The Oregon Division of Financial Regulation (“DFR”) has recently released Bulletin No. DFR 2026-10 regarding unfair claim settlement practices, applicable to all property and casualty carriers that write auto and homeowners/dwelling coverage and use virtual claim adjustment systems. The key highlights are as follows:
- This bulletin replaces Bulletin No. DFR 2020-4 issued February 18, 2020, which addressed auto claims handling, to broaden the scope apply to auto, homeowners, and dwelling property lines.
- Virtual claim adjustment systems direct the insured to submit photos, videos, or other information online in lieu of having a claims adjuster assess the damage to an automobile, home, or rental unit in person.
- It is an unfair claims settlement practice and a violation of Oregon law for an insurer to refuse to pay claims without conducting a reasonable investigation based on all available information, including information that may only be available upon in-person inspection.
- If a claim is not settled appropriately due to an insurer’s failure to provide for in-person inspection by an insurance adjuster, that failure constitutes a violation of Oregon law.
- Insurers may not deny the claimant’s request for an in-person adjuster because a claimant initially elected to use a virtual system.
- It is an unfair claim settlement practice and a violation of Oregon law to systematically make initial settlement offers that are substantially lower than the cost of making covered repairs and to rely on the insureds to dispute the initial offers.
- An insurer may require policyholders to submit claims through a mobile application only if that requirement is disclosed at application and stated in the policy. Insurers may not require third-party claimants to use their mobile applications to submit claims.
Please note that this bulletin became effective upon issuance on November 4, 2026.
For any questions related to the above referenced bulletin in Oregon, please contact Westmont Associates!