Chapter 734 — Rehabilitation, Liquidation and Conservation of Insurers

734.010 [1967 c.359 §258; repealed by 1993 c.447 §122]

GENERAL PROVISIONS

734.014 Definitions

As used in this chapter: “Delinquency proceeding” means any proceeding commenced against an insurer pursuant to this chapter for the purpose of liquidating, rehabilitating or conserving the insurer. “Foreign country” means territory not in any state. “General assets” means all property, real, personal or otherwise, not specifically mortgaged, pledged, dep…

734.018 [Formerly 751.010; and then 734.030 in 1989; repealed by 1993 c.447 §122]

734.020 [1967 c.359 §257; renumbered 734.014 in 1989]

734.022 [Formerly 734.040; repealed by 1993 c.447 §122]

734.026 “Domiciliary,” “ancillary” and “reciprocal state” defined

As used in this chapter: “Domiciliary state” means the state in which an insurer is incorporated or organized or, in the case of an alien insurer, its state of entry. “Ancillary state” means any state other than a domiciliary state. “Reciprocal state” means any state other than this state in which in substance and effect the provisions of this chapter rel…

734.030 [Formerly 751.010; renumbered 734.018 in 1989]

734.031 [Formerly 734.060; repealed by 1993 c.447 §122]

734.035 [Formerly 734.070; repealed by 1993 c.447 §122]

734.039 [Formerly 734.080; repealed by 1993 c.447 §122]

734.040 [1967 c.359 §260; renumbered 734.022 in 1989]

734.043 Supervision of insurer; order; consequences; insurer remedies

For any reason stated in subsection (2) of this section, the Director of the Department of Consumer and Business Services by order may place under supervision: A domestic insurer; or A foreign or alien insurer, if the insurance regulatory official of its state of domicile or entry has asked the director to apply this section and ORS 734.047, 734.051 and 73…

734.047 Time for correction of condition leading to order of supervision

An insurer placed under supervision must correct, eliminate or remedy the acts, transactions or practices that are the basis for the order of supervision and otherwise comply with the requirements of the Director of the Department of Consumer and Business Services within the period of time allowed by the director, not to exceed 60 days, after the date on whi…

734.050 [1967 c.359 §261; renumbered 734.026 in 1989]

734.051 Actions by director during period of supervision

During the period of supervision of an insurer, the Director of the Department of Consumer and Business Services may institute rehabilitation or liquidation proceedings, extend the period of supervision or take any other action under the authority of the director with respect to the insurer.

734.055 Action against person violating order of supervision

The Director of the Department of Consumer and Business Services or supervisor on behalf of an insurer under supervision may bring an action for damages against any person who violates any order of the director under ORS 734.043 if the violation reduces the net worth of the insurer or results in loss to the insurer that the insurer would not have suffered ot…

734.059 Request for court order

The Director of the Department of Consumer and Business Services may file a petition with the circuit court requesting an order that: Authorizes the director to seize all or part of the property, books, accounts and other records of a domestic insurer as well as the premises occupied by the insurer for transacting its business; and Enjoins the domestic ins…

734.060 [1967 c.359 §262; renumbered 734.031 in 1989]

734.063 Court order; hearings; notice

Upon petition by the Director of the Department of Consumer and Business Services under ORS 734.059, the court may issue the requested order immediately, ex parte and without hearing. The court in its order shall specify the duration of the order. The duration of an order shall be a period sufficient to enable the director to ascertain the condition of the i…

734.067 Review of court order

An insurer against whom an order under ORS 734.059 is directed may petition the court for a hearing and review of the order. Not later than the 15th day after the court receives a petition under subsection (1) of this section, the court shall hold the hearing and review the order.

734.070 [1967 c.359 §263; renumbered 734.035 in 1989]

734.080 [1967 c.359 §264; renumbered 734.039 in 1989]

734.110 Jurisdiction of delinquency proceedings; venue

The circuit court shall have original jurisdiction of delinquency proceedings under this chapter, and any court with jurisdiction is authorized to make all necessary or proper orders to carry out the purposes of this chapter. The venue of delinquency proceedings and proceedings under ORS 734.059 and 734.063 against a domestic insurer and the venue of delinq…

734.113 Application of Oregon Receivership Code

Notwithstanding ORS 37.040, the Oregon Receivership Code does not apply to delinquency proceedings under this chapter. Note: 734.113 was added to and made a part of ORS chapter 734 by legislative action but was not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.

