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OregonHB 21302025 Regular SessionHouseWALLET

Relating to the Oregon Insurance Guaranty Association.

Sponsored By: Sponsor information unavailable

Became Law

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 1 costs, 3 mixed.

Higher guaranty claim cap from 2025

The law caps what OIGA can pay per covered claim. For insurer insolvencies from Sept. 9, 1971 through Dec. 31, 2024, the cap is $300,000. For insolvencies on or after Jan. 1, 2025, the cap is $600,000. If your loss is smaller, you can get the full covered amount. Losses above the cap are not paid.

Workers' comp claims paid in full

For a workers’ compensation claim, OIGA pays the covered amount minus whatever the Workers’ Benefit Fund pays. This keeps workers’ comp benefits whole when an insurer is insolvent.

Insurer assessments and claim oversight

OIGA charges member insurers based on last year’s net direct written premiums, with a cap of 2% per year. Insurers get at least 30 days’ notice. If funds are short, payments are prorated and the rest is paid later. OIGA can defer or exempt an assessment that would push an insurer below required capital; recent dividends of controlled insurers count as assets. Servicing facilities can set off authorized payments against assessments. The state insurance director must approve OIGA’s hiring and choice of servicing facilities.

New rules for cybersecurity insurance claims

The law defines cybersecurity insurance as admitted coverage for breaches, ransomware, identity theft, and similar risks. For insurer insolvencies on or after Jan. 1, 2025, OIGA can pay no more than $600,000 total for all claims from one cyber incident. OIGA may choose to pay cyber claims for very high–net‑worth insureds, then seek repayment. It can recover what it paid (and legal costs) from insureds with over $25 million in net worth and from affiliates. These recovery rights do not apply to workers’ compensation claims.

Who the guaranty covers and excludes

The guaranty now covers unpaid Workers’ Benefit Fund claims under Oregon workers’ comp. It excludes claims filed after the court’s final claim date, except for workers’ comp claims. First‑party claims by insureds with more than $25 million in net worth (as of Dec. 31 before the insolvency) are not covered. Coverage does not apply to less‑than‑fully‑insured employer health plans. You must use all other insurance first; OIGA reduces its payment by those policy limits. For asbestos or pollution claims, you must exhaust all policies across all years, and file with the guaranty group tied to residence (property by property location; workers’ comp by claimant’s residence).

Coverage after policies are transferred

If a member insurer took full responsibility for a policy and is later liquidated, OIGA covers claims on that policy. This holds even if a court order or novation released the original insurer. OIGA does not cover when a non‑member insurer issued the policy and a member later assumed it.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 101 • No: 0

Senate vote • 4/29/2025

Third reading. Carried by Taylor. Passed.

Yes: 28 • No: 0

Senate vote • 4/15/2025

Labor and Business: Heard and Reported Out

Yes: 5 • No: 0

House vote • 3/11/2025

Third reading. Carried by Reschke. Passed.

Yes: 58 • No: 0

House vote • 3/4/2025

Commerce and Consumer Protection: Heard and Reported Out

Yes: 10 • No: 0

Actions Timeline

  1. Chapter 20, (2025 Laws): Effective date January 1, 2026.

    5/20/2025House

  2. Governor signed.

    5/7/2025House

  3. President signed.

    5/1/2025Senate

  4. Speaker signed.

    5/1/2025House

  5. Third reading. Carried by Taylor. Passed.

    4/29/2025Senate

  6. Carried over to 04-29 by unanimous consent.

    4/28/2025Senate

  7. Carried over to 04-28 by unanimous consent.

    4/24/2025Senate

  8. Carried over to 04-24 by unanimous consent.

    4/23/2025Senate

  9. Second reading.

    4/22/2025Senate

  10. Recommendation: Do pass.

    4/22/2025Senate

  11. Work Session held.

    4/15/2025Senate

  12. Public Hearing held.

    4/10/2025Senate

  13. Referred to Labor and Business.

    3/13/2025Senate

  14. First reading. Referred to President's desk.

    3/13/2025Senate

  15. Third reading. Carried by Reschke. Passed.

    3/11/2025House

  16. Second reading.

    3/10/2025House

  17. Recommendation: Do pass.

    3/7/2025House

  18. Work Session held.

    3/4/2025House

  19. Public Hearing held.

    2/11/2025House

  20. Referred to Commerce and Consumer Protection.

    1/17/2025House

  21. First reading. Referred to Speaker's desk.

    1/13/2025House

Bill Text

  • Enrolled

    4/29/2025

    PDF

  • Introduced

    1/10/2025

    PDF

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