2015 ORS 742.450¹
Contents of motor vehicle liability policy
  • permitted exclusions

(1) Every motor vehicle liability insurance policy issued for delivery in this state shall state the name and address of the named insured, the coverage afforded by the policy, the premium charged therefor, the policy period and the limits of liability.

(2) Every motor vehicle liability insurance policy issued for delivery in this state shall contain an agreement or indorsement stating that, as respects bodily injury and death or property damage, or both, the insurance provides either:

(a) The coverage described in ORS 806.070 (Minimum payment schedule) and 806.080 (Insurance); or

(b) The coverage described in ORS 806.270 (Certificate of insurance).

(3) The agreement or indorsement required by subsection (2) of this section shall also state that the insurance provided is subject to all the provisions of the Oregon Vehicle Code relating to financial responsibility requirements as defined in ORS 801.280 ("Financial responsibility requirements") or future responsibility filings as defined in ORS 801.290 ("Future responsibility filing"), as appropriate.

(4) Every motor vehicle liability insurance policy issued for delivery in this state shall provide liability coverage to at least the limits specified in ORS 806.070 (Minimum payment schedule).

(5) Every motor vehicle liability insurance policy issued for delivery in this state shall provide liability coverage, up to the limits of coverage under the policy for a vehicle owned by the named insured, for the operation by the named insured of a motor vehicle provided to the named insured, without regard to whether the named insured is charged for the use of the motor vehicle, if:

(a) The motor vehicle is provided to the named insured by a person engaged in the business of repairing or servicing motor vehicles; and

(b) The motor vehicle is provided to the named insured as a temporary replacement vehicle while the named insured’s vehicle is being repaired or serviced.

(6) A motor vehicle liability insurance policy issued for delivery in this state may exclude by name from coverage required by subsection (2)(a) of this section any person other than the named insured, for any of the reasons stated in subsection (7) of this section. When an insurer excludes a person as provided by this subsection, the insurer shall obtain a statement or indorsement, signed by each of the named insureds, that the policy will not provide any coverage required by subsection (2)(a) of this section when the motor vehicle is driven by any named excluded person.

(7) A person may be excluded from coverage under a motor vehicle liability insurance policy as provided in subsection (6) of this section:

(a) Because of the driving record of the person. The Director of the Department of Consumer and Business Services by rule may establish restrictions on the use of the driving record in addition to other restrictions established by law.

(b) Because of any reason or set of criteria established by the director by rule.

(8) Every motor vehicle liability insurance policy issued for delivery in this state shall contain a provision that provides liability coverage for each family member of the insured residing in the same household as the insured in an amount equal to the amount of liability coverage purchased by the insured. [Formerly 486.541 and then 743.776; 1991 c.768 §3; 1999 c.438 §2; 2007 c.782 §1]

(formerly 486.541, then 743.776)

See also annota­tions under ORS 486.541 in permanent edi­tion.

Notes of Decisions

This sec­tion, together with ORS 806.070 (Minimum payment schedule), does not mandate omnibus coverage to limits set forth in ORS 806.070 (Minimum payment schedule). Shell Oil Co. v. Employers Ins. of Wausau, 69 Or App 179, 684 P2d 622 (1984)

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)

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)

"State­ment" excluding per­son from policy coverage may be embodied as recital in insurance applica­tion form. Progressive Insurance v. Na­tional American Insurance Co., 201 Or App 301, 118 P3d 836 (2005)

This pro­vi­sion does not prohibit insurance policy from excluding from coverage one employee's liability to an­oth­er employee of same employer. Garrett v. New Hampshire Insurance Co., 860 F. Supp. 2d 1203 (D. Or. 2012)

Law Review Cita­tions

44 WLR 253 (2007)

Notes of Decisions

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)


1 Legislative Counsel Committee, CHAPTER 742—Insurance Policies Generally; Property and Casualty Policies, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors742.­html (2015) (last ac­cessed Jul. 16, 2016).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2015, Chapter 742, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano742.­html (2015) (last ac­cessed Jul. 16, 2016).
 
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.