734.120 Exclusive remedy; appeal

Delinquency proceedings pursuant to this chapter shall constitute the sole and exclusive method of rehabilitating, liquidating or conserving an insurer, and no court shall entertain a petition for the commencement of such proceedings, or any other similar procedure, unless the same has been filed in the name of the state on the relation of the Director of th…

734.130 Commencement of delinquency proceeding

The Director of the Department of Consumer and Business Services shall commence a delinquency proceeding by an application to the court for an order directing the insurer to show cause why the director should not have the relief prayed for. The application shall be by petition, verified by the director, setting forth the ground or grounds for the proceeding…

734.140 Injunctions

Upon application by the Director of the Department of Consumer and Business Services for an order to show cause under ORS 734.130, or at any time thereafter, the court may, without notice, issue an injunction restraining the insurer, its officers, directors, stockholders, members, subscribers, agents, employees and all other persons from the transaction of i…

734.142 Cooperation with director in delinquency proceedings

Each officer, manager, director, trustee, owner, employee or agent of an insurer, and any other person with authority over or in charge of any portion of the insurer’s affairs, including any person who exercises control directly or indirectly over activities of the insurer through a holding company or other affiliate of the insurer, shall cooperate with the …

734.144 Immunity of certain persons from civil liability

The following persons are entitled to protection under this section: All receivers responsible for the conduct of a delinquency proceeding, including present and former receivers. All employees of the receiver. For purposes of this section, such employees include all present and former special deputies and assistant special deputies appointed by the Direct…

734.150 Grounds for rehabilitation of domestic insurers

The Director of the Department of Consumer and Business Services may apply for an order directing the director to rehabilitate a domestic insurer on one or more of the following grounds: The insurer is impaired. The insurer has failed to submit its books, papers, accounts or affairs to the reasonable inspection and examination of the director. Without fir…

734.160 Order of rehabilitation for domestic insurers

An order to rehabilitate a domestic insurer shall direct the Director of the Department of Consumer and Business Services forthwith to take possession of the property of the insurer and to conduct the business thereof, and to take such steps toward removal of the causes and conditions which have made rehabilitation necessary as the court may direct. If at a…

734.170 Grounds for liquidation of domestic insurers

The Director of the Department of Consumer and Business Services may apply for an order directing the director to liquidate the business of a domestic insurer, regardless of whether there has been a prior order directing the director to rehabilitate such insurer, upon any of the grounds specified in ORS 734.150, or if the insurer: Has ceased transacting bus…

734.180 Order of liquidation of domestic insurers

An order to liquidate the business of a domestic insurer shall direct the Director of the Department of Consumer and Business Services forthwith to take possession of the property of the insurer, to liquidate its business, to deal with the insurer’s property and business in the name of the director or in the name of the insurer as the court may direct, and t…

734.190 Grounds for conservation of foreign and alien insurers

The Director of the Department of Consumer and Business Services may apply for an order directing the director to conserve the assets within this state of a foreign or alien insurer upon any one or more of the following grounds: Any of the grounds specified in ORS 734.150; or That its property has been sequestrated in any jurisdiction.

734.200 Conservation or ancillary receivership of foreign and alien insurers

An order to conserve the assets of a foreign or alien insurer shall direct the Director of the Department of Consumer and Business Services forthwith to take possession of the property of the insurer within this state and to conserve it, subject to the further direction of the court. Whenever a domiciliary receiver has been appointed for any foreign or alie…

734.210 Conduct of delinquency proceedings for domestic insurers

Whenever under this chapter a receiver is to be appointed in delinquency proceedings for an insurer domiciled in this state, the court shall appoint the Director of the Department of Consumer and Business Services as such receiver. The court shall direct the receiver forthwith to take possession of the property of the insurer and to administer the same under…

734.220 Powers of director as receiver

Upon taking possession of the property and business of any person in any proceeding under this chapter, the Director of the Department of Consumer and Business Services shall, subject to the direction of the court, immediately proceed to conduct the business of the insurer or to take such steps as are authorized by the laws of this state for the purpose of r…

