72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3815
House Bill 3668
Sponsored by Representative T SMITH (at the request of Oregon
State Ambulance Association, Oregon Chapter; American College
of Emergency Physicians)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Increases motor vehicle liability coverage required for
personal injury and property damage. Provides that insurer is not
required to pay provider amount greater than certain amounts.
A BILL FOR AN ACT
Relating to motor vehicle liability coverage; creating new
provisions; and amending ORS 742.520, 742.524, 806.060 and
806.070.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 742.520 is amended to read:
742.520. (1) Every motor vehicle liability policy issued for
delivery in this state that covers any private passenger motor
vehicle shall provide personal injury protection benefits to the
person insured thereunder, members of that person's family
residing in the same household, children not related to the
insured by blood, marriage or adoption who are residing in the
same household as the insured and being reared as the insured's
own, passengers occupying the insured motor vehicle and
pedestrians struck by the insured motor vehicle. 'Personal injury
protection benefits' means the benefits described in this section
and ORS 742.524 and 742.530.
(2) Personal injury protection benefits apply to a person's
injury or death resulting:
(a) In the case of the person insured under the policy and
members of that person's family residing in the same household,
from the use, occupancy or maintenance of any motor vehicle,
except the following vehicles:
(A) A motor vehicle, including a motorcycle or moped, that is
owned or furnished or available for regular use by any of such
persons and that is not described in the policy;
(B) A motorcycle or moped which is not owned by any of such
persons, but this exclusion applies only when the injury or death
results from such person's operating or riding upon the
motorcycle or moped; and
(C) A motor vehicle not included in subparagraph (A) or (B) of
this paragraph and not a private passenger motor vehicle.
However, this exclusion applies only when the injury or death
results from such person's operating or occupying the motor
vehicle.
(b) In the case of a passenger occupying or a pedestrian struck
by the insured motor vehicle, from the use, occupancy or
maintenance of the vehicle.
(3) Personal injury protection benefits consist of payments for
expenses, loss of income and loss of essential services as
provided in ORS 742.524.
(4) An insurer shall pay all personal injury protection
benefits promptly after proof of loss has been submitted to the
insurer.
(5) The potential existence of a cause of action in tort does
not relieve an insurer from the duty to pay personal injury
protection benefits.
(6) Disputes between insurers and beneficiaries about the
amount of personal injury protection benefits, or about the
denial of personal injury protection benefits, shall be decided
by arbitration if mutually agreed to at the time of the dispute.
(7) As used in ORS 742.520 to 742.542:
(a) 'Motor vehicle' means a self-propelled land motor vehicle
or trailer, other than:
(A) A farm type tractor or other self-propelled equipment
designed for use principally off public roads, while not upon
public roads;
(B) A vehicle operated on rails or crawler-treads; or
(C) A vehicle located for use as a residence or premises.
(b) 'Motorcycle' and 'moped' have the meanings given those
terms in ORS 801.345 and 801.365.
(c) 'Occupying' means in, or upon, or entering into or
alighting from.
(d) 'Pedestrian' means a person while not occupying a
self-propelled vehicle other than a wheelchair or a similar
low-powered motorized or mechanically propelled vehicle that is
designed specifically for use by a physically disabled person and
that is determined to be medically necessary for the occupant of
the wheelchair or other low-powered vehicle.
(e) 'Private passenger motor vehicle' means a four-wheel
passenger or station wagon type motor vehicle 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 other
than farming, a self-propelled mobile home, and a farm truck.
