Chapter 175 Oregon Laws 2003

AN ACT

SB 247

Relating to financial responsibility; creating new provisions; amending ORS 558.050, 682.109, 742.504, 742.508, 806.040, 806.060, 806.070, 806.210, 806.240, 806.280, 806.300, 809.470 and 822.510; and repealing ORS 806.090, 806.100, 806.115 and 806.260.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 806.090, 806.100, 806.115 and 806.260 are repealed.

SECTION 2. ORS 742.504 is amended to read:

742.504. Every policy required to provide the coverage specified in ORS 742.502 shall provide uninsured motorist coverage which in each instance is no less favorable in any respect to the insured or the beneficiary than if the following provisions were set forth in the policy. However, nothing contained in this section shall require the insurer to reproduce in such policy the particular language of any of the following provisions:

(1)(a) The insurer will pay all sums which the insured, the heirs or the legal representative of the insured shall be legally entitled to recover as general and special damages from the owner or operator of an uninsured vehicle because of bodily injury sustained by the insured caused by accident and arising out of the ownership, maintenance or use of such uninsured vehicle. Determination as to whether the insured, the insured’s heirs or the insured’s legal representative is legally entitled to recover such damages, and if so, the amount thereof, shall be made by agreement between the insured and the insurer, or, in the event of disagreement, may be determined by arbitration as provided in subsection (10) of this section.

(b) No judgment against any person or organization alleged to be legally responsible for bodily injury, except for proceedings instituted against the insurer as provided in this policy, shall be conclusive, as between the insured and the insurer, on the issues of liability of such person or organization or of the amount of damages to which the insured is legally entitled.

(2) As used in this policy:

(a) “Insured,” when unqualified, means when applied to uninsured motorist coverage:

(A) The named insured as stated in the policy and any person designated as named insured in the schedule and, while residents of the same household, the spouse of any such named insured and relatives of either; provided, neither such relative nor spouse is the owner of a vehicle not described in the policy; and provided further, if the named insured as stated in the policy is other than an individual or husband and wife who are residents of the same household, the named insured shall be only a person so designated in the schedule;

(B) Any child residing in the household of the named insured if the insured has performed the duties of a parent to the child by rearing the child as the insured’s own although the child is not related to the insured by blood, marriage or adoption; and

(C) Any other person while occupying an insured vehicle provided the actual use thereof is with the permission of the named insured.

(b) “Insured vehicle,” except as provided in paragraph (c) of this provision, means:

(A) The vehicle described in the policy or a newly acquired or substitute vehicle, as each of those terms is defined in the public liability coverage of the policy, insured under the public liability provisions of the policy; or

(B) A nonowned vehicle operated by the named insured or spouse if a resident of the same household; provided the actual use thereof is with the permission of the owner of such vehicle and such vehicle is not owned by nor furnished for the regular or frequent use of the insured or any member of the same household.

(d) “Uninsured vehicle,” except as provided in paragraph (e) of this provision, means:

(A) A vehicle with respect to the ownership, maintenance or use of which there is no collectible automobile bodily injury liability insurance [or bond], in at least the amounts or limits prescribed for bodily injury or death under ORS 806.070 applicable at the time of the accident with respect to any person or organization legally responsible for the use of such vehicle, or with respect to which there is such collectible bodily injury liability insurance [or bond] applicable at the time of the accident but the insurance company writing the same denies coverage thereunder or, within two years of the date of the accident, such company writing the same becomes voluntarily or involuntarily declared bankrupt or for which a receiver is appointed or becomes insolvent. It shall be a disputable presumption that a vehicle is uninsured in the event the insured and the insurer, after reasonable efforts, fail to discover within 90 days from the date of the accident, the existence of a valid and collectible automobile bodily injury liability insurance [or bond] applicable at the time of the accident.

(B) A hit-and-run vehicle as defined in paragraph (f) of this provision.

(e) “Uninsured vehicle” does not include:

(A) An insured vehicle;

(B) A vehicle which is owned or operated by a self-insurer within the meaning of any motor vehicle financial responsibility law, motor carrier law or any similar law;

(C) A vehicle which is owned by the United States of America, Canada, a state, a political subdivision of any such government or an agency of any of the foregoing;

(D) A land motor vehicle or trailer, if operated on rails or crawler-treads or while located for use as a residence or premises and not as a vehicle;

(E) A farm-type tractor or equipment designed for use principally off public roads, except while actually upon public roads; or

(F) A vehicle owned by or furnished for the regular or frequent use of the insured or any member of the household of the insured.

