(1) Except as provided in subsection (2) of this section, grain in storage in a public warehouse or public terminal warehouse shall be kept fully insured by the warehouseman for the current market value of such grain against loss by fire, lightning, inherent explosion, windstorm, cyclone and tornado. Evidence of such insurance coverage in the form of a certificate of insurance approved by the State Department of Agriculture shall be filed with the department at the time of making application for an annual license to operate a public warehouse as required by this chapter. The department shall not issue a license until such certificate of insurance is received.

(2) Any person depositing or storing grain who does not wish to have the grain of the person insured by a warehouseman, as required by subsection (1) of this section, may relieve the warehouseman of that duty and the provisions of this section, by notifying the warehouseman in writing that the person does not wish the grain of the person insured. If such notice specifies a definite period during which such grain shall not be insured, the warehouseman shall keep such notice in the files of the warehouseman for at least two years after such period ends. If no period is mentioned and the notice covers all grain which has been or may thereafter be deposited or stored with such warehouseman, then the warehouseman shall retain such notice for at least two years after all grain has been removed by the person giving such notice.

(3) Notwithstanding the provisions of ORS § 586.275, when the provisions of this section are violated, the department shall immediately suspend the license of the warehouseman. The suspension shall remain in effect until there has been compliance with this section. The provisions of this subsection shall supersede any inconsistent provisions in ORS Chapter 183. [1959 c.195 § 6; 1961 c.425 § 7]

[Repealed by 1955 c.731 7, 34 (586.285 enacted in lieu of 586.320)]