(2) When the injured person receiving hospitalization or medical care from a physician, physician assistant or nurse practitioner is the beneficiary of an insurance policy, including a policy that provides personal injury protection coverage or similar no-fault medical insurance but excluding a health insurance policy, that provides for payment of such hospitalization and medical care, both the hospital and physician, physician assistant or nurse practitioner shall have liens upon the amount payable under the insurance policy. If a hospital or physician, physician assistant or nurse practitioner has properly perfected a lien pursuant to ORS 87.565 (2), the insurer obligated to make payment shall pay the sum due under the insurance policy directly to the hospital and physician, physician assistant or nurse practitioner in the amount due each for services rendered, and such payment shall constitute a release of the insurer making the payment to the extent of the payment.

(3) When there are insufficient funds to satisfy in full the liens of all hospitals, physicians, physician assistants and nurse practitioners claiming a lien created by this section, the insurer making the payment shall prorate the available funds without regard to the sequence of the filing of the notice of lien by the hospitals, physicians, physician assistants or nurse practitioners and pay the hospitals, physicians, physician assistants or nurse practitioners in proportion to the amount due each for services rendered. [Amended by 1989 c.727 §1; 1999 c.146 §1; 2014 c.45 §5]