reglab/statecodes huggingface dataset:
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 28 - PURCHASING GROUPS AND RISK RETENTION GROUPS › Section 836-028-0005 - Statutory Authority, Purpose

Current through Register Vol. 63, No. 7, July 1, 2024
OAR 836-028-0005  to 836-028-0045  are adopted pursuant to ORS
				731.244 and
				735.360 in order to carry out
				the Oregon Liability Risk Retention Law and to protect the insurance-buying
				public.
Stat. Auth.: ORS 731, ORS 735 & ORS 746
Stats. Implemented: ORS
				  735.300 - ORS
				  735.365
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 28 - PURCHASING GROUPS AND RISK RETENTION GROUPS › Section 836-028-0008 - Unfair Trade Practice

Current through Register Vol. 63, No. 7, July 1, 2024
Failure of a purchasing group to comply with OAR 836-028-0013 or 836-028-0020  is an unfair trade practice under ORS
				746.240.
Stat. Auth.: ORS 731, ORS 731 & ORS 746
Stats. Implemented: ORS
				  746.240
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 28 - PURCHASING GROUPS AND RISK RETENTION GROUPS › Section 836-028-0010 - Registration of Purchasing Groups; Forms

Current through Register Vol. 63, No. 7, July 1, 2024
Before doing business in this state, a purchasing group shall
				notify and register with the Director by completing and submitting to the
				Director the following documents:
(1)
			 A registration. The registration must be made on the form prescribed by the
			 Director.
(2) An appointment of the
			 Director as the agent for service of legal documents for the purchasing group.
			 The appointment must be made on the form prescribed by the Director.
Forms referenced are available from the
				  agency.
Stat. Auth.: ORS 731, 735 & 746
Stats. Implemented: ORS
				  735.330
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 28 - PURCHASING GROUPS AND RISK RETENTION GROUPS › Section 836-028-0013 - Permitted Insurers

Current through Register Vol. 63, No. 7, July 1, 2024
A purchasing group may not purchase insurance from a risk
				retention group or an insurer for members of the purchasing group in this
				state:
(1) Unless the risk retention
			 group is registered in this state.
(2) Unless the insurer is authorized to
			 transact insurance in this state or is an eligible nonadmitted insurer under
			 ORS 735.415.
Stat. Auth.: ORS 731, ORS 735 & ORS 746
Stats. Implemented: ORS
				  735.335
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 28 - PURCHASING GROUPS AND RISK RETENTION GROUPS › Section 836-028-0016 - Amendments to Registration by Purchasing Group

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A purchasing group shall amend its
			 registration in this state when the purchasing group changes any of the
			 following.
(a) The principal place of business
			 of the purchasing group;
(b) The
			 insurer or risk retention group from whom coverage is purchased;
(c) The lines or classifications of liability
			 insurance that the purchasing group purchases.
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 28 - PURCHASING GROUPS AND RISK RETENTION GROUPS › Section 836-028-0020 - Use of Insurance Producers by Purchasing Groups

Current through Register Vol. 63, No. 7, July 1, 2024
A purchasing group shall employ an insurance producer to
				procure insurance for its members in Oregon. Such an insurance producer:
(1) Must hold a current insurance producer's
			 license issued by the Insurance Division, in order to transact insurance in
			 Oregon; or
(2) Must hold a current
			 surplus line licensee's license issued under the Oregon Surplus Lines Law, in
			 order to place business with a surplus lines insurer.
Stat. Auth.: ORS 731, 735 & 746
Stats. Implemented: ORS
				  735.350
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 28 - PURCHASING GROUPS AND RISK RETENTION GROUPS › Section 836-028-0035 - Registration of Foreign Risk Retention Groups; Forms

Current through Register Vol. 63, No. 7, July 1, 2024
Before doing business in this state, a risk retention group
				chartered in a state other than this state shall submit to the Director the
				following documents:
(1) A
			 registration. The registration must be made on the form prescribed by the
			 Director.
(2) A plan of operation
			 or feasibility study, certified by the state of domicile or
			 incorporation.
(3) A copy of the
			 most recent financial statement of the risk retention group, certified by the
			 state of domicile or incorporation, with evidence that the financial statement
			 was certified by an independent certified public account.
(4) A statement of opinion on loss and loss
			 adjustment expense reserves, certified by a member of the American Academy of
			 Actuaries or by a loss reserve specialist qualified under criteria established
			 by the National Association of Insurance Commissioners as of the effective date
			 of this rule.
(5) A copy of the
			 most recent examination report conducted by the Insurance Department of the
			 state of domicile or incorporation.
(6) An appointment of the Director as the
			 agent for services of legal documents for the risk retention group. The
			 appointment must be made on the form prescribed by the Director.
Forms referenced are available from the
				  agency.
Stat. Auth.: ORS 731, 735 & 746
Stats. Implemented: ORS
				  735.315
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 28 - PURCHASING GROUPS AND RISK RETENTION GROUPS › Section 836-028-0040 - Amendments to Registration by Foreign Retention Groups

