USA Statutes : oregon
Title : TITLE 56 INSURANCE
Chapter : Chapter 752 Professional Liability Funds
(1) For purposes of ORS 752.005 to 752.055, a
“qualified member of a profession” means a person:

(a) Who holds a current license, certificate or registration in a
profession which is regulated or governed by a board established by the
Legislative Assembly;

(b) Whose principal office is in Oregon;

(c) Who is engaged in the private practice of the profession; and

(d) Who is not exempted by the commission from belonging to a
professional liability fund managed by the commission.

(2) For purposes of subsection (1) of this section, a person is not
engaged in the private practice of a profession if the person is a
full-time employee of a corporation other than a corporation incorporated
under ORS chapter 58, the state, an agency or department thereof, a
county, city, special district or any other public or municipal
corporation or any instrumentality thereof. However, a person who
practices a profession outside of the person’s full-time employment is
engaged in the private practice of the profession.

(3) For the purposes of subsection (1) of this section, the
principal office of a person is considered to be the location where the
person engages in the private practice of a profession more than 50
percent of the time engaged in that practice. In the case of a person in
a branch office outside Oregon, if the main office to which the branch
office is connected is in Oregon, the principal office of the person is
not considered to be in Oregon unless the person engages in the private
practice of a profession in Oregon more than 50 percent of the time
engaged in that practice. [1987 c.774 §92] (1)
If the Director of the Department of Consumer and Business Services
finds, after hearings, that qualified members of any profession are
unable to obtain insurance for damages arising out of professional
negligence or that such professional liability insurance is not available
at a reasonable cost to such members, the director may determine that a
professional liability fund is necessary. Any such fund shall be separate
and distinct from the General Fund, and interest earned by the fund shall
be credited to the fund.

(2) The director may not make a determination to implement a
professional liability fund if:

(a) The lack of availability of insurance is due to legitimate
insurance underwriting considerations, including past claims experience,
licensing noncompliance or inadequate risk management; and

(b) Actuarial studies show that private insurers are adequately
setting rates for professional liability coverage, that a professional
liability fund would not ultimately provide insureds lower premiums and
that there is not an adequate number of potential insureds to fund a
professional liability fund.

(3) The director may contract for actuarial studies in order to
make the determinations required by this section. [1987 c.774 §89; 1989
c.966 §68] (1)
After a determination of necessity by the director under ORS 752.015, the
Governor may appoint a commission for each professional liability fund
that the Director of the Department of Consumer and Business Services
proposes to implement.

(2) Each commission appointed pursuant to subsection (1) of this
section shall consist of nine individuals appointed by the Governor,
subject to confirmation by the Senate in the manner described in ORS
171.562 and 171.565.

(3) Of the members of the commission, six shall be members of the
profession and three shall be lay members.

(4) The term of office of each member is three years but a member
serves at the pleasure of the Governor. Before the expiration of the term
of a member, the Governor shall appoint a successor whose term begins on
July 1 next following. A member is eligible for reappointment. If there
is a vacancy for any cause, the Governor shall make an appointment to
become effective for the unexpired term upon confirmation by the Senate.
[1987 c.774 §§90,91]


A professional liability
fund commission appointed pursuant to ORS 752.025 shall establish a
professional liability fund for qualified members of the appropriate
profession. When a fund is established under this section:

(1) The commission shall require all qualified members of the
profession to carry professional liability insurance offered by the fund
with primary liability limits of at least $200,000.

(2) A professional liability fund established under this section
shall pay, on behalf of qualified members of the profession, all sums as
may be provided under the fund which any such member shall become legally
obligated to pay as money damages because of any claim made against such
member as a result of any act or omission of such member in rendering or
failing to render professional services for others in the member’s
professional capacity or caused by any other person for whose acts or
omissions the member is legally responsible.

(3) The commission shall have the authority:

(a) To assess each person covered by the fund for contributions to
the fund;

(b) To establish definitions of coverage to be provided by the fund;

(c) To employ legal counsel to represent the fund and to defend and
control the defense of any person covered by the fund against whom a
claim is made;

(d) To employ any persons necessary for the proper administration
of the fund; and

(e) To contract with a local insurer to administer the fund. [1987
c.774 §93]
(1) The Director of the
Department of Consumer and Business Services shall adopt rules for the
establishment of professional liability funds by the commissions
described in ORS 752.025. Such rules shall include, but need not be
limited to, rules requiring annual reports from the commissions.

(2) The commissions shall report to the director annually on the
operations of the fund. The reports shall contain any information
required by the director.

(3) A professional liability fund established under ORS 752.005 to
752.055 shall be subject to the rules of the director adopted under
subsection (1) of this section. Such funds shall not be otherwise subject
to the Insurance Code, and shall not participate in the Oregon Insurance
Guaranty Association. [1987 c.774 §93a]ORS 752.005 to 752.055 shall be known and may
be cited as “The Oregon Professional Liability Funds Law.” [1987 c.774
§93b]

_______________CHAPTERS 753 to 755[Reserved for expansion]