North Pacific Insurance v. Hamilton

I agree with the majority and the trial court that North Pacific’s policy may and does limit its liability limits to the statutory minimum of $25,000 with respect to plaintiff. I do not agree that the balance of the majority opinion’s analysis is correct or necessary.

The trial court was correct that ORS 742.544 does not apply because that statute deals with reimbursement. Here, there was no reimbursement but a pro tanto reduction of available limits based on payments made under PIP. The policy provides:

“Any payments made by us under this insurance to an insured shall be applied in reduction…