justicedao/ipfs_state_laws huggingface dataset:
410-141-5160 ASSET VALUATION AND PERMITTED INVESTMENTS: Record of Investments As to each investment, a CCO shall make a written record in permanent form, signed by a person authorized by the CCO’s Board or by a committee thereof charged with the duty of investing the funds. The record shall show the authorization and approval of the investment and in addition shall contain: (1) In the case of mortgage loans: (a) The name of the borrower; (b) The location and legal description of the property; (c) A physical description and the appraised value of the security as determined by a competent and qualified appraiser; and (d) The amount of the loan, rate of interest and terms of repayment. (2) In the case of obligations: (a) The name of the obligor; (b) A description of the security and record of earnings; (c) The amount invested and the rate of interest or dividend; and (d) The maturity and yield based upon the purchase price. (3) In the case of corporate stocks: (a) The name of the issuing corporation; (b) The record of earnings and of dividends paid for the preceding three years for preferred stock and for the preceding five years for common stock; (c) A summary of the financial statement of the corporation as of the end of the preceding fiscal year; (d) The exchange, if any, on which the stock is listed; and (e) The amount invested and the number of shares acquired and held. (4) In the case of real estate, leaseholds or vendors' interests under contracts of sale therein: (a) The location and legal description of the property; (b) A physical description and the appraised value of the property and interest therein; (c) The purchase price and terms; (d) The amount of any lien known to be against the property; (e) If of a leasehold, the terms of the outstanding lease; and (f) If a vendor's interest under a contract of sale, the terms and status of payments under the contract. (5) In the case of all investments: (a) The amount of any expenses and commissions incurred on account of the investment or loan and by whom and to whom payable if not covered by contracts with mortgage loan representatives or correspondents that are part of the CCO's records; and (b) The name of any director, trustee or officer of the CCO, having a direct, indirect or contingent interest in the loan, security or property, or who would derive, directly or indirectly, any benefit therefrom, and the nature of such interest or benefit. 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 59-2019, adopt filed 12/18/2019, effective 01/01/2020
410-141-5165 ASSET VALUATION AND PERMITTED INVESTMENTS: Prohibited Investments (1) A CCO shall not make investments: (a) Which at the time of purchase or acquisition are not interest-bearing or dividend or income-paying, or are in default in any respect; or (b) From which the CCO is not entitled to receive for its exclusive account and benefit the interest, dividends or income. (2) Subsection (1)(a) of this section shall not apply to property acquired under OAR 410-141-5115, OAR 410-141-5135 or OAR 410-141-5140 if the property is acquired with the intent and expectation that it shall be income-producing. (3) A CCO shall not have any combination of investments in or secured by the stocks, obligations, and property of one person, corporation or political subdivision in excess of ten percent of the CCO's assets, nor shall it invest more than ten percent of its assets in a single parcel of real property or in any other single investment. This subsection does not apply to investments in, or loans upon, the security of the general obligations of a sovereign. (4) A CCO shall not invest its funds in any investment or security found by the Authority to be designed to evade any prohibition of state or federal law. (5) The Authority may issue a determination requiring the disposal of an investment which the Authority finds to be made or retained in violation of state or federal law, or of an investment which the Authority, for good cause, determines to be prejudicial to, or to impair the security of, the stockholders or 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 59-2019, adopt filed 12/18/2019, effective 01/01/2020
410-141-5170 CAPITALIZATION: Capital and Surplus (1) CCO shall possess and thereafter maintain capital or surplus or any combination thereof equal to no less than $2.5 million. (2) Notwithstanding a CCO’s compliance with subsection (1) a CCO shall at all times also comply with the risk-based capital standards set forth at OAR 410-141- 5295 to 5320. (3) For the protection of the public, the Authority may require a CCO to possess and maintain capital or surplus, or any combination thereof, in excess of the amounts otherwise required under this section, owing to the type, volume and nature of business transacted by the CCO, if the Authority determines under OAR 410-141-5175 that the greater amount is necessary for maintaining the CCO’s solvency in accordance with OAR 410-141-5195 et seq For the purpose of determining the reasonableness and adequacy of a CCO's capital and surplus, the Authority may consider the net effect of factors bearing on the financial condition of the CCO including but not limited to: (a) The size of the CCO, as measured by its assets, capital and surplus, reserves, capitated revenue and other appropriate criteria. (b) The number of Members covered by the CCO. (c) The extent of the geographical dispersion of the Members covered