(f) “Hit-and-run vehicle” means a vehicle which causes bodily injury to an insured arising out of physical contact of such vehicle with the insured or with a vehicle which the insured is occupying at the time of the accident, provided:

(A) There cannot be ascertained the identity of either the operator or the owner of such hit-and-run vehicle;

(B) The insured or someone on behalf of the insured shall have reported the accident within 72 hours to a police, peace or judicial officer, to the Department of Transportation of the State of Oregon or to the equivalent department in the state where the accident occurred, and shall have filed with the insurer within 30 days thereafter a statement under oath that the insured or the legal representative of the insured has a cause or causes of action arising out of such accident for damages against a person or persons whose identity is unascertainable, and setting forth the facts in support thereof; and

(C) At the insurer’s request, the insured or the legal representative of the insured makes available for inspection the vehicle which the insured was occupying at the time of the accident.

(g) “Phantom vehicle” means a vehicle which causes bodily injury to an insured arising out of a motor vehicle accident which is caused by an automobile which has no physical contact with the insured or the vehicle which the insured is occupying at the time of the accident, provided:

(A) There cannot be ascertained the identity of either the operator or the owner of such phantom vehicle;

(B) The facts of such accident can be corroborated by competent evidence other than the testimony of the insured or any person having an uninsured motorist claim resulting from the accident; and

(C) The insured or someone on behalf of the insured shall have reported the accident within 72 hours to a police, peace or judicial officer, to the Department of Transportation of the State of Oregon or to the equivalent department in the state where the accident occurred, and shall have filed with the insurer within 30 days thereafter a statement under oath that the insured or the legal representative of the insured has a cause or causes of action arising out of such accident for damages against a person or persons whose identity is unascertainable, and setting forth the facts in support thereof.

(h) “Bodily injury” means bodily injury, sickness or disease, including death resulting therefrom.

(i) “Occupying” means in or upon or entering into or alighting from.

(j) “State” includes the District of Columbia, a territory or possession of the United States and a province of Canada.

(k) “Vehicle” means every device in, upon or by which any person or property is or may be transported or drawn upon a public highway, but does not include devices moved by human power or used exclusively upon stationary rails or tracks.

(3) This coverage applies only to accidents which occur on and after the effective date of the policy, during the policy period and within the United States of America, its territories or possessions, or Canada.

(4)(a) This coverage does not apply to bodily injury of an insured with respect to which such insured or the legal representative of the insured shall, without the written consent of the insurer, make any settlement with or prosecute to judgment any action against any person or organization who may be legally liable therefor.

(b) This coverage does not apply to bodily injury to an insured while occupying a vehicle (other than an insured vehicle) owned by, or furnished for the regular use of, the named insured or any relative resident in the same household, or through being struck by such a vehicle.

(c) This coverage does not apply so as to inure directly or indirectly to the benefit of any workers’ compensation carrier, any person or organization qualifying as a self-insurer under any workers’ compensation or disability benefits law or any similar law or the State Accident Insurance Fund Corporation.

(d) This coverage does not apply with respect to underinsured motorist benefits unless:

(A) The limits of liability under any bodily injury liability bonds or policies applicable at the time of the accident regarding the injured person have been exhausted by payment of judgments or settlements to the injured person or other injured persons;

(B) The described limits have been offered in settlement, the insurer has refused consent under paragraph (a) of this subsection and the insured protects the insurer’s right of subrogation to the claim against the tortfeasor;

(C) The insured gives credit to the insurer for the unrealized portion of the described liability limits as if the full limits had been received if less than the described limits have been offered in settlement, and the insurer has consented under paragraph (a) of this subsection; or

(D) The insured gives credit to the insurer for the unrealized portion of the described liability limits as if the full limits had been received if less than the described limits have been offered in settlement and, if the insurer has refused consent under paragraph (a) of this subsection, the insured protects the insurer’s right of subrogation to the claim against the tortfeasor.

(e) When seeking consent under paragraph (a) or (d) of this subsection, the insured shall allow the insurer a reasonable time in which to collect and evaluate information related to consent to the proposed offer of settlement. The insured shall provide promptly to the insurer any information that is reasonably requested by the insurer and that is within the custody and control of the insured. Consent will be presumed to be given if the insurer does not respond within a reasonable time. For purposes of this paragraph, a “reasonable time” is no more than 30 days from the insurer’s receipt of a written request for consent, unless the insured and the insurer agree otherwise.

(5)(a) As soon as practicable, the insured or other person making claim shall give to the insurer written proof of claim, under oath if required, including full particulars of the nature and extent of the injuries, treatment and other details entering into the determination of the amount payable hereunder. The insured and every other person making claim hereunder shall submit to examinations under oath by any person named by the insurer and subscribe the same, as often as may reasonably be required. Proof of claim shall be made upon forms furnished by the insurer unless the insurer shall have failed to furnish such forms within 15 days after receiving notice of claim.

(b) Upon reasonable request of and at the expense of the insurer, the injured person shall submit to physical examinations by physicians selected by the insurer and shall, upon each request from the insurer, execute authorization to enable the insurer to obtain medical reports and copies of records.

