UIM Claims for Minors

The case of Wright v State Farm Mutual Automobile Insurance Company, 223
Or App _____ (filed October 29, 2008) can be found at
http://www.publications.ojd.state.or.us/A132898.htm. It has a simple point: UIM
claims for minors must be filed within two years of the accident or there must have
been a waiver of that two years by the underinsured motorist carrier, UIM carrier. It
also has some finer points.

The plaintiff was a guardian for her minor son and the defendant was the UIM
carrier. The plaintiff had not brought a claim against the at fault defendant within the
two year statute of limitation. At the time of the accident, plaintiff had underinsurance
under her own policy. The applicable portion of the policy which conformed to the
statute governing the matter, ORS 742.504(12)(a) included the following provision:
"Nor shall we have to make any payment under uninsured motor vehicle coverage
unless within two years from the date of the accident:
"(1) the insured and we agree to the amount due;
"(2) the insured or we have formally instituted arbitration proceedings;
"(3) the insured has filed an action against us in a court of competent jurisdiction; or
"(4) a suit for bodily injury has been filed against the uninsured motorist in a court of
competent jurisdiction and, within two years from the date of settlement or final
judgment against the uninsured motorist, the insured has formally instituted
arbitration proceedings or filed an action against us in a court of competent
jurisdiction."
(For our purposes, there is no difference between uninsured and
underinsured.)

The court went back to the statute regarding the tolling of the statute of
limitations for minors, ORS 12.160 (2005), and although a minor has until he or she
is 18 to file against the at the fault defendant, the minor must file the UIM claim within
two years of one of the four events outlined above because the moment one of these
events occurs, the cause of action for UIM accrues.