Current through Register Vol. 63, No. 7, July 1, 2024
When a foreign risk retention group changes its principal place
				of business, the group shall amend its registration in this state to show, with
				respect to the new principal place of business:
(1) The street address, including city and
			 state;
(2) The mailing address, if
			 different;
(3) The telephone
			 number.
Stat. Auth.: ORS 731, ORS 735 & ORS 746
Stats. Implemented: ORS
				  735.315(2)(d)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 28 - PURCHASING GROUPS AND RISK RETENTION GROUPS › Section 836-028-0045 - Financial Statement of Foreign Risk Retention Group; Audit

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Not later than
			 the date on which the financial statement of a foreign risk retention group
			 doing business in this state is due in its state of domicile, the group shall
			 submit a copy of that financial statement to the Director.
(2) When an audit or examination is performed
			 with respect to a foreign risk retention group doing business in this state,
			 the group shall file a copy of the report of the audit or examination with the
			 Director.
Stat. Auth.: ORS 731, ORS 735 & ORS 746
Stats. Implemented: ORS
				  735.315(2)(a)-ORS
				  735.315(c)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0000 - Authority

Current through Register Vol. 63, No. 7, July 1, 2024
OAR 836-029-0000  to 836-029-0120  are adopted under the general
				rulemaking authority of the Director of the Department of Consumer and Business
				Services under ORS 731.244 and the specific
				authority granted by Section 4, chapter 84, Oregon Laws 2012.
Stat. Auth.: ORS
				  731.244, 2012 OL Ch. 84, Sec. 4
				  (Enrolled SB 1547)
Stats. Implemented: 2012 OL Ch. 84, Sec. 2-22 (Enrolled SB
				  1547)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0005 - Purpose and Scope

Current through Register Vol. 63, No. 7, July 1, 2024
The purpose of these rules is to set forth the financial,
				reporting, record-keeping and other requirements the Director of the Department
				of Consumer and Business Services considers necessary for the regulation of
				captive insurers, under sections 2 to 22, chapter 84, Oregon Laws
				2012.
Stat. Auth.: ORS
				  731.244, 2012 OL Ch. 84, Sec. 4
				  (Enrolled SB 1547)
Stats. Implemented: 2012 OL Ch. 84, Sec. 2-22 (Enrolled SB
				  1547)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0010 - Definitions

Current through Register Vol. 63, No. 7, July 1, 2024
As used in OAR 836-029-0000  to 836-029-0120:
(1) "GAAP" means generally accepted
			 accounting principles.
(2) "Work
			 Papers" or "working papers" include but are not limited to schedules, analyses,
			 reconciliations, abstracts, memoranda, narratives, flow charts, copies of
			 captive insurer records or other documents prepared or obtained by the
			 independent certified public accountant and the accountant's employees in the
			 conduct of their audit of a captive insurer.
Stat. Auth.: ORS
				  731.244, 2012 OL Ch. 84, Sec. 4
				  (Enrolled SB 1547)
Stats. Implemented: 2012 OL Ch. 84, Sec. 2-22 (Enrolled SB
				  1547)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0015 - Annual Reporting Requirements

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Not later than March 1, a captive insurer
			 authorized in this state shall file an annual report of its financial condition
			 as of the immediately preceding December 31 with the director of the Department
			 of Consumer and Business Services. The report shall be verified by oath of two
			 of its executive officers and shall be prepared using GAAP. The annual report
			 may be filed electronically in accordance with directions from the
			 director.
(2) An association
			 captive insurer shall comply with the requirements of section 13, chapter 84,
			 Oregon Laws 2012 when filing an annual report on the captive insurer's
			 financial condition.
(3) All
			 captive insurers must use the "Captive Insurer Annual Statement Form" as set
			 forth on the Division of Financial Regulation website of the Department of
			 Consumer and Business Services at dfr.oregon.gov.
(4) The annual report required under section
			 (1) of this rule must be accompanied by a management discussion and analysis
			 that provides details of the captive's financial condition, changes in
			 financial condition and results of operations. The Management Discussion and
			 analysis shall be prepared in accordance with annual statement instructions set
			 forth on the Division of Financial Regulation website of the Department of
			 Consumer and Business Services at dfr.oregon.gov and applicable to the required
			 filing period as set forth in OAR 836-011-0000.
(5) The director may require a captive
			 insurer to provide information applicable to its holding company systems
			 covering activities for the preceding year.
(6) Upon request, the director may grant an
			 extension of time for filing a report or document required under this
			 rule.
Statutory/Other Authority: ORS
				  731.244, Sec. 4 (Enrolled SB
				  1547) & Or Laws 2012, ch 84
Statutes/Other Implemented: Or Laws 2012, ch 84 & Sec.
				  2-22 (Enrolled SB 1547)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0020 - Risk Limitation

