reglab/statecodes huggingface dataset:
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.130 - Commencement of delinquency proceeding.

(1) The Director of the Department of Consumer and Business Services shall commence a delinquency proceeding by an application to the court for an order directing the insurer to show cause why the director should not have the relief prayed for.
(2) The application shall be by petition, verified by the director, setting forth the ground or grounds for the proceeding and the relief demanded.
(3) If the court is satisfied from reading the director’s petition that the facts therein alleged, if established, would constitute grounds for a delinquency proceeding under this chapter, the court shall issue an order to the insurer to show cause.
(4) On the return of the order to show cause, and after a full hearing, the court shall either deny the application or grant the application, together with such other relief as the nature of the case and the interests of the policyholders, creditors, stockholders, members, subscribers or the public may require.
(5) After commencement of a delinquency proceeding by the director, orders of the court may thereafter be made for any of the purposes relevant upon application of any interested person. [1967 c.359 §267]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.140 - Injunctions.

(1) Upon application by the Director of the Department of Consumer and Business Services for an order to show cause under ORS 734.130, or at any time thereafter, the court may, without notice, issue an injunction restraining the insurer, its officers, directors, stockholders, members, subscribers, agents, employees and all other persons from the transaction of its business or the waste or disposition of its property until the further order of the court.
(2) The court may, at any time during a proceeding under this chapter, issue such other injunctions or orders to prevent any of the following activities:
(a) The transaction of further business.
(b) The transfer of property.
(c) Interference with the receiver or with a delinquency proceeding.
(d) Waste of the assets of an insurer.
(e) Dissipation and transfer of bank accounts.
(f) The institution or further prosecution of any actions or proceedings.
(g) The obtaining of preferences, judgments, attachments, garnishments or liens against the insurer, its assets or its policyholders.
(h) The levying of execution against the insurer, its assets or its policyholders.
(i) The making of any sale or deed for nonpayment of taxes or assessments that would lessen the value of the assets of the insurer.
(j) The withholding from the receiver of books, accounts, documents or other records relating to the business of the insurer.
(k) Any other threatened or contemplated action that might lessen the value of the assets of the insurer or prejudice the rights of policyholders, creditors or shareholders, or the administration of any delinquency proceeding.
(3) Notwithstanding any other provision of law, no bond shall be required of the director as a prerequisite for the issuance of any injunction or restraining order pursuant to this section. [1967 c.359 §268; 1993 c.447 §92]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.142 - Cooperation with director in delinquency proceedings.

(1) Each officer, manager, director, trustee, owner, employee or agent of an insurer, and any other person with authority over or in charge of any portion of the insurer’s affairs, including any person who exercises control directly or indirectly over activities of the insurer through a holding company or other affiliate of the insurer, shall cooperate with the Director of the Department of Consumer and Business Services in any delinquency proceeding or any investigation preliminary to the proceeding. For purposes of this section, cooperation with the director includes at least the following:
(a) Replying promptly in writing to any inquiry from the director requesting such a reply; and
(b) Making available to the director any books, accounts, documents or other records, information or property of or pertaining to the insurer and in the possession, custody or control of the insurer.
(2) A person shall not obstruct or interfere with the director in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto.
(3) This section shall not be construed to abridge otherwise existing legal rights, including the right to resist a petition for liquidation or other delinquency proceedings, or other orders. [1993 c.447 §94]
Note:
734.142 and 734.144 were added to and made a part of ORS chapter 734 by legislative action but were not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.144 - Immunity of certain persons from civil liability.

