Bill Text: OR HB2821 | 2013 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to personal injury protection benefits.

Spectrum: Committee Bill

Status: (Enrolled - Dead) 2013-06-28 - Rosenbaum serve notice of possible reconsideration. [HB2821 Detail]

Download: Oregon-2013-HB2821-Amended.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

HA to HB 2821

LC 3430/HB 2821-2

                       HOUSE AMENDMENTS TO
                         HOUSE BILL 2821

  By COMMITTEE ON CONSUMER PROTECTION AND GOVERNMENT EFFICIENCY

                             April 8

  On page 1 of the printed bill, line 2, after 'ORS' insert '
742.500, 742.502, 742.504,'.
  After line 4, insert:
  '  { +  SECTION 1. + } ORS 742.500 is amended to read:
  ' 742.500. As used in ORS 742.500 to 742.506:
  '  { +  (1) 'Bodily injury' has the meaning given that term in
ORS 742.504 (2)(a).
  ' (2) 'Insured' has the meaning given that term in ORS 742.504
(2)(c).
  ' (3) 'Motor vehicle' means every self-propelled device in,
upon or by which any person or property is or may be transported
or drawn upon a public highway, but does not include:
  ' (a) Devices used exclusively upon stationary rails or tracks;
  ' (b) Motor trucks as defined in ORS 801.355 that have a
registration weight, as defined in ORS 803.430 of more than 8,000
pounds, when the insured has employees who operate such trucks
and such employees are covered by any workers' compensation law,
disability benefits law or any similar law; or
  ' (c) Farm-type tractors or self-propelled equipment designed
for use principally off public highways.
  ' (4) 'Sums that the insured, the heirs or the legal
representative of the insured is legally entitled to recover as
damages' has the meaning given that term in ORS 742.504
(2)(j). + }
  '  { - (1) - }  { +  (5) + } 'Uninsured motorist coverage'
means coverage within the terms and conditions specified in ORS
742.504 insuring the insured, the heirs or legal representative
of the insured for all sums   { - which - }  { +  that + } the
insured   { - or they shall be - }  { + , the heirs or the legal
representative of the insured is + } legally entitled to recover
as damages for bodily injury or death caused by accident and
arising out of the ownership, maintenance or use of an uninsured
 { - motor - }  vehicle in amounts or limits not less than the
amounts or limits prescribed for bodily injury or death under ORS
806.070.
  '  { +  (6) 'Uninsured vehicle' has the meaning given that term
in ORS 742.504 (2)(k). + }
  '  { - (2) 'Motor vehicle' means every self-propelled device
in, upon or by which any person or property is or may be
transported or drawn upon a public highway, but does not
include: - }
  '  { - (a) Devices used exclusively upon stationary rails or
tracks; - }
  '  { - (b) Motor trucks as defined in ORS 801.355 that have a
registration weight, as defined by ORS 803.430 of more than 8,000
pounds, when the insured has employees who operate such trucks
and such employees are covered by any workers' compensation law,
disability benefits law or any similar law; or - }
  '  { - (c) Farm-type tractors or self-propelled equipment
designed for use principally off public highways. - }
  '  { +  SECTION 2. + } ORS 742.502 is amended to read:
  ' 742.502. (1) Every motor vehicle liability policy insuring
against loss suffered by any natural person resulting from
liability imposed by law for bodily injury or death arising out
of the ownership, maintenance or use of a motor vehicle shall
provide in the policy or by indorsement on the policy uninsured
