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Oregon Revised Statutes

Or. Rev. Stat. § 746.230 (2026)

Unfair claim settlement practices

✓ current as of May 2026
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      746.230 Unfair claim settlement practices. (1) An insurer or other person may not commit or perform any of the following unfair claim settlement practices:

      (a) Misrepresenting facts or policy provisions in settling claims;

      (b) Failing to acknowledge and act promptly upon communications relating to claims;

      (c) Failing to adopt and implement reasonable standards for the prompt investigation of claims;

      (d) Refusing to pay claims without conducting a reasonable investigation based on all available information;

      (e) Failing to affirm or deny coverage of claims within a reasonable time after completed proof of loss statements have been submitted;

      (f) Not attempting, in good faith, to promptly and equitably settle claims in which liability has become reasonably clear;

      (g) Compelling claimants to initiate litigation to recover amounts due by offering substantially less than amounts ultimately recovered in actions brought by such claimants;

      (h) Attempting to settle claims for less than the amount to which a reasonable person would believe a reasonable person was entitled after referring to written or printed advertising material accompanying or made part of an application;

      (i) Attempting to settle claims on the basis of an application altered without notice to or consent of the applicant;

      (j) Failing, after payment of a claim, to inform insureds or beneficiaries, upon request by them, of the coverage under which payment has been made;

      (k) Delaying investigation or payment of claims by requiring a claimant or the claimant’s physician, naturopathic physician, physician associate or nurse practitioner to submit a preliminary claim report and then requiring subsequent submission of loss forms when both require essentially the same information;

      (L) Failing to promptly settle claims under one coverage of a policy where liability has become reasonably clear in order to influence settlements under other coverages of the policy;

      (m) Failing to promptly provide the proper explanation of the basis relied on in the insurance policy in relation to the facts or applicable law for the denial of a claim; or

      (n) Any of the practices described in ORS 746.233.

      (2) No insurer shall refuse, without just cause, to pay or settle claims arising under coverages provided by its policies with such frequency as to indicate a general business practice in this state, which general business practice is evidenced by:

      (a) A substantial increase in the number of complaints against the insurer received by the Department of Consumer and Business Services;

      (b) A substantial increase in the number of lawsuits filed against the insurer or its insureds by claimants; or

      (c) Other relevant evidence. [1967 c.359 §588a; 1973 c.281 §1; 1989 c.594 §1; 2014 c.45 §79; 2015 c.59 §6; 2017 c.356 §101; 2019 c.284 §10; 2024 c.73 §160]

