justicedao/ipfs_state_laws huggingface dataset:
836-028-0005 Statutory Authority, Purpose OAR 836-028-0005 to 836-028-0045 are adopted pursuant to ORS 731.244 and 735.360 in order to carry out the Oregon Liability Risk Retention Law and to protect the insurance-buying public. Statutory/Other Authority: ORS 731, 735 & 746 Statutes/Other Implemented: ORS 735.300 - 735.365 History: ID 19-1988, f. & cert. ef. 12-6-88 IC 7-1988, f. & cert. ef. 4-14-88
836-028-0008 Unfair Trade Practice Failure of a purchasing group to comply with OAR 836-028-0013 or 836-028-0020 is an unfair trade practice under ORS 746.240. Statutory/Other Authority: ORS 731, 731 & 746 Statutes/Other Implemented: ORS 746.240 History: ID 19-1988, f. & cert. ef. 12-6-88 IC 7-1988, f. & cert. ef. 4-14-88
836-028-0010 Registration of Purchasing Groups; Forms Before doing business in this state, a purchasing group shall notify and register with the Director by completing and submitting to the Director the following documents: (1) A registration. The registration must be made on the form prescribed by the Director. (2) An appointment of the Director as the agent for service of legal documents for the purchasing group. The appointment must be made on the form prescribed by the Director. [ED. NOTE: Forms referenced are available from the agency.] Statutory/Other Authority: ORS 731, 735 & 746 Statutes/Other Implemented: ORS 735.330 History: ID 19-2006, f. & cert. ef. 9-26-06 ID 19-1988, f. & cert. ef. 12-6-88 IC 7-1988, f. & cert. ef. 4-14-88
836-028-0013 Permitted Insurers A purchasing group may not purchase insurance from a risk retention group or an insurer for members of the purchasing group in this state: (1) Unless the risk retention group is registered in this state. (2) Unless the insurer is authorized to transact insurance in this state or is an eligible nonadmitted insurer under ORS 735.415. Statutory/Other Authority: ORS 731, 735 & 746 Statutes/Other Implemented: ORS 735.335 History: ID 19-1988, f. & cert. ef. 12-6-88
836-028-0016 Amendments to Registration by Purchasing Group (1) A purchasing group shall amend its registration in this state when the purchasing group changes any of the following. (a) The principal place of business of the purchasing group; (b) The insurer or risk retention group from whom coverage is purchased; (c) The lines or classifications of liability insurance that the purchasing group purchases. (2) When a purchasing group changes its principal place of business, the purchasing group shall include the following in the amended registration: (a) The street address, including city and state; (b) The mailing address, if different; (c) The telephone number. Statutory/Other Authority: ORS 731, 735 & 746 Statutes/Other Implemented: ORS 735.330(1)(e) History: IC 7-1988, f. & cert. ef. 4-14-88
836-028-0020 Use of Insurance Producers by Purchasing Groups A purchasing group shall employ an insurance producer to procure insurance for its members in Oregon. Such an insurance producer: (1) Must hold a current insurance producer’s license issued by the Division of Financial Regulation, in order to transact insurance in Oregon; or (2) Must hold a current surplus line licensee's license issued under the Oregon Surplus Lines Law, in order to place business with a surplus lines insurer. Statutory/Other Authority: ORS 731, 735 & 746 Statutes/Other Implemented: ORS 735.350 History: ID 15-2024, minor correction filed 08/06/2024, effective 08/06/2024 ID 8-2005, f. 5-18-05, cert. ef. 8-1-05 ID 19-1988, f. & cert. ef. 12-6-88
836-028-0035 Registration of Foreign Risk Retention Groups; Forms Before doing business in this state, a risk retention group chartered in a state other than this state shall submit to the Director the following documents: (1) A registration. The registration must be made on the form prescribed by the Director. (2) A plan of operation or feasibility study, certified by the state of domicile or incorporation. (3) A copy of the most recent financial statement of the risk retention group, certified by the state of domicile or incorporation, with evidence that the financial statement was certified by an independent certified public account. (4) A statement of opinion on loss and loss adjustment expense reserves, certified by a member of the American Academy of Actuaries or by a loss reserve specialist qualified under criteria established by the National Association of Insurance Commissioners as of the effective date of this rule. (5) A copy of the most recent examination report conducted by the Insurance Department of the state of domicile or incorporation. (6) An appointment of the Director as the agent for services of legal documents for the risk retention group. The appointment must be made on the form prescribed by the Director. [ED. NOTE: Forms referenced are available from the agency.] Statutory/Other Authority: ORS 731, 735 & 746 Statutes/Other Implemented: ORS 735.315 History: ID 19-2006, f. & cert. ef. 9-26-06 IC 7-1988, f. & cert. ef. 4-14-88
