ORS 742.702
Grounds for cancellation; notice


Except as provided in ORS 742.710 (Exemptions from provisions of ORS 742.700 to 742.708), a contract of commercial liability insurance may not be canceled by an insurer before the expiration of the policy, except on one or more of the following grounds:


Nonpayment of premium.


Fraud or material misrepresentation made by or with the knowledge of the named insured in obtaining the policy, continuing the policy or in presenting a claim under the policy.


Substantial increase in the risk of loss after insurance coverage has been issued or renewed, including but not limited to an increase in exposure due to rules, legislation or court decision.


Failure to comply with reasonable loss control recommendations.


Substantial breach of contractual duties, conditions or warranties.


Determination by the Director of the Department of Consumer and Business Services that the continuation of a line of insurance or class of business to which the policy belongs will jeopardize a company’s solvency or will place the insurer in violation of the insurance laws of Oregon or any other state.


Loss or decrease in reinsurance covering the risk.


Any other reason approved by the director by rule.


Cancellation of a commercial liability policy shall not be effective until at least 10 working days after the insured receives a written notice of cancellation. The notice shall state the effective date of and the reason for cancellation and shall inform the insured of the hearing rights established by ORS 742.704 (Hearing).


This section does not apply to policies canceled because of action by an insurer under ORS 731.482 (Withdrawal from, failure to renew or cancellation of line by commercial liability insurer). [Formerly 743.942]

Last accessed
May. 15, 2020