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Bill

HB 2563

Relating to explanations required in connection with premium increases upon renewals of certain insurance policies; and prescribing an effective date.

2025 Regular Session

Oregon requires insurers to provide written explanations of premium increases upon policy renewal, effective September 26, 2025, enhancing consumer transparency in rate changes.

Chapter 351, (2025 Laws): Effective date September 26, 2025.
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Bill Summary · HB 2563

Legislative bill overview

HB 2563 requires insurance companies in Oregon to provide written explanations to policyholders when renewing certain insurance policies if premiums increase. The bill mandates disclosure of reasons for rate changes and became effective September 26, 2025, as Chapter 351 of the 2025 Oregon Laws.

Why is this important

Insurance premium increases can significantly impact household budgets, yet consumers often receive little transparency about why their rates changed. This transparency requirement allows policyholders to understand pricing decisions, comparison shop more effectively, and potentially challenge unjustified increases through regulatory channels.

Potential points of contention

  • Insurer compliance costs: Companies must develop systems to generate individualized explanations for each renewal, potentially increasing administrative expenses that could be passed to consumers
  • Scope limitations: The bill applies only to "certain insurance policies," leaving ambiguity about which policy types are covered and potentially creating unequal protections across different insurance products
  • Information adequacy: Written explanations may lack sufficient detail for consumers to meaningfully evaluate rate increases, or could contain proprietary rating formulas insurers wish to keep confidential

Compiled from official sources — confirm details with the bill’s official record.

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