(1) The following persons are entitled to protection under this section:
(a) All receivers responsible for the conduct of a delinquency proceeding, including present and former receivers.
(b) All employees of the receiver. For purposes of this section, such employees include all present and former special deputies and assistant special deputies appointed by the Director of the Department of Consumer and Business Services and all persons whom the director, special deputies, or assistant special deputies have employed to assist in a delinquency proceeding. Unless designated as special deputies, attorneys, accountants, auditors and other professional persons or firms who are retained by the receiver as independent contractors and their employees are not entitled to protection under this section.
(2) The receiver and employees of the receiver shall have official immunity and shall be immune from civil action and liability, both personally and in their official capacities, for any tort claim or demand, whether groundless or otherwise, arising out of any alleged act, error or omission of the receiver or any employee occurring in the performance of their duties. For purposes of this section, "tort" has the meaning given that term in ORS 30.260.
(3) The receiver and employees of the receiver shall be indemnified from the assets of the insurer against any tort claim arising out of any alleged act, error or omission of the receiver or any employee occurring in the performance of their duties, whether personally or in the official capacity of the receiver or employee. Any indemnification made under this subsection is an administrative expense of the insurer.
(4) The provisions of subsections (2) and (3) of this section do not apply in case of malfeasance in office or willful or wanton neglect of duty.
(5) In any legal action in which the receiver is a defendant, the portion of any settlement relating to the alleged act, error or omission of the receiver is subject to the approval of the court before which the delinquency proceeding is pending. The court may not approve the portion of the settlement if it determines:
(a) That the claim did not occur in the performance of the receiver’s duties; or
(b) That the claim was caused by malfeasance in office or willful or wanton neglect of duty by of the receiver.
(6) This section shall not be construed or applied to deprive the receiver or any employee of any immunity, indemnity, benefits of law, rights or any defense otherwise available. [1993 c.447 §95]
Note:
See note under 734.142.
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.160 - Order of rehabilitation for domestic insurers.

(1) An order to rehabilitate a domestic insurer shall direct the Director of the Department of Consumer and Business Services forthwith to take possession of the property of the insurer and to conduct the business thereof, and to take such steps toward removal of the causes and conditions which have made rehabilitation necessary as the court may direct.
(2) If at any time the director deems that further efforts to rehabilitate the insurer would be useless, the director may apply to the court for an order of liquidation under ORS 734.180.
(3) The director, or any interested person upon due notice to the director, at any time may apply for an order terminating the rehabilitation proceeding and permitting the insurer to resume possession of its property and the conduct of its business, but no such order shall be granted except after a full hearing. [1967 c.359 §270]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.170 - Grounds for liquidation of domestic insurers.

The Director of the Department of Consumer and Business Services may apply for an order directing the director to liquidate the business of a domestic insurer, regardless of whether there has been a prior order directing the director to rehabilitate such insurer, upon any of the grounds specified in ORS 734.150, or if the insurer:
(1) Has ceased transacting business for a period of one year;
(2) Has commenced voluntary liquidation or dissolution, or attempts to commence or prosecute any action or proceeding to liquidate its business or affairs, or to dissolve its corporate charter, or to procure the appointment of a receiver, trustee, custodian, or sequestrator under any laws except the Insurance Code;
(3) Has not organized or completed its organization and obtained a certificate of authority as an insurer within the time authorized by law; or
(4) Is insolvent. [1967 c.359 §271; 1993 c.447 §97]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.180 - Order of liquidation of domestic insurers.

(1) An order to liquidate the business of a domestic insurer shall direct the Director of the Department of Consumer and Business Services forthwith to take possession of the property of the insurer, to liquidate its business, to deal with the insurer’s property and business in the name of the director or in the name of the insurer as the court may direct, and to give notice to all creditors who may have claims against the insurer to present such claims.
(2) The director may apply under this chapter for an order dissolving the corporate existence of a domestic insurer:
(a) Upon the application of the director for an order of liquidation of such insurer, or at any time after such order has been granted; or
(b) Upon the grounds specified in ORS 734.170 (3), regardless of whether an order of liquidation is sought or has been obtained. [Formerly 738.470]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.190 - Grounds for conservation of foreign and alien insurers.

The Director of the Department of Consumer and Business Services may apply for an order directing the director to conserve the assets within this state of a foreign or alien insurer upon any one or more of the following grounds:
(1) Any of the grounds specified in ORS 734.150; or
(2) That its property has been sequestrated in any jurisdiction. [1967 c.359 §273; 1993 c.447 §98]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.200 - Conservation or ancillary receivership of foreign and alien insurers.

