2007 Oregon Code - Chapter 752 :: Chapter 752 - Professional Liability Funds
Chapter 752 —
Professional Liability Funds
2007 EDITION
PROFESSIONAL LIABILITY FUNDS
INSURANCE
752.005Â Â Â Â Definitions
752.015Â Â Â Â Determination
of need for professional liability fund
752.025Â Â Â Â Commission;
appointment; membership; term of office
752.035Â Â Â Â Professional
liability funds; establishment; minimum insurance coverage; authority of
commission
752.045Â Â Â Â Rules;
reports by commissions; exemption from Insurance Code and Insurance Guaranty
Association
752.055Â Â Â Â Short
title
     752.005
Definitions. (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
     (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 personÂ’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]
     752.010 [1975 c.796 §13; 1977 c.269 §1; repealed by
1987 c.774 §154]
     752.015
Determination of need for professional liability fund. (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]
     752.020 [1975 c.796 §13a; 1977 c.269 §2; repealed by
1987 c.774 §154]
     752.025
Commission; appointment; membership; term of office. (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]
     752.030 [1975 c.796 §13b; repealed by 1987 c.774 §154]
     752.035
Professional liability funds; establishment; minimum insurance coverage;
authority of commission. 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 memberÂ’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]
     752.040 [1975 c.796 §14; 1977 c.269 §3; repealed by
1987 c.774 §154]
     752.045
Rules; reports by commissions; exemption from Insurance Code and Insurance
Guaranty Association. (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]
     752.050 [1975 c.796 §15; repealed by 1977 c.269 §12]
     752.055
Short title. ORS 752.005 to
752.055 shall be known and may be cited as “The Oregon Professional Liability
Funds Law.” [1987 c.774 §93b]
     752.060 [1975 c.796 §16; 1977 c.269 §4; repealed by
1987 c.774 §154]
     752.070 [1975 c.796 §17; 1977 c.269 §5; repealed by
1987 c.774 §154]
     752.080 [1975 c.796 §18; 1977 c.269 §6; repealed by
1987 c.774 §154]
     752.090 [1975 c.796 §21; 1977 c.269 §7; repealed by
1987 c.774 §154]
     752.100 [1975 c.796 §22; repealed by 1987 c.774 §154]
     752.110 [1975 c.796 §23; 1977 c.269 §8; repealed by
1987 c.774 §154]
     752.120 [1975 c.796 §24; 1977 c.269 §9; repealed by
1987 c. 774 §154]
     752.130 [1975 c.796 §19; repealed by 1987 c.774 §154]
     752.140 [1975 c.796 §20; 1977 c.269 §10; repealed by
1987 c.774 §154]
     752.150 [1975 c.796 §25; repealed by 1987 c.774 §154]
     752.160 [1975 c.796 §27; repealed by 1987 c.774 §154]
     752.170 [1977 c.851 §5; repealed by 1987 c.774 §154]
     752.180 [1977 c.851 §6; repealed by 1987 c.774 §154]
     752.190 [1977 c.269 §11; repealed by 1987 c.774 §154]
_______________
CHAPTERS 753 to 755
[Reserved for expansion]
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