75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
Enrolled
House Bill 2190
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for Department of Consumer and Business Services)
CHAPTER ................
AN ACT
Relating to valuations under motor vehicle liability insurance;
creating new provisions; and amending ORS 742.466.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 and 3 of this 2009 Act are added to
and made a part of the Insurance Code. + }
SECTION 2. { + When an insurer declares a motor vehicle a
total loss and offers to make a cash settlement to an insured or
third-party owner of the motor vehicle, the insurer shall provide
the insured or third-party owner:
(1) Any valuation or appraisal reports relied upon by the
insurer to determine value; and
(2) A written statement in a form provided by the Director of
the Department of Consumer and Business Services that includes:
(a) Information about total loss, vehicle valuation and the
duties of the insurer; and
(b) The manner in which and under what circumstances the
insured may contact the Insurance Division of the Department of
Consumer and Business Services. + }
SECTION 3. { + (1) An insurer shall pay the insured or
third-party owner of a motor vehicle the amount of the motor
vehicle's value that is not in dispute if the insurer declares
the motor vehicle a total loss and the insurer and the insured or
third-party owner are unable to agree on the value of the motor
vehicle. Acceptance of payment of the undisputed amount neither
waives the rights of the insured or third-party owner under the
policy nor prevents the insured or third-party owner from
pursuing a claim for additional amounts. Payment of the
undisputed amount by the insurer does not waive any rights of the
insurer under the policy.
(2) An insurer is not obligated to pay the undisputed amount
under subsection (1) of this section until the insured or
third-party owner of the motor vehicle:
(a) Agrees to execute documents sufficient to transfer
ownership of the motor vehicle to the insurer; and
(b) Authorizes the insurer, at the insurer's expense, to move
the motor vehicle to a disclosed location selected by the
insurer, where the motor vehicle will remain available for
inspection and evaluation for not fewer than 14 calendar days.
Enrolled House Bill 2190 (HB 2190-A) Page 1
(3) After the expiration of the 14-day period under subsection
(2) of this section, the insurer may proceed with the salvage
sale of the motor vehicle. + }
SECTION 4. ORS 742.466 is amended to read:
742.466. (1) In the event of a dispute between the insurer and
insured under a motor vehicle liability policy concerning
coverage for physical damage, if the policy contains a provision
authorizing the insured to obtain an independent appraisal by a
disinterested party of the physical damage, that provision shall
apply.
{ + (2) When a motor vehicle liability policy contains a
provision for resolving a dispute through appraisal of a motor
vehicle insured under the policy, the insurer shall reimburse the
insured for the reasonable appraisal costs if the final appraisal
decision under the policy provision is greater than the amount of
the insurer's last offer prior to the incurrence of the appraisal
costs. + }
{ - (2) - } { + (3) + } If a motor vehicle liability policy
does not contain a provision described in subsection (1) of this
section, then notwithstanding any other provision of the policy,
any resolution of the dispute shall be subject to rules adopted
by the Director of the Department of Consumer and Business
Services.
SECTION 5. { + (1) Section 2 of this 2009 Act applies to a
determination of loss made on or after the effective date of this
2009 Act.
(2) Section 3 of this 2009 Act and the amendments to ORS
742.466 by section 4 of this 2009 Act apply to motor vehicle
liability insurance policies issued or renewed on or after the
effective date of this 2009 Act. + }
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Passed by House February 24, 2009
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate March 30, 2009
...........................................................
President of Senate
Enrolled House Bill 2190 (HB 2190-A) Page 2
Received by Governor:
......M.,............., 2009
Approved:
......M.,............., 2009
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2009
...........................................................
Secretary of State
Enrolled House Bill 2190 (HB 2190-A) Page 3