ORS Chapter 731 — Administration and General

ORS 731.510. (8), except as otherwise provided in this section. (b) If an accredited reinsurer maintains a trust fund to fully secure the accredited reinsurers obligations under ORS 731.509 (8) and the trust fund is a multibeneficiary trust, the accredited reinsurer shall maintain separate trust accounts for the obligations the accredited reinsurer incurs under reinsurance agreements the accredited reinsurer issued or renewed as an accredited reinsurer with reduced security, as provided under this section or under comparable laws of other United States jurisdictions, and for obligations the accredited reinsurer incurs that are subject to ORS 731.509 (8). (c) The minimum trusteed surplus requirements under ORS 731.509 (8) do not apply to an accredited reinsurer that maintains a multibeneficiary trust for the purpose of securing obligations under this subsection, except that the trust must maintain a minimum trusteed surplus of $10,000,000. (8) The director shall reduce the allowable credit for ceding insurers by an amount that is proportionate to any deficiency in the security required for an accredited reinsurer under this section. The director may also reduce the allowable credit further if the director finds that a material risk exists that the accredited reinsurer will not pay the accredited reinsurers obligations in full when due. (9)(a) Except as provided in paragraph (b) of this subsection, the director shall require an accredited reinsurer that has become inactive or has voluntarily surrendered accreditation as an accredited reinsurer, or for which the director has revoked or suspended accreditation, to secure 100 percent of the reinsurers obligations. (b) The security requirement described in paragraph (a) of this subsection does not apply to an accredited reinsurer that is inactive, or for which the director has suspended accreditation, if the director maintains a high rating for the reinsurer under subsection (6) of this section. (10) The director may accredit an assuming insurer as a reinsurer in this state if a jurisdiction that the National Association of Insurance Commissioners has qualified as meeting the associations financial standards and accreditation has certified the assuming insurer as a reinsurer. The director may also assign to the accredited reinsurer the rating that the qualifying jurisdiction assigned to the accredited reinsurer. (11) An accredited reinsurer that ceases to assume new business in this state may apply to the director to become inactive and to qualify for a reduction in security for the business the accredited reinsurer maintains. An inactive accredited reinsurer shall comply with all other applicable requirements of this section and the director shall assign a rating to the accredited reinsurer that accounts for the reasons that the accredited reinsurer is not assuming new business, if the reasons are relevant to the rating. (12)(a) The director may suspend or revoke an assuming insurers accreditation as a reinsurer in this state if the assuming insurer fails to meet applicable requirements for accreditation. (b) The director shall give an accredited reinsurer notice and an opportunity for a hearing before taking action under paragraph (a) of this subsection and a suspension or revocation is not effective until after the directors final order unless: (A) The accredited reinsurer waives the opportunity for a hearing; (B) The director bases the final order on regulatory action by the accredited reinsurers domiciliary jurisdiction or on the accredited reinsurers having voluntarily surrendered or terminated the accredited reinsurers authorization to transact insurance or reinsurance in the domiciliary jurisdiction or in a jurisdiction whose certification of the reinsurer formed the basis upon which the director accredited the reinsurer in this state under subsection (10) of this section; or (C) The director finds that an emergency requires immediate action and a court does not stay the directors action. (13) A reinsurance contract issued or renewed after the director suspends an accredited reinsurers certification does not qualify for credit unless the reinsurer secures the reinsurers obligations in accordance with ORS 731.510. The director may not grant credit for reinsurance after the effective date of the directors revocation of accreditation unless the reinsurer secures the reinsurers obligations in accordance with subsections (6), (7) and (9) of this section or ORS 731.510. (14) The director may adopt rules to implement the provisions of this section including, but not limited to, rules that adopt guidelines, rules, regulations or interpretive letters from the National Association of Insurance Commissioners that apply to reinsurance collateral requirements for alien reinsurers.