ORS 731.509
Legislative intent

  • criteria for allowing credit for reinsurance
  • rules

(1)

The purpose of ORS 731.509 (Legislative intent), 731.510 (Criteria for allowing reduction from liability for reinsurance), 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer), 731.512 (Withdrawal of insurer) and 731.516 (Mortgage insurance limitation) 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 insurers and reinsurers owe obligations. In furtherance of that state interest, the Legislative Assembly mandates that upon the insolvency of an alien insurer or reinsurer that provides security to fund the alien insurer’s or reinsurer’s United States obligations in accordance with ORS 731.509 (Legislative intent), 731.510 (Criteria for allowing reduction from liability for reinsurance), 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer), 731.512 (Withdrawal of insurer) and 731.516 (Mortgage insurance limitation), the assets representing the security must be maintained in the United States and claims must be filed with and valued by the state insurance commissioner with regulatory oversight, and the assets must be distributed in accordance with the insurance laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic United States insurers. The Legislative Assembly declares that the laws contained in ORS 731.509 (Legislative intent), 731.510 (Criteria for allowing reduction from liability for reinsurance), 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer), 731.512 (Withdrawal of insurer) and 731.516 (Mortgage insurance limitation) are fundamental to the business of insurance in accordance with 15 U.S.C. 1011 and 1012.

(2)

The Director of the Department of Consumer and Business Services may not allow credit for reinsurance to a domestic ceding insurer as either an asset or a reduction from liability on account of reinsurance ceded unless credit is allowed as provided under ORS 731.508 (Approved reinsurance) and unless the reinsurer meets the requirements of:

(a)

Subsection (4) of this section;

(b)

Subsection (5) of this section and ORS 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer) (1);

(c)

Subsection (6) of this section;

(d)

Subsections (7) and (8) of this section;

(e)

ORS 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer); or

(f)

Intentionally left blank —Ed.

(A)

Subsection (9) of this section; and

(B)

Additional requirements that the director specifies by rule, which may include:
(i)
The valuation of assets or reserve credits;
(ii)
The amount and forms of security that support reinsurance arrangements; and
(iii)
The circumstances under which the director will reduce or eliminate credit.

(3)

The director shall allow credit under subsection (4), (5) or (6) of this section or under ORS 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer) only with respect to cessions of the kinds or classes of business that the assuming insurer is licensed or otherwise permitted to write or assume in the state in which the assuming insurer is domiciled or, if the assuming insurer is an alien insurer, the state in which the assuming insurer is entered and is licensed or authorized to transact insurance or reinsurance. The director may allow credit under subsection (6) or (7) of this section only if the assuming insurer satisfies applicable requirements under subsection (10) of this section.

(4)

The director shall allow credit if the reinsurance is ceded to an authorized assuming insurer that accepts reinsurance of risks and retains the risk of the reinsurance within such limits as the assuming insurer is otherwise authorized to insure in this state, as provided in ORS 731.508 (Approved reinsurance).

(5)

The director shall allow credit if the reinsurance is ceded to an assuming insurer that is accredited as a reinsurer in this state, as provided in ORS 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer). The director may not allow credit to a domestic ceding insurer if the director has revoked accreditation of the assuming insurer after notice and opportunity for hearing.

(6)

The director shall allow credit if the reinsurance is ceded to a foreign assuming insurer or a United States branch of an alien assuming insurer meeting all of the following requirements:

(a)

The foreign assuming insurer must be domiciled in a state employing standards regarding credit for reinsurance that equal or exceed the standards applicable under this section. The United States branch of an alien assuming insurer must be entered through a state employing such standards.

(b)

The foreign assuming insurer or United States branch of an alien assuming insurer must maintain a combined capital and surplus in an amount not less than $20,000,000. The requirement of this paragraph does not apply to reinsurance ceded and assumed pursuant to pooling arrangements among insurers in the same holding company system.

(c)

The foreign assuming insurer or United States branch of an alien assuming insurer must submit to the authority of the director to examine the foreign assuming insurer’s or alien assuming insurer’s books and records.

