75th OREGON LEGISLATIVE ASSEMBLY--2009 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 1671
 
                         Senate Bill 354
 
Sponsored by Senator METSGER (at the request of Linda Minten)
 
 
                             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.
 
  Requires insurers to disclose legal consequences of claim
settlement to insured. Allows insured 14 days to rescind signed
settlement. Requires witness signature to settlement.
 
                        A BILL FOR AN ACT
Relating to claim settlement for motor vehicle insurance
  policies.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2009 Act is added to and made
a part of the Insurance Code. + }
  SECTION 2.  { + (1) When making a settlement offer to an
insured based upon a claim against a policy for motor vehicle
liability insurance, an insurer shall:
  (a) Provide a written disclosure on all settlement documents
transmitted to the insured stating that agreement to the
settlement by the insured forecloses all legal attempts by the
insured to gain additional benefits under the policy.
  (b) Provide, in a written statement on all settlement documents
transmitted to the insured, that if the insured wishes to rescind
a signed settlement agreement, the insured must provide written
notice of the rescission to the insurer by regular delivery mail,
postmarked no later than 14 days from the date of the insured's
signature on the settlement agreement document.
  (2) If the insured notifies the insurer of the rescission
pursuant to subsection (1)(b) of this section, the insurer shall
rescind the settlement agreement.
  (3) A settlement agreement document is not valid unless signed
by the insured, the insurer and a witness to the insured's
signature. The witness must not be an employee or agent of the
insurer. + }
  SECTION 3.  { + Section 2 of this 2009 Act applies to insurance
contracts issued or renewed on or after the effective date of
this 2009 Act. + }
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