Current through Register Vol. 63, No. 7, July 1, 2024
The Director of the Department of Consumer and Business
				Services may:
(1) Limit the net amount
			 of risk a captive insurer retains for a single risk after considering the
			 impact of the retention on the captive insurer's capital and surplus;
			 or
(2) Prescribe and demand
			 additional capital and surplus of any captive insurer if the director
			 determines that the captive insurer is not adequately capitalized for the type,
			 volume and nature of the risk that is being covered by the captive
			 insurer.
Stat. Auth.: ORS
				  731.244, 2012 OL Ch. 84, Sec. 4
				  (Enrolled SB 1547)
Stats. Implemented: 2012 OL Ch. 84, Sec. 2-22 (Enrolled SB
				  1547)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0025 - Annual Audit

Current through Register Vol. 63, No. 7, July 1, 2024
(1) All captive
			 insurers shall have an annual audit by an independent certified public
			 accountant, approved by the Director of the Department of Consumer and Business
			 Services, and shall file an audited financial report with the director on or
			 before June 30 for the preceding year. Financial statements furnished under
			 this section shall be prepared in accordance with generally accepted auditing
			 standards as determined by the AICPA. At the discretion of the director, the
			 requirement of an audit may be waived.
(2) The annual audit report shall be filed
			 not later than June 30 and shall be considered part of the captive insurer's
			 annual report of financial condition except with respect to the date by which
			 it must be filed with the director. The director may grant an extension of time
			 for filing the annual audit.
(3)
			 The annual audit shall include all of the following:
(a) Opinion of an Independent Certified
			 Public Accountant. The opinion of the independent certified public accountant
			 shall:
(A) Cover all years presented;
			 and
(B) Be addressed to the captive
			 insurer on stationery of the accountant showing the address of issuance, shall
			 bear original manual signatures and shall be dated.
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0030 - Management's Report of Internal Control over Financial Reporting

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Each insurer
			 required to file an audited financial report pursuant to OAR 836-029-0015  that
			 has annual direct written and assumed premiums of $500,000,000 or more,
			 excluding premiums reinsured with the Federal Crop Insurance Corporation and
			 Federal Flood Program, shall prepare a report of the insurer's or group of
			 insurers' internal control over financial reporting. The insurer shall file the
			 report with the director, along with the Communication of Internal Control
			 Related Matters Noted in an Audit, as described in 836-029-0035. The
			 Management's Report of Internal Control over Financial Reporting shall be as of
			 December 31 immediately preceding.
(2) A Management's Report of Internal Control
			 over Financial Reporting must include:
(a) A
			 statement that management is responsible for establishing and maintaining
			 adequate internal control over financial reporting;
(b) A statement that management has
			 established internal control over financial reporting and an assertion, to the
			 best of management's knowledge and belief, after diligent inquiry, as to
			 whether its internal control over financial reporting is effective to provide
			 reasonable assurance regarding the reliability of financial statements in
			 accordance with statutory accounting principles;
(c) A statement that briefly describes the
			 approach or processes by which management evaluated the effectiveness of its
			 internal control over financial reporting;
(d) A statement that briefly describes the
			 scope of work that is included and whether any internal controls were
			 excluded;
(e) Disclosure of any
			 unremediated material weaknesses in the internal control over financial
			 reporting identified by management as of December 31 immediately
			 preceding;
(f) A statement
			 regarding the inherent limitations of internal control systems; and
(g) Signatures of the chief executive officer
			 and the chief financial officer (or equivalent position and title).
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0035 - Communication of Internal Control Related Matters Noted in an Audit

Current through Register Vol. 63, No. 7, July 1, 2024
(1) In addition to
			 the annual audited financial report, each captive insurer that has annual
			 direct written premium of $500,000,000 or more shall furnish the director with
			 a written communication as to any unremediated material weaknesses in its
			 internal control over financial reporting noted during the audit. The
			 communication must be prepared by the accountant not later than the 60th day
			 after the filing of the annual audited financial report and shall contain a
			 description of any unremediated material weakness (as the term material
			 weakness is defined by Statement on Auditing Standard 60, Communication of
			 Internal Control Related Matters Noted in an Audit, or its replacement) as of
			 December 31 immediately preceding (so as to coincide with the audited financial
			 report required by OAR 836-029-0025  in the captive insurer's internal control
			 over financial reporting noted by the accountant during the course of their
			 audit of the financial statements. If no unremediated material weaknesses were
			 noted, the communication must so state.
(2) The captive insurer shall submit with the
			 report required under section (1) of this rule a description of remedial
			 actions taken or proposed to correct unremediated material weaknesses, if the
			 actions are not described in the accountant's report.
(3) The captive insurer shall maintain
			 information about significant deficiencies communicated by the independent
			 certified public accountant. The information must be made available to the
			 examiner conducting a financial condition examination for review and kept in
			 such a manner as to remain confidential.
Stat. Auth.: ORS
				  731.244, 2012 OL Ch. 84, Sec. 4
				  (Enrolled SB 1547)
Stats. Implemented: 2012 OL Ch. 84, Sec. 2-22 (Enrolled SB
				  1547)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0040 - Designation of Service Providers

