reglab/statecodes huggingface dataset:
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.145 - Immunity from legal action in carrying out duties.

No person shall have a cause of action against the Oregon FAIR Plan Association or its employees or servicing facilities, any member of the board, or the Director of the Department of Consumer and Business Services or the employees of the director for any action taken by them in carrying out ORS 735.005 to 735.145. [1971 c.321 §16]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.152 - Application of laws.

(1) The provisions of the Insurance Code cited in ORS 735.150 to 735.190 apply to captive insurers. In addition, the provisions of the Insurance Code set forth in ORS chapter 731 relating to administration of the insurance laws apply to captive insurers to the extent not inconsistent with the express provisions of ORS 735.150 to 735.190.
(2) In addition to the provisions of the Insurance Code set forth in subsection (1) of this section, ORS 705.137 and 705.139 apply to captive insurers. [2012 c.84 §3]
Note:
See note under 735.150.
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.156 - Confidentiality of documents and materials; public disclosure.

All documents, materials and other information in the possession of the Department of Consumer and Business Services under ORS 735.150 to 735.190 are confidential and subject to public disclosure only as provided in ORS 705.137. [2012 c.84 §5]
Note:
See note under 735.150.
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.166 - Investment requirements for association captive insurer.

(1)(a) An association captive insurer must comply with the investment requirements of ORS 733.510 to 733.780.
(b) Notwithstanding paragraph (a) of this subsection, the Director of the Department of Consumer and Business Services may by rule approve the use of alternative reliable methods of valuation and rating for an association captive insurer.
(2)(a) A pure captive insurer is not subject to any restrictions on allowable investments under ORS 733.510 to 733.780.
(b) The director may prohibit or limit an investment that threatens the solvency or liquidity of a pure captive insurer.
(3) A captive insurer may not make loans to the parent of the captive insurer or an affiliate of the captive insurer. [2012 c.84 §10]
Note:
See note under 735.150.
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.168 - Allowable risks for captive insurer; risk distribution pool; annual actuarial opinion; rules.

(1) A captive insurer may provide reinsurance on risks ceded by an affiliate of the insurer or a controlled unaffiliated business.
(2) A captive insurer may take credit for reserves on risks or portions of risks ceded to reinsurers if the credit is acceptable to the Director of the Department of Consumer and Business Services.
(3) Subject to the prior written approval of the director, a captive insurer may participate in a pool for the purpose of risk distribution sharing. However, a captive insurer may not join or contribute financially to a plan, pool, association or guaranty or insolvency fund in this state, and a captive insurer, or its insured or its parent or any affiliated company or any member organization of its association, may not receive a benefit from a plan, pool, association or guaranty or insolvency fund for claims arising out of the operations of the captive insurer.
(4) A captive reinsurer must annually file with the department an actuarial opinion provided by a qualified actuary on loss and loss adjustment expense reserves. The qualified actuary providing the actuarial opinion must be independent and may not be an employee of the captive reinsurer or an affiliate of the captive reinsurer for which the actuarial opinion is filed.
(5) A captive reinsurer may discount its loss and loss adjustment expense reserves only as allowed in rules adopted by the director.
(6) The director may disallow the discounting of loss and loss adjustment reserves of a captive reinsurer if the captive reinsurer violates any provision of ORS 735.150 to 735.190. [2012 c.84 §11]
Note:
See note under 735.150.
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.174 - Examination; frequency; scope; payment of expenses.

(1)(a) The Director of the Department of Consumer and Business Services shall examine the affairs of each captive insurer once in each three-year period.
(b) The three-year period described in paragraph (a) of this subsection is determined on the basis of three full annual accounting periods of operation.
(c) The examination is to be made as of December 31 of the full three-year period or as of the last day of the month of an annual accounting period authorized for a captive insurer under this section.
(d) In addition to an examination required under this subsection, the director may examine a captive insurer whenever the director determines it to be prudent.
(2) During an examination under this section, the director shall thoroughly examine the affairs of the captive insurer to ascertain:
(a) The financial condition of the captive insurer;
(b) The ability of the captive insurer to fulfill the obligations of the captive insurer; and
(c) Whether the captive insurer meets the requirements of ORS 735.150 to 735.190.
(3) The director may expand the three-year period described in subsection (1) of this section to five years if during that period a captive insurer is subject to a comprehensive annual audit:
(a) Of a scope satisfactory to the director; and
(b) Performed by independent auditors approved by the director.
(4) The director may accept a comprehensive annual independent audit in lieu of an examination if the scope of the examination is satisfactory to the director and the examination is performed by a qualified independent auditor.
(5) A captive insurer that is examined under this section shall pay the expenses and charges of the examination. [2012 c.84 §14]
Note:
See note under 735.150.
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.176 - Compliance with sound actuarial principles.