by the CCO. (d) The nature and extent of the reinsurance program of the CCO. (e) The quality, diversification and liquidity of the investment portfolio of the CCO. (f) The recent past and projected future trend in the size of the investment portfolio of the CCO. (g) The combined capital and surplus maintained by comparable CCOs. (h) The adequacy of the reserves of the CCO. (i) The quality and liquidity of investments in affiliates. The Authority may treat any such investment as a disallowed asset for purposes of determining the adequacy of combined capital and surplus whenever in the judgment of the Authority the investment so warrants. (j) The quality of the earnings of the CCO and the extent to which the reported earnings include extraordinary items. (4) In comparing the capital and surplus maintained by other CCOs, the Authority shall consider the extent to which each of such factors varies from CCO to CCO. In determining the quality and liquidity of investments in subsidiaries, the Authority shall consider the individual subsidiary and may discount or disallow its valuation to the extent that the individual investments so warrant. 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 59-2019, adopt filed 12/18/2019, effective 01/01/2020
410-141-5175 CAPITALIZATION: Impaired Capital and Surplus (1) If the Authority determines in accordance with OAR 410-141-5195 to 410-141-5220 that a CCO’s reserves, however calculated or estimated, are inadequate, the Authority may require the CCO to maintain reserves in such additional amount as is needed to make them adequate. (2) Whenever the Authority determines from any showing or statement made to the Authority or from any examination made by the Authority that the assets of a CCO are less than its liabilities plus required capitalization, the Authority may proceed immediately under the provisions of ORS 415.203 or the Authority may allow the CCO a period of time, not to exceed ninety (90) days, in which to make good the amount of the impairment with cash or authorized investments. (3) If the amount of any such impairment is not made good within the time prescribed by the Authority under subsection (2) of this section, the Authority shall proceed under the provisions of ORS 415.203. (4) An order directing a CCO to cure an impairment shall be confidential for such time as the Authority considers proper but not exceeding the time prescribed by the Authority for making the amount of the impairment good. If the Authority determines that the public interest in disclosure outweighs the public interest in protecting the solvency of the CCO, the Authority may make the order available for public inspection. 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 59-2019, adopt filed 12/18/2019, effective 01/01/2020
410-141-5180 CAPITALIZATION: Dividend and Distribution Restrictions (1) Unless prior written approval of the Authority is first obtained pursuant to (2), a CCO shall not: (a) Make any distribution of assets by dividend or other distribution to shareholders, equity members, parent companies or any related parties that would cause the CCO’s capital and surplus to fall below the prescribed minimum under OAR 410-141-5170. (b) Reduce its total adjusted capital by partial distribution of its assets, by payment in the form of a dividend or otherwise to shareholders, equity members, parent companies or any related parties below an amount equal to three hundred (300) percent of the CCO’s authorized control level risk-based capital, as defined in and calculated pursuant to OAR 410-141-5215. (c) Declare or pay dividends to shareholders, equity members, parent companies or any related parties other than from earned surplus. For purposes of this subsection, “earned surplus” does not include surplus arising from unrealized capital gains or revaluation of assets. (d) Declare or pay an extraordinary dividend or distribution to shareholders, equity members, parent companies or any related parties. A dividend or dividend is “extraordinary” for purposes of this subsection if it exceeds an amount equal to the aggregate of the CCO’s net after-tax income for the prior three calendar years, less any dividends or distributions paid during the prior two calendar years and the current year. “Extraordinary dividend or distribution” does not include pro rata distributions of any class of the CCO's own securities. (2) A CCO shall notify the Authority no later than twenty (20) business days prior to taking any action pursuant to subsection (1). The Authority shall approve or disapprove such payment within twenty (20) business days and the CCO shall not pay or make any extraordinary dividend or distribution unless or until the Authority provides written approval of such payment to 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 55-2020, minor correction filed 10/01/2020, effective 10/01/2020 DMAP 59-2019, adopt filed 12/18/2019, effective 01/01/2020