836-028-0040 Amendments to Registration by Foreign Retention Groups When a foreign risk retention group changes its principal place of business, the group shall amend its registration in this state to show, with respect to the new principal place of business: (1) The street address, including city and state; (2) The mailing address, if different; (3) The telephone number. Statutory/Other Authority: ORS 731, 735 & 746 Statutes/Other Implemented: ORS 735.315(2)(d) History: IC 7-1988, f. & cert. ef. 4-14-88
836-028-0045 Financial Statement of Foreign Risk Retention Group; Audit (1) Not later than the date on which the financial statement of a foreign risk retention group doing business in this state is due in its state of domicile, the group shall submit a copy of that financial statement to the Director. (2) When an audit or examination is performed with respect to a foreign risk retention group doing business in this state, the group shall file a copy of the report of the audit or examination with the Director. Statutory/Other Authority: ORS 731, 735 & 746 Statutes/Other Implemented: ORS 735.315(2)(a) - 735.315(c) History: IC 7-1988, f. & cert. ef. 4-14-88
836-029-0000 Authority OAR 836-029-0000 to 836-029-0120 are adopted under the general rulemaking authority of the Director of the Department of Consumer and Business Services under ORS 731.244 and the specific authority granted by Section 4, chapter 84, Oregon Laws 2012.. Statutory/Other Authority: ORS 731.244, 2012 OL Ch. 84 & Sec. 4 (Enrolled SB 1547) Statutes/Other Implemented: 2012 OL Ch. 84 & Sec. 2-22 (Enrolled SB 1547) History: ID 17-2012, f. & cert. ef. 11-7-12 ID 11-2012(Temp), f. 6-15-12, cert. ef. 7-1-12 thru 12-27-12
836-029-0005 Purpose and Scope The purpose of these rules is to set forth the financial, reporting, record-keeping and other requirements the Director of the Department of Consumer and Business Services considers necessary for the regulation of captive insurers, under sections 2 to 22, chapter 84, Oregon Laws 2012. Statutory/Other Authority: ORS 731.244, 2012 OL Ch. 84 & Sec. 4 (Enrolled SB 1547) Statutes/Other Implemented: 2012 OL Ch. 84 & Sec. 2-22 (Enrolled SB 1547) History: ID 17-2012, f. & cert. ef. 11-7-12 ID 11-2012(Temp), f. 6-15-12, cert. ef. 7-1-12 thru 12-27-12
836-029-0010 Definitions As used in OAR 836-029-0000 to 836-029-0120: (1) “GAAP” means generally accepted accounting principles. (2) "Work Papers" or "working papers" include but are not limited to schedules, analyses, reconciliations, abstracts, memoranda, narratives, flow charts, copies of captive insurer records or other documents prepared or obtained by the independent certified public accountant and the accountant's employees in the conduct of their audit of a captive insurer. Statutory/Other Authority: ORS 731.244, 2012 OL Ch. 84 & Sec. 4 (Enrolled SB 1547) Statutes/Other Implemented: 2012 OL Ch. 84 & Sec. 2-22 (Enrolled SB 1547) History: ID 17-2012, f. & cert. ef. 11-7-12 ID 11-2012(Temp), f. 6-15-12, cert. ef. 7-1-12 thru 12-27-12
836-029-0015 Annual Reporting Requirements (1) Not later than March 1, a captive insurer authorized in this state shall file an annual report of its financial condition as of the immediately preceding December 31 with the director of the Department of Consumer and Business Services. The report shall be verified by oath of two of its executive officers and shall be prepared using GAAP. The annual report may be filed electronically in accordance with directions from the director. (2) An association captive insurer shall comply with the requirements of section 13, chapter 84, Oregon Laws 2012 when filing an annual report on the captive insurer’s financial condition. (3) All captive insurers must use the "Captive Insurer Annual Statement Form” as set forth on the Division of Financial Regulation website of the Department of Consumer and Business Services at dfr.oregon.gov. (4) The annual report required under section (1) of this rule must be accompanied by a management discussion and analysis that provides details of the captive’s financial condition, changes in financial condition and results of operations. The Management Discussion and analysis shall be prepared in accordance with annual statement instructions set forth on the Division of Financial Regulation website of the Department of Consumer and Business Services at dfr.oregon.gov and applicable to the required filing period as set forth in OAR 836-011-0000. (5) The director may require a captive insurer to provide information applicable to its holding company systems covering activities for the preceding year. (6) Upon request, the director may grant an extension of time for filing a report or document required under this rule. Statutory/Other Authority: ORS 731.244, Sec. 4 (Enrolled SB 1547) & Or Laws 2012, ch 84 Statutes/Other Implemented: Or Laws 2012, ch 84 & Sec. 2-22 (Enrolled SB 1547) History: ID 11-2023, minor correction filed 05/19/2023, effective 05/19/2023 ID 17-2012, f. & cert. ef. 11-7-12 ID 11-2012(Temp), f. 6-15-12, cert. ef. 7-1-12 thru 12-27-12
