Applicability of Insurance Code
- statement of costs
(1)Intentionally left blank —Ed.
(a)A guaranteed asset protection waiver is not insurance and is not subject to the provisions of the Insurance Code. A person, other than an insurer, that sells a guaranteed asset protection waiver in compliance with ORS 646A.770 (Definitions) to 646A.787 (Fiduciary responsibilities) does not become subject to the Insurance Code by reason of the sale.
(b)Notwithstanding any other provision of law, any cost for a guaranteed asset protection waiver into which a borrower enters, whether in compliance with the Truth in Lending Act, 15 U.S.C. 1601 et seq., and regulations promulgated under the Truth in Lending Act, or not, must be stated separately in the finance agreement and is not a finance charge or interest.
(2)ORS 646A.770 (Definitions) to 646A.787 (Fiduciary responsibilities) do not apply to:
(a)An insurance policy that an insurer offers under the provisions of the Insurance Code;
(b)A debt cancellation contract or debt suspension agreement offered in compliance with 12 C.F.R. 37.2 or 12 C.F.R. part 721, both as in effect on January 1, 2016;
(c)A state bank, as defined in ORS 706.008 (Additional definitions for Bank Act), or a credit union, as defined in ORS 723.008 (“Credit union” defined for ORS 723.136 and 723.464 to 723.498); or
(d)Intentionally left blank —Ed.
(A)An addendum to a finance agreement that is sold or assigned to a licensee, as defined in ORS 725.010 (Definitions), and that is secured by a motor vehicle, under the terms of which a creditor agrees to waive the creditor’s right to collect all or part of an amount due from a borrower under the terms of the finance agreement or to release the borrower from an obligation to pay the creditor an amount due under the finance agreement if the motor vehicle:
(i)Suffers physical damage that is equivalent to a total loss; or
(ii)Is stolen and not recovered.
(B)The addendum to the finance agreement described in subparagraph (A) of this paragraph is not insurance and is not subject to the provisions of the Insurance Code. [2015 c.523 §2; 2017 c.451 §1; 2021 c.97 §71]
Section 646A.773 — Applicability of Insurance Code; statement of costs; exemptions,