77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 3032

                         Senate Bill 758

Sponsored by Senator DINGFELDER; Senator BURDICK, Representative
  DEMBROW

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Requires person that owns firearm to obtain and maintain in
effect liability insurance policy that covers firearm and
complies with provisions specifying coverage and other
requirements for liability insurance policy. Excludes peace
officers and persons in military service from requirement under
specified conditions.  Subjects person that fails to obtain and
maintain insurance to civil penalty of not more than $10,000 for
each firearm that is not covered as required.
  Provides that person may not sell or transfer firearm or
ammunition for firearm to another person unless person verifies
that other person has liability insurance policy for firearm.
  Provides that person that owns firearm is strictly liable for
injury caused by discharge of firearm up to limits of liability
insurance coverage.
  Requires insurer to issue, and person that owns firearm to
carry, evidence of liability insurance coverage.
  Specifies minimum coverage amounts and other requirements for
liability insurance for firearms.
  Becomes operative January 1, 2014.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to liability insurance for firearms; and declaring an
  emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 to 13 of this 2013 Act are added to
and made a part of ORS chapter 742. + }
  SECTION 2.  { + As used in sections 2 to 13 of this 2013 Act:
  (1) 'Firearm' has the meaning given that term in ORS 166.210
(3).
  (2)(a) 'Person' means an individual, partnership, corporation,
limited liability company, trust, association, joint venture,
fiduciary, administrator, representative or any other natural
person or entity that is capable of owning a firearm.
  (b) 'Person' does not include:
  (A) The United States or an agency of the United States;
  (B) The State of Oregon or an agency or political subdivision
of the State of Oregon; or
  (C) Another state or an agency or political subdivision of
another state. + }
  SECTION 3.  { + (1)(a) Except as provided in paragraph (c) of
this subsection, a person that owns a firearm that is located in
this state shall obtain and maintain in effect a liability
insurance policy that covers the firearm and that complies with
the provisions of sections 2 to 13 of this 2013 Act.
  (b) A person that is subject to paragraph (a) of this section
shall have at all times during which the person owns a firearm
evidence from an insurer to show coverage for the firearm under
the insurer's liability insurance policy. The person shall keep
the evidence of the coverage with the person or in a place that
is readily accessible and available for immediate inspection at
all times during which the person uses, carries, transports,
stores or otherwise has access to the firearm.
  (c) Paragraphs (a) and (b) of this subsection do not apply to:
  (A) A peace officer with respect to a firearm that the peace
officer receives from the peace officer's employer and possesses
or is required to possess as a condition of, and for use in the
course of, the peace officer's employment as a peace officer; or
  (B) An individual in the military or naval service of the
United States, the State of Oregon or another state with respect
to a firearm that the individual receives from a recognized
military or naval authority and that the individual possesses or
is required to possess as a condition of, and for use in the
course of, the individual's military or naval service.
  (2) For purposes of sections 2 to 13 of this 2013 Act:
  (a) A person owns a firearm if the person:
  (A) Holds title to, has another ownership interest in or has an
exclusive legal right to possess or control the firearm; or
  (B) Is not a person described in subparagraph (A) of this
paragraph and possesses the firearm without the express
permission of a person described in subparagraph (A) of this
paragraph.
  (b) A person described in paragraph (a)(A) of this subsection
continues to own a firearm that the person loses or that is
stolen from the person until the earlier of:
  (A) The date on which another person obtains a liability
insurance policy that covers the firearm in accordance with the
provisions of sections 2 to 13 of this 2013 Act; or
  (B) One year after the date on which the person reports the
loss or theft of the firearm to a law enforcement authority.
  (3) The Department of State Police, in accordance with ORS
183.745, may impose a civil penalty of not more than $10,000 on a
person that is subject to subsection (1)(a) of this section if
the person fails to obtain and maintain in effect in accordance
with subsection (1)(a) of this section a liability insurance
policy for a firearm the person owns. A person is subject to a
separate civil penalty in accordance with this subsection with
respect to each firearm for which the person does not have
coverage required under subsection (1)(a) of this section. + }
  SECTION 4.  { + (1) A person may not sell or otherwise transfer
a firearm or ammunition for a firearm to another person unless
the person receives and verifies as provided in subsection (2) of
this section evidence from the other person that the other person
has liability insurance that covers or, at the conclusion of the
transaction, will cover the firearm that is the subject of the
sale or transfer, or a firearm that uses the ammunition that is
the subject of the sale or transfer. The requirement in this
subsection is in addition to and not in lieu of any background
check required as a condition of selling or transferring a
firearm to the other person.
