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

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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-Engrossed.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 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 3430

                           A-Engrossed

                         House Bill 2821
                  Ordered by the House April 8
            Including House Amendments dated April 8

Sponsored by COMMITTEE ON CONSUMER PROTECTION AND GOVERNMENT
  EFFICIENCY

                             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.

   { +  Requires insurer to pay claims up to maximum coverage
under policy of uninsured motorist coverage based on insured's
total damages for personal injuries, less amounts recovered from
other motor vehicle liability insurance policies. + }
  Modifies amount of reimbursement due personal injury protection
provider when total benefits exceed damages.
  Extends personal injury protection benefit coverage for certain
expenses from one year after date of injury to two years after
date of injury.

                        A BILL FOR AN ACT
Relating to personal injury protection benefits; creating new
  provisions; and amending ORS 742.500, 742.502, 742.504, 742.524
  and 742.544.
Be It Enacted by the People of the State of Oregon:
  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.
  SECTION 4. ORS 742.544 is amended to read:
  742.544. (1) A provider of personal injury protection benefits
shall be reimbursed for personal injury protection payments made
on behalf of any person only to the extent that the total amount
of benefits paid exceeds the   { - economic - }  damages   { - as
defined in ORS 31.710 - }  suffered by that person. As used in
this section, 'total amount of benefits' means the amount of
money recovered by a person from:
  (a) Applicable underinsured motorist benefits described in ORS
742.502 (2);
  (b) Liability insurance coverage available to the person
receiving the personal injury protection benefits from other
parties to the accident;
  (c) Personal injury protection payments; and
  (d) Any other payments by or on behalf of the party whose fault
caused the damages.
  (2) Nothing in this section requires a person to repay more
than the amount of personal injury protection benefits actually
received.
  SECTION 5. ORS 742.524 is amended to read:
  742.524. (1) Personal injury protection benefits as required by
ORS 742.520 shall consist of the following payments for the
injury or death of each person:
  (a) All reasonable and necessary expenses of medical, hospital,
dental, surgical, ambulance and prosthetic services incurred
within   { - one year - }  { +  two years + } after the date of
the person's injury, but not more than $15,000 in the aggregate
for all such expenses of the person. Expenses of medical,
hospital, dental, surgical, ambulance and prosthetic services
shall be presumed to be reasonable and necessary unless the
provider is given notice of denial of the charges not more than
60 calendar days after the insurer receives from the provider
notice of the claim for the services. At any time during the
first 50 calendar days after the insurer receives notice of
claim, the provider shall, within 10 business days, answer in
writing questions from the insurer regarding the claim. For
purposes of determining when the 60-day period provided by this
paragraph has elapsed, counting of days shall be suspended if the
provider does not supply written answers to the insurer within 10
days and may not resume until the answers are supplied.
  (b) If the injured person is usually engaged in a remunerative
occupation and if disability continues for at least 14 days, 70
percent of the loss of income from work during the period of the
injured person's disability until the date the person is able to
return to the person's usual occupation. This benefit is subject
to a maximum payment of $3,000 per month and a maximum payment
period in the aggregate of 52 weeks. As used in this paragraph,
'income' includes but is not limited to salary, wages, tips,
commissions, professional fees and profits from an individually
owned business or farm.
  (c) If the injured person is not usually engaged in a
remunerative occupation and if disability continues for at least
14 days, the expenses reasonably incurred by the injured person
for essential services that were performed by a person who is not
related to the injured person or residing in the injured person's
household in lieu of the services the injured person would have
performed without income during the period of the person's
disability until the date the person is reasonably able to
perform such essential services. This benefit is subject to a
maximum payment of $30 per day and a maximum payment period in
the aggregate of 52 weeks.
  (d) All reasonable and necessary funeral expenses incurred
within one year after the date of the person's injury, but not
more than $5,000.
  (e) If the injured person is a parent of a minor child and is
required to be hospitalized for a minimum of 24 hours, $25 per
day for child care, with payments to begin after the initial 24
hours of hospitalization and to be made for as long as the person
is unable to return to work if the person is engaged in a
remunerative occupation or for as long as the person is unable to
perform essential services that the person would have performed
without income if the person is not usually engaged in a
remunerative occupation, but not to exceed $750.
  (2) With respect to the insured person and members of that
person's family residing in the same household, an insurer may
offer forms of coverage for the benefits required by subsection
(1)(a), (b) and (c) of this section with deductibles of up to
$250.
  SECTION 6.  { + The amendments to ORS 742.502, 742.504, 742.524
and 742.544 by sections 2 to 5 of this 2013 Act apply to motor
vehicle liability policies issued or renewed on or after the
effective date of this 2013 Act. + }
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