Oregon Revised Statutes

Or. Rev. Stat. § 737.318 (2026)

Premium audit program for workers’ compensation insurance; rules; penalties

✓ current as of May 2026
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      737.318 Premium audit program for workers’ compensation insurance; rules; penalties. (1) A workers’ compensation insurer shall maintain a premium audit program to aid in achieving equitable premium charges to Oregon employers and for the collection of credible statewide data for ratemaking.

      (2) The Director of the Department of Consumer and Business Services shall prescribe by rule a premium audit program system for workers’ compensation insurance.

      (3) The premium audit system shall include provisions for:

      (a) Employer education of the audit reporting function of the rating system;

      (b) A continuing test audit program providing for auditing of all insurers;

      (c) A continuous monitoring of the audit program system pursuant to ORS 737.235;

      (d) An appeal process pursuant to ORS 737.505 for employers to question the results of a premium audit. This process must include written notification to the employer that is included in the final premium audit billing that informs the employer of appeal rights to the director under ORS 737.505, of the requirement that a written request to initiate an appeal must be received by the director not later than the 60th day after the employer receives the final premium audit billing and of any other information the director may request by rule; and

      (e) Civil penalties pursuant to ORS 731.988 for violations of prescribed standards of the premium audit system.

      (4) Notwithstanding ORS 737.505, the provisions of this section apply to all premium audit disputes between employers and insurers in existence on July 20, 1987, regardless of the policy year involved or the date of the final audit billing. [1987 c.884 §8; 1999 c.1020 §5]

Notes of Decisions
Cited in 15 cases, 1991–2014 · leading case: Boone v. Wright, 822 P.2d 719 (Or. Ct. App. 1991).
Boone v. Wright, 822 P.2d 719 (Or. Ct. App. 1991). · cites it 2× “505, the provisions of this section apply to all premium audit disputes between employers and insurers in existence on July 20, 1987, regardless of the policy year involved or the date of the final audit billing." The legislature did not enact that kind of provision here.”
Salem Decorating Ctr., Inc. v. Nat'l Council on Comp. Ins., 840 P.2d 739 (Or. Ct. App. 1992). · cites it 2× “ORS 737.318 specifically authorizes the director of DIF to develop and administer a premium audit program and appeal process: “(1) A workers’ compensation insurer shall maintain a premium audit program to aid in achieving equitable premium charges to Oregon employers and for the…”
Kilham Stationery & Printing v. Nat'l Council on Comp. Ins., 820 P.2d 842 (Or. Ct. App. 1991). · cites it 8× “In 1987, the legislature enacted ORS 737.318, which established a premium audit program for workers’ compensation insurance.”
TTC - the Trading Co. v. Dep't of Consum. & Bus. Servs., 234 P.3d 1056 (Or. Ct. App. 2010). · cites it 2× “See ORS 737.318 (requiring director to establish a premium audit program); OAR 836-043-0110 (explaining the insurer premium audit program).”
Bruer's Contract Cutting v. Nat'l Council On Comp. Ins., 841 P.2d 690 (Or. Ct. App. 1992). · cites it 2× “DIF reviewed ORS 737.318 3 and concluded: *489 “The statutory language does not specifically provide for successive hearings on the same issue, but the language does imply that such hearings were contemplated at the time of legislative enactment.”
R & R Tree Serv., Inc. v. SAIF Corp., 286 P.3d 1232 (Or. Ct. App. 2012). “480; ORS 737.318; ORS 737.505(4); OAR 836-043-0170(1).”
Little Donkey Enter., Inc. v. State Accident Ins. Fund, 845 P.2d 1298 (Or. Ct. App. 1993). ““(4) Appeals to the director pursuant to ORS 737.318 with regard to a final premium audit billing must be made within 60 days after receipt of the billing.”
Pease v. Nat'l Council on Comp. Ins., 830 P.2d 605 (Or. Ct. App. 1992). · cites it 2× “505(4) provides: “Appeals to the director pursuant to ORS 737.318 with regard to a final premium audit billing must be made within 60 days after receipt of the billing.”
RJ Enter. LLC v. Dep't of Consum. & Bus. Servs., 298 P.3d 567 (Or. Ct. App. 2013). “See ORS 737.318(3)(d) (providing for administrative appeal process for premium audit billings).”
Cobra Constr. v. Nat'l Council on Comp. Ins., 812 P.2d 19 (Or. Ct. App. 1991). · cites it 2× “505(4): “Appeals to the director pursuant to ORS 737.318 with regard to a final premium audit billing must be made within 60 days after receipt of the billing.”
R & R Tree & Landscape, Inc. v. Dep't of Consum. & Bus. Servs., 333 P.3d 1089 (Or. Ct. App. 2014). “See ORS 737.318; OAR 836-043-0110 (workers’ compensation premium audit program); ORS 737.”
Marcott Timber & Trucking, Inc. v. Nat'l Council on Comp. Ins., 837 P.2d 543 (Or. Ct. App. 1992). “505(4) provides: “Appeals to the director pursuant to ORS 737.318 with regard to a final premium audit billing must be made within 60 days after receipt of the billing.”
— Or. Rev. Stat. § 737.318(3)(d) — 3 cases
TTC - the Trading Co. v. Dep't of Consum. & Bus. Servs., 234 P.3d 1056 (Or. Ct. App. 2010). “See ORS 737.318 (requiring director to establish a premium audit program); OAR 836-043-0110 (explaining the insurer premium audit program).”
RJ Enter. LLC v. Dep't of Consum. & Bus. Servs., 298 P.3d 567 (Or. Ct. App. 2013). “See ORS 737.318(3)(d) (providing for administrative appeal process for premium audit billings).”
— Or. Rev. Stat. § 737.318(4) — 1 case
Boone v. Wright, 822 P.2d 719 (Or. Ct. App. 1991). “505, the provisions of this section apply to all premium audit disputes between employers and insurers in existence on July 20, 1987, regardless of the policy year involved or the date of the final audit billing." The legislature did not enact that kind of provision here.”
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