The Oregon Division of Financial Regulation (“DFR”) has recently released Bulletin No. DFR 2026-7 regarding arbitration clauses, choice of law, and choice of venue provisions in insurance policies, applicable to all health, life, and property and casualty insurers. The key highlights are as follows:
- This bulletin replaces Bulletin No. DFR 2020-1 issued January 14, 2020.
- Insurance policies may not contain pre-dispute mandatory arbitration clauses (other than those noted below), choice of law provisions, or choice of venue provisions.
- Any policy form filing containing these provisions will be disapproved.
- These provisions unfairly limit or impose unreasonable preconditions on policy holders’ ability to adjudicate their disputes in state courts under the protection of Oregon law.
- Pre-dispute Mandatory Arbitration Clauses:
• Oregon allows for arbitration only if there is mutual agreement at the time of the dispute.
• Unilateral pre-dispute arbitration clauses are prohibited.
• The division requires that insurers add policy language to make clear that although one party can unilaterally require an appraisal, the results of the appraisal are not binding on any party that did not request an appraisal.
• Any policy form filing containing pre-dispute mandatory arbitration clauses which allow for election by either party will be disapproved. - Choice of Venue and Choice of Law Provisions:
• Oregon law prohibits choice of law provisions requiring insurance contracts to be interpreted based on the laws of any other state or country.
• Choice of venue provisions that require the insured to travel out of state pose an unfair barrier to adjudicate their claims and the DFR finds such provisions to be unfair, injurious to the public, and an unfair trade practice.
Please note that this bulletin became effective upon issuance on August 24, 2026.
For any questions related to the above referenced bulletin in Oregon, please contact Westmont Associates!