As previously reported, the Oregon House and Senate each separately passed House Bill 3242 – UCSPA Bad Faith bill. In an unexpected turn of events, the Senate version of the previously approved House Bad Faith bill got held up in Joint Committee. In Joint Committee, the conferees voted to remove from the bill an exemption added by the Senate for medical malpractice insurance claims. The Joint Committee decision to remove the medical malpractice exemption surprisingly did not receive the votes needed for (re)passage in the Senate, and the bill died in the waning minutes of the session. After much deliberation and consternation, the Oregon Legislative session adjourned and HB 3242 – UCSPA Bad Faith bill unexpectedly died on the legislature floor, never getting to the Governor.
So once again Oregon has held off statutory bad faith …. Stay tuned for the Oregon Supreme Court’s decision in Moody.
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