ORS 744.810
Conditions under which reinsurance intermediary manager and reinsurer may enter into transactions


A reinsurance intermediary manager and the reinsurer it represents in that capacity may enter a transaction only pursuant to a written contract that specifies the responsibilities of each party and otherwise satisfies the requirements of this section. The contract must be approved by the board of directors of the reinsurer. Not later than the 30th day before the reinsurer assumes or cedes business through the reinsurance intermediary manager, a true copy of the approved contract must be filed with the Director of the Department of Consumer and Business Services for approval. The contract must at least provide that:

(1)

The reinsurer may terminate the contract for cause upon written notice to the reinsurance intermediary manager, and the reinsurer may immediately suspend the authority of the reinsurance intermediary manager to assume or cede business during the pendency of any dispute regarding the cause for termination.

(2)

The reinsurance intermediary manager must render accounts to the reinsurer, accurately detailing all material transactions and including information necessary to support all commissions, charges and other fees received by or owing to the reinsurance intermediary manager and remit all funds due under the contract to the reinsurer on not less than a monthly basis.

(3)

All funds collected for the account of the reinsurer must be held by the reinsurance intermediary manager in a fiduciary capacity in a qualified United States financial institution as that term is described in ORS 744.804 (Conditions under which reinsurance intermediary broker and insurer may enter into transactions). The reinsurance intermediary manager may retain not more than three months’ estimated claims payments and allocated loss adjustment expenses. The reinsurance intermediary manager must maintain a separate bank account for each reinsurer that it represents.

(4)

A reinsurance intermediary manager must keep a complete record for each transaction of a contract of reinsurance as provided in this subsection. For each contract of reinsurance transacted by the reinsurance intermediary manager that is limited to first party property coverages, the reinsurance intermediary manager must keep the record for not less than five years after expiration of the contract of reinsurance. For all other contracts of reinsurance transacted by the reinsurance intermediary manager, the reinsurance intermediary manager must keep the record for not less than 10 years after expiration of each contract of reinsurance. The record must show all of the following:

(a)

The type of contract, limits, underwriting restrictions, classes or risks and territory.

(b)

The period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation, and disposition of outstanding reserves on covered risks.

(c)

Reporting and settlement requirements of balances.

(d)

The rate used to compute the reinsurance premium.

(e)

Names and addresses of reinsurers.

(f)

The rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary manager.

(g)

Related correspondence and memoranda.

(h)

Proof of placement.

(i)

Specific information regarding retrocessions handled by the reinsurance intermediary manager, including the identity of retrocessionaires and percentage of each contract assumed or ceded.

(j)

Financial records, including premium and loss accounts.

(k)

The following written evidence, when the reinsurance intermediary manager places a reinsurance contract on behalf of a ceding insurer:

(A)

When the contract is procured directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or

(B)

When the contract is placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.

(5)

The reinsurer must have access to and the right to copy all accounts and records maintained by the reinsurance intermediary manager that are related to its business. The reinsurance intermediary manager must maintain the accounts and records in a form usable by the reinsurer.

(6)

The contract cannot be assigned in whole or in part by the reinsurance intermediary manager.

(7)

The reinsurance intermediary manager must comply with the written underwriting and rating standards established by the insurer for the acceptance, rejection or cession of all risks.

(8)

The contract must set forth the rates, terms and purposes of commissions, charges and other fees that the reinsurance intermediary manager may levy against the reinsurer.

(9)

If the contract permits the reinsurance intermediary manager to settle claims on behalf of the reinsurer, all of the following provisions must apply:

(a)

All claims must be reported to the reinsurer in a timely manner.

(b)

A copy of the claim file must be sent to the reinsurer at its request or as soon as it becomes known that the claim:

(A)

Has the potential of exceeding the lesser of an amount determined by the director or the limit set by the reinsurer;

(B)

Involves a coverage dispute;

(C)

May exceed the claims settlement authority of the reinsurance intermediary manager;

(D)

Is open for more than six months; or

(E)

Is closed by payment of the lesser of an amount set by the director or an amount set by the reinsurer.

(c)

All claim files must be the joint property of the reinsurer and the reinsurance intermediary manager. However, upon an order of liquidation of the reinsurer, the files become the sole property of the reinsurer or its estate but the reinsurance intermediary manager shall have reasonable access to and the right to copy the files on a timely basis.