(7)

The director shall allow credit if the reinsurance is ceded to an assuming insurer that maintains a trust fund meeting the requirements of this subsection and subsection (8) of this section and that also complies with other requirements of this subsection and subsection (8) of this section. The trust fund must be maintained in a qualified United States financial institution, as defined in ORS 731.510 (Criteria for allowing reduction from liability for reinsurance) (1), for the payment of the valid claims of the assuming insurer’s United States policyholders and ceding insurers and the assigns and successors in interest of the policyholders and ceding insurers. The assuming insurer must report annually to the director information that is substantially the same as information authorized insurers must report on the annual statement form under ORS 731.574 (Annual financial statement), in order to enable the director to determine the sufficiency of the trust fund. The assuming insurer shall submit to the director’s examination of the assuming insurer’s books and records and shall pay to the director the expenses of the examination.

(8)

The following requirements apply to the following categories of assuming insurers:

(a)

Intentionally left blank —Ed.

(A)

For a single assuming insurer, the trust fund must consist of funds in trust in an amount not less than the assuming insurer’s liabilities attributable to reinsurance ceded by United States ceding insurers. In addition, except as provided in subparagraph (B) of this paragraph, the assuming insurer must maintain a trusteed surplus of not less than $20,000,000.

(B)

At any time after the assuming insurer permanently discontinues underwriting, for at least three full years, new business that the trust secures, the commissioner that has principal regulatory oversight over the trust may authorize a reduction in the required trusteed surplus, but only after finding based on an assessment of the risk that the new required surplus level is adequate to protect United States ceding insurers, policyholders and claimants in light of reasonably foreseeable adverse loss development. The risk assessment may involve an actuarial review, including an independent analysis of reserves and cash flows, and must consider all material risk factors, including, if applicable, the lines of business involved, the stability of the incurred loss estimates and the effect of the surplus requirements on the assuming insurer’s liquidity or solvency. The commissioner may not reduce the amount of the minimum required trusteed surplus below 30 percent of the assuming insurer’s liabilities that are attributable to reinsurance that United States ceding insurers covered by the trust have ceded.

(b)

For a group that includes incorporated and individual unincorporated underwriters:

(A)

For reinsurance ceded under reinsurance agreements with an inception, amendment or renewal date on or after August 1, 1995, the trust must consist of a trusteed account in an amount not less than the group’s several liabilities attributable to business United States domiciled ceding insurers have ceded to any member of the group.

(B)

For reinsurance ceded under reinsurance agreements with an inception date on or before July 31, 1995, and not amended or renewed after that date, notwithstanding the other provisions of ORS 731.509 (Legislative intent), 731.510 (Criteria for allowing reduction from liability for reinsurance), 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer), 731.512 (Withdrawal of insurer) and 731.516 (Mortgage insurance limitation), the trust must consist of a trusteed account in an amount not less than the group’s several insurance and reinsurance liabilities attributable to business written in the United States.

(C)

In addition to the trusts described in subparagraphs (A) and (B) of this paragraph, the group shall maintain in trust a trusteed surplus of which $100,000,000 must be held jointly for the benefit of the United States domiciled ceding insurers of any member of the group for all years of account.

(D)

The incorporated members of the group may not engage in any business other than underwriting as a member of the group and are subject to the same level of regulation and solvency control by the group’s domiciliary regulator as are the unincorporated members.

(E)

Within 90 days after the group’s financial statements are due to be filed with the group’s domiciliary regulator, the group shall provide to the director an annual certification by the group’s domiciliary regulator of the solvency of each underwriter member or, if certification is unavailable, financial statements of each underwriter member of the group prepared by independent certified public accountants.

(c)

For the group of incorporated insurers described in this paragraph, the trust must be in an amount equal to the group’s several liabilities attributable to business ceded by United States ceding insurers to any member of the group pursuant to reinsurance contracts issued in the name of the group. This paragraph applies to a group of incorporated insurers under common administration that complies with the annual reporting requirements contained in subsection (7) of this section and that has continuously transacted an insurance business outside the United States for at least three years immediately before applying for accreditation. Such a group must have an aggregate policyholders’ surplus of $10,000,000,000 and must submit to the authority of this state to examine the group’s books and records and bear the expense of the examination. The group shall also maintain a joint trusteed surplus of which $100,000,000 must be held jointly for the benefit of United States ceding insurers of any member of the group as additional security for any such liabilities. Each member of the group shall make available to the director an annual certification of the member’s solvency by the member’s domiciliary regulator and the member’s independent certified public accountant.

(d)

The form of the trust and any amendment to the trust must be approved by the insurance commissioner of the state in which the trust is domiciled or by the insurance commissioner of another state who, pursuant to the terms of the trust instrument, has accepted principal regulatory oversight of the trust.

