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Bill

HB 4098

Relating to violations of the Insurance Code as unlawful trade practices.

2026 Regular Session Introduced by Tom Andersen and 20 co-sponsors

Oregon bill reclassifies Insurance Code violations as unlawful trade practices, expanding enforcement authority and potential penalties for insurance industry violations.

Second reading.
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Bill Summary · HB 4098

Legislative bill overview

HB 4098 classifies violations of Oregon's Insurance Code as unlawful trade practices under the state's consumer protection statutes. This expansion allows violations that were previously treated as insurance-specific infractions to be prosecuted under broader unfair trade practice laws, potentially triggering additional penalties and enforcement mechanisms.

Why is this important

This change significantly expands the regulatory toolkit for addressing insurance violations by enabling consumer protection authorities to pursue cases beyond traditional insurance regulators. It could result in stronger penalties, attorney general involvement, and private right of action opportunities for affected consumers—potentially making the insurance industry more accountable for code violations.

Potential points of contention

  • Industry compliance burden: Insurance companies argue the dual classification creates uncertainty about which regulatory framework applies and could lead to conflicting enforcement standards between insurance regulators and attorney general offices
  • Penalty escalation concerns: Critics worry the reclassification automatically subjects insurance violations to unfair trade practice penalties, potentially overreaching for minor technical infractions that don't involve consumer harm
  • Enforcement overlap: Ambiguity about jurisdictional coordination between the Department of Consumer and Business Services (insurance division) and the Attorney General could create duplicative or inconsistent enforcement actions

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

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