  (2) To verify that another person has a liability insurance
policy for the purposes of subsection (1) of this section, a
person must:
  (a) Receive from the other person and inspect an insurance card
or similar document that has the information required under
section 6 of this 2013 Act;
  (b) Receive from the other person and inspect valid,
government-issued identification on which appears a photograph
that bears a reasonable resemblance to the other person and that
matches the name shown on the card or document described in
paragraph (a) of this subsection; and
  (c) Contact the insurer identified on the card or document
described in paragraph (a) of this subsection to verify that the
insurer has issued and maintains in effect for the other person a
valid, unexpired liability insurance policy with the policy
number shown on the card or document.
  (3) A person that verifies in accordance with this section that
another person has a liability insurance policy for a firearm
that the other person already owns may sell or transfer another
firearm to the other person only after the person contacts the
insurer that provided the liability insurance policy and provides
to the insurer a description of the firearm that conforms to the
requirements set forth in section 7 (1)(c) of this 2013 Act for
the insurer to include in the insurer's coverage under the
liability insurance policy. If the insurer refuses coverage, the
person may not sell or transfer the firearm to the other person.
  (4) A person that sells or transfers a firearm in accordance
with this section shall notify the Department of State Police of
the transaction in accordance with procedures the department
specifies by rule. The department shall specify by rule the form,
format and contents of the notification required under this
subsection. + }
  SECTION 5.  { + (1) A person that owns a firearm that
discharges and causes an injury is strictly liable in money
damages for the injury to the extent of the person's coverage
under a liability insurance policy described in section 7 of this
2013 Act.
  (2) This section does not limit in any way a person's liability
in tort for injuries the person causes intentionally or
negligently.
  (3) A person may seek to recover any amount for which the
person is liable under this section from any other person whose
negligent or intentional act caused the injury for which the
person is liable, except that the person may not seek to recover
an amount from a minor or an incompetent person or from the
estate of a minor or incompetent person, if the minor or
incompetent person was the only person injured by the discharge
of the firearm. + }
  SECTION 6.  { + An insurer that issues a liability insurance
policy that is designed to meet the requirements of section 3
(1)(a) of this 2013 Act shall issue with the policy a card or
other documentary evidence that shows the insurer's name, address
and telephone number, an identification number for the liability
insurance policy and the effective date and expiration date of
the liability insurance policy. + }
  SECTION 7.  { + (1) A liability insurance policy that is
designed to meet the requirements of section 3 (1)(a) of this
2013 Act and that is issued for delivery in this state shall
state in the policy:
  (a) The name and address of the named insured;
  (b) The coverage that the policy affords, which must, at a
minimum, insure the named insured against liability for injuries
or damage that a discharge of a covered firearm causes to any
person other than the named insured, regardless of whether the
discharge occurs as a result of any person's accidental,
negligent or intentional act;
  (c) An explicit description of or reference to each covered
firearm by model name or number and serial number or any other
permanent markings or characteristics that would enable a person
to distinguish the covered firearm from another, similar firearm;
  (d) The premium the insurer charges the insured;
  (e) The policy period;
  (f) The limits of liability, which must be, at a minimum:
  (A) $250,000, payable to each person who is physically injured
or killed by the discharge of a covered firearm;
  (B) $250,000, payable to each person whose property is damaged
by the discharge of a covered firearm; and
  (C) $100,000, payable to each person that is injured in any way
by the discharge of a covered firearm; and
  (g) That the insurance provided is subject to all of the
provisions of sections 2 to 13 of this 2013 Act that relate to
the insured's liability for injuries or damage caused by a
discharge of a covered firearm.