836-029-0020 Risk Limitation The Director of the Department of Consumer and Business Services may: (1) Limit the net amount of risk a captive insurer retains for a single risk after considering the impact of the retention on the captive insurer's capital and surplus; or (2) Prescribe and demand additional capital and surplus of any captive insurer if the director determines that the captive insurer is not adequately capitalized for the type, volume and nature of the risk that is being covered by the captive insurer. Statutory/Other Authority: ORS 731.244, 2012 OL Ch. 84 & Sec. 4 (Enrolled SB 1547) Statutes/Other Implemented: 2012 OL Ch. 84 & Sec. 2-22 (Enrolled SB 1547) History: ID 17-2012, f. & cert. ef. 11-7-12 ID 11-2012(Temp), f. 6-15-12, cert. ef. 7-1-12 thru 12-27-12
836-029-0035 Communication of Internal Control Related Matters Noted in an Audit (1) In addition to the annual audited financial report, each captive insurer that has annual direct written premium of $500,000,000 or more shall furnish the director with a written communication as to any unremediated material weaknesses in its internal control over financial reporting noted during the audit. The communication must be prepared by the accountant not later than the 60th day after the filing of the annual audited financial report and shall contain a description of any unremediated material weakness (as the term material weakness is defined by Statement on Auditing Standard 60, Communication of Internal Control Related Matters Noted in an Audit, or its replacement) as of December 31 immediately preceding (so as to coincide with the audited financial report required by OAR 836-029-0025 in the captive insurer’s internal control over financial reporting noted by the accountant during the course of their audit of the financial statements. If no unremediated material weaknesses were noted, the communication must so state. (2) The captive insurer shall submit with the report required under section (1) of this rule a description of remedial actions taken or proposed to correct unremediated material weaknesses, if the actions are not described in the accountant's report. (3) The captive insurer shall maintain information about significant deficiencies communicated by the independent certified public accountant. The information must be made available to the examiner conducting a financial condition examination for review and kept in such a manner as to remain confidential. Statutory/Other Authority: ORS 731.244, 2012 OL Ch. 84 & Sec. 4 (Enrolled SB 1547) Statutes/Other Implemented: 2012 OL Ch. 84 & Sec. 2-22 (Enrolled SB 1547) History: ID 17-2012, f. & cert. ef. 11-7-12 ID 11-2012(Temp), f. 6-15-12, cert. ef. 7-1-12 thru 12-27-12
836-029-0040 Designation of Service Providers (1) A certified public accountant retained to conduct the independent annual audit must be selected from the list of approved certified public accounting firms or individual certified public accountants maintained by the Director of the Department of Consumer and Business Services. (2) A captive insurer that terminates the appointment of an independent certified public accountant retained to conduct the annual audit required in this rule shall report the name and address of the certified public accountant in writing to the director within ninety days after the appointment is terminated and shall within the same period report the name and address of the certified public accountant that is subsequently retained. (3) A captive manager hired to manage a captive insurer must be selected from the list of approved captive managers maintained by the Director of the Department of Consumer and Business Services. (4) A captive insurer that terminates the appointment of a captive manager hired to manage a captive insurer shall report the name and address of the captive manager in writing to the director within ninety days after the appointment is terminated and shall within the same period report the name and address of the captive manager that is subsequently retained. (5) An actuary hired to opine on the reserves of a captive insurer must be selected from the list of approved actuaries maintained by the Director of the Department of Consumer and Business Services. (6) A captive insurer that terminates the appointment of an actuary hired to opine on the reserves of a captive insurer shall report the name and address of the actuary in writing to the director within ninety days after the appointment is terminated and shall within the same period report the name and address of the actuary that is subsequently retained. Statutory/Other Authority: ORS 731.244, 2012 OL Ch. 84 & Sec. 4 (Enrolled SB 1547) Statutes/Other Implemented: 2012 OL Ch. 84 & Sec. 2-22 (Enrolled SB 1547) History: ID 17-2012, f. & cert. ef. 11-7-12 ID 11-2012(Temp), f. 6-15-12, cert. ef. 7-1-12 thru 12-27-12
