1. (1) Upon the request of a policy-holder to an insurer, the policyholder is entitled to receive a written statement, before the policy is delivered, specifying whether the policy is or is not a participating policy.

2. (2) If the insurer intends the policy to grant participation rights to policyholders, the policy shall contain a provision designated “Participation Provision.” The participation provision shall include the following wording or substantially equivalent wording approved by the Commissioner: “It is unlawful in Oregon for an insurer to promise to pay policyholder dividends for any unexpired portion of the policy term or to misrepresent the conditions for dividend payment. Dividends will be due and payable only for a policy period that has expired, and only if declared by and under conditions prescribed by the Board of Directors of the Insurer.”

   [ED. NOTE: Effective as follows: Sec. (1), 7-20-76; Sec. (2), 1-1-77

Statutory/Other Authority

ORS 731 & 746

Statutes/Other Implemented

ORS 746.015(1), 746.075, 746.160(3) & 746.240

History

IC 69-1976, f. 7-20-76, ef. 7-20-76