California follows the so called “make whole rule”. Under the “make whole rule” an insurer cannot recoup no- fault PIP benefits it paid until and unless the car accident claimant is “made whole.” In other words, in California an auto injury accident claimant must get monetary expenses and “pain and suffering” damages before any insurer gets a dime.
Oregon is not a progressive state when it comes to insurance laws. For example, Oregon law permits bad faith claims against insurers only in very limited circumstances. And, rather than adopting a “make whole” rule lie California, Oregon follows the so called “make half” rule.
Under Oregon’s make half rule an insurer can get reimbursed from the bad driver’s insurance company before an injured claimant gets any pain and suffering damages. Thus, in Oregon, it is possible for an injured auto accident claimant to get zero pain and suffering damages— if, for example, the bad driver’s insurance limits are not enough repay medicals and wages to the PIP insurer and pay the injured claimant’s pain and suffering damages.
There are ways to circumvent Oregon’s draconian “make half” rule.
In the meantime write your Oregon state lawmakers to ask that they: “1.Pass a law that creates a bad faith claim with punitive damages against insurers who breach any Oregon insurance regulation or law; and 2. Pass an auto accident “make whole rule” similar to California’s.