Application of House Bill 2190 Regarding Total Loss Settlements

The Oregon Department of Consumer and Business Services (DCBS) Insurance Division has been asked whether House Bill 2190 (enacted in the 2009 Legislative Session) related to motor vehicle total loss settlements applies to all instances where an insurer declares a motor vehicle a total loss.

The intent of the bill, which was introduced by DCBS, is to provide additional consumer protections when an insurer declares a consumer's motor vehicle a total loss. Although not part of the law, the relating clause of House Bill 2190 indicates our intention that the bill apply to "motor vehicle liability insurance." The bill also amends Oregon Revised Statute (ORS) 742.466 which discusses the appraisal provisions for disputes over physical damage coverage under a "motor vehicle liability policy" issued or renewed on or after January 1, 2010.

The Insurance Division interprets "motor vehicle liability insurance" to include all lines of insurance filed as motor vehicle liability. That would include personal automobile, motorcycle, recreational vehicles, and commercial auto contracts of insurance.

Insurance products that cover credit types of coverage would not be considered motor vehicle liability insurance. Total loss settlement requirements enacted in House Bill 2190 would not apply to credit types of insurance coverage, such as collateral protection, residual value, and guaranteed auto protection (GAP) insurance.

More information

You can find additional information about the rules adopted by the Insurance Division to implement House Bill 2190 on our Web site at: http://www.cbs.state.or.us/ins/rules/recent_admin_rules.html. You can then scroll down to "Amending Oregon administrative Rules Relating to Requirements for Total Loss Settlements in Automobile Insurance."

If you have additional questions, you may contact Cece Newell, property & casualty technician, at (503) 947-7203 or cece.newell@state.or.us.