(6) If, before the insurer makes payment of loss hereunder, the insured or the legal representative of the insured shall institute any legal action for bodily injury against any person or organization legally responsible for the use of a vehicle involved in the accident, a copy of the summons and complaint or other process served in connection with such legal action shall be forwarded immediately to the insurer by the insured or the legal representative of the insured.

(7)(a) The limit of liability stated in the declarations as applicable to “each person” is the limit of the insurer’s liability for all damages because of bodily injury sustained by one person as the result of any one accident and, subject to the above provision respecting each person, the limit of liability stated in the declarations as applicable to “each accident” is the total limit of the company’s liability for all damages because of bodily injury sustained by two or more persons as the result of any one accident.

(b) Any payment made under this coverage to or for an insured shall be applied in reduction of any amount which the insured may be entitled to recover from any person who is an insured under the bodily injury liability coverage of this policy.

(c) Any amount payable under the terms of this coverage because of bodily injury sustained in an accident by a person who is an insured under this coverage shall be reduced by:

(A) All sums paid on account of such bodily injury by or on behalf of the owner or operator of the uninsured vehicle and by or on behalf of any other person or organization jointly or severally liable together with such owner or operator for such bodily injury including all sums paid under the bodily injury liability coverage of the policy; and

(B) The amount paid and the present value of all amounts payable on account of such bodily injury under any workers’ compensation law, disability benefits law or any similar law.

(d) Any amount payable under the terms of this coverage because of bodily injury sustained in an accident by a person who is an insured under this coverage shall be reduced by the credit given to the insurer pursuant to subsection (4)(d)(C) or (D) of this section.

(e) The amount payable under the terms of this coverage shall not be reduced by the amount of liability proceeds offered, described in subsection (4)(d)(B) or (D) of this section, that has not been paid to the injured person. If liability proceeds have been offered and not paid, the amount payable under the terms of the coverage shall include the amount of liability limits offered but not accepted due to the insurer’s refusal to consent. The insured shall cooperate so as to permit the insurer to proceed by subrogation or assignment to prosecute the claim against the uninsured motorist.

(8) No action shall lie against the insurer unless, as a condition precedent thereto, the insured or the legal representative of the insured has fully complied with all the terms of this policy.

(9)(a) Except as provided in paragraph (c) of this subsection, with respect to bodily injury to an insured while occupying a vehicle not owned by a named insured under this coverage, the insurance under this coverage shall apply only as excess insurance over any other insurance available to such occupant which is similar to this coverage, and this insurance shall then apply only in the amount by which the applicable limit of liability of this coverage exceeds the sum of the applicable limits of liability of all such other insurance.

(b) With respect to bodily injury to an insured while occupying or through being struck by an uninsured vehicle, if such insured is an insured under other insurance available to the insured which is similar to this coverage, then the damages shall be deemed not to exceed the higher of the applicable limits of liability of this insurance or such other insurance, and the insurer shall not be liable under this coverage for a greater proportion of the damages than the applicable limit of liability of this coverage bears to the sum of the applicable limits of liability of this insurance and such other insurance.

(c) With respect to bodily injury to an insured while occupying any motor vehicle used as a public or livery conveyance, the insurance under this coverage shall apply only as excess insurance over any other insurance available to the insured which is similar to this coverage, and this insurance shall then apply only in the amount by which the applicable limit of liability of this coverage exceeds the sum of the applicable limits of liability of all such other insurance.

(10) If any person making claim hereunder and the insurer do not agree that such person is legally entitled to recover damages from the owner or operator of an uninsured vehicle because of bodily injury to the insured, or do not agree as to the amount of payment which may be owing under this coverage, then, in the event the insured and the insurer elect by mutual agreement at the time of the dispute to settle the matter by arbitration, the arbitration shall take place under the arbitration laws of the State of Oregon or, if the parties agree, according to any other procedure. Any judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof provided, however, the costs to the insured of the arbitration proceeding shall not exceed $100 and that all other costs of arbitration shall be borne by the insurer. “Costs” as used in this provision shall not include attorney fees or expenses incurred in the production of evidence or witnesses or the making of transcripts of the arbitration proceedings. Such person and the insurer each agree to consider themselves bound and to be bound by any award made by the arbitrators pursuant to this coverage in the event of such election. At the election of the insured, such arbitration shall be held:

(a) In the county and state of residence of the insured;

(b) In the county and state where the insured’s cause of action against the uninsured motorist arose; or

(11) In the event of payment to any person under this coverage:

(a) The insurer shall be entitled to the extent of such payment to the proceeds of any settlement or judgment that may result from the exercise of any rights of recovery of such person against any uninsured motorist legally responsible for the bodily injury because of which such payment is made;

(b) Such person shall hold in trust for the benefit of the insurer all rights of recovery which the person shall have against such other uninsured person or organization because of the damages which are the subject of claim made under this coverage, but only to the extent that such claim is made or paid herein;