734.230 Deputies and assistants

In connection with supervising an insurer under the Insurance Code or conducting delinquency proceedings, the Director of the Department of Consumer and Business Services may appoint one or more special deputy directors to act for the director, and may employ such counsel, clerks, and assistants as the director deems necessary. Unless otherwise provided by t…

734.240 Conduct of delinquency proceedings for foreign insurers

Whenever under this chapter an ancillary receiver is to be appointed in delinquency proceedings for an insurer not domiciled in this state, the court shall appoint the Director of the Department of Consumer and Business Services as ancillary receiver. The director shall file a petition requesting the appointment: If the director finds that there are suffici…

734.250 Right of domiciliary receiver to sue in this state

The domiciliary receiver of an insurer domiciled in a reciprocal state may sue in this state to recover any assets of such insurer to which the domiciliary receiver may be entitled under the laws of this state.

734.260 Claims of nonresidents against domestic insurers

In a delinquency proceeding begun in this state against an insurer domiciled in this state, claimants residing in reciprocal states may file claims either with the ancillary receivers, if any, in their respective states, or with the domiciliary receiver. All such claims must be filed on or before the last date fixed for the filing of claims in the domiciliar…

734.270 Claims of residents against foreign insurers

In a delinquency proceeding in a reciprocal state against an insurer domiciled in that state, claimants against such insurer who reside within this state may file claims either with the ancillary receiver, if any, appointed in this state, or with the domiciliary receiver. All such claims must be filed on or before the last date fixed for the filing of claims…

734.280 Form of claim; notice; hearing

All claims against an insurer, against which delinquency proceedings have been begun, shall set forth in reasonable detail the amount of the claim, or the basis upon which such amount can be ascertained, the facts upon which the claim is based, and the priorities asserted, if any. All such claims shall be verified by the affidavit of the claimant, or someone…

734.290 Priority of preferred claims

In a delinquency proceeding against an insurer domiciled in this state, claims owing to residents of ancillary states shall be preferred claims if like claims are preferred under the laws of this state. All such claims whether owing to residents or nonresidents shall be given equal priority of payment from general assets regardless of where such assets are l…

734.300 Priority of special deposit claims

The owners of special deposit claims against an insurer for which a receiver is appointed in this or any other state shall be given priority against their several special deposits in accordance with the provisions of the statutes governing the creation and maintenance of such deposits. If there is a deficiency in any such deposit so that claims secured there…

734.310 Priority of secured claims

The owner of a secured claim against an insurer for which a receiver has been appointed in this or any other state may surrender the security and file a claim as a general creditor, or the claim may be discharged by resort to the security, in which case the deficiency, if any, shall be treated as a claim against the general assets of the insurer on the same …

734.320 Attachment and garnishment of assets

During the pendency of delinquency proceedings in this or any reciprocal state no action or proceeding in the nature of an attachment, garnishment or execution shall be commenced or maintained in the courts of this state against the delinquent insurer or its assets. Any lien obtained by any such action or proceeding within four months prior to the commenceme…

734.330 [Formerly 751.110; repealed by 1993 c.447 §122]

734.340 Date rights fixed on liquidation

The rights and liabilities of the insurer and of its creditors, policyholders, stockholders, members, subscribers, and all other persons interested in its estate, shall, unless otherwise directed by the court, be fixed as of the date on which the order directing the liquidation of the insurer is filed in the office of the clerk of the court which makes the o…

734.350 Voidable transfers

Any transfer of, or lien upon, the property of an insurer, other than as provided in ORS 734.320 which is made or created within four months prior to the commencement of a delinquency proceeding with the intent of giving to any creditor, or of enabling the creditor to obtain, a greater percentage of the debt than any other creditor of the same class, and whi…

734.360 Preference of claims

Except as provided in ORS 734.310 for secured claims, the claims to be paid in full in delinquency proceedings prior to the payment of any other claims, and the order of payment, shall be: Expenses of administration of the delinquency proceedings and expenses of the Oregon Insurance Guaranty Association or similar organization in another state handling clai…

734.370 Offsets

No offsets shall be allowed in cases of mutual debts or mutual credits between the insurer and another person in connection with any domestic delinquency proceeding under this chapter, except for cases of policy loans and cases of reinsurance and except for insurance producers’ balances, excluding unearned return commissions.