(d)

Any settlement authority granted to the reinsurance intermediary manager may be terminated for cause upon written notice by the reinsurer to the reinsurance intermediary manager or upon the termination of the contract. The reinsurer may suspend the settlement authority during the pendency of the dispute regarding the cause of termination.

(10)

If the contract provides for a sharing of interim profits by the reinsurance intermediary manager, the interim profits must not be paid until one year after the end of each underwriting period for property business and five years after the end of each underwriting period for casualty business, or a later period set by the director for specified lines of insurance, and not until the adequacy of loss reserves on remaining claims has been attested to by an actuary pursuant to ORS 744.814 (Prohibition on use of unlicensed reinsurance intermediary manager).

(11)

The reinsurance intermediary manager must annually provide the reinsurer with a statement of its financial condition that is prepared by an independent certified public accountant.

(12)

Periodically, but not less frequently than semiannually, the reinsurer shall conduct an on-site review of the underwriting and claims processing operations of the reinsurance intermediary manager.

(13)

The reinsurance intermediary manager must disclose to the reinsurer any relationship it has with any insurer prior to ceding or assuming any business with such insurer pursuant to the contract.

(14)

Within the scope of the actual or apparent authority of the reinsurance intermediary manager, the acts of the reinsurance intermediary manager are considered to be the acts of the reinsurer on whose behalf it is acting. [1993 c.447 §79; 2003 c.364 §32]

Source: Section 744.810 — Conditions under which reinsurance intermediary manager and reinsurer may enter into transactions, https://www.­oregonlegislature.­gov/bills_laws/ors/ors744.­html.

