Chapter 731 — Administration and General Provisions

731.004 Short title

ORS chapters 731, 732, 733, 734, 735, 737, 742, 743, 743A, 743B, 744, 746, 748 and 750 may be cited as the Insurance Code.

731.008 Purpose of Insurance Code

The Legislative Assembly declares that the Insurance Code is for the protection of the insurance-buying public.

731.010 [Repealed by 1965 c.241 §3]

731.012 Effect of federal law

The Insurance Code shall regulate the business of insurance and every person engaged therein in accordance with the intent of Congress as expressed in the Act of March 9, 1945, as amended (Public Law 15, 79th Congress, 15 U.S.C. 1011 to 1014) which states in part that no Act of Congress shall be construed to invalidate, impair or supersede any law enacted by…

731.016 Construction of Insurance Code

The Insurance Code shall be liberally construed and shall be administered and enforced by the Director of the Department of Consumer and Business Services to give effect to the policy stated in ORS 731.008.

731.020 [Repealed by 1965 c.241 §3]

APPLICATION OF INSURANCE CODE

731.022 Compliance with Insurance Code required

No person shall transact insurance in this state or relative to a domestic risk without complying with the applicable provisions of the Insurance Code.

731.026 Application of Insurance Code to particular insurers

The Insurance Code applies to: A fraternal benefit society complying with ORS chapter 748, only as provided in such chapter. A health care service contractor complying with ORS 750.005 to 750.095, only as provided in such sections. A legal expense organization complying with ORS 750.505 to 750.715, only as provided in such sections. A multiple employer w…

731.028 Applicability of certain Insurance Code provisions to State Accident Insurance Fund Corporation

The State Accident Insurance Fund Corporation is subject as a domestic insurer to ORS 731.248, 731.252, 731.256, 731.258, 731.260, 731.296 to 731.316, 731.488, 731.574, 731.592, 731.594, 731.730, 731.731, 731.735, 731.737, 731.870, 731.988, 731.992, 733.010 to 733.060, 733.140 to 733.170, 733.210, 737.205, 737.215, 737.225, 737.235 to 737.340, 737.505 and 73…

731.030 [Repealed by 1965 c.241 §3]

731.032 [1967 c.359 §7; 1971 c.69 §1; 1971 c.538 §1; 1979 c.848 §1; 1993 c.265 §3; repealed by 2003 c.802 §173]

731.036 Persons completely exempt from application of Insurance Code

Except as provided in ORS 743.029 or as specifically provided by law, the Insurance Code does not apply to any of the following to the extent of the subject matter of the exemption: A bail bondsman, other than a corporate surety and its agents. A fraternal benefit society that has maintained lodges in this state and other states for 50 years prior to Janua…

731.038 Application of Insurance Code to charitable organizations that issue charitable gift annuities

As used in this section: “Charitable gift annuity” has the meaning given that term in section 501(m)(5) of the Internal Revenue Code, as amended and in effect on January 1, 2006. “Charitable organization” means an organization to which contributions may be made that are charitable contributions under section 170(c) of the Internal Revenue Code, as amended …

731.039 Requirements for certain educational institutions or nonprofit corporations issuing charitable gift annuities

ORS 731.038 (2)(a) and (b) does not apply to an educational institution or nonprofit corporation that holds a certificate of authority issued under ORS 731.704 (repealed in 2005) on the day before January 1, 2006. An educational institution or nonprofit corporation subject to this section shall keep on file an annual audited financial statement prepared by a…

731.040 [Repealed by 1965 c.241 §3]

731.042 Certificate of exemption; application of certain Insurance Code provisions to exempt insurers

An exempt insurer who holds a certificate of exemption issued by the Director of the Department of Consumer and Business Services before January 1, 2003, may continue transacting insurance. In order to continue a certificate of exemption, an exempt insurer to whom subsection (1) of this section applies must file its annual statement and pay the fees establi…

731.046 Exemption of policies from Securities Law

Any policy, other than a variable annuity policy, whose form has been filed with and approved by the Director of the Department of Consumer and Business Services is exempt from the application of ORS 59.005 to 59.505, 59.710 to 59.830, 59.991 and 59.995, and the marketing of such policy is likewise exempt.

731.050 [Repealed by 1965 c.241 §3]

DEFINITIONS GENERALLY

731.052 Insurance Code definitions

Except where the context otherwise requires, the definitions given in the Insurance Code govern its construction.

731.056 “Action.”

“Action” means any action, suit or legal proceeding.

731.060 [Repealed by 1965 c.241 §3]

731.062 [1967 c.359 §13; 1991 c.810 §1; 2001 c.191 §20; 2003 c.364 §1; renumbered 731.104 in 2003]

731.066 “Authorized,” “unauthorized” insurer

An “authorized” insurer is one authorized by a subsisting certificate of authority to transact insurance in this state. An “unauthorized” insurer is one not so authorized.

731.069 “Certificate,” “certificate holder.”

“Certificate” means a written statement evidencing the coverage of a person insured under a group insurance policy. “Certificate holder” means an employee or member of a group insured under a group insurance policy.

731.070 [Repealed by 1965 c.241 §3]

731.072 “Certificate of authority,” “license.”

A “certificate of authority” is one issued by the Director of the Department of Consumer and Business Services pursuant to the Insurance Code evidencing the authority of an insurer to transact insurance in this state. A “license” is authority granted by the director pursuant to the Insurance Code for the licensee to engage in a business or operation of insu…

731.074 “Commercial liability insurance.”

“Commercial liability insurance” means insurance for a business, professional, nonprofit or governmental entity against legal, contractual or assumed liability for death, injury or disability of any human, or for damage to property, arising out of acts or omissions in the course of the conduct of the entity. “Commercial liability insurance” does not include…

731.075 “Covered life.”

“Covered life” means a subscriber, policyholder, certificate holder, spouse, dependent child or any other individual insured under an insurance policy or whose benefits are administered by a third party administrator licensed under ORS 744.702. Note: 731.075 was added to and made a part of the Insurance Code by legislative action but was not added to ORS ch…

731.076 “Department,” “director.”

“Department” means the Department of Consumer and Business Services. “Director” means the Director of the Department of Consumer and Business Services.

731.080 [Repealed by 1965 c.241 §3]

731.082 “Domestic,” “foreign,” “alien” insurer

“Domestic insurer” means an insurer formed under the laws of this state. “Foreign insurer” means an insurer formed under the laws of a state other than this state. “Alien insurer” means an insurer formed under the laws of any country other than the United States of America or a state thereof.

731.086 “Domestic risk.”

“Domestic risk” means a subject of insurance resident, located or to be performed in this state.

731.090 [Repealed by 1965 c.241 §3]

731.092 “Domicile.”

The “domicile” of an insurer means: As to insurers formed under the laws of Canada or any province thereof, the province in which the insurer’s head office is located. As to other alien insurers, as provided in ORS 731.096. As to all other insurers, the state under the laws of which the insurer was formed or, if the insurer has been redomesticated to anot…

731.096 “Domicile of alien insurer.”

The domicile of an alien insurer, other than insurers formed under the laws of Canada or a province thereof, shall be that state designated by the insurer in writing filed with the Director of the Department of Consumer and Business Services at time of admission to this state or before January 1, 1962, whichever date is the later, and may be any one of the f…

731.097 “Essential health benefits.”

“Essential health benefits” are the items and services prescribed by the Department of Consumer and Business Services by rule in accordance with federal law, including: Ambulatory patient services. Emergency services. Hospitalization. Maternity and newborn care. Mental health and substance use disorder services, including behavioral health treatment. P…

731.098 “Group health insurance.”

“Group health insurance” means that form of health insurance covering groups of persons described in this section, with or without one or more members of their families or one or more of their dependents, or covering one or more members of the families or one or more dependents of such groups of persons, and issued upon one of the following bases: Under a p…

731.099 “Independently procured insurance.”

“Independently procured insurance” means insurance procured directly by an insured from a nonadmitted insurer as defined in ORS 735.405. Note: 731.099 was added to and made a part of ORS chapter 731 by legislative action but was not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.