410-141-5190 CAPITALIZATION: Surplus Notes (1) With the prior approval of the Authority, a CCO may issue one or more surplus notes in order to secure funding needed to comply with minimum capital and surplus requirements and/or minimum risk-based capital requirements under these rules, or otherwise to provide additional funding required for the CCO’s operations. (2) Approval by the Authority of the issuance and sale of a surplus note by a CCO, including the form and terms of the surplus note and the purchaser of the surplus note, is required and shall be at the sole discretion of the Authority. (3) The issuance and sale of a surplus note, and the form and terms of the surplus note, shall comply with the standards for the issuance of surplus notes set forth in the Accounting Practices and Procedures Manual published by the NAIC, as well as the following requirements: (a) A surplus note shall be sold only in return for cash or marketable securities having readily determinable values and liquidity satisfactory to the Authority. (b) Commissions, promotion expenses or finders’ fees may not be paid in connection with a surplus note sale except for commissions, expenses and fees customarily incurred within the context of public or private placement offerings underwritten by an investment banking or similar entity. (c) Payment of principal or interest on a surplus note may not be made without the prior written approval of the Authority. The issuer shall provide the Authority with written notice at least twenty (20) business days prior to the intended date of the payment of principal or interest on a surplus note or such shorter period as the Authority may permit. (d) Payment of principal or interest on a surplus note shall be subordinated to payment of all other liabilities of the issuer. (e) Payment of interest on a surplus note may be made only from the unassigned funds of the issuer. (f) Surplus notes shall not be assignable or negotiable without the prior written approval of the Authority. 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 59-2019, adopt filed 12/18/2019, effective 01/01/2020
410-141-5195 CAPITALIZATION: Risk-based Capital (RBC) Definitions As used in OAR 410-141-5195 to 410-141-5220: (1) "Authorized Control Level RBC" means the number determined under the risk-based capital formula in accordance with the RBC Instructions. (2) "Company Action Level RBC" means, with respect to any CCO, the product of 2.0 (200 percent) and the CCO’s Authorized Control Level RBC. (3) “Corrective Order” means an order entered by the Authority under specifying corrective actions the Authority determines are required of a CCO in respect of its Total Adjusted Capital and its RBC Level. (4) "Mandatory Control Level RBC" means the product of .70 (70 percent) and the CCO’s authorized control level RBC. (5) "RBC Instructions" means the RBC Report form and including risk-based capital instructions adopted by the NAIC, as such form and instructions may be amended by the NAIC from time to time and identified by the Authority to be applicable for the reporting period. The applicable RBC Instructions prescribed by the Director referred to in this rule are available for inspection at the office of the Authority. Any person interested in inspecting RBC Instructions may contact the Authority at actuarial.services@oha.oregon.gov. (6) "RBC Level" means a CCO’s Company Action Level RBC, Regulatory Action Level RBC, Authorized Control Level RBC or Mandatory Control Level RBC. (7) "RBC Plan" means a comprehensive financial plan containing the elements specified in OAR 410-141-5195 to 410-141-5220. If the Authority rejects the RBC Plan and it is revised by the CCO with or without the Authority's recommendation, the plan shall be called the "revised RBC Plan." (8) "RBC Report" means the report required by OAR 410-141-5200. (9) "Regulatory Action Level RBC" means the product of 1.5 (150 percent) and the CCO’s Authorized Control Level RBC. (10) "Total Adjusted Capital" means the sum of: (a) A CCO’s capital and surplus as determined in accordance with the Statutory Accounting Principles applicable to the annual financial statements required to be filed under OAR 410-141-5015; and (b) Such other items, if any, as the RBC instructions may provide. 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 59-2019, adopt filed 12/18/2019, effective 01/01/2020
410-141-5200 CAPITALIZATION: RBC Reports (1) On or before April 30 of each year, a CCO shall prepare and submit to the Authority a report of its Total Adjusted Capital and its RBC Levels as of the end of the calendar year immediately preceding, in a form and containing such information as are required by the RBC instructions. A CCO shall file its RBC Report with the NAIC in accordance with the RBC instructions. The CCO shall report in its annual financial statement its Total Adjusted Capital and its Authorized Control Level RBC as calculated in its RBC Report. A CCO’s RBC Report will be considered confidential and shall not be made available to the public. (2) A CCO’s Total Adjusted Capital shall be determined in accordance with the formula set forth in the RBC instructions. The formula shall take the following factors into account (and may adjust for the covariance between such factors) determined in each case by applying the factors in the manner set forth in the RBC instructions: (a) Asset risk; (b) Credit risk; (c) Underwriting risk; and (d) All other business risks and such other relevant risks as are set forth in the RBC instructions. (3) A substantial excess of Total Adjusted Capital over Company Action Level RBC is desirable. Accordingly, a CCO should seek to maintain Total Adjusted Capital that exceeds the CCO’s Company Action Level RBC. Additional capital is used and useful in the business of a risk-bearing entity and helps to secure a CCO against various risks inherent in, or affecting, the business of a CCO and not accounted for or only partially measured by the risk-based capital requirements contained in OAR 410-141-5195 to 410-141-5220 . The Authority recommends that a CCO endeavor to maintain its Total Adjusted Capital at no less than three hundred (300) percent of its Authorized Control Level RBC. (4) If a CCO files an RBC Report that in the judgment of the Authority is inaccurate, then the Authority shall adjust the RBC Report to correct the inaccuracy and shall notify the CCO of the adjustment. The notice shall contain a statement of the reason for the adjustment. An RBC Report as so adjusted is referred to as an "adjusted RBC Report." 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 59-2019, adopt filed 12/18/2019, effective 01/01/2020