(1) An order to conserve the assets of a foreign or alien insurer shall direct the Director of the Department of Consumer and Business Services forthwith to take possession of the property of the insurer within this state and to conserve it, subject to the further direction of the court.
(2) Whenever a domiciliary receiver has been appointed for any foreign or alien insurer in its domiciliary state, the court shall, on application of the director, appoint the director as the ancillary receiver in this state.
(3) An order to liquidate the assets in this state of a foreign or alien insurer shall direct the director forthwith to take possession of the property of the insurer within this state and to liquidate it subject to the orders of the court and with due regard to the rights and powers of the domiciliary receiver, as provided in this chapter. [1967 c.359 §274]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.210 - Conduct of delinquency proceedings for domestic insurers.

(1) Whenever under this chapter a receiver is to be appointed in delinquency proceedings for an insurer domiciled in this state, the court shall appoint the Director of the Department of Consumer and Business Services as such receiver. The court shall direct the receiver forthwith to take possession of the property of the insurer and to administer the same under the orders of the court.
(2) Any deed or other instrument executed under this chapter shall be valid and effectual for all purposes as though the same had been executed by the person affected by any proceedings under this chapter or by its officers pursuant to the direction of its governing board or authority. The filing or recording of the order directing possession to be taken, or a certified copy thereof, in the office where instruments affecting title to property are required to be filed or recorded shall impart the same notice as would be imparted by a deed, bill of sale or other evidence of title duly filed or recorded.
(3) In cases where any real property sold by the director is located in a county other than the county wherein the proceeding is pending, the director shall cause a certified copy of the order of the appointment, or order authorizing or ratifying the sale, to be filed with the recording officer for the county in which the property is located.
(4) The director as domiciliary receiver shall be responsible on the official bond of the director for the proper administration of all property coming into the possession or control of the director. The court may at any time require an additional bond from the director or the deputies of the director if deemed desirable for the protection of the property. [Formerly 751.020]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.220 - Powers of director as receiver.

(1) Upon taking possession of the property and business of any person in any proceeding under this chapter, the Director of the Department of Consumer and Business Services shall, subject to the direction of the court, immediately proceed to conduct the business of the insurer or to take such steps as are authorized by the laws of this state for the purpose of rehabilitating, liquidating or conserving the insurer.
(2) Upon taking such possession of the property and business of any person, the director as receiver shall:
(a) Be vested with the insurer’s title and interest in and to all assets and property of every kind, both tangible and intangible, except that ancillary receivers in reciprocal states shall have, as to assets located in their respective states, the rights and powers which are prescribed in this chapter for ancillary receivers appointed in this state as to assets located in this state;
(b) Possess, in the name of the insurer or in the name of the director, all rights, privileges, powers and authority granted to insurers in this state or otherwise possessed by insurers generally, without regard to any limitations thereon prescribed in the articles or bylaws of such insurer; and
(c) Perform and do all acts which the director may deem necessary, advisable or expedient for the accomplishment or in aid of the purpose for which such possession was taken. [1967 c.359 §276]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.230 - Deputies and assistants.

In connection with supervising an insurer under the Insurance Code or conducting delinquency proceedings, the Director of the Department of Consumer and Business Services may appoint one or more special deputy directors to act for the director, and may employ such counsel, clerks, and assistants as the director deems necessary. Unless otherwise provided by the director, a person so appointed is not a state employee solely by reason of such appointment. The compensation of the special deputies, counsel, clerks or assistants and all expenses of supervising the insurer under the Insurance Code or taking possession of a delinquent insurer and conducting delinquency proceedings must be paid out of the funds or assets of the insurer. A special deputy acting within limits the director imposes with respect to supervising an insurer under the Insurance Code or conducting delinquency proceedings has a receiver’s powers and is subject to a receiver’s duties. [1967 c.359 §277; 2017 c.479 §15]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.240 - Conduct of delinquency proceedings for foreign insurers.