{ + (f) 'Provider' has the meaning given that term in ORS
743.801. + }
SECTION 2. ORS 742.524 is amended to read:
742.524. (1) Personal injury protection benefits as required by
ORS 742.520 shall consist of the following payments for the
injury or death of each person:
(a) All reasonable and necessary expenses of medical, hospital,
dental, surgical, ambulance and prosthetic services incurred
within one year after the date of the person's injury, but not
more than { - $10,000 - } { + $15,000 + } in the aggregate
for all such expenses of the person. Expenses of medical,
hospital, dental, surgical, ambulance and prosthetic services
shall be presumed to be reasonable and necessary unless the
provider is given notice of denial of the charges not more than
60 calendar days after the insurer receives from the provider
notice of the claim for the services. At any time during the
first 50 calendar days after the insurer receives notice of
claim, the provider shall, within 10 business days, answer in
writing questions from the insurer regarding the claim. For
purposes of determining when the 60-day period provided by this
paragraph has elapsed, counting of days shall be suspended if the
provider does not supply written answers to the insurer within 10
days and shall not resume until the answers are supplied.
(b) If the injured person is usually engaged in a remunerative
occupation and if disability continues for at least 14 days, 70
percent of the loss of income from work during the period of the
injured person's disability until the date the person is able to
return to the person's usual occupation. This benefit is subject
to a maximum payment of $1,250 per month and a maximum payment
period in the aggregate of 52 weeks. As used in this paragraph,
'income' includes but is not limited to salary, wages, tips,
commissions, professional fees and profits from an individually
owned business or farm.
(c) If the injured person is not usually engaged in a
remunerative occupation and if disability continues for at least
14 days, the expenses reasonably incurred by the injured person
for essential services in lieu of the services the person would
have performed without income during the period of the person's
disability until the date the person is reasonably able to
perform such essential services. This benefit is subject to a
maximum payment of $30 per day and a maximum payment period in
the aggregate of 52 weeks.
(d) All reasonable and necessary funeral expenses incurred
within one year after the date of the person's injury, but not
more than $2,500.
(e) If the injured person is a parent of a minor child and is
required to be hospitalized for a minimum of 24 hours, $15 per
day for child care, with payments to begin after the initial 24
hours of hospitalization and to be made for as long as the person
is unable to return to work if the person is engaged in a
remunerative occupation or for as long as the person is unable to
perform essential services that the person would have performed
without income if the person is not usually engaged in a
remunerative occupation, but not to exceed $450.
(2) With respect to the insured person and members of that
person's family residing in the same household, an insurer may
offer forms of coverage for the benefits required by subsection
(1)(a), (b) and (c) of this section with deductibles of up to
$250.
SECTION 3. 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) A person who is self-insured under ORS 806.130 must agree
to pay according to the payment schedule established by this
section.
(e) 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 - } { + $50,000 + } because of bodily
injury to or death of one person in any one accident;
(b) Subject to that limit for one person, { - $50,000 - }
{ + $100,000 + } because of bodily injury to or death of two or
more persons in any one accident; and
(c) { - $10,000 - } { + $25,000 + } because of injury to or
destruction of the property of others in any one accident.
SECTION 4. 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 - } { + $125,000 + }.
(c) Making a deposit under ORS 806.115 of at least
{ - $60,000 - } { + $125,000 + } in cash or appropriate
securities.
(d) Becoming self-insured as provided under ORS 806.130.
SECTION 5. { + Section 6 of this 2003 Act is added to and made
a part of ORS 742.520 to 742.542. + }
SECTION 6. { + An insurer is not required to pay a provider an
amount that exceeds the amount the provider charges the general
public or an amount that exceeds the fee schedules for medical
services published pursuant to ORS 656.248 for expenses of
medical, hospital, dental, surgical, ambulance and prosthetic
services. + }
SECTION 7. { + (1) Section 6 of this 2003 Act and the
amendments to ORS 742.520, 742.524 and 806.070 by sections 1, 2
and 3 of this 2003 Act apply to motor vehicle liability policies
issued or renewed on or after the effective date of this 2003
Act.
(2) The amendments to ORS 806.060 by section 4 of this 2003 Act
apply to all bonds of the type described in ORS 806.090 and all
deposits made under ORS 806.115, whether the bond or deposit was
issued or made before, on or after the effective date of this
2003 Act. + }
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