Oregon Code § 742.536·Enacted ·Last updated March 01, 2026
Statute Text
Notice
of claim or legal action to insurer; insurer to elect manner of recovery of
benefits furnished; lien of insurer.
(1) If an authorized motor vehicle liability insurer has furnished personal
injury protection benefits, or an authorized health insurer has furnished
benefits, to a person who was injured in a motor vehicle accident and the
injured person makes a claim, or brings legal action, for damages for injuries
against any other person, the injured person shall give notice of the claim or
legal action to the insurer by personal service or by registered or certified
mail. Service of a copy of the summons and complaint or copy of other process
served in connection with the legal action is sufficient notice to the insurer,
in which case a return showing service of the notice must be filed with the
clerk of the court but is not a part of the record except to give notice.
(2) An insurer
may elect to seek reimbursement as provided in this section for benefits the
insurer has furnished to the injured person out of any recovery the injured
person obtains from a claim or legal action if the insurer has not been a party
under ORS 742.534 to an interinsurer reimbursement proceeding with respect to
benefits the insurer furnished to the injured person and the insurer is
entitled by the terms of the insurers policy to the benefit of this section.
The insurer shall give written notice of an election under this subsection by
personal service or by registered or certified mail within 30 days after
receiving the notice or knowledge of the claim or legal action to the person
who made the claim or brought the legal action and to the person against whom
the injured person made a claim or brought legal action. In the case of a legal
action, a return showing service of the notice of election must be filed with
the clerk of the court but is not a part of the record except to give notice to
the claimant and the defendant of the lien of the insurer.
(3) If the
insurer serves a written notice of the insurers election under subsection (2)
of this section and, if applicable, files a return showing service:
(a) Subject to
ORS 742.544, an insurer has a lien, for not more than the amount of benefits
the insurer furnished, against an injured persons recovery in an action for
damages, less a proportionate amount of not more than 100 percent of the
expenses, costs and attorney fees the injured person incurred in connection
with the recovery. The proportionate amount must be calculated as the ratio between
the amount of the lien before a reduction under this paragraph and the amount
of the recovery.
(b) The injured
person shall include the benefits the insurer furnished as damages in a claim
or legal action.
(c) In the case
of a legal action, the action must be taken in the name of the injured person.
(4) As used in
this section, makes a claim means delivers a written demand for a specific
amount of damages that meets requirements reasonably established by the
directors rule. [Formerly 743.828; 2019 c.460 §1]
Plain English Explanation
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Key Points
01Part of Oregon statutory law
02Referenced as Oregon Code § 742.536
03Subject to legislative amendments
04Consult a licensed attorney for application to specific cases
Frequently Asked Questions
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