(1) Whenever under this chapter an ancillary receiver is to be appointed in delinquency proceedings for an insurer not domiciled in this state, the court shall appoint the Director of the Department of Consumer and Business Services as ancillary receiver. The director shall file a petition requesting the appointment:
(a) If the director finds that there are sufficient assets of such insurer located in this state to justify the appointment of an ancillary receiver; or
(b) If 10 or more persons resident in this state having claims against such insurer file a petition with the director requesting the appointment of such ancillary receiver.
(2) The domiciliary receiver of an insurer domiciled in a reciprocal state, shall be vested by operation of law with the title to all the property, contracts and rights of action, and all the books and records of the insurer located in this state, and the domiciliary receiver shall have the immediate right to recover balances due from local insurance producers and to obtain possession of any books and records of the insurer found in this state. The domiciliary receiver shall also be entitled to recover the other assets of the insurer located in this state except that upon the appointment of an ancillary receiver in this state, the ancillary receiver shall during the ancillary receivership proceedings have the sole right to recover such other assets. The ancillary receiver shall, as soon as practicable, liquidate from their respective securities those special deposit claims and secured claims which are proved and allowed in the ancillary proceedings in this state, and shall pay the necessary expenses of the proceedings. All remaining assets the ancillary receiver shall promptly transfer to the domiciliary receiver. Subject to the provisions of this section the ancillary receiver and the deputies of the ancillary receiver shall have the same powers and be subject to the same duties with respect to the administration of such assets, as a receiver of an insurer domiciled in this state. [Formerly 751.030; 2003 c.364 §85]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.250 - Right of domiciliary receiver to sue in this state.

The domiciliary receiver of an insurer domiciled in a reciprocal state may sue in this state to recover any assets of such insurer to which the domiciliary receiver may be entitled under the laws of this state. [1967 c.359 §279]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.260 - Claims of nonresidents against domestic insurers.

(1) In a delinquency proceeding begun in this state against an insurer domiciled in this state, claimants residing in reciprocal states may file claims either with the ancillary receivers, if any, in their respective states, or with the domiciliary receiver. All such claims must be filed on or before the last date fixed for the filing of claims in the domiciliary delinquency proceedings.
(2) Controverted claims belonging to claimants residing in reciprocal states may either:
(a) Be proved in this state as provided by law; or
(b) If ancillary proceedings have been commenced in such reciprocal states, be proved in those proceedings.
(3) In the event a claimant elects to prove a claim in ancillary proceedings, if notice of the claim and opportunity to appear and be heard is afforded the domiciliary receiver of this state as provided in ORS 734.270 with respect to ancillary proceedings in this state, the final allowance of such claim by the courts in the ancillary state shall be accepted in this state as conclusive as to its amount, and shall also be accepted as conclusive as to its priority, if any, against special deposits or other security located within the ancillary state. [Formerly 751.040]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.270 - Claims of residents against foreign insurers.

(1) In a delinquency proceeding in a reciprocal state against an insurer domiciled in that state, claimants against such insurer who reside within this state may file claims either with the ancillary receiver, if any, appointed in this state, or with the domiciliary receiver. All such claims must be filed on or before the last date fixed for the filing of claims in the domiciliary delinquency proceedings.
(2) Controverted claims belonging to claimants residing in this state may either:
(a) Be proved in the domiciliary state as provided by the law of that state; or
(b) If ancillary proceedings have been commenced in this state, be proved in those proceedings.
(3) In the event that any such claimant elects to prove a claim in this state, the claimant shall file a claim with the ancillary receiver in the manner provided by this chapter for the proving of claims against insurers domiciled in this state, and the claimant shall give notice in writing to the receiver in the domiciliary state, either by registered or certified mail or by personal service at least 40 days prior to the date set for hearing. The notice shall contain a concise statement of the amount of the claim, the facts on which the claim is based, and the priorities asserted, if any. If the domiciliary receiver, within 30 days after the giving of such notice, shall give notice in writing to the ancillary receiver and to the claimant, either by registered or certified mail or by personal service, of intention to contest such claim, the domiciliary receiver shall be entitled to appear or to be represented in any proceeding in this state involving the adjudication of the claim. The final allowance of the claim by the courts of this state shall be accepted as conclusive as to its amount, and shall also be accepted as conclusive as to its priority, if any, against special deposits or other security located within this state. [Formerly 751.050]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.280 - Form of claim; notice; hearing.

