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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Enrolled
House Bill 2563
Introduced and printed pursuant to House Rule 12.00. Presession filed (at the request of Governor
Tina Kotek for Department of Consumer and Business Services)
CHAPTER .................................................
AN ACT
Relating to explanations required in connection with premium increases upon renewals of certain
insurance policies; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 2 of this 2025 Act is added to and made a part of ORS chapter 742.
SECTION 2. (1) As used in this section, “qualified policy” means an insurance policy that
is:
(a) Homeowner insurance, as defined in ORS 746.600; or
(b) Personal insurance, as defined in ORS 746.600 (33)(a) and (c).
(2) An insurer that renews an existing qualified policy with an insured shall, at the
insured’s written request, give a clear and reasonable written explanation for any increase
in the amount of the premium the insured must pay upon renewing the qualified policy. A
clear and reasonable written explanation is an explanation that provides to the insured, in
language that is not technical and is understandable to an average policyholder, information
that enables the insured to understand the insurer’s reasons for the increase.
(3) A clear and reasonable written explanation of a premium increase from an insurer
under subsection (2) of this section must include all, but not more than four, of the factors
that most significantly contributed to the premium increase. The Department of Consumer
and Business Services by rule shall define when a factor significantly contributes to a pre-
mium increase. The factors that an insurer must consider for inclusion in the written ex-
planation described in subsection (2) of this section are:
(a) The specific rating variables that contributed to an increase in the premium amount,
including but not limited to:
(A) The location in which a motor vehicle is stored when not in use, the insured’s driving
record, the number of miles the vehicle is driven in a specified period, the insured’s claims
history and any fees, surcharges or discounts that apply to the premium amount;
(B) The insured’s age, education, gender, marital status and occupation, to the extent
that the insurer may lawfully consider such items;
(C) Changes to a rate relativity or to a base rate, including but not limited to the use
of credit history and a credit-based insurance score;
(D) The age, location and value of insured property; and
(E) Any rate caps or rate changes that apply to the premium rate, including rate caps
or rate changes that apply under rate stability rules, transition rules or other premium
capping rules; and
Enrolled House Bill 2563 (HB 2563-A) Page 1
(b) Any other information the insurer wishes to disclose concerning the insurer’s deter-
mination of the increase in the premium amount.
(4) In a printed or electronic offer to renew a qualified policy or notice of an automatic
renewal of a qualified policy, an insurer shall include a prominent and conspicuous statement
that tells the insured that the insured may ask the insurer or the insurer’s agent in writing
for an explanation of any premium increase. The insurer shall display the same statement
on the first printed or electronic premium invoice the insurer sends after renewing a quali-
fied policy.
(5) An insurer shall respond to an insured’s written request under subsection (2) of this
section not later than 20 days after receiving the request.
(6) The Director of the Department of Consumer and Business Services may prescribe
by rule the form, format and contents of the written explanation and statement described
in subsection (3) of this section and any required elements of an insurer’s offer to renew a
qualified policy or notification of an automatic renewal of a qualified policy.
(7)(a) This section does not apply to:
(A) Applications for or purchases of new insurance policies;
(B) A personal insurance policy that provides coverage for a boat, motorcycle, off-road
vehicle, recreational vehicle, antique vehicle maintained as a collector’s item or a vehicle
maintained only for a specialty use that does not involve passenger transportation on the
surface roads or highways of this state;
(C) A policy of insurance that covers health, disability, life, long-term care or to an
insurer in renewing such a policy;
(D) Changes that an insured initiates with respect to an insurance policy’s coverage or
premium amount; or
(E) Personal umbrella insurance policies.
(b) This section does not require an insurer to disclose the contents of:
(A) A credit-based insurance scoring model;
(B) Criteria for placement of insurance;
(C) Eligibility rules;
(D) Confidential trade secrets; or
(E) Filings with the Department of Consumer and Business Services related to usage-
based insurance or the usage-based component of a rate.
(8) The department shall adopt rules to implement the requirements of this section, in-
cluding but not limited to rules requiring periodic data reporting from insurers that issue
qualified policies to evaluate the impact of the required notices and rules that clarify the
form and manner of the written request that an insurer must respond to under subsection
(2) of this section.
SECTION 3.
Section 2 of this 2025 Act applies to qualified policies that an insurer renews
on or after the operative date specified in section 4 of this 2025 Act.
SECTION 4. Section 2 of this 2025 Act becomes operative on September 1, 2026.
SECTION 5. This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
Enrolled House Bill 2563 (HB 2563-A) Page 2
Passed by House April 8, 2025
..................................................................................
Timothy G. Sekerak, Chief Clerk of House
..................................................................................
Julie Fahey, Speaker of House
Passed by Senate June 10, 2025
..................................................................................
Rob Wagner, President of Senate
Received by Governor:
........................M.,........................................................., 2025
Approved:
........................M.,........................................................., 2025
..................................................................................
Tina Kotek, Governor
Filed in Office of Secretary of State:
........................M.,........................................................., 2025
..................................................................................
Tobias Read, Secretary of State
Enrolled House Bill 2563 (HB 2563-A) Page 3