motorist coverage when the policy is either:
  ' (a) Issued for delivery in this state; or
  ' (b) Issued or delivered by an insurer doing business in this
state with respect to any motor vehicle then principally used or
principally garaged in this state.
  ' (2)(a) A motor vehicle bodily injury liability policy shall
have the same limits for uninsured motorist coverage as for
bodily injury liability coverage unless a named insured in
writing elects lower limits. The insured may not elect limits
lower than the amounts prescribed to meet the requirements of ORS
806.070 for bodily injury or death. Uninsured motorist coverage
shall include underinsurance coverage for bodily injury or death
caused by accident and arising out of the ownership, maintenance
or use of a motor vehicle with motor vehicle liability insurance
that provides recovery in an amount that is less than the
 { - insured's uninsured motorist coverage - }  { +  sums that
the insured, the heirs or the legal representative of the insured
is legally entitled to recover as damages for bodily injury or
death caused by accident and arising out of the ownership,
maintenance or use of an uninsured vehicle + }.  Underinsurance
coverage shall be equal to   { - uninsured motorist coverage - }
 { +  the sums that the insured, the heirs or the legal
representative of the insured is legally entitled to recover as
damages for bodily injury or death caused by accident and arising
out of the ownership, maintenance or use of an uninsured
vehicle, + } less the amount recovered from other motor vehicle
liability insurance policies { + , up to the limits of the
uninsured motorist coverage + }.
  ' (b) If a named insured elects lower limits, the named insured
shall sign a statement electing lower limits within 60 days of
the time the named insured makes the election. The statement
shall acknowledge that a named insured was offered uninsured
motorist coverage with the limits equal to those for bodily
injury liability. The statement shall contain a brief summary,
which may not be construed as part of the insurance contract, of
what uninsured   { - and underinsured - }  motorist
  { - coverages - }   { + coverage and the underinsured
coverage + } provide and shall state the price for coverage with
limits equal to the named insured's bodily injury liability
limits and the price for coverage with the lower limits requested
by the named insured. The statement shall remain in force until
rescinded in writing by a named insured or until the motor
vehicle bodily injury liability limits are changed. The form of
statement used to comply with this paragraph shall be approved by
the Department of Consumer and Business Services.
  ' (c) A statement electing lower limits need not be signed when
vehicles are either added to or subtracted from a policy or when
the policy is amended, renewed, modified or replaced by the same
company or group of companies under common ownership or control
unless the liability limits of the policy are changed.
  ' (3) The insurer issuing the policy may offer one or more
options of uninsured motorist coverage larger than the amounts
prescribed to meet the requirements of ORS 806.070 and in excess
of the limits provided under the policy for motor vehicle bodily
injury liability insurance. Offers of uninsured motorist coverage
shall include underinsurance coverage for bodily injury or death
caused by accident and arising out of the ownership, maintenance
or use of a motor vehicle with motor vehicle liability insurance
that provides recovery in an amount that is less than the

