USA Statutes : oregon
Title : TITLE 24 PUBLIC ORGANIZATIONS FOR COMMUNITY SERVICE
Chapter : Chapter 278 Insurance for Public Bodies
As used in this chapter, unless the context
requires otherwise:

(1) “Actuarially sound” means funding and insurance sufficient to
pay those losses and their related costs which are known or are projected
by the Oregon Department of Administrative Services from analyses of
claims, loss experience and risk factors.

(2) “Components” of the Insurance Fund means accounts created by
the department within the Insurance Fund to provide specific coverages
and administer the duties of this chapter.

(3) “Data” means information previously converted to language or
symbols in a form which can be directly read by the information
processing equipment.

(4) “Department” means the Oregon Department of Administrative
Services.

(5) “Engineering specifications” means those records which provide
detailed documentation of the construction, wiring, arrangement and
related engineering details of the information processing equipment.

(6) “Media” means all active information processing material
including all forms of data, program material and related engineering
specifications employed in the agency’s information processing operation
except property which the agency elects not to cover.

(7) “Participating local public body” and “public body” mean any
public body other than the state which has elected to participate in the
Insurance Fund under ORS 30.282.

(8) “Personal property” means tangible personal property owned,
leased, controlled or possessed by a state agency and includes all
chattels and moveables, such as merchandise, furniture, goods, livestock,
vehicles, aircraft, moveable machinery, moveable tools, moveable
equipment, general operating supplies and media. “Personal property” does
not include cash, currency or negotiable papers and securities and
similar property which may be excluded by policy of the department.

(9) “Program material” means stored data used to direct the
information processing equipment as to which input or memory to use, how
to use it, and the type of results to obtain, including any diagrams or
other records which can be used to reproduce such instructions.

(10) “Property” means real and personal property as defined in this
section, and any other property under the control of the state in which
the state has an insurable interest as determined by the department.

(11) “Real property” means the land and all buildings, structures,
improvements, machinery, equipment or fixtures erected on, above or under
the land the title of which is vested in the State of Oregon, or is under
the control of the state through a lease purchase agreement, installment
purchase, mortgage or lien. “Real property” does not include any paving,
roadways, tunnels, bridges, bike paths, sidewalks and other related
improvements which may be excluded by policy of the department.

(12) “State agency” or “agency” means each state branch,
institution, department, board, commission or activity of whatever nature.

(13) “Vessel” means a boat, ship, craft or structure made to float
or travel upon the water which may or may not be powered by a marine
engine. [1961 c.448 §2; 1975 c.609 §21; 1977 c.428 §2; 1981 c.109 §6;
1985 c.731 §7; 1989 c.40 §1; 1993 c.500 §25]INSURANCE OF PUBLIC PROPERTYAt times determined by the Oregon Department of
Administrative Services, each state agency shall supply such information
regarding its property, personal and real, and its personnel, budget and
activities as the department shall require for risk control, insurance
and claims purposes. The appraised value of the property shall be
established by the department on the basis of present day replacement
costs excluding the value of land. [1953 c.581 §9; 1957 c.385 §1; 1961
c.448 §3; 1965 c.140 §1; 1969 c.670 §5; 1981 c.109 §7; 1991 c.566 §1] In addition to any
other coverage under this chapter, if a vessel which is the personal
property of an agency or if property on any other vessel is damaged or
destroyed as a direct result of collision with another vessel, striking
any object, whether submerged or not, sinking, grounding, stranding, or
other perils of the sea, the Oregon Department of Administrative Services
shall pay the cost of restoring the vessel or property out of the
Insurance Fund in an amount not to exceed the appraised value established
pursuant to this chapter. If an agency’s vessel becomes disabled at sea
for any reason, the department shall reimburse the agency from the
Insurance Fund for the cost of towing the vessel to the nearest port
where repairs can be accomplished. [1961 c.448 §11; 1965 c.140 §2; 1969
c.670 §6; 1975 c.609 §22; 1982 s.s.1 c.28 §2; 1985 c.731 §9; 1991 c.566
§2](1) Subject to subsections (2) and (3) of this section, if any property
designated in ORS 278.011 is lost, damaged or destroyed by any peril, the
Oregon Department of Administrative Services may elect to cover by rule
or policy, but excluding any loss from mysterious disappearance, lack of
maintenance or inherent vice, the department shall pay the cost of
restoring the property out of the Insurance Fund in an amount not to
exceed the appraised value established pursuant to ORS 278.011.

