OAR 836-060-0055
Prohibited Transactions

The following insurer practices in connection with the sale or placement of credit insurance, or as an inducement thereto, constitute unfair methods of competition under ORS 746.160 (Practices injurious to free competition) or unfair or deceptive practices injurious to the insurance-buying public under 746.240 (Undefined trade practices injurious to public prohibited):

(1)

Practices in connection with the creditor:

(a)

The offer or grant by an insurer to a creditor of any special advantage or any service not set out in either the group insurance contract or in the agency contract.

(b)

Agreement by an insurer to deposit with a bank or other financial institution money or securities of the insurer, with the design or intent that this deposit shall affect or take the place of a deposit of money or securities which otherwise would be required of the creditor by the bank or the other financial institution as a compensating balance or offsetting deposit for a loan or other advancement.

(c)

Deposit by an insurer of money or securities with a creditor, bank or other financial institution without interest or at lesser rate of interest than is currently being paid to other depositors of like amounts. This subsection shall not be construed to prohibit the maintenance by an insurer of those demand deposits or premium deposit accounts as are reasonably necessary for use in the ordinary course of the insurer’s business.

(2)

Placement of insurance on an account by automatic deduction of premium payments without a signed consent by the insured authorizing such deduction for payments.

Source: Rule 836-060-0055 — Prohibited Transactions, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=836-060-0055.

Last Updated

Jun. 8, 2021

Rule 836-060-0055’s source at or​.us