(c) If the insured is injured by the joint or concurrent act or acts of two or more persons, one or more of whom is uninsured, the insured shall have the election to receive from the insurer any payment to which the insured would be entitled under this coverage by reason of the act or acts of the uninsured motorist, or the insured may, with the written consent of the insurer, proceed with legal action against any or all persons claimed to be liable to the insured for such injuries. If the insured elects to receive payment from the insurer under this coverage, then the insured shall hold in trust for the benefit of the insurer all rights of recovery the insured shall have against any other person, firm or organization because of the damages which are the subject of claim made under this coverage, but only to the extent of the actual payment made by the insurer;

(d) Such person shall do whatever is proper to secure and shall do nothing after loss to prejudice such rights;

(e) If requested in writing by the insurer, such person shall take, through any representative not in conflict in interest with such person, designated by the insurer, such action as may be necessary or appropriate to recover such payment as damages from such other uninsured person or organization, such action to be taken in the name of such person, but only to the extent of the payment made hereunder. In the event of a recovery, the insurer shall be reimbursed out of such recovery for expenses, costs and attorney fees incurred by it in connection therewith; and

(f) Such person shall execute and deliver to the insurer such instruments and papers as may be appropriate to secure the rights and obligations of such person and the insurer established by this provision.

(12)(a) The parties to this coverage agree that no cause of action shall accrue to the insured under this coverage unless within two years from the date of the accident:

(A) Agreement as to the amount due under the policy has been concluded;

(B) The insured or the insurer has formally instituted arbitration proceedings;

(D) Suit for bodily injury has been filed against the uninsured motorist in a court of competent jurisdiction and, within two years from the date of settlement or final judgment against the uninsured motorist, the insured has formally instituted arbitration proceedings or filed an action against the insurer in a court of competent jurisdiction.

(b) For purposes of this subsection:

(A) “Date of settlement” means the date on which a written settlement agreement or release is signed by an insured or, in the absence of such documents, the date on which the insured or the attorney for the insured receives payment of any sum required by the settlement agreement. An advance payment as defined in ORS 18.500 shall not be deemed a payment of a settlement for purposes of the time limitation in this subsection.

(B) “Final judgment” means a judgment that has become final by lapse of time for appeal or by entry in an appellate court of an appellate judgment.

SECTION 3. ORS 742.508 is amended to read:

742.508. As used in this section and ORS 742.510:

(1) “Covered motor vehicle” means a private passenger motor vehicle or a self-propelled mobile home that is owned by the named insured for which a premium has been paid for coverage under this section and ORS 742.510.

(2) “Insured vehicle” means a motor vehicle described in the declarations for which a specific premium charge indicates that underinsured motorists coverage is afforded but the term “insured vehicle” shall not include a vehicle while used as a public or livery conveyance.

(3) “Private passenger motor vehicle” means a four-wheel passenger or station wagon type motor vehicle not more than 12 years old and not used as a public or livery conveyance, and includes any other four-wheel motor vehicle of the utility, pickup body, sedan delivery or panel truck type not used for wholesale or retail delivery.

(4)(a) “Uninsured vehicle” means:

(A) A vehicle with respect to the ownership, maintenance or use of which there is no collectible property damage insurance [or bond], in at least the amounts or limits prescribed under ORS 806.070 (2)(c) applicable at the time of the accident with respect to any person or organization legally responsible for the use of such vehicle, or with respect to which there is such collectible insurance [or bond] applicable at the time of the accident but the insurance company writing the same denies coverage thereunder or, within two years of the date of the accident, such company writing the same becomes voluntarily or involuntarily declared bankrupt or for which a receiver is appointed or becomes insolvent. It shall be a disputable presumption that a vehicle is uninsured in the event the insured and the insurer, after reasonable efforts, fail to discover within 90 days from the date of the accident, the existence of valid and collectible property damage insurance [or bond] applicable at the time of the accident.

(B) A hit-and-run vehicle as defined in subsection (5) of this section.

(b) As used in this section and ORS 742.510, “uninsured vehicle” does not include:

(A) An insured vehicle;

(B) A vehicle which is owned or operated by a self-insurer within the meaning of any motor vehicle financial responsibility law, motor carrier law or any similar law;

(C) A vehicle which is owned by the United States of America, Canada, a state, a political subdivision of any such government or an agency of any of the foregoing;

(D) A land motor vehicle or trailer, if operated on rails or crawler-treads or while located for use as a residence or premises and not as a vehicle;

(E) A farm-type tractor or equipment designed for use principally off public roads, except while actually upon public roads; or

(F) A vehicle owned by or furnished for the regular or frequent use of the insured or any member of the household of the insured.

