74th OREGON LEGISLATIVE ASSEMBLY--2007 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 277
 
                           A-Engrossed
 
                         Senate Bill 255
                Ordered by the Senate February 23
          Including Senate Amendments dated February 23
 
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 Senate Interim Committee on
  Judiciary)
 
 
                             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.
 
    { - Modifies provisions under which motor vehicle liability
insurer is responsible to second insurer for reimbursement of
personal injury protection benefits. - }
   { +  Provides that if motor vehicle liability insurer does not
request reimbursement for recovery of personal injury protection
payments from other insurer, insurer may recover payments only
through lien process or subrogation. + }
 
                        A BILL FOR AN ACT
Relating to reimbursement of personal injury protection benefits;
  creating new provisions; and amending ORS 742.534.
Be It Enacted by the People of the State of Oregon:
   { +  SECTION 1. + } ORS 742.534 is amended to read:
  742.534. (1) Except as provided in ORS 742.544, every
authorized motor vehicle liability insurer whose insured is or
would be held legally liable for damages for injuries sustained
in a motor vehicle accident by a person for whom personal injury
protection benefits have been furnished by another such insurer,
or for whom benefits have been furnished by an authorized health
insurer, shall reimburse such other insurer for the benefits it
has so furnished if it has requested such reimbursement, has not
given notice as provided in ORS 742.536 that it elects recovery
by lien in accordance with that section and is entitled to
reimbursement under this section by the terms of its policy.
Reimbursement under this subsection, together with the amount
paid to injured persons by the liability insurer, shall not
exceed the limits of the policy issued by the insurer.
  (2) In calculating such reimbursement, the amount of benefits
so furnished shall be diminished in proportion to the amount of
negligence attributable to the person for whom benefits have been
so furnished, and the reimbursement shall not exceed the amount
of damages legally recoverable by the person.
 
 
  (3) Disputes between insurers as to such issues of liability
and the amount of reimbursement required by this section shall be
decided by arbitration.
  (4) Findings and awards made in such an arbitration proceeding
are not admissible in any action at law or suit in equity.
   { +  (5) If an insurer does not request reimbursement under
this section for recovery of personal injury protection payments,
then the insurer may only recover personal injury protection
payments under the provisions of ORS 742.536 or 742.538. + }
  SECTION 2.  { + The amendments to ORS 742.534 by section 1 of
this 2007 Act apply to motor vehicle liability insurance policies
issued or renewed on or after the effective date of this 2007
Act. + }
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