731.100 [Repealed by 1965 c.241 §3]

731.102 “Insurance.”

“Insurance” means a contract whereby one undertakes to indemnify another or pay or allow a specified or ascertainable amount or benefit upon determinable risk contingencies. “Insurance” so defined includes annuities. “Insurance” so defined includes a contract under which one other than a manufacturer, builder, seller or lessor of the subject property under…

731.104 “Insurance producer.”

“Insurance producer” means a person required to be licensed under the laws of this state to sell, solicit or negotiate insurance. For purposes of this definition: “Negotiate” means to confer directly with or to offer advice directly to a purchaser or prospective purchaser of a particular policy of insurance concerning any of the substantive benefits, terms …

731.106 “Insurer.”

“Insurer” includes every person engaged in the business of entering into policies of insurance.

731.110 [Repealed by 1965 c.241 §3]

731.112 “Judgment.”

“Judgment” includes a final order.

731.114 “Limited benefit coverage.”

“Limited benefit coverage” means: Health insurance that provides: Coverage for accident only, specific disease or condition only, credit or disability income; Dental only coverage; or Vision only coverage; and Independent, noncoordinated, hospital-only indemnity insurance or other fixed indemnity insurance. Note: 731.114 was added to and made a part of…

731.116 “Person.”

“Person” means an individual or a business entity. For the purpose of this definition, “business entity” means a corporation, association, partnership, limited liability company, limited liability partnership or other legal entity.

731.120 [Repealed by 1965 c.241 §3]

731.122 “Policy.”

“Policy” means the written contract or written agreement for or effecting insurance, by whatever name called, and includes all clauses, riders, indorsements and papers which are a part thereof and annuities.

731.126 “Reinsurance.”

“Reinsurance” means a contract under which an originating insurer, called the “ceding” insurer, procures insurance for itself in another insurer, called the “assuming” insurer or the “reinsurer,” with respect to part or all of an insurance risk of the originating insurer.

731.130 [Repealed by 1965 c.241 §3]

731.132 “Required capitalization.”

“Required capitalization” means the minimum combined paid-up capital and surplus required by the Insurance Code of a stock insurer, or the minimum surplus so required of an insurer without capital stock.

731.136 “State.”

When used in context signifying a jurisdiction other than the State of Oregon, “state” means any state, district, territory, commonwealth or possession of the United States of America.

731.140 [Repealed by 1965 c.241 §3]

731.142 “Stock,” “mutual” and “reciprocal” insurer

“Stock insurer” means an incorporated insurer whose capital is divided into shares and owned by its stockholders. “Mutual insurer” means an incorporated insurer without capital stock and the governing body of which is elected by its policyholders. This definition does not exclude as a “mutual insurer” a foreign insurer found by the Director of the Departmen…

731.144 “Surplus lines insurance.”

“Surplus lines insurance” means any insurance on an Oregon home state risk, permitted to be placed through a surplus lines licensee with a nonadmitted insurer eligible to accept such insurance, other than reinsurance, wet marine and transportation insurance, independently procured insurance, life insurance and health insurance and annuities. For purposes of …

731.146 “Transact insurance.”

“Transact insurance” means one or more of the following acts effected by mail or otherwise: Making or proposing to make an insurance contract. Taking or receiving any application for insurance. Receiving or collecting any premium, commission, membership fee, assessment, due or other consideration for any insurance or any part thereof. Issuing or deliveri…

731.150 Definitions of classes of insurance not mutually exclusive

It is intended that certain insurance coverages may come within the definitions of two or more classes of insurance as defined in the Insurance Code, and the inclusion of such coverage within one definition shall not exclude it as to any other class of insurance within the definition of which such coverage is likewise reasonably includable.

731.154 “Annuity.”

“Annuity” or “annuity policy” means any agreement to make periodic payments, whether fixed or variable in amount, where the making of all or some of such payments, or the amount of any such payment, is dependent upon the continuance of human life, except payments made pursuant to the settlement provisions of a life insurance policy, and includes additional b…

731.156 “Variable life insurance”; “variable annuity.”

“Variable life insurance” and “variable annuity” mean forms of life insurance or annuity benefits, respectively, that vary according to the investment experience of a separate account or accounts maintained by the insurer with respect to policies providing such benefits or are securities under the Securities Act of 1933, 15 U.S.C. 77a et seq., as in effect o…

731.158 “Casualty insurance.”

“Casualty insurance” means: Insurance against legal, contractual or assumed liability for death, injury or disability of any human, or for damage to property; and provision for medical, hospital, surgical and disability benefits to injured persons including insurance against the risk of economic loss assumed under a less than fully insured employee health b…

731.162 “Health insurance.”

“Health insurance” means insurance of humans against bodily injury, disablement or death by accident or accidental means, or the expense thereof, or against disablement or expense resulting from sickness or childbirth, or against expense incurred in prevention of sickness, in dental care or optometrical service, and every insurance appertaining thereto, incl…

731.164 “Home protection insurance,” “home protection insurer.”

“Home protection insurance” means that part of casualty insurance that includes only insurance which undertakes to perform or provide repair or replacement service or indemnification therefor for the operational or structural failure of the insured home, components of the home or personal property relating to the home or its components, and does not include …

731.166 “Industrial life insurance.”

“Industrial life insurance” means that form of life insurance written under policies of face amount of $2,500 or less, under which premiums are payable monthly or more often and the policy specifies it is an industrial life insurance policy.

731.170 “Life insurance”; includes annuities

“Life insurance” means insurance on human lives and every insurance appertaining thereto and includes the granting of endowment benefits, additional benefits in event of death or dismemberment by accident or accidental means, additional benefits in event of the insured’s or premium payer’s disability and optional modes of settlement of proceeds of life insur…

731.174 “Marine and transportation insurance.”

“Marine and transportation insurance” includes: Insurance against any and all kinds of loss of or damage to: Vessels, craft, aircraft, cars, automobiles and vehicles of every kind, as well as all goods, freights, cargoes, merchandise, effects, disbursements, profits, moneys, bullion, precious stones, securities, choses in action, evidences of debt, valuabl…

731.178 “Mortgage insurance.”

“Mortgage insurance” means insurance against financial loss by reason of: Nonpayment of principal, interest and other sums agreed to be paid under the terms of an obligation secured by a mortgage, deed of trust or other instrument constituting a lien or charge on real or personal property; or Nonpayment of rent and other sums agreed to be paid under the te…

731.182 “Property insurance.”

“Property insurance” means insurance on real or personal property of every kind and of every interest therein, whether on land, water or in the air, against loss or damage from any and all hazard or cause, and against consequential loss from such loss or damage, other than noncontractual legal liability for loss or damage. “Property insurance” does not inclu…

731.186 “Surety insurance.”

“Surety insurance” means insurance guaranteeing the fidelity of persons holding places of trust, the performance of duties, contracts, bonds and undertakings, including the signing thereof as surety, and insuring the performance of obligations of employers under workers’ compensation laws by surety bond.

731.190 “Title insurance.”

“Title insurance” means insurance of owners of property or others having an interest therein or liens or encumbrances thereon, against loss by encumbrance, defective titles, invalidity or adverse claim to title.

731.194 “Wet marine and transportation insurance.”