  (2) A liability insurance policy described in this section may
exclude by name from coverage any person other than the named
insured, for any reason the Director of the Department of
Consumer and Business Services, with the approval of the Attorney
General, specifies by rule. If an insurer excludes a person in
accordance with this subsection, the insurer shall obtain a
statement or indorsement signed by each of the named insureds
that states that the policy will not provide coverage to any
named excluded person for injuries or damage caused by a
discharge of a covered firearm that is in the possession of the
named excluded person.
  (3) A liability insurance policy described in this section must
provide liability coverage for each of the insured's family
members who reside in the same household as the insured in an
amount equal to the amount of liability coverage that the insured
purchases. + }
  SECTION 8.  { + An insurer's liability with respect to a
liability insurance policy that is designed to meet the
requirements of section 3 (1)(a) of this 2013 Act and that is
issued for delivery in this state is absolute whenever injury or
damage covered by the policy occurs. The insurer may not annul or
cancel the policy by agreement with the insured as to liability
that accrues as described in this section after an injury or
damage occurs. A statement the insured makes or that another
person makes on the insured's behalf in violation of the policy
does not defeat or void the policy. + }
  SECTION 9.  { + A liability insurance policy that is designed
to meet the requirements of section 3 (1)(a) of this 2013 Act and
that is issued for delivery in this state is subject to the
following provisions, which do not need to be stated in the
liability insurance policy:
  (1) The policy, any written application for the policy and any
rider or indorsement that does not conflict with the provisions
of sections 2 to 13 of this 2013 Act constitutes the entire
contract between the insurer and the named insured.
  (2) The insured's satisfaction of a judgment for injury or
damage covered by the liability insurance policy is not a
condition precedent to the insurer's right or duty to make a
payment as a consequence of the injury or damage.
  (3) Any binder that an insurer issues before issuing a
liability insurance policy described in this section is subject
to the provisions of this section and fulfills the requirements
for the liability insurance policy. + }
  SECTION 10.  { + A liability insurance policy that is designed
to meet the requirements of section 3 (1)(a) of this 2013 Act and
that is issued for delivery in this state may provide that the
insured shall reimburse the insurer for any payment the insurer
would not have been obligated to make under the terms of the
policy except for the provisions of sections 7 and 8 of this 2013
Act. The liability insurance policy may further provide for
apportioning the coverage under the terms of the policy with
other valid and collectible insurance. + }
  SECTION 11.  { + An insurer that issues a liability insurance
policy that is designed to meet the requirements of section 3
(1)(a) of this 2013 Act and that is issued for delivery in this
state has the right to settle any claim that the policy covers.
If the insurer makes the settlement in good faith, the amount of
the settlement is deductible from the limits of liability
specified in the liability insurance policy. + }
  SECTION 12.  { + (1) A liability insurance policy that is
designed to meet the requirements of section 3 (1)(a) of this
2013 Act and that is issued for delivery in this state may also
provide any lawful coverage in excess of or in addition to the
required coverage. The excess or additional coverage does not
need to cover injuries or damage required under sections 7 and 8
of this 2013 Act and, to the extent that the excess or additional
coverage does not provide coverage, the coverage is not subject
to the provisions of sections 2 to 13 of this 2013 Act.
  (2) One or more insurers may combine policies or coverage to
provide an insured with the coverage required under section 3
(1)(a) of this 2013 Act. + }
  SECTION 13.  { + An insurer shall notify the Director of the
Department of Consumer and Business Services and the Department
of State Police at least 10 days before the insurer cancels a
liability insurance policy required under section 3 (1)(a) of
this 2013 Act because of the insured's failure to pay a premium
for the liability insurance policy. + }
  SECTION 14.  { + A person that is subject to the requirement
set forth in section 3 (1)(a) of this 2013 Act shall obtain
liability insurance for the person's firearms within one calendar
year after the operative date specified in section 15 of this
2013 Act. + }
  SECTION 15.  { + (1) Sections 2 to 14 of this 2013 Act become
operative January 1, 2014.
  (2) The Department of Consumer and Business Services and the
Department of State Police may take any action before the
operative date specified in subsection (1) of this section that
is necessary to enable either department to exercise, on and
after the operative date specified in subsection (1) of this
section, all of the duties, functions and powers conferred on the
departments by sections 2 to 14 of this 2013 Act. + }
  SECTION 16.  { + This 2013 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2013 Act takes effect on
its passage. + }
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