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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 3636
Sponsored by Representatives RESCHKE, LEVY B, SMITH G; Representatives BOICE, BOSHART DAVIS,
HELFRICH, JAVADI, MCINTIRE, OSBORNE, Senators ANDERSON, ROBINSON
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: Says that an insurer that offers car insurance must also offer PIP benefits. Lets a driver
decide whether to accept or not. (Flesch Readability Score: 61.0).
Requires insurers to offer personal injury protection benefits to persons insured under the
insurer’s motor vehicle liability policy, but makes the decision to elect to receive personal injury
protection benefits optional.
A BILL FOR AN ACT
Relating to personal injury protection benefits; creating new provisions; and amending ORS 278.205,
278.215, 742.520, 742.522, 742.524 and 742.585.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 742.520 is amended to read:
742.520. (1)(a) [Every] An insurer that issues a motor vehicle liability policy [issued] for de-
livery in this state that covers any private passenger motor vehicle shall [provide] make available
under the policy personal injury protection benefits [to] for all of the following persons:
(A) The person insured [thereunder] under the motor vehicle liability policy[,];
(B) Members of that person’s family residing in the same household[,];
(C) Children not related to the insured by blood, marriage or adoption who are residing in the
same household as the insured and being reared as the insured’s own[,];
(D) Passengers occupying the insured motor vehicle; and
(E) Pedestrians struck by the insured motor vehicle.
(b) A transportation network company shall provide a motor vehicle liability policy with per-
sonal injury protection benefits to each driver who operates a personal motor vehicle in affiliation
with the transportation network company.
(c) A taxi company shall provide a motor vehicle liability policy with personal injury protection
benefits to each driver who operates a taxi in affiliation with the taxi company.
(d) The personal injury protection benefits described in paragraphs (b) and (c) of this subsection
must, at all times during which the driver operates the personal motor vehicle or the taxi to provide
transportation services to passengers in affiliation with the transportation network company or the
taxi company, cover the driver of the personal motor vehicle or taxi, any passengers that occupy
the personal motor vehicle or taxi and pedestrians that are struck by the personal motor vehicle
ortaxi.
(e) Notwithstanding paragraphs (b), (c) and (d) of this subsection, an insurer may exclude from
a motor vehicle liability policy for a private passenger motor vehicle any coverage, including per-
sonal injury protection benefits, for a loss or injury that occurs while a driver is operating a private
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 4189 HB3636
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passenger motor vehicle to provide transportation services for compensation in affiliation with a
transportation network company.
(2)(a) A person insured under an insurer’s motor vehicle liability policy, other than a
driver described in subsection (1)(b), (c), (d) or (e) of this section, is not obligated to elect
to receive personal injury protection benefits or coverage for injury or death under the cir-
cumstances described in subsection (3) of this section. The person may refuse personal injury
protection benefits and coverage orally or in writing and need not submit a form to the
insurer to indicate the insured’s refusal.
(b) In each declarations page that an insurer provides at the time the insurer issues or
renews a motor vehicle liability policy, the insurer shall note prominently whether the in-
sured has elected personal injury protection benefits and coverage for injury or death under
the circumstances described in subsection (3) of this section. The notation in the declara-
tions page is the final and binding expression of the insured’s decision as to whether the in-
sured consents to or refuses the insurer’s personal injury protection benefits and coverage
and the insured’s refusal also constitutes a refusal on behalf of all persons to whom personal
injury protection benefits would otherwise apply under subsection (1)(a) of this section.
[(2)] (3) Personal injury protection benefits that an insurer offers as part of a motor vehicle
liability policy must apply to a person’s injury or death resulting:
(a) In the case of the person insured under the policy and members of that person’s family re-
siding in the same household, from the use, occupancy or maintenance of any motor vehicle, except
the following vehicles:
(A) A motor vehicle, including a motorcycle or moped, that is owned or furnished or available
for regular use by any of such persons and that is not described in the policy;
(B) A motorcycle or moped which is not owned by any of such persons, but this exclusion applies
only when the injury or death results from such person’s operating or riding upon the motorcycle
or moped; and
(C) A motor vehicle not included in subparagraph (A) or (B) of this paragraph and, except as
provided in paragraph (c) of this subsection, not a private passenger motor vehicle. However, this
exclusion applies only when the injury or death results from such person’s operating or occupying
the motor vehicle.
