72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
Enrolled
House Bill 2925
Sponsored by COMMITTEE ON JUDICIARY (at the request of Farmers'
Insurance Group)
CHAPTER ................
AN ACT
Relating to uninsured motorist coverage; creating new provisions;
and amending ORS 742.502.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 742.502 is amended to read:
742.502. (1) Every motor vehicle liability policy insuring
against loss suffered by any natural person resulting from
liability imposed by law for bodily injury or death arising out
of the ownership, maintenance or use of a motor vehicle shall
provide therein or by indorsement thereon uninsured motorist
coverage when such policy is either:
(a) Issued for delivery in this state; or
(b) Issued or delivered by an insurer doing business in this
state with respect to any motor vehicle then principally used or
principally garaged in this state.
(2)(a) A motor vehicle bodily injury liability policy shall
have the same limits for uninsured motorist coverage as for
bodily injury liability coverage unless a named insured in
writing elects lower limits. The insured may not elect limits
lower than the amounts prescribed to meet the requirements of ORS
806.070 for bodily injury or death. Uninsured motorist coverage
larger than the amounts required by ORS 806.070 shall include
underinsurance coverage for damages or death caused by accident
and arising out of the ownership, maintenance or use of a motor
vehicle that is insured for an amount that is less than the
insured's uninsured motorist coverage. Underinsurance benefits
shall be equal to uninsured motorist coverage benefits less the
amount recovered from other automobile liability insurance
policies.
(b) A statement electing lower limits shall be signed and dated
by a named insured { - at - } { + within 60 days of + } the
time a named insured elects lower limits. The statement shall
acknowledge that a named insured was offered uninsured motorist
coverage with the limits equal to those for bodily injury
liability. The statement shall contain a brief summary, which
shall not be construed as part of the insurance contract, of what
uninsured and underinsured motorist coverages provide and shall
state the price for coverage with limits equal to the named
insured's bodily injury liability limits and the price for
coverage with the lower limits requested by the named insured.
The statement shall remain in force until rescinded in writing by
a named insured or until such time as motor vehicle bodily injury
Enrolled House Bill 2925 (HB 2925-INTRO) Page 1
liability limits are changed. The form of statement used to
comply with this paragraph shall be approved by the department.
(c) A statement electing lower limits need not be signed when
vehicles are either added to or subtracted from a policy or when
the policy is amended, renewed, modified or replaced by the same
company or group of companies under common ownership or control
unless the liability limits of the policy are changed.
(3) The insurer issuing such policy may offer one or more
options of uninsured motorist coverage larger than the amounts
prescribed to meet the requirements of ORS 806.070 and in excess
of the limits provided under the policy for motor vehicle bodily
injury liability insurance. Offers of uninsured motorist coverage
larger than the amounts required by ORS 806.070 shall include
underinsurance coverage for damages or death caused by accident
and arising out of the ownership, maintenance or use of a motor
vehicle with liability insurance that provides recovery in an
amount that is less than the insured's uninsured motorist
coverage. Underinsurance benefits shall be equal to uninsured
motorist coverage benefits less the amount recovered from other
automobile liability insurance policies.
(4) Underinsurance coverage shall be subject to ORS 742.504 and
742.542.
(5) Except as provided in this subsection, the 'amount
recovered from other automobile liability insurance policies '
means the proceeds of liability insurance recovered by or on
behalf of the injured party. Proceeds recovered on behalf of the
injured party include proceeds received by the injured party's
insurer as reimbursement for personal injury protection benefits
provided to the injured person, proceeds received by the medical
providers of the injured person and proceeds received as attorney
fees on the claim of the injured person. Where applicable
liability insurance policy limits are exhausted upon payment,
settlement or judgment by division among two or more injured
persons, the 'amount recovered from other automobile liability
insurance policies' means the proceeds that are recovered by or
on behalf of the injured person but does not include any proceeds
of that liability policy received by other injured persons.
SECTION 2. { + The amendments to ORS 742.502 by section 1 of
this 2003 Act apply to motor vehicle liability policies issued or
renewed on or after the effective date of this 2003 Act. + }
----------
Passed by House April 16, 2003
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate May 5, 2003
...........................................................
President of Senate
Enrolled House Bill 2925 (HB 2925-INTRO) Page 2
Received by Governor:
......M.,............., 2003
Approved:
......M.,............., 2003
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2003
...........................................................
Secretary of State
Enrolled House Bill 2925 (HB 2925-INTRO) Page 3