OR| Oregon’s Division of Financial Regulation Bulletin DFR 2026-7, dated August 24, 2026 (signed August 26), replaces Bulletin DFR 2020-1 and directs insurers across all health, life, and property and casualty lines to remove policy provisions that predetermine arbitration, apply non-Oregon law, or require disputes to be brought outside Oregon. The Division views these provisions as unfair limitations on policyholders’ ability to resolve disputes under Oregon law and warns that policy forms containing them will be disapproved.
Key Points:
- Choice of law and venue: Oregon insurance contracts may not select another state’s or country’s law, consistent with ORS 742.018. Clauses requiring an insured to litigate or arbitrate outside Oregon are also deemed unfair, injurious to the public, and an unfair trade practice under ORS 746.240.
- Pre-dispute mandatory arbitration: Insurers may not include clauses allowing either party to compel arbitration before a dispute arises, except for statutorily prescribed contexts. Arbitration remains available if the parties mutually agree after the dispute arises; UM/UIM and PIP statutes likewise require agreement at the time of the dispute.
- Fire-policy appraisal clarification: Although ORS 742.232 requires an appraisal provision in fire insurance policies, insurers must expressly state that an appraisal initiated by one party is not binding on a party that did not request it, addressing potential ambiguity and consumer confusion.