(1) All claims against an insurer, against which delinquency proceedings have been begun, shall set forth in reasonable detail the amount of the claim, or the basis upon which such amount can be ascertained, the facts upon which the claim is based, and the priorities asserted, if any. All such claims shall be verified by the affidavit of the claimant, or someone authorized to act on behalf of the claimant and having knowledge of the facts, and shall be supported by such documents as may be material thereto.
(2) All claims filed in this state shall be filed with the receiver, whether domiciliary or ancillary, in this state, on or before the last date for filing as specified in this chapter.
(3) After the expiration of any period for filing of claims, the receiver shall report the claims filed within such period to the court, specifying in such report the recommendation of the receiver with respect to the action to be taken thereon. Upon receipt of such report, the court shall fix a time for hearing such claims and shall direct that the claimants or the receiver, as the court shall specify, shall give such notice as the court shall determine to such persons as shall appear to the court to be interested therein. All such notices shall specify the time and place of the hearing and shall concisely state the amount and nature of the claim, the priorities asserted, if any, and the recommendation of the receiver with reference thereto.
(4) At the hearing all persons interested shall be entitled to appear and the court shall enter an order allowing, allowing in part, or disallowing the claim. Any such order shall be deemed to be an appealable order. [1967 c.359 §282]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.290 - Priority of preferred claims.

(1) In a delinquency proceeding against an insurer domiciled in this state, claims owing to residents of ancillary states shall be preferred claims if like claims are preferred under the laws of this state. All such claims whether owing to residents or nonresidents shall be given equal priority of payment from general assets regardless of where such assets are located.
(2) In a delinquency proceeding against an insurer domiciled in a reciprocal state, claims owing to residents of this state shall be preferred if like claims are preferred by the laws of that state. [1967 c.359 §283]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.300 - Priority of special deposit claims.

The owners of special deposit claims against an insurer for which a receiver is appointed in this or any other state shall be given priority against their several special deposits in accordance with the provisions of the statutes governing the creation and maintenance of such deposits. If there is a deficiency in any such deposit so that claims secured thereby are not fully discharged therefrom, the claimants may share in the general assets, but such sharing shall be deferred until general creditors, and also claimants against other special deposits who have received smaller percentages from their respective special deposits, have been paid percentages of their claims equal to the percentage paid from the special deposit. [1967 c.359 §284]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.310 - Priority of secured claims.

The owner of a secured claim against an insurer for which a receiver has been appointed in this or any other state may surrender the security and file a claim as a general creditor, or the claim may be discharged by resort to the security, in which case the deficiency, if any, shall be treated as a claim against the general assets of the insurer on the same basis as claims of unsecured creditors. If the amount of the deficiency has been adjudicated in ancillary proceedings as provided in this chapter, or if it has been adjudicated by a court of competent jurisdiction in proceedings in which the domiciliary receiver has had notice and opportunity to be heard, such amount shall be conclusive; otherwise the amount shall be determined in the delinquency proceeding in the domiciliary state. [Formerly 751.080]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.320 - Attachment and garnishment of assets.

During the pendency of delinquency proceedings in this or any reciprocal state no action or proceeding in the nature of an attachment, garnishment or execution shall be commenced or maintained in the courts of this state against the delinquent insurer or its assets. Any lien obtained by any such action or proceeding within four months prior to the commencement of any such delinquency proceeding or at any time thereafter shall be void as against any rights arising in such delinquency proceeding. [1967 c.359 §286]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.340 - Date rights fixed on liquidation.

The rights and liabilities of the insurer and of its creditors, policyholders, stockholders, members, subscribers, and all other persons interested in its estate, shall, unless otherwise directed by the court, be fixed as of the date on which the order directing the liquidation of the insurer is filed in the office of the clerk of the court which makes the order, subject to the provisions of ORS 734.380 with respect to the rights of claimants holding contingent claims. [1967 c.359 §288]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.350 - Voidable transfers.

