Oregon Revised Statutes

Or. Rev. Stat. § 656.423 (2026)

Cancellation of coverage by employer; notice required

✓ current as of May 2026
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      656.423 Cancellation of coverage by employer; notice required. (1) An insured employer may cancel coverage with the insurer by giving the insurer at least 30 days’ written notice, unless a shorter period is permitted by subsection (3) of this section.

      (2) Cancellation of coverage is effective at 12 midnight 30 days after the date the cancellation notice is received by an authorized representative of the insurer, unless a later date is specified.

      (3) An employer may cancel coverage effective less than 30 days after written notice is received by an authorized representative of the insurer by providing other coverage, by becoming a self-insured employer or by agreement of the employer and the insurer. A cancellation under this subsection is effective immediately upon the effective date of the other coverage, on the effective date of certification as a self-insured employer or on a date agreed upon in writing by the employer and insurer.

      (4) The insurer shall file a notice of cancellation with the Director of the Department of Consumer and Business Services within 10 calendar days after the effective date of the cancellation or the date on which the insurer receives the notice required under subsection (1) of this section, whichever is later. The notice required under this subsection shall be in the form and manner and shall contain any information that the director may prescribe by rule. [1975 c.556 §31; 1981 c.854 §29; 2003 c.170 §4; 2007 c.241 §2]

 

      656.424 [Renumbered 656.734]

 

      656.425 [1965 c.285 §76a; repealed by 1975 c.556 §54]

 

      656.426 [Amended by 1965 c.285 §68b; renumbered 656.702]

Notes of Decisions
Cited in 3 cases, 1983–1998 · leading case: D Maint. Co. v. Mischke, 733 P.2d 903 (Or. Ct. App. 1987).
D Maint. Co. v. Mischke, 733 P.2d 903 (Or. Ct. App. 1987). “ORS 656.423(3) provides that an employer may cancel coverage by providing other coverage and that cancellation is “effective immediately upon the effective date of the other coverage.”
Employers Ins. of Wausau v. RM Hardy & Co., 963 P.2d 97 (Or. Ct. App. 1998). “419(5) provides that “[c]overage of an employer under a guaranty contract continues until canceled or terminated as provided by ORS 656.423 or ORS 656.427.” ORS 656.427 provides that a guaranty contract may be canceled “by giving the employer and the Director of [DCBS] written…”
State Accident Ins. Fund Corp. v. Harrington, 665 P.2d 1251 (Or. Ct. App. 1983). “That statute provides in part: u* * * * * “(5) Coverage of an employer under a guaranty contract continues until canceled or terminated as provided by ORS 656.423 or 656.427.” Pursuant to ORS 656.”
— Or. Rev. Stat. § 656.423(3) — 1 case
D Maint. Co. v. Mischke, 733 P.2d 903 (Or. Ct. App. 1987). “ORS 656.423(3) provides that an employer may cancel coverage by providing other coverage and that cancellation is “effective immediately upon the effective date of the other coverage.”
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