734.380 Allowance of certain claims

A contingent claim against an insurer or a claim based upon a cause of action or suit against an insured of an insurer shall be filed, presented and reported in the same manner and within the same time limitations as provided in this chapter for a noncontingent claim. Such claims shall be allowed to share in a distribution of assets in the same manner as non…

734.385 Rights and obligations of Federal Home Loan Bank in connection with delinquency proceeding against insurer

As used in this section: “Collateral” means collateral that meets the requirements for the categories of collateral that are set forth in 12 C.F.R. 1266.7(a), as in effect on May 19, 2025, and in which a Federal Home Loan Bank holds a first priority perfected security interest. “Federal Home Loan Bank” has the meaning given that term in 12 U.S.C. 1422, as …

734.390 Time to file claims

If upon the granting of an order of liquidation under this chapter, or at any time thereafter during the liquidation proceeding, the insurer shall not be clearly solvent, the court shall, after such notice and hearing as it considers proper, make an order declaring the insurer to be insolvent. Thereupon, regardless of any prior notice which may have been giv…

734.400 Report for assessment; domestic mutual and reciprocal insurers

Within three years from the date an order of rehabilitation or liquidation of a domestic mutual insurer or a domestic reciprocal insurer was filed in the office of the clerk of the court by which such order was made, the Director of the Department of Consumer and Business Services may make a report to the court setting forth: The reasonable value of the ass…

734.410 Levy of assessment; domestic mutual and reciprocal insurers

Upon the basis of the report provided for in ORS 734.400, including any amendments thereof, the court, ex parte, may levy one or more assessments against all persons who, as shown by the records of the insurer, were members (in the case of a mutual insurer) or subscribers (in the case of a reciprocal insurer) at any time within one year prior to the commence…

734.420 Order to pay assessment

After levy of assessment as provided in ORS 734.410 and upon the filing of a further detailed report by the Director of the Department of Consumer and Business Services, the court shall issue an order directing each member (in the case of a mutual insurer) or each subscriber (in the case of a reciprocal insurer) if the member or subscriber shall not pay the …

734.430 Publication and transmittal of assessment order

The Director of the Department of Consumer and Business Services shall cause a notice of the assessment order issued under ORS 734.420, which shall set forth a brief summary of the contents of such order, to be: Published in such manner as shall be directed by the court; and Enclosed in a sealed envelope, addressed and mailed, postage prepaid, to each memb…

734.440 Judgment upon assessment

On the return day of the order to show cause specified in the assessment order issued under ORS 734.420, if the member or subscriber does not appear and serve verified objections upon the Director of the Department of Consumer and Business Services, the court shall make an order adjudging that such member or subscriber is liable for the amount of the assessm…

734.510 Definitions for ORS 734.510 to 734.710

As used in ORS 734.510 to 734.710, unless the context requires otherwise: “Association” means the Oregon Insurance Guaranty Association created by ORS 734.550. “Board” means the board of directors of the association. “Controlled insurer” means an insurer 70 percent or more of whose stock is owned by a corporation, or by two or more corporations that are u…

734.520 Purpose

The purpose of ORS 734.510 to 734.710 is to provide for the payment of covered claims under certain insurance policies to avoid excessive delay in payment and to avoid financial loss to claimants or policyholders because of the insolvency of an insurer, to assist in the detection and prevention of insurer insolvencies, to provide an association to assess the…

734.530 Construction

ORS 734.510 to 734.710 shall be liberally construed to effect the purposes provided in ORS 734.520.

734.540 Application

ORS 734.510 to 734.710 apply to all kinds of direct insurance except life, health, title, surety, credit, mortgage guaranty, home protection insurance, wet marine and transportation insurance, insurance against the risk of economic loss assumed under a less than fully insured employee health benefit plan, whether issued or delivered as health or casualty ins…

734.550 Oregon Insurance Guaranty Association; all insurers required to be members; formation of operating plan

There is created the Oregon Insurance Guaranty Association. Each insurer that is a member insurer shall become and remain a member of the association as a condition of its authority to transact insurance in this state. The association shall perform its functions in accordance with a plan of operation established under ORS 734.590, and shall exercise its powe…

