68th OREGON LEGISLATIVE ASSEMBLY--1995 Regular Session
Enrolled
Senate Bill 441
Sponsored by COMMITTEE ON BUSINESS AND CONSUMER AFFAIRS (at the
request of Oregon Bankers Association, Oregon Financial
Services Association)
CHAPTER ................
AN ACT
Relating to credit involuntary unemployment insurance; amending
ORS 707.310, 716.610, 744.085, 744.115 and 746.182.
Be It Enacted by the People of the State of Oregon:
**************************** SECTION 1. ORS 744.085 is amended
to read:
744.085. An examination for issuance or amendment of a license
to transact insurance as an agent shall not be required of any of
the following applicants:
(1) Any applicant who held a valid license of resident agent
when ordered into active duty in the Armed Forces of the United
States and who applies for the reissuance of the license within
six months after being relieved under honorable conditions from
active duty in the Armed Forces.
(2) Transportation ticket agents of common carriers applying
for a license authorizing them, as provided in ORS 744.115, to
solicit and sell, as incidental to their duties as transportation
ticket agents, only:
(a) Travel ticket health insurance policies;
(b) Insurance of personal effects while being carried as
baggage on the common carriers; or
(c) Trip cancellation insurance policies.
(3) Any applicant for a license authorizing the applicant to
transact general lines insurance, upon whom the American
Institute of Property and Liability Underwriters, Inc. has
conferred the Chartered Property and Casualty Underwriter
(C.P.C.U.) designation, or any applicant for a license
authorizing the applicant to transact life or health insurance,
or both, upon whom the American College of Life Underwriters has
conferred the Chartered Life Underwriter (C.L.U.) designation, if
the Director { + of the Department of Consumer and Business
Services + } is satisfied, by examination or otherwise, that the
applicant is knowledgeable in the particulars of the applicable
provisions of the Insurance Code.
(4) Any applicant for a license authorizing the applicant to
transact credit life insurance, credit health insurance,
{ + credit involuntary unemployment insurance, + } livestock
insurance, mortgage insurance, motor vehicle mechanical breakdown
insurance or motor vehicle physical damage insurance, or for any
combination of such classes permitted by the Insurance Code.
(5) Any applicant for a license authorizing the applicant to
transact title insurance.
(6) Any applicant for a license authorizing the applicant to
transact lender's property insurance.
(7) Any applicant who holds a valid license issued by another
state, if the state requires an examination for the license that
is comparable to the examination administered in this state and
if the state exempts from the examination requirement any
applicant who holds a valid license issued by this state for
which an examination is required. However, the director may
require the applicant to be examined on the Insurance Code and
rules adopted under the Insurance Code.
(8) A firm or corporation applying for a license authorizing it
to transact insurance as an agent.
(9) Any applicant for a license or indorsement of a license
authorizing the applicant to act as an intermediary broker or an
intermediary manager.
**************************** SECTION 2. ORS 744.115 is amended
to read:
744.115. (1) When the Director { + of the Department of
Consumer and Business Services + } issues a license authorizing a
person to transact insurance as an agent, the director shall
indorse on the license the class or classes of insurance or
subclasses thereof, as described in this section, that the person
is authorized to transact as an agent. The classes and subclasses
of insurance are as follows:
(a) General lines insurance. Under this class, an agent may
transact casualty, property, marine and transportation and surety
insurance.
(b) Life insurance.
(c) Health insurance, whether provided by an insurer or a
health care service contractor as defined in ORS 750.005.
(d) Surplus line insurance. Under this class, an agent may
place insurance with eligible surplus line insurers as provided
in ORS 735.400 to 735.495.
(e) Livestock insurance. Under this class, an agent may
transact insurance against loss of, damage to or death of
domestic animals.
(f) Mortgage insurance.
(g) Motor vehicle physical damage insurance. Under this class,
an agent may transact insurance against only the loss of or
damage to any motor vehicle designed primarily for use upon a
highway.