(2) Any amounts received by an agency from the Insurance Fund may
be applied for purposes other than the restoration of the property
destroyed provided such use is approved by the department, the
Legislative Administration Committee or the State Court Administrator, as
appropriate, and further, in the event the amount received from the
Insurance Fund exceeds $50,000, approval must also be received from the
Legislative Assembly if in session, or the Emergency Board if during the
interim. If the restoration of any property designated in ORS 278.011
that is lost, damaged, or destroyed by any covered peril is not required,
the cost of razing the property may be paid out of the Insurance Fund.
Any amounts approved on claims for use in rebuilding or replacing real or
personal property may be transferred to other agencies if approved by the
department, the Legislative Administrator or the State Court
Administrator, as appropriate. However, in the event that the amount
exceeds $50,000, approval must also be secured from the Legislative
Assembly if in session, or the Emergency Board if during the interim.

(3) The department may establish deductibles for certain perils or
classes of property covered by the Insurance Fund. Payments from the fund
to cover loss, damage or destruction shall be reduced by the deductible
amount adopted by the department.

(4) The department shall draw warrants on the State Treasurer
payable from the Insurance Fund for all claims required in carrying out
the provisions of this chapter. [Amended by 1953 c.581 §11; 1957 c.385
§2; 1961 c.448 §9; 1965 c.140 §3; 1969 c.670 §9; 1981 c.109 §10; 1985
c.731 §10; 1991 c.566 §3; 1993 c.500 §26](1) If a payment is made out of the Insurance Fund to or
for a state agency for any loss covered by the Insurance Fund, the Oregon
Department of Administrative Services is subrogated, to the extent of the
payment, to the rights of the state agency against any person or other
entity legally responsible in damages for the loss. The department may
commence an appropriate action in any court, in the name of the state, to
enforce the rights. Any amounts recovered as a result of the proceeding
shall be paid into the State Treasury and credited to the Insurance Fund.

(2) The department may conduct an investigation of a loss to
determine whether legal action should be commenced. The department may
administer oaths and examine witnesses in connection with its
investigation. The State Fire Marshal and the Department of State Police
and all state agencies covered under this chapter shall cooperate with
the Oregon Department of Administrative Services in the investigation.
[1961 c.448 §12; 1985 c.731 §11; 1991 c.566 §4](1) At times determined by the Oregon Department of
Administrative Services, each state agency owning, leasing, controlling
or possessing media shall supply such information as the department may
require regarding the agency’s media. The appraised value of the media
shall be established on the basis of present-day replacement costs or
restoration to operational condition.

(2) If any media designated in subsection (1) of this section is
damaged or destroyed by any covered peril, the department shall pay all
extraordinary expenses related to replacement or re-creation of new or
backup media out of the Insurance Fund in an amount not to exceed the
appraised value established pursuant to this chapter. Such costs may
include reproduction of media, temporary service and equipment rental
costs, reinstallation, shipping and other related costs.

