ORS 750.685
Indemnification insurance or bond required


(1)

Except as otherwise provided in this section, no legal expense plan shall be issued, sold or offered for sale in this state unless the organization offering the plan is insured under an insurance contract that provides indemnification for the services under the plan, or reimbursement for services performed under a service contract, in the event of default of the organization. Any such insurance shall be issued only by an insurer authorized to do business in this state.

(2)

Instead of holding insurance under subsection (1) of this section, an organization offering an access plan described in subsection (5) of this section may post a bond or provide evidence of deposit pursuant to this subsection. The bond or other deposit is to be held in trust to the Director of the Department of Consumer and Business Services for the protection of members of the plan and other affected persons. The initial security bond or other deposit required for an access plan for at least the first full year of operation shall be in the amount of $10,000. The amount of deposit shall be adjusted annually and shall be in an amount equal to 10 percent of the gross written prepaid fees collected from plan members in the preceding calendar year, to a maximum of $50,000. The bond or other deposit is to be held in a bank authorized to do business in this state and insured by the Federal Deposit Insurance Corporation or in a savings and loan association insured by the Federal Deposit Insurance Corporation.

(3)

Instead of holding insurance under subsection (1) of this section, an organization offering a comprehensive plan described in subsection (5) of this section may post a bond or provide evidence of deposit pursuant to this subsection. The bond or other deposit is to be held in trust to the director for the protection of members of the plan and other affected persons. The initial security bond or other deposit required for a comprehensive plan for at least the first full year of operation shall be in the amount of $25,000. The amount of deposit shall be adjusted annually and shall be in an amount equal to 10 percent of the gross written prepaid fees collected from plan members in the preceding calendar year, to a maximum of $100,000. The bond or other deposit is to be held in a bank authorized to do business in this state and insured by the Federal Deposit Insurance Corporation or in a savings and loan association insured by the Federal Deposit Insurance Corporation.

(4)

Property used as security shall be held in trust and shall remain unencumbered, and shall have at all times a market value of at least 95 percent of the amount specified. Any bond issued in lieu of security shall be cancelable only upon 30 days’ advance written notice filed with the director. Securities or bonds deposited pursuant to this section shall be for the benefit of and subject to action thereon in the event of insolvency of the plan by any person sustaining actionable injury due to failure of the organization to faithfully perform its obligations to its members.

(5)

For purposes of this section:

(a)

“Access plan” means a plan that provides legal advice or consultation on legal matters that can be reasonably handled over the phone or by a limited review of routine legal documents.

(b)

“Comprehensive plan” means a plan that provides legal advice and consultation regarding more complex or time-consuming matters and may include advice and representation in and regarding administrative and civil or criminal judicial proceedings. [1989 c.331 §19; 1999 c.107 §18]

Source: Section 750.685 — Indemnification insurance or bond required, 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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