ORS 750.045
Required capitalization

  • bond, security or letter of credit
  • exemptions

(1)

A health care service contractor that is a for-profit or not-for-profit corporation shall possess and thereafter maintain capital or surplus, or any combination thereof, of not less than $2.5 million.

(2)

A health care service contractor that is a for-profit or not-for-profit corporation shall file a surety bond or such other bond or securities in the sum of $250,000 as are authorized by the Insurance Code as a guarantee of the due execution of the policies to be entered into by such contractor in accordance with ORS 750.005 (Definitions) to 750.095 (Requirements of contract between provider and subscriber). In lieu of such bond or securities, a health care service contractor may file an irrevocable letter of credit issued by an insured institution as defined in ORS 706.008 (Additional definitions for Bank Act) in the sum of $250,000. This subsection does not apply to a health care service contractor that has at least 75 percent of its assets invested in health care service facilities pursuant to ORS 733.700 (Investment of funds in health care service facilities).

(3)

Subsections (1) and (2) of this section do not apply to a health care service contractor furnishing only complementary health services, dental service or optometrical service operated on a for-profit or not-for-profit basis if:

(a)

The services referred to in this subsection maintain capital or surplus, or any combination thereof, of not less than $1 million.

(b)

The services referred to in this subsection file a surety bond or other such bond or securities in the sum of $50,000 as are authorized by the Insurance Code as a guarantee of the due execution of the policies to be entered into by such contractor in accordance with ORS 750.005 (Definitions) to 750.095 (Requirements of contract between provider and subscriber).

(4)

A health care service contractor that is a for-profit or not-for-profit corporation applying for its original certificate of authority in this state shall possess, when first so authorized, additional capital or surplus, or any combination thereof, of not less than $500,000.

(5)

For the protection of the public, the Director of the Department of Consumer and Business Services may require a health care service contractor to possess and maintain capital or surplus, or any combination thereof, in excess of the amount otherwise required under this section owing to the type, volume and nature of insurance business transacted by the health care service contractor, if the director determines that the greater amount is necessary for maintaining the health care service contractor’s solvency according to standards established by rule. In developing such standards, the director shall consider model standards adopted by the National Association of Insurance Commissioners or its successor organization. For the purpose of determining the reasonableness and adequacy of a health care service contractor’s capital and surplus, the director must consider at least the following factors, as applicable:

(a)

The size of the health care service contractor, as measured by its assets, capital and surplus, reserves, premium writings, insurance in force and other appropriate criteria.

(b)

The number of lives insured.

(c)

The extent of the geographical dispersion of the lives insured by the health care service contractor.

(d)

The nature and extent of the reinsurance program of the health care service contractor.

(e)

The quality, diversification and liquidity of the investment portfolio of the health care service contractor.

(f)

The recent past and projected future trend in the size of the investment portfolio of the health care service contractor.

(g)

The combined capital and surplus maintained by comparable health care service contractors.

(h)

The adequacy of the reserves of the health care service contractor.

(i)

The quality and liquidity of investments in affiliates. The director may treat any such investment as a disallowed asset for purposes of determining the adequacy of combined capital and surplus whenever in the judgment of the director the investment so warrants.

(j)

The quality of the earnings of the health care service contractor and the extent to which the reported earnings include extraordinary items. [Formerly 742.050; 1975 c.273 §1; 1977 c.402 §1; 1985 c.747 §67; 1991 c.331 §132; 1991 c.958 §4; 1997 c.631 §552; 2001 c.318 §6; 2003 c.33 §2]

Source: Section 750.045 — Required capitalization; bond, security or letter of credit; exemptions, https://www.­oregonlegislature.­gov/bills_laws/ors/ors750.­html.

750.003
Purpose
750.005
Definitions
750.015
Management to include representatives of public
750.025
Restricting distribution of income
750.035
Regulation of hospital care associations under prior law
750.045
Required capitalization
750.055
Other provisions applicable to health care service contractors
750.059
Exemption of group practice maintenance organizations from reimbursement requirement for services provided by state hospital or state-approved program
750.065
Payment or reimbursement for services within scope of practice of optometrists
750.085
Offer of replacement coverage upon order of liquidation
750.095
Requirements of contract between provider and subscriber
750.301
Definitions for ORS 750.301 to 750.341
750.303
Conditions for use of multiple employer welfare arrangement
750.305
Application for certificate
750.307
Requirements for association or group
750.309
Requirements for trust
750.311
Multiple employer welfare arrangements established in another state
750.313
Issuance or refusal of certificate of multiple employer welfare arrangement
750.315
Maintenance of reserves
750.317
Board of trustees
750.318
Officers and persons appointed to act on behalf of board
750.319
Salaries
750.321
Assessment
750.323
Notice of coverage under plan
750.325
Filings by trust
750.327
Examinations
750.329
Taxation
750.331
Prohibited activities for trustee or officer
750.333
Applicable provisions of Insurance Code
750.335
Delinquency proceedings
750.337
Exclusion from membership in guaranty funds, joint underwriting associations and other pools
750.339
Liability of excess loss insurer
750.341
Requirement for multiple employer welfare arrangement to become traditional insurer
750.505
Definitions for ORS 750.505 to 750.715
750.515
Certificate of registration required
750.525
Inapplicability of ORS 750.505 to 750.715 to certain legal services
750.535
Registration requirements
750.545
Application
750.555
Issuance of certificate of registration
750.565
Duration of certificate
750.575
Grounds for suspension or revocation of certificate or refusal to issue or renew certificate
750.585
Written provider agreement with providing attorney
750.595
Membership agreement
750.605
Unfair, discriminatory or misleading provisions in agreements prohibited
750.615
Deposit to reimburse members for unearned premiums required
750.625
Paying providing attorney contingent on claims experience prohibited
750.635
Registered agent and registered office in state required
750.645
Annual report
750.655
Filing schedule of legal service rates required
750.675
Filing of provider and membership agreement with director
750.685
Indemnification insurance or bond required
750.695
ORS 750.505 to 750.715 not to affect regulation of practice of law
750.705
Application of Insurance Code
750.715
Rules
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