(e)

The form of the trust and any trust amendments also must be filed with the insurance commissioner of every state in which the ceding insurer beneficiaries of the trust are domiciled. The trust instrument must provide that contested claims are valid and enforceable upon the final order of any court of competent jurisdiction in the United States. The trust must vest legal title to the trust’s assets in the trust’s trustees for the benefit of the assuming insurer’s United States ceding insurers and the assigns and successors in interest of the ceding insurers. The trust and the assuming insurer are subject to examination as determined by the director. The trust must remain in effect for as long as the assuming insurer has outstanding obligations due under the reinsurance agreements subject to the trust.

(f)

Not later than March 1 of each year, the trustees of each trust shall report to the director in writing the balance of the trust, list the trust’s investments at the preceding year end and certify the date of termination of the trust, if a termination is planned, or certify that the trust will not expire prior to the following December 31.

(9)

The director shall allow credit if the reinsurance is ceded to an assuming insurer that does not meet the requirements of subsection (4), (5), (6) or (7) of this section or ORS 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer) (1) or (4), but only as to the insurance of risks located in jurisdictions in which the reinsurance is required by applicable law or regulation of that jurisdiction.

(10)

If the assuming insurer is not licensed, accredited or certified to transact insurance or reinsurance in this state, the director may not allow the credit permitted by subsections (6) and (7) of this section unless the assuming insurer agrees in the reinsurance agreement to the provisions stated in this subsection. This subsection does not conflict with or override the obligation of the parties to a reinsurance agreement to arbitrate the parties’ disputes, if such an obligation is created in the agreement. The assuming insurer must agree in the reinsurance agreement:

(a)

That if the assuming insurer fails to perform the assuming insurer’s obligations under the terms of the reinsurance agreement, the assuming insurer, at the request of the ceding insurer, shall submit to the jurisdiction of any court of competent jurisdiction in any state of the United States, will comply with all requirements necessary to give the court jurisdiction and will abide by the final decision of the court or of any appellate court in the event of an appeal; and

(b)

To designate the director or a designated attorney as the assuming insurer’s true and lawful attorney upon whom any lawful process in any action, suit or proceeding instituted by or on behalf of the ceding company may be served.

(11)

The director shall allow credit if the reinsurance is ceded to the Oregon Reinsurance Program established in section 18, chapter 538, Oregon Laws 2017.

(12)

If the assuming insurer does not meet the requirements of subsection (4), (5) or (6) of this section or ORS 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer) (1) or (4), the director may not allow the credit permitted by subsection (7) of this section unless the assuming insurer agrees in the trust agreements to the following conditions:

(a)

Notwithstanding any other provisions in the trust instrument, if the trust fund is inadequate because the trust fund contains an amount less than the applicable amount required by subsection (8)(a), (b) or (c) of this section, or if the grantor of the trust has been declared insolvent or placed into receivership, rehabilitation, liquidation or similar proceedings under the laws of the grantor’s state or country of domicile, the trustee shall comply with an order of the insurance commissioner with regulatory oversight over the trust or with an order of a court of competent jurisdiction directing the trustee to transfer to the insurance commissioner with regulatory oversight all the assets of the trust fund.

(b)

The assets must be distributed by and claims must be filed with and valued by the insurance commissioner with regulatory oversight in accordance with the laws of the state in which the trust is domiciled that apply to the liquidation of domestic insurance companies.

(c)

If the insurance commissioner with regulatory oversight determines that the assets of the trust fund or any part of the assets is not necessary to satisfy the claims of the United States ceding insurers of the grantor of the trust, the insurance commissioner of the state in which the trust is domiciled shall return the assets or part of the assets in accordance with the laws of the state and the terms of the trust agreement that are consistent with the laws of the state.

(d)

