Inland Marine Rate, Rule, Form Filing Requirements
Revised with reference to ORS 737.205 - 5/25/2010
The Oregon Insurance Division (OID) has had several questions lately concerning Inland Marine rate, rule, and form filing requirements.
While ORS 737.205 requires rates and rules for all property and casualty products including Inland Marine to be filed prior to use, specific exemptions to ORS 737.205 exist in statute. Some Inland Marine products can be exempt from the rate and rule filing requirements but only if they meet the statutory exemptions.
ORS 742.003 (1) (a) exempts unique policies that provide an individual policyholder with coverage for a particular risk from form filing requirements. If the policy meets the form filing exemption, then the policy rates usually are not based upon manual rates and may not need to be filed. This is not an exemption from compliance with the insurance statutes or rules. All rates and forms are required to comply with Oregon law and are subject to a market conduct examination or review upon request in accordance with ORS 737.235 and ORS 743.003 (4).
ORS 737.330 (2) exempts Inland Marine rate filings if form filings are not required by ORS 742.003 (1) (a). The exemption is for a particular risk or subject. This is further clarified by OAR 836-010-0011 (1) (b) that exempts rates for negotiated forms described in ORS 742.003.
If you are writing a unique inland marine policy for a single policyholder a rate filing may not be required. You should review the statutes and rule to determine if a rate filing exemption applies. Statutory and regulatory references are provided below.
ORS 737.205 Filing rates, plans with director; public inspection of filings; effect on workers' compensation filings. (1) Every insurer shall file with the Director of the Department of Consumer and Business Services copies of the rates, rating plans and rating systems used by it. Except as provided in ORS 737.207, 737.209 and 737.320 (2), each filing shall become effective immediately on the date specified therein but not earlier than the date such filing is received by the director. This subsection does not apply to inland marine risks which by general custom of the business are not written according to manual rates or rating plans.
ORS 737.330 Contracts to comply with effective filings; exception. (1) No insurer
shall make or issue a policy except in accordance with the filings which are in effect for the
insurer as provided in this chapter.
ORS 742.003 Filing and approval of policy forms; rules. (1) Except where otherwise
provided by law, no basic policy form, or application form where written application is required
and is to be made a part of the policy, or rider, indorsement or renewal certificate form shall
be delivered or issued for delivery in this state until the form has been filed with and approved
by the Director of the Department of Consumer and Business Services. This section does not apply
OAR 836-010-0011, Filing, Review of Rates and Forms