(h) Travel ticket health insurance. Under this class, an agent
may transact personal accident insurance covering the risks of
travel. This indorsement may be made only on the license of an
agent who is a full-time salaried employee of a common carrier or
a full-time salaried employee or owner of a transportation ticket
agency, either of whom is engaged in the sale of transportation
tickets, or to a full-time salaried employee of an agent holding
a license authorizing the agent to transact health insurance. The
indorsement shall authorize sale of such policies only in
connection with the sale of transportation tickets. No such
policy shall be for a duration of more than 48 hours or for the
duration of a specified one-way trip or round trip, as
applicable.
(i) Baggage insurance and trip cancellation and trip
interruption insurance. Under this class, an agent may transact
insurance of personal effects in connection with travel and for
reimbursement of trip travel expense resulting from some
emergency in connection with travel. This indorsement may be made
only on the license of an agent who is a full-time salaried
employee of a common carrier or a full-time salaried employee or
owner of a transportation ticket agency, either of whom is
Enrolled Senate Bill 441 Page 2
engaged in the sale or handling of transportation of personal
effects as baggage of travelers, or to a full-time salaried
employee of an agent holding a license authorizing the agent to
transact general lines insurance.
(j) Credit life insurance.
(k) Credit health insurance.
{ + (L) Credit involuntary unemployment insurance. + }
{ - (L) - } { + (m) + } Credit insurance. Under this class,
an agent may transact insurance against loss or damage from
failure of debtors to pay their obligations to the insured. This
class does not include mortgage insurance.
{ - (m) - } { + (n) + } Title insurance.
{ - (n) - } { + (o) + } Lender's property insurance. Under
this class, an agent may transact property insurance on the
personal property of a debtor to secure the repayment of the
amount borrowed from a lender.
{ - (o) - } { + (p) + } Motor vehicle mechanical breakdown
insurance. Under this class, an agent may transact insurance
against loss arising from the mechanical failure or breakdown of
a motor vehicle part or component.
(2) The director may require that indorsements under this
section state particular qualifications for the transaction of a
class or subclass of insurance as determined by the director to
be necessary for the protection of the insurance-buying public.
**************************** SECTION 3. ORS 707.310 is amended
to read:
707.310. (1) Except as otherwise provided in the Bank Act or
the articles of incorporation of an institution, an institution
shall have:
(a) Perpetual duration and succession in its corporate name,
unless a limited period of duration is stated in its articles of
incorporation;
(b) The same powers as an individual to do all things necessary
or convenient to carry out its business and affairs, including
without limitation, power to:
(A) Sue and be sued and complain and defend in its corporate
name;
(B) Have a corporate seal, which may be altered at will, and
use it or a facsimile thereof by impressing, affixing or
reproducing it in any other manner;
(C) Make contracts and guarantees, incur liabilities, borrow
money, issue its notes, bonds and other obligations that may be
convertible into other securities of the institution or include
the option to purchase other securities of the institution and
secure any of its obligations by mortgage or pledge of any of its
property, franchises or income;
(D) Conduct its business, locate offices and exercise the
powers granted by the Bank Act within or without this state;
(E) Elect or appoint directors, officers, employees and agents
of the institution;
(F) Make and amend bylaws not inconsistent with its articles of
incorporation or with the laws of this state for managing the
business and regulating the affairs of the institution;
(G) Make donations for the public welfare or for charitable,
scientific or educational purposes;
(H) Transact any lawful business that will aid governmental
policy;
(I) Pay pensions and establish pension plans, and share option
plans and benefit or incentive plans for any or all of its
current or former directors, officers, employees and agents;
Enrolled Senate Bill 441 Page 3
(J) Be a promoter, partner, member, associate or manager of any
partnership, joint venture, trust or other enterprise; and
(K) Cease its corporate activities and surrender its corporate
franchise;
(c) The powers granted to institutions by the Bank Act;
(d) The power to be licensed under ORS 744.002 as an agent to
transact one or more of the classes of insurance described in ORS
744.115 except for title insurance; and
(e) All powers necessary or convenient to effect any or all of
the purposes for which the institution is organized or to perform
any or all of the acts expressly or impliedly authorized or
required under the Bank Act.