410-141-5215 CAPITALIZATION: Authorized Control Level Event (1) "Authorized Control Level Event" means any of the following events: (a) The filing of an RBC Report by the CCO that indicates that the CCO's Total Adjusted Capital is greater than or equal to its Mandatory Control Level RBC but less than its Authorized Control Level RBC. The CCO shall provide prompt written notice to the Authority, together with an RBC Report, if it learns that the CCO is the subject of an Authorized Control Level Event; (b) The notification by the Authority to the CCO of an adjusted RBC Report that indicates the event in subsection (a), if the CCO does not challenge the adjusted RBC Report; (c) If the CCO challenges an adjusted RBC Report that indicates the event in subsection (a), according to the terms of the CCO Contract, notification by the Authority to the CCO that the Authority has rejected the CCO's challenge; (d) The failure of the CCO to respond, in a manner satisfactory to the Authority, to a Corrective Order if the CCO has not challenged the Corrective Order; (e) If the CCO has challenged a Corrective Order according to the terms of the CCO Contract and the Authority has rejected the challenge or modified the Corrective Order, the failure of the CCO to respond, in a manner satisfactory to the Authority, to the Corrective Order subsequent to rejection or modification by the Authority. (2) In the event of an Authorized Control Level Event, the Authority may take any or all of the following actions: (a) Take such actions as are allowed under OAR 410-141-5210 regarding a CCO with respect to which a Regulatory Action Level Event has occurred; (b) If the Authority deems it to be in the best interests of the Members and creditors of the CCO and of the public, the Authority may: (A) Place the CCO under regulatory control and/or apply to have the CCO made the subject of court-ordered conservancy proceedings pursuant to ORS 415.203 to 415.400; (B) Terminate the CCO Contract(s) with the Authority and cause the Members covered by the CCO to be transferred to one or more other CCOs. 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 59-2019, adopt filed 12/18/2019, effective 01/01/2020
410-141-5220 CAPITALIZATION: Mandatory Control Level Event (1) "Mandatory Control Level Event" means any of the following events: (a) The filing of an RBC Report that indicates that the CCO's Total Adjusted Capital is less than its Mandatory Control Level RBC. The CCO shall provide prompt written notice to the Authority, together with an RBC Report, if it learns that the CCO is the subject of a Mandatory Control Level Event. (b) Notification by the Authority to the CCO of an adjusted RBC Report that indicates the event in subsection (a), if the CCO does not challenge the adjusted RBC Report. (c) If the CCO challenges an adjusted RBC Report, according to the terms of the CCO Contract, that indicates the event in subsection (a), notification by the Authority to the CCO that the Authority has, rejected the CCO's challenge. (2) In the event of a Mandatory Control Level Event, the Authority shall take the following actions: (a) Place the CCO under regulatory control and/or apply to have the CCO made the subject of court-ordered conservancy proceedings pursuant to Sections 24 through 37 of S.B. 1041. (b) Terminate the CCO Contract(s) with the Authority and cause the Members covered by the CCO to be transferred to one or more other CCOs. (3) Upon the occurrence of any of the following events, a CCO may appeal determination or action by the Authority in connection with any event described in this section pursuant to the terms of the CCO Contract. These events are as follows: (a) Notification to a CCO by the Authority of an adjusted RBC Report; (b) Notification to a CCO by the Authority that: (A) The CCO's RBC Plan or revised RBC Plan is unsatisfactory; and (B) Notification constitutes a Regulatory Action Level Event with respect to the CCO. (c) Notification to a CCO by the Authority that the CCO has failed to adhere to its RBC Plan or revised RBC Plan and that the failure has a substantial adverse effect on the ability of the CCO to eliminate the Company Action Level Event with respect to the CCO in accordance with its RBC Plan or revised RBC Plan; or (d) Notification to a CCO by the Authority of a Corrective Order with respect to the CCO. (4) The Authority may keep confidential a CCO’s RBC Plan or the results or report of any examination or analysis conducted by the Authority in connection with a CCO’s RBC Plan if the Authority determines that disclosure of such information is not necessary to protect the public interest and may jeopardize the CCO’s ability to successfully implement the RBC Plan. 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 59-2019, adopt filed 12/18/2019, effective 01/01/2020