Bulletin 2024-7: Requirement of insurers to file underwriting guidelines

350 Winter St. NE, Rm 410, PO Box 14480, Salem, OR 97309 503-947-7694 dfr.oregon.gov 1 Level 3 - Restricted Oregon Department of Consumer and Business Services Division of Financial Regulation, Bulletin No. DFR 2024-7 To: All property and casualty insurers Date: May 10, 2024 RE: Requirement of insurers to file underwriting guidelines
I. Purpose
The purpose of this bulletin is to remind insurers of their legal obligation to file underwriting guidelines with the division.
II. Authority

• ORS 737.025
• ORS 737.205 (1)
• ORS 746.015
• OAR 836-010-0011 (2)
• OAR 836-010-0021
  III. Director’s Guidance
  The Oregon Insurance Code, and ORS 737.205 (1) specifically, requires every insurer to file with the division copies of rates, rating plans, and rating systems. Other documents required to be filed with regard to personal lines filings include a tier rating system summary, if tiers are part of the rating system; a histogram; and a full copy of the underwriting guidelines, as those are part of rating systems under ORS 737.205. The only exceptions to this filing requirement are outlined in ORS 737.035.1 Copies of rates, rating plans, and rating systems must also be included if an insurer is filing to indicate revisions or changes. Additionally, following the passage of SB 82 (2023), effective January 1, 2024, insurers must reflect in their homeowners insurance underwriting guidelines and rating plans how they address or consider wildfire risk mitigation actions including defensible space, home hardening, certification as a wildfire prepared home by the Insurance Institute for Business and Home Safety, and community mitigation efforts such as Firewise USA site 1 Statutory exceptions include reinsurance, other than joint reinsurance to the extent stated in ORS 737.390; insurance against loss of, or damage to, aircraft, including accessories and equipment, or against liability arising out of ownership, maintenance, or use of aircraft; wet marine and transportation insurance; life insurance; health insurance; or surplus lines insurance.

2
Level 3 - Restricted
05/10/2024 designation or a similar program established by the Oregon State Fire Marshal. See ORS
737.310 (17).
Property and casualty insurers have an ongoing obligation to file changes or revisions to required documents with the division prior to implementation. ______________________________________ _________________________ Andrew R. Stolfi Date Insurance Commissioner and Director Department of Consumer and Business Services