The grantor shall waive any right otherwise available to the grantor under United States law that is inconsistent with this subsection. [1993 c.447 §65; 1995 c.99 §1; 2001 c.318 §15; 2013 c.698 §§5,35; 2017 c.538 §23; 2019 c.151 §20]
Note: The amendments to 731.509 (Legislative intent) by section 25, chapter 538, Oregon Laws 2017, become operative January 2, 2024. See section 46, chapter 538, Oregon Laws 2017. The text that is operative on and after January 2, 2024, including amendments by section 21, chapter 151, Oregon Laws 2019, is set forth for the user’s convenience.
731.509 (Legislative intent). (1) The purpose of ORS 731.509 (Legislative intent), 731.510 (Criteria for allowing reduction from liability for reinsurance), 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer), 731.512 (Withdrawal of insurer) and 731.516 (Mortgage insurance limitation) 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 insurers and reinsurers owe obligations. In furtherance of that state interest, the Legislative Assembly mandates that upon the insolvency of an alien insurer or reinsurer that provides security to fund the alien insurer’s or reinsurer’s United States obligations in accordance with ORS 731.509 (Legislative intent), 731.510 (Criteria for allowing reduction from liability for reinsurance), 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer), 731.512 (Withdrawal of insurer) and 731.516 (Mortgage insurance limitation), the assets representing the security must be maintained in the United States and claims must be filed with and valued by the state insurance commissioner with regulatory oversight, and the assets must be distributed in accordance with the insurance laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic United States insurers. The Legislative Assembly declares that the laws contained in ORS 731.509 (Legislative intent), 731.510 (Criteria for allowing reduction from liability for reinsurance), 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer), 731.512 (Withdrawal of insurer) and 731.516 (Mortgage insurance limitation) are fundamental to the business of insurance in accordance with 15 U.S.C. 1011 and 1012.

(2)

The Director of the Department of Consumer and Business Services may not allow credit for reinsurance to a domestic ceding insurer as either an asset or a reduction from liability on account of reinsurance ceded unless credit is allowed as provided under ORS 731.508 (Approved reinsurance) and unless the reinsurer meets the requirements of:

(a)

Subsection (4) of this section;

(b)

Subsection (5) of this section and ORS 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer) (1);

(c)

Subsection (6) of this section;

(d)

Subsections (7) and (8) of this section;

(e)

ORS 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer); or

(f)

Intentionally left blank —Ed.

(A)

Subsection (9) of this section; and

(B)

Additional requirements that the director specifies by rule, which may include:
(i)
The valuation of assets or reserve credits;
(ii)
The amount and forms of security that support reinsurance arrangements; and
(iii)
The circumstances under which the director will reduce or eliminate credit.

(3)

The director shall allow credit under subsection (4), (5) or (6) of this section or under ORS 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer) only with respect to cessions of the kinds or classes of business that the assuming insurer is licensed or otherwise permitted to write or assume in the state in which the assuming insurer is domiciled or, if the assuming insurer is an alien insurer, the state in which the assuming insurer is entered and is licensed or authorized to transact insurance or reinsurance. The director may allow credit under subsection (6) or (7) of this section only if the assuming insurer satisfies applicable requirements under subsection (10) of this section.

(4)

The director shall allow credit if the reinsurance is ceded to an authorized assuming insurer that accepts reinsurance of risks and retains the risk of the reinsurance within such limits as the assuming insurer is otherwise authorized to insure in this state, as provided in ORS 731.508 (Approved reinsurance).

(5)

The director shall allow credit if the reinsurance is ceded to an assuming insurer that is accredited as a reinsurer in this state as provided in ORS 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer). The director may not allow credit to a domestic ceding insurer if the director has revoked accreditation of the assuming insurer after notice and opportunity for hearing.

(6)

The director shall allow credit if the reinsurance is ceded to a foreign assuming insurer or a United States branch of an alien assuming insurer meeting all of the following requirements:

(a)

The foreign assuming insurer must be domiciled in a state employing standards regarding credit for reinsurance that equal or exceed the standards applicable under this section. The United States branch of an alien assuming insurer must be entered through a state employing such standards.

(b)

The foreign assuming insurer or United States branch of an alien assuming insurer must maintain a combined capital and surplus in an amount not less than $20,000,000. The requirement of this paragraph does not apply to reinsurance ceded and assumed pursuant to pooling arrangements among insurers in the same holding company system.

(c)

The foreign assuming insurer or United States branch of an alien assuming insurer must submit to the authority of the director to examine the foreign assuming insurer’s or the alien assuming insurer’s books and records.

(7)

The director shall allow credit if the reinsurance is ceded to an assuming insurer that maintains a trust fund meeting the requirements of this subsection and subsection (8) of this section and that also complies with other requirements of this subsection and subsection (8) of this section. The trust fund must be maintained in a qualified United States financial institution, as defined in ORS 731.510 (Criteria for allowing reduction from liability for reinsurance) (1), for the payment of the valid claims of the assuming insurer’s United States policyholders and ceding insurers and the assigns and successors in interest of the policyholders and ceding insurers. The assuming insurer must report annually to the director information that is substantially the same as information authorized insurers must report on the annual statement form under ORS 731.574 (Annual financial statement), in order to enable the director to determine the sufficiency of the trust fund. The assuming insurer shall submit to the director’s examination of the assuming insurer’s books and records and shall pay to the director the expenses of the examination.