“Wet marine and transportation insurance” is that part of marine and transportation insurance that includes only: Insurance upon vessels, crafts, hulls and of interests therein or with relation thereto; Insurance of marine builder’s risks, marine war risks and contracts referred to in ORS 731.174 (2) or any replacement thereof; Insurance of freights and d…

731.204 [Formerly 736.495; repealed by 1987 c.373 §85]

731.208 [Formerly 736.500; repealed by 1987 c.373 §85]

731.212 [1967 c.359 §46; repealed by 1987 c.373 §85]

INSURANCE ADMINISTRATION

731.216 Administrative power of director

The Director of the Department of Consumer and Business Services shall have the power to: Contract for and procure, on a fee or part-time basis, or both, such actuarial, technical or other professional services as may be required for the discharge of duties. Obtain such other services as the director considers necessary or desirable, including participatio…

731.220 [Formerly 736.507; repealed by 1987 c.373 §85]

731.224 [1967 c.359 §49; repealed by 1987 c.373 §85]

731.228 Prohibited interests and rewards

No officer or employee of the Department of Consumer and Business Services delegated responsibilities in the enforcement of the Insurance Code shall: Be a director, officer, or employee of or be financially interested in any person regulated by the department or office of the department that is delegated responsibility in the enforcement of the Insurance Co…

731.232 Subpoena power

For the purpose of an investigation or proceeding under the Insurance Code, the Director of the Department of Consumer and Business Services may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence and require the production of books, papers, correspondence, memoranda, agreements or other documents or records which th…

731.236 General powers and duties

The Director of the Department of Consumer and Business Services shall enforce the provisions of the Insurance Code for the public good, and shall execute the duties imposed by the code. The director has the powers and authority expressly conferred by or reasonably implied from the provisions of the Insurance Code. The director may conduct such examination…

731.240 Hearings in general

The Director of the Department of Consumer and Business Services shall hold a hearing upon written demand for a hearing by a person aggrieved by any act, threatened act or failure of the director to act. The demand must state the grounds therefor. To the extent applicable and not inconsistent with subsection (1) of this section, the provisions of ORS chapte…

731.244 Rules

In accordance with the applicable provisions of ORS chapter 183, the Director of the Department of Consumer and Business Services may make reasonable rules necessary for or as an aid to the effectuation of the Insurance Code. No such rule shall extend, modify or conflict with the Insurance Code or the reasonable implications thereof.

731.248 Orders

Orders of the Director of the Department of Consumer and Business Services shall be effective only when in writing and signed by the director or by the authority of the director. Orders shall be filed in the Department of Consumer and Business Services. Every such order shall state: Its effective date; Its intent or purpose; The grounds on which based; a…

731.252 Cease and desist orders

Whenever the Director of the Department of Consumer and Business Services has reason to believe that any person has been engaged or is engaging or is about to engage in any violation of the Insurance Code, the director may issue an order, directed to such person, to discontinue or desist from such violation or threatened violation. The copy of the order forw…

731.256 Enforcement generally; restitution

The Director of the Department of Consumer and Business Services may institute actions or other lawful proceedings that the director deems necessary to enforce a provision of the Insurance Code or any order or action the director makes or takes in pursuance of law. As part of or in addition to any action or proceeding the director institutes against an insu…

731.258 Enforcement of orders and decisions by Attorney General; filing, enforcement and effect of foreign decrees

The Attorney General upon request of the Director of the Department of Consumer and Business Services may proceed in the courts of this state or any reciprocal state to enforce an order or decision in any court proceeding or in any administrative proceeding before the director. As used in this section: “Reciprocal state” means any state the laws of which c…

731.259 Requirement for written notice to insured; rules

The Department of Consumer and Business Services may require an insurer to provide a written notice to an insured to fully effectuate any law the department is responsible for enforcing, including, but not limited to, laws regarding: Enrollment periods. The termination of coverage. The availability of coverage outside of an open enrollment period. The ri…

731.260 False or misleading filings

No person shall file or cause to be filed with the Director of the Department of Consumer and Business Services any article, certificate, report, statement, application or any other information required or permitted to be so filed under the Insurance Code and known to such person to be false or misleading in any material respect.

731.264 Complaints and investigations confidential; permitted disclosures; rules

A complaint made to the Director of the Department of Consumer and Business Services against any person regulated by the Insurance Code, and the record of the complaint, is confidential and may not be disclosed except as provided in ORS 705.137. The complaint, and the record of the complaint, may not be used in any action, suit or proceeding except to the ex…

731.268 Use of reproductions and certified copies as evidence; fee

Photographs or microphotographs in the form of film or prints of documents and records made by the Director of the Department of Consumer and Business Services for the files of the director shall have the same force and effect as the originals thereof, and duly certified or authenticated reproductions of such photographs or microphotographs shall be as admis…

731.272 Director’s annual reports; notice of publication of report

The Director of the Department of Consumer and Business Services shall prepare annually, as soon after March 1 as is consistent with full and accurate preparation, a report of the official transactions of the director under the Insurance Code. The report shall include: In condensed form statements made to the director by every insurer authorized to do busin…

731.276 Recommendations for changes in Insurance Code

The Director of the Department of Consumer and Business Services shall continuously review the Insurance Code and shall work with the Director of the Oregon Health Authority to review the health insurance provisions of the Insurance Code and may, from time to time, make recommendations for changes therein.

731.280 Publications authorized

The Director of the Department of Consumer and Business Services shall publish: Pamphlet or booklet copies of the insurance laws of this state; The director’s annual report; Such copies of results of investigations or examinations of insurers for public distribution as the director considers to be in the public interest; Such compilations as the director…

731.282 Authority to sell publications

The Director of the Department of Consumer and Business Services may sell, at a price reasonably calculated to cover the costs of preparation, any of the copies, compilations or materials described in ORS 731.280.

731.284 Distribution of insurance laws

Copies of the insurance laws in pamphlet form may be sold by the Director of the Department of Consumer and Business Services at a reasonable price. The director may distribute free of charge one copy of such pamphlet to each of the following: Authorized insurers and licensed rating organizations; Insurance departments of other states; and Public agencies…

731.288 Recording complaints; director to consider complaints before issuing licenses

The Department of Consumer and Business Services shall record each complaint the department receives, including the subsequent disposition of the complaint. The record of a complaint shall be maintained for a period of not less than seven years. The records of complaints shall be indexed whenever applicable both by the name of the insurer and by the name of …

731.292 Disposition of fees, charges, taxes, penalties and other moneys

Except as provided in subsections (2), (3) and (4) of this section, all fees, charges and other moneys received by the Department of Consumer and Business Services or the Director of the Department of Consumer and Business Services under the Insurance Code shall be deposited in the fund created by ORS 705.145 and are continuously appropriated to the departme…

731.296 Director’s inquiries

The Director of the Department of Consumer and Business Services may address any proper inquiries to any insurer, licensee or its officers in relation to its activities or condition or any other matter connected with its transactions. Any such person so addressed shall promptly and truthfully reply to such inquiries using the form of communication requested …

731.300 Examination of insurers; when required

The Director of the Department of Consumer and Business Services shall examine every authorized insurer, including an audit of the financial affairs of such insurer, as often as the director determines an examination to be necessary but at least once each five years. An examination shall be conducted for the purpose of determining the financial condition of …

731.302 Appointment of examiners; retaining of appraisers, actuaries and others; evidentiary status of facts and conclusions

When the Director of the Department of Consumer and Business Services determines that an examination should be conducted, the director shall appoint one or more examiners to perform the examination and instruct them as to the scope of the examination. In conducting the examination, each examiner shall consider the guidelines and procedures in the examiner ha…

731.304 Investigation of persons transacting insurance

The Director of the Department of Consumer and Business Services, whenever the director deems it advisable in the interest of policyholders or for the public good, shall investigate into the affairs of any person engaged in, proposing to engage in or claiming or advertising to engage in: Transacting insurance in this state; Organizing or receiving subscrip…

731.308 Procedure at examination or investigation; production of books and other records

Upon an examination or investigation the Director of the Department of Consumer and Business Services may examine under oath all persons who may have material information regarding the property or business of the person being examined or investigated. Every person being examined or investigated shall produce all books, records, accounts, papers, documents a…

731.312 Report of examination; review by person examined; hearing; confidentiality of certain information and documents; permitted disclosures

Not later than the 60th day after completion of an examination, the examiner in charge of the examination shall submit to the Director of the Department of Consumer and Business Services a full and true report of the examination, verified by the oath of the examiner. The report shall comprise only facts appearing upon the books, papers, records, accounts, do…

731.314 Immunity for director, examiner and others

No cause of action may arise and no liability may be imposed against the Director of the Department of Consumer and Business Services, an authorized representative of the director or any examiner appointed by the director for any statements made or conduct performed in good faith pursuant to an examination or investigation. No cause of action may arise and …

731.316 Expenses of examination of insurer

Any person examined under ORS 731.300 shall pay to the Director of the Department of Consumer and Business Services the just and legitimate costs of the examination as determined by the director, including actual necessary transportation and traveling expenses.

