ORS 742.536: Notice of claim or legal action to insurer; insurer to elect manner of recovery of benefits furnished; lien of insurer.

(1) If an authorized motor vehicle liability insurer has furnished personal injury protection benefits, or an authorized health insurer has furnished benefits, to a person who was injured in a motor vehicle accident and the injured person makes a claim, or brings legal action, for damages for injuries against any other person, the injured person shall give notice of the claim or legal action to the insurer by personal service or by registered or certified mail. Service of a copy of the summons and complaint or copy of other process served in connection with the legal action is sufficient notice to the insurer, in which case a return showing service of the notice must be filed with the clerk of the court but is not a part of the record except to give notice. (2) An insurer may elect to seek reimbursement as provided in this section for benefits the insurer has furnished to the injured person out of any recovery the injured person obtains from a claim or legal action if the insurer has not been a party under ORS 742.534 to an interinsurer reimbursement proceeding with respect to benefits the insurer furnished to the injured person and the insurer is entitled by the terms of the insurer’s policy to the benefit of this section. The insurer shall give written notice of an election under this subsection by personal service or by registered or certified mail within 30 days after receiving the notice or knowledge of the claim or legal action to the person who made the claim or brought the legal action and to the person against whom the injured person made a claim or brought legal action. In the case of a legal action, a return showing service of the notice of election must be filed with the clerk of the court but is not a part of the record except to give notice to the claimant and the defendant of the lien of the insurer. (3) If the insurer serves a written notice of the insurer’s election under subsection (2) of this section and, if applicable, files a return showing service: (a) Subject to ORS 742.544, an insurer has a lien, for not more than the amount of benefits the insurer furnished, against an injured person’s recovery in an action for damages, less a proportionate amount of not more than 100 percent of the expenses, costs and attorney fees the injured person incurred in connection with the recovery. The proportionate amount must be calculated as the ratio between the amount of the lien before a reduction under this paragraph and the amount of the recovery. (b) The injured person shall include the benefits the insurer furnished as damages in a claim or legal action. (c) In the case of a legal action, the action must be taken in the name of the injured person. (4) As used in this section, “makes a claim” means delivers a written demand for a specific amount of damages that meets requirements reasonably established by the director’s rule. [Formerly 743.828; 2019 c.460 §1]