Or. Admin. Code § 836-062-0010

Current through Register Vol. 63, No. 12, December 1, 2024

Section 836-062-0010 - Vendor Single Interest Policies; Required Notice

(1) An insurer providing vendor's single interest coverage shall cause notice of the limited nature of the coverage to be given as provided in this rule to the borrower to whom the policy, certificate or other document giving evidence or notice of insurance coverage is issued. The notice shall be displayed on the face page of the policy, certificate or other document, or enclosed therewith. Except as provided in section (2) of this rule, the notice of the limited nature of the coverage shall be in bold face type of not less than 12-point with a lower case unspaced alphabet length of not less than 120-point or of not less than 10-point if the notice is in a contrasting color, and shall state:

"WARNING: THIS IS A LIMITED POLICY THAT PROTECTS ONLY THE LENDER'S INTEREST IN THE INSURED PROPERTY. THE POLICY DOES NOT PROVIDE BODILY INJURY AND PROPERTY DAMAGE LIABILITY INSURANCE AND DOES NOT COMPLY WITH ANY FINANCIAL RESPONSIBILITY LAW OR ANY OTHER LAW MANDATING MOTOR VEHICLE INSURANCE COVERAGE."

(2) An insurer may satisfy the notice requirement under section (1) of this rule by use of a notice provision that substantially complies with the notice provision set forth in section (1) of this rule, if the alternative notice provision is approved by the Director prior to use.

(3) This rule applies to all policies of personal property insurance placed on personal property that protect only the single interest of the vendor or lender. A policy protects only the single interest of the vendor or lender if it protects against loss or damage to personal property of a debtor for the following purposes:

(a) To secure repayment of the amount borrowed from the vendor or lender;

(b) To protect the vendor's or lender's interest in the property; and

(c) To protect the interest in the amount of the actual cash value of the collateral, the cost of repair or the loan balance, whichever is less.

(4) The notice requirement under this rule may be met by the attachment of a sticker or separate piece of paper or by a stamp that contains the required warning. Other devices that contain the required warning may be used if approved by the Director.

Or. Admin. Code § 836-062-0010

ID 9-1989, f. & cert. ef. 10-23-89

Stat. Auth.: ORS 731

Stats. Implemented: ORS 742.005(2), ORS 742.023(1)(f) & ORS 746.240