731.324 Service of process on Secretary of State; notice to unauthorized insurer

Any act set forth in ORS 731.146 by an unauthorized insurer is equivalent to and shall constitute an irrevocable appointment by such insurer, binding upon the insurer, the executor of the insurer or administrator, or successor in interest if a corporation, of the Secretary of State or the successor in office, to be the true and lawful attorney of such insure…

731.328 Deposits by unauthorized insurers in actions or proceedings

Before an unauthorized insurer files or causes to be filed any pleading in any court action or any notice, order, pleading, or process in an administrative proceeding before the Director of the Department of Consumer and Business Services instituted against such person or insurer, by services made as provided in ORS 731.324, such insurer shall deposit with t…

731.354 Certificate of authority required

No person shall act as an insurer and no insurer shall directly or indirectly transact insurance in this state except as authorized by a subsisting certificate of authority issued to the insurer by the Director of the Department of Consumer and Business Services.

731.356 Unauthorized insurance transaction enforcement

When the Director of the Department of Consumer and Business Services believes, from evidence satisfactory to the director, that any insurer is violating or about to violate the provisions of ORS 731.354, the director may cause a complaint to be filed in the Circuit Court of Marion County to enjoin and restrain such insurer from continuing such violation. Th…

731.358 Requirements of domestic insurers generally

Upon application a domestic insurer shall be granted a certificate of authority to transact any class of insurance permitted by the Insurance Code and provided for in its articles of incorporation upon its compliance with all the laws of this state and the rules of the Department of Consumer and Business Services relating to such insurers.

731.362 Requirements of foreign or alien insurers generally

A foreign or alien insurer may be authorized to transact insurance in this state when it has complied with the following requirements: It shall file with the Director of the Department of Consumer and Business Services a certified copy of its charter, articles of incorporation or deed of settlement and a statement of its financial condition and business in …

731.363 Authorized foreign insurer becoming domestic insurer

An authorized foreign insurer may become a domestic insurer: By complying with all of the requirements of law relating to the organization and authorization of a domestic insurer of the same type; By filing articles of incorporation that are amended to comply with all of the requirements of law relating to the organization and authorization of a domestic i…

731.364 Domestic insurer transferring domicile to another state

A domestic insurer, upon the approval of the Director of the Department of Consumer and Business Services, may transfer its domicile to any other state in which it is admitted to transact the business of insurance. Upon such a transfer the insurer ceases to be a domestic insurer and may be authorized in this state if qualified as a foreign insurer. The direc…

731.365 Effect of transfer of domicile by domestic or foreign insurer; notice to director by transferring insurer

The certificate of authority, insurance producer appointments and licenses, rates and other items allowed by the Director of the Department of Consumer and Business Services pursuant to the discretion of the director that are in existence at the time an authorized insurer transfers its domicile to this or any other state as provided in ORS 731.363 or 731.367…

731.366 [Formerly 749.040; 1971 c.231 §42; 1977 c.651 §1; 1993 c.709 §4; renumbered 731.369 in 1995]

731.367 Transfer of domicile by unincorporated authorized foreign insurer

An unincorporated authorized foreign insurer transfers its domicile to this state when the Director of the Department of Consumer and Business Services determines that it has complied with all of the requirements of law relating to the organization and authorization of a domestic insurer of the same type as provided in ORS 731.363. No merger, consolidation o…

731.369 Requirements of reciprocal insurers generally

A reciprocal insurer, through its attorney, shall file with the Director of the Department of Consumer and Business Services a declaration, verified by the oath of such attorney, setting forth: The name or title of the reciprocal insurer. The location of the principal office of the reciprocal insurer. The class or classes of insurance to be effected or ex…

731.370 Reciprocal insurer’s financial statement; service of process

The application for a certificate of authority shall be accompanied by a sworn statement of a reciprocal insurer showing the financial condition of the insurer as of December 31 immediately preceding. The Director of the Department of Consumer and Business Services may require a supplemental statement to be furnished as of a later date. Concurrently with th…

731.371 Powers of reciprocal insurer regarding real estate

Except where inconsistent with other provisions of the Insurance Code, a reciprocal insurer in its own name, as in the case of an individual, may purchase, receive, own, hold, lease, mortgage, pledge or encumber by deed of trust or otherwise, manage and sell real estate for the purposes and objects of the insurer including, but not limited to, investment for…

731.374 Exemptions to certificate of authority requirement

A certificate of authority is not required of an insurer with respect to the following: Transactions pursuant to surplus lines coverages lawfully written under the Insurance Code. Reinsurance, when transacted by an insurer duly authorized by the insurer’s state of domicile to transact the class of insurance involved. Wet marine and transportation insuranc…

731.378 Foreign and alien insurers exempt from laws governing admission of foreign and alien corporations

No foreign or alien insurer that has complied with the requirements of the Insurance Code shall be subject to any other provisions of the laws of this state relating to admission or licensing of foreign or alien corporations.

731.380 Authority of foreign and alien insurers to take, acquire, hold and enforce notes secured by mortgages; statement; fees

Subject to subsection (2) of this section, any foreign or alien insurer, without being authorized to transact business in this state, may take, acquire, hold and enforce notes secured by real estate mortgages or trust deeds and make commitments to purchase such notes. A foreign or alien insurer may foreclose the mortgages and trust deeds in the courts of thi…

731.381 Exemption from taxes for foreign and alien insurers engaging in activities authorized by ORS 731.380

Engaging in the activities authorized by ORS 731.380 by a foreign or alien insurer shall not subject the foreign or alien insurer to any tax, license fee or charge, except as provided in ORS 731.380, for the privilege of doing business within the State of Oregon or to any tax measured by net or gross income. However, if the foreign or alien insurer acquires …

731.382 General eligibility for certificate of authority

To qualify for and hold authority to transact insurance in this state an insurer must be an incorporated insurer, or a reciprocal insurer or an incorporated fraternal benefit society.

731.385 Standards for determining whether continued operation of insurer is hazardous; rules; order; hearing

The Director of the Department of Consumer and Business Services shall establish standards by rule for determining whether the continued operation of an authorized insurer may be hazardous to the policyholders or to the insurance-buying public generally, for the purpose of carrying out ORS chapter 734 and other provisions of the Insurance Code that authorize…

731.386 Management of insurers

The Director of the Department of Consumer and Business Services shall not grant or continue authority to transact insurance in this state for any insurer: The management of which is found by the director to be untrustworthy or so lacking in insurance experience as to make the proposed operation or the continued operation hazardous to the insurance-buying p…

731.390 Government insurers not to be authorized

No certificate of authority may be issued to any state, province or foreign government nor to any instrumentality, political subdivision or agency thereof.

731.394 Combinations of insuring powers in one insurer

An insurer that otherwise qualifies therefor may be authorized to transact any one class or combination of classes of insurance, except: A reciprocal insurer shall not transact life insurance or title insurance. A title insurer shall be a stock insurer, and shall not transact any other class of insurance. A mortgage insurer shall be a stock insurer, and s…

731.396 Certificate of authority and good financial condition required to issue variable life insurance or variable annuity policies

No domestic, foreign or alien insurer shall deliver or issue for delivery in this state variable life insurance or variable annuity policies unless the insurer is authorized to transact life insurance in this state and the Director of the Department of Consumer and Business Services is satisfied that its condition and method of operation in connection with t…

731.398 Amendment of certificate of authority

The Director of the Department of Consumer and Business Services at any time may amend an insurer’s certificate of authority to accord with lawful changes in the insurer’s charter or insuring powers.