Notwithstanding the limits of risk set forth in ORS 731.504, any captive insurer for which the Director of the Department of Consumer and Business Services issues a certificate of authority under ORS 735.150 to 735.190 must comply with sound actuarial principles as determined by the director and must submit reports demonstrating such compliance to the director. [2012 c.84 §15]
Note:
See note under 735.150.
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.178 - Suspension or revocation of certificate of authority.

(1) The Director of the Department of Consumer and Business Services may suspend or revoke the certificate of authority issued to a captive insurer to transact insurance in this state if the captive insurer:
(a) Is insolvent or impaired as defined in ORS 734.014;
(b) Fails to meet the requirements of ORS 735.150 to 735.190;
(c) Refuses or fails to submit an annual report required by ORS 735.172 or any other report or statement required by law or by order of the director;
(d) Fails to comply with the charter, bylaws or other organizational document of the captive insurer;
(e) Fails to submit to an examination under ORS 735.174 or 735.182 or any legal obligation relative to an examination under ORS 735.174 or 735.182;
(f) Refuses or fails to pay the cost of examination under ORS 735.174 or 735.182;
(g) Uses methods that, although not otherwise specifically prohibited by law, render:
(A) The operation of the captive insurer detrimental to the public or the policyholders of the captive insurer according to standards adopted by the director by rule; or
(B) The condition of the captive insurer unsound with respect to the public or to the policyholders of the captive insurer; or
(h) Otherwise fails to comply with laws of this state.
(2) If the director finds, upon examination, hearing or other evidence that a captive insurer has committed any of the acts specified in subsection (1) of this section, the director may suspend or revoke the certificate of authority issued to the captive insurer if the director considers it in the best interest of the public and the policyholders of the captive insurer. [2012 c.84 §16]
Note:
See note under 735.150.
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.180 - Branch captive insurer as pure captive insurer; rules.

Except as otherwise provided in ORS 735.150 to 735.190, a branch captive insurer must be a pure captive insurer with respect to business operations in this state, unless otherwise permitted by rule of the Director of the Department of Consumer and Business Services. [2012 c.84 §17]
Note:
See note under 735.150.
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.182 - Examination of branch captive insurer and alien captive insurer; payment of charges and expenses.

(1) The Director of the Department of Consumer and Business Services shall examine only the branch operations of, and the insurance transacted by, a branch captive insurer in this state if the branch captive insurer:
(a) Provides annually to the director a certificate of compliance, or an equivalent, issued by or filed with the licensing authority of the jurisdiction in which the branch captive insurer is formed; and
(b) Demonstrates to the satisfaction of the director that the branch captive insurer is operating in sound financial condition in accordance with ORS 735.150 to 735.190 and all applicable laws and regulations of the jurisdiction in which the branch captive insurer is formed.
(2) As a condition of its authority as a branch captive insurer, an alien captive insurer must authorize the director to examine the affairs of the alien captive insurer in the jurisdiction in which the alien captive insurer is formed.
(3) An alien captive insurer that is examined under this section shall pay the expenses and charges of the examination. [2012 c.84 §18]
Note:
See note under 735.150.
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.184 - Requirements for foreign captive insurer to provide insurance in this state.

Notwithstanding ORS 731.022, a foreign captive insurer may provide insurance in this state if the foreign captive insurer meets both of the following conditions:
(1) The foreign captive insurer is domiciled in a state that regulates the foreign captive insurer as a captive insurer and the captive insurer is in good standing in that state.
(2) All activities related to the placement of the insurance occurs in the domicile state and the insurance otherwise complies with the laws of the domicile state, including the proposal to make an insurance contract, taking or receiving an application for insurance, collecting a premium or other consideration for the insurance and issuing or delivering policies of insurance. [2012 c.84 §19]
Note:
See note under 735.150.
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.186 - Management of assets of captive reinsurer.

