The State of Oregon was recently hit with winter storms that caused major flooding, landslides, and mudslides in several counties. President Bush has declared five Oregon counties, Lincoln, Tillamook, Clatsop, Columbia and Yamhill, a federal disaster, prompting the Oregon Department of Consumer and Business Services to issue an emergency order ("Order"). The Order prohibits insurers from canceling or non-renewing policies in these areas until January 8, 2008 due to the possibility that mail service has been disrupted and residents may not receive cancellation notices or may not be able to send insurance premiums in a timely manner.
The Order also instructs insurers to withdraw any cancellation or non-renewal notices issued or mailed the week prior to December 3, 2007, and insurers may not cancel or non-renew policies based on claims received in connection with the recent storms. The Order applies to personal lines of insurance, such as homeowners, auto, health, and personal property.