2017 ORS 734.620¹
Notification of insolvency to insured persons
  • revocation of designation of servicing facility

The Director of the Department of Consumer and Business Services may:

(1) 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 (Definitions for ORS 734.510 to 734.710) to 734.710 (Administration of delinquency proceeding claims and expenses). Such notification may be by:

(a) Certified or first-class mail to the address of each such person as it last appears in the records of the director or the insurer;

(b) Publication in a newspaper of general circulation in this state if the addresses of those persons to be notified is not available from the records of the director or the insurer; or

(c) Any combination of the methods referred to in paragraphs (a) and (b) of this subsection that the association considers likely to inform the persons of their rights under ORS 734.510 (Definitions for ORS 734.510 to 734.710) to 734.710 (Administration of delinquency proceeding claims and expenses).

(2) Revoke the designation of any servicing facility that the director finds is not processing and paying claims in the manner provided in the plan and in ORS 734.510 (Definitions for ORS 734.510 to 734.710) to 734.710 (Administration of delinquency proceeding claims and expenses). [1971 c.616 §13]

Notes of Decisions

SAIF’s lien against proceeds of recoveries by injured workers in third-party ac­tions does not attach to pay­ments to worker by Oregon Insurance Guarantee Associa­tion acting in place of insolvent insurer. Corvallis Aero Service v. Villalobos, 81 Or App 137, 724 P2d 880 (1986), Sup Ct review denied

Automobile dealers insured for losses attributable to service contracts were not entitled to recover unearned premiums from OIGA after member insurer became insolvent when dealers’ policy with insolvent insurer specifically provided there was no right to return of unearned premiums if policy was canceled. Oregon Ins. Guaranty Assn. v. Ac­tion Chrysler, 109 Or App 556, 820 P2d 846 (1991)

Where member of Oregon Insurance Guaranty Associa­tion merges with nonmember insurer and then becomes insolvent, claims arising before merger against policies issued by nonmember insurer are not covered by associa­tion. Palmrose v. Oregon Insurance Guaranty Associa­tion, 205 Or App 613, 135 P3d 370 (2006)

Chapter 734

Atty. Gen. Opinions

State is not liable for losses incurred by Oregon Medical Insurance Pool and pools’ policy holders bear ultimate risk of pools’ insolvency, in that there would be no source of funds to pay benefits under their policies, (1989) Vol 46, p 155

1 Legislative Counsel Committee, CHAPTER 734—Rehabilitation, Liquidation and Conservation of Insurers, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors734.­html (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 734, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano734.­html (2017) (last ac­cessed Mar. 30, 2018).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.