(b) In the case of a passenger occupying or a pedestrian struck by the insured motor vehicle,
from the use, occupancy or maintenance of the vehicle.
(c) In the case of a person insured under the policy who operates a personal motor vehicle or
a taxi with which the person provides transportation services to passengers for compensation in
affiliation with a transportation network company or a taxi company, from the use, occupancy or
maintenance of the personal motor vehicle or taxi.
[(3)] (4) Personal injury protection benefits must consist of payments for expenses, loss of in-
come and loss of essential services as provided in ORS 742.524.
[(4)] (5) An insurer shall pay all personal injury protection benefits promptly after proof of loss
has been submitted to the insurer.
[(5)] (6) The potential existence of a cause of action in tort does not relieve an insurer from the
duty to pay personal injury protection benefits.
[(6)] (7) Disputes between insurers and beneficiaries about the amount of personal injury pro-
tection benefits, or about the denial of personal injury protection benefits, [shall] must be decided
by arbitration if mutually agreed to at the time of the dispute. Arbitration under this subsection
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[shall] must take place as described in ORS 742.521.
[(7)] (8) An insurer:
(a) May not enter into or renew any contract that provides, or has the effect of providing,
managed care services to beneficiaries.
(b) May enter into or renew any contract that provides evaluation services for beneficiaries.
SECTION 2. ORS 742.522 is amended to read:
742.522. (1) Costs to the insured of the arbitration proceeding under ORS 742.520 [(6) shall] (7)
may not exceed $100 and the insurer shall bear all other costs of arbitration [shall be borne by
theinsurer].
(2) As used in this section, “costs” does not include attorney fees or expenses incurred in the
production of evidence or witnesses or the making of transcripts of the arbitration proceedings.
SECTION 3. ORS 742.524 is amended to read:
742.524. (1) Personal injury protection benefits [required by] that an insurer makes available
under ORS 742.520 must consist of the following payments for the injury or death of each person:
(a) All reasonable and necessary expenses of medical, hospital, dental, surgical, ambulance and
prosthetic services incurred within two years after the date of the person’s injury, but not more than
$15,000 in the aggregate for all such expenses of the person. Expenses of medical, hospital, dental,
surgical, ambulance and prosthetic services are presumed to be reasonable and necessary unless the
provider receives notice of denial of the charges not more than 60 calendar days after the insurer
receives from the provider notice of the claim for the services. At any time during the first 50 cal-
endar days after the insurer receives notice of claim, the provider shall, within 10 business days,
answer in writing questions from the insurer regarding the claim.For purposes of determining when
the 60-day period provided by this paragraph has elapsed, counting of days shall be suspended if the
provider does not supply written answers to the insurer within 10 days and may not resume until
the answers are supplied.
(b) If the injured person is usually engaged in a remunerative occupation and if disability con-
tinues for at least 14 days, 70 percent of the loss of income from work during the period of the in-
jured person’s disability until the date the person is able to return to the person’s usual occupation.
This benefit is subject to a maximum payment of $3,000 per month and a maximum payment period
in the aggregate of 52 weeks. As used in this paragraph, “income” includes but is not limited to
salary, wages, tips, commissions, professional fees and profits from an individually owned business
or farm.
(c) If the injured person is not usually engaged in a remunerative occupation and if disability
continues for at least 14 days, the expenses reasonably incurred by the injured person for essential
services that were performed by a person who is not related to the injured person or residing in the
injured person’s household in lieu of the services the injured person would have performed without
income during the period of the person’s disability until the date the person is reasonably able to
perform such essential services. This benefit is subject to a maximum payment of $30 per day and
a maximum payment period in the aggregate of 52 weeks.
(d) All reasonable and necessary funeral expenses incurred within one year after the date of the
person’s injury, but not more than $5,000.
(e) If the injured person is a parent of a minor child and is required to be hospitalized for a
minimum of 24 hours, $25 per day for child care, with payments to begin after the initial 24 hours
of hospitalization and to be made for as long as the person is unable to return to work if the person
is engaged in a remunerative occupation or for as long as the person is unable to perform essential
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services that the person would have performed without income if the person is not usually engaged
in a remunerative occupation, but not to exceed $750.