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 A certified public accountant retained to conduct the independent annual audit
			 must be selected from the list of approved certified public accounting firms or
			 individual certified public accountants maintained by the Director of the
			 Department of Consumer and Business Services.
(2) A captive insurer that terminates the
			 appointment of an independent certified public accountant retained to conduct
			 the annual audit required in this rule shall report the name and address of the
			 certified public accountant in writing to the director within ninety days after
			 the appointment is terminated and shall within the same period report the name
			 and address of the certified public accountant that is subsequently
			 retained.
(3) A captive manager
			 hired to manage a captive insurer must be selected from the list of approved
			 captive managers maintained by the Director of the Department of Consumer and
			 Business Services.
(4) A captive
			 insurer that terminates the appointment of a captive manager hired to manage a
			 captive insurer shall report the name and address of the captive manager in
			 writing to the director within ninety days after the appointment is terminated
			 and shall within the same period report the name and address of the captive
			 manager that is subsequently retained.
(5) An actuary hired to opine on the reserves
			 of a captive insurer must be selected from the list of approved actuaries
			 maintained by the Director of the Department of Consumer and Business
			 Services.
(6) A captive insurer
			 that terminates the appointment of an actuary hired to opine on the reserves of
			 a captive insurer shall report the name and address of the actuary in writing
			 to the director within ninety days after the appointment is terminated and
			 shall within the same period report the name and address of the actuary that is
			 subsequently retained.
Stat. Auth.: ORS
				  731.244, 2012 OL Ch. 84, Sec. 4
				  (Enrolled SB 1547)
Stats. Implemented: 2012 OL Ch. 84, Sec. 2-22 (Enrolled SB
				  1547)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0045 - Notification of Material Misstatement of Financial Condition

Current through Register Vol. 63, No. 7, July 1, 2024
A captive insurer shall require its certified public accountant
				to immediately notify an officer and all members of the board of directors of
				the captive insurer in writing of any determination by the independent
				certified public accountant that the captive insurer has materially misstated
				its financial condition in its report to the Director of the Department of
				Consumer and Business Services. The captive insurer shall furnish the
				notification to the director within five working days after receiving the
				notification from its certified public accountant.
Stat. Auth.: ORS
				  731.244, 2012 OL Ch. 84, Sec. 4
				  (Enrolled SB 1547)
Stats. Implemented: 2012 OL Ch. 84, Sec. 2-22 (Enrolled SB
				  1547)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0050 - Additional Deposit Requirement

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 Whenever the Director of the Department of Consumer and Business Services
			 determines that the financial condition of a captive insurer warrants
			 additional security, the director may require the captive insurer to deposit
			 with the director, in trust for the captive insurer, cash, securities approved
			 by the director, or an irrevocable letter of credit issued by a bank chartered
			 by the State of Oregon or a member bank of the Federal Reserve System with the
			 director.
(2) The director shall
			 return the deposit or letter of credit of a captive insurer if the captive
			 insurer ceases to do any business only after being satisfied that all
			 obligations of the captive insurer have been discharged.
(3) With the approval of the director a
			 captive insurer may receive interest or dividends from the deposit or exchange
			 the deposits for others of equal value.
Stat. Auth.: ORS
				  731.244, 2012 OL Ch. 84, Sec. 4
				  (Enrolled SB 1547)
Stats. Implemented: 2012 OL Ch. 84, Sec. 2-22 (Enrolled SB
				  1547)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0055 - Availability and Maintenance of Working Papers of the Independent Certified Public Accountant

Current through Register Vol. 63, No. 7, July 1, 2024
Availability and Maintenance of Working Papers of the
				Independent Certified Public Accountant
(1) Each captive insurer shall require its
			 independent certified public accountant to make all work papers prepared in the
			 conduct of the audit of the captive insurer available for review by the
			 Director of the Department of Consumer and Business Services or his appointed
			 agent. The captive insurer shall require that the accountant retain the audit
			 work papers for a period of not less than five years after the end of the
			 report period.
(2) The review by
			 the director shall be considered an official investigation by the director and
			 all working papers obtained during the course of such investigation shall be
			 confidential business papers and shall be classified as business confidential
			 protected records. The captive insurer shall require that the independent
			 certified public accountant provide photocopies to the department of any of the
			 working papers that the department considers relevant. The department may
			 retain any photocopies of working papers.
Stat. Auth.: ORS
				  731.244, 2012 OL Ch. 84, Sec. 4
				  (Enrolled SB 1547)
Stats. Implemented: 2012 OL Ch. 84, Sec. 2-22 (Enrolled SB
				  1547)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0060 - Documentation Required to be Held in Oregon by Licensed Captives

