410-141-5070 FINANCIAL SOLVENCY REGULATION: Assets, Liabilities, Reserves (1) In any determination of the financial condition of a CCO, only assets owned by the CCO are allowed which consist of the following: (a) Cash in the possession or control of the CCO, including the true balance of any deposit in a solvent bank or trust company. (b) Investments permitted by OAR 410-141-5095 to 410-141-5165 and held in accordance with these rules, and due or accrued income items in connection therewith to the extent considered by the Authority to be collectible. (c) Receivables for capitated revenue payments due the CCO, to the extent allowed by the Authority. (d) Amounts recoverable from reinsurers if credit for reinsurance may be allowed to the CCO pursuant to OAR 410-141-5050 to 410-141-5070. (e) Other assets considered by the Authority to be available for the payment of losses and claims, at values determined by the Authority. (2) In addition to assets specifically excluded by subsection (1), the following shall not be allowed as assets in any determination of the financial condition of a CCO: (a) Advances to officers, employees, agents and other persons on personal security only. (b) Stock or other equivalent equity interests of such CCO owned by it, or any material equity therein or loans secured thereby, or any material proportionate interest in such stock or equivalent equity interest acquired or held through the ownership by such CCO of an interest in another firm, corporation or business unit. (c) Tangible personal property, except such property as the CCO is otherwise permitted to acquire and retain as an investment under these rules and which is deemed by the Authority to be available for the payment of losses and claims or which is otherwise expressly allowable, in whole or in part, as an asset. (d) The amount, if any, by which the book value of any investment as carried in the ledger assets of the CCO exceeds the value thereof as determined under these rules. (3) In any determination of the financial condition of a CCO, liabilities to be charged against its assets shall be calculated in accordance with these rules and shall include: (a) The amount necessary to pay all of its unpaid losses and claims incurred on or prior to the date of the statement, whether reported or unreported to the CCO, together with the expenses of adjustment or settlement thereof. (b) A reserve equal to the unearned portion of capitated revenue held by the CCO as of the financial statement date. (c) Reserves which place a sound value on its liabilities and which are not less than the reserves according to accepted actuarial standards consistently applied and based on actuarial assumptions relevant to CCO Contract provisions. (d) Taxes, expenses and other obligations due or accrued at the date of the statement. (e) Any additional reserves for asset valuation contingencies or loss contingencies required by these rules or considered to be necessary by the Authority for the protection of the Authority and the Members of the CCO. Statutory/Other Authority: ORS 413.042, 414.572, 414.591 & 414.605 Statutes/Other Implemented: ORS 414.570-414.686 & 415.001-415.430 History: DMAP 143-2024, amend filed 12/29/2024, effective 01/01/2025 DMAP 58-2019, adopt filed 12/18/2019, effective 01/01/2020