(8)

The following requirements apply to the following categories of assuming insurers:

(a)

Intentionally left blank —Ed.

(A)

For a single assuming insurer, the trust fund must consist of funds in trust in an amount not less than the assuming insurer’s liabilities attributable to reinsurance ceded by United States ceding insurers. In addition, except as provided in subparagraph (B) of this paragraph, the assuming insurer must maintain a trusteed surplus of not less than $20,000,000.

(B)

At any time after the assuming insurer permanently discontinues underwriting, for at least three full years, new business that the trust secures, the commissioner that has principal regulatory oversight over the trust may authorize a reduction in the required trusteed surplus, but only after finding based on an assessment of the risk that the new required surplus level is adequate to protect United States ceding insurers, policyholders and claimants in light of reasonably foreseeable adverse loss development. The risk assessment may involve an actuarial review, including an independent analysis of reserves and cash flows, and must consider all material risk factors including, if applicable, the lines of business involved, the stability of the incurred loss estimates and the effect of the surplus requirements on the assuming insurer’s liquidity or solvency. The commissioner may not reduce the amount of the minimum required trusteed surplus below 30 percent of the assuming insurer’s liabilities that are attributable to reinsurance that United States ceding insurers covered by the trust have ceded.

(b)

For a group that includes incorporated and individual unincorporated underwriters:

(A)

For reinsurance ceded under reinsurance agreements with an inception, amendment or renewal date on or after August 1, 1995, the trust must consist of a trusteed account in an amount not less than the group’s several liabilities attributable to business United States domiciled ceding insurers have ceded to any member of the group.

(B)

For reinsurance ceded under reinsurance agreements with an inception date on or before July 31, 1995, and not amended or renewed after that date, notwithstanding the other provisions of ORS 731.509 (Legislative intent), 731.510 (Criteria for allowing reduction from liability for reinsurance), 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer), 731.512 (Withdrawal of insurer) and 731.516 (Mortgage insurance limitation), the trust must consist of a trusteed account in an amount not less than the group’s several insurance and reinsurance liabilities attributable to business written in the United States.

(C)

In addition to the trusts described in subparagraphs (A) and (B) of this paragraph, the group shall maintain in trust a trusteed surplus of which $100,000,000 must be held jointly for the benefit of the United States domiciled ceding insurers of any member of the group for all years of account.

(D)

The incorporated members of the group may not engage in any business other than underwriting as a member of the group and are subject to the same level of regulation and solvency control by the group’s domiciliary regulator as are the unincorporated members.

(E)

Within 90 days after the group’s financial statements are due to be filed with the group’s domiciliary regulator, the group shall provide to the director an annual certification by the group’s domiciliary regulator of the solvency of each underwriter member or, if certification is unavailable, financial statements of each underwriter member of the group prepared by independent certified public accountants.

(c)

For the group of incorporated insurers described in this paragraph, the trust must be in an amount equal to the group’s several liabilities attributable to business ceded by United States ceding insurers to any member of the group pursuant to reinsurance contracts issued in the name of the group. This paragraph applies to a group of incorporated insurers under common administration that complies with the annual reporting requirements contained in subsection (7) of this section and that has continuously transacted an insurance business outside the United States for at least three years immediately before applying for accreditation. Such a group must have an aggregate policyholders’ surplus of $10,000,000,000 and must submit to the authority of this state to examine the group’s books and records and bear the expense of the examination. The group shall also maintain a joint trusteed surplus of which $100,000,000 must be held jointly for the benefit of United States ceding insurers of any member of the group as additional security for any such liabilities. Each member of the group shall make available to the director an annual certification of the member’s solvency by the member’s domiciliary regulator and the member’s independent certified public accountant.

(d)

The form of the trust and any amendment to the trust must be approved by the insurance commissioner of the state in which the trust is domiciled or by the insurance commissioner of another state who, pursuant to the terms of the trust instrument, has accepted principal regulatory oversight of the trust.

