Measure 42

Explanatory Statement

Ballot Measure 42 prohibits insurance companies selling or marketing medical, health, accident, automobile, fire, or liability insurance, or any combination of policies providing such coverage, from calculating insurance rates or premiums based on the credit history of an insured person or someone applying for insurance.

Current law prohibits insurance companies from canceling, re-rating or failing to renew presently issued insurance policies based on credit history or credit-based insurance scores. When a consumer seeks new personal insurance coverage, insurance companies may only use a consumer's credit history to decline that coverage when it is considered in combination with other substantive underwriting factors. An insurance company accepting a consumer's application for new insurance may offer higher rates or premiums because of an underwriting decision based on the consumer's less favorable credit history. An insurance company is required to notify the consumer in writing of the specific reasons for this decision. Insurance companies must also explain the consumer's right to request annually that the insurance company re-rate the consumer and explain any potential negative consequences of re-rating. Additionally, insurance companies may use credit-based scoring in setting rates and premiums only if the companies have filed their credit-based scoring models with the Oregon Insurance Commissioner.

Ballot Measure 42 repeals restrictions in current law on the use of credit information in setting insurance rates and premiums, and bans the use of credit information on establishing insurance rates or premiums.

The ballot measure does not affect insurance policies in force at the time it is enacted, but affects policies that are commenced, changed, amended or renewed after the measure takes effect.

Committee Members: / Appointed by:
Bill Sizemore / Chief Petitioners
Tim Trickey / Chief Petitioners
Paul Cosgrove / Secretary of State
Shawn Miller / Secretary of State
Sid Brockley / Members of the Committee

(This committee was appointed to provide an impartial explanation of the ballot measure pursuant to ORS 251.215.)



Elections Division, Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722