2007 Oregon Code - Chapter 278 :: Chapter 278 - Insurance for Public Bodies
Chapter 278 —
Insurance for Public Bodies
2007 EDITION
INSURANCE FOR PUBLIC BODIES
PUBLIC FACILITIES, CONTRACTING &
INSURANCE
GENERAL PROVISIONS
278.005Â Â Â Â Definitions
INSURANCE OF PUBLIC PROPERTY
278.011Â Â Â Â State
agencies to supply information on property; appraised value determined
278.022Â Â Â Â Coverage
of vessels
278.050Â Â Â Â Restoring
lost, damaged or destroyed property; exceptions; use of fund for other
purposes; deductibles
278.052Â Â Â Â Right
of action against person responsible for loss; investigations
278.075Â Â Â Â State
agencies to supply information on media property; scope of coverage
278.120Â Â Â Â Claims
management; defense; authority of Attorney General; payment of judgment or
settlement; rules
278.125Â Â Â Â Purchase
of insurance; payment of premium; legislative approval of self-insurance plan
278.130Â Â Â Â Employment
of staff assistance; payment for services by Attorney General
278.150Â Â Â Â Special
Liability Revolving Fund; accounting for moneys disbursed
INSURANCE FOR MOTOR VEHICLES OWNED BY
GOVERNMENT
278.200    “Motor
vehicle” defined for ORS 278.205 and 278.322
278.205Â Â Â Â Certificates
of insurance; coverage; personal injury protection benefits; rules
278.210Â Â Â Â State
has rights and duties of insurer
278.215Â Â Â Â Uninsured
motorist coverage requirements
LIABILITY INSURANCE
278.315Â Â Â Â Liability
insurance for county or private community care providers
278.320Â Â Â Â Application
of government tort law to claims against private community care providers;
liability for damages in excess of coverage
278.322Â Â Â Â Child
care facility liability insurance coverage
RISK MANAGEMENT
278.405Â Â Â Â Department
to manage risk management and insurance programs; rules
278.415Â Â Â Â Department
to authorize agency insurance purchases; exceptions
INSURANCE FUND
278.425Â Â Â Â Insurance
Fund; uses
278.435Â Â Â Â Fund
to operate on actuarially sound basis; apportionment; assessment; advances;
repayment
GENERAL PROVISIONS
     278.005
Definitions. 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 agencyÂ’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]
     278.010 [Repealed by 1953 c.581 §11]
INSURANCE OF
PUBLIC PROPERTY
     278.011
State agencies to supply information on property; appraised value determined. At 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]
     278.020 [Amended by 1953 c.581 §11; 1961 c.448 §4;
1963 c.634 §4; 1967 c.262 §1; 1969 c.670 §1; 1975 c.609 §10; 1981 c.109 §8;
1982 s.s.1 c.28 §1; 1985 c.731 §8; repealed by 1991 c.566 §14]
     278.022
Coverage of vessels. 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 agencyÂ’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]
     278.025 [1953 c.581 §5; 1969 c.670 §7; 1975 c.609 §23;
repealed by 1985 c.731 §32]
     278.030 [Amended by 1981 c.109 §9; 1982 s.s.1 c.28 §3;
repealed by 1985 c.731 §32]
     278.035 [1961 c.448 §§6,7; 1969 c.670 §8; 1975 c.609
§24; repealed by 1985 c.731 §32]
     278.040 [Amended by 1961 c.448 §8; repealed by 1985
c.731 §32]
     278.043 [1969 c.670 §3; 1982 s.s.1 c.28 §4; repealed
by 1985 c.731 §32]
     278.047 [1969 c.670 §4; 1982 s.s.1 c.28 §5; repealed
by 1985 c.731 §32]
     278.050
Restoring lost, damaged or destroyed property; exceptions; use of fund for other
purposes; deductibles. (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]
     278.052
Right of action against person responsible for loss; investigations. (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]
     278.054 [1953 c.581 §6; repealed by 1975 c.605 §33]
     278.056 [1953 c.581 §7; repealed by 1975 c.605 §33]
     278.060 [Amended by 1961 c.448 §13; 1981 c.109 §11;
repealed by 1985 c.731 §32]
     278.070 [Amended by 1961 c.448 §14; repealed by 1985
c.731 §32]
     278.075
State agencies to supply information on media property; scope of coverage. (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 agencyÂ’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]
     278.080 [Amended by 1953 c.581 §11; repealed by 1959
c.12 §1]
     278.085 [1953 c.581 §1; 1957 c.385 §3; 1961 c.448 §15;
1969 c.670 §10; repealed by 1985 c.731 §32]
     278.090 [Amended by 1955 c.288 §1; 1959 c.662 §18;
repealed by 1975 c.609 §25]
     278.100 [1975 c.609 §2; 1977 c.428 §3; 1981 c.109 §12;
1981 c.490 §1; 1981 c.913 §1; repealed by 1985 c.731 §32]
     278.105 [1975 c.609 §3; repealed by 1985 c.731 §32]
     278.110 [1975 c.609 §4; 1981 c.109 §13; repealed by
1985 c.731 §32]
     278.115 [1975 c.609 §5; 1981 c.109 §14; 1985 c.731 §13;
repealed by 1991 c.566 §14]
     278.120
Claims management; defense; authority of Attorney General; payment of judgment
or settlement; rules. (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 agencyÂ’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 personÂ’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]
     278.125
Purchase of insurance; payment of premium; legislative approval of
self-insurance plan. (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]
     278.130
Employment of staff assistance; payment for services by Attorney General. 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]
     278.135 [1975 c.609 §9; repealed by 1985 c.731 §32]
     278.140 [1979 c.669 §3; repealed by 1981 c.109 §24]
     278.145 [1981 c.109 §21; repealed by 1985 c.731 §32]
     278.150
Special Liability Revolving Fund; accounting for moneys disbursed. (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
     278.200
“Motor vehicle” defined for ORS 278.205 and 278.322. 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]
     278.205
Certificates of insurance; coverage; personal injury protection benefits;
rules. (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]
     278.210
State has rights and duties of insurer. 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]
     278.215
Uninsured motorist coverage requirements. (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
stateÂ’s or public bodyÂ’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 742.518
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 bodyÂ’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 742.518 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. [1979 c.842 §4; 1981 c.490 §3; 1985 c.731 §19; 2005 c.175 §4]
     278.305 [1983 c.431 §1; 1985 c.731 §24; repealed by
1995 c.162 §94]
LIABILITY
INSURANCE
     278.315
Liability insurance for county or private community care providers. (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
     (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.
     278.320
Application of government tort law to claims against private community care
providers; liability for damages in excess of coverage. 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.
     278.322
Child care facility liability insurance coverage. (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
MANAGEMENT
     278.405
Department to manage risk management and insurance programs; rules. The 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, workersÂ’ 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 stateÂ’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 FundÂ’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]
     278.415
Department to authorize agency insurance purchases; exceptions. 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 workersÂ’ 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
     278.425
Insurance Fund; uses. (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]
     278.435
Fund to operate on actuarially sound basis; apportionment; assessment;
advances; repayment. (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
     (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]
     278.990 [Repealed by 1975 c.609 §25]
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