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Any captive
			 insurer authorized by the Director of the Department of Consumer and Business
			 Services, shall maintain and make ready for inspection and examination by the
			 director, or the director's agent, any and all documents pertaining to the
			 formation, operation, management, finances, insurance and reinsurance of the
			 captive insurer.
(2) Original
			 documents may be kept in the offices of the captive insurer's captive manager,
			 the captive insurer's parent or the captive insurer itself. Accurate and
			 complete copies shall be held in an office located in Oregon designated by the
			 captive insurer and approved by the director as part of the application
			 process.
Stat. Auth.: ORS
				  731.244, 2012 OL Ch. 84, Sec. 4
				  (Enrolled SB 1547)
Stats. Implemented: 2012 OL Ch. 84, Sec. 2-22 (Enrolled SB
				  1547)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0065 - Reinsurance

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Any captive
			 insurer authorized to do business in this state may take credit for reserves on
			 risks ceded to a reinsurer subject to the following limitations:
(a) No credit shall be allowed for
			 reinsurance where the reinsurance contract does not result in the transfer of
			 the risk or liability to the reinsurer.
(b) No credit shall be allowed, as an asset
			 or a deduction from liability, to any ceding insurer for reinsurance unless the
			 reinsurance is payable by the assuming insurer on the basis of the liability of
			 the ceding insurer under the contract reinsured without diminution because of
			 the insolvency of the ceding insurer.
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0070 - Service Providers

Current through Register Vol. 63, No. 7, July 1, 2024
A person may not act in or from this state, as a service
				provider, including but not limited to as a captive insurance manager,
				producer, actuary or certified public accountant, for a captive insurer without
				the authorization of the Director of the Department of Consumer and Business
				Services. Application for such authorization must be on a form prescribed by
				the director. The application shall include information regarding the service
				provider's character, reputation and experience, relative to captive insurer.
				Any person who solicits business entities to form a captive insurer must be
				licensed as a producer under ORS
				744.052 to
				744.089.
Stat. Auth.: ORS
				  731.244, 2012 OL Ch. 84, Sec. 4
				  (Enrolled SB 1547)
Stats. Implemented: 2012 OL Ch. 84, Sec. 2-22 (Enrolled SB
				  1547)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0075 - Directors

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Every captive
			 insurer shall report any change in its executive officers or directors to the
			 Director of the Department of Consumer and Business Services within thirty days
			 after a change is made and include in its report, a biographical affidavit of
			 any new executive officer or director.
(2) No director, officer or employee of a
			 captive insurer shall, except on behalf of the captive insurer, accept, or be
			 the beneficiary of, any fee, brokerage, gift or other emolument because of any
			 investment, loan, deposit, purchase, sale, payment or exchange made by or for
			 the captive insurer. The person may receive only reasonable compensation for
			 necessary services rendered to the captive insurer in the person's usual
			 private, professional or business capacity.
(3) Any profit or gain received by or on
			 behalf of any person in violation of this section shall inure to and be
			 recoverable by the captive insurer.
Stat. Auth.: ORS
				  731.244, 2012 OL Ch. 84, Sec. 4
				  (Enrolled SB 1547)
Stats. Implemented: 2012 OL Ch. 84, Sec. 2-22 (Enrolled SB
				  1547)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0080 - Conflict of Interest

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Each
			 captive insurer licensed in Oregon shall adopt a conflict of interest statement
			 for officers, directors and key employees. The statement shall disclose that
			 the individual has no outside commitments, personal or otherwise, that would
			 divert the person from the duty to further the interests of the captive insurer
			 the person represents but this shall not preclude a person from being a
			 director or officer in more than one insurance captive insurer.
(2) Each officer, director and key employee
			 shall file a yearly disclosure with the board of directors.
Stat. Auth.: ORS
				  731.244, 2012 OL Ch. 84, Sec. 4
				  (Enrolled SB 1547)
Stats. Implemented: 2012 OL Ch. 84, Sec. 2-22 (Enrolled SB
				  1547)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0085 - Acquisition of Control of or Merger with Domestic Captive insurer

