Relating to information permitted for insurer's decisions concerning motor vehicle liability insurance; prescribing an effective date.
HB 3423 changes Oregon insurance law to restrict what information insurers may use when setting eligibility, premiums, or rates for motor vehicle liability insurance policies. The bill prohibits insurers from considering an applicant’s or insured’s credit history, sex or gender, or marital status when pricing or underwriting auto liability coverage. It also requires insurers to provide a letter of experience upon request and authorizes the Department of Consumer and Business Services director to adopt implementing rules.
The bill also makes related changes to Oregon’s broader personal insurance credit-history rules. It clarifies and strengthens limits on the use of credit information, including restrictions on cancellation, nonrenewal, rerating, and the use of certain credit inquiries and credit-history components. It preserves some limited uses of credit history for other personal insurance lines, but not for motor vehicle liability insurance, and it requires insurers to rerate policies in certain circumstances when consumers request it or when disputed credit information is resolved.
HB 3423 would amend ORS 746.661 and 746.662 and add new provisions to Oregon insurance law. Its practical effect is to reduce the role of credit-based and demographic factors in auto insurance pricing, while giving consumers more protection against adverse rating based on disputed or nontraditional credit information. The bill applies to policies issued or renewed on or after January 1, 2026, and the director may adopt rules before that date to implement the changes.
Because no committee transcript or vote record is provided, there is no documented debate or recorded floor sentiment in the materials supplied. Based on the bill text alone, the measure appears consumer-protective and aimed at limiting underwriting practices viewed as unfair or discriminatory, especially in auto insurance. The main likely point of contention is whether restricting credit history and demographic factors could reduce insurers’ ability to assess risk and set rates accurately, versus the consumer fairness benefits of removing those factors from pricing decisions.
HB 3423 would directly amend Oregon’s insurance statutes, especially ORS 746.661 and 746.662, and add a new section governing motor vehicle liability insurance underwriting. It would prohibit insurers from using credit history, sex or gender, or marital status to determine eligibility, premiums, or rates for auto liability policies, while also imposing related rerating and disclosure obligations. The bill would take effect for policies issued or renewed on or after January 1, 2026, with rulemaking authority granted to the Department of Consumer and Business Services.
No committee discussion or vote history is included, so there is no recorded legislative sentiment to summarize from the provided materials. The bill’s text suggests a consumer-protection orientation, with an emphasis on limiting the use of credit and demographic factors in insurance pricing. The likely overall posture is supportive of fairness and transparency for consumers, though insurers may view the restrictions as limiting underwriting flexibility.
The main policy tension in HB 3423 is between consumer fairness and insurer risk-based pricing. Supporters would likely favor the bill’s prohibition on using credit history, sex or gender, and marital status in auto insurance decisions, as well as its rerating and dispute-resolution protections. Opponents or critics would likely argue that credit-based underwriting helps insurers predict losses and price policies accurately, and that removing those factors could affect premiums or market behavior. No specific stakeholder testimony is provided, so these are the apparent substantive points of contention based on the bill text.