(2) With respect to any exercise of the power granted under
subsection (1)(d) of this section, other than the licensing of
the institution to transact livestock insurance, mortgage
insurance, motor vehicle physical damage insurance, credit life
insurance, credit health insurance, { + credit involuntary
unemployment insurance, + } credit insurance or lender's property
insurance, as these classes of insurance are described in ORS
744.115:
(a) The conduct by the institution of insurance agency
activities shall be subject to the approval of the Director of
the Department of Consumer and Business Services. The director
shall base consideration for approval on the condition of the
institution, the adequacy of a formal business plan for the
insurance activities and the existence of satisfactory management
for the insurance activity.
(b) The director may revoke or restrict the ongoing authority
of the institution to engage in the insurance agency activity if
the condition of the institution substantially deteriorates or if
the insurance activities are adversely affecting the institution.
(c) If the insurance agency activity is conducted in a branch
or office in which the institution carries on its banking
business, the insurance agency activity shall be physically
separated from those parts of the premises in which the
institution carries on the banking business.
(d) All persons who act on behalf of the institution to
transact insurance, as that term is defined in ORS 731.146, other
than to transact livestock insurance, mortgage insurance, motor
vehicle physical damage insurance, credit life insurance, credit
health insurance, { + credit involuntary unemployment
insurance, + } credit insurance or lender's property insurance,
as these classes of insurance are described in ORS 744.115, shall
be engaged only in the insurance agency activity and shall not in
any manner perform any other work for the institution.
(e) Prior to selling any policy of insurance, the institution
shall disclose in writing to the purchaser that the purchaser
shall not be required to purchase the insurance from the
institution as a condition of obtaining any service from or
engaging in any transaction with the institution.
(f) The institution shall file a written report with the
director no later than March 31 each year disclosing the
insurance activities of the institution. The required contents of
the report shall be established by the director by rule. The
reports filed with the director under this paragraph shall be
available for public inspection in the office of the director.
(3) An institution licensed to transact insurance shall not in
any manner use customer information obtained from another
insurance agent to promote, develop or solicit insurance business
Enrolled Senate Bill 441 Page 4
for the institution unless the other insurance agent consents to
such use of the customer information.
**************************** SECTION 4. ORS 716.610 is amended
to read:
716.610. A savings bank, subject to the restrictions and
limitations contained in this chapter, may:
(1) Receive time deposits and demand deposits of money without
restriction.
(2) Offer time and savings accounts and other kinds of deposit
accounts, including but not limited to automatic savings to
checking transfer accounts and negotiable order of withdrawal
accounts, to individuals and nonprofit corporations.
(3) Exercise by its board of directors or authorized officers
or agents, subject to law, all powers necessary to carry on the
business of savings banks.
(4) Pay depositors when requested by them, by drafts upon
deposits to the credit of the savings bank in any city in the
United States, and charge current rates of exchange for the
drafts.
(5) Borrow money, and pledge securities to secure the money
borrowed, but any amount borrowed in excess of 20 percent of
deposits shall first be approved in writing by the Director { +
of the Department of Consumer and Business Services + }. The
failure to obtain the approval of the director shall not make an
excess loan invalid as to the lender.
(6) Collect or protest promissory notes or bills of exchange
owned by the savings bank or held by it as collateral, and charge
the usual fees for the collection or protest.
(7) Sell gold or silver received in payment of interest or
principal of obligations owned by the savings bank, or from
depositors in the ordinary course of business.
(8) Become a member of the Federal Reserve Bank or the Federal
Home Loan Bank of the district in which the savings bank is
located.
(9) Conduct a trust business and exercise all the powers of a
trust company as defined by ORS 709.150 upon compliance with the
laws of this state relating to the regulations of a trust
business.
(10) Be licensed under ORS 744.002 as an agent to transact one
or more of the classes of insurance described in ORS 744.115
except for title insurance. With respect to the exercise of the
power granted under this subsection, other than the maintenance
of any insurance license granted to a savings bank prior to
September 27, 1987, or the licensing of the savings bank to
transact livestock insurance, mortgage insurance, motor vehicle
physical damage insurance, credit life insurance, credit health
insurance, { + credit involuntary unemployment insurance, + }
credit insurance or lender's property insurance, as these classes
of insurance are described in ORS 744.115:
(a) The conduct by the savings bank of insurance agency
activities shall be subject to the approval of the director. The
director shall base consideration for approval on the condition
of the savings bank, the adequacy of a formal business plan for
the insurance activities and the existence of satisfactory
management for the insurance activity.
