ORS 731.988
Civil penalties
(1)
A person that violates any provision of the Insurance Code, any lawful rule or final order of the Director of the Department of Consumer and Business Services or any judgment that a court makes in response to the director’s application, shall forfeit and pay to the General Fund of the State Treasury a civil penalty in an amount determined by the director that does not exceed $10,000 for each offense. The civil penalty for individual insurance producers, adjusters or insurance consultants may not exceed $1,000 for each offense. Each violation is a separate offense.(2)
In addition to the civil penalty specified in subsection (1) of this section, a person that violates any provision of the Insurance Code, any lawful rule or final order of the director or any judgment that a court makes in response to the director’s application, may be required to forfeit and pay to the General Fund of the State Treasury a civil penalty in an amount determined by the director that does not exceed the amount by which the person profited in any transaction that violates the provision, rule, order or judgment.(3)
In addition to the civil penalties specified in subsections (1) and (2) of this section, an insurer that must submit a report under ORS 742.400 (Duty to report claim of professional negligence to licensing board) and that fails to do so within the specified time may be required to pay to the General Fund of the State Treasury a civil penalty in an amount determined by the director that does not exceed $10,000.(4)
In addition to the penalties specified in subsection (1), (2), (5) and (6) of this section, a director or officer of an insurance holding company system who engages in a transaction or makes an investment that has not been properly reported under, or does not otherwise comply with, ORS 732.517 (Purpose of ORS 732.517 to 732.546) to 732.596 (Request by insurance holding company system for determination or acknowledgement of group-wide supervisor), who knowingly participates in or assents to the transaction or investment, or who permits another officer or an agent of the insurance holding company system to engage in the transaction or make the investment, shall pay, in the director or officer’s individual capacity, a civil penalty in an amount determined by the director that does not exceed $10,000.(5)
In addition to the penalties specified in subsections (1), (2), (4) and (6) of this section, an insurer or other person that fails to make a required filing or demonstrate a good faith effort to comply with a filing requirement under ORS 732.527 (Approval of acquisition by chief insurance regulatory officials of two or more jurisdictions), 732.537 (Application of ORS 732.527, 732.539, 732.542 and 732.544 to change of control of insurer), 732.539 (Notification of acquisition), 732.542 (Monopoly or substantial diminishment of competition) or 732.544 (Director’s order) shall pay a civil penalty in an amount determined by the director that does not exceed $50,000.(6)
In addition to the penalties specified in subsections (1), (2), (4) and (5) of this section, an insurer or other person that violates a cease and desist order the director has issued under ORS 731.252 (Cease and desist orders) in connection with a violation of a provision of ORS 732.517 (Purpose of ORS 732.517 to 732.546) to 732.596 (Request by insurance holding company system for determination or acknowledgement of group-wide supervisor) may be subject to a civil penalty in an amount determined by the director that does not exceed $10,000 for each day of the violation.(7)
A civil penalty imposed under this section may be recovered either as provided in subsection (8) of this section or in an action brought in the name of the State of Oregon in any court of appropriate jurisdiction.(8)
Civil penalties under this section must be imposed and enforced in accordance with ORS 183.745 (Civil penalty procedures).(9)
The provisions of this section are in addition to and not in lieu of any other enforcement provisions specified in the Insurance Code. [1967 c.359 §144; 1971 c.231 §16; 1987 c.774 §65; 1989 c.701 §70; 1991 c.401 §2; 1991 c.734 §120; 1993 c.265 §6; 1997 c.131 §5; 2003 c.364 §81; 2003 c.576 §220; 2013 c.370 §15]
Source:
Section 731.988 — Civil penalties, https://www.oregonlegislature.gov/bills_laws/ors/ors731.html.
Notes of Decisions
Where insurer made bad faith denial of liability coverage, insureds were not entitled to punitive damages because legislative intent is to provide exclusive civil penalties under this section for such conduct by insurance company. Farris v. U.S. Fid. and Guar. Co., 284 Or 453, 587 P2d 1015 (1978)
Where action was brought in tort for outrageous conduct, this section did not prohibit award of punitive damages. Green v. State Farm Fire and Cas. Co., 667 F2d 22 (1982)
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