  { - insured's uninsured motorist coverage - }  { +  sums that
the insured, the heirs or the legal representative of the insured
is legally entitled to recover as damages for bodily injury or
death caused by accident and arising out of the ownership,
maintenance or use of an uninsured vehicle + }. Underinsurance
coverage shall be equal to
  { - uninsured motorist coverage - }  { +  the sums that the
insured, the heirs or the legal representative of the insured is
legally entitled to recover as damages for bodily injury or death
caused by accident and arising out of the ownership, maintenance
or use of an uninsured vehicle, + } less the amount recovered
from other motor vehicle liability insurance policies { + , up to
the limits of the uninsured motorist coverage + }.
  ' (4) Underinsurance coverage is subject to ORS 742.504 and
742.542.
  ' (5) Uninsured motorist coverage and underinsurance coverage
shall provide coverage for bodily injury or death when  { - : - }

  '  { - (a) The limits for uninsured motorist coverage of the
insured equal the limits of the liability policy of the person
whose fault caused the bodily injury or death; and - }
  '  { - (b) - }  the amount of liability insurance recovered is
less than the   { - limits for uninsured motorist coverage of the
insured - }  { + sums that the insured, the heirs or the legal
representative of the insured is legally entitled to recover as
damages for bodily injury or death caused by accident and arising
out of the ownership, maintenance or use of an uninsured
vehicle + }.
  ' (6) Uninsured motorist coverage and underinsurance coverage
shall provide coverage for bodily injury or death if the amount
recovered from a self-insurer is less than the   { - limits for
uninsured motorist coverage of the insured - }  { +  sums that
the insured, the heirs or the legal representative of the insured
is legally entitled to recover as damages for bodily injury or
death caused by accident and arising out of the ownership,
maintenance or use of an uninsured vehicle + }.
  ' (7) As used in this section and except as otherwise provided
in this subsection, 'amount recovered from other motor vehicle
liability insurance policies' means the proceeds of liability
insurance or the proceeds received from a public body under ORS
30.260 to 30.300 recovered by or on behalf of the injured party.
Proceeds recovered on behalf of the injured party include
proceeds received by the injured party's insurer as reimbursement
for personal injury protection benefits provided to the injured
person, proceeds received by the medical providers of the injured
person and proceeds received as attorney fees on the claim of the
injured person. Where applicable liability insurance policy
limits are exhausted upon payment, settlement or judgment by
division among two or more injured persons, 'amount recovered
from other motor vehicle liability insurance policies' means the
proceeds that are recovered by or on behalf of the injured person
but does not include any proceeds of that liability policy
received by other injured persons.
  '  { +  SECTION 3. + } ORS 742.504 is amended to read:
  ' 742.504. Every policy required to provide the coverage
specified in ORS 742.502 shall provide uninsured motorist
coverage that in each instance is no less favorable in any
respect to the insured or the beneficiary than if the following
provisions were set forth in the policy. However, nothing
contained in this section requires the insurer to reproduce in
the policy the particular language of any of the following
provisions:
  ' (1)(a) Notwithstanding ORS 30.260 to 30.300, the insurer will
pay all sums that the insured, the heirs or the legal
representative of the insured is legally entitled to recover as

  { - general and special - }  damages from the owner or operator
of an uninsured vehicle because of bodily injury sustained by the
insured caused by accident and arising out of the ownership,
maintenance or use of the uninsured vehicle. Determination as to
whether the insured, the insured's heirs or the insured's legal
representative is legally entitled to recover such damages, and
if so, the amount thereof, shall be made by agreement between the
insured and the insurer, or, in the event of disagreement, may be
determined by arbitration as provided in subsection (10) of this
section.
  ' (b) No judgment against any person or organization alleged to
be legally responsible for bodily injury, except for proceedings
instituted against the insurer as provided in this policy, shall
be conclusive, as between the insured and the insurer, on the
issues of liability of the person or organization or of the
amount of damages to which the insured is legally entitled.
  ' (2) As used in this policy:
  ' (a) 'Bodily injury' means bodily injury, sickness or disease,
including death resulting therefrom.
  ' (b) 'Hit-and-run vehicle' means a vehicle that causes bodily
injury to an insured arising out of physical contact of the
vehicle with the insured or with a vehicle the insured is
occupying at the time of the accident, provided:
  ' (A) The identity of either the operator or the owner of the
hit-and-run vehicle cannot be ascertained;
  ' (B) The insured or someone on behalf of the insured reported
the accident within 72 hours to a police, peace or judicial
officer, to the Department of Transportation or to the equivalent
department in the state where the accident occurred, and filed
with the insurer within 30 days thereafter a statement under oath
that the insured or the legal representative of the insured has a
cause or causes of action arising out of the accident for damages
against a person or persons whose identities are unascertainable,
and setting forth the facts in support thereof; and
  ' (C) At the insurer's request, the insured or the legal
representative of the insured makes available for inspection the
vehicle the insured was occupying at the time of the accident.
  ' (c) 'Insured,' when unqualified and when applied to uninsured
motorist coverage, means:
  ' (A) The named insured as stated in the policy and any person
designated as named insured in the schedule and, while residents
of the same household, the spouse of any named insured and
relatives of either, provided that neither the relative nor the
spouse is the owner of a vehicle not described in the policy and
that, if the named insured as stated in the policy is other than
an individual or husband and wife who are residents of the same
household, the named insured shall be only a person so designated
in the schedule;
  ' (B) Any child residing in the household of the named insured
if the insured has performed the duties of a parent to the child
by rearing the child as the insured's own although the child is
not related to the insured by blood, marriage or adoption; and
  ' (C) Any other person while occupying an insured vehicle,
provided the actual use thereof is with the permission of the
named insured.
  ' (d) 'Insured vehicle,' except as provided in paragraph (e) of
this provision, means:
  ' (A) The vehicle described in the policy or a newly acquired
or substitute vehicle, as each of those terms is defined in the
public liability coverage of the policy, insured under the public
liability provisions of the policy; or
  ' (B) A nonowned vehicle operated by the named insured or
spouse if a resident of the same household, provided that the
actual use thereof is with the permission of the owner of the
vehicle and the vehicle is not owned by nor furnished for the