731.402 Issuance or refusal of certificate of authority

The Director of the Department of Consumer and Business Services shall issue to an insurer a certificate of authority if upon completion of the application for a certificate of authority by the insurer the director finds, from the application and such other investigation and information the director may acquire, that the insurer is fully qualified and entitl…

731.406 What certificate evidences; ownership of certificate

An insurer’s subsisting certificate of authority is evidence of its authority to transact in this state the class or classes of insurance specified therein, either as direct insurer or as reinsurer or as both. Although issued to the insurer the certificate of authority is at all times the property of this state. Upon any suspension, revocation or terminatio…

731.410 Continuance, expiration or reinstatement of certificate of authority

A certificate of authority shall continue in force as long as the insurer is entitled thereto under the Insurance Code and until suspended or revoked by the Director of the Department of Consumer and Business Services, or terminated at the request of the insurer; subject, however, to continuance of the certificate by the insurer each year by: Payment prior …

731.414 Suspension or revocation of certificate of authority; mandatory grounds

The Director of the Department of Consumer and Business Services shall refuse to continue, or shall suspend or revoke, an insurer’s certificate of authority if: As a foreign insurer, it no longer meets the requirements for the authority; or as a domestic insurer, it has failed to cure an impairment of required capitalization within the time allowed therefor…

731.418 Grounds for suspension or revocation of certificate of authority

The Director of the Department of Consumer and Business Services may refuse to continue or may suspend or revoke an insurer’s certificate of authority if the director finds after a hearing that: The insurer has violated or failed to comply with any lawful order of the director, or any provision of the Insurance Code other than those for which suspension or …

731.422 Order of suspension, revocation or refusal; effect upon insurance producers’ authority

All suspensions or revocations of, or refusals to continue, an insurer’s certificate of authority shall be by order of the Director of the Department of Consumer and Business Services order. Upon suspending, revoking or refusing to continue the insurer’s certificate of authority, the director forthwith shall give notice thereof to the insurer’s insurance pr…

731.426 Duration of suspension; insurer’s obligations during suspension period; reinstatement

In an order suspending the certificate of authority of an insurer, the Director of the Department of Consumer and Business Services may provide that the suspension expires at the end of a specified period or when the director determines that the cause or causes of the suspension have terminated. During the suspension the director may rescind or shorten the s…

731.428 Written consent to engage or participate in business of insurance; rules

A person who is prohibited by 18 U.S.C. 1033 from engaging or participating in the business of insurance because of a conviction of a felony involving dishonesty or a breach of trust or conviction of a crime under 18 U.S.C. 1033 may apply to the Director of the Department of Consumer and Business Services for a written consent to engage or participate in the…

731.430 Name of insurer

No insurer shall be formed or authorized to transact insurance in this state which has or will have, or which uses or will use as an assumed business name, a name or principal identifying name factor: That is the same as or deceptively similar to: Any other insurer so formed or authorized; Any name reserved or registered as authorized by this section; An…

731.434 Registered office and agent

The provisions, procedures and requirements of ORS chapter 60 relating to a registered office, registered agent and to service of process, notice and demand shall govern all insurers transacting insurance in this state, whether authorized or unauthorized, except that the Director of the Department of Consumer and Business Services shall be substituted for th…

731.438 Title plant requirement for title insurers; posting of indexes; plant ownership and maintenance

A title insurer, in order to receive and maintain a certificate of authority, shall own and maintain at all times a title plant covering a period of at least the immediately preceding 50 years except years before 1960 and consisting of a general index, adequate maps and currently posted tract or geographic indexes for all the lands in the county in which tit…

731.439 Satisfaction of requirements of ORS 731.438 (1) by certain title plants

A title plant that conforms on December 31, 1999, with ORS 731.438 (1) and (2) (1997 Edition) satisfies the requirements of ORS 731.438 (1) as amended by section 1, chapter 183, Oregon Laws 1999, if it also contains after that date a general index, adequate maps and currently posted tract or geographic indexes for all lands in the county.

731.442 Prohibition on transacting life insurance business on mutual assessment plan

An insurer may not transact a life insurance business upon a mutual assessment plan within this state.

731.446 Policyholder deposits

An insurer may accept, from a holder of a life insurance policy, deposits in addition to current premium payments to provide a fund for payment of future premiums or to make possible the future acquisition of additional insurance, annuities or other benefits, whether the interest to be paid on such deposits be fixed or variable. Such deposits, or any portion…

731.450 Unrelated business prohibited; exceptions; title insurer as escrow agent

Except as authorized by the federal Gramm-Leach-Bliley Act (P.L. 106-102), an insurer may not engage in any business except the making of insurance or a kind of business related to the insurance business. However, a foreign or alien insurer may engage, outside this state, in any business permitted by its articles of incorporation and the laws of the state of…

731.454 Domestic insurers not to transact business in jurisdiction where not authorized

No domestic insurer, or any of the representatives thereof, shall transact insurance in any jurisdiction in which such insurer is not authorized in accordance with the laws of such jurisdiction.

731.458 Exchange of reciprocal or interinsurance contracts

Individuals, partnerships and corporations of this state, hereby designated as subscribers, may exchange reciprocal or interinsurance contracts with each other, or with individuals, partnerships and corporations of other states and countries, providing indemnity among themselves from any loss which may be insured against under the Insurance Code, except life…

731.462 Nonassessable policies of reciprocal insurer

A reciprocal insurer having a surplus of not less than $500,000 may issue nonassessable policies.

731.466 Power of attorney for reciprocal insurer

The rights and power of the attorney of a reciprocal insurer shall be as provided in the power of attorney given it by the subscribers. The power of attorney must set forth: The powers of the attorney. That the attorney may accept service of process on behalf of the insurer. The services to be performed by the attorney in general. The maximum amount to …

731.470 Attorney for reciprocal insurer

Any instrument required to be verified by the oath of the attorney for a reciprocal insurer may, in case of an incorporated attorney, be verified by the oath of the president, vice president, secretary or other executive officer of such corporation. The certificate of authority of a reciprocal insurer shall be issued to its attorney in the name of the insur…

731.475 Claims processing by workers’ compensation insurer; permission for remote claims processing; availability and disposition of claims records; auditing and examinations by director; rules

Every insurer authorized to issue workers’ compensation coverage to subject employers as required by ORS chapter 656 shall maintain a place of business in this state where the insurer shall: Process claims and make available complete records of claims for compensation made to the insurer under ORS chapter 656. Make available upon request complete records, …

731.480 Workers’ compensation policies; conditions for issuing

An insurer shall not issue workers’ compensation insurance policies pursuant to ORS chapter 656 unless it furnishes occupational safety and health loss control consultative services to its insured employers consistent with the requirements of ORS 654.097.

731.482 Withdrawal from, failure to renew or cancellation of line by commercial liability insurer

Except as provided in subsection (5) of this section, an insurance company selling commercial liability insurance and authorized to do business in Oregon may not withdraw from, fail to renew or cancel any line of insurance or class of business without supplying appropriate written justification to the Director of the Department of Consumer and Business Servi…

731.484 Prohibition on certain sales related to group health and group life insurance

No insurer or insurance producer selling a policy of group life insurance or group health insurance subject to the exemption in ORS 731.146 (2)(b) is authorized to sell membership in a group for the purpose of qualifying an applicant who is an individual for the insurance. No insurer or insurance producer selling membership in a group is authorized to offer…

731.485 Conditions under which insurer may limit insured’s choice of drug outlets and pharmacies

An insurer may limit the drug outlets or pharmacists from which a person covered under a health insurance policy issued by the insurer is authorized by the insurer to obtain services only if the insurer first provides an opportunity to drug outlets and pharmacists to offer to participate as a provider of services as provided in this section. An insurer to wh…

731.486 Exemption from definition of “transact insurance” for group health and life policies; master group health and life insurance coverage; rules

The exemption in ORS 731.146 (2)(b) does not apply to an insurer that offers coverage under a group health insurance policy or a group life insurance policy in this state unless the Director of the Department of Consumer and Business Services determines that the exemption applies. The insurer shall submit evidence to the director that the exemption applies.…

731.488 Annual audit of insurer; rules

Each insurer shall have an annual audit conducted by an independent certified public accountant and shall file an audited financial report annually with the Director of the Department of Consumer and Business Services. The annual audited financial report shall disclose: The financial position of the insurer as of the end of the most recent calendar year; an…