836-029-0045 Notification of Material Misstatement of Financial Condition A captive insurer shall require its certified public accountant to immediately notify an officer and all members of the board of directors of the captive insurer in writing of any determination by the independent certified public accountant that the captive insurer has materially misstated its financial condition in its report to the Director of the Department of Consumer and Business Services. The captive insurer shall furnish the notification to the director within five working days after receiving the notification from its certified public accountant. Statutory/Other Authority: ORS 731.244, 2012 OL Ch. 84 & Sec. 4 (Enrolled SB 1547) Statutes/Other Implemented: 2012 OL Ch. 84 & Sec. 2-22 (Enrolled SB 1547) History: ID 17-2012, f. & cert. ef. 11-7-12 ID 11-2012(Temp), f. 6-15-12, cert. ef. 7-1-12 thru 12-27-12
836-029-0050 Additional Deposit Requirement (1) Whenever the Director of the Department of Consumer and Business Services determines that the financial condition of a captive insurer warrants additional security, the director may require the captive insurer to deposit with the director, in trust for the captive insurer, cash, securities approved by the director, or an irrevocable letter of credit issued by a bank chartered by the State of Oregon or a member bank of the Federal Reserve System with the director. (2) The director shall return the deposit or letter of credit of a captive insurer if the captive insurer ceases to do any business only after being satisfied that all obligations of the captive insurer have been discharged. (3) With the approval of the director a captive insurer may receive interest or dividends from the deposit or exchange the deposits for others of equal value. Statutory/Other Authority: ORS 731.244, 2012 OL Ch. 84 & Sec. 4 (Enrolled SB 1547) Statutes/Other Implemented: 2012 OL Ch. 84 & Sec. 2-22 (Enrolled SB 1547) History: ID 17-2012, f. & cert. ef. 11-7-12 ID 11-2012(Temp), f. 6-15-12, cert. ef. 7-1-12 thru 12-27-12
836-029-0055 Availability and Maintenance of Working Papers of the Independent Certified Public Accountant Availability and Maintenance of Working Papers of the Independent Certified Public Accountant (1) Each captive insurer shall require its independent certified public accountant to make all work papers prepared in the conduct of the audit of the captive insurer available for review by the Director of the Department of Consumer and Business Services or his appointed agent. The captive insurer shall require that the accountant retain the audit work papers for a period of not less than five years after the end of the report period. (2) The review by the director shall be considered an official investigation by the director and all working papers obtained during the course of such investigation shall be confidential business papers and shall be classified as business confidential protected records. The captive insurer shall require that the independent certified public accountant provide photocopies to the department of any of the working papers that the department considers relevant. The department may retain any photocopies of working papers. Statutory/Other Authority: ORS 731.244, 2012 OL Ch. 84 & Sec. 4 (Enrolled SB 1547) Statutes/Other Implemented: 2012 OL Ch. 84 & Sec. 2-22 (Enrolled SB 1547) History: ID 17-2012, f. & cert. ef. 11-7-12 ID 11-2012(Temp), f. 6-15-12, cert. ef. 7-1-12 thru 12-27-12
836-029-0060 Documentation Required to be Held in Oregon by Licensed Captives (1) Any captive insurer authorized by the Director of the Department of Consumer and Business Services, shall maintain and make ready for inspection and examination by the director, or the director's agent, any and all documents pertaining to the formation, operation, management, finances, insurance and reinsurance of the captive insurer. (2) Original documents may be kept in the offices of the captive insurer's captive manager, the captive insurer's parent or the captive insurer itself. Accurate and complete copies shall be held in an office located in Oregon designated by the captive insurer and approved by the director as part of the application process. Statutory/Other Authority: ORS 731.244, 2012 OL Ch. 84 & Sec. 4 (Enrolled SB 1547) Statutes/Other Implemented: 2012 OL Ch. 84 & Sec. 2-22 (Enrolled SB 1547) History: ID 17-2012, f. & cert. ef. 11-7-12 ID 11-2012(Temp), f. 6-15-12, cert. ef. 7-1-12 thru 12-27-12
