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Oregon to allow payment of insurance claims via ATM card

The rule requires that the recipient be able to make an initial withdrawal of the entire amount due without delay or cost.

September 4, 2014

In a Sept. 1 bulletin cited in a Stateside Alert, Oregon Secretary Of State Kate Brown announced a new rule that allows an insurer, with the consent of the claimant, to pay claims by means of a prepaid card, direct deposit system, ATM or debit card, or other means of electronic transfer.

As described in Electronic Payment of Claim Proceeds (836-080-0200):

(1) ... The consent of the recipient of claim proceeds must be obtained prior to initiating electronic payments and may be written or verbal. The insurer must provide the recipient a written confirmation when consent is obtained verbally. Proof of mailing will act as proof of providing written notice. The recipient may discontinue receiving electronic payments by notifying the insurer in writing.

(2) The recipient of claim proceeds must receive a copy of the cardholder agreement clearly outlining the terms and conditions under which a prepaid card, an automated teller machine card or debit card has been issued prior to or at the time the initial electronic payment is made.

(3) The instrument of payment must be negotiable and payable to the recipient for the full amount due, without cost to the recipient. The recipient must be able to make an initial withdrawal of the entire amount due without delay or cost to the recipient.

Regular Stateside Alerts are provided as a free member service by the ATM Industry Association.

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ATM Industry Association (ATMIA)

The ATM Industry Association, founded in 1997, is a global non-profit trade association with over 10,500 members in 65 countries. The membership base covers the full range of this worldwide industry comprising over 2.2 million installed ATMs.

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