(2) With respect to the insured person and members of that person’s family residing in the same
household, an insurer may offer forms of coverage for the benefits required by subsection (1)(a), (b)
and (c) of this section with deductibles of up to $250.
SECTION 4. ORS 278.205 is amended to read:
278.205. (1) The Oregon Department of Administrative Services may issue a certificate of motor
vehicle liability insurance and make assessments therefor.
(2) When issued on vehicles owned by local public bodies, such insurance shall also include
uninsured motorist coverage and may include personal injury protection benefits and shall provide
at least the minimum coverages and amounts set forth in ORS 742.500 to 742.542. However, at the
request of a local public body, the department may provide uninsured motorist coverage or personal
injury protection benefits for the motor vehicles owned by the local public body in amounts greater
than those [required under] described in ORS 742.500 to 742.542.
(3) When issued on state-owned vehicles furnished for public use including, but not limited to,
use authorized under ORS 276.598, such insurance shall include uninsured motorist coverage and
personal injury protection benefits and shall provide at least the minimum coverages and amounts
set forth in ORS 742.500 to 742.542.
(4) The department by rule may provide personal injury protection benefits in excess of those
specified in this section.
SECTION 5. ORS 278.215 is amended to read:
278.215. (1) Any insurance or self-insurance provided by moneys from the Insurance Fund for or
on account of the operation of motor vehicles within the state’s or public body’s control, shall pro-
vide the uninsured motorist coverage required under ORS 742.500 to 742.504 and, except as specified
in ORS 278.205, may provide the personal injury protection benefits [required under] described in
ORS 742.518 to 742.542.
(2) Any local public body, as defined in ORS 30.260, which establishes a self-insurance program
under ORS 30.282 for or on account of the operation of motor vehicles within the local public body’s
control, shall provide the uninsured motorist coverage required under ORS 742.500 to 742.504 and
may provide the personal injury protection benefits [required under] described in ORS 742.518 to
742.542.
(3) The uninsured motorist coverage provided under this section shall be excess over any other
collateral benefits to which an injured person is entitled, including, but not limited to, other
uninsured motorist coverage, insurance benefits, governmental benefits or gratuitous benefits.
SECTION 6. ORS 742.585 is amended to read:
742.585. As used in ORS 742.585 to 742.600:
(1) “Owner’s insurance policy” means a private passenger motor vehicle liability insurance pol-
icy that includes:
(a) All coverage necessary to comply with the financial or future responsibility requirements of
ORS chapter 806;
(b) The personal injury protection coverage [required under] described in ORS 742.518 to
742.542;
(c) The uninsured motorist coverage required under ORS 742.500 to 742.506; and
(d) Any optional coverage selected by the owner.
(2) “Personal vehicle sharing” means the use of a private passenger motor vehicle by persons
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other than the vehicle’s registered owner in connection with a personal vehicle sharing program.
(3) “Personal vehicle sharing program” means a legal entity qualified to do business in this state
engaged in the business of facilitating the sharing of private passenger motor vehicles for noncom-
mercial use by individuals within this state.
(4) “Private passenger motor vehicle” means a four-wheel passenger or station wagon type motor
vehicle insured under a motor vehicle liability insurance policy covering a single individual or in-
dividuals residing in the same household as the named insured.
(5) “Program insurance policy” means a motor vehicle liability insurance policy that is obtained
by the personal vehicle sharing program and that:
(a) Includes all coverage needed to comply with the financial or future responsibility require-
ments of ORS chapter 806;
(b) Includes the personal injury protection coverage [required under] described in ORS 742.518
to 742.542;
(c) Includes the uninsured motorist coverage required under ORS 742.500 to 742.506;
(d) Includes comprehensive property damage coverage for the vehicle;
(e) Includes collision property damage coverage for the vehicle; and
(f) Does not include any other optional coverage selected by the owner of the vehicle and in-
cluded in the owner’s insurance policy.
SECTION 7. The amendments to ORS 278.205, 278.215, 742.520, 742.522, 742.524 and 742.585
by sections 1 to 6 of this 2025 Act become operative January 1, 2027.
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