836-029-0065 Reinsurance (1) Any captive insurer authorized to do business in this state may take credit for reserves on risks ceded to a reinsurer subject to the following limitations: (a) No credit shall be allowed for reinsurance where the reinsurance contract does not result in the transfer of the risk or liability to the reinsurer. (b) No credit shall be allowed, as an asset or a deduction from liability, to any ceding insurer for reinsurance unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding insurer under the contract reinsured without diminution because of the insolvency of the ceding insurer. (2) Reinsurance under this section shall be effected through a written agreement of reinsurance setting forth the terms, provisions and conditions governing such reinsurance. (3) A captive insurer shall file with the Director of the Department of Consumer and Business Services complete copies of all reinsurance treaties and contracts for prior approval by the director. Any amendments to reinsurance agreements must be submitted to the director for prior approval. Statutory/Other Authority: ORS 731.244, 2012 OL Ch. 84 & Sec. 4 (Enrolled SB 1547) Statutes/Other Implemented: 2012 OL Ch. 84 & Sec. 2-22 (Enrolled SB 1547) History: ID 17-2012, f. & cert. ef. 11-7-12 ID 11-2012(Temp), f. 6-15-12, cert. ef. 7-1-12 thru 12-27-12
836-029-0070 Service Providers A person may not act in or from this state, as a service provider, including but not limited to as a captive insurance manager, producer, actuary or certified public accountant, for a captive insurer without the authorization of the Director of the Department of Consumer and Business Services. Application for such authorization must be on a form prescribed by the director. The application shall include information regarding the service provider’s character, reputation and experience, relative to captive insurer. Any person who solicits business entities to form a captive insurer must be licensed as a producer under ORS 744.052 to 744.089. Statutory/Other Authority: ORS 731.244, 2012 OL Ch. 84 & Sec. 4 (Enrolled SB 1547) Statutes/Other Implemented: 2012 OL Ch. 84 & Sec. 2-22 (Enrolled SB 1547) History: ID 17-2012, f. & cert. ef. 11-7-12 ID 11-2012(Temp), f. 6-15-12, cert. ef. 7-1-12 thru 12-27-12
836-029-0075 Directors (1) Every captive insurer shall report any change in its executive officers or directors to the Director of the Department of Consumer and Business Services within thirty days after a change is made and include in its report, a biographical affidavit of any new executive officer or director. (2) No director, officer or employee of a captive insurer shall, except on behalf of the captive insurer, accept, or be the beneficiary of, any fee, brokerage, gift or other emolument because of any investment, loan, deposit, purchase, sale, payment or exchange made by or for the captive insurer. The person may receive only reasonable compensation for necessary services rendered to the captive insurer in the person’s usual private, professional or business capacity. (3) Any profit or gain received by or on behalf of any person in violation of this section shall inure to and be recoverable by the captive insurer. Statutory/Other Authority: ORS 731.244, 2012 OL Ch. 84 & Sec. 4 (Enrolled SB 1547) Statutes/Other Implemented: 2012 OL Ch. 84 & Sec. 2-22 (Enrolled SB 1547) History: ID 17-2012, f. & cert. ef. 11-7-12 ID 11-2012(Temp), f. 6-15-12, cert. ef. 7-1-12 thru 12-27-12
836-029-0080 Conflict of Interest (1) Each captive insurer licensed in Oregon shall adopt a conflict of interest statement for officers, directors and key employees. The statement shall disclose that the individual has no outside commitments, personal or otherwise, that would divert the person from the duty to further the interests of the captive insurer the person represents but this shall not preclude a person from being a director or officer in more than one insurance captive insurer. (2) Each officer, director and key employee shall file a yearly disclosure with the board of directors. Statutory/Other Authority: ORS 731.244, 2012 OL Ch. 84 & Sec. 4 (Enrolled SB 1547) Statutes/Other Implemented: 2012 OL Ch. 84 & Sec. 2-22 (Enrolled SB 1547) History: ID 17-2012, f. & cert. ef. 11-7-12 ID 11-2012(Temp), f. 6-15-12, cert. ef. 7-1-12 thru 12-27-12