Notes of Decisions
Cited in 56 cases (31 in the last 5 years), 1978–2026 · leading case: Moody v. Oregon Cmty. Credit Union, 505 P.3d 1047 (Or. Ct. App. 2022).
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Moody v. Oregon Cmty. Credit Union, 505 P.3d 1047 (Or. Ct. App. 2022). · cites it 27× “Plaintiff alleged that defendants vio- lated ORS 746.230 which prohibits certain conduct in the settlement of insurance claims.”
Farris v. United States Fid. & Guar. Co., 587 P.2d 1015 (Or. 1978). · cites it 14× “ORS 746.230, as part of the Insurance Code, enumerates unfair trade practices by insurance companies.”
Foraker v. USAA Cas. Ins. Co., 345 F. Supp. 3d 1308 (D. Or. 2018). · cites it 17× “§ 746.230(1) requires Oregon insurers to obey all of the statute's claims settlement prohibitions to carry out their common-law obligation of good faith and fair dealing that exists in every contract.”
Ivanov v. Farmers Ins., 185 P.3d 417 (Or. 2008). · cites it 8× “In that regard, ORS 746.230(1) provides, in part: "No insurer or other person shall commit or perform any of the following unfair claim settlement practices: "* * * * * "(d) Refusing to pay claims without conducting a reasonable investigation based on all available information [.”
Bollam v. Fireman's Fund Ins., 709 P.2d 1095 (Or. Ct. App. 1985). · cites it 14× “We do not suggest that a defendant's good faith compliance with ORS 746.230 is not enough. We assume it is enough.”
Goddard v. Farmers Ins., 179 P.3d 645 (Or. 2008). · cites it 3× “See ORS 746.230 (providing that no insurer “shall commit or perform” an “unfair claim settlement practice],” including “[n]ot attempting, in good faith, to promptly and equitably settle claims in which liability has become reasonably clear”).”
Rice v. State Farm Mut. Auto. Ins. Co., 476 P.3d 983 (Or. Ct. App. 2020). · cites it 6× “230(g) in plaintiff’s complaint is in support of her contract claim for breach of the implied covenant of good faith and fair dealing.”
Strawn v. Farmers Ins., 209 P.3d 357 (Or. Ct. App. 2009). · cites it 2× “The court then identified a related statute that prohibits insurers from denying payment of claims without first conducting a “reasonable investigation” of those claims: “In that regard, ORS 746.230(1) provides, in part: “ ‘No insurer or other person shall commit or perform any…”
Top Serv. Body Shop, Inc. v. Allstate Ins., 582 P.2d 1365 (Or. 1978). “608(1)(h), which makes it an unlawful trade practice to disparage the goods, services, property or business of another by false or misleading representations of fact, and ORS 746.230(1) which deals with unfair insurance claim settlement practices.”
Rugemer v. Rhea, 957 P.2d 184 (Or. Ct. App. 1998). · cites it 3× “ORS 746.230(1)©. The parties agreed to bifurcate the trial, with the first stage determining the validity of the release and the second stage, if necessary, determining damages.”
Employers' Fire Ins. v. Love It Ice Cream Co., 670 P.2d 160 (Or. Ct. App. 1983). “” *790 In its bad faith counterclaim, defendant also alleged that plaintiff “willfully and maliciously breached” its “legal and statutory duty to settle defendant’s claim promptly and in good faith.”
Harris v. Safeco Ins. Co. of Illinois (D. Or. 2025). · cites it 70× “Safeco first argues that because it complied with Oregon Administrative Rule (“OAR”) 836-080-0230, as a matter of law it could not have violated ORS § 746.230(1). As explained below, the Court rejects that argument.”
Show all 56 citing cases →
— Or. Rev. Stat. § 746.230(1) — 23 cases
Moody v. Oregon Cmty. Credit Union, 505 P.3d 1047 (Or. Ct. App. 2022). “Plaintiff alleged that defendants vio- lated ORS 746.230 which prohibits certain conduct in the settlement of insurance claims.”
Foraker v. USAA Cas. Ins. Co., 345 F. Supp. 3d 1308 (D. Or. 2018). “§ 746.230(1) requires Oregon insurers to obey all of the statute's claims settlement prohibitions to carry out their common-law obligation of good faith and fair dealing that exists in every contract.”
