insurance score to rerate the policy at renewal.
SECTION 4. ORS 746.662 is amended to read:
746.662. (1) An insurer may not use credit history to determine eligibility, premiums or
rates for coverage for a motor vehicle liability insurance policy as defined in section 2 of this
2025Act.
[(1)] (2) An insurer may not use credit history to determine personal insurance eligibility, pre-
miums or rates for coverage for insurance other than a motor vehicle liability insurance policy,
as defined in section 2 of this 2025 Act, unless the insurer has filed the insurance scoring models
used by the insurer with the Director of the Department of Consumer and Business Services. An
insurance scoring model includes all attributes and factors used in the calculation of an insurance
score.
[(2)] (3) Insurance scoring models filed with the director under subsection [(1)] (2) of this section
are confidential and not subject to disclosure under ORS 192.311 to 192.478.
SECTION 5.Section 2 of this 2025 Act and the amendments to ORS 746.661 and 746.662
by sections 3 and 4 of this 2025 Act apply to contracts of insurance that an insurer issues
or renews on and after the operative date specified in section 6 of this 2025 Act.
SECTION 6.(1) Section 2 of this 2025 Act and the amendments to ORS 746.661 and 746.662
by sections 3 and 4 of this 2025 Act become operative on January 1, 2026.
(2) The Director of the Department of Consumer and Business Services may adopt rules
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and take any other action before the operative date specified in subsection (1) of this section
that is necessary to enable the director, on and after the operative date specified in sub-
section (1) of this section, to undertake and exercise all of the duties, functions and powers
conferred on the director by section 2 of this 2025 Act and the amendments to ORS 746.661
and 746.662 by sections 3 and 4 of this 2025 Act.
SECTION 7. This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
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