72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
Enrolled
Senate Bill 247
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor Theodore R.
Kulongoski for Department of Transportation)
CHAPTER ................
AN ACT
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repealed.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:
Enrolled Senate Bill 247 (SB 247-INTRO) Page 1
(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.
(c) 'Insured vehicle' does not include a trailer of any type
unless such trailer is a described vehicle in the policy.
(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.
(C) A phantom vehicle as defined in paragraph (g) 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;
Enrolled Senate Bill 247 (SB 247-INTRO) Page 2
(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
Enrolled Senate Bill 247 (SB 247-INTRO) Page 3
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
Enrolled Senate Bill 247 (SB 247-INTRO) Page 4
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.
Enrolled Senate Bill 247 (SB 247-INTRO) Page 5
(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
(c) At any other place mutually agreed upon by the insured and
the insurer.
(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
Enrolled Senate Bill 247 (SB 247-INTRO) Page 6
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;
(C) The insured has filed an action against the insurer in a
court of competent jurisdiction; or
(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
Enrolled Senate Bill 247 (SB 247-INTRO) Page 7
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.
(C) A phantom 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
Enrolled Senate Bill 247 (SB 247-INTRO) Page 8
(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.
Enrolled Senate Bill 247 (SB 247-INTRO) Page 9
(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
(c) $10,000 because of injury to or destruction of the property
of others in any one accident.
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:
Enrolled Senate Bill 247 (SB 247-INTRO) Page 10
(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
Enrolled Senate Bill 247 (SB 247-INTRO) Page 11
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.
Enrolled Senate Bill 247 (SB 247-INTRO) Page 12
(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
(C) $25,000 because of injury to or destruction of the property
of others in any one accident.
(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
Enrolled Senate Bill 247 (SB 247-INTRO) Page 13
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. + }
Enrolled Senate Bill 247 (SB 247-INTRO) Page 14
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:
Enrolled Senate Bill 247 (SB 247-INTRO) Page 15
(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.
(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 chapter.
(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.
(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:
Enrolled Senate Bill 247 (SB 247-INTRO) Page 16
(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. + }
----------
Passed by Senate February 19, 2003
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House May 8, 2003
...........................................................
Speaker of House
Enrolled Senate Bill 247 (SB 247-INTRO) Page 17
Received by Governor:
......M.,............., 2003
Approved:
......M.,............., 2003
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2003
...........................................................
Secretary of State
Enrolled Senate Bill 247 (SB 247-INTRO) Page 18