regular or frequent use of the insured or any member of the same
household.
  ' (e) 'Insured vehicle' does not include a trailer of any type
unless the trailer is a described vehicle in the policy.
  ' (f) 'Occupying' means in or upon or entering into or
alighting from.
  ' (g) 'Phantom vehicle' means a vehicle that causes bodily
injury to an insured arising out of a motor vehicle accident that
is caused by a vehicle that has no physical contact with the
insured or the vehicle the insured is occupying at the time of
the accident, provided:
  ' (A) The identity of either the operator or the owner of the
phantom vehicle cannot be ascertained;
  ' (B) The facts of the accident can be corroborated by
competent evidence other than the testimony of the insured or any
person having an uninsured motorist claim resulting from the
accident; and
  ' (C) The insured or someone on behalf of the insured reported
the accident within 72 hours to a police, peace or judicial
officer, to the Department of Transportation or to the equivalent
department in the state where the accident occurred, and filed
with the insurer within 30 days thereafter a statement under oath
that the insured or the legal representative of the insured has a
cause or causes of action arising out of the accident for damages
against a person or persons whose identities are unascertainable,
and setting forth the facts in support thereof.
  ' (h) 'State' includes the District of Columbia, a territory or
possession of the United States and a province of Canada.
  ' (i) 'Stolen vehicle' means an insured vehicle that causes
bodily injury to the insured arising out of a motor vehicle
accident if:
  ' (A) The vehicle is operated without the consent of the
insured;
  ' (B) The operator of the vehicle does not have collectible
motor vehicle bodily injury liability insurance;
  ' (C) The insured or someone on behalf of the insured reported
the accident within 72 hours to a police, peace or judicial
officer or to the equivalent department in the state where the
accident occurred; and
  ' (D) The insured or someone on behalf of the insured
cooperates with the appropriate law enforcement agency in the
prosecution of the theft of the vehicle.
  ' (j) 'Sums that the insured, the heirs or the legal
representative of the insured is legally entitled to recover as
  { - general and special - }  damages { +  ' + }   { - from the
owner or operator of an uninsured vehicle' - }  means the amount
of damages that:
  ' (A) A claimant could have recovered in a civil action from
the owner or operator at the time of the injury after
determination of fault or comparative fault and resolution of any
applicable defenses;
  ' (B) Are calculated without regard to the tort claims
limitations of ORS 30.260 to 30.300; and
  ' (C) Are no larger than benefits payable under the terms of
the policy as provided in subsection (7) of this section.
  ' (k) 'Uninsured vehicle,' except as provided in paragraph (L)
of this provision, means:
  ' (A) A vehicle with respect to the ownership, maintenance or
use of which there is no collectible motor vehicle bodily injury
liability insurance, in at least the amounts or limits prescribed
for bodily injury or death under ORS 806.070 applicable at the
time of the accident with respect to any person or organization
legally responsible for the use of the vehicle, or with respect
to which there is collectible bodily injury liability insurance
applicable at the time of the accident but the insurance company
writing the insurance denies coverage or the company writing the
insurance becomes voluntarily or involuntarily declared bankrupt
or for which a receiver is appointed or becomes insolvent. It
shall be a disputable presumption that a vehicle is uninsured in
the event the insured and the insurer, after reasonable efforts,
fail to discover within 90 days from the date of the accident,
the existence of a valid and collectible motor vehicle bodily
injury liability insurance applicable at the time of the
accident.
  ' (B) A hit-and-run vehicle.
  ' (C) A phantom vehicle.
  ' (D) A stolen vehicle.
  ' (E) A vehicle that is owned or operated by a self-insurer:
  ' (i) That is not in compliance with ORS 806.130 (1)(c); or
  ' (ii) That provides recovery to an insured in an amount that
is less than the   { - limits for uninsured motorist coverage of
the insured - }  { +  sums that the insured, the heirs or the
legal representative of the insured is legally entitled to
recover as damages for bodily injury or death caused by accident
and arising out of the ownership, maintenance or use of an
uninsured vehicle + }.
  ' (L) 'Uninsured vehicle' does not include:
  ' (A) An insured vehicle, unless the vehicle is a stolen
vehicle;
  ' (B) Except as provided in paragraph (k)(E) of this
subsection, a vehicle that is owned or operated by a self-insurer
within the meaning of any motor vehicle financial responsibility
law, motor carrier law or any similar law;
  ' (C) A vehicle that is owned by the United States of America,
Canada, a state, a political subdivision of any such government
or an agency of any such government;
  ' (D) A land motor vehicle or trailer, if operated on rails or
crawler-treads or while located for use as a residence or
premises and not as a vehicle;
  ' (E) A farm-type tractor or equipment designed for use
principally off public roads, except while actually upon public
roads; or
  ' (F) A vehicle owned by or furnished for the regular or
frequent use of the insured or any member of the household of the
insured.
  ' (m) 'Vehicle' means every device in, upon or by which any
person or property is or may be transported or drawn upon a
public highway, but does not include devices moved by human power
or used exclusively upon stationary rails or tracks.
  ' (3) This coverage applies only to accidents that occur on and
after the effective date of the policy, during the policy period
and within the United States of America, its territories or
possessions, or Canada.
  ' (4)(a) This coverage does not apply to bodily injury of an
insured with respect to which the insured or the legal
representative of the insured shall, without the written consent
of the insurer, make any settlement with or prosecute to judgment
any action against any person or organization who may be legally
liable therefor.
  ' (b) This coverage does not apply to bodily injury to an
insured while occupying a vehicle, other than an insured vehicle,
owned by, or furnished for the regular use of, the named insured
or any relative resident in the same household, or through being
struck by the vehicle.
  ' (c) This coverage does not apply so as to inure directly or
indirectly to the benefit of any workers' compensation carrier,
any person or organization qualifying as a self-insurer under any
workers' compensation or disability benefits law or any similar
law or the State Accident Insurance Fund Corporation.
  ' (d) This coverage does not apply with respect to underinsured
motorist benefits unless:

  ' (A) The limits of liability under any bodily injury liability
insurance applicable at the time of the accident regarding the
injured person have been exhausted by payment of judgments or
settlements to the injured person or other injured persons;
  ' (B) The described limits have been offered in settlement, the
insurer has refused consent under paragraph (a) of this
subsection and the insured protects the insurer's right of
subrogation to the claim against the tortfeasor;
  ' (C) The insured gives credit to the insurer for the
unrealized portion of the described liability limits as if the
full limits had been received if less than the described limits
have been offered in settlement, and the insurer has consented
under paragraph (a) of this subsection; or
  ' (D) The insured gives credit to the insurer for the
unrealized portion of the described liability limits as if the
full limits had been received if less than the described limits
have been offered in settlement and, if the insurer has refused
consent under paragraph (a) of this subsection, the insured
protects the insurer's right of subrogation to the claim against
the tortfeasor.
  ' (e) When seeking consent under paragraph (a) or (d) of this
subsection, the insured shall allow the insurer a reasonable time
in which to collect and evaluate information related to consent
to the proposed offer of settlement. The insured shall provide
promptly to the insurer any information that is reasonably
requested by the insurer and that is within the custody and
control of the insured. Consent will be presumed to be given if
the insurer does not respond within a reasonable time. For
purposes of this paragraph, a 'reasonable time' is no more than
30 days from the insurer's receipt of a written request for
consent, unless the insured and the insurer agree otherwise.
  ' (5)(a) As soon as practicable, the insured or other person
making claim shall give to the insurer written proof of claim,
under oath if required, including full particulars of the nature
and extent of the injuries, treatment and other details entering
into the determination of the amount payable hereunder. The
insured and every other person making claim hereunder shall
submit to examinations under oath by any person named by the
insurer and subscribe the same, as often as may reasonably be
required. Proof of claim shall be made upon forms furnished by
the insurer unless the insurer fails to furnish the forms within
15 days after receiving notice of claim.
  ' (b) Upon reasonable request of and at the expense of the
insurer, the injured person shall submit to physical examinations
by physicians selected by the insurer and shall, upon each
request from the insurer, execute authorization to enable the
insurer to obtain medical reports and copies of records.
  ' (6) If, before the insurer makes payment of loss hereunder,
the insured or the legal representative of the insured institutes
any legal action for bodily injury against any person or
organization legally responsible for the use of a vehicle
involved in the accident, a copy of the summons and complaint or
other process served in connection with the legal action shall be
forwarded immediately to the insurer by the insured or the legal
representative of the insured.
  ' (7)(a) The limit of liability stated in the declarations as
applicable to 'each person' is the limit of the insurer's
liability for all damages because of bodily injury sustained by
one person as the result of any one accident and, subject to the
above provision respecting each person, the limit of liability
stated in the declarations as applicable to 'each accident' is
the total limit of the company's liability for all damages
because of bodily injury sustained by two or more persons as the
result of any one accident.
  ' (b) Any payment made under this coverage to or for an insured
shall be applied in reduction of any amount that the insured may
be entitled to recover from any person who is an insured under
the bodily injury liability coverage of this policy.
  ' (c) Any amount payable under the terms of this coverage
because of bodily injury sustained in an accident by a person who
is an insured under this coverage shall be reduced by  { - : - }
  '  { - (A) All sums paid on account of the bodily injury by or
on behalf of the owner or operator of the uninsured vehicle and
by or on behalf of any other person or organization jointly or
severally liable together with the owner or operator for the
bodily injury, including all sums paid under the bodily injury
liability coverage of the policy; and - }
  '  { - (B) - }  the amount paid and the present value of all
amounts payable on account of the bodily injury under any
workers' compensation law, disability benefits law or any similar
law.
  ' (d) Any amount payable under the terms of this coverage
because of bodily injury sustained in an accident by a person who
is an insured under this coverage shall be reduced by the credit
given to the insurer pursuant to subsection (4)(d)(C) or (D) of
this section.
  ' (e) The amount payable under the terms of this coverage may
not be reduced by the amount of liability proceeds offered,
described in subsection (4)(d)(B) or (D) of this section, that
has not been paid to the injured person. If liability proceeds
have been offered and not paid, the amount payable under the
terms of the coverage shall include the amount of liability
limits offered but not accepted due to the insurer's refusal to
consent. The insured shall cooperate so as to permit the insurer
to proceed by subrogation or assignment to prosecute the claim
against the uninsured motorist.
  ' (8) No action shall lie against the insurer unless, as a
condition precedent thereto, the insured or the legal
representative of the insured has fully complied with all the
