Cantu v. Progressive Classic Ins. Co.

“Insurance policy provisions in the written contract that are less favorable in any respect to the insured or the beneficiary are unenforceable. A policy may exclude or soften an authorized term that disfavors insureds or add a term that is neutral or favors insureds without violating the statute.” ORS 742.504

Defendant appealed the trial court's entry of summary judgment in favor of Plaintiff. Assigning error to the court's interpretation of ORS 742.504, Defendant argued that they were not required to provide underinsured motorist ("UIM") coverage for Plaintiff's injuries suffered in a motorcycle accident where Plaintiff had only purchased the motorcycle 8 days prior to the accident. Plaintiff argued that Defendant was not allowed to deny bodily injury coverage for Plaintiff’s recent accident merely because he crashed on a motorcycle because ORS 742.500-742.510 requires insurance policies to provide bodily injury coverage on "newly acquired vehicles," which would include the motorcycle. “Insurance policy provisions in the written contract that are less favorable in any respect to the insured or the beneficiary are unenforceable. A policy may exclude or soften an authorized term that disfavors insureds or add a term that is neutral or favors insureds without violating the statute.” ORS 742.504. To determine the meaning of the provision the Court looked at the meaning of the word "vehicle" in the rest of the statute. The Court was unconvinced that the legislative directive defining “newly acquired” or “substitute” in the policy extended as far as also defining “vehicle in a way that was inconsistent. Affirmed.