# OR DFR Bulletin 2001-01: OR DFR Bulletin 2001-01: OAR 836-080-0240 – Standards for Prompt & Fair Settlement – Automobile Insurance > Oregon · Agency guidance · In force URL: https://www.frixlaw.com/law-library/statutes/OR_INS_B_2001_01 ## Section - **Citation:** OR DFR Bulletin 2001-01 - **Heading:** OR DFR Bulletin 2001-01: OAR 836-080-0240 – Standards for Prompt & Fair Settlement – Automobile Insurance - **Jurisdiction:** Oregon - **Kind:** Agency guidance - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Oregon Division of Financial Regulation Insurance Bulletins / OR DFR Bulletin 2001-01: OAR 836-080-0240 – Standards for Prompt & Fair Settlement – Automobile Insurance ## Text INSURANCE DIVISION BULLETIN INS 2001-1 DATE: March 12, 2001 TO: Property/Casualty Insurers and Other Interested Parties SUBJECT: Oregon Administrative Rule 836-080-0240 Standards for Prompt & Fair Settlement-Automobile Insurance The Insurance Division has received a number of questions regarding Oregon Administrative Rule (OAR) 836-080-0240 and the manner in which insurers have interpreted and applied this rule. The rule governs the settlement of total losses of motor vehicles. The purpose of this bulletin is to clarify the intent of this Administrative Rule. 1. Responsibility for Data. Under OAR 836-080-0240(3) insurers are responsible for the determination of value of total loss vehicles. 2. Cash Settlement; Application of Standards in the Rule. Comparability Standards. OAR 836-080-0240(3)(a)(B) requires an insurer to apply "appropriate standards for comparability" when relying on values of currently available vehicles for the purpose of a cash settlement. These standards are the same comparability standards described in OAR 836- 080-0240(2), except that an insurer may make adjustments for condition, options, and mileage. Any adjustments made must be explained and verifiable. 3. Cash Settlement; Valuation Report. Cash Settlement; Required Information. OAR 836-080-0240(3) requires an insurer, who makes a cash settlement, to furnish to the insured the information used in determining the amount of the cash settlement. This requirement is useful and meaningful to an insured only if the insured knows that, upon request by the insured, the information is available and must be furnished. It is the intent of this rule that an insurer must give written notice to an insured or claimant that the information is available upon request. This notice must be given at the time of the initial settlement offer, and documented in the claim file. Included Information ul to an insured only if the insured knows that, upon request by the insured, the information is available and must be furnished. It is the intent of this rule that an insurer must give written notice to an insured or claimant that the information is available upon request. This notice must be given at the time of the initial settlement offer, and documented in the claim file. Included Information. The valuation report produced pursuant to OAR 836-080-0240(3)(a) must contain only the information that the insurer used to arrive at the fair market value of the automobile. Any supplemental or ancillary information must be clearly identified with a separate heading. Condition Report Required. It is the intent of OAR 836-080-0240(3)(a) that each report include the information collected during the initial inspection that sets forth the condition and equipment of the loss vehicle. Department of Consumer and Business Services Insurance Division 350 Winter St. NE, Room 440 PO Box 14480 Salem, OR 97301-0405 (503) 947-7980 FAX (503) 378-4351 TTY (503) 947-7280 www.oregoninsurance.org C:\Program Files\Adobe\Acrobat 4.0\Acrobat\plug_ins\OpenAll\Transform\temp\bulletin_2001-01.doc 2 4. Recourse. OAR 836-080-0240(4) offers recourse to first-party claimants. It is the intent of this rule that this option be clearly explained to the insured in writing, and documented in the claim file, at the time of settlement or settlement offer. 5. Effective Date of Bulletin. This bulletin is effective April 1, 2001. This bulletin is dated the 13th day of March 2001 at Salem, Oregon. _______(signed)_______ Joel Ario Insurance Administrator ## Nearby sections - [OR DFR Bulletin 1970-04 OR DFR Bulletin 1970-04: Reinsurance of Title Insurance](https://www.frixlaw.com/law-library/statutes/OR_INS_B_1970_04.md) - [OR DFR Bulletin 1992-03 OR DFR Bulletin 1992-03: Marketing Practices for Paying Commissions](https://www.frixlaw.com/law-library/statutes/OR_INS_B_1992_03.md) - [OR DFR Bulletin 1994-01 OR DFR Bulletin 1994-01: Blanket Insurance](https://www.frixlaw.com/law-library/statutes/OR_INS_B_1994_01.md) - [OR DFR Bulletin 1994-02 OR DFR Bulletin 1994-02: Title Insurance May Not Use Schedule B to Add Coverage](https://www.frixlaw.com/law-library/statutes/OR_INS_B_1994_02.md) - [OR DFR Bulletin 1994-04 OR DFR Bulletin 1994-04: Creditor's Rights Coverage](https://www.frixlaw.com/law-library/statutes/OR_INS_B_1994_04.md) - [OR DFR Bulletin 1996-02 OR DFR Bulletin 1996-02: Application of the Insurance Code to Health Benefit Arrangements that Include Provider Risk Sharing](https://www.frixlaw.com/law-library/statutes/OR_INS_B_1996_02.md) - [OR DFR Bulletin 1996-04 OR DFR Bulletin 1996-04: Contents Corporate Minutes](https://www.frixlaw.com/law-library/statutes/OR_INS_B_1996_04.md) - [OR DFR Bulletin 1998-03 OR DFR Bulletin 1998-03: Filing Requirements for Health Insurance Policy Forms, PER ORS 742.003; Applicability of Negotiated Policy Exception](https://www.frixlaw.com/law-library/statutes/OR_INS_B_1998_03.md) - [OR DFR Bulletin 2001-01 OR DFR Bulletin 2001-01: OAR 836-080-0240 – Standards for Prompt & Fair Settlement – Automobile Insurance](https://www.frixlaw.com/law-library/statutes/OR_INS_B_2001_01.md) - [OR DFR Bulletin 2001-09 OR DFR Bulletin 2001-09: Withdrawal of Bulletin INS 95-5 and INS 96-1](https://www.frixlaw.com/law-library/statutes/OR_INS_B_2001_09.md) - [OR DFR Bulletin 2002-01 OR DFR Bulletin 2002-01: No Policy Changes Required by 2001 Amendment to ORS 743.186(1)(A)](https://www.frixlaw.com/law-library/statutes/OR_INS_B_2002_01.md) - [OR DFR Bulletin 2002-03 OR DFR Bulletin 2002-03: USA Patriot Act of 2001](https://www.frixlaw.com/law-library/statutes/OR_INS_B_2002_03.md) - [OR DFR Bulletin 2003-02 OR DFR Bulletin 2003-02: Reducing Regulatory Burden](https://www.frixlaw.com/law-library/statutes/OR_INS_B_2003_02.md) - [OR DFR Bulletin 2003-05 OR DFR Bulletin 2003-05: Application of NAIC Manuals and Other Publications](https://www.frixlaw.com/law-library/statutes/OR_INS_B_2003_05.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/OR_INS_B_2001_01. Check the current official text before relying on it. Not legal advice.