Oregon’s Division of Financial Regulation Issues Bulletin to STD Insurers Related to Paid Leave Oregon Benefits

November 19, 2024

On October 10, 2024, Oregon’s Division of Financial Regulation (DFR) issued Bulletin 2024-8, which provides guidance to insurers who reduce short-term disability (STD) benefits because of benefits received through Paid Leave Oregon.

Generally, the bulletin provides that if the terms of an STD policy allow the insurer to reduce STD benefits due in any part to the availability of Paid Leave Oregon benefits, all plan documents must clearly and conspicuously inform consumers that:

1. They might be eligible for leave benefits under the Paid Leave Oregon program.
2. The insurer might require the consumer to apply for Paid Leave Oregon and, if so, the extent to which the person must pursue their Paid Leave Oregon application.
3. The extent to which STD benefits will be reduced on account of Paid Leave Oregon benefits received by the worker.

Furthermore, effective December 1, 2024, insurers must submit updated plan documents for DFR approval within 18 months of this bulletin’s date or at renewal, whichever is earlier, or, alternatively, and if appropriate, insurers may file an endorsement notice included with their renewal.

Bulletin 2024-8