731.490 [1987 c.774 §52; repealed by 1997 c.131 §1]

731.492 Required notification to claimant upon insurer’s payment to settle third-party liability claim; required contents of notification

An insurer shall notify a claimant in writing at the time the insurer pays $5,000 or more to settle a third-party liability claim if: The claimant is a natural person; The insurer or an agent or other representative of the insurer, including the insurer’s attorney, delivers the payment to the claimant or to the claimant’s attorney, agent or other represent…

731.493 [1987 c.774 §53; repealed by 1997 c.131 §1]

731.496 [1987 c.774 §54; repealed by 1997 c.131 §1]

731.498 [1987 c.774 §58; repealed by 1997 c.131 §1]

731.500 [1987 c.774 §59; repealed by 1997 c.131 §1]

LIMIT OF RISK; REINSURANCE

731.504 Limit of risk

No insurer shall retain any risk on any one subject of insurance, whether a domestic risk or not, in an amount exceeding 10 percent of its surplus to policyholders, or in the case of title insurance, more than 50 percent of such surplus, except that an insurance company, including a reciprocal insurance company, comprised solely of 1,000 or more licensed Ore…

731.508 Approved reinsurance

An insurer may accept reinsurance only of such risks, and retain risk thereon within such limits, as it is otherwise authorized to insure. Except as provided in ORS 731.512, 732.517 to 732.546 or 742.150 to 742.162, an insurer may reinsure risks with an insurer authorized to transact such insurance in this state, or in any other solvent insurer approved or …

731.509 Legislative intent; criteria for allowing credit for reinsurance; rules

The purpose of ORS 731.509, 731.510, 731.511, 731.512 and 731.516 is to protect the interests of insureds, claimants, ceding insurers, assuming insurers and the public generally. The Legislative Assembly declares that the intent of the Legislative Assembly is to ensure adequate regulation of insurers and reinsurers and adequate protection for those to whom i…

731.510 Criteria for allowing reduction from liability for reinsurance; rules

Subject to the provisions of ORS 731.508 relating to allowance of credit for reinsurance, the Director of the Department of Consumer and Business Services shall allow a reduction from liability for the reinsurance a domestic insurer cedes to a reinsurer that does not meet the requirements of ORS 731.509 in an amount that does not exceed the liabilities the c…

731.511 Criteria to be met by assuming insurer in order to be accredited as reinsurer; rules

For purposes of allowing credit to a ceding domestic insurer under ORS 731.509 if the reinsurance is ceded to an assuming insurer that is accredited as a reinsurer in this state, an insurer may be accredited as a reinsurer in this state if the insurer: Files and maintains with the Director of the Department of Consumer and Business Services evidence of the …

731.512 Withdrawal of insurer; reinsurance

No insurer shall withdraw from this state until its direct liability to its policyholders and obligees under all its insurance policies then in force in this state has been assumed by another authorized insurer under an agreement approved by the Director of the Department of Consumer and Business Services. In the case of a life insurer, its liability pursuan…

731.514 Ceding insurer’s management of reinsurance recoverables; requirement to diversify reinsurance program

A ceding insurer shall manage the ceding insurer’s reinsurance recoverables in proportion to the ceding insurer’s book of business. A domestic ceding insurer shall notify the Director of the Department of Consumer and Business Services within 30 days after reinsurance recoverables from any single assuming insurer or group of affiliated assuming insurers exce…

731.516 Mortgage insurance limitation; waiver of limitation; rules; fees

As used in this section, “policyholders’ position” means the aggregate amount of mortgage insurance policies covering amounts of insured obligations, divided by the insurer’s surplus to policyholders as defined in ORS 731.504 (6). Except as provided in subsection (3) of this section, a mortgage insurer shall not have outstanding at any time a policyholders’…

731.520 Conditions that insurers assuming ceded reinsurance must meet for allowance of credit; list of reciprocal jurisdictions; list of qualifying assuming insurers; rules

Credit must be allowed if reinsurance is ceded to an assuming insurer that meets each of the conditions set forth below: The assuming insurer must be licensed in a reciprocal jurisdiction and have the assuming insurer’s home office in, or be domiciled in, as applicable, the reciprocal jurisdiction. For purposes of this paragraph, a reciprocal jurisdiction i…

731.554 Capital and surplus requirements

Except as provided in subsections (2) to (6) of this section and ORS 731.562 and 731.566, to qualify for authority to transact insurance in this state an insurer shall possess and thereafter maintain capital or surplus, or any combination thereof, of not less than $2.5 million. An insurer transacting any workers’ compensation insurance business shall posses…

731.558 [1967 c.359 §107; repealed by 1993 c.447 §122]

731.562 Title insurer capital and surplus requirements

To qualify for authority to transact title insurance in this state, an insurer shall possess and thereafter maintain capital or surplus, or any combination thereof, of not less than $2.5 million.

731.566 Reciprocal insurer surplus requirements

To qualify for authority to transact insurance in this state, a reciprocal insurer shall possess and thereafter maintain a surplus of not less than $2.5 million, and any reciprocal insurer that exchanges policies of insurance covering workers’ compensation insurance shall possess and thereafter maintain a surplus of not less than $5 million.

731.568 [1993 c.709 §2; repealed by 2001 c.318 §4]

731.570 Withdrawing advancements made to reciprocal insurer

No advancement made by the subscribers or the attorney of a reciprocal insurer shall be withdrawn or refunded except out of the surplus of the insurer in excess of its required capitalization, and then only upon the written consent of the Director of the Department of Consumer and Business Services.

731.574 Annual financial statement

Except as provided in subsection (4) of this section, every authorized insurer shall file with the Director of the Department of Consumer and Business Services, on or before March 1 of each year, a financial statement for the year ending December 31 immediately preceding. This statement shall be on a form prescribed by the director. The statement shall conta…

731.590 “Insurer” defined for ORS 731.592 and 731.594

As used in ORS 731.592 and 731.594, “insurer” includes, but is not limited to: An insurer, as defined in ORS 731.106. A health care service contractor, as defined in ORS 750.005, including, but not limited to, a health maintenance organization. A multiple employer welfare arrangement, as defined in ORS 750.301. A legal entity that is self-insured and pro…

731.592 Reporting criminal conduct involving insurance

Notwithstanding ORS 746.665, an insurer shall cooperate with any law enforcement agency or other state or federal agency that is investigating or prosecuting suspected criminal conduct involving insurance. The insurer shall provide any information requested by the agency unless the information is subject to a legal privilege that would prohibit disclosure. …

731.594 Immunity from civil liability

Unless it is shown that the person, including an insurer, acted with actual malice, a person who discloses or provides information under ORS 731.592 has immunity from any civil liability that might otherwise be incurred or imposed with respect to the disclosure or provision of the information. A person has the same immunity with respect to participating in a…

731.604 Acceptance of deposits of insurers

The following deposits of insurers shall be accepted and held by the Department of Consumer and Business Services for the purposes for which such deposits are made and are subject to the applicable provisions of the Insurance Code: Deposits required or permitted under the Insurance Code. Deposits of domestic insurers made pursuant to the laws of other juri…

731.608 Purpose of deposit

Except as provided in subsection (2) of this section, deposits made in this state under ORS 731.624 shall be held for the faithful performance by the insurer of all insurance obligations, including claims for unearned premiums, with respect to domestic risks pertaining to the particular class of insurance for which the deposit was made. However, there shall …

731.612 Rights of insurer regarding deposits

While the insurer remains unimpaired and is in compliance with the Insurance Code it may: Demand, receive, sue for and recover the income from the assets deposited; Exchange and substitute for the deposited assets, or any part thereof, other eligible assets of equivalent or greater value; and At any reasonable time inspect such deposit.

