Oregon Statutes 742.390 – Reimbursement insurance policy; contents; definitions
(1) A reimbursement insurance policy insuring service contracts issued, sold or offered for sale in this state shall conspicuously state that, upon failure of the obligor to perform under the contract, the insurer that issued the policy shall pay on behalf of the obligor any sums the obligor is legally obligated to pay or shall provide the service that the obligor is legally obligated to perform according to the obligor’s contractual obligations under the service contracts issued by the obligor.
Terms Used In Oregon Statutes 742.390
- Contract: A legal written agreement that becomes binding when signed.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
(2) For purposes of this section and ORS § 742.392:
(a) ‘Obligor’ has the meaning given in ORS § 646A.152.
(b) A ‘reimbursement insurance policy’ is a policy of insurance providing reimbursement coverage for all obligations and liabilities under the terms of the service contract issued by the obligor including claims against the obligor for return of the unearned purchase price of the service contract.
(c) ‘Service contract’ has the meaning given in ORS § 646A.154. [1995 c.801 § 7]
742.390 and 742.392 were added to and made a part of the Insurance Code by legislative action but were not added to or made a part of ORS Chapter 742 or any series therein. See Preface to Oregon Revised Statutes for further explanation.