Regulatory Alerts2013-01-01 | Bulletin 2013-4Bulletin 2013-4: Permissible Use of Lapse in Insurance Coverage as a Rating Factor
The Oregon Insurance Division clarifies that auto insurers and producers are prohibited from assigning higher risk categories or charging higher premiums based solely on a lapse in coverage. A lapse may only be considered as a rating factor when combined with other criteria, provided the insurer allows the client to attest they did not drive uninsured during the gap. Insurers may require documentation of prior coverage and a statement regarding the reason for the lapse, but they bear the responsibility for investigating compliance with driving laws rather than requiring the client to prove they were not driving uninsured.
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