734.555 Application to association of certain laws governing corporations; exception

The provisions, procedures and requirements of ORS chapter 60 relating to a registered office, registered agent and to service of process, notice and demand shall govern the Oregon Insurance Guaranty Association, except that the Director of the Department of Consumer and Business Services shall be substituted for the Secretary of State as the person with who…

734.560 Association board of directors; terms; vacancies; compensation and expenses; quorum

The board of directors of the Oregon Insurance Guaranty Association shall consist of nine members selected by the member insurers, subject to the approval of the Director of the Department of Consumer and Business Services. The term of each member of the board shall be as specified in the plan, but in no event for longer than four years. A vacancy on the boa…

734.570 Duties and functions of association

The Oregon Insurance Guaranty Association: Shall pay covered claims that exist at the time, or that arise within 30 days after, a member insurer has been determined to be insolvent, subject to the following limits and exceptions: The association’s obligation to pay a covered claim that arises from the insolvency of a member insurer between September 9, 197…

734.575 Refunds from association deposited in General Fund

Any sums acquired by refund from the Oregon Insurance Guaranty Association that have previously been written off by contributing insurers and offset against corporate excise taxes or fire insurance gross premiums taxes, and are not then needed for purposes of ORS 734.510 to 734.710, shall be paid by the association to the Director of the Department of Consum…

734.577 [1987 c.582 §1; 1991 c.67 §196; 2003 c.14 §448; repealed by 2005 c.755 §59]

734.579 Recoupment assessments; rules

Each member insurer subject to an Oregon Insurance Guaranty Association assessment pursuant to ORS 734.570 (3) shall recoup the amount of the assessment through a recoupment assessment imposed on net direct written premiums. The member insurer shall fix the amount of the recoupment assessment at an amount sufficient to reimburse the member insurer for the am…

734.580 Discretionary functions of association

The Oregon Insurance Guaranty Association may: Employ or retain persons or designate servicing facilities that are necessary to handle claims and perform the other duties of the association, subject to the approval of the Director of the Department of Consumer and Business Services. Servicing facilities so designated may be foreign corporations or associati…

734.590 Plan of operation; submission to director; rules

The Oregon Insurance Guaranty Association shall submit to the Director of the Department of Consumer and Business Services not later than 90 days after September 9, 1971, a plan of operation, and may thereafter submit such amendments thereto as will provide for the reasonable and equitable exercise of the duties and powers of the association. The plan of ope…

734.600 Contents of plan of operation

A plan of operation shall: Establish procedures for the submission, processing and payment of claims against the Oregon Insurance Guaranty Association. Establish procedures for record keeping, payment of expenses and administration of all other financial affairs of the association. Establish times and places for meetings of the board. Establish procedure…

734.610 Notification to association of insurer insolvency; furnishing association with premium information

The Director of the Department of Consumer and Business Services shall: Notify the Oregon Insurance Guaranty Association of the insolvency of an insurer not later than three days after the director receives notice of the determination of insolvency. Upon request of the board, provide the association with a statement of the net direct written premiums of ea…

734.620 Notification of insolvency to insured persons; revocation of designation of servicing facility

The Director of the Department of Consumer and Business Services may: Require the Oregon Insurance Guaranty Association to notify the insureds of an insolvent insurer of the determination of insolvency and of their rights under ORS 734.510 to 734.710. Such notification may be by: Certified or first-class mail to the address of each such person as it last a…

734.630 Assignment of claim rights; filing statements of paid claims; effect of claim settlements

Any person who recovers on a covered claim under ORS 734.510 to 734.710 thereby assigns the rights of the person under the insurance policy to the Oregon Insurance Guaranty Association to the extent of such recovery. Every person who seeks the protection of ORS 734.510 to 734.710 shall cooperate with the association to the same extent such person would have …

734.635 Disbursing assets of insolvent insurer to association; court approval; notice to other states

Not later than 120 days from the date the order of liquidation of a member insurer is filed in the office of the clerk of the court by which the order was made, that insurer’s receiver shall make application to the court for approval of a proposal to disburse the insurer’s marshalled assets to the Oregon Insurance Guaranty Association from time to time as th…

734.640 Exhaustion of coverage under policy before making claim against association; priority of claims

A person need not exhaust any right available under an insolvent member insurer’s policy, but if the person has a claim under an insurance policy that arises from the same facts, injury or loss from which a covered claim against the association arises, whether or not the insolvent member insurer issued the policy, the person must first exhaust all coverage u…