(1) Any transfer of, or lien upon, the property of an insurer, other than as provided in ORS 734.320 which is made or created within four months prior to the commencement of a delinquency proceeding with the intent of giving to any creditor, or of enabling the creditor to obtain, a greater percentage of the debt than any other creditor of the same class, and which is accepted by such creditor having reasonable cause to believe that such a preference will occur, shall be voidable.
(2) Every director, officer, employee, stockholder, member, subscriber, and any other person acting on behalf of such insurer who shall be concerned in any such act or deed and every person receiving thereby any property of such insurer or the benefit thereof, shall be personally liable therefor and shall be bound to account to the Director of the Department of Consumer and Business Services.
(3) The director, as receiver in any proceeding under this chapter, may avoid any transfer of, or lien upon, the property of an insurer which any creditor, stockholder, subscriber or member of such insurer might have avoided, and may recover the property so transferred, unless such person was a bona fide holder for value prior to the commencement of the delinquency proceeding. Such property or its value may be recovered from anyone who has received it, except a bona fide holder for value as specified in this subsection. [1967 c.359 §289]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.360 - Preference of claims.

Except as provided in ORS 734.310 for secured claims, the claims to be paid in full in delinquency proceedings prior to the payment of any other claims, and the order of payment, shall be:
(1) Expenses of administration of the delinquency proceedings and expenses of the Oregon Insurance Guaranty Association or similar organization in another state handling claims in accordance with ORS 734.510 to 734.710;
(2) All claims under policies, including third party claims and claims under nonassessable policies for unearned premiums, and all claims by the Oregon Insurance Guaranty Association, the Oregon Life and Health Insurance Guaranty Association or any similar organization in another state for payment of covered claims or contractual obligations;
(3) Claims legally due and owing by the insurer to the United States;
(4) If the insurer is domiciled in this state, compensation or wages actually owing to salaried employees other than officers of the insurer, for services rendered within three months prior to the commencement of the delinquency proceeding, but not exceeding $2,000 for each such employee;
(5) Claims legally due and owing by the insurer to this state; and
(6) Claims, including special deposit claims, owing to any person, including this state, that by the laws of this state is entitled to priority. [1967 c.359 §290; 1977 c.793 §7; 1983 c.223 §1; 2001 c.974 §3]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.370 - Offsets.

No offsets shall be allowed in cases of mutual debts or mutual credits between the insurer and another person in connection with any domestic delinquency proceeding under this chapter, except for cases of policy loans and cases of reinsurance and except for insurance producers’ balances, excluding unearned return commissions. [1967 c.359 §291; 1989 c.425 §14; 2003 c.364 §86]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.380 - Allowance of certain claims.

(1) A contingent claim against an insurer or a claim based upon a cause of action or suit against an insured of an insurer shall be filed, presented and reported in the same manner and within the same time limitations as provided in this chapter for a noncontingent claim. Such claims shall be allowed to share in a distribution of assets in the same manner as noncontingent claims of the same class and priority, provided that before any such sharing and distribution:
(a) If the claim is a contingent claim against the insurer, it becomes an absolute claim either as a result of proof presented or litigation; or
(b) If the claim is based upon a cause of action or suit against an insured of the insurer, a judgment is obtained against the insured or it may be reasonably inferred from proof presented that the claimant would be able to obtain such a judgment; in no case, however, shall all of the claims so presented and allowed arising out of a single act of the insured exceed the maximum liability of the insurer under its policy with or affecting the insured.
(2) Nothing in subsection (1) of this section shall prevent or bar the Director of the Department of Consumer and Business Services from compromising a disputed claim with the claimant, whether contingent or noncontingent, if such compromise is justified and supported by the facts and circumstances.
(3) If full or partial distribution to noncontingent claimants is authorized or directed by the court prior to satisfaction of the requirements of subsection (1)(a) or (b) of this section, with respect to particular claims the director shall retain a sum equal to the amount which would have been paid on the contingent claim if such requirements had then been met. The amount so withheld shall be distributed to the person or persons found by the court to be entitled thereto at such time as the claim is fully established as provided in subsection (1) of this section, or the director is satisfied that the claim is without merit or cannot be so proved or established, or the statute of limitations, if timely asserted, would bar further consideration or recovery thereon.
(4) No judgment entered after the date of entry of a liquidation order shall be considered in the liquidation proceedings as evidence of liability or of the amount of damages, and no judgment entered on default or inquest or by collusion after commencement of a delinquency proceeding shall be considered as conclusive evidence in the liquidation proceeding, either of liability or of the amount of damages. [1967 c.359 §292]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.390 - Time to file claims.