Current through Register Vol. 63, No. 7, July 1, 2024
The acquisition of control of, or merger of, a domestic captive
				insurer shall be regulated in accordance with section 9, chapter 84, Oregon
				Laws 2012. However, the Director of the Department of Consumer and Business
				Services may waive or modify the requirements for public notice and hearing
				when the director concludes the public hearing is not necessary due to limited
				public interest in the change of control.
Stat. Auth.: ORS
				  731.244, 2012 OL Ch. 84, Sec. 4
				  (Enrolled SB 1547)
Stats. Implemented: 2012 OL Ch. 84, Sec. 2-22 (Enrolled SB
				  1547)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0090 - Suspension or Revocation

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The
			 Director of the Department of Consumer and Business Services may by order
			 suspend or revoke the license of a captive insurer or place the captive insurer
			 on probation on the following grounds:
(a) The
			 captive insurer has not commenced business according to its plan of operation
			 within two years of being authorized;
(b) The captive insurer has ceased to carry
			 on insurance business in or from within Oregon;
(c) At the request of the captive
			 insurer;
(d) The captive insurer
			 uses methods that render the operation of the captive insurer detrimental to
			 the public or the policyholders of the captive insurer according to standards
			 set forth in OAR 836-029-0095  or
(e) Any reason provided in section 16,
			 chapter 84, Oregon Laws 2012.
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0100 - Director's Authority

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For
			 the purposes of making a determination of the financial condition of a captive
			 insurer under OAR 836-029-0090  to 836-029-0100, the director may do one or more
			 of the following:
(a) Disregard any credit or
			 amount receivable resulting from transactions with a reinsurer that is
			 insolvent, impaired or otherwise subject to a delinquency proceeding;
(b) Make appropriate adjustments to asset
			 values attributable to investments in or transactions with parents,
			 subsidiaries or affiliates;
(c)
			 Refuse to recognize the stated value of accounts receivable if the ability to
			 collect receivables is highly speculative in view of the age of the account or
			 the financial condition of the debtor; or
(d) Increase the captive insurer's liability
			 in an amount equal to any contingent liability, pledge, or guarantee not
			 otherwise included if there is a substantial risk that the captive insurer will
			 be called upon to meet the obligation undertaken within the next 12-month
			 period.
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0105 - Change of Information in Initial Application

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Any material change in a captive
			 insurer's business plan that is filed with the Director of the Department of
			 Consumer and Business Services at the time of initial application and any
			 subsequent amendment of the plan requires prior approval of the
			 director.
(2) Any change in any
			 other information filed with the initial application must be filed with the
			 director within sixty days after the change, but does not require prior
			 approval.
(3) The captive insurer
			 shall immediately notify the director upon making changes in board members or
			 officers of the captive insurer.
Stat. Auth.: ORS
				  731.244, 2012 OL Ch. 84, Sec. 4
				  (Enrolled SB 1547)
Stats. Implemented: 2012 OL Ch. 84, Sec. 2-22 (Enrolled SB
				  1547)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0110 - Application

Current through Register Vol. 63, No. 7, July 1, 2024
(1) In order to
			 form a domestic captive insurer a person shall apply to the director of the
			 Department of Consumer and Business Services for a permit to organize using the
			 form, "Application for Permit to Organize Captive Insurer With or Without
			 Capital Stock" as set forth on the Division of Financial Regulation website of
			 the Department of Consumer and Business Services at dfr.oregon.gov. The written
			 application for permit to organize, including all required attachments and
			 information, must be submitted to the department in accordance with
			 instructions provided with the application.
(2) In order to be authorized to transact
			 insurance as a captive insurer a person shall apply to the director for
			 authority to conduct a captive insurance using the form, "Application to Form a
			 Captive insurer" as set forth on the Division of Financial Regulation website
			 of the Department of Consumer and Business Services at dfr.oregon.gov. The
			 application materials must:
(a) Include one
			 complete copy of the application including forms, attachments, exhibits and all
			 other papers and documents filed as a part thereof, accompanied by the
			 appropriate filing fee filed in writing or online with the director. The
			 written application, including all required attachments and information, must
			 be submitted to the department in accordance with instructions provided with
			 the application.
(b) Be signed in
			 the manner prescribed in the application. If the signature of any person is
			 affixed pursuant to a power of attorney or other similar authority, a copy of
			 the power of attorney or other authority must also be filed with the
			 application.
(c) Include with the
			 application a business plan with supporting data and all other information
			 required by the application.
(d)
			 Include a feasibility study demonstrating the feasibility of the business plan
			 of the captive insurer. The department may test the feasibility of the study by
			 examining the captive insurer's corporate records, if any, including but not
			 limited to the insurer's charter, bylaws and minute books, verification of
			 capital and surplus, verification of principal place of business, determination
			 of assets and liabilities, and any other factor the director considers
			 necessary.
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0115 - Fees

