OR Rev Stat § 732.594 (2021)
2021 Oregon Revised Statutes|Volume : 18 - Financial Institutions, Insurance|Chapter 732 - Organization and Corporate Procedures of Domestic Insurers; Regulation of Insurers Generally|Section 732.594 - Director’s determination or acknowledgment of appropriate group-wide supervisor for internationally active insurance group; requirement for insurer to produce needed information; director’s powers; cooperation with other regulatory officials.

(1) The Director of the Department of Consumer and Business Services shall: (a) Act, in accordance with the provisions of this section, as the group-wide supervisor for any internationally active insurance group; or (b) Acknowledge another regulatory official as the group-wide supervisor for an internationally active insurance group if the internationally active insurance group: (A) Does not have substantial insurance operations in the United States; (B) Has substantial insurance operations in the United States but not in this state; or (C) Has substantial insurance operations in this state but the director determines under criteria set forth in subsections (2) and (6) of this section that the other regulatory official is the appropriate group-wide supervisor. (2) The director, in cooperation with other state, federal and international regulatory agencies, shall identify a single group-wide supervisor for each internationally active insurance group. The director may determine that the director is the appropriate group-wide supervisor for an internationally active insurance group with substantial insurance operations in this state or the director may determine that another regulatory official is the appropriate group-wide supervisor. In making the determination, the director shall consider: (a) Where the insurers that have the largest share of the internationally active insurance group’s written premiums, assets or liabilities are domiciled; (b) Where the top-tier insurers within the internationally active insurance group’s insurance holding company system are domiciled; (c) Where the internationally active insurance group has executive offices or the group’s largest operational offices; (d) Whether another regulatory official is acting, or seeks to act, as the group-wide supervisor for the internationally active insurance group under a regulatory system that the director determines is: (A) Substantially similar to the regulations set forth in the Insurance Code; or (B) Otherwise sufficient to enable the regulatory official to engage in group-wide supervision and enterprise risk analysis and to cooperate with other regulatory officials; and (e) Whether another regulatory official that is acting, or seeks to act, as the group-wide supervisor provides the director with a reasonable degree of reciprocal acknowledgment and cooperation. (3) A regulatory official that the director determines under subsection (2) of this section is the appropriate group-wide supervisor for an internationally active insurance group may in turn acknowledge a different regulatory official as the appropriate group-wide supervisor. Before acknowledging another regulatory official as an appropriate group-wide supervisor, a regulatory official shall: (a) Consider the criteria set forth in subsection (2) of this section; (b) Cooperate with and obtain acknowledgment from other regulatory officials with responsibility for supervising the internationally active insurance group; and (c) Consult with the internationally active insurance group. (4) Notwithstanding any other provision of this section or ORS 732.596, the director shall acknowledge another regulatory official that is acting as a group-wide supervisor for an internationally active insurance group unless a material change in the internationally active insurance group requires the director to make a determination under subsection (2) of this section as to the appropriate group-wide supervisor for the internationally active insurance group. For purposes of this determination, a material change is: (a) Insurers domiciled within this state come to hold the largest share of the internationally active insurance group’s written premiums, assets or liabilities; or (b) The top-tier insurers within the internationally active insurance group’s insurance holding company system become domiciled in this state. (5) The director, in accordance with ORS 732.584, may order an insurer registered under ORS 732.551 to produce any information the director requires to determine whether the director may act as, or must acknowledge another regulatory official as, the group-wide supervisor for an internationally active insurance group. Before determining that the director is the appropriate group-wide supervisor for an internationally active insurance group, the director shall inform the insurer that provided the information and the controlling entity within the internationally active insurance group, and give the internationally active insurance group at least 30 days in which to provide any additional information that may relate to the director’s determination. The director shall identify internationally active insurance groups for which the director acts as the group-wide supervisor on the Department of Consumer and Business Services website. (6) As the group-wide supervisor for an internationally active insurance group, the director may: (a) Assess enterprise risks within the internationally active insurance group to evaluate whether persons who manage members of the internationally active insurance group that are engaged in transacting insurance have identified the members’ material financial condition and liquidity risks and have established reasonable and effective mitigation measures; (b) Request from any member of an internationally active insurance group subject to the director’s supervision information that is necessary and appropriate to enable the director to assess enterprise risk for the member, including information about the member’s: (A) Governance, risk assessment and management; (B) Capital adequacy; and (C) Material intercompany transactions; (c) Require members of internationally active insurance groups to develop and implement reasonable measures to enable the members to timely recognize and mitigate enterprise risks and, if necessary, assist the members or ask regulatory officials in jurisdictions in which the members are domiciled to compel the members to develop and implement the measures; (d) Communicate and share information, including through a supervisory college described in ORS 732.571, with other state, federal and international regulatory agencies that have authority over members of internationally active insurance groups, subject to the confidentiality provisions of ORS 705.137, 705.138, 705.139 and 732.586; (e) Enter into agreements with, or obtain information from, any insurer registered under ORS 732.551, any member of an internationally active insurance group or any other state, federal or international regulatory agency with authority over the internationally active insurance group in order to clarify or provide a basis for the director’s authority as a group-wide supervisor, provided that the agreements or information: (A) Enable the director to resolve disputes with other regulatory officials; and (B) Will not serve as evidence in any proceeding that an insurer or person within an insurance holding company system that is not domiciled or organized in this state is transacting insurance in this state or is otherwise subject to the jurisdiction of this state; or (f) Perform any other activities the director deems necessary to exercise the functions of a group-wide supervisor, provided the activities are consistent with the authority and the purposes set forth in this section. (7)(a) The director may cooperate, including through a supervisory college described in ORS 732.571, with another regulatory official from a jurisdiction that the National Association of Insurance Commissioners has not accredited in the regulatory official’s role as a group-wide supervisor if: (A) The director acknowledges the regulatory official as a group-wide supervisor; (B) The director’s cooperation complies with the laws of this state; and (C) The regulatory official cooperates with the director’s activities as a group-wide supervisor for other internationally active insurance groups as appropriate. (b) The director may refuse to acknowledge and cooperate with a regulatory official who does not reciprocate the director’s acknowledgment and cooperation under this subsection. (8) The director may enter into agreements with or obtain information from an insurer registered under ORS 732.551, an affiliate of the insurer and any other state, federal or international regulatory agency if the agreement or information clarifies or provides the basis for a regulatory official’s authority as a group-wide supervisor. (9) An insurer that is subject to this section, or that is a member of an internationally active insurance group that is subject to this section, shall pay the director’s reasonable expenses of administering this section, including expenses associated with engaging attorneys, actuaries or other professionals and reasonable travel expenses. [2017 c.479 §2]