At least 35 percent of the assets of a captive reinsurer must be managed by an asset manager domiciled in this state. [2012 c.84 §20]
Note:
See note under 735.150.
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.188 - Application of captive reinsurer for certificate of authority.

If permitted by its articles of incorporation or charter, and in accordance with ORS 735.158 and 735.190, a captive reinsurer may apply to the Director of the Department of Consumer and Business Services for a certificate of authority to transact reinsurance. [2012 c.84 §21]
Note:
See note under 735.150.
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.190 - Incorporation of captive reinsurer.

(1) A captive reinsurer must be incorporated as a stock insurer with its capital divided into shares and held by the captive reinsurer’s shareholders. In incorporating, a captive reinsurer must comply with the requirements of ORS 735.164.
(2) The capital stock of a captive reinsurer must be issued at par value or greater.
(3) At least one member of the board of directors of a captive reinsurer incorporated in this state must be a resident of this state. [2012 c.84 §22]
Note:
See note under 735.150.
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.200 - Legislative findings; purpose.

(1) The Legislative Assembly finds that:
(a) Some businesses and service providers in Oregon have experienced major problems in both the availability and affordability of commercial liability insurance. Premiums for such insurance policies have recently grown as much as 500 percent and the availability of such insurance in Oregon markets has greatly diminished.
(b) These businesses and service providers are essential to achieve goals such as increased workforce productivity, family self-sufficiency and the maintenance and improvement of the health of the citizens of Oregon. The lack of adequate commercial liability insurance threatens these businesses and services.
(2) The Legislative Assembly therefore declares it is the purpose of ORS 735.200 to 735.260 to remedy the problem of unavailable commercial liability insurance for these businesses and service providers by authorizing the Director of the Department of Consumer and Business Services to assist in the establishment of a market assistance plan for providing commercial liability insurance for these businesses and service providers, or, if necessary, by requiring all insurers authorized to write commercial liability insurance in Oregon to be members of one or more joint underwriting associations created to provide commercial liability insurance for these businesses and service providers. [1987 c.774 §73]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.205 - Definitions for ORS 735.200 to 735.260.

As used in ORS 735.200 to 735.260:
(1) "Joint underwriting association" means a mechanism requiring casualty insurers doing business in Oregon to provide commercial liability insurance to certain businesses and service providers on either an assigned risk basis or through a joint underwriting pool underwritten to standards adopted under the Insurance Code.
(2) "Market assistance plan" means a mechanism through which admitted casualty insurers in this state provide commercial liability insurance for classes of risks designated by the Director of the Department of Consumer and Business Services. [1987 c.774 §74]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.210 - Formation of market assistance plans; rules.

(1) After a public hearing, the Director of the Department of Consumer and Business Services may by rule require insurers authorized to write and writing commercial liability insurance in this state to form a market assistance plan to assist businesses and service providers unable to purchase specified classes of commercial liability insurance in adequate amounts from either the admitted or nonadmitted market.
(2) The market assistance plan shall operate under a plan of operations prepared by admitted insurers, eligible surplus line insurers and insurance producers, and approved by the director. [1987 c.774 §75; 2003 c.364 §90]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.215 - Findings prior to formation of joint underwriting association; hearing.

(1) The Director of the Department of Consumer and Business Services may mandate the formation of a joint underwriting association under ORS 735.220 if after directing the formation of a market assistance plan and allowing it a reasonable time to alleviate insurance availability problems, the director finds that:
(a) There exist in Oregon certain businesses or service providers for which no commercial liability insurance is available; and
(b) There is a need in Oregon for the goods or services provided by these businesses or service providers and the lack of available commercial liability insurance will cause a substantial number of the entities to cease operations within the state.
(2) Notwithstanding subsection (1) of this section, if the lack of availability of insurance is due to legitimate insurance underwriting considerations, including past claims experience, licensing noncompliance or inadequate risk management, formation of a joint underwriting association shall not be appropriate.
(3) The director may make the findings required under subsection (1) of this section only after conducting a public hearing according to the applicable provisions of ORS chapter 183. The director must specify the specific classes of business or lines of insurance determined to be unavailable.
(4) At least once each year, the director shall hold a public hearing to determine if the classes of business or lines of insurance offered by the joint underwriting association are still unavailable in the voluntary insurance market. If any class or line is found to be available, the joint underwriting association shall cease to underwrite such class of business or line of insurance. [1987 c.774 §76]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.220 - Formation of joint underwriting association; funds.