744.052
Definitions for ORS 744.052 to 744.089
744.053
Requirements to be licensed as insurance producer for class of insurance
744.056
Exemptions from insurance producer licensing requirements
744.058
Written examination
744.059
Qualifications for license
744.061
Banking institution as insurance producer
744.062
Issuance of insurance producer license
744.063
Nonresident insurance producer license
744.064
Persons licensed elsewhere
744.067
Exemptions from prelicensing education or examination requirement
744.068
Required notifications
744.072
Renewal or reinstatement of insurance producer license
744.073
Temporary insurance producer license
744.074
Authority of director to place licensee on probation or to suspend, revoke or refuse to issue or renew license
744.076
Payment of commission, service fee or brokerage
744.077
Conditions under which person licensed as insurance producer and consultant may accept commission or fee
744.078
Appointment of insurance producers
744.079
Termination of relationship with insurance producer
744.081
Termination of appointment
744.082
Waiver of requirement for nonresident insurance producer license applicant
744.083
Trust account for premium funds
744.084
Certificate of deposit in lieu of trust account
744.086
Applicability of Insurance Code to insurance producers transacting title insurance
744.087
Filing insurance producers compensation agreements
744.088
Training requirements to be licensed as insurance producer for long term care insurance
744.089
Report of administrative action taken against insurance producer
744.091
Additional conditions under which person licensed as insurer or insurance producer may charge commission or service fee
744.093
Solicitation or sale of insurance policy by retail insurance producer or wholesale insurance producer
744.101
Definitions
744.104
Travel insurance through travel retailers
744.107
Violations
744.111
Rules
744.300
License and indorsement
744.301
Exemptions from license requirement
744.303
Certificate of errors and omissions insurance
744.306
Contract between insurer and managing general agent
744.308
Limitations on authority of insurer and managing general agent
744.311
Books, bank accounts and records
744.313
Financial examination
744.314
Rules
744.316
Authority of director if managing general agent violates provisions of ORS 744.300 to 744.316
744.318
Definitions for ORS 744.318 to 744.384
744.321
Life settlement providers
744.323
Life settlement brokers
744.324
Life settlement investment agents
744.326
License application
744.328
Issuance of license
744.331
Expiration of license
744.333
Individual acting as provider under license of firm or corporation
744.336
Notification by licensee of material change affecting qualification for license
744.338
Suspension, revocation, refusal to issue or renew license
744.341
Terms of contract
744.343
Annual report and statement by provider
744.346
Examination of business and practices of licensee or applicant
744.354
Disclosure by life settlement provider, broker or investment agent to policy owner
744.359
Disclosure by life settlement broker or provider to insurer
744.362
Disclosure by insurance company to policy owner
744.364
Life settlement contract requirements
744.367
Limitations on ability to enter life settlement contract
744.369
Unlawful life settlement contract actions
744.372
Advertising of life settlement contracts
744.374
Enforcement of life settlement contract provisions
744.382
Prohibitions on finder’s fee, solicitations, discrimination
744.384
Rules
744.502
Definitions
744.505
Adjuster license required
744.515
Exemptions from adjuster licensing requirement
744.518
License application
744.521
Powers of director to issue, renew, amend, suspend and reinstate licenses
744.523
Conditions for licensing, renewing license for or amending license of business entity
744.525
Resident adjuster qualifications
744.528
Nonresident adjuster qualifications
744.531
Classes of insurance for adjusters
744.538
Change of circumstance of nonresident adjuster
744.541
Adjustment of claim under policy issued by unauthorized insurer
744.555
Temporary adjuster permit
744.575
Adjusting claims involving credit life or credit health insurance
744.578
Licensee’s place of business
744.581
Notices required
744.584
Prohibited conduct
744.602
Definitions
744.605
Insurance consultant’s license required
744.609
Exemptions
744.611
License application
744.614
Powers of director to issue, renew, amend, suspend and reinstate licenses
744.617
Conditions for licensing, renewing license for or amending license of business entity
744.619
Qualifications for resident insurance consultant’s license
744.621
Qualifications for nonresident insurance consultant’s license
744.626
Classes of insurance for consultants
744.631
Change of circumstance of nonresident insurance consultant
744.635
Errors and omissions insurance
744.638
Licensee’s place of business
744.641
Notices required
744.644
Prohibited conduct
744.650
Disclosure by insurance consultants
744.655
Rebates prohibited
744.665
Continuing education
744.700
Definitions for ORS 744.700 to 744.740
744.702
Third party administrator license
744.704
Exemptions from license requirement
744.706
Application for license
744.708
Waiver of information requirement
744.710
Issuance or denial of license
744.712
Expiration and renewal of license
744.714
Registration of persons exempt from licensure
744.716
Notification of change in ownership or control
744.718
Suspension, revocation or refusal of issuance or renewal of license
744.720
Agreement between insurer and third party administrator
744.722
Relationship of insurer and third party administrator regarding payments
744.724
Books and records
744.726
Errors and omissions insurance
744.728
Advertising
744.730
Disposition of charges and premiums
744.732
Contingent fee agreements
744.734
Notice to insureds regarding third party administrator
744.736
Delivery from insurer to insured
744.738
Annual report
744.740
Responsibility of insurer using third party administrator
744.800
Qualifications for reinsurance intermediary brokers and managers
744.802
Exemptions from application of requirements for reinsurance intermediary brokers and managers
744.804
Conditions under which reinsurance intermediary broker and insurer may enter into transactions
744.806
Records required to be kept by reinsurance intermediary brokers
744.808
Prohibition on use of unlicensed reinsurance intermediary broker
744.810
Conditions under which reinsurance intermediary manager and reinsurer may enter into transactions
744.812
Prohibitions on actions of reinsurance intermediary managers
744.814
Prohibition on use of unlicensed reinsurance intermediary manager
744.816
Director access to books, accounts and records
744.818
Errors and omissions insurance for reinsurance intermediary manager
744.820
Director authority if reinsurance intermediary broker or manager violates provisions of ORS 744.800 to 744.818
744.850
Definitions for ORS 744.850 to 744.858
744.852
Limited license for rental companies
744.854
Kinds of insurance authorized by limited license
744.856
Conditions for offer or sale of insurance
744.858
Revocation or suspension of limited license
744.860
Definitions for ORS 744.860 to 744.870
744.862
Limited license to sell insurance
744.864
Permissible sales
744.866
Training program
744.868
License suspension and revocation or other penalty
744.870
Compensation, bonuses and incentives
744.872
Rules
744.991
Criminal penalties
744.992
Civil penalties
744.994
Effect of license expiration or surrender on director’s investigation or disciplinary proceedings
Green check means up to date. Up to date