ORS 734.695
Liability of insured of insolvent insurer

(1)

The insured of an insolvent insurer may not be personally liable for amounts due any reinsurer, insurer, insurance pool or underwriting association as subrogation recoveries or otherwise up to the applicable limits of liability provided by the insurance policy issued by the insolvent insurer.

(2)

Notwithstanding the provisions of subsection (1) of this section, and except for claims arising out of workers’ compensation policies subject to ORS chapter 656, the Oregon Insurance Guaranty Association may recover from the following persons the amount of any covered claim paid on behalf of such person under ORS 734.510 (Definitions for ORS 734.510 to 734.710) to 734.710 (Administration of delinquency proceeding claims and expenses):

(a)

Any insured whose net worth exceeds $25 million on December 31 of the year next preceding the date the insurer becomes an insolvent insurer and whose liability obligations to other persons are satisfied in whole or in part by payments made under ORS 734.510 (Definitions for ORS 734.510 to 734.710) to 734.710 (Administration of delinquency proceeding claims and expenses); and

(b)

Any person who is an affiliate of the insolvent insurer and whose liability obligations to other persons are satisfied in whole or in part by payments made under ORS 734.510 (Definitions for ORS 734.510 to 734.710) to 734.710 (Administration of delinquency proceeding claims and expenses). [1977 c.793 §4; 2001 c.974 §2]

Source: Section 734.695 — Liability of insured of insolvent insurer, https://www.­oregonlegislature.­gov/bills_laws/ors/ors734.­html.

Notes of Decisions

Under this section, only insured of insolvent insurer or persons whose allegedly actionable conduct is within coverage of insolvent insurer’s policy are relieved from potential liability for amounts due insurers as subrogation. Window Coverings, Inc. v. Campbell, 91 Or App 335, 755 P2d 719 (1988)

Exclusion of insured liability for amounts owed to reinsurer, insurer, insurance pool or underwriting association does not violate remedy clause of section 10, Article I of Oregon Constitution. Liberty Northwest Insurance v. Oregon Insurance Guarantee Association, 206 Or App 102, 136 P3d 49 (2006)

734.014
Definitions 734.026
“Domiciliary,” “ancillary” and “reciprocal state” defined 734.043
Supervision of insurer 734.047
Time for correction of condition leading to order of supervision 734.051
Actions by director during period of supervision 734.055
Action against person violating order of supervision 734.059
Request for court order 734.063
Court order 734.067
Review of court order 734.110
Jurisdiction of delinquency proceedings 734.113
Application of Oregon Receivership Code 734.120
Exclusive remedy 734.130
Commencement of delinquency proceeding 734.140
Injunctions 734.142
Cooperation with director in delinquency proceedings 734.144
Immunity of certain persons from civil liability 734.150
Grounds for rehabilitation of domestic insurers 734.160
Order of rehabilitation for domestic insurers 734.170
Grounds for liquidation of domestic insurers 734.180
Order of liquidation of domestic insurers 734.190
Grounds for conservation of foreign and alien insurers 734.200
Conservation or ancillary receivership of foreign and alien insurers 734.210
Conduct of delinquency proceedings for domestic insurers 734.220
Powers of director as receiver 734.230
Deputies and assistants 734.240
Conduct of delinquency proceedings for foreign insurers 734.250
Right of domiciliary receiver to sue in this state 734.260
Claims of nonresidents against domestic insurers 734.270
Claims of residents against foreign insurers 734.280
Form of claim 734.290
Priority of preferred claims 734.300
Priority of special deposit claims 734.310
Priority of secured claims 734.320
Attachment and garnishment of assets 734.340
Date rights fixed on liquidation 734.350
Voidable transfers 734.360
Preference of claims 734.370
Offsets 734.380
Allowance of certain claims 734.390
Time to file claims 734.400
Report for assessment 734.410
Levy of assessment 734.420
Order to pay assessment 734.430
Publication and transmittal of assessment order 734.440
Judgment upon assessment 734.510
Definitions for ORS 734.510 to 734.710 734.520
Purpose 734.530
Construction 734.540
Application 734.550
Oregon Insurance Guaranty Association 734.555
Application to association of certain laws governing corporations 734.560
Association board of directors 734.570
Required functions of association 734.575
Refunds from association deposited in General Fund 734.579
Recoupment assessments 734.580
Discretionary functions of association 734.590
Plan of operation 734.600
Contents of plan of operation 734.610
Notification to association of insurer insolvency 734.620
Notification of insolvency to insured persons 734.630
Assignment of claim rights 734.635
Disbursing assets of insolvent insurer to association 734.640
Claim priority 734.650
Notifying director of impaired insurers 734.660
Regulation of association as insurer 734.670
Exemption of association from payment of fees and taxes 734.690
Immunity from legal action 734.695
Liability of insured of insolvent insurer 734.700
Defense of claims on default of insolvent insurer 734.710
Administration of delinquency proceeding claims and expenses 734.750
Short title 734.760
Definitions for ORS 734.750 to 734.890 734.770
Purpose 734.780
Construction 734.790
Application 734.800
Oregon Life and Health Insurance Guaranty Association 734.805
Association board of directors 734.810
Duties and powers of association 734.815
Assessment of members 734.820
Plan of operation 734.825
Powers and duties of director 734.830
Notifying director of impaired insurers 734.835
Assessments offset against tax liabilities 734.840
Conduct of liquidation, rehabilitation or conservation proceeding involving impaired or insolvent insurer 734.850
Examination and regulation of association by director 734.860
Exemption of association from payment of fees and taxes 734.870
Immunity from legal action 734.880
Stay of proceeding involving insolvent insurer 734.890
Association not to be used in sales or solicitation
Green check means up to date. Up to date

Current through early 2024

§ 734.695’s source at oregon​.gov