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The Oregon Administrative Rules contain OARs filed through August 15, 2014
 
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DEPARTMENT OF CONSUMER AND BUSINESS SERVICES,
INSURANCE DIVISION

 

DIVISION 62

VENDOR'S SINGLE INTEREST POLICIES AND
MOTOR VEHICLE PHYSICAL DAMAGE ONLY POLICIES

 

836-062-0001

Statutory Authority; Effective Date

(1) OAR 836-062-0001 to 836-062-0010 are adopted pursuant to the general rulemaking authority of the Director under ORS 731.244.

(2) Not later than December 15, 1989, each insurer shall file with the Director a listing of all policy forms that comply with OAR 836-062-0005 or 836-062-0010. Any form to which 836-062-0005 or 836-062-0100 applies but does not comply with either rule becomes disapproved for use in Oregon and may not be used after that date unless it has been resubmitted to and approved by the Director.

Stat. Auth.: ORS 731
Stats. Implemented: ORS 742.005(2), ORS 742.023(1)(f) & 746.240
Hist.: ID 9-1989, f. & cert. ef. 10-23-89

836-062-0005

Motor Vehicle Physical Damage Only Policies; Required Notice

(1) An insurer providing motor vehicle property damage only coverage on a domestic risk, upon issuance of coverage, shall give notice of the limited nature of the coverage as provided in this section to the purchaser of the motor vehicle to which the coverage applies. The insurer shall display the notice on the face page of the policy, the group or master contract or any other document issued by the insurer to the purchaser as evidence of insurance coverage. Except as provided in section (2) of this rule, the notice shall be in bold face type of not less than 12-point with a lower case unspaced alphabet length of not less than 120-point, or of not less than 10-point if the notice is in a contrasting color, and shall state:

"WARNING: THIS COVERAGE DOES NOT PROVIDE BODILY INJURY AND PROPERTY DAMAGE LIABILITY INSURANCE AND DOES NOT COMPLY WITH ANY FINANCIAL RESPONSIBILITY LAW OR ANY OTHER LAW MANDATING MOTOR VEHICLE INSURANCE COVERAGE."

(2) An insurer may satisfy the notice requirement under section (1) of this rule by use of a notice provision that substantially complies with the notice provision set forth in section (1) of this rule, if the alternative notice provision is approved by the Director prior to use.

(3) For purposes of this rule, a policy is a motor vehicle physical damage only policy if it insures solely against the loss of or damage to any motor vehicle designed primarily for use upon a highway.

(4) The notice requirement under this rule may be met by the attachment of a sticker or by a stamp that contains the required warning. Other devices that contain the required warning may be used if approved by the Director prior to use.

(5) The insurance producer selling the coverage to which this rule applies shall require the purchaser of the coverage to sign a receipt acknowledging that the purchaser has read and understands the warning required under section (1) of this rule. The receipt shall be retained by the insurance producer or insurer until the end of the sixth month after the termination date of the coverage to which the receipt applies.

(6) This rule applies to motor vehicle physical damage only policies on individually owned private passenger vehicles including pickup and panel trucks and station wagons that are not used as a public or livery conveyance for passengers or rented to others, and does not apply to motor vehicle physical damage only policies on commercial fleets.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 742.005, 742.023 & 746.240
Hist.: ID 9-1989, f. & cert. ef. 10-23-89; ID 15-1996, f. & cert. ef. 11-12-96; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-062-0010

Vendor Single Interest Policies; Required Notice

(1) An insurer providing vendor's single interest coverage shall cause notice of the limited nature of the coverage to be given as provided in this rule to the borrower to whom the policy, certificate or other document giving evidence or notice of insurance coverage is issued. The notice shall be displayed on the face page of the policy, certificate or other document, or enclosed therewith. Except as provided in section (2) of this rule, the notice of the limited nature of the coverage shall be in bold face type of not less than 12-point with a lower case unspaced alphabet length of not less than 120-point or of not less than 10-point if the notice is in a contrasting color, and shall state:

"WARNING: THIS IS A LIMITED POLICY THAT PROTECTS ONLY THE LENDER'S INTEREST IN THE INSURED PROPERTY. THE POLICY DOES NOT PROVIDE BODILY INJURY AND PROPERTY DAMAGE LIABILITY INSURANCE AND DOES NOT COMPLY WITH ANY FINANCIAL RESPONSIBILITY LAW OR ANY OTHER LAW MANDATING MOTOR VEHICLE INSURANCE COVERAGE."

(2) An insurer may satisfy the notice requirement under section (1) of this rule by use of a notice provision that substantially complies with the notice provision set forth in section (1) of this rule, if the alternative notice provision is approved by the Director prior to use.

(3) This rule applies to all policies of personal property insurance placed on personal property that protect only the single interest of the vendor or lender. A policy protects only the single interest of the vendor or lender if it protects against loss or damage to personal property of a debtor for the following purposes:

(a) To secure repayment of the amount borrowed from the vendor or lender;

(b) To protect the vendor's or lender's interest in the property; and

(c) To protect the interest in the amount of the actual cash value of the collateral, the cost of repair or the loan balance, whichever is less.

(4) The notice requirement under this rule may be met by the attachment of a sticker or separate piece of paper or by a stamp that contains the required warning. Other devices that contain the required warning may be used if approved by the Director.

Stat. Auth.: ORS 731
Stats. Implemented: ORS 742.005(2), ORS 742.023(1)(f) & ORS 746.240
Hist.: ID 9-1989, f. & cert. ef. 10-23-89

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