(e)

The form of the trust and any trust amendments also must be filed with the insurance commissioner of every state in which the ceding insurer beneficiaries of the trust are domiciled. The trust instrument must provide that contested claims are valid and enforceable upon the final order of any court of competent jurisdiction in the United States. The trust must vest legal title to the trust’s assets in the trust’s trustees for the benefit of the assuming insurer’s United States ceding insurers and the assigns and successors in interest of the ceding insurers. The trust and the assuming insurer are subject to examination as determined by the director. The trust must remain in effect for as long as the assuming insurer has outstanding obligations due under the reinsurance agreements subject to the trust.

(f)

Not later than March 1 of each year, the trustees of each trust shall report to the director in writing the balance of the trust, list the trust’s investments at the preceding year end and certify the date of termination of the trust, if a termination is planned, or certify that the trust will not expire prior to the following December 31.

(9)

The director shall allow credit if the reinsurance is ceded to an assuming insurer that does not meet the requirements of subsection (4), (5), (6) or (7) of this section or ORS 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer) (1) or (4), but only as to the insurance of risks located in jurisdictions in which the reinsurance is required by applicable law or regulation of that jurisdiction.

(10)

If the assuming insurer is not licensed, accredited or certified to transact insurance or reinsurance in this state, the director may not allow the credit permitted by subsections (6) and (7) of this section unless the assuming insurer agrees in the reinsurance agreement to the provisions stated in this subsection. This subsection does not conflict with or override the obligation of the parties to a reinsurance agreement to arbitrate the parties’ disputes, if such an obligation is created in the agreement. The assuming insurer must agree in the reinsurance agreement:

(a)

That if the assuming insurer fails to perform the assuming insurer’s obligations under the terms of the reinsurance agreement, the assuming insurer, at the request of the ceding insurer, shall submit to the jurisdiction of any court of competent jurisdiction in any state of the United States, will comply with all requirements necessary to give the court jurisdiction and will abide by the final decision of the court or of any appellate court in the event of an appeal; and

(b)

To designate the director or a designated attorney as the assuming insurer’s true and lawful attorney upon whom any lawful process in any action, suit or proceeding instituted by or on behalf of the ceding company may be served.

(11)

If the assuming insurer does not meet the requirements of subsection (4), (5) or (6) of this section or ORS 731.511 (Criteria to be met by assuming insurer in order to be accredited as reinsurer) (1) or (4), the director may not allow the credit permitted by subsection (7) of this section unless the assuming insurer agrees in the trust agreements to the following conditions:

(a)

Notwithstanding any other provisions in the trust instrument, if the trust fund is inadequate because the trust fund contains an amount less than the applicable amount required by subsection (8)(a), (b) or (c) of this section, or if the grantor of the trust has been declared insolvent or placed into receivership, rehabilitation, liquidation or similar proceedings under the laws of the grantor’s state or country of domicile, the trustee shall comply with an order of the insurance commissioner with regulatory oversight over the trust or with an order of a court of competent jurisdiction directing the trustee to transfer to the insurance commissioner with regulatory oversight all the assets of the trust fund.

(b)

The assets must be distributed by and claims must be filed with and valued by the insurance commissioner with regulatory oversight in accordance with the laws of the state in which the trust is domiciled that apply to the liquidation of domestic insurance companies.

(c)

If the insurance commissioner with regulatory oversight determines that the assets of the trust fund or any part of the assets is not necessary to satisfy the claims of the United States ceding insurers of the grantor of the trust, the insurance commissioner of the state in which the trust is domiciled shall return the assets or part of the assets in accordance with the laws of the state and the terms of the trust agreement that are consistent with the laws of the state.

(d)

The grantor shall waive any right otherwise available to the grantor under United States law that is inconsistent with this subsection.

Source: Section 731.509 — Legislative intent; criteria for allowing credit for reinsurance; rules, https://www.­oregonlegislature.­gov/bills_laws/ors/ors731.­html.