(3) Media coverage by the Insurance Fund does not include any loss
of moneys because of the lack of any revenue producing function connected
with the operation, nor does it cover any other costs of business
interruption outside the direct expenses as outlined in subsection (2) of
this section. [1981 c.109 §23; 1985 c.731 §12; 1991 c.566 §5](1) Without in any way limiting
who may receive actual notice of a claim under ORS 30.275 (6), the Oregon
Department of Administrative Services has exclusive authority to manage
claims against the state, and against the officers, employees and agents
of the state, that arise under the provisions of ORS 30.260 to 30.300.
The department may delegate, by rule or by policy, claim management
functions for claims arising under the provisions of ORS 30.260 to
30.300, including investigation, negotiation and settlement, to the
Attorney General. The department may delegate, by rule or by policy,
claim management for certain kinds of claims against an agency to the
agency’s elected or appointed head. Upon receipt by the department of a
claim for damages against the State of Oregon or a state officer,
employee or agent within the scope of ORS 30.260 to 30.300, if the claim
is covered by insurance, the department shall tender defense of the claim
to the insurer, and if such tender is accepted, ORS chapter 180 and the
remaining provisions of this section shall not be applicable. If the
claim is not covered by insurance or if the tender is rejected, the
department shall cause an investigation to be conducted to determine
whether the claim is meritorious and comes within the provisions of ORS
30.260 to 30.300. The Attorney General may conduct the investigation if
requested by the department. If the department determines that the state
or a state officer, agent or employee is or may be liable to the claimant
under ORS 30.260 to 30.300, the department may negotiate, compromise and
settle with the claimant. However, the department shall not compromise or
settle a claim for declaratory, injunctive or other protective relief
against a state department or agency that is headed by an elected
official, its officers, employees or agents, or that elected official,
without the express prior consent of the elected official. The Attorney
General shall defend all lawsuits after the department has determined
that a reasonable settlement cannot be achieved. The department shall pay
from the Special Liability Revolving Fund authorized in ORS 278.150 or
the Insurance Fund the amount of any judgment, and, if the department
determines such action to be appropriate, the amount of any settlement
unless the defense of the claim has been rejected pursuant to ORS 30.285
(5) or the Attorney General determines, in consultation with the
department, that the act or omission of a state officer, employee or
agent out of which the claim arose was committed maliciously or with an
intent to cause unlawful damage or injury or with gross recklessness.

(2) The department, through the Insurance Fund, shall pay
reasonable defense expenditures for and indemnify liabilities of an
officer, employee or agent of a court of this state who is a state
officer, employee or agent that arise out of a mandamus proceeding
brought against that person in the person’s official capacity.

(3) The authority granted to the department under subsection (1) of
this section is subject to the authority of the Attorney General provided
for under this section and under ORS 180.220.

(4) As used in this section, “state officer, employee or agent”
includes the district attorney and deputy district attorneys, special
prosecutors and law clerks of the office of district attorney who act in
a prosecutorial capacity, but does not include any other employee of the
office of district attorney or any employee of the justice or circuit
court whose salary is paid wholly or in part by a county and who shall be
considered an officer, agent or employee of the county. [1975 c.609 §6;
1979 c.669 §1; 1981 c.109 §16; 1981 c.350 §3; 1985 c.731 §14; 1987 c.763
§2; 1993 c.515 §2](1) The Oregon Department of
Administrative Services is authorized to negotiate for and purchase such
insurance as it deems necessary or desirable to accomplish the purposes
of this chapter and ORS 30.260 to 30.300 and 278.322, or such other
insurance or reinsurance as may be desirable to insure the state,
participating local public bodies or their officers, employees or agents
against liability.

(2) The premium for such insurance shall be paid from the Insurance
Fund as either an administrative expense or charged to the benefiting
state agency, agencies or participating local public bodies.

(3) The department shall not implement any plan of self-insurance
insuring any part of the liability of the state or its officers,
employees or agents under ORS 30.260 to 30.300 until after the plan has
been submitted to and approved by the Joint Ways and Means Committee of
the Legislative Assembly, if the legislature is in session, or the
Emergency Board. [1975 c.609 §7; 1981 c.109 §17; 1985 c.731 §15]The Oregon Department of Administrative Services may
employ such professional services and other personnel deemed necessary,
other than defense counsel, to carry out the administration of this
chapter and ORS 30.260 to 30.290 and 278.322. The Attorney General may
employ defense counsel and shall charge the department for the cost of
the services of the defense counsel and the Attorney General required
under these statutes, and such costs and the costs incurred by the
department in the administration of these statutes shall be paid out of
the Insurance Fund. [1975 c.609 §8; 1981 c.109 §18; 1985 c.731 §16; 1993
c.500 §27](1) The Oregon Department of Administrative Services may draw
a warrant on the State Treasury for the sum of $75,000 payable out of the
Insurance Fund. The amount drawn shall be credited to a Special Liability
Revolving Fund which shall be carried with the State Treasury, separate
and distinct from the General Fund, and shall be used by the department
when it is necessary or desirable to make immediate payments on liability
claims. Interest earned by the fund shall be credited to the fund.