734.645 Liability of Oregon Insurance Guaranty Association when member insurer is subject to liquidation after assuming sole responsibility for insurance policy that other member issued; exception

Notwithstanding any other provision of ORS 734.510 to 734.710, if an insurer assumes sole responsibility for an insurance policy that a member insurer issued and the insurer that assumes responsibility for the insurance policy is subject to liquidation, the Oregon Insurance Guaranty Association is subject under ORS 734.510 to 734.710 to a claim that arises f…

734.650 Notifying director of impaired insurers; examination; reports on impaired insurers

Whenever the board obtains any information indicating that any member insurer is impaired or in a financial condition hazardous to the policyholders or the public, the board shall so notify the Director of the Department of Consumer and Business Services. The board may request the director to examine any member insurer that the board in good faith believes …

734.660 Regulation of association as insurer

The Oregon Insurance Guaranty Association is subject to regulation by the Director of the Department of Consumer and Business Services in the same manner as an insurer. Not later than March 30 of each year, the board shall submit to the director, in a form approved by the director, a financial report for the preceding year.

734.670 Exemption of association from payment of fees and taxes

Except for taxes levied on real or personal property, the Oregon Insurance Guaranty Association shall be exempt from the payment of all fees and taxes levied by this state or by any city, county, district or other political subdivision of this state.

734.680 [1971 c.616 §20; repealed by 1977 c.793 §11]

734.690 Immunity from legal action

No person shall have a cause of action against any member insurer, the Oregon Insurance Guaranty Association or its employees or servicing facilities, any member of the board, or the Director of the Department of Consumer and Business Services or employees of the director for any action taken by them in carrying out ORS 734.510 to 734.710.

734.695 Liability of insured of insolvent insurer

The insured of an insolvent insurer is not personally liable for amounts due any reinsurer, insurer, insurance pool or underwriting association as subrogation recoveries or otherwise up to the applicable limits of liability provided by the insurance policy issued by the insolvent insurer. Notwithstanding the provisions of subsection (1) of this section, and…

734.700 Defense of claims on default of insolvent insurer

Any pending proceeding in which an insolvent insurer is a party or is obligated to defend a party in any court of this state shall be stayed for 60 days after the date a receiver is appointed by the court to permit the Oregon Insurance Guaranty Association time to prepare a defense in such proceedings. If any covered claim arises from a judgment based on th…

734.710 Administration of delinquency proceeding claims and expenses; application of ORS 734.014, 734.026 and 734.110 to 734.440 to insurers

In any delinquency proceeding involving a member insurer, the claims and expenses of the insurer shall be administered as provided in ORS 734.510 to 734.710. Except as otherwise provided in ORS 734.510 to 734.710, ORS 734.014, 734.026 and 734.110 to 734.440 apply to a member insurer. OREGON LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION

734.750 Short title

ORS 734.750 to 734.890 may be cited as the Oregon Life and Health Insurance Guaranty Association Act.

734.760 Definitions for ORS 734.750 to 734.890

As used in ORS 734.750 to 734.890, unless the context requires otherwise: “Account” means one of the three accounts created under ORS 734.800. “Association” means the Oregon Life and Health Insurance Guaranty Association created under ORS 734.800. “Contractual obligation” means any obligation under a covered policy or contract or a certificate under a gro…

734.770 Purpose

The purpose of ORS 734.750 to 734.890 is to protect the persons specified in ORS 734.790, subject to certain limitations, against failure in the performance of contractual obligations, under life and health insurance policies and annuity contracts specified in ORS 734.790, because of the impairment or insolvency of the insurer issuing such policies or contra…

734.780 Construction

ORS 734.750 to 734.890 shall be liberally construed to effect the purpose provided in ORS 734.770.

