Reimbursement of other insurers paying benefits
- arbitrating issues of liability and amount of reimbursement
Source:
Section 742.534 — Reimbursement of other insurers paying benefits; arbitrating issues of liability and amount of reimbursement, https://www.oregonlegislature.gov/bills_laws/ors/ors742.html.
Notes of Decisions
An insurer who makes recovery from third party for moneys paid its insured is only required to pay attorney fees which were “reasonably and necessarily incurred” to make recovery; and, absent an agreement to contrary, an insurer is only obligated for attorney fees if it is benefited. Ridenour v. Nationwide Mut. Ins. Co., 273 Or 514, 541 P2d 1377 (1975)
No reimbursement could be compelled against insurer of party allegedly at fault by insurer who made personal injury payments if action by plaintiff-insured was barred by statute of limitations. West American Ins. Co. v. Nationwide Mutual Ins. Co., 39 Or App 525, 593 P2d 796 (1979), Sup Ct review denied
Reference to furnishing of benefits by “another insurer” and “other insurer” does not preclude insurer who by chance insures both vehicles from offset provided by [former] ORS 18.510. State Farm Mut. Auto Ins. v. Sommerholder, 65 Or App 449, 671 P2d 1194 (1983), Sup Ct review denied
“Authorized” motor vehicle liability insurer which is required to reimburse another such insurer for amount paid by it to insured for PIP benefits is not entitled to credit in that amount in determining whether reimbursing insurer has exhausted liability policy limits in settling claim against its insured by payee of the PIP benefits where payee’s damages are in excess of liability policy limits. Kessler v. Weigandt, 299 Or 38, 699 P2d 183 (1985)
Formal acknowledgment of obligation under this section to reimburse constitutes “reimbursement payment” within meaning of [former] ORS 18.510 (PIP reimbursement payments). Dougherty v. Gelco Express Corp., 79 Or App 490, 719 P2d 906 (1986)
When insurer paid passenger injured in motor vehicle accident amount equal to liability limits of insured’s policy, this section prevented further exposure to other insurer. Farmers Ins. Co. v. American Fire & Casualty, 117 Or App 347, 844 P2d 235 (1992), Sup Ct review denied
Statement that insurer would proceed pursuant to PIP reimbursement procedure was not “reimbursement payment” within meaning of [former] ORS 18.510 because insurer did not commit to specific payment amount. Heintz v. Baxter, 120 Or App 603, 853 P2d 320 (1993), Sup Ct review denied
Interinsurer reimbursement is not available for underinsured motorist coverage paid to injured insured. Providence Health Plan v. Charriere, 666 F. Supp. 2d 1169 (D. Or. 2009)
Section requires arbitration of any potential dispute pertaining to interinsurer reimbursement. California Casualty Indemnity v. Federated Mutual, 251 Or App 371, 286 P3d 901 (2012), Sup Ct review denied
Up to date