73rd OREGON LEGISLATIVE ASSEMBLY--2005 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 841
 
                         House Bill 2271
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Joint Interim Committee on
  Judiciary for Oregon Law Commission)
 
 
                             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.
 
  Permits recovery under insured's uninsured motorist coverage
when insured's uninsured motorist coverage limits equal liability
coverage limits of person at fault for bodily injury or death and
insured recovers less than amount of insured's uninsured motorist
coverage under applicable liability insurance policy.
 
                        A BILL FOR AN ACT
Relating to motor vehicle liability insurance; 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 - }   { + in the policy + } or by indorsement
 { - thereon - }   { + on the policy + } uninsured motorist
coverage when   { - such - }   { + the + } 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 - }
 { + bodily injury + } or death caused by accident and arising
out of the ownership, maintenance or use of a motor vehicle
 { - that is insured for - }   { + with motor vehicle liability
insurance that provides recovery in + } an amount that is less
than the insured's uninsured motorist coverage. Underinsurance
  { - benefits - }   { + coverage + } shall be equal to uninsured
motorist coverage
 
  { - benefits - }  less the amount recovered from other
 { - automobile - }   { + motor vehicle + } liability insurance
policies.
  (b)  { + If a named insured elects lower limits, the named
insured shall sign + } a statement electing lower limits
 { - shall be signed and dated by a named insured - }  within 60
days of the time   { - a - }   { + the + } named insured
 { - elects lower limits - }  { +  makes the election + }. 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 - }   { + may + } 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 - }   { + the + } motor vehicle bodily injury liability limits
are changed. The form of statement used to comply with this
paragraph shall be approved by the Department { +  of Consumer
and Business Services + }.
  (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 - }
 { + bodily injury + } or death caused by accident and arising
out of the ownership, maintenance or use of a motor vehicle with
 { + motor vehicle + } liability insurance that provides recovery
in an amount that is less than the insured's uninsured motorist
coverage. Underinsurance   { - benefits - }  { + coverage + }
shall be equal to uninsured motorist coverage   { - benefits - }
less the amount recovered from other   { - automobile - }
 { + motor vehicle + } liability insurance policies.
  (4) Underinsurance coverage   { - shall be - }   { + is + }
subject to ORS 742.504 and 742.542.
   { +  (5) Uninsured motorist coverage and underinsurance
coverage shall provide coverage for bodily injury or death when:
  (a) The limits for uninsured motorist coverage of the insured
equal the limits of the liability policy of the person whose
fault caused the bodily injury or death; and
  (b) The amount of liability insurance recovered is less than
the limits for uninsured motorist coverage of the insured. + }
    { - (5) - }   { + (6) As used in this section and + } except
as  { + otherwise + } provided in this subsection,   { - the - }
'amount recovered from other
  { - automobile - }   { + motor vehicle + } 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 - }   { + motor vehicle + } 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 2005 Act apply to motor vehicle liability policies issued or
renewed on or after the effective date of this 2005 Act. + }
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