734.790 Application

ORS 734.750 to 734.890 provide coverage for policies and contracts specified in subsection (2) of this section to the following persons who are not provided coverage under the laws of another state: To a person who is a resident, if the person is an owner of or a certificate holder under the policy or contract other than a structured settlement annuity or, …

734.800 Oregon Life and Health Insurance Guaranty Association; required members; required accounts

There is created a nonprofit legal entity to be known as the Oregon Life and Health Insurance Guaranty Association. All member insurers shall be and remain members of the association as a condition of their authority to transact insurance in this state. The association shall perform its functions under the plan of operation established and approved under ORS…

734.805 Association board of directors; terms; selection; vacancies; compensation and expenses

The board of directors of the Oregon Life and Health Insurance Guaranty Association shall consist of not less than five nor more than nine members who represent member insurers, serving terms as established in the plan of operation. The members of the board shall be selected by member insurers, subject to the approval of the Director of the Department of Con…

734.810 Duties and powers of association; termination of obligations; limit of obligations

If a member insurer is an impaired insurer, the Oregon Life and Health Insurance Guaranty Association, in its discretion and subject to any conditions imposed by the association and approved by the Director of the Department of Consumer and Business Services, other than those that impair the contractual obligations of the impaired insurer, may: Guarantee, a…

734.815 Assessment of members; classes of assessments; amounts; refunds

For the purpose of providing the funds necessary to carry out the powers and duties of the Oregon Life and Health Insurance Guaranty Association, the board of directors shall assess the member insurers, separately for each account, at such time and for such amounts as the board finds necessary. The board shall collect the assessments after 30 days’ written n…

734.820 Plan of operation; submission of amendments to director; rules; contents of plan

The Oregon Life and Health Insurance Guaranty Association shall maintain on file with the Director of the Department of Consumer and Business Services a plan of operation and shall submit any amendments thereto necessary or suitable to ensure the fair, reasonable and equitable administration of the association. Amendments to the plan shall become effective u…

734.825 Powers and duties of director

In addition to the duties and powers enumerated elsewhere in ORS 734.750 to 734.820 and 734.830 to 734.890: The Director of the Department of Consumer and Business Services shall: Upon request of the board of directors, provide the Oregon Life and Health Insurance Guaranty Association with a statement of the premiums in the appropriate states for each memb…

734.830 Notifying director of impaired insurers; examination; reports on impaired insurers

To aid in the detection and prevention of insurer impairments and insolvencies: The board of directors shall, upon majority vote, notify the Director of the Department of Consumer and Business Services of any information indicating any member insurer may be an impaired insurer or insolvent insurer. The board of directors may, upon majority vote, request th…

734.835 Assessments offset against tax liabilities; rate

A member insurer may offset against its corporate excise tax liabilities to this state an assessment described in ORS 734.815 (8), at the rate of 20 percent of the amount of such assessment for each of the five calendar years following the year in which such assessment was paid. In the event a member insurer should cease doing business, all uncredited assess…

734.840 Conduct of liquidation, rehabilitation or conservation proceeding involving impaired or insolvent insurer

Nothing in ORS 734.750 to 734.890 shall be construed to reduce the liability for unpaid assessments of the insureds on an impaired or insolvent insurer operating under a plan with assessment liability. Records shall be kept of all negotiations and meetings in which the Oregon Life and Health Insurance Guaranty Association or its representatives are involved…

734.850 Examination and regulation of association by director; required reports

The Oregon Life and Health Insurance Guaranty Association shall be subject to examination and regulation by the Director of the Department of Consumer and Business Services. The board of directors shall submit to the director, not later than May 1 of each year, a financial report for the preceding calendar year in a form approved by the director, and a repor…

734.860 Exemption of association from payment of fees and taxes

The Oregon Life and Health Insurance Guaranty Association shall be exempted from payment of all fees and all taxes levied by this state or any of its political subdivisions, except taxes levied on real property.

734.870 Immunity from legal action

There shall be no liability on the part of, and no cause of action of any nature shall arise against, any member insurer or its agents or employees, the Oregon Life and Health Insurance Guaranty Association or its agents or employees, members of the board of directors, or the Director of the Department of Consumer and Business Services or the representatives…

734.880 Stay of proceeding involving insolvent insurer

All proceedings in which an insolvent insurer is a party in any court in this state shall be stayed 180 days from the date an order of liquidation, rehabilitation or conservation is final to permit proper legal action by the Oregon Life and Health Insurance Guaranty Association on any matters germane to its powers or duties. As to judgment under any decision…

734.890 Association not to be used in sales or solicitation

No insurer or insurance producer shall make, publish, disseminate, circulate or place before the public, or cause directly or indirectly, to be made, published, disseminated, circulated or placed before the public, in any newspaper, magazine or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio station or t…