(1) If upon the granting of an order of liquidation under this chapter, or at any time thereafter during the liquidation proceeding, the insurer shall not be clearly solvent, the court shall, after such notice and hearing as it considers proper, make an order declaring the insurer to be insolvent. Thereupon, regardless of any prior notice which may have been given to creditors, the Director of the Department of Consumer and Business Services shall notify all persons who may have claims against the insurer and who have not filed proper proofs thereof, to present the same to the director, at a place specified in the notice, within four months from the date of the entry of such insolvency order or within such longer time as the court shall prescribe. The last day for filing of proofs of claims shall be specified in the notice. The notice shall be given in a manner determined by the court.
(2) Proofs of claims may be filed subsequent to the date specified, but no such claim shall share in the distribution of the assets until all allowed claims, proofs of which have been filed on or before such date, have been paid in full. [1967 c.359 §293]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.400 - Report for assessment; domestic mutual and reciprocal insurers.

Within three years from the date an order of rehabilitation or liquidation of a domestic mutual insurer or a domestic reciprocal insurer was filed in the office of the clerk of the court by which such order was made, the Director of the Department of Consumer and Business Services may make a report to the court setting forth:
(1) The reasonable value of the assets of the insurer;
(2) The insurer’s probable liabilities; and
(3) The probable necessary assessment, if any, to pay all claims and expenses in full, including expenses of administration. [1967 c.359 §294]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.410 - Levy of assessment; domestic mutual and reciprocal insurers.

(1) Upon the basis of the report provided for in ORS 734.400, including any amendments thereof, the court, ex parte, may levy one or more assessments against all persons who, as shown by the records of the insurer, were members (in the case of a mutual insurer) or subscribers (in the case of a reciprocal insurer) at any time within one year prior to the commencement of the delinquency proceeding.
(2) Such assessment or assessments shall cover the excess of the probable liabilities over the reasonable value of the assets, together with the estimated cost of collection and percentage of uncollectibility thereof. The total of all assessments against any member or subscriber, with respect to any policy, whether levied pursuant to this chapter or pursuant to any other provisions of the Insurance Code, shall be no greater than the amount specified in the policy of the member or subscriber and as limited under the Insurance Code; except that, if the court finds that the policy was issued at a rate of premium below the minimum rate lawfully permitted for the risk insured, the court may determine the upper limit of such assessment on the basis of such minimum rate.
(3) No assessment shall be levied against any member or subscriber with respect to any nonassessable policy issued in accordance with the Insurance Code. [1967 c.359 §295]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.420 - Order to pay assessment.

After levy of assessment as provided in ORS 734.410 and upon the filing of a further detailed report by the Director of the Department of Consumer and Business Services, the court shall issue an order directing each member (in the case of a mutual insurer) or each subscriber (in the case of a reciprocal insurer) if the member or subscriber shall not pay the amount assessed against the member or subscriber to the director on or before a day to be specified in the order, to show cause why the member or subscriber should not be held liable to pay such assessment together with costs as set forth in ORS 734.440, and why the director should not have judgment therefor. [1967 c.359 §296]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.430 - Publication and transmittal of assessment order.

The Director of the Department of Consumer and Business Services shall cause a notice of the assessment order issued under ORS 734.420, which shall set forth a brief summary of the contents of such order, to be:
(1) Published in such manner as shall be directed by the court; and
(2) Enclosed in a sealed envelope, addressed and mailed, postage prepaid, to each member or subscriber liable thereunder, at the last-known address of the member or subscriber as it appears on the records of the insurer, at least 20 days before the return day of the order to show cause specified in the assessment order. [1967 c.359 §297]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.440 - Judgment upon assessment.