(5) As used in this section:

(a) “Hit-and-run vehicle” means a vehicle that causes damage to the covered vehicle of an insured arising out of physical contact between the vehicles, provided:

(A) There cannot be ascertained the identity of either the operator or the owner of such hit-and-run vehicle;

(B) The insured or someone on behalf of the insured reports the accident within 72 hours to a police, peace or judicial officer, to the Department of Transportation or to the equivalent department in the state where the accident occurred, and files with the insurer within 30 days thereafter a statement under oath that the insured or the legal representative of the insured has a cause or causes of action arising out of such accident for damages against a person or persons whose identity is unascertainable, and setting forth the facts in support thereof; and

(C) At the insurer’s request, the insured or the legal representative of the insured makes available for inspection the vehicle which was insured at the time of the accident.

(b) “Phantom vehicle” means a vehicle that causes damage to the covered vehicle of an insured, although there is no physical contact between the vehicles, provided:

(A) There cannot be ascertained the identity of either the operator or the owner of such phantom vehicle;

(B) The facts of such accident can be corroborated by competent evidence other than the testimony of the insured or any passenger in the insured motor vehicle; and

(C) The insured or someone on behalf of the insured shall have reported the accident within 72 hours to a police, peace or judicial officer, to the Department of Transportation or to the equivalent department in the state where the accident occurred, and shall have filed with the insurer within 30 days thereafter a statement under oath that the insured or the legal representative of the insured has a cause or causes of action arising out of such accident for damages against a person or persons whose identity is unascertainable, and setting forth the facts in support thereof.

SECTION 4. ORS 806.040 is amended to read:

806.040. Financial responsibility requirements are designed to provide for minimum payment of judgments of the type described in this section. When ORS [806.090, 806.100,] 806.130, 806.140, 806.255, [806.260,] 809.020, 809.130 or 809.470 refer to judgments of the type described in this section, the reference is to a judgment that meets all of the following requirements:

(1) It must have become final by expiration, without appeal, of the time within which an appeal might have been perfected or by final affirmation on appeal.

(2) It must be rendered by a court of competent jurisdiction of any state or of the United States.

(3) It must be upon a cause of action for damages of the type described under subsection (4) of this section or upon a cause of action on an agreement of settlement for such damages.

(4) It must be for one or more of the following kinds of damage arising out of a motor vehicle accident on public or private property:

(a) Damages, including damages for care and loss of services, because of bodily injury to or death of any person.

(b) Damages because of injury to or destruction of property, including the loss of use thereof.

SECTION 5. ORS 806.060 is amended to read:

806.060. A person who is required to comply with the financial responsibility requirements of this state must be able to respond in damages, in amounts required under this section, for liability on account of accidents arising out of the ownership, operation, maintenance or use of motor vehicles and must establish that ability by one of the methods required by this section. All of the following apply to the financial responsibility requirements of this state:

(1) To meet the financial responsibility requirements, a person must be able to respond in damages in amounts not less than those established under the payment schedule under ORS 806.070.

(2) A person may only comply with the financial responsibility requirements of this state by establishing the required ability to respond in damages in one of the following ways:

(a) Obtaining a motor vehicle liability policy meeting the requirements under ORS 806.080 that will provide at least minimum limits necessary to pay amounts established under the payment schedule under ORS 806.070.

[(b) Maintaining a bond of the type described in ORS 806.090 of at least the value of $60,000.]

[(c) Making a deposit under ORS 806.115 of at least $60,000 in cash or appropriate securities.]

[(d)] (b) Becoming self-insured as provided under ORS 806.130.

SECTION 6. ORS 806.070 is amended to read:

806.070. (1) This section establishes a schedule of payments for the following purposes:

(a) An insurance policy described under ORS 806.080 must provide for payment of at least amounts necessary to cover the minimum required payments under this section to qualify for use for financial responsibility under ORS 806.060.

[(b) A deposit under ORS 806.115 is subject to payment limits according to the schedule of payments established by this section.]

[(c) A bond under ORS 806.090 is subject to payment limits according to the schedule of payments established by this section.]

[(d)] (b) A person who is self-insured under ORS 806.130 must agree to pay according to the payment schedule established by this section.

[(e)] (c) The payment schedule is the minimum required payment of a judgment for purposes of ORS 809.020, 809.130 and 809.410.

(2) The schedule of payments is as follows:

(a) $25,000 because of bodily injury to or death of one person in any one accident;

(b) Subject to that limit for one person, $50,000 because of bodily injury to or death of two or more persons in any one accident; and

SECTION 7. ORS 806.210 is amended to read:

806.210. As appropriate, the driver or the owner, or both, are exempt from the requirement under ORS 806.200 to make a future responsibility filing if the person claiming exemption furnishes to the Department of Transportation proof of any of the following:

(1) At the time of the accident the driver was operating a vehicle owned by or leased to and operated under the direction of the United States of America, this state or any municipality or subdivision thereof.

(2) At the time of the accident the vehicle was lawfully parked.

(3) Such liability as may arise from the driver’s operation of the vehicle involved in the accident was covered by some form of liability insurance [or bond] which complies with the financial responsibility requirements.

