HB 3423
Directs an insurer to consider only specified information in determining rates for a motor vehicle liability insurance policy.
Jurisdiction
Oregon
Session
2025 Regular Session
Committee
Commerce and Consumer Protection
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Sign in to take actionPublic sentiment
Support
67%
Oppose
33%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill limits the information insurance companies in Oregon can use when determining rates for car insurance policies. It prohibits insurers from considering an applicant’s credit history, marital status, or sex. While insurers can still consider a limited abstract of an individual’s non-employment driving record, they are prohibited from using credit scores or history to set premiums. The bill also allows for a process where consumers can request a re-rating of their policy if they believe their credit history is unfairly impacting their rates.
Key provisions
- Insurers cannot consider an applicant’s credit history or insurance score.
- Insurers cannot consider an applicant’s sex or marital status.
- Insurers may consider a limited abstract of an individual’s non-employment driving record.
- Consumers can request a policy re-rating if they believe their credit history is unfairly impacting their rates.
- Insurers must provide a letter of experience to insureds upon request.
- The Director of the Department of Consumer and Business Services can adopt rules to implement the bill.
- ORS 746.661 and 746.662 are amended to reflect these changes.
Who is affected
- Motor vehicle insurance policyholders
- Insurance companies
- Consumers
- Oregon residents
Notable changes
- Prohibits the use of credit history and credit scores in determining insurance rates.
Sponsors
Official sponsors from legislative records.
Primary sponsors
Cosponsors
Hoa Nguyen
Arguments in favor
Reasons to support this legislation.
Supporters of the bill argue that it aims to make auto insurance more affordable and reduce unfair discrimination by prohibiting the use of credit history, sex, gender, and marital status in determining insurance rates. They contend that this practice disproportionately affects low-income communities, as it links credit scores to insurance rates, which is problematic. Advocates, including the Oregon Consumer League, cite studies showing that using non-driving information can harm financially vulnerable consumers. By basing insurance rates on driving behavior and risk rather than personal characteristics, proponents believe a fairer assessment of risk can be achieved, preventing discriminatory practices and promoting a more equitable insurance market.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Many HB 3423, citing concerns that it would disrupt the auto insurance market by limiting the data insurers may use to set premiums. They argue that this could lead to higher premiums and reduced consumer choice for policyholders. Additionally, some that eliminating critical risk-based factors in determining motor vehicle liability insurance rates would increase costs for many policyholders. Furthermore, they express concerns about the potential economic impact of HB 3423, including its effect on inflationary pressures and credit history calculations, which could have far-reaching consequences for individuals and businesses alike.