Financial Responsibility Law

ORS 806.130
Self-insurance


(1)

To qualify as a self-insurer for purposes of financial responsibility requirements under ORS 806.060 (Methods of compliance), a person must do all of the following:

(a)

Apply to the Department of Transportation and be issued by the department a certificate of self-insurance under ORS 806.140 (Certificate).

(b)

Either:

(A)

Establish to the satisfaction of the department that the person possesses and will continue to possess the ability to pay and discharge judgments described under ORS 806.040 (Judgments for which financial responsibility requirements established) that might be obtained against the applicant; or

(B)

Be qualified under the laws of the State of Oregon or under an ordinance of a city of this state to act as a self-insurer and be acting as a self-insurer.

(c)

Agree to provide the same coverage and to pay the same amounts with respect to an accident occurring while the certificate is in force that an insurer would be obligated to provide and to pay under a motor vehicle liability insurance policy, including providing the coverage required under ORS 806.080 (Insurance) (1)(b) and uninsured motorist coverage and liability coverage to at least the limits specified in ORS 806.070 (Minimum payment schedule).

(d)

Have more than 25 motor vehicles including commercial buses registered in the person’s name.

(2)

(a) If an accident occurs while a certificate of self-insurance issued under ORS 806.140 (Certificate) is in force, the liability protection provided and the amounts paid under subsection (1)(c) of this section are secondary to any motor vehicle liability insurance or uninsured motorist coverage available to a customer of the self-insurer, an operator of the self-insured vehicle or an occupant of the self-insured vehicle unless otherwise agreed to by the self-insurer. A self-insurer is required to provide the minimum payments established under ORS 742.502 (Uninsured motorist coverage) and 806.070 (Minimum payment schedule) only when the motor vehicle liability insurance policy of a customer of the self-insurer or an operator of the self-insured vehicle does not provide the minimum required payments established in ORS 742.502 (Uninsured motorist coverage) and 806.070 (Minimum payment schedule).

(b)

A self-insurer may recover from a customer of the self-insurer or an operator of the self-insured vehicle the amounts paid under subsection (1)(c) of this section.

(3)

Nothing in this section requires a self-insurer to provide liability coverage when a person is operating the vehicle without permission of the self-insurer. [1983 c.338 §849; 1985 c.16 §430; 2007 c.287 §1]

Notes of Decisions

Self-insurer is not subject to requirement that coverage be supplied to all users of vehicle. Farmers Ins. Co. v. Snappy Car Rental, Inc., 128 Or App 516, 876 P2d 833 (1994), Sup Ct review denied

Self-insurer is not subject to ORS 742.450 provision specifying amount of uninsured motorist coverage to be provided by motor vehicle liability insurance policy. Thompson v. Estate of Adrian L. Pannell, 176 Or App 90, 29 P3d 1184 (2001), Sup Ct review denied

Law Review Citations

44 WLR 253 (2007)

Chapter 806

Notes of Decisions

Under Former Similar Statutes (Ors Chapter 486)

When a driver is involved in an accident that otherwise brings him within the purview of this chapter, he must thereafter file proof of future responsibility regardless of whether or not there is a reasonable possibility he was in any degree at fault in the accident. Boykin v. Ott, 10 Or App 210, 498 P2d 815 (1972), Sup Ct review denied, app. dis., 411 US 912, 36 L Ed 2d 304, 93 S Ct 1554

This chapter was not unconstitutional as denying due process or equal protection of the laws under the U.S. Constitution. Boykin v. Ott, 10 Or App 210, 498 P2d 815 (1972), Sup Ct review denied, app. dis., 411 US 912, 36 L Ed 2d 304, 93 S Ct 1554

This act does not require coverage for intentionally inflicted injuries or damages. Snyder v. Nelson/Leatherby Ins., 278 Or 409, 564 P2d 681 (1977)

Intentional infliction of injury or damage occurs where injury or damage sustained was intended result of action. Snyder v. Nelson/Leatherby Ins., 278 Or 409, 564 P2d 681 (1977)

Motor vehicle liability policy issued pursuant to Financial Responsibility Law must provide coverage for liability arising from physical injuries to relatives of insured who reside in insured's household. Dowdy v. Allstate Ins. Co., 68 Or App 709, 685 P2d 444 (1984), Sup Ct review denied

In General

Financial responsibility laws generally are to ensure that drivers can respond in damages for liability and especially to ensure that motor vehicle accident victims are compensated for injuries. State Farm Fire and Casualty Co. v. Jones, 306 Or 415, 759 P2d 271 (1988)

Car insurance policy violated Financial Responsibility Law where it excluded liability coverage for permissive user's injury of insured while driving insured's car. State Farm Fire and Casualty Co. v. Jones, 306 Or 415, 759 P2d 271 (1988)

Automobile insurance policy must cover not only named insured but also must provide coverage for all persons who operate insured vehicle with consent of insured. Viking Ins. Co. v. Petersen, 308 Or 616, 784 P2d 437 (1989)

Where Financial Responsibility Law requires motor vehicle insurance policies to insure against all liability arising out of motor vehicle "ownership, operation, use or maintenance," insurer's named driver policy which insurer sold to insured in connection with insured's vehicle must be construed as providing coverage by law and insurer is responsible for insured's defense. Viking Ins. Co. v. Perotti, 308 Or 623, 784 P2d 1081 (1989)

Family exclusion provision of policy is ineffective only as to statutorily required minimum amounts; insurer may limit additional coverage by any exclusion not otherwise prohibited by law. Collins v. Farmers Ins. Co., 312 Or 337, 822 P2d 1146 (1991); Farmers Insurance Co. v. Mowry, 350 Or 686, 261 P3d 1 (2011)

Atty. Gen. Opinions

Under Former Similar Statutes (Ors Chapter 486)

Financial responsibility certification date and necessary information, (1978) Vol 38, p 1876

Law Review Citations

Under Former Similar Statutes (Ors Chapter 486)

8 WLJ 77-84 (1972); 12 WLJ 406-412 (1976)


Source

Last accessed
Jun. 26, 2021