(4) The owner of the vehicle involved in the accident was a self-insurer under ORS 806.130.

(5) The vehicle involved in the accident was being operated under a permit issued by the department under ORS chapter 825.

(6) At the time of the accident the owner’s vehicle was being operated without the owner’s permission, expressed or implied, or was parked by a person who had been operating such vehicle without the owner’s permission unless the vehicle at the time of its taking had been left unattended in a condition prohibited by a regulation or ordinance designed to prevent the operation of vehicles by unauthorized persons. This subsection only exempts owners of vehicles who qualify.

(7) At the time of the accident, the driver was operating a vehicle owned, operated or leased by the driver’s employer with the permission of that employer. This subsection only exempts drivers of vehicles. Owners remain subject as provided under ORS 806.200.

SECTION 8. ORS 806.240 is amended to read:

806.240. Future responsibility filings required by ORS 806.200, 806.220 or 806.230 or by any other law of this state are subject to all of the following:

(1) The person required to make the filing must file, or have filed for the benefit of the person, proof that meets the requirements of this section and must maintain the proof as long as required under ORS 806.245.

(2) The proof given for a future responsibility filing must be one or more of the following proofs that the person is in compliance with financial responsibility requirements:

(a) A certificate or certificates of insurance that meet the requirements under ORS 806.270.

(b) A valid certificate of self-insurance issued by the Department of Transportation under ORS 806.130.

[(c) A bond meeting the requirements described under ORS 806.090. Upon receipt of a bond as a future responsibility filing under this paragraph, the department, if appropriate, shall file the bond under ORS 806.260 to perfect any lien established under that section.]

[(d) A certificate evidencing deposit issued by the department under ORS 806.115. The department shall not issue a certificate under this paragraph unless the deposit is accompanied by evidence that there are no unsatisfied judgments of any character against the depositor in the county where the depositor resides.]

(3) The owner of a motor vehicle may make a future responsibility filing under this section on behalf of the owner’s employee or a member of the owner’s immediate family or household in lieu of the filing being made by such person. Filing under this subsection permits the person on whose behalf the filing is made to operate only a motor vehicle covered by the proof given in the filing. The department shall indorse restrictions, as appropriate, on any license or driver permit the person holds as the department determines necessary to limit the person’s ability to operate vehicles consistent with this subsection.

(4) At the request of a person who has made a future responsibility filing under this section, the department shall return the proof filed upon the substitution of other adequate proof.

(5) Whenever proof filed under this section no longer meets the requirements of this section, the department shall require the furnishing of other proof for the future responsibility filing. If such other proof is not so furnished, the department shall suspend the driving privileges of the person as provided under ORS 809.410 or, if applicable, any registration as provided under ORS 809.050.

SECTION 9. ORS 806.280 is amended to read:

806.280. The Department of Transportation shall not accept a certificate of insurance for purposes of future responsibility filings from an insurance company [or surety company] that is not authorized to do business in Oregon unless the company meets all of the following requirements:

(1) The company must execute and deliver to the department a power of attorney authorizing the department to accept on behalf of the company service of process in any action arising out of a vehicle accident in this state involving the principal or insured of the company.

(2) The company must execute and deliver to the department a written agreement that the [bond or] policy shall be deemed to conform to the laws of this state relating to such [bond or] insurance policy.

(3) The company must not be in default in any of its agreements or undertakings under a certificate of insurance used for a future responsibility filing in this state. The department shall not accept any certificate of insurance from a company described in this subsection so long as such default continues.

SECTION 10. ORS 806.300 is amended to read:

806.300. (1) A person commits the offense of failure to surrender license and registration on cancellation of future responsibility filing if the person does not immediately return the person’s license or driver permit and registration to the Department of Transportation when any of the following occur:

(a) A policy of insurance [or bond] required under ORS 806.240 is canceled or terminated.

(b) The person neglects to furnish other proof for a future responsibility filing upon request of the department.

(2) If any person fails to return to the department the license, driver permit or registration, the department may request any peace officer to secure possession thereof and return it to the department.

(3) The offense described in this section, failure to surrender license and registration on cancellation of future responsibility filing, is a Class C misdemeanor.

SECTION 11. ORS 809.470 is amended to read:

809.470. (1) This section establishes when a judgment described under ORS 806.040 is settled for purposes of ORS [806.100,] 809.130, 809.280 and 809.410. A judgment shall be deemed settled for the purposes described if any of the following occur:

(a) When payments in the amounts established by the payment schedule under ORS 806.070 have been credited upon any judgment or judgments rendered in excess of those amounts.

(b) When judgments rendered for less than the amounts established under ORS 806.070 have been satisfied.

(c) When the judgment creditor and the judgment debtor have mutually agreed upon a compromise settlement of the judgment.

(d) When the judgment against the judgment debtor has been discharged in bankruptcy.