731.004
Short title
731.008
Purpose of Insurance Code
731.012
Effect of federal law
731.016
Construction of Insurance Code
731.022
Compliance with Insurance Code required
731.026
Application of Insurance Code to particular insurers
731.028
Applicability of certain Insurance Code provisions to State Accident Insurance Fund Corporation
731.036
Persons completely exempt from application of Insurance Code
731.038
Application of Insurance Code to charitable organizations that issue charitable gift annuities
731.039
Requirements for certain educational institutions or nonprofit corporations issuing charitable gift annuities
731.042
Certificate of exemption
731.046
Exemption of policies from Securities Law
731.052
Insurance Code definitions
731.056
“Action.”
731.066
“Authorized,” “unauthorized” insurer
731.069
“Certificate,” “certificate holder.”
731.072
“Certificate of authority,” “license.”
731.074
“Commercial liability insurance.”
731.075
“Covered life.”
731.076
“Department,” “director.”
731.082
“Domestic,” “foreign,” “alien” insurer
731.086
“Domestic risk.”
731.092
“Domicile.”
731.096
“Domicile of alien insurer.”
731.097
“Essential health benefits.”
731.098
“Group health insurance.”
731.099
“Independently procured insurance.”
731.102
“Insurance.”
731.104
“Insurance producer.”
731.106
“Insurer.”
731.112
“Judgment.”
731.114
“Limited benefit coverage.”
731.116
“Person.”
731.122
“Policy.”
731.126
“Reinsurance.”
731.132
“Required capitalization.”
731.136
“State.”
731.142
“Stock,” “mutual” and “reciprocal” insurer
731.144
“Surplus lines insurance.”
731.146
“Transact insurance.”
731.150
Definitions of classes of insurance not mutually exclusive
731.154
“Annuity.”
731.156
“Variable life insurance”
731.158
“Casualty insurance.”
731.162
“Health insurance.”
731.164
“Home protection insurance,” “home protection insurer.”
731.166
“Industrial life insurance.”
731.170
“Life insurance”
731.174
“Marine and transportation insurance.”
731.178
“Mortgage insurance.”
731.182
“Property insurance.”
731.186
“Surety insurance.”
731.190
“Title insurance.”
731.194
“Wet marine and transportation insurance.”
731.216
Administrative power of director
731.228
Prohibited interests and rewards
731.232
Subpoena power
731.236
General powers and duties
731.240
Hearings in general
731.244
Rules
731.248
Orders
731.252
Cease and desist orders
731.256
Enforcement generally
731.258
Enforcement of orders and decisions by Attorney General
731.259
Requirement for written notice to insured
731.260
False or misleading filings
731.264
Complaints and investigations confidential
731.268
Use of reproductions and certified copies as evidence
731.272
Director’s annual reports
731.276
Recommendations for changes in Insurance Code
731.280
Publications authorized
731.282
Authority to sell publications
731.284
Distribution of insurance laws
731.288
Recording complaints
731.292
Disposition of fees, charges, taxes, penalties and other moneys
731.296
Director’s inquiries
731.300
Examination of insurers
731.302
Appointment of examiners
731.304
Investigation of persons transacting insurance
731.308
Procedure at examination or investigation
731.312
Report of examination
731.314
Immunity for director, examiner and others
731.316
Expenses of examination of insurer
731.324
Service of process on Secretary of State
731.328
Deposits by unauthorized insurers in actions or proceedings
731.354
Certificate of authority required
731.356
Unauthorized insurance transaction enforcement
731.358
Requirements of domestic insurers generally
731.362
Requirements of foreign or alien insurers generally
731.363
Authorized foreign insurer becoming domestic insurer
731.364
Domestic insurer transferring domicile to another state
731.365
Effect of transfer of domicile by domestic or foreign insurer
731.367
Transfer of domicile by unincorporated authorized foreign insurer
731.369
Requirements of reciprocal insurers generally
731.370
Reciprocal insurer’s financial statement
731.371
Powers of reciprocal insurer regarding real estate
731.374
Exemptions to certificate of authority requirement
731.378
Foreign and alien insurers exempt from laws governing admission of foreign and alien corporations
731.380
Authority of foreign and alien insurers to take, acquire, hold and enforce notes secured by mortgages
731.381
Exemption from taxes for foreign and alien insurers engaging in activities authorized by ORS 731.380
731.382
General eligibility for certificate of authority
731.385
Standards for determining whether continued operation of insurer is hazardous
731.386
Management of insurers
731.390
Government insurers not to be authorized
731.394
Combinations of insuring powers in one insurer
731.396
Certificate of authority and good financial condition required to issue variable life insurance or variable annuity policies
731.398
Amendment of certificate of authority
731.402
Issuance or refusal of certificate of authority
731.406
What certificate evidences
731.410
Continuance, expiration or reinstatement of certificate of authority
731.414
Suspension or revocation of certificate of authority
