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Oregon hearing considers adding insurers to Unlawful Trade Practices Act; consumer groups and industry clash
Summary
The Senate Committee on Judiciary heard hours of testimony on Senate Bill 174, which would allow consumers and prosecutors to use Oregon's Unlawful Trade Practices Act against insurers; supporters said it fills a protection gap, opponents warned of higher litigation costs and rate pressure.
The Senate Committee on Judiciary on Wednesday heard testimony on Senate Bill 174, a proposal to allow consumers and prosecuting attorneys to bring claims under Oregon's Unlawful Trade Practices Act (UTPA) for unfair insurance practices.
The bill, its sponsor and backers told the committee, would remove a long-standing exemption that now prevents insurers from being sued under the state's general consumer-protection law. "This bill is a priority for me, Senate Bill 174, and for the Department of Justice," Attorney General Dan Rayfield told the committee, saying his office has received hundreds of insurance complaints in recent years and that state-level protections are becoming more important as some federal consumer tools weaken.
Supporters, including consumer advocates and former industry lawyers,…
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