Excluding Drivers in Motor Vehicle Liability Insurance Policies
It has come to the attention of the Oregon Insurance Division that there may be some confusion about how to interpret the state laws and rules that permit drivers to be excluded from a motor vehicle liability insurance policy. (See Oregon Revised Statute (ORS) 742.450(7)(a) (b) and the implementing Oregon Administrative Rule (OAR) 836-058-0010.
The division recently clarified its position in response to a question and we want to share the information with property and casualty insurers and producers.
The statute allows a person other than the named insured to be excluded from coverage under a motor vehicle liability insurance policy based on (a) their driving record, and (b) the criteria outlined in the rule.
Insurers are not required to offer the option of driver exclusions. If the option is offered, the insurer is required to file with the Insurance Division the forms for approval and the related rates or rules for review.
Driver exclusions must comply with the requirements in ORS 742.450(6). The insurer must obtain a statement or endorsement signed by each of the named insureds, that the policy will not provide the Oregon Vehicle Code coverage required by ORS 806.070, ORS 806.080, which addresses required policy limits, or ORS 806.270, which addresses the certificate of insurance required for future responsibility filings (i.e., SR22).
If you have any questions about this clarification, you may contact Cece Newell, Property and
Casualty Technician, at (503) 947-7203 or email@example.com.
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