(2) The department shall file at least once each month a verified
voucher covering current disbursements from the Special Liability
Revolving Fund. The voucher shall be accompanied by an itemized statement
showing the names of the persons, firms or corporations to whom and the
purposes for which the disbursements were made.

(3) Upon receipt of the voucher, the department shall draw a
warrant on the State Treasury in favor of the department payable out of
the Insurance Fund. The amount drawn shall be deposited in the Special
Liability Revolving Fund and shall be for a sum sufficient only to
replenish the Special Liability Revolving Fund. [1981 c.109 §20; 1985
c.731 §17; 1989 c.966 §12; 1993 c.500 §28]Note: 278.150 was added to and made a part of ORS chapter 278 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.INSURANCE FOR MOTOR VEHICLES OWNED BY GOVERNMENT As
used in ORS 278.205 and 278.322, “motor vehicles” includes commercial
buses, as defined in ORS 801.200. [1979 c.842 §5; 1983 c.338 §905; 1985
c.16 §454; 1987 c.158 §37](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 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. [1979 c.842 §2;
1981 c.490 §2] The state shall
have all of the rights and obligations of an insurer provided in ORS
742.500 to 742.542 and 742.560 to 742.572 as to any certificate issued
pursuant to ORS 278.205. [1979 c.842 §3] (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 provide 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 ORS
742.520 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 ORS 742.520 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. [1979 c.842 §4; 1981 c.490 §3; 1985 c.731 §19; 2005
c.175 §4]LIABILITY INSURANCE(1) The Department of Human Services may provide tort
liability coverage through the Oregon Department of Administrative
Services to any county or private community care provider that has
contracted with the Department of Human Services to provide supervision,
care, treatment or training of persons under the jurisdiction of the
Psychiatric Security Review Board. Counties or private community care
providers, and the officers and employees of those counties and providers
acting within the scope of their employment, may be covered to the extent
that any tort claim arises out of the provision of supervision, care,
treatment or training of persons pursuant to the terms of the contract.
Tort liability coverage under this section must be in writing, and may be
part of the contract between the Department of Human Services and the
county or private community care provider. The coverage provided under
this section shall be self-insurance by the State of Oregon to the limits
contained in ORS 30.260 to 30.300.

(2) Counties or private community care providers that have
contracted with the Department of Human Services to provide supervision,
care, treatment or training of persons under the jurisdiction of the
Psychiatric Security Review Board, and the officers and employees of
those counties and providers, are not agents of the department for the
purposes of ORS 30.260 to 30.300. [1993 c.43 §1]Note: 278.315 and 278.320 were enacted into law by the Legislative
Assembly but were not added to or made a part of ORS chapter 278 or any
series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.ORS 30.260 to 30.300 do not apply to claims against private
community care providers by reason of the provision of tort liability
coverage to those providers pursuant to ORS 278.315. Private community
care providers provided tort liability coverage under ORS 278.315 remain
liable for any damages in excess of the coverage provided under ORS
278.315. [1993 c.43 §3]Note: See note under 278.315. (1) The
following child care facilities may obtain insurance in the same manner
as a local public body may obtain insurance under ORS 30.282:

(a) A private child-caring agency if the agency:

(A) Is run by a private, nonprofit agency;

(B) Is licensed by the state; and

(C) Provides residential or psychiatric intensive day treatment
services for children who have been placed in the care and custody of the
state; or

(b) A child care facility as defined in ORS 657A.250.

(2) The insurance obtained under subsection (1) of this section may
not cover theft or bodily injury and property damage arising out of
operation of a motor vehicle by a child resident of the facility or
agency. [Formerly 30.880; 2005 c.798 §1]Note: 278.322 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 278 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.RISK MANAGEMENTThe Oregon Department of Administrative Services shall
direct and manage all risk management and insurance programs of state
government except for employee benefit insurance programs as otherwise
provided in ORS chapter 243. Authority granted the department in this
section includes but is not limited to the following authority:

(1) To provide all insurance coverages including coverage of
related legal expenses required by law, requisitioned by individual
agencies, or which the department determines necessary or desirable for
the efficient operation of state government, including but not limited to
casualty insurance, property insurance, workers’ compensation insurance
and surety insurance.