731.418
Grounds for suspension or revocation of certificate of authority
731.422
Order of suspension, revocation or refusal
731.426
Duration of suspension
731.428
Written consent to engage or participate in business of insurance
731.430
Name of insurer
731.434
Registered office and agent
731.438
Title plant requirement for title insurers
731.439
Satisfaction of requirements of ORS 731.438 (1) by certain title plants
731.442
Prohibition on transacting life insurance business on mutual assessment plan
731.446
Policyholder deposits
731.450
Unrelated business prohibited
731.454
Domestic insurers not to transact business in jurisdiction where not authorized
731.458
Exchange of reciprocal or interinsurance contracts
731.462
Nonassessable policies of reciprocal insurer
731.466
Power of attorney for reciprocal insurer
731.470
Attorney for reciprocal insurer
731.475
Claims processing by workers’ compensation insurer
731.480
Workers’ compensation policies
731.482
Withdrawal from, failure to renew or cancellation of line by commercial liability insurer
731.484
Prohibition on certain sales related to group health and group life insurance
731.485
Conditions under which insurer may limit insured’s choice of drug outlets and pharmacies
731.486
Exemption from definition of “transact insurance” for group health and life policies
731.488
Annual audit of insurer
731.492
Required notification to claimant upon insurer’s payment to settle third-party liability claim
731.504
Limit of risk
731.508
Approved reinsurance
731.509
Legislative intent
731.510
Criteria for allowing reduction from liability for reinsurance
731.511
Criteria to be met by assuming insurer in order to be accredited as reinsurer
731.512
Withdrawal of insurer
731.514
Ceding insurer’s management of reinsurance recoverables
731.516
Mortgage insurance limitation
731.520
Conditions that insurers assuming ceded reinsurance must meet for allowance of credit
731.554
Capital and surplus requirements
731.562
Title insurer capital and surplus requirements
731.566
Reciprocal insurer surplus requirements
731.570
Withdrawing advancements made to reciprocal insurer
731.574
Annual financial statement
731.590
“Insurer” defined for ORS 731.592 and 731.594
731.592
Reporting criminal conduct involving insurance
731.594
Immunity from civil liability
731.604
Acceptance of deposits of insurers
731.608
Purpose of deposit
731.612
Rights of insurer regarding deposits
731.616
Valuation of deposits
731.620
Assignment of deposited securities
731.624
Special deposits
731.628
Deposit required of workers’ compensation insurers
731.632
Deposit required of domestic reciprocal insurers
731.636
Deposit or trusteed assets of alien insurer required
731.640
Eligible deposits
731.642
Contracts for security deposits
731.644
Payment of losses out of deposits, generally
731.648
Duration and release of deposit
731.652
Proofs for release of deposit to insurers
731.730
Insurer filings with National Association of Insurance Commissioners
731.731
Immunity for certain persons dealing with information collected from filings under ORS 731.730
731.735
Certain information confidential
731.737
Immunity from liability for certain persons filing reports or furnishing information about specified activities to specified persons
731.750
Confidentiality of report of material acquisitions or dispositions of assets, material nonrenewals, cancellations and revisions of ceded reinsurance agreements
731.752
Confidentiality of report used for determination of required amount of capital or surplus
731.754
Permissible uses of reports and plans described in ORS 731.752
731.760
Definitions for ORS 731.760 to 731.770
731.761
Privileged information
731.762
Authority of director
731.764
Waiver of privilege
731.766
Petition for in camera hearing
731.768
Privilege
731.770
Other privileges or limitations pertaining to audit document
731.804
Assessments
731.808
“Gross amount of premiums” defined
731.812
Foreign and alien insurer’s report of Oregon business
731.820
Gross premium tax on fire insurance premiums
731.822
Prepayment of tax due
731.824
Tax on underwriting profits of wet marine and transportation insurers
731.828
Computation of wet marine and transportation insurance tax
731.830
Premium tax on gross amount of premiums insurer receives for wet marine and transportation insurance
731.833
Record keeping requirements for wet marine and transportation insurance contracts
731.834
Insurance producer’s collection of taxes on wet marine and transportation insurance
731.836
Limitation on enforcement of insurer’s tax obligations
731.840
Retaliatory or corporate excise tax in lieu of certain taxes and assessments
731.841
Conditions under which local authority to tax insurer is preempted
731.842
Adjustment of amount to be prepaid for taxes
731.844
No personal liability for paying invalid tax
731.854
Retaliatory tax
731.859
Applicability of retaliatory provisions
731.870
State of emergency
731.988
Civil penalties
731.992
Criminal penalty
Green check means up to date. Up to date