Farris v. United States Fid. & Guar. Co., 587 P.2d 1015 (Or. 1978). “ORS 746.230, as part of the Insurance Code, enumerates unfair trade practices by insurance companies.”
Ivanov v. Farmers Ins., 185 P.3d 417 (Or. 2008). “In that regard, ORS 746.230(1) provides, in part: "No insurer or other person shall commit or perform any of the following unfair claim settlement practices: "* * * * * "(d) Refusing to pay claims without conducting a reasonable investigation based on all available information [.”
Top Serv. Body Shop, Inc. v. Allstate Ins., 582 P.2d 1365 (Or. 1978). “608(1)(h), which makes it an unlawful trade practice to disparage the goods, services, property or business of another by false or misleading representations of fact, and ORS 746.230(1) which deals with unfair insurance claim settlement practices.”
— Or. Rev. Stat. § 746.230(1)(4) — 1 case
Mohammad v. Liberty Ins. Corp. (D. Or. 2025).
— Or. Rev. Stat. § 746.230(1)(a) — 3 cases
Harris v. Safeco Ins. Co. of Illinois (D. Or. 2025). “Safeco first argues that because it complied with Oregon Administrative Rule (“OAR”) 836-080-0230, as a matter of law it could not have violated ORS § 746.230(1). As explained below, the Court rejects that argument.”
Hayter v. Travelers Indem. Co. (D. Or. 2025).
Lute v. Stewart Title Co. (D. Or. 2025).
— Or. Rev. Stat. § 746.230(1)(b) — 1 case
Harris v. Safeco Ins. Co. of Illinois (D. Or. 2025). “Safeco first argues that because it complied with Oregon Administrative Rule (“OAR”) 836-080-0230, as a matter of law it could not have violated ORS § 746.230(1). As explained below, the Court rejects that argument.”
— Or. Rev. Stat. § 746.230(1)(c) — 2 cases
Harris v. Safeco Ins. Co. of Illinois (D. Or. 2025). “Safeco first argues that because it complied with Oregon Administrative Rule (“OAR”) 836-080-0230, as a matter of law it could not have violated ORS § 746.230(1). As explained below, the Court rejects that argument.”
C.V. (D. Or. 2026).
— Or. Rev. Stat. § 746.230(1)(d) — 8 cases
Foraker v. USAA Cas. Ins. Co., 345 F. Supp. 3d 1308 (D. Or. 2018). “§ 746.230(1) requires Oregon insurers to obey all of the statute's claims settlement prohibitions to carry out their common-law obligation of good faith and fair dealing that exists in every contract.”
Ivanov v. Farmers Ins., 185 P.3d 417 (Or. 2008). “In that regard, ORS 746.230(1) provides, in part: "No insurer or other person shall commit or perform any of the following unfair claim settlement practices: "* * * * * "(d) Refusing to pay claims without conducting a reasonable investigation based on all available information [.”
Strawn v. Farmers Ins., 209 P.3d 357 (Or. Ct. App. 2009). “The court then identified a related statute that prohibits insurers from denying payment of claims without first conducting a “reasonable investigation” of those claims: “In that regard, ORS 746.230(1) provides, in part: “ ‘No insurer or other person shall commit or perform any…”
Hayter v. Travelers Indem. Co. (D. Or. 2025).
Harris v. Safeco Ins. Co. of Illinois (D. Or. 2025). “Safeco first argues that because it complied with Oregon Administrative Rule (“OAR”) 836-080-0230, as a matter of law it could not have violated ORS § 746.230(1). As explained below, the Court rejects that argument.”
— Or. Rev. Stat. § 746.230(1)(e) — 2 cases
Harris v. Safeco Ins. Co. of Illinois (D. Or. 2025). “Safeco first argues that because it complied with Oregon Administrative Rule (“OAR”) 836-080-0230, as a matter of law it could not have violated ORS § 746.230(1). As explained below, the Court rejects that argument.”
Hayter v. Travelers Indem. Co. (D. Or. 2025).
— Or. Rev. Stat. § 746.230(1)(f) — 7 cases
Bollam v. Fireman's Fund Ins., 709 P.2d 1095 (Or. Ct. App. 1985). “We do not suggest that a defendant's good faith compliance with ORS 746.230 is not enough. We assume it is enough.”
Farris v. United States Fid. & Guar. Co., 587 P.2d 1015 (Or. 1978). “ORS 746.230, as part of the Insurance Code, enumerates unfair trade practices by insurance companies.”
