New legislation would bring the insurance industry under Oregon’s Unlawful Trade Practices Act.
Supporters said the change would protect consumers from deceptive practices.
Tyler Staggs, an attorney in Portland, represented insurers for nearly 20 years. He said his law firm now advocates for consumers because of the insurance industry’s growing unfairness. He cited such cases as a client left homeless when an insurer denied living expenses after a house fire. In another case, he added, a client was denied a claim after a brain injury from a car accident.
“Rather than paying the benefits that the insured paid for, the insurance company lowballs them and delays, to see if they can force them to take a settlement,” Staggs explained.
Oregon’s insurance industry is the only major industry in the state not subject to the state’s Unlawful Trade Practices Act. The bill is scheduled for a work session in the Senate Tuesday.
Staggs pointed out insurance companies argued the change will lead to more lawsuits and higher rates for consumers. He countered if companies are treating people fairly, rates will not have to increase.
“To say, well, ‘We shouldn’t have this enforcement mechanism because it’s going to raise your rates,’ really seems like disingenuous and it seems like blackmail,” Staggs contended.
Staggs explained under the law, if the court finds a lawsuit to be unjustified, the insured would be responsible for covering the insurance company’s legal fees, which protects insurers against baseless claims.
Mike Leib, vice president of Precision Body and Paint, an auto-body repair shop based in Beaverton, said insurers exploit consumers’ lack of time and money to fight claims. He noted negotiating with insurers has become combative, as they routinely delay and deny legally required repair reimbursements.
“They are declining required repair procedures by manufacturers,” Leib observed. “That can result in an unsafe repair, which can result in a death.”
Both Leib and Staggs said insurance companies’ quality of service has been worse since the pandemic, when they closed local offices and started depending more on artificial intelligence. They added the legislation would make insurance companies accountable to fairly evaluate claims.
Isobel Charle, Oregon News Service