After finding under ORS 735.215 that there is a need in Oregon for a joint underwriting association, the Director of the Department of Consumer and Business Services may form and put into operation a temporary, nonprofit, nonexclusive joint underwriting association constituting a legal entity separate and distinct from its members for commercial liability insurance subject to the conditions and limitations contained in the Insurance Code. All funds and reserves of the association shall be separately held and invested. [1987 c.774 §77]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.225 - Membership in joint underwriting association.

The joint underwriting association established under ORS 735.220 shall be comprised of all insurers authorized to write and who are writing commercial liability insurance within this state on a direct basis, including the commercial liability portions of multiperil policies. Every such insurer shall remain a member of the association as a condition of its authority to continue to transact insurance in this state. [1987 c.774 §78]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.230 - Rates; approval.

The board of directors of the joint underwriting association shall engage the services of an independent actuarial firm to develop and recommend actuarially sound rates, rating plans, rating rules and classifications. The Director of the Department of Consumer and Business Services shall approve rates filed by the joint underwriting association in accordance with ORS 737.310. All rates approved for the joint underwriting association shall be actuarially sound and calculated to be self-supporting. [1987 c.774 §79]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.235 - Board of directors.

The joint underwriting association formed under ORS 735.220 shall be under the administrative control of a seven person board of directors appointed by the Governor. Two directors shall represent insurance carriers participating in the association; one director shall represent insurance producers; three directors shall represent the affected classes of insureds; and one director shall be a public member with no ties to the insurance industry. The board shall elect one of its members as chairperson. [1987 c.774 §80; 2003 c.364 §91]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.240 - Annual statement.

The joint underwriting association shall file an annual statement prepared by an independent certified public accountant containing a financial statement, a summary of its transactions and operations for the prior year and other information as prescribed by the Director of the Department of Consumer and Business Services by rule. [1987 c.774 §81]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.245 - Conditions for policyholder surcharge.

(1) Upon a determination of the board of directors that the joint underwriting association will be unable to pay its outstanding lawful obligations as they mature, the board shall certify the existence of this condition to the Director of the Department of Consumer and Business Services. A schedule for policyholder surcharges shall be submitted by the board at the time of certification.
(2) The surcharge schedule shall become final 30 days after certification unless the director finds, after a public hearing, that the surcharge amounts are unreasonable or unjustifiable. Such surcharges may be adjusted to take into consideration the past and prospective loss and expense experience in different geographical areas within the state. Such surcharges shall be in addition to and not in lieu of the premiums charged for the coverages provided.
(3) Moneys collected in accordance with subsection (2) of this section shall be held in a fund separate from other joint underwriting association funds. Such funds shall be invested in accordance with applicable law governing publicly held trust funds. The association shall file an annual financial statement covering such funds.
(4) Surcharge funds shall be subject to the control of the board of directors and may be used to satisfy the legal obligations of the joint underwriting association.
(5) No part of the profit or loss of the joint underwriting association shall inure to the benefit of any member insurer or be an obligation of any member insurer. [1987 c.774 §82]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.250 - Exemption from liability.

There shall be no liability or cause of action against any member insurer, self-insurer, or its agents or employees, the joint underwriting association or its agents or employees, members of the board of directors, the Department of Consumer and Business Services or its representatives for any action taken by or statement made by them in performance of their powers and duties under ORS 735.210 to 735.260. [1987 c.774 §83]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.255 - State not liable to pay debts of association.

The state is not liable to pay any debts or obligations of any association formed under ORS 735.220 and no person may assert any claim against the state or any of its agencies for any act or omission of the association. [1987 c.774 §84]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.265 - Liquor liability insurance risk and rate classifications; rules.

