2017 ORS 742.232¹

A fire insurance policy shall contain a provision as follows: “In case the insured and this company shall fail to agree as to the actual cash value or the amount of loss, then, on the written demand of either, each shall select a competent and disinterested appraiser and notify the other of the appraiser selected within 20 days of such demand. The appraisers shall first select a competent and disinterested umpire; and failing for 15 days to agree upon such umpire, then, on request of the insured or this company, such umpire shall be selected by a judge of a court of record in the state in which the property covered is located. The appraisers shall then appraise the loss, stating separately actual cash value and loss to each item; and, failing to agree, shall submit their differences, only, to the umpire. An award in writing, so itemized, of any two when filed with this company shall determine the amount of actual cash value and loss. Each appraiser shall be paid by the party selecting the appraiser and the expenses of appraisal and umpire shall be paid by the parties equally.” [Formerly 743.648]

(formerly 743.648)

See also annota­tions under ORS 743.648 in permanent edi­tion.

Notes of Decisions

Where defendant-insurers demanded appraisal under this sec­tion to determine actual cash value of plaintiff’s building which was destroyed by fire, ac­tion by plaintiffs, seeking determina­tion of various policy pro­vi­sions relevant to fixing amount of loss, was premature and this sec­tion, together with [former] ORS 743.660, re­quired plaintiffs to proceed with the appraisal before bringing declaratory judg­ment ac­tion. Director v. So. Carolina Ins. Co., 49 Or App 179, 619 P2d 649 (1980), Sup Ct review denied

This sec­tion, in requiring that all fire insurance policies sold in state include pro­vi­sion that disputed amounts of loss be submitted to appraisal does not violate Article I, sec­tion 17, of Oregon Constitu­tion by depriving plaintiff of right to jury trial when construed as non-binding as to party who does not demand appraisal. Molodyh v. Truck Insurance Exchange, 304 Or 290, 744 P2d 992 (1987)

Law Review Cita­tions

31 WLR 737 (1995)

1 Legislative Counsel Committee, CHAPTER 742—Insurance Policies Generally; Property and Casualty Policies, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors742.­html (2017) (last ac­cessed Mar. 30, 2018).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 742, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano742.­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.