(b) The director may revoke or restrict the ongoing authority
of the savings bank to engage in the insurance agency activity if
the condition of the savings bank substantially deteriorates or
if the insurance activities are adversely affecting the savings
bank.
Enrolled Senate Bill 441 Page 5
(c) If the insurance agency activity is conducted in a branch
or office in which the savings bank carries on its banking
business, the insurance agency activity shall be physically
separated from those parts of the premises in which the savings
bank carries on the banking business.
(d) All persons who act on behalf of the savings bank to
transact insurance, as that term is defined in ORS 731.146, other
than to transact livestock insurance, mortgage insurance, motor
vehicle physical damage insurance, credit life insurance, credit
health insurance, { + credit involuntary unemployment
insurance, + } credit insurance or lender's property insurance,
as these classes of insurance are described in ORS 744.115, or
under a license granted to the savings bank prior to September
27, 1987, shall be engaged only in the insurance agency activity
and shall not in any manner perform any other work for the
savings bank.
(e) Prior to selling any policy of insurance, the savings bank
shall disclose in writing to the purchaser that the purchaser may
not be required to purchase the insurance from the savings bank
as a condition of obtaining any service from or engaging in any
transaction with the savings bank.
(f) The savings bank shall file a written report with the
director no later than March 31 each year disclosing the
insurance activities of the savings bank. The required contents
of the report shall be established by the director by rule. The
reports filed with the director under this paragraph shall be
available for public inspection in the office of the director.
(g) The savings bank shall not in any manner use customer
information obtained from another insurance agent to promote,
develop or solicit insurance business for the savings bank unless
the other insurance agent consents to such use of the customer
information.
**************************** SECTION 5. ORS 746.182 is amended
to read:
746.182. (1) Prior to selling any policy of insurance, other
than a policy for a class of insurance referred to in subsection
(2) of this section, any agent that is a banking institution or
savings bank as defined in ORS 706.005, or a corporation, all or
part of the stock of which is held by a banking institution, a
bank holding company as defined in ORS 715.010, or a savings or
stock savings bank shall give the following separate notice in
writing to the purchaser in at least 10-point type:
_________________________________________________________________
NOTICE
(Check applicable boxes)
� | ___________ (Name of institution or savings bank) is a
licensed insurance agent under Oregon law. You are not required
to purchase any insurance from ___________ (Name of institution
or savings bank) as a condition of obtaining any service
from______ (Name of institution or savings bank) or engaging in
any other transaction with____ (Name of institution or savings
bank).
� | The________ (Name of corporation licensed as an agent) is
owned in whole or in part by ___________ (Name of institution,
savings bank or stock savings bank) or _________ (Name of bank
holding company) which also owns_________ (Name of institution,
savings bank or stock savings bank).
You are not required to purchase any insurance from______ (Name
of corporation licensed as an agent) as a condition of obtaining
Enrolled Senate Bill 441 Page 6
any service from or engaging in any other transaction with the
above named banking institution, bank holding company, savings
bank or stock savings bank.
Purchaser hereby acknowledges receipt of a copy of this notice.
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
________
____
Purchaser's signaturDate
_________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
(2) The requirement under subsection (1) of this section does
not apply to any policy for livestock insurance, mortgage
insurance, motor vehicle physical damage insurance, credit life
insurance, credit health insurance, { + credit involuntary
unemployment insurance, + } credit insurance or lender's property
insurance, as these classes of insurance are described in ORS
744.115.
----------
Passed by Senate March 7, 1995
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House May 15, 1995
...........................................................
Speaker of House
Enrolled Senate Bill 441 Page 7
Received by Governor:
......M.,............., 1995
Approved:
......M.,............., 1995
...........................................................
Governor
Filed by Office of Secretary of State:
......M.,............., 1995
...........................................................
Secretary of State
Enrolled Senate Bill 441 Page 8