If a market assistance plan is formed under ORS 735.210, or a joint underwriting association is formed under ORS 735.220, the Director of the Department of Consumer and Business Services shall by rule establish such liquor liability insurance risk and rate classifications as may be necessary to facilitate the availability and affordability of this commercial insurance product. Risk and rate classifications shall be established for all facets of the liquor industry including those who sell at wholesale or retail and the State of Oregon, as allowed by law. Risk classifications and rating plans shall be developed upon considerations including, but not limited to, the following factors:
(1) Past loss experience and prospective loss experience of different license types.
(2) Past loss experience and prospective loss experience in different geographic areas.
(3) Prior claims experience of the individual licensee.
(4) Prior compliance with public safety and alcoholic beverage laws, rules and ordinances pertaining to the sale and service of alcoholic beverages.
(5) Evidence of responsible management policies including, but not limited to, procedures and actions which:
(a) Encourage persons not to become intoxicated if they consume alcoholic beverages on the licensee’s premises;
(b) Promote availability of nonalcoholic beverages and food;
(c) Promote safe transportation alternatives to driving while intoxicated;
(d) Prohibit employees and agents of the licensee from consuming alcoholic beverages while acting in their capacity as employee or agent;
(e) Establish promotions and marketing efforts which publicize responsible business practices to the licensee’s customers and community;
(f) Implement comprehensive training procedures; and
(g) Maintain an adequate, trained number of employees and agents for the type and size of licensee’s business. [1987 c.774 §88]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.300 - Purpose of ORS 735.300 to 735.365.

The purpose of ORS 735.300 to 735.365 is to regulate the formation and operation of risk retention groups and purchasing groups in this state formed pursuant to the provisions of the federal Liability Risk Retention Act of 1986 (P.L. 99-563). [1987 c.774 §98; 1989 c.700 §10]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.310 - Qualifications for risk retention group; plan of operation; application; notification to National Association of Insurance Commissioners.

(1) A risk retention group seeking to be organized in this state:
(a) Must be organized as a liability insurer in this state and authorized by a subsisting certificate of authority issued by the director to transact liability insurance in this state, as provided in ORS chapter 732; and
(b) Except as otherwise provided in ORS 735.300 to 735.365, must comply with all laws, rules and other requirements applicable to such insurers authorized to transact insurance in this state and with ORS 735.315 to the extent the requirements under ORS 735.315 are not a limitation on other laws, rules or requirements of this state.
(2) Before a risk retention group may offer insurance in any state, the risk retention group shall submit for approval to the director of this state a plan of operation or a feasibility study and revisions of such plan or study if the group intends to offer any additional lines of liability insurance.
(3) Immediately upon receipt of an application for organization, the director shall provide summary information concerning the filing to the National Association of Insurance Commissioners, including the name of the risk retention group, the identity of the initial members of the group, the identity of those individuals who organized the group or who will provide administrative services or otherwise influence or control the activities of the group, the amount and nature of initial capitalization, the coverages to be afforded and the states in which the group intends to operate. Providing notification to the National Association of Insurance Commissioners is in addition to and shall not be sufficient to satisfy the requirements of ORS 735.300 to 735.365. [1987 c.774 §100]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.320 - Relationship to insurance guaranty fund and joint underwriting association.

(1) No risk retention group shall be permitted to join or contribute financially to any insurance insolvency guaranty fund, or similar mechanism, in this state. No risk retention group, or its insureds, shall receive any benefit from any such fund for claims arising out of the operations of the risk retention group.
(2) A risk retention group shall participate in this state’s joint underwriting associations and mandatory liability pools as provided by the Insurance Code. [1987 c.774 §102]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.325 - Exemption of purchasing groups from certain laws.

Any purchasing group meeting the criteria established under the provisions of the federal Liability Risk Retention Act of 1986 (P.L. 99-563), shall be exempt from any law of this state relating to the creation of groups for the purchase of insurance or the prohibition of group purchasing, or any law that would discriminate against a purchasing group or its members. In addition, an insurer shall be exempt from any law of this state that prohibits providing or offering to provide advantages to a purchasing group or its members based on their loss and expense experience not afforded to other persons with respect to rates, policy forms, coverages or other matters. A purchasing group shall be subject to all other applicable laws of this state. [1987 c.774 §103]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.330 - Purchasing groups; notice of intent to do business; registration; exceptions.

