Chapter 438 Oregon Laws 1999
Session Law
AN ACT
HB 2740
Relating to liability
arising out of use of motor vehicles; creating new provisions; and amending ORS
742.450.
Be It Enacted by the People of the State of Oregon:
SECTION 1. (1) Subject to the provisions of this
section, a person that loans, rents, donates use of or otherwise provides a
motor vehicle, as defined in ORS 801.360, to another person is not liable for
any injury, death or damage that arises out of the use of that motor vehicle by
the other person, unless the person providing the motor vehicle is negligent in
maintaining the motor vehicle or in providing the motor vehicle and the injury,
death or damage results from that negligence.
(2) The limitation on
liability provided by this section applies only if the person providing the
motor vehicle is engaged in the business of selling, renting, leasing or
repairing motor vehicles and the motor vehicle is provided to another person in
the course of that business.
(3) The limitation on
liability provided by this section applies only if there is a written agreement
between the person providing the motor vehicle and the person receiving the
motor vehicle, and the agreement specifically indicates that the person receiving
the motor vehicle is liable for any injury, death or damage arising out of the
use of the motor vehicle. The limitation on liability provided by this section
applies to injury, death or damage suffered during the period specified in the
written agreement, or until the return of the motor vehicle, whichever is
later.
(4) Notwithstanding ORS
742.526, unless a written agreement under subsection (3) of this section
provides otherwise, any insurance that is available to a person receiving a
motor vehicle under a written agreement described in subsection (3) of this
section is primary, and any insurance available to the person providing the
motor vehicle is secondary or excess insurance. If the person receiving the
motor vehicle uses the motor vehicle in the course of the person's employment,
any insurance that is available to an employer of the person providing coverage
for motor vehicles operated by employees of the employer is also primary, and
any insurance available to the person providing the motor vehicle is secondary
or excess insurance.
(5) The limitation on
liability provided by this section applies without regard to whether the motor
vehicle is provided for consideration or is provided without charge.
(6) Nothing in this section
affects the liability of a manufacturer, distributor, seller or lessor of a
product under the provisions of ORS 30.900 to 30.920.
SECTION 2.
ORS 742.450 is amended to read:
742.450. (1) Every motor vehicle liability insurance policy
issued for delivery in this state shall state the name and address of the named
insured, the coverage afforded by the policy, the premium charged therefor, the
policy period and the limits of liability.
(2) Every motor vehicle liability insurance policy issued for
delivery in this state shall contain an agreement or indorsement stating that,
as respects bodily injury and death or property damage, or both, the insurance
provides either:
(a) The coverage described in ORS 806.070 and 806.080; or
(b) The coverage described in ORS 806.270.
(3) The agreement or indorsement required by subsection (2) of
this section shall also state that the insurance provided is subject to all the
provisions of the Oregon Vehicle Code relating to financial responsibility
requirements as defined in ORS 801.280 or future responsibility filings as
defined in ORS 801.290, as appropriate.
(4) Every motor vehicle liability insurance policy issued for
delivery in this state shall provide liability coverage to at least the limits
specified in ORS 806.070.
(5) Every motor vehicle
liability insurance policy issued for delivery in this state shall provide
liability coverage, up to the limits of coverage under the policy for a vehicle
owned by the named insured, for the operation by the named insured of a motor
vehicle provided to the named insured, without regard to whether the named
insured is charged for the use of the motor vehicle, if:
(a) The motor vehicle is
provided to the named insured by a person engaged in the business of repairing
or servicing motor vehicles; and
(b) The motor vehicle is
provided to the named insured as a temporary replacement vehicle while the
named insured's vehicle is being repaired or serviced.
[(5)] (6) A motor vehicle liability
insurance policy issued for delivery in this state may exclude by name from
coverage required by subsection (2)(a) of this section any person other than
the named insured, for any of the reasons stated in subsection [(6)]
(7) of this section. When an insurer excludes a person as provided by this
subsection, the insurer shall obtain a statement or indorsement, signed by each
of the named insureds, that the policy will not provide any coverage required
by subsection (2)(a) of this section when the motor vehicle is driven by any
named excluded person.
[(6)] (7) A person may be excluded from
coverage under a motor vehicle liability insurance policy as provided in
subsection [(5)] (6) of this section:
(a) Because of the driving record of the person. The Director
of the Department of Consumer and Business Services by rule may establish
restrictions on the use of the driving record in addition to other restrictions
established by law.
(b) Because of any reason or set of criteria established by the
director by rule.
Approved by the Governor
July 1, 1999
Filed in the office of
Secretary of State July 2, 1999
Effective date October 23,
1999
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