terms of this policy.
  ' (9)(a) With respect to bodily injury to an insured:
  ' (A) While occupying a vehicle owned by a named insured under
this coverage, the insurance under this coverage is primary.
  ' (B) While occupying a vehicle not owned by a named insured
under this coverage, the insurance under this coverage shall
apply only as excess insurance over any primary insurance
available to the occupant that is similar to this coverage, and
this excess insurance  { + coverage + } shall then apply only
 { - in - }  { +  to + } the amount by which the   { - applicable
limit of liability of this excess coverage exceeds the sum of - }
 { +  sums that the insured, the heirs or the legal
representative of the insured is legally entitled to recover as
damages for bodily injury or death caused by accident and arising
out of the ownership, maintenance or use of an uninsured vehicle
exceed + } the applicable limits of liability of all primary
insurance available to the occupant.
  ' (b) If an insured is an insured under other primary or excess
insurance available to the insured that is similar to this
coverage, then   { - the insured's damages are deemed not to
exceed the higher of the applicable limits of liability of this
insurance or the additional primary or excess insurance available
to the insured, and - }  the insurer is not liable under this
coverage for a greater proportion of the insured's damages than
the applicable limit of liability of this coverage bears to the
sum of the applicable limits of liability of this insurance and
other primary or excess insurance available to the insured.
  ' (c) With respect to bodily injury to an insured while
occupying any motor vehicle used as a public or livery
conveyance, the insurance under this coverage shall apply only as
excess insurance over any other insurance available to the
insured that is similar to this coverage, and this
 { + excess + } insurance  { + coverage + } shall then apply only
 { - in - }   { + to + } the amount by which the applicable limit
of liability of this coverage exceeds the sum of the applicable
limits of liability of all other insurance.
  ' (10) If any person making claim hereunder and the insurer do
not agree that the person is legally entitled to recover damages
from the owner or operator of an uninsured vehicle because of
bodily injury to the insured, or do not agree as to the amount of
payment that may be owing under this coverage, then, in the event
the insured and the insurer elect by mutual agreement at the time
of the dispute to settle the matter by arbitration, the
arbitration shall take place as described in ORS 742.505. Any
judgment upon the award rendered by the arbitrators may be
entered in any court having jurisdiction thereof, provided,
however, that the costs to the insured of the arbitration
proceeding do not exceed $100 and that all other costs of
arbitration are borne by the insurer. 'Costs' as used in this
provision does not include attorney fees or expenses incurred in
the production of evidence or witnesses or the making of
transcripts of the arbitration proceedings. The person and the
insurer each agree to consider themselves bound and to be bound
by any award made by the arbitrators pursuant to this coverage in
the event of such election. At the election of the insured, the
arbitration shall be held:
  ' (a) In the county and state of residence of the insured;
  ' (b) In the county and state where the insured's cause of
action against the uninsured motorist arose; or
  ' (c) At any other place mutually agreed upon by the insured
and the insurer.
  ' (11) In the event of payment to any person under this
coverage:
  ' (a) The insurer shall be entitled to the extent of the
payment to the proceeds of any settlement or judgment that may
result from the exercise of any rights of recovery of the person
against any uninsured motorist legally responsible for the bodily
injury because of which payment is made;
  ' (b) The person shall hold in trust for the benefit of the
insurer all rights of recovery that the person shall have against
such other uninsured person or organization because of the
damages that are the subject of claim made under this coverage,
but only to the extent that the claim is made or paid herein;
  ' (c) If the insured is injured by the joint or concurrent act
or acts of two or more persons, one or more of whom is uninsured,
the insured shall have the election to receive from the insurer
any payment to which the insured would be entitled under this
coverage by reason of the act or acts of the uninsured motorist,
or the insured may, with the written consent of the insurer,
proceed with legal action against any or all persons claimed to
be liable to the insured for the injuries. If the insured elects
to receive payment from the insurer under this coverage, then the
insured shall hold in trust for the benefit of the insurer all
rights of recovery the insured shall have against any other
person, firm or organization because of the damages that are the
subject of claim made under this coverage, but only to the extent
of the actual payment made by the insurer;
  ' (d) The person shall do whatever is proper to secure and
shall do nothing after loss to prejudice such rights;
  ' (e) If requested in writing by the insurer, the person shall
take, through any representative not in conflict in interest with
the person, designated by the insurer, such action as may be
necessary or appropriate to recover payment as damages from such
other uninsured person or organization, such action to be taken
in the name of the person, but only to the extent of the payment
made hereunder. In the event of a recovery, the insurer shall be
reimbursed out of the recovery for expenses, costs and attorney
fees incurred by the insurer in connection therewith; and

