Oregon Revised Statutes

Or. Rev. Stat. § 742.031 (2026)

Bankruptcy clause required in certain liability policies

✓ current as of May 2026
Find cases: SyfertCases citing this section ORSoregonlegislature.gov JustiaChapter on Justia CornellLII Search CasesGoogle Scholar

      742.031 Bankruptcy clause required in certain liability policies. A policy of insurance against loss or damage resulting from accident to or injury suffered by an employee or other person and for which the person insured is liable, or against loss or damage to property caused by horses or by any vehicle drawn, propelled or operated by any motive power, and for which loss or damage the person insured is liable, shall contain within such policy a provision substantially as follows: “Bankruptcy or insolvency of the insured shall not relieve the insurer of any of its obligations hereunder. If any person or legal representative of the person shall obtain final judgment against the insured because of any such injuries, and execution thereon is returned unsatisfied by reason of bankruptcy, insolvency or any other cause, or if such judgment is not satisfied within 30 days after it is rendered, then such person or legal representatives of the person may proceed against the insurer to recover the amount of such judgment, either at law or in equity, but not exceeding the limit of this policy applicable thereto.” [Formerly 743.783 and then 743.772]

Notes of Decisions
Cited in 10 cases, 1991–2015 · leading case: Collins v. Farmers Ins., 822 P.2d 1146 (Or. 1991).
Collins v. Farmers Ins., 822 P.2d 1146 (Or. 1991). · cites it 8× “270 may also grant any lawful coverage in excess of or in addition to the required coverage, and such excess or additional coverage shall not be subject to the provisions of ORS 742.031, 742.400 and 742.450 to 742.464.”
Farmers Ins. Co. of Oregon v. Mowry, 261 P.3d 1 (Or. 2011). · cites it 2× “270 may also grant any lawful coverage in excess of or in addition to the required coverage, and such excess or additional coverage shall not be subject to the provisions of ORS 742.031, 742.400 and 742.450 to 742.464.”
Brownstone Homes Condo. Ass'n v. Brownstone Forest Heights, LLC, 363 P.3d 467 (Or. 2015). · cites it 3× “772 (1989) (now codified at ORS 742.031) 2 provides for judgments against insured defendants that are within policy limits.”
Farmers Ins. v. Stockton, 827 P.2d 938 (Or. Ct. App. 1992). · cites it 4× “The default judgments against the Wellses and Stockton amount to admissions by them of all of the material facts alleged against them.”
Brownstone Homes Condo. Ass'n v. Brownstone Forest Heights, LLC, 298 P.3d 1228 (Or. Ct. App. 2013). · cites it 9× “352 and ORS 742.031; (2) in the circumstances presented here, ORS 31.”
Harlan v. Valley Ins., 875 P.2d 471 (Or. Ct. App. 1994). · cites it 2× “Plaintiffs brought this action under ORS 742.031, which permits injured parties to sue a tortfeasor's insurer directly.”
United Servs. Auto. Assn. v. Reilly, 858 P.2d 457 (Or. Ct. App. 1993). “270 may also grant any lawful coverage in excess of or in addition to the required coverage, and such, excess or additional coverage shall not be subject to the provisions of ORS 742.031, 742.400 and 742.450 to 742.464.”
Anderson v. Farmers Ins., 71 P.3d 144 (Or. Ct. App. 2003). “270 may also grant any lawful coverage in excess of or in addition to the required coverage, and such excess or additional coverage shall not be subject to the provisions of ORS 742.031, 742.400 and 742.450 to 742.464.”
York v. Paakkonen, 313 P.3d 332 (Or. Ct. App. 2013). · cites it 2× “352, ORS 742.031, and ORS 742.061. See Swett v.”
5 Star, Inc. v. Atl. Cas. Ins., 344 P.3d 467 (Or. Ct. App. 2015). “Plaintiffs Kevin Rains and Mitzi Rains, who have a judgment against 5 Star, brought a claim against Atlantic pursuant to ORS 742.031, which permits direct actions by judgment creditors against the insurer of an insured, but insolvent, judgment debtor.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.