Rates and Rating Organizations

ORS 737.600
Fictitious grouping for rate purposes prohibited

  • rules
  • exceptions


As used in this section, “fictitious grouping” means a grouping by way of membership, license, franchise, contract, agreement or any method other than common ownership, or use and control.


An insurer may not:


Make available, through any rating plan or form, property, inland marine, casualty or surety insurance, or any combination thereof, at a preferred rate or premium to any person based upon a fictitious grouping of that person.


Write or deliver a form, plan or policy of insurance covering a grouping or combination of persons or risks, any of which are within this state, at a preferred rate or form other than that offered to the public generally and persons not in the group, unless the form, plan or policy and the rates or premiums to be charged therefor have been approved by the Director of the Department of Consumer and Business Services. The director shall not approve any form, plan or policy, or the rates therefor, that would constitute a violation of paragraph (a) of this subsection.


This section does not apply to:


Policies of life or health insurance;


Insurance for public bodies as defined in ORS 30.260 (Definitions for ORS 30.260 to 30.300);


Insurance for employers subject to ORS chapter 656 who are primarily engaged in farming. Any contract negotiated by an exempt farming group, including the rate, shall be restricted to members of the group;


Property and casualty insurance policies for personal, family or household purposes, and not for commercial or business purposes, under the following conditions:


If the policies are offered to members of an association, including a labor union, which has had an active existence for at least one year, has a constitution and bylaws and is maintained in good faith for purposes other than that of obtaining insurance;


If the policies are based on premiums that are adequate to support coverage of the group without subsidy by other rate payers; and


If the insurer does not unfairly discriminate against holders of other insurance policies;


Liability and property insurance required under ORS 825.160 (Liability insurance of carriers) for persons who apply for or who have received authority issued by the Department of Transportation under ORS chapter 825 to transport logs, poles, pilings, peeler cores, lumber, shingles, veneer, plywood, particle board, wallboard, siding, cordwood in long or short lengths, sawdust, hog fuel, wood chips, wood pellets, bark dust or cut trees that are or will be sold for use as Christmas trees;


Liability or casualty insurance issued in this state on commercial risks, if:


The policy requires active participation in a plan of risk management which has established measures and procedures to minimize both the frequency and severity of losses;


The policy passes on the benefits of reduced losses to plan participants; and


Rates are actuarially measurable and credible and sufficiently related to actual and expected loss and expense experience of the group so as to assure that nonmembers of the group are not unfairly discriminated against;


Insurance for child care facilities that are certified in accordance with ORS chapter 329A; or


Liability insurance for contractors licensed under ORS chapter 701.


Under ORS 731.244 (Rules), the director shall make rules necessary for implementation of this section. [Formerly 737.346; 2007 c.210 §1]


Last accessed
Jun. 26, 2021