Recently, the Oregon Court of Appeals held that an insurance policy issued to a Vancouver, Washington driver provided different rights than if the driver had lived in Portland, Oregon. The case involved a car accident and the uninsured motorist provision of an auto insurance policy, but the ruling could apply to any insurance contract. In Carla Morgan v. Amex Assurance Company, the result was that the injured driver had to pay attorney fees out of her settlement instead of keeping her entire settlement and having her insurance company pay her lawyer.
For decades, Oregon law said if (1) a person submits a "proof of loss" to his or her own insurance company, (2) the insurance company does not settle the claim or accept coverage within six months, and (3) the insured sues the company and wins in court, then the insurance company must pay the attorney fees of the person. (ORS 742.061). It is a very useful tool, and every Oregon lawyer should submit a proof of loss before suing. This opportunity to win attorney fees is another reason to see a lawyer right away - so you have time to use the law.
Another law, enacted after the attorney fee law, is kind of an introduction to the entire chapter involving insurance law. ORS 742.001 says the chapter applies to "insurance policies delivered or issued for delivery in this state." The insurance company said that this law deprived Carla Morgan of a chance for attorney fees because Ms. Morgan had applied for insurance when she lived in Vancouver and the policy issued to her in Washington. Oregon's Court of Appeals agreed with the insurance company.
Jeff Merrick, Oregon Trial Attorney
Injury & Employment Law
503-665-4234
The above is not legal advice. I cannot give you sound advice without knowing more information. It is intended to raise some issues for you to discuss with your own lawyer.
