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 2277
 
                           A-Engrossed
 
                         Senate Bill 523
                   Ordered by the Senate May 9
             Including Senate Amendments dated May 9
 
Sponsored by Senator PROZANSKI (at the request of Jim Marr)
 
 
                             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.
 
    { - Prohibits insurer from suggesting or recommending motor
vehicle repair shop unless insured requests referral and insured
is informed of rights in writing. - }
    { - Prohibits insurer from limiting or discounting reasonable
repair costs if insured uses motor vehicle repair shop other than
shop recommended by insurer. - }
   { +  Requires insurer, before recommending that particular
motor vehicle repair shop make repairs to insured's motor
vehicle, to inform insured of insured's right to select repair
shop of insured's choice. Prohibits insurer from limiting cost of
repairs based on insured's choice. Requires insurer to provide
written notice regarding costs to insured if insured accepts
insurer's recommendation. + }
 
                        A BILL FOR AN ACT
Relating to motor vehicle liability insurance; amending ORS
  746.280.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 746.280 is amended to read:
  746.280.  { + (1) + } An insurer   { - shall - }  { +  may + }
not require that a particular person make the repairs to the
insured's motor vehicle as a condition for recovery by the
insured under a motor vehicle liability insurance policy.
   { +  (2) Prior to providing a recommendation that a particular
person make repairs to the insured's motor vehicle, the person
adjusting the claim on behalf of the insurer shall inform the
insured of the rights conferred by subsection (1) of this section
by communicating in a statement substantially similar to the
following: + }
 
________________________________________________________________
 
   { +  OREGON LAW PROHIBITS US FROM REQUIRING YOU TO GET REPAIRS
TO YOUR VEHICLE AT A PARTICULAR MOTOR VEHICLE REPAIR SHOP. YOU
HAVE THE RIGHT TO SELECT THE MOTOR VEHICLE REPAIR SHOP OF YOUR
CHOICE. + }
 
________________________________________________________________
 
 
   { +  (3) If an insured elects to have the motor vehicle
repaired at a motor vehicle repair shop other than a shop
recommended by the insurer, the insurer may not limit the cost of
repairs necessary to return the motor vehicle to a preloss
condition relative to safety, function and appearance other than
as stated in the policy or as otherwise allowed by law.
  (4) If an insured accepts the insurer's recommendation, the
insurer shall provide, electronically or in printed form, a
statement to the insured within three business days after the
date of acceptance in substantially the following form: + }
 
________________________________________________________________
 
   { +  WE HAVE RECOMMENDED A MOTOR VEHICLE REPAIR SHOP. IF YOU
AGREE TO USE OUR RECOMMENDED REPAIR SHOP, YOUR VEHICLE WILL
RECEIVE REPAIRS RETURNING IT TO A PRELOSS CONDITION RELATIVE TO
SAFETY, FUNCTION AND APPEARANCE AT NO ADDITIONAL COST TO YOU
OTHER THAN AS STATED IN THE INSURANCE POLICY OR AS OTHERWISE
ALLOWED BY LAW. + }
 
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