731.616 Valuation of deposits; deficiencies

For the purpose of determining the sufficiency of its deposit in this state the assets of the insurer on deposit shall be valued at current market value. If assets deposited by an insurer are subject to material fluctuations in market value, the Director of the Department of Consumer and Business Services, in the discretion of the director, may require the …

731.620 Assignment of deposited securities

The insurer shall assign in trust to the Director of the Department of Consumer and Business Services and successors in office all securities being deposited through the director under the Insurance Code that are not negotiable by delivery; or, in lieu of such assignment, the insurer may give the director an irrevocable power of attorney authorizing the dire…

731.624 Special deposits; foreign and alien insurers

Every insurer, before transacting insurance in this state, shall make the following deposits with the Department of Consumer and Business Services: Foreign or alien insurers transacting surety insurance in this state, $250,000. Foreign or alien insurers transacting title insurance in this state, $100,000. Foreign or alien insurers transacting home protect…

731.628 Deposit required of workers’ compensation insurers

In addition to any other requirement therefor under the Insurance Code, each insurer other than the State Accident Insurance Fund Corporation that issues workers’ compensation insurance policies to employers under ORS chapter 656 shall deposit with the Department of Consumer and Business Services an amount that is the greater of the following amounts: $100,…

731.632 Deposit required of domestic reciprocal insurers; exception

Every domestic reciprocal insurer shall deposit with the Department of Consumer and Business Services $50,000, except such an insurer which exchanges policies of insurance covering only wet marine hull insurance for persons whose earned income, in whole or in part, is derived from taking and selling food resources living in an ocean, bay or river.

731.636 Deposit or trusteed assets of alien insurer required

Except as provided in subsection (3) of this section, every alien insurer, before transacting insurance in this state as an authorized insurer, shall deposit with the Department of Consumer and Business Services the sum of the following amounts: The amount of its outstanding liabilities arising out of its insurance transactions in the United States; and It…

731.640 Eligible deposits; rules

Deposits which are required or permitted under the Insurance Code shall consist only of the following: Cash. Amply secured obligations of the United States, a state or a political subdivision thereof. Certificates of deposit or other investments described in ORS 733.650 (4). The Director of the Department of Consumer and Business Services may promulgate r…

731.642 Contracts for security deposits

The Director of the Department of Consumer and Business Services, in performing duties under ORS 731.604 to 731.652 and after consultation with the State Treasurer, may enter into contracts with banks qualified to act as trust companies and as depositories of state funds to hold and service securities deposited by insurers with the Department of Consumer and…

731.644 Payment of losses out of deposits, generally

Except as otherwise provided in the Insurance Code, no judgment creditor or other claimant of an insurer shall have the right to levy upon any of the assets or securities of the insurer held on deposit in this state. As to deposits made in this state pursuant to ORS 731.854, levy thereupon shall be permitted only if expressly so provided in the order of the…

731.648 Duration and release of deposit

Every deposit made in this state by an insurer pursuant to the Insurance Code shall be so held as long as there is outstanding any liability of the insurer as to which the deposit was required, except as follows: If the deposit was required under ORS 731.854, the deposit shall be held for so long as the basis of such retaliation exists. If the deposit was …

731.652 Proofs for release of deposit to insurers; director’s responsibility

Before releasing any deposit or portion thereof to the insurer, as provided in ORS 731.648, the Director of the Department of Consumer and Business Services shall require the insurer to file with the director a written statement in such form and with such verification as the director deems advisable setting forth the facts upon which it bases its entitlement…

731.704 [Formerly 128.820; 1971 c.425 §2; 1975 c.699 §1; 1983 c.740 §253; 1989 c.326 §1; 1989 c.413 §4; 1991 c.189 §1; 1991 c.190 §1; 1993 c.53 §1; 1997 c.735 §1; repealed by 2005 c.31 §4]

731.708 [Formerly 128.830; 1995 c.639 §2a; repealed by 2005 c.31 §4]

731.712 [1967 c.359 §127; 1971 c.425 §3; 1989 c.784 §15; repealed by 2005 c.31 §4]

731.716 [Formerly 128.850; 1971 c.425 §4; repealed by 2005 c.31 §4]

731.720 [Formerly 128.860; 1971 c.425 §5; 1993 c.377 §2; 1995 c.639 §2; 1997 c.131 §2; repealed by 2005 c.31 §4]

731.724 [Formerly 128.880; 1971 c.425 §6; repealed by 2005 c.31 §4]

EXCHANGE OF INFORMATION BY REGULATORS

731.730 Insurer filings with National Association of Insurance Commissioners

Every authorized insurer shall file with the National Association of Insurance Commissioners, on or before March 1 of each year, a copy of its annual statement blank, along with additional filings required by the Director of the Department of Consumer and Business Services for the preceding year. The information filed with the National Association of Insuran…

731.731 Immunity for certain persons dealing with information collected from filings under ORS 731.730

Except in the case of malfeasance in office or willful or wanton neglect of duty or authority, there shall be no liability on the part of, and no cause of action of any nature shall arise against, any of the following persons by virtue of their collection, review, analysis or dissemination of the data and information collected from the filings required by OR…

731.735 Certain information confidential

All financial analysis ratios and examination synopses concerning insurers that are submitted to the Director of the Department of Consumer and Business Services by the Insurance Regulatory Information System of the National Association of Insurance Commissioners are confidential as provided in ORS 705.137.

731.737 Immunity from liability for certain persons filing reports or furnishing information about specified activities to specified persons

A person or other entity described in this subsection acting without malice, fraudulent intent or bad faith is not subject to civil liability, and no cause of action of any nature may exist against such a person or entity, when the person is performing authorized functions, including publication or dissemination of information, regarding any activity describ…

731.740 [1995 c.638 §5a; repealed by 2001 c.377 §59]

CONFIDENTIALITY OF REPORTS

731.750 Confidentiality of report of material acquisitions or dispositions of assets, material nonrenewals, cancellations and revisions of ceded reinsurance agreements

A report filed with the Director of the Department of Consumer and Business Services according to requirements established by rule for disclosure of material acquisitions or dispositions of assets and disclosure of material nonrenewals, cancellations and revisions of ceded reinsurance agreements shall be confidential as provided in ORS 705.137. The director…

731.752 Confidentiality of report used for determination of required amount of capital or surplus; confidentiality of financial plan of action and report of examination connected with plan

A report filed with the Director of the Department of Consumer and Business Services according to requirements established by rule for the purpose of determining the amount of capital or surplus, or any combination thereof, that should be possessed and maintained by an insurer under ORS 731.554 or by a health care service contractor under ORS 750.045, or und…

731.754 Permissible uses of reports and plans described in ORS 731.752

The Director of the Department of Consumer and Business Services may use the following only for the purpose of monitoring the solvency of insurers and health care service contractors and the need for possible corrective action with respect to insurers and health care service contractors: Reports and financial plans of action that are made confidential under…

731.760 Definitions for ORS 731.760 to 731.770

As used in ORS 731.760 to 731.770: “Insurance compliance audit” means a voluntary internal evaluation, review, assessment, audit or investigation that is undertaken to identify or prevent noncompliance with, or promote compliance with, laws, regulations, orders or industry or professional standards, and that is conducted by or on behalf of an insurer regula…

731.761 Privileged information

Except as provided in ORS 731.760 to 731.770, an insurance compliance self-evaluative audit document is privileged information and is not discoverable, or admissible as evidence, in any civil, criminal or administrative proceeding. Except as provided in ORS 731.760 to 731.770, any person who performs or directs the performance of an insurance compliance aud…

731.762 Authority of director

ORS 731.761 does not limit the authority of the Director of the Department of Consumer and Business Services to acquire any insurance compliance self-evaluative audit document or to examine any person in connection with the document. If the director determines that the actions of an insurer are egregious, the director may introduce and use the document in an…

731.764 Waiver of privilege; permitted disclosures

The privilege set forth in ORS 731.761 does not apply to the extent that the privilege is expressly waived by the insurer that prepared or caused to be prepared the insurance compliance self-evaluative audit document. The privilege set forth in ORS 731.761 does not apply in any civil, criminal or administrative proceeding commenced by the Attorney General r…

731.766 Petition for in camera hearing; hearing; compelled disclosure

Within 30 days after a district attorney or the Attorney General serves on an insurer a written request by certified mail for disclosure of an insurance compliance self-evaluative audit document, the insurer that prepared or caused the document to be prepared may file in circuit court a petition requesting an in camera hearing on whether the insurance compli…