(2) To purchase insurance policies, develop and administer
self-insurance programs, or any combinations thereof, as may be in the
best interest of the state in carrying out the authorities granted in
subsection (1) of this section.

(3) To consolidate and combine state insurance coverages.

(4) To purchase such risk management, actuarial and other
professional services as may be required.

(5) To provide technical services in risk management and insurance
to state agencies.

(6) To adopt rules and policies governing the administration of the
state’s insurance and risk management activities and to carry into full
force and effect the provisions of this chapter, ORS 30.260 to 30.290,
278.322 and 655.505 to 655.555. The department, by rule or policy, may
determine the Insurance Fund’s contribution to the cost of defense,
settlements and judgments in actions or proceedings. The department may
condition payment of all or part of any loss covered by the Insurance
Fund on compliance with the rules and policies adopted under this
chapter. [1985 c.731 §2; 1991 c.566 §6]No state agency shall purchase insurance, other than for
employee benefits, except as authorized by the Oregon Department of
Administrative Services and in accordance with the terms, conditions and
procurement methods as may be established by the department except for
the transaction of workers’ compensation insurance and reinsurance
business by the State Accident Insurance Fund Corporation. However,
nothing in this section applies to professional liability insurance
acquired under ORS 9.080 (2). [1985 c.731 §3]INSURANCE FUND (1) There is established an Insurance
Fund as a separate fund in the State Treasury, separate and distinct from
the General Fund, which shall be used to provide insurance and
self-insurance for the State of Oregon under this chapter, and for
participating local public bodies under ORS 30.282 and 278.125 to
278.215. The moneys in the Insurance Fund may be invested as provided in
ORS 293.701 to 293.820 in “investment funds” as defined in ORS 293.701
which includes the Insurance Fund. Interest earned by the fund shall be
credited to the fund.

(2) The Insurance Fund shall be administratively separated to
assure individual accountability of the state and local public body
liability insurance programs under ORS 30.282 and 278.125 to 278.215 and
the state property insurance program under this chapter.

(3) All moneys arising from the operation of this section and ORS
278.405, 278.415 and 278.435 and the provisions of this chapter and ORS
30.260 to 30.300 and 278.322 shall be set aside by the State Treasurer
and credited to the Insurance Fund. The moneys in the Insurance Fund are
continuously appropriated to the Oregon Department of Administrative
Services to administer the provisions of this chapter and ORS 30.260 to
30.300 and 278.322. [1985 c.731 §4; 1989 c.966 §13](1) It is the intent of the Legislative
Assembly that the individual components of the Insurance Fund, as well as
the total fund, operate on an actuarially sound basis and that the
assessments and charges shall reflect this policy.

(2) The Oregon Department of Administrative Services may apportion
to and collect from each state agency, officer, board or commission or
any participating local public body, its contribution as determined by
the department to purchase insurance or administer self-insurance
programs, including administrative expenses, for coverages authorized by
this chapter.

(3) The apportionment shall be based, to the extent possible, upon
the factors which reflect the relative risk and loss experience of each
state agency, officer, board or commission or participating local public
body.

(4) The department may assess a state agency, officer, board or
commission the cost of providing specific risk management services
requested by a state agency, officer, board or commission.

(5) In any year when the moneys in the Insurance Fund are not
sufficient to keep the fund or any of its components actuarially sound
and to make all payments required in carrying out the provisions of this
chapter, funds may be advanced from other funds in the State Treasury
under the provisions of ORS 293.205 to 293.225. Prior to any advance to
the Insurance Fund under the provisions of ORS 293.205 to 293.225,
approval shall be obtained from the Joint Ways and Means Committee of the
Legislative Assembly, if the Legislative Assembly is in session, or the
Emergency Board.

(6) Moneys advanced to the Insurance Fund as provided in this
section shall be repaid from the Insurance Fund in annual installments,
with interest as provided in ORS 293.220. The amount of the installments
shall be fixed by the department at such amount as can be reasonably
expected to liquidate the indebtedness of the Insurance Fund in not more
than 10 years.

(7) In order to assure that the moneys advanced to the Insurance
Fund are repaid as specified in subsection (6) of this section, the
department may make such assessments to state agencies or participating
local public bodies or their legal successors. [1985 c.731 §5; 1989 c.40
§2]

_______________