Current through Register Vol. 63, No. 7, July 1, 2024
(1) At the time an
			 applicant submits an application under OAR 836-029-0110  for a permit to
			 organize a captive insurer or for a certificate of authority to operate as a
			 captive insurer the applicant shall pay to the Director of the Department of
			 Consumer and Business Services a nonrefundable fee as set forth in 836-009-0007  for processing the initial application for a permit to organize or for a
			 certificate of authority.
(2) In
			 addition, each captive insurer that is authorized by the director shall pay
			 prior to April 1 an annual continuation fee, without proration, for the year
			 following the year during which the certificate of authority was originally
			 issued and each year thereafter in the amount established in OAR
			 836-009-0007.
Stat. Auth.: ORS
				  731.244, 2012 OL Ch. 84, Sec. 4
				  (Enrolled SB 1547)
Stats. Implemented: 2012 OL Ch. 84, Sec. 2-22 (Enrolled SB
				  1547)
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 29 - CAPTIVE INSURERS › Section 836-029-0120 - Authorized Forms

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The
			 following forms must be used for any applicant applying for a certificate of
			 authority as a new captive insurer:
(a)
			 "Application for Permit to Organize Captive Insurer With or Without Capital
			 Stock;"
(b) "Application to Form a
			 Captive insurer;"
(c) "Biographical
			 Affidavit for Captive insurer;"
(d)
			 "Oregon Insurance Division Captive Insurer Reinsurance Exhibit;"
(e) "Oregon Approved Irrevocable Letter of
			 Credit" if applicable;
(f)
			 "Statement of Economic Benefit to the State of Oregon;" and
(g) "Appointment of a Registered Resident
			 Agent as Attorney to Accept Service of Process."
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 31 - ACCOUNTING AND INVESTMENTS (ORS CHAPTER 733); REHABILITATION AND LIQUIDATION OF INSURERS (ORS CHAPTER 734) › Section 836-031-0200 - Scope, Authority; Statutes Implemented; Application

Current through Register Vol. 63, No. 7, July 1, 2024
(1) OAR 836-031-0200  to 836-031-0300  apply to
			 all individual and group health insurance coverages except credit insurance and
			 establish minimum standards for the following three categories of health
			 insurance reserves:
(a) Claim reserves, under
			 OAR 836-031-0230;
(b) Premium
			 reserves, under OAR 836-031-0240; and
(c) Contract reserves, under OAR
			 836-031-0250.
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 31 - ACCOUNTING AND INVESTMENTS (ORS CHAPTER 733); REHABILITATION AND LIQUIDATION OF INSURERS (ORS CHAPTER 734) › Section 836-031-0220 - Principles Governing Reserves

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 When an insurer determines that health insurance reserves meeting the minimum
			 standards specified in OAR 836-031-0200  to 836-031-0300  are inadequate,
			 increased reserves shall be held and shall be considered the minimum reserves
			 for that insurer.
(2) With respect
			 to any block of contracts, or with respect to an insurer's health insurance
			 business as a whole, a prospective gross premium valuation is the ultimate test
			 of reserve adequacy as of a given valuation date. Such a gross premium
			 valuation must take into account, for all contracts in force, including those
			 in a claims status or in a continuation of benefits status on the valuation
			 date, the present value as of the valuation date of the following:
(a) All expected benefits unpaid;
(b) All expected expenses unpaid;
			 and
(c) All unearned or expected
			 premiums, adjusted for future premium increases reasonably expected to be put
			 into effect.
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 31 - ACCOUNTING AND INVESTMENTS (ORS CHAPTER 733); REHABILITATION AND LIQUIDATION OF INSURERS (ORS CHAPTER 734) › Section 836-031-0230 - Claim Reserves

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The
			 following provisions apply to claim reserves generally:
(a) An insurer must maintain claim reserves
			 for all incurred but unpaid claims on all health insurance policies;
(b) An insurer must maintain appropriate
			 claim expense reserves with respect to the estimated expense of settlement of
			 all incurred but unpaid claims; and
(c) An insurer must test all such reserves
			 for prior valuation years for adequacy and reasonableness using claim runoff
			 schedules in accordance with the statutory financial statement, including
			 consideration of any residual unpaid liability.
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 31 - ACCOUNTING AND INVESTMENTS (ORS CHAPTER 733); REHABILITATION AND LIQUIDATION OF INSURERS (ORS CHAPTER 734) › Section 836-031-0240 - Premium Reserves