731.768 Privilege; exceptions

The privilege established under ORS 731.761 does not apply to any of the following: Documents, communications, data, reports or other information expressly required to be collected, developed, maintained or reported to a regulatory agency under the Insurance Code or other state or federal law; Information obtained by observation or monitoring by any regula…

731.770 Other privileges or limitations pertaining to audit document

Nothing in ORS 731.760 to 731.770, or in the release of any insurance compliance self-evaluative audit document under ORS 731.760 to 731.770, shall limit, waive or abrogate the scope or nature of any statutory or common law privilege or other limitation on admissibility of evidence including, but not limited to, the work product doctrine, the lawyer-client p…

731.804 Assessments; rules; fees; how determined

Except as otherwise provided in this section, each authorized insurer doing business in this state shall pay assessments that the Director of the Department of Consumer and Business Services determines are necessary to support the legislatively authorized budget of the Department of Consumer and Business Services with respect to functions of the department u…

731.808 “Gross amount of premiums” defined

As used in ORS 731.804, 731.812, 731.820, 731.830 and 731.834, “gross amount of premiums” means the consideration paid by insureds to an insurer for policies of insurance, and includes all premiums, assessments, dues and fees received or derived, or obligations taken therefor, by whatever term known.

731.812 Foreign and alien insurer’s report of Oregon business

Every foreign or alien insurer, in its annual statement to the Director of the Department of Consumer and Business Services, shall set forth the gross amount of premiums received by it or its insurance producers, return premiums paid, dividend payments made to policyholders, savings paid or credited to the accounts of subscribers in the case of a reciprocal …

731.816 [1967 c.359 §134; 1971 c.560 §1; 1989 c.700 §5; repealed by 1995 c.786 §1]

731.820 Gross premium tax on fire insurance premiums

For the purpose of maintaining the Department of the State Fire Marshal and paying the expenses incident thereto, every insurer transacting insurance covering the peril of fire shall pay a tax to the Director of the Department of Consumer and Business Services, on or before April 1 of each year, equal to 1.15 percent of the gross amount of premiums received …

731.822 Prepayment of tax due

Every insurer with a tax obligation under section 2, chapter 786, Oregon Laws 1995, ORS 731.820 or ORS 731.854 and 731.859 shall make prepayment of the tax obligations under section 2, chapter 786, Oregon Laws 1995, ORS 731.820, 731.854 and 731.859 for the current calendar year’s business, if the sum of the tax obligations under section 2, chapter 786, Orego…

731.824 Tax on underwriting profits of wet marine and transportation insurers

Wet marine and transportation insurance written by authorized foreign or alien insurers within this state shall be taxed only on that proportion of the total underwriting profit of the authorized insurer from wet marine and transportation insurance written within the United States that the gross premiums of the authorized insurer from wet marine and transpor…

731.828 Computation of wet marine and transportation insurance tax

Each authorized insurer transacting wet marine and transportation insurance in this state shall file annually on or before June 15 with the Director of the Department of Consumer and Business Services and in the form prescribed by the director, a report of all the items pertaining to the authorized insurer’s insurance business as enumerated and prescribed in…

731.830 Premium tax on gross amount of premiums insurer receives for wet marine and transportation insurance

An insurance producer shall pay to the Director of the Department of Consumer and Business Services a premium tax that is equal to three-fourths of one percent of the gross amount of premiums the insurance producer receives for wet marine and transportation insurance that the insurance producer places with unauthorized or nonadmitted insurers if the insured’…

731.832 [Formerly 736.175; 1987 c.373 §82; repealed by 1995 c.786 §4]

731.833 Record keeping requirements for wet marine and transportation insurance contracts

Each producer of nonadmitted wet marine and transportation insurance shall keep a full and true record of each nonadmitted wet marine and transportation insurance contract placed on an Oregon home state risk. The record must include a copy of the policy, certificate, cover note or other evidence of insurance that the Director of the Department of Consumer an…

731.834 Insurance producer’s collection of taxes on wet marine and transportation insurance; report to director; rules

An insurance producer that places wet marine and transportation insurance with a nonadmitted insurer shall collect taxes on the insurance in addition to the gross amount of premiums the insurance producer and other intermediaries charge. If an insurance producer collects taxes under this subsection, the insurance producer shall return directly to the policyh…

731.836 Limitation on enforcement of insurer’s tax obligations

The Director of the Department of Consumer and Business Services shall commence an action for the recovery of taxes payable under ORS 731.820, 731.824, 731.828 and 731.859 not later than the later of the following: Five years after the date such taxes were payable to the director under such sections; or Three years after the date on which the report of exa…

731.840 Retaliatory or corporate excise tax in lieu of certain taxes and assessments; certain local taxes prohibited

The retaliatory tax imposed upon a foreign or alien insurer under ORS 731.854 and 731.859, or the corporate excise tax imposed upon a foreign or alien insurer under ORS chapter 317, is in lieu of all other state taxes upon premiums, taxes upon income, franchise or other taxes measured by income that might otherwise be imposed upon the foreign or alien insure…

731.841 Conditions under which local authority to tax insurer is preempted

If, on account of the provisions of section 2, chapter 786, Oregon Laws 1995, and the amendments to ORS 731.840 by section 6, chapter 786, Oregon Laws 1995, the amendments to ORS 750.329 by section 11, chapter 786, Oregon Laws 1995, the amendments to ORS 317.010 by section 12, chapter 786, Oregon Laws 1995, and the amendments to ORS 317.080 by section 13, ch…

731.842 Adjustment of amount to be prepaid for taxes; extension of time for payment; interest; penalty for late payment

The Director of the Department of Consumer and Business Services may grant, for good cause shown, a request for an adjustment of the amount of the prepayment due under ORS 731.822 or an extension of time for payment of taxes under ORS 731.808 to 731.834 and 731.859. The extension shall be requested no later than the due date and may not exceed 30 days or one…

731.844 No personal liability for paying invalid tax

No personal liability shall arise against any director, trustee, officer or agent of any insurer on account of any taxes or fees paid pursuant to any statute, law or ordinance, even though such statute, law or ordinance is subsequently declared or held to be invalid. RETALIATORY PROVISIONS

731.854 Retaliatory tax

When by or pursuant to the laws of any other state or foreign country any taxes, licenses and other fees, in the aggregate, and any fines, penalties, deposit requirements or other material obligations, prohibitions or restrictions are or would be imposed upon insurers domiciled in this state, or upon the insurance producers or representatives of such insurer…

731.858 [Formerly 736.245; repealed by 1969 c.158 §2 (731.859 enacted in lieu of 731.858)]

731.859 Applicability of retaliatory provisions; disclosure of tax returns

On or before April 1 of each year, each foreign or alien insurer shall: Determine and report to the Director of the Department of Consumer and Business Services whether the provisions of the laws of any state or country require the imposition of the burdens specified by ORS 731.854; Compute the amount owing under ORS 731.854; and Pay to the director that …

731.870 State of emergency; effect upon insurance policies; rules

When the Governor declares a state of emergency under ORS 401.165, the Director of the Department of Consumer and Business Services may issue an order that addresses any or all of the following matters related to insurance policies issued in this state: Reporting requirements for claims; Grace periods for payment of insurance premiums and performance of ot…

731.988 Civil penalties

A person that violates any provision of the Insurance Code, any lawful rule or final order of the Director of the Department of Consumer and Business Services or any judgment that a court makes in response to the director’s application, shall forfeit and pay to the General Fund of the State Treasury a civil penalty in an amount determined by the director tha…

731.990 [Repealed by 1965 c.241 §3]

731.992 Criminal penalty

A violation of ORS 731.260 is a Class A misdemeanor. A violation of a provision of ORS 732.517 to 732.596 is a Class C felony. An officer, director or employee of an insurance holding company system who willfully and knowingly makes, causes to be made, or subscribes to, a false statement, report or filing with the intent to deceive the Director of the Depa…