(1) On the return day of the order to show cause specified in the assessment order issued under ORS 734.420, if the member or subscriber does not appear and serve verified objections upon the Director of the Department of Consumer and Business Services, the court shall make an order adjudging that such member or subscriber is liable for the amount of the assessment against the member or subscriber, together with $10 costs, and that the director may have judgment against the member or subscriber therefor.
(2) If on such return day the member or subscriber shall appear and serve verified objections upon the director, there shall be a full hearing before the court or a referee to hear and determine the matter. The court, after such hearing, shall make an order either negativing the liability of the member or subscriber to pay the assessment or affirming liability to pay the whole or some part thereof, together with $25 costs and the necessary disbursements incurred at such hearing, and directing that the director, in the latter case, may have judgment therefor. [1967 c.359 §298; 2003 c.576 §221]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.520 - Purpose.

The purpose of ORS 734.510 to 734.710 is to provide for the payment of covered claims under certain insurance policies to avoid excessive delay in payment and to avoid financial loss to claimants or policyholders because of the insolvency of an insurer, to assist in the detection and prevention of insurer insolvencies, to provide an association to assess the cost of such protection among insurers and to assist in the liquidation of insurers as provided in this chapter. [1971 c.616 §2]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.540 - Application.

ORS 734.510 to 734.710 apply to all kinds of direct insurance except life, health, title, surety, credit, mortgage guaranty, home protection insurance, wet marine and transportation insurance and insurance against the risk of economic loss assumed under a less than fully insured employee health benefit plan whether issued or delivered as health or casualty insurance. [1971 c.616 §4; 1977 c.600 §2; 1981 c.247 §14; 1993 c.649 §7]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.550 - Oregon Insurance Guaranty Association; all insurers required to be members; formation of operating plan.

There is created the Oregon Insurance Guaranty Association. Each insurer that is a member insurer shall become and remain a member of the association as a condition of its authority to transact insurance in this state. The association shall perform its functions in accordance with a plan of operation established under ORS 734.590, and shall exercise its powers through its board of directors. [1971 c.616 §6]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.555 - Application to association of certain laws governing corporations; exception.

The provisions, procedures and requirements of ORS chapter 60 relating to a registered office, registered agent and to service of process, notice and demand shall govern the Oregon Insurance Guaranty Association, except that the Director of the Department of Consumer and Business Services shall be substituted for the Secretary of State as the person with whom all filings shall be made and upon whom, in the circumstances specified by statute, such service may be effected. [1977 c.600 §6; 1987 c.846 §12]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.560 - Association board of directors; terms; vacancies; compensation and expenses; quorum.

(1) The board of directors of the Oregon Insurance Guaranty Association shall consist of nine members selected by the member insurers, subject to the approval of the Director of the Department of Consumer and Business Services. The term of each member of the board shall be as specified in the plan, but in no event for longer than four years. A vacancy on the board shall be filled for the remainder of the unexpired term in the same manner as for the initial selection. If the initial selection of members is not made within 60 days after September 9, 1971, the director may select the initial members.
(2) In making or approving selections to the board, the director shall consider, among other things, whether member insurers are fairly represented.
(3) A member of the board shall receive no compensation for services as a member. However, a member shall be reimbursed by the association for actual and necessary travel and other expenses incurred by the member in the performance of duties.
(4) A majority of the members of the board constitutes a quorum for the transaction of business. [1971 c.616 §7]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 734 - Rehabilitation, Liquidation and Conservation of Insurers › Section 734.575 - Refunds from association deposited in General Fund.

Any sums acquired by refund from the Oregon Insurance Guaranty Association that have previously been written off by contributing insurers and offset against corporate excise taxes or fire insurance gross premiums taxes, and are not then needed for purposes of ORS 734.510 to 734.710, shall be paid by the association to the Director of the Department of Consumer and Business Services and deposited with the State Treasurer for credit to the General Fund of this state. [1977 c.793 §3; 1985 c.686 §1; 1995 c.786 §8; 2003 c.568 §4]