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The
			 following provisions apply to premium reserves generally:
(a) An insurer must maintain unearned premium
			 reserves for all contracts with respect to the period of coverage beyond the
			 date of valuation for which premiums, other than premiums paid in advance, have
			 been paid;
(b) If premiums due and
			 unpaid are carried as an asset, an insurer must treat such premiums as premiums
			 in force, subject to unearned premium reserve determination for which premiums,
			 other than premiums paid in advance, have been paid. An insurer must carry the
			 value of unpaid commissions, premium taxes and the cost of collection
			 associated with due and unpaid premiums as an offsetting liability;
(c) The gross premiums paid in advance for a
			 period of coverage commencing after the next premium due date that follows the
			 date of valuation may be appropriately discounted to the valuation date and
			 shall be held either as a separate liability or as an addition to the unearned
			 premium reserve that would otherwise be required as a minimum.
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 31 - ACCOUNTING AND INVESTMENTS (ORS CHAPTER 733); REHABILITATION AND LIQUIDATION OF INSURERS (ORS CHAPTER 734) › Section 836-031-0250 - Contract Reserves

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The
			 following provisions apply to contract reserves generally:
(a) Unless otherwise specified in subsection
			 (b) of this section (1), an insurer must maintain contract reserves for:
(A) All individual and group contracts with
			 which level premiums are used; or
(B) All individual and group contracts with
			 respect to which, owing to the gross premium pricing structure at issue, the
			 value of the future benefits at any time exceeds the value of future valuation
			 net premiums at that time.The values specified in this paragraph (B) of this
			 subsection shall be determined on the basis specified in section (2) of this
			 rule;
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 31 - ACCOUNTING AND INVESTMENTS (ORS CHAPTER 733); REHABILITATION AND LIQUIDATION OF INSURERS (ORS CHAPTER 734) › Section 836-031-0260 - Reinsurance

Current through Register Vol. 63, No. 7, July 1, 2024
Increases to or credits against reserves held that arise
				because of reinsurance assumed or reinsurance ceded must be determined in a
				manner consistent with OAR 836-031-0200  to 836-031-0300  and also with all
				applicable provisions of the reinsurance contracts that affect the liabilities
				of the insurer.
Stat. Auth.: ORS
				  731.244 &
				  733.080
Stats. Implemented: ORS
				  733.080
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 31 - ACCOUNTING AND INVESTMENTS (ORS CHAPTER 733); REHABILITATION AND LIQUIDATION OF INSURERS (ORS CHAPTER 734) › Section 836-031-0270 - Specific Standards for Morbidity

Current through Register Vol. 63, No. 7, July 1, 2024
The following standards apply to morbidity:
(1) Minimum morbidity standards for valuation
			 of specified benefits provided in individual health insurance policies are as
			 follows:
(a) For disability income benefits
			 due to accident or sickness:
(A) Contract
			 reserves:
(i) Contracts issued on or after
			 January 1, 1965 and prior to January 1, 1987: The 1964 Commissioners Disability
			 Table (64 CDT) or, at the option of the insurer, a more recent table approved
			 by the Director;
(ii) Contracts
			 issued on or after January 1, 1995 and prior to January 1, 2017: the 1985
			 Commissioners Individual Disability Tables A (85CIDA) or the 1985 Commissioners
			 Individual Disability Tables B (85CIDB). Each insurer shall elect, with respect
			 to all individual contracts issued in any one statement year, whether it will
			 use Tables A or Tables B as the minimum standard. An insurer may, however,
			 elect to use the other tables with respect to any subsequent statement
			 year;
(iii) Contracts issued during
			 1987 through 1994: Optional use of either the 1964 Table or the 1985 Tables as
			 provided in paragraph (ii) of this subsection;
(iv) Contracts issued on or after January 1,
			 2017 and prior to January 1, 2020: the 1985 Tables as provided in paragraph
			 (ii) of this subsection or, at the election of the insurer, the 2013 Individual
			 Disability Income (IDI) Valuation Table (with modifiers as described in
			 Actuarial Guideline L); and,
(v)
			 Contracts issued on or after January 1, 2020: the 2013 IDI Valuation Table
			 (with modifiers as described in Actuarial Guideline L).
Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 31 - ACCOUNTING AND INVESTMENTS (ORS CHAPTER 733); REHABILITATION AND LIQUIDATION OF INSURERS (ORS CHAPTER 734) › Section 836-031-0280 - Specific Standards for Interest

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For contract reserves, the maximum
			 interest rate is the maximum rate permitted by law in the valuation of whole
			 life insurance issued on the same date as the health insurance
			 contract.
(2) For claim reserves on
			 policies that require contract reserves, the maximum interest rate is the
			 maximum rate permitted by law in the valuation of whole life insurance issued
			 on the same date as the claim incurral date.
(3) For claim reserves on policies not
			 requiring contract reserves, the maximum interest rate is the maximum rate
			 permitted by law in the valuation of single premium immediate annuities issued
			 on the same date as the claim incurral date, reduced by one hundred basis
			 points.
Stat. Auth.: ORS
				  731.244 & ORS
				  733.080
Stats. Implemented: ORS
				  733.080