2017 ORS 734.630¹
Assignment of claim rights
  • filing statements of paid claims
  • effect of claim settlements

(1) Any person who recovers on a covered claim under ORS 734.510 (Definitions for ORS 734.510 to 734.710) to 734.710 (Administration of delinquency proceeding claims and expenses) thereby assigns the rights of the person under the insurance policy to the Oregon Insurance Guaranty Association to the extent of such recovery. Every person who seeks the protection of ORS 734.510 (Definitions for ORS 734.510 to 734.710) to 734.710 (Administration of delinquency proceeding claims and expenses) shall cooperate with the association to the same extent such person would have been required to cooperate with the insolvent insurer. The association shall have no cause of action against the insureds of an insolvent insurer for any sums paid, except for those causes of action the insolvent insurer would have had if such sums had been paid by the insolvent insurer. If an insolvent insurer operates on the assessment plan, the payment of claims by the association does not reduce the liability of the insured to the receiver for unpaid assessments.

(2) Periodically the association shall file with the receiver statements of the covered claims paid by the association and estimates of anticipated claims against the association. Such filings shall preserve the rights of the association against the assets of the insolvent insurer.

(3) The receiver shall be bound by settlements of covered claims by the association or a similar organization in another state. The court having jurisdiction shall grant such claims priority in accordance with ORS 734.360 (Preference of claims). [1971 c.616 §14; 2001 c.974 §4]

Notes of Decisions

SAIF’s lien against proceeds of recoveries by injured workers in third-party ac­tions does not attach to pay­ments to worker by Oregon Insurance Guarantee Associa­tion acting in place of insolvent insurer. Corvallis Aero Service v. Villalobos, 81 Or App 137, 724 P2d 880 (1986), Sup Ct review denied

Automobile dealers insured for losses attributable to service contracts were not entitled to recover unearned premiums from OIGA after member insurer became insolvent when dealers’ policy with insolvent insurer specifically provided there was no right to return of unearned premiums if policy was canceled. Oregon Ins. Guaranty Assn. v. Ac­tion Chrysler, 109 Or App 556, 820 P2d 846 (1991)

Where member of Oregon Insurance Guaranty Associa­tion merges with nonmember insurer and then becomes insolvent, claims arising before merger against policies issued by nonmember insurer are not covered by associa­tion. Palmrose v. Oregon Insurance Guaranty Associa­tion, 205 Or App 613, 135 P3d 370 (2006)

Chapter 734

Atty. Gen. Opinions

State is not liable for losses incurred by Oregon Medical Insurance Pool and pools’ policy holders bear ultimate risk of pools’ insolvency, in that there would be no source of funds to pay benefits under their policies, (1989) Vol 46, p 155

1 Legislative Counsel Committee, CHAPTER 734—Rehabilitation, Liquidation and Conservation of Insurers, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors734.­html (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 734, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano734.­html (2017) (last ac­cessed Mar. 30, 2018).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.