  ' (f) The person shall execute and deliver to the insurer any
instruments and papers as may be appropriate to secure the rights
and obligations of the person and the insurer established by this
provision.
  ' (12)(a) The parties to this coverage agree that no cause of
action shall accrue to the insured under this coverage unless
within two years from the date of the accident:
  ' (A) Agreement as to the amount due under the policy has been
concluded;
  ' (B) The insured or the insurer has formally instituted
arbitration proceedings;
  ' (C) The insured has filed an action against the insurer; or
  ' (D) Suit for bodily injury has been filed against the
uninsured motorist and, within two years from the date of
settlement or final judgment against the uninsured motorist, the
insured has formally instituted arbitration proceedings or filed
an action against the insurer.
  ' (b) For purposes of this subsection:
  ' (A) 'Date of settlement' means the date on which a written
settlement agreement or release is signed by an insured or, in
the absence of these documents, the date on which the insured or
the attorney for the insured receives payment of any sum required
by the settlement agreement. An advance payment as defined in ORS
31.550 shall not be deemed a payment of a settlement for purposes
of the time limitation in this subsection.
  ' (B) 'Final judgment' means a judgment that has become final
by lapse of time for appeal or by entry in an appellate court of
an appellate judgment.'.
  In line 5, delete '1' and insert '4'.
  In line 18, delete '2' and insert '5'.
  On page 2, line 27, delete '3' and insert '6' and after ' ORS'
insert '742.502, 742.504,' and delete '1 and 2' and insert '2 to
5'.
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