Foreign risk retention groups
- • conditions of doing business in Oregon
- • prohibited acts
Risk retention groups chartered in states other than this state and seeking to do business as a risk retention group in this state must observe and abide by the laws of this state as follows:
(1) Before transacting insurance in this state, a risk retention group shall submit to the director:
(a) A statement identifying the state or states in which the risk retention group is chartered and licensed as a liability insurance company, its date of chartering, its principal place of business and such information, including information on its membership, as the director may require to verify that the risk retention group is qualified under ORS 735.305 (Definitions for ORS 735.300 to 735.365) (11);
(b) A copy of its plan of operation or a feasibility study and revisions of such plan or study submitted to its state of domicile. The requirement of the submission of a plan of operation or a feasibility study shall not apply with respect to any line or classification of liability insurance that:
(A) Was defined in the federal Product Liability Risk Retention Act of 1981, as amended by the Risk Retention Amendments of 1986, before October 27, 1986; and
(B) Was offered before October 27, 1986, by any risk retention group that had been chartered and operating for not less than three years before October 27, 1986; and
(c) A statement of registration that designates the director as its agent for the purpose of receiving service of legal documents or process.
(2) A risk retention group doing business in this state shall submit to the director:
(a) A copy of the group’s financial statement submitted to its state of domicile, which shall be certified by an independent public accountant and contain a statement of opinion on loss and loss adjustment expense reserves made by a member of the American Academy of Actuaries or a qualified loss reserve specialist, under criteria established by the National Association of Insurance Commissioners;
(b) A copy of each examination of the risk retention group as certified by the director or public official conducting the examination;
(c) Upon request by the director, a copy of any audit performed with respect to the risk retention group; and
(d) Such information as may be required to verify its continuing qualification as a risk retention group under ORS 735.305 (Definitions for ORS 735.300 to 735.365) (11).
(3) A risk retention group is subject to taxation in this state as follows:
(a) All premiums paid for coverage within this state to risk retention groups shall be subject to taxation at the rate applicable to foreign admitted insurers and the taxes owing shall be subject to the same interest, fines and penalties for nonpayment as those applicable to foreign admitted insurers.
(b) To the extent insurance producers are used, they shall report and pay the taxes for the premiums for the risks that they have placed with or on behalf of a risk retention group not organized in this state.
(c) To the extent insurance producers are not used or fail to pay the tax, each risk retention group shall pay the tax for risks insured within the state. Further, each risk retention group shall report all premiums paid to it for risks insured within the state.
(4) A risk retention group and its agents and representatives shall comply with ORS 746.230 (Unfair claim settlement practices) and 746.240 (Undefined trade practices injurious to public prohibited). If the director seeks an injunction regarding such conduct, the injunction must be obtained from a court of competent jurisdiction.
(5) A risk retention group must submit to an examination by the director to determine its financial condition if the director of the jurisdiction in which the group is chartered has not initiated an examination or does not initiate an examination within 60 days after a request by the director of this state. Any such examination shall be coordinated to avoid unjustified repetition. Examinations may be conducted in accordance with the examiner handbook of the National Association of Insurance Commissioners.
(6) A policy issued by a risk retention group shall contain in 10 point type on the front page and the declaration page, the following notice:
This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and rules of your state. State insurance insolvency guaranty funds are not available for your risk retention group.
(7) The following acts by a risk retention group are prohibited:
(a) The solicitation or sale of insurance by a risk retention group to any person who is not eligible for membership in such group; and
(b) The solicitation or sale of insurance by, or operation of, a risk retention group that is in a hazardous financial condition or is financially impaired.
(8) No risk retention group shall be allowed to do business in this state if an insurer is directly or indirectly a member or owner of the risk retention group, other than in the case of a risk retention group all of whose members are insurers.
(9) No risk retention group may offer insurance policy coverage prohibited by the Insurance Code.
(10) A risk retention group not organized in this state and doing business in this state must comply with a lawful order issued in a voluntary dissolution proceeding or in a delinquency proceeding commenced by the insurance commissioner of any state if there has been a finding of financial impairment after an examination under subsection (5) of this section. [1987 c.774 §101; 2003 c.364 §92]
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.