(2) Payments made in settlement of any claims because of bodily injury, death or property damage arising from the accident shall be credited in reduction of the amounts provided for in subsection (1) of this section.

SECTION 12. ORS 822.510 is amended to read:

822.510. An applicant or holder of a commercial driver training school certificate may maintain proof of insurance required under ORS 822.515 for issuance or renewal of the certificate by complying with any of the following:

(1) The school may file a certificate of insurance with the Department of Transportation that complies with all of the following:

(a) The insurance must be issued to the school.

(b) The insurance must be issued by an insurance company authorized to do business in this state.

(c) The insurance must show that the insured has procured and has in effect a motor vehicle liability policy that provides at least the following coverage:

(A) $50,000 because of bodily injury to or death of one person in any one accident;

(B) Subject to the limit for one person, $100,000 because of bodily injury to or death of two or more persons in any one accident; and

(d) The policy shall designate by explicit description or by appropriate reference all motor vehicles with respect to which coverage is granted.

(e) The policy shall insure any and all persons using any motor vehicle owned or operated by the school with the consent of the school against loss from the liabilities imposed by law for damages arising out of the operation, use or maintenance of the motor vehicle.

[(2) The school may provide the department with proof that the school has a bond that is conditioned on the payment of claims in the amounts required for insurance under this section.]

[(3) The school may provide the department with a certificate of the State Treasurer stating that the school has deposited with the State Treasurer the sum of $50,000 in cash or in securities that may be legally purchased by fiduciaries or for trust funds and that have a market value of $50,000.]

[(4)] (2) The school may obtain a valid certificate of self-insurance from the department.

SECTION 13. ORS 558.050 is amended to read:

558.050. (1) No license shall be issued to any person until the person has filed with the State Department of Agriculture proof of ability to respond in damages for liability on account of accidents arising out of the weather modification operations to be conducted by the person in the amount of $100,000 because of bodily injury to or death of one person resulting from any one accident, and, subject to said limit for one person, in the amount of $300,000 because of bodily injury to or death of two or more persons resulting from any one accident, and in the amount of $300,000 because of injury to or destruction of property of others resulting from any one accident.

(2) Proof of financial responsibility may be given by filing with the department a certificate of insurance or a bond, an irrevocable letter of credit issued by an insured institution as defined in ORS 706.008 or a certificate evidencing deposit of money in the same manner and with the same effect as provided by ORS 806.080, [806.090, 806.100, 806.115 and] 806.270 and sections 15 to 17 of this 2003 Act.

SECTION 14. Sections 15 to 17 of this 2003 Act are added to and made a part of ORS 558.010 to 558.140.

SECTION 15. A bond used to comply with financial responsibility requirements under ORS 558.050 must meet all of the following requirements:

(1) The bond must be in the amount required by ORS 558.050.

(2) The bond must be approved by a judge of a court of record in this state.

(3) The bond must contain a provision that it cannot be canceled except upon the giving of 10 days’ prior written notice to the State Department of Agriculture.

(4) The bond must be provided by either of the following:

(a) A surety company.

(b) Two persons who are residents of Oregon and who each own real property in this state having together equities at least of the value required for the bond under ORS 558.050.

(5) If the bond is provided by real property owners in this state, the bond must contain a schedule of the real property owned by each of the sureties that will be used to meet the financial responsibility requirements of this state.

(6) The bond must be conditioned to pay, on behalf of the principal, the limits of financial responsibility requirements under ORS 558.050.

(7) The bond must be conditioned to pay, on behalf of the principal, judgments against a person for accidents described in ORS 558.050 and must be subject to action under section 16 of this 2003 Act.

(8) The bond is subject to any rules adopted by the department relating to such bonds.

SECTION 16. (1) If a judgment rendered against the principal on a bond described under section 15 of this 2003 Act is not settled within 60 days after it has become final, a judgment creditor, for the judgment creditor’s own use and benefit and at the judgment creditor’s sole expense, may bring an action against any surety on the bond. An action brought under this section must be brought in the name of the state. An action under this section may include any action or proceeding to foreclose any lien established upon the real property of a surety under section 15 of this 2003 Act.

(2) For purposes of this section, a judgment is satisfied when any of the following occurs:

(a) Payments in the amounts established by the payment schedule under ORS 558.050 have been credited upon any judgment or judgments rendered in excess of those amounts.

(b) Judgments rendered for less than the amounts established under ORS 558.050 have been satisfied.

(c) The judgment creditor and the judgment debtor have mutually agreed upon a compromise settlement of the judgment.

(d) The judgment against the judgment debtor has been discharged in bankruptcy.

SECTION 17. (1) A person may satisfy the financial responsibility requirements of ORS 558.050 by depositing with the State Department of Agriculture the following:

(a) Cash;

(b) Legally issued general obligations of the United States, the agencies and instrumentalities of the United States and the States of Oregon, Washington, Idaho and California;

(c) Certificates of deposit or other similar instruments if the instruments are insured by the Federal Deposit Insurance Corporation; or

(d) Any combination of cash or instruments described in this subsection.

