Oregon Supreme Court Favors Insurer & Overturns $26.3 Million Class Action Decision

The Oregon Supreme Court overturned a $26.3 million judgement against Farmers Insurance of Oregon. The court said the company did not violate Oregon’s choice-of-shop statute when it informed policyholders of repair shop options.

The law says insurance companies cannot require a policyholder to use specific repair shops in order to settle a claim. It also notes what rights an insurer must disclose to a policyholder during the claims process.

The Supreme Court said Farmers did not violate that law and met its legal obligations by using claims language approved by the Oregon Department of Consumer and Business Services (DCBS). Insurers using that language are not liable for omitting portions of the statute says must be given to the claimant.

Source link: Insurance Business America — https://bit.ly/42XP9x6