(1) A purchasing group that intends to do business in this state shall furnish notice to the director, which shall:
(a) Identify the state in which the group is domiciled;
(b) Specify the lines and classifications of liability insurance that the purchasing group intends to purchase;
(c) Identify the insurer from which the group intends to purchase its insurance and the domicile of the insurer;
(d) Identify the principal place of business of the group; and
(e) Provide such other information as may be required by the director to verify that the purchasing group is qualified under ORS 735.305 (10).
(2) The purchasing group shall register with the director and designate the director as its agent solely for the purpose of receiving service of legal documents or process, except that such requirements shall not apply in the case of a purchasing group that meets the following qualifications:
(a) That:
(A) Was domiciled before April 1, 1986, in any state; and
(B) Is domiciled on and after October 27, 1986, in any state;
(b) That:
(A) Before October 27, 1986, purchased insurance from an insurance carrier licensed in any state; and
(B) On and after October 27, 1986, purchased insurance from an insurance carrier licensed in any state;
(c) That was a purchasing group under the requirements of the federal Product Liability Risk Retention Act of 1981, as amended by the Risk Retention Amendments of 1986, before October 27, 1986; and
(d) That does not purchase insurance that was not authorized for purposes of an exemption under the federal Product Liability Risk Retention Act of 1981, as in effect before October 27, 1986. [1987 c.774 §104]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.335 - Purchase of insurance by purchasing group.

A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state or from an insurer not admitted in the state in which the purchasing group is located, unless the purchase is effected through a licensed insurance producer acting pursuant to the surplus lines laws and regulations of that state. [1987 c.774 §105; 2003 c.364 §93]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.340 - Insurance Code enforcement authority subject to federal law.

The director is authorized to make use of any of the powers established under the Insurance Code to enforce the laws of this state so long as those powers are not specifically preempted by the federal Product Liability Risk Retention Act of 1981, as amended by the Risk Retention Amendments of 1986. This includes, but is not limited to, the director’s administrative authority to investigate, issue subpoenas, conduct depositions and hearings, issue orders and impose penalties. With regard to any investigation, administrative proceedings or litigation, the director may rely on the procedural law and rules of the state. The injunctive authority of the director in regard to risk retention groups is restricted by the requirement that any injunction be issued by a court of competent jurisdiction. [1987 c.774 §106]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.345 - Violation of 735.300 to 735.365; penalties.

A risk retention group that violates any provision of ORS 735.300 to 735.365 is subject to criminal and civil penalties applicable to insurers generally, and to suspension or revocation of its certificate of authority to transact insurance. [1987 c.774 §107]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.350 - Agent or broker; license.

Any person acting or offering to act as an insurance producer for a risk retention group or purchasing group that solicits members, sells insurance coverage, purchases coverage for its members located within this state or otherwise does business in this state shall, before commencing any such activity, obtain a license as an insurance producer from the director under ORS chapter 744. [1987 c.774 §108; 1989 c.701 §71; 2003 c.364 §94]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.355 - Court orders enforceable in Oregon.

An order issued by any district court of the United States enjoining a risk retention group from soliciting or selling insurance or operating in any state or in all states or in any territory or possession of the United States, upon a finding that such a group is in a hazardous financial condition shall be enforceable in the courts of this state. [1987 c.774 §109]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.400 - Purposes of ORS 735.400 to 735.495.

ORS 735.400 to 735.495 shall be liberally construed and applied to promote its underlying purposes which include:
(1) Protecting persons seeking insurance in this state;
(2) Permitting surplus lines insurance to be placed with reputable and financially sound nonadmitted insurers and exported from this state pursuant to ORS 735.400 to 735.495;
(3) Establishing a system of regulation which will permit orderly access to surplus lines insurance in this state and encourage admitted insurers to provide new and innovative types of insurance available to consumers in this state; and
(4) Protecting revenues of this state. [1987 c.774 §117]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.406 - Cost of living adjustment to net worth, revenues and expenses of exempt commercial purchasers.

Beginning on January 1, 2015, and each fifth January 1 occurring thereafter, the amounts in ORS 735.405 (6)(c)(A), (B) and (D) shall be adjusted to reflect the percentage change for such five-year period in the Consumer Price Index for All Urban Consumers, West Region (All Items), as published by the Bureau of Labor Statistics of the United States Department of Labor. [2011 c.660 §7; 2019 c.57 §33]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.410 - Conditions for procuring insurance through nonadmitted insurer; rules.