(2) The department shall hold the deposit under terms and conditions that the department designates by rule. The department may deliver the deposit to the State Treasurer, who shall receive and hold the deposit subject to the order of the department. The depositor shall reimburse the State Treasurer for any expenses incurred by the State Treasurer in mailing, insuring, shipping or delivering the cash or instruments in the deposit.

(3) The department, by order, may authorize the State Treasurer to use the deposit as follows:

(a) To satisfy any execution on a judgment that is against the person making the deposit for an accident described in ORS 558.050 and that results from a cause of action that accrued after the deposit was made; or

(b) To release any or all of the deposit to the depositor or other person as the department considers appropriate.

(4) While deposited with the department, the cash or instruments in the deposit are not subject to attachment or execution unless the attachment or execution arises out of a judgment against the person making the deposit for an accident described in ORS 558.050 and that results from a cause of action that accrued after the deposit was made.

(5) The department shall issue the depositor a certificate evidencing the deposit.

SECTION 18. ORS 682.109 is amended to read:

682.109. [When] Sections 20 to 22 of this 2003 Act apply to a bond, letter of credit or certificate evidencing deposit with the Department of [Transportation] Human Services that is the method chosen to prove financial responsibility[, the provisions of ORS 806.090, 806.100 and 806.115 shall be deemed to refer to bonds, letters of credit, certificates, deposits and rights and remedies accruing thereunder] under this chapter. [except that] The dollar amounts required for the bonds, letters of credit or deposits [and subject to the provisions] shall be $320,000 [each respectively].

SECTION 19. Sections 20 to 22 of this 2003 Act are added to and made a part of ORS chapter 682.

SECTION 20. A bond used to comply with financial responsibility requirements under this chapter must meet all of the following requirements:

(1) The bond must be in the amount required by ORS 682.109.

(2) The bond must be approved by a judge of a court of record in this state.

(3) The bond must contain a provision that it cannot be canceled except upon the giving of 10 days’ prior written notice to the Department of Human Services.

(4) The bond must be provided by either of the following:

(a) A surety company.

(b) Two persons who are residents of Oregon and who each own real property in this state having together equities at least of the value required for the bond under ORS 682.109.

(6) The bond must be conditioned to pay, on behalf of the principal, the limits of financial responsibility requirements under this chapter.

(7) The bond must be conditioned to pay, on behalf of the principal, judgments against a person for liability described in ORS 682.105 and must be subject to action under section 21 of this 2003 Act.

(8) The bond is subject to any rules adopted by the department relating to such bonds.

SECTION 21. (1) If a judgment rendered against the principal on a bond described under section 20 of this 2003 Act is not settled within 60 days after it has become final, a judgment creditor, for the judgment creditor’s own use and benefit and at the judgment creditor’s sole expense, may bring an action against any surety on the bond. An action brought under this section must be brought in the name of the state. An action under this section may include any action or proceeding to foreclose any lien established upon the real property of a surety under section 20 of this 2003 Act.

(2) For purposes of this section, a judgment is satisfied when any of the following occurs:

(a) Payments in the amounts established by the payment schedule under ORS 682.105 have been credited upon any judgment or judgments rendered in excess of those amounts.

(b) Judgments rendered for less than the amounts established under ORS 682.105 have been satisfied.

(c) The judgment creditor and the judgment debtor have mutually agreed upon a compromise settlement of the judgment.

(d) The judgment against the judgment debtor has been discharged in bankruptcy.

SECTION 22. (1) A person may satisfy the financial responsibility requirements of ORS 682.105 by depositing with the Department of Human Services the following:

(a) Cash;

(b) Legally issued general obligations of the United States, the agencies and instrumentalities of the United States and the States of Oregon, Washington, Idaho and California;

(c) Certificates of deposit or other similar instruments if the instruments are insured by the Federal Deposit Insurance Corporation; or

(d) Any combination of cash or instruments described in this subsection.

(3) The department, by order, may authorize the State Treasurer to use the deposit as follows:

(a) To satisfy any execution on a judgment that is against the person making the deposit for any liability described in ORS 682.105 and that results from a cause of action that accrued after the deposit was made; or

(b) To release any or all of the deposit to the depositor or other person as the department considers appropriate.

(4) While deposited with the department, the cash or instruments in the deposit are not subject to attachment or execution unless the attachment or execution arises out of a judgment against the person making the deposit for any liability described in ORS 682.105 and that results from a cause of action that accrued after the deposit was made.

(5) The department shall issue the depositor a certificate evidencing the deposit.

Approved by the Governor May 30, 2003

Filed in the office of Secretary of State June 2, 2003

Effective date January 1, 2004

__________