Loading
The Oregon Administrative Rules contain OARs filed through June 15, 2014
 
QUESTIONS ABOUT THE CONTENT OR MEANING OF THIS AGENCY'S RULES?
CLICK HERE TO ACCESS RULES COORDINATOR CONTACT INFORMATION

 

DEPARTMENT OF CONSUMER AND BUSINESS SERVICES,
INSURANCE DIVISION

 

DIVISION 14

ALTERNATIVE INSURANCE ORGANIZATIONS

Legal Expense Organizations

836-014-0001

Purpose, Authority and Effective Date

(1) OAR 836-014-0001 to 836-014-0045 are adopted to carry out the purpose of ORS 750.505 to 750.715, that of regulating the operation of legal expense organizations in this state.

(2) OAR 836-014-0001 to 836-014-0045 are adopted pursuant to the general rule-making authority of the Director under ORS 731.244 and the specific authority in ORS 750.715.

Stat. Auth.: ORS 731 & ORS 750
Stats. Implemented: ORS 750.505 & ORS 750.715 et seq.
Hist.: ID 4-1990, f. & cert. ef. 1-24-90

836-014-0005

Applicability and Scope

(1) Except as otherwise specifically provided in section (2) of this rule, OAR 836-014-0001 to 836-014-0045 apply to:

(a) All legal expense organizations doing business in this state;

(b) All legal expense plans and membership agreements of legal expense organizations delivered or issued for delivery in this state on or after January 1, 1990;

(c) All legal expense provider agreements in force in this state on or after January 1, 1990.

(2) OAR 836-014-0001 to 836-014-0045 do not apply to arrangements specified in ORS 750.525.

Stat. Auth.: ORS 731 & ORS 750
Stats. Implemented: ORS 750.505 & ORS 750.715 et seq.
Hist.: ID 4-1990, f. & cert. ef. 1-24-90

836-014-0010

Required Capitalization

A legal expense organization shall possess and thereafter maintain capital or surplus, or any combination thereof, of not less than $25,000 or an amount equal to 25 percent of the gross written prepaid fees collected from plan members in the preceding calendar year, whichever is greater, but in no case shall the required amount be more than $300,000.

Stat. Auth.: ORS 731 & ORS 750
Stats. Implemented: ORS 750.535(3)(a)
Hist.: ID 4-1990, f. & cert. ef. 1-24-90

836-014-0015

Annual Financial Statement

A legal expense organization shall file with the Director an annual financial statement, using the form prescribed by the Director, not later than March 1 following the calendar year to which the statement applies. The statement shall be:

(1) Provided on a statutory accounting basis pursuant to the provisions of ORS chapter 733 applicable to organizations under ORS 750.705.

(2) Verified as to the financial condition of the legal expense organization as of the end of the preceding calendar year:

(a) If the organization is a corporation, by two executive officers;

(b) If the organization is a partnership, by two partners;

(c) If the organization is a sole proprietorship, by the individual proprietor;

(d) If the organization is an association, by two executive officers;

(e) If the organization is an entity other than one to which subsection (a), (b), (c) or (d) of this section applies, by two executive officers.

[ED. NOTE: Forms referenced are available from the agency.]

Stat. Auth.: ORS 731 & 750
Stats. Implemented: ORS 750.645(1)(a)
Hist.: ID 4-1990, f. & cert. ef. 1-24-90; ID 19-2006, f. & cert. ef. 9-26-06

836-014-0020

Deposits

(1) A deposit under ORS 750.685 shall be with a bank qualified under ORS 731.642 to act as a trust company and as a depository of state funds to hold and service securities by insurers with the state, or with any other depository bank as defined in ORS 295.005.

(2) For compliance with ORS 750.685, a deposit trust agreement shall have the prior approval of the Director for adequate safeguards providing:

(a) Retention of deposits so long as there is outstanding any liability of the legal expense organization as to which the deposit was required;

(b) Release of deposit only upon written directions of the Director.

Stat. Auth.: ORS 731 & ORS 750
Stats. Implemented: ORS 750.685(2) - ORS 750.685(3)
Hist.: ID 4-1990, f. & cert. ef. 1-24-90

836-014-0025

Bond

A legal expense organization posting a bond under ORS 750.685 shall use the form prescribed by the Director.

[ED. NOTE: Forms referenced are available from the agency.]

Stat. Auth.: ORS 731 & 750
Stats. Implemented: ORS 750.685(2) - 750.685(3)
Hist.: ID 4-1990, f. & cert. ef. 1-24-90; ID 19-2006, f. & cert. ef. 9-26-06

836-014-0030

Sales Representatives

Every legal expense organization shall submit to the Director, on the form prescribed by the Director, the names and addresses of its sales and marketing representatives transacting business in this state. The notification must be submitted not later than January 1 and July 1 of each year.

[ED. NOTE: Forms referenced are available from the agency.]

Stat. Auth.: ORS 731 & 750
Stats. Implemented: ORS 750.645(2)
Hist.: ID 4-1990, f. & cert. ef. 1-24-90; ID 19-2006, f. & cert. ef. 9-26-06

836-014-0035

Registration of Legal Expense Organization

A legal expense organization may not transact business in this state unless the organization holds a valid certificate of registration. An organization may apply for registration with the Director by submitting to the Director the following documents:

(1) A completed registration application. The registration application must be on the form prescribed by the Director.

(2) A statement designating a registered agent and a registered office. The statement must be on the form prescribed by the Director. The requirement under this section is in addition to the filing requirements of other law regarding designation of a registered office and registered agent in the State of Oregon for service of process, notice and demand.

(3) A list of its sales and marketing representatives. The names of the sales and marketing representatives must be submitted on the form prescribed by the Director in OAR 836-014-0030.

(4) A Financial Statement. The statement must follow the form prescribed by the Director in OAR 836-014-0015 and comply with 836-014-0015, except for the filing date.

(5) Copies of the following forms and related schedules used or to be used by the organization:

(a) The provider agreement forms used or to be used in this state;

(b) The membership agreement forms delivered or issued or to be delivered or issued in this state;

(c) The legal expense plan forms delivered or issued or to be delivered or issued in this state;

(d) The schedule of rates charged or to be charged members in this state for each type of agreement or plan.

(6) A marketing plan for conducting legal expense plan business in this state. The plan must include the following:

(a) The geographical area in which business is intended to be done in the first five years;

(b) The types of plans intended to be written in the first five years, including specification whether and to what extend indemnity rather than service benefits are to be provided;

(c) The proposed marketing methods;

(d) Data affirmatively demonstrating the anticipated income and expenses of the organization in the first five years, including, without limitation, the projected expenditures for legal services and the projected source of funds to make up any anticipated deficits. Except as provided in this subsection, the data must b documented and verified by an actuary or a person who has the background for the practice of actuarial science. If, however, the applicant legal expense organization provides or will provide service rather than indemnity benefits, the documentation and verification may be made instead by an executive employee of the applicant who has at least four years of experience in the design, pricing and administration of legal expense or similar