TAPE/#

Speaker

Comments

TAPE 1, A

003

Chair Metsger

Calls the meeting to order at 1:02 PM.  Moves the organizational meeting to the end of the schedule to allow Cory Streisinger extra time to testify.  Makes opening comments, stating that this committee will see a lot of insurance related legislation.

DEPARTMENT OF CONSUMER AND BUSINESS SERVICES INSURANCE DIVISION - OVERVIEW

015

Cory Streisinger

Director, Department of Consumer and Business Services.  Begins overview of department and functions.  Presents written testimony to the committee (EXHIBIT A).  Hands out a fact sheet on medical malpractice insurance (EXHIBIT B).  Distributes a pamphlet on protecting the insurance-buying public (EXHIBIT C).  Covers the major details of her written testimony, specifically previous legislation and issues touching on insurance liability.  Talks about some of the current legislative bills and proposals.

195

Chair Metsger

Asks about adult foster care and the problem of the need for care and the growing cost factor.  Mentions a worker’s compensation claim by an adult foster care worker, which was not covered by his employer.

220

Streisinger

Responds it is a difficult balance to achieve.  Provides greater details of the incident described, and the findings that adult foster care would become unaffordable if worker’s compensation was required for employees.  Details the problem of risk aversion by insurance companies regarding to high risk industries. 

270

Chair Metsger

Thanks her for her assistance and testimony.

285

Joel Ario

Administrator, Department of Consumer and Business Services Insurance Division.  Expands upon his portion of the previous written testimony (EXHIBIT A).  Testifies about some of the issues of insurance funding in hard market years.  Details what they felt might be a solution, and the reason it didn’t work with the insurance companies refusing to cover those areas.  Points out the proactive focus in trying to reach a solution.  Begins discussion about fair treatment of consumers and consumer advocacy unit.  Lists the high volume of complaints and finding the most important issues. 

330

Provides background on previous legislation relating to Oregon’s consumer protection laws.  Outlines approaches and other steps being taken.  Feels the legislature’s decisions should be clear, either to allow something or not allow something, not something in between.   

TAPE 2, A

005

Ario

Provides additional testimony about consumer advocacy.   Enters into greater detail on other issues facing the insurance division.  Expands upon bills that will likely come before the committee this session. 

080

Sen. Deckert

Asks about mortgage insurance.  Wonders about insurance requirements for a mortgage being a barrier to home ownership.

095

Ario

Replies it is a problem and a burden.  Points out it would probably not be an insurance issue, but a banking issue.  States he will get back to him.

105

Sen. Deckert

Wonders that people with low risk records might be given a lower rate.

110

Ario

Points out his colleague in banking could answer that for him.

115

Sen. Deckert

Hopes to get feedback on the issue.

120

Chair Metsger

States the banking and finance are issues to be addressed in the committee.  Feels it would be an important discussion to have.

125

Sen. Monnes Anderson

Wonders if he has met with insurance officials regularly and if they were involved in the legislation coming before the committee.

130

Ario

Replies that they are very involved and active in the process.  Mentions feedback from insurance companies thus far on specific bills.  Discusses legislation regarding home owners.

145

Sen. Monnes Anderson

Asks for clarification regarding the home owners issue, wonders if it addresses adult foster care.

150

Ario

Clarifies that the proposed legislation would create a consumer bill of right around home owner issues.  Points out he hasn’t seen any opposition to their proposals so far.

155

Chair Metsger

States that he would like to have all members present when they approve the rules of the committee.  Outlines what they will be covering in the next few meetings, including the sale of Portland General Electric.  Details future meetings, including a road meeting in Forest Grove.  Adjourns the meeting at 1:47 PM.