On the Oregon Property & Casualty exam, the Personal Automobile Policy appears both as a standard ISO-style contract and as a set of Oregon auto rules you must apply. This standalone guide reviews the policy's coverage parts, then drills into the Oregon overlay: the commonly cited 25/50/20 financial-responsibility minimums, the mandatory Personal Injury Protection (PIP) and uninsured-motorist requirements, and the at-fault (tort) system with modified comparative negligence (51% bar). The Oregon-specific material—especially mandatory PIP in an at-fault state—is where most state credit is earned.

Policy structure (the national base)

The Personal Auto Policy (PAP) is a packaged contract organized into lettered parts:

• Part A — Liability: pays bodily injury (BI) and property damage (PD) the insured is legally liable for; the insurer provides a defense, and supplementary payments such as defense costs are paid in addition to the limit.
• Part B — Medical Payments: pays reasonable medical and funeral costs for the insured and passengers regardless of fault (in Oregon this role is filled largely by mandatory PIP).
• Part C — Uninsured/Underinsured Motorists: pays the insured's injuries when the at-fault party is uninsured or underinsured.
• Part D — Coverage for Damage to Your Auto: Collision and Other Than Collision (Comprehensive), each with a deductible, settled at Actual Cash Value (ACV).
• Part E — Duties After an Accident or Loss and Part F — General Provisions.

Limits may be written as split limits (e.g., 25/50/20) or as a Combined Single Limit (CSL). Insureds include the named insured, resident spouse, resident relatives, and permissive users—a friend who borrows the car with permission is generally covered. Eligible vehicles are private passenger autos, pickups, and vans not used mainly for business, and an owned utility trailer generally falls within the covered-auto definition for liability. That framework is national; Oregon governs the limits, the mandatory coverages, and the liability environment around it.

Oregon uses a tort system—but requires PIP

This is the single most important Oregon nuance: Oregon is an at-fault / tort state, not a no-fault state, yet it still requires Personal Injury Protection (PIP) on every auto policy. PIP does not change who is legally responsible—the at-fault driver remains liable—but it gives the insured first-dollar, no-fault medical and wage benefits after a crash regardless of who caused it. Don't let mandatory PIP trick you into calling Oregon a no-fault state; the right to sue the at-fault driver is preserved.

• PIP pays the insured's (and passengers') reasonable medical expenses, wage loss, and certain related costs up to the PIP limits, regardless of fault.
• Because Oregon keeps tort liability, an injured party can still recover from the at-fault driver's liability coverage or by filing suit, with PIP coordinating against any such recovery.

Oregon applies modified comparative negligence (51% bar)

When both drivers share blame, Oregon uses modified comparative negligence under a 51% bar rule. The rule to remember: a claimant's recovery is reduced by that claimant's own percentage of fault, and a claimant whose fault is 51% or greater is barred entirely from recovering. A claimant who is 50% or less at fault still recovers, reduced by their share. (Contrast this with pure comparative states, where even a mostly-at-fault claimant recovers something.) Expect the exam to test that Oregon is modified comparative with a 51% bar, not pure comparative and not contributory.

Financial responsibility: 25/50/20 plus mandatory PIP and UM

Every Oregon driver generally must carry the mandatory coverages, with liability at or above the minimum split limits, commonly cited as:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $20,000 property damage per accident

Shorthand: "25/50/20" (verify the current statutory figures). On top of liability, Oregon mandates PIP and uninsured motorist (UM) coverage—these are required, not merely offered. These are statutory floors; producers routinely recommend higher limits. After certain serious violations a driver may be required to file an SR-22, a certificate proving the required coverage is in force.

In a 25/50/20 limit, remember the order: the first number is BI per person, the second is BI per accident, and the third (20) is property damage per accident—don't slide the property-damage figure into a BI slot.

Uninsured and underinsured motorist rules

This is a heavily tested Oregon area:

• Uninsured motorist (UM) coverage is mandatory in Oregon, generally at limits at least equal to the bodily-injury liability minimums.
• UM responds when the insured is injured by an at-fault driver who has no liability insurance, and it also covers hit-and-run drivers.
• Underinsured motorist (UIM) applies when the at-fault driver has insurance but at limits too low to cover the insured's damages; it pays the gap up to the insured's UIM limit.
• The other driver must be legally at fault for UM/UIM to respond.

Optional and physical-damage coverages

• PIP is mandatory (see above); additional Medical Payments is generally not needed on top of required PIP.
• Collision pays for impact with another vehicle or object or upset of the auto; Comprehensive (Other Than Collision) pays for losses such as theft, fire, hail, vandalism, or hitting an animal. Both are optional but typically required by a lender.
• On a total loss, physical-damage coverage pays the vehicle's actual cash value at the time of loss—gap coverage is what pays the difference between ACV and a larger loan balance. A betterment deduction may apply when new parts leave the vehicle better than before the loss.
• A newly acquired auto is generally covered for a limited time if reported within the required period, and a named driver exclusion removes coverage while a specifically named person is driving.

Cancellation and nonrenewal

Oregon regulates how an insurer may end a personal auto policy:

• Mid-term cancellation generally requires the insurer to give the policyholder the advance written notice required by law.
• Nonrenewal at the end of the term likewise requires advance written notice within the required time so the insured can find replacement coverage.
• On cancellation, the insurer keeps only the earned premium and refunds the unearned portion; when the insurer cancels, the refund is generally pro rata without penalty.

Required vs. optional coverages

Key Oregon numbers to memorize

Common exam traps

• Oregon is at-fault (tort), but PIP is mandatory. Mandatory PIP does not make Oregon a no-fault state—the right to sue the at-fault driver remains.
• Oregon uses modified comparative negligence with a 51% bar, not pure comparative and not contributory—a claimant 51% or more at fault recovers nothing.
• 25/50/20—the $20k is property damage; don't slide it into a BI slot.
• UM is required in Oregon (not merely offered), and so is PIP.
• Hitting an animal is Comprehensive, not Collision.
• Total loss pays ACV; gap coverage (not the PAP itself) covers a larger loan balance.
• Liability defense/supplementary payments are paid on top of the limit (national rule that still applies in Oregon).

Quick recap

• The PAP's Parts A–F structure is national; Oregon sets the limits, mandatory coverages, and legal framework.
• Oregon is a tort/at-fault state using modified comparative negligence with a 51% bar—a claimant 51% or more at fault recovers nothing.
• Minimum liability is commonly cited as 25/50/20 (verify).
• Oregon requires PIP and uninsured motorist coverage—these are mandatory, not optional offers.
• Mandatory PIP does not make Oregon no-fault; it provides first-dollar medical/wage benefits while preserving the right to sue.
• Mid-term cancellation and nonrenewal require the advance written notice the law specifies, with unearned premium refunded.