Bellshaw v. Farmers Ins. Co.

ORS 746.290(2)(b) requires insurers to provide notice of all of the provisions of ORS 746.280 when a relevant policy is issued. The obligation under ORS 746.290(2)(b) attaches at the time a policy is issued, not at the time a claim is made under the policy.

Farmers Insurance Company (“Farmers”) appealed a class action judgement awarding $26 million to class members for Farmers’s failure to provide adequate notices of the customers’ rights to choose an auto repair shop.  Farmers assigned error to the trial court's interpretation of ORS 746.280(1) and the class certification of time-barred claims, including that of the representative plaintiff. On appeal, Farmers argued that the 2007 amendments to ORS 746.280(1) were not intended for inclusion in the insurer notice requirement under ORS 746.290(2)(b), and members whose policy was issued more than three years prior to the initiation of the current action were barred by the statute of limitations.  ORS 746.290(2)(b) requires insurers to provide notice of all of the provisions of ORS 746.280 when a relevant policy is issued. The obligation under ORS 746.290(2)(b) attaches at the time a policy is issued, not at the time a claim is made under the policy. The Court found a plain reading of ORS 746.290(2)(b) required Farmers to provide customers with a statement that includes all four provisions of ORS 746.280(1), as amended, and their failure to do so resulted in inadequate notice.  Additionally, the Court found that members whose policies were issued more than three years prior to the onset of current litigation were time-barred, meaning the trial court improperly expanded the class to include members without timely claims.  Reversed and remanded.