Employers' Fire Ins. v. Love It Ice Cream Co., 670 P.2d 160 (Or. Ct. App. 1983). “” *790 In its bad faith counterclaim, defendant also alleged that plaintiff “willfully and maliciously breached” its “legal and statutory duty to settle defendant’s claim promptly and in good faith.”
Goddard v. Farmers Ins. Co. of Oregon, 120 P.3d 1260 (Or. Ct. App. 2005).
Hayter v. Travelers Indem. Co. (D. Or. 2025).
— Or. Rev. Stat. § 746.230(1)(g) — 7 cases
Foraker v. USAA Cas. Ins. Co., 345 F. Supp. 3d 1308 (D. Or. 2018). “§ 746.230(1) requires Oregon insurers to obey all of the statute's claims settlement prohibitions to carry out their common-law obligation of good faith and fair dealing that exists in every contract.”
Rice v. State Farm Mut. Auto. Ins. Co., 476 P.3d 983 (Or. Ct. App. 2020). “230(g) in plaintiff’s complaint is in support of her contract claim for breach of the implied covenant of good faith and fair dealing.”
Harris v. Safeco Ins. Co. of Illinois (D. Or. 2025). “Safeco first argues that because it complied with Oregon Administrative Rule (“OAR”) 836-080-0230, as a matter of law it could not have violated ORS § 746.230(1). As explained below, the Court rejects that argument.”
Foraker v. USAA Cas. Ins. Co. (D. Or. 2020).
Harris v. Safeco Ins. Co. of Illinois (D. Or. 2025).
— Or. Rev. Stat. § 746.230(1)(h) — 1 case
Harris v. Safeco Ins. Co. of Illinois (D. Or. 2025). “Safeco first argues that because it complied with Oregon Administrative Rule (“OAR”) 836-080-0230, as a matter of law it could not have violated ORS § 746.230(1). As explained below, the Court rejects that argument.”
— Or. Rev. Stat. § 746.230(1)(m) — 1 case
Harris v. Safeco Ins. Co. of Illinois (D. Or. 2025). “Safeco first argues that because it complied with Oregon Administrative Rule (“OAR”) 836-080-0230, as a matter of law it could not have violated ORS § 746.230(1). As explained below, the Court rejects that argument.”
— Or. Rev. Stat. § 746.230(g) — 3 cases
Rice v. State Farm Mut. Auto. Ins. Co., 476 P.3d 983 (Or. Ct. App. 2020). “230(g) in plaintiff’s complaint is in support of her contract claim for breach of the implied covenant of good faith and fair dealing.”
Harris v. Safeco Ins. Co. of Illinois (D. Or. 2025).
Harris v. Safeco Ins. Co. of Illinois (D. Or. 2025). “Safeco first argues that because it complied with Oregon Administrative Rule (“OAR”) 836-080-0230, as a matter of law it could not have violated ORS § 746.230(1). As explained below, the Court rejects that argument.”
— Or. Rev. Stat. § 746.230(l)(d) — 3 cases
Ivanov v. Farmers Ins., 185 P.3d 417 (Or. 2008). “In that regard, ORS 746.230(1) provides, in part: "No insurer or other person shall commit or perform any of the following unfair claim settlement practices: "* * * * * "(d) Refusing to pay claims without conducting a reasonable investigation based on all available information [.”
McBride v. State Farm Mut. Auto. Ins. Co., 386 P.3d 679 (Or. Ct. App. 2016).
McGovern Physical Therapy Assocs., LLC v. Metro. Prop. & Cas. Ins., 802 F. Supp. 2d 306 (D. Mass. 2011).
— Or. Rev. Stat. § 746.230(l)(f) — 5 cases
Farris v. United States Fid. & Guar. Co., 587 P.2d 1015 (Or. 1978). “ORS 746.230, as part of the Insurance Code, enumerates unfair trade practices by insurance companies.”
Goddard v. Farmers Ins., 179 P.3d 645 (Or. 2008). “See ORS 746.230 (providing that no insurer “shall commit or perform” an “unfair claim settlement practice],” including “[n]ot attempting, in good faith, to promptly and equitably settle claims in which liability has become reasonably clear”).”
Alexander Mfg., Inc. v. Illinois Union Ins., 666 F. Supp. 2d 1185 (D. Or. 2009).
Rugemer v. Rhea, 957 P.2d 184 (Or. Ct. App. 1998). “ORS 746.230(1)©. The parties agreed to bifurcate the trial, with the first stage determining the validity of the release and the second stage, if necessary, determining damages.”
Goddard v. Farmers Ins. Co. of Oregon, 22 P.3d 1224 (Or. Ct. App. 2001).
— Or. Rev. Stat. § 746.230(l)(m) — 1 case
Goddard v. Farmers Ins. Co. of Oregon, 22 P.3d 1224 (Or. Ct. App. 2001).
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