(1) Insurance may be procured through a surplus lines licensee from a nonadmitted insurer if:
(a) The insurer is an eligible surplus lines insurer;
(b) A diligent search has first been made among the insurers who are authorized to transact and are actually writing the particular kind and class of insurance in this state, and it is determined that the full amount or kind of insurance cannot be obtained from those insurers; and
(c) All other requirements of ORS 735.400 to 735.495 are met.
(2) Subsection (1)(b) of this section does not apply to a surplus lines licensee seeking to procure or place nonadmitted insurance in this state for an exempt commercial purchaser if:
(a) The surplus lines licensee procuring or placing the surplus lines insurance has disclosed to the exempt commercial purchaser that such insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight; and
(b) The exempt commercial purchaser has subsequently requested in writing that the surplus lines licensee procure or place such insurance from a nonadmitted insurer.
(3) The Director of the Department of Consumer and Business Services by rule may establish requirements applicable to the placement of surplus lines insurance on Oregon home state risks by a nonresident surplus lines licensee. The rules may not interfere with or hinder implementation of the federal Gramm-Leach-Bliley Act (P.L. 106-102) with respect to licensing reciprocity among the states, or the Nonadmitted and Reinsurance Reform Act of 2010 (P.L. 111-203, Title V, Subtitle B). [1987 c.774 §119; 2001 c.191 §44b; 2011 c.660 §9]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.417 - Insured required to report and pay taxes on independently procured insurance covering Oregon home state risks.

(1) Each insured in this state who obtains independently procured insurance, or continues or renews independently procured insurance on Oregon home state risks, other than insurance procured through a surplus lines licensee, shall file, within 30 days after the date the insurance was procured, continued or renewed, a written report with the Director of the Department of Consumer and Business Services showing:
(a) The name and address of the insurer;
(b) The subject of the insurance;
(c) The amount of premium currently charged; and
(d) Additional pertinent information reasonably requested by the director.
(2) The insured filing a report under subsection (1) of this section shall pay, at the time of filing the report, the director an amount equal to the taxes imposed under ORS 735.470 for the premium reported under subsection (1)(c) of this section. The filing of the report and payment of the taxes may be made by a person authorized by the insured to act on the insured’s behalf.
(3)(a) The director may require that reports filed under subsection (1) of this section be filed with the Surplus Line Association of Oregon. The director may require that such filings be made electronically, but may allow an exemption to this requirement for good cause shown.
(b) The director may require that amounts to be paid to the director under subsection (2) of this section be paid to the Surplus Line Association of Oregon. [2011 c.660 §5]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.418 - Director authorized to enter into interstate compact for premium tax allocation.

For purposes of carrying out the Nonadmitted and Reinsurance Reform Act of 2010 (P.L. 111-203, Title V, Subtitle B), after receiving express legislative approval, the Director of the Department of Consumer and Business Services is authorized to enter into a compact or to otherwise establish procedures with other states to allocate among the states the premium taxes paid to an insured’s home state. [2011 c.660 §4]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.420 - Declaration of ineligibility of surplus lines insurer.

(1) The Director of the Department of Consumer and Business Services may declare a surplus lines insurer described in ORS 735.415 (1) ineligible if the director has reason to believe that the surplus lines insurer:
(a) Is in unsound financial condition;
(b) Is no longer eligible under ORS 735.415;
(c) Has willfully violated the laws of this state; or
(d) Does not make reasonably prompt payment of just losses and claims in this state or elsewhere.
(2) The director shall promptly mail notice of all such declarations to each surplus lines licensee. [1987 c.774 §121; 2001 c.191 §44d]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.425 - Filing by licensee after placement of surplus lines insurance.

(1) Within 90 days after the placing of any surplus lines insurance in this state on an Oregon home state risk, each surplus lines licensee shall file with the Director of the Department of Consumer and Business Services:
(a) A statement signed by the licensee regarding the insurance, which shall be kept confidential as provided in ORS 705.137, including the following:
(A) The name and address of the insured;
(B) The identity of the insurer or insurers;
(C) A description of the subject and location of the risk;
(D) The amount of premium charged for the insurance; and
(E) Such other pertinent information as the director may reasonably require.
(b) A statement on a standardized form furnished by the director, as to the diligent efforts by the producing insurance producer to place the coverage with admitted insurers and the results thereof. The statement shall be signed by the producing insurance producer and shall affirm that the insured was expressly advised prior to placement of the insurance that:
(A) The surplus lines insurer with whom the insurance was to be placed is not licensed in this state and is not subject to its supervision; and
(B) In the event of the insolvency of the surplus lines insurer, losses will not be paid by the state insurance guaranty fund.
(2) A surplus lines licensee placing nonadmitted insurance in this state for an exempt commercial purchaser satisfies the requirements of subsection (1)(b) of this section if the surplus lines licensee provides proof of compliance with ORS 735.410 (2).
(3) The director may direct that filings required under subsection (1) of this section be made to the Surplus Line Association of Oregon. The director may also require that such filings be made electronically but may exempt a licensee from the requirement for good cause shown.
(4) A nonresident surplus lines licensee who places a surplus lines policy on an Oregon home state risk shall satisfy the requirements in ORS 735.410 and the filing requirements in subsections (1) and (2) of this section.
(5) Facsimile signatures and electronic signatures subject to ORS 84.001 to 84.061 are acceptable and have the same force as original signatures. [1987 c.774 §122; 1993 c.182 §1; 2001 c.377 §§13,13a; 2003 c.364 §39; 2005 c.185 §12; 2011 c.660 §11]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.445 - Effect of payment of premium to surplus lines licensee.

A payment of premium to a surplus lines licensee acting for a person other than the surplus lines licensee in negotiating, continuing or renewing any policy of insurance under ORS 735.400 to 735.495 shall be deemed to be payment to the insurer, whatever conditions or stipulations may be inserted in the policy or contract notwithstanding. [1987 c.774 §126]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.450 - Requirements for license as surplus lines insurance licensee.

A person may not procure any contract of surplus lines insurance with any nonadmitted insurer for an Oregon home state risk unless the person is licensed under ORS chapter 744 to transact surplus lines insurance. A person may obtain a license to transact surplus lines insurance only if the person is licensed as an insurance producer under ORS chapter 744 to transact property and casualty insurance. [1987 c.774 §127; 1989 c.288 §1; 1991 c.810 §26; 1995 c.639 §14; 2001 c.191 §46; 2003 c.364 §41; 2011 c.660 §14]
2023 Oregon Revised Statutes › Volume : 18 - Financial Institutions, Insurance › Chapter 735 - Alternative Insurance › Section 735.455 - Authority of licensee; rules.

(1) A surplus lines licensee may originate surplus lines insurance on an Oregon home state risk or accept such insurance from any other insurance producer duly licensed as to the kinds of insurance involved on an Oregon home state risk, and the surplus lines licensee may compensate the insurance producer therefor.
(2) A surplus lines licensee may charge a producing insurance producer a fee or a combination of a fee and a commission when transacting surplus lines for the producing insurance producer if the surplus lines licensee has a written agreement with the producing insurance producer prior to the binding or issuance of a surplus lines insurance policy. When a surplus lines licensee transacts surplus lines insurance directly for a prospective insured, the surplus lines licensee may charge the prospective insured a fee or a combination of a fee and a commission if the surplus lines licensee has a written agreement with the prospective insured prior to the binding or issuance of a surplus lines insurance policy.
(3) A producing insurance producer may charge a fee to a prospective insured when the producing insurance producer pays a fee or a combination of a fee and a commission to a surplus lines licensee under subsection (2) of this section if the producing insurance producer has a written agreement with the prospective insured prior to the binding or issuance of the surplus lines insurance policy. The fee may not exceed the amount of compensation paid by the producing insurance producer to the surplus lines licensee.
(4) For the purpose of determining the charge under subsection (2) of this section, the producing insurance producer and the surplus lines licensee may agree to any allocation of the fee that the producing insurance producer charges the prospective insured under this section.
(5) The fee or the fee and commission charged by a surplus lines licensee under subsection (2) of this section must be commensurate with the services provided by the surplus lines licensee. The Director of the Department of Consumer and Business Services may establish by rule minimum conditions for written agreements entered into under this section. An insurer or insurance producer who enters into a written agreement as provided in this section is not in violation of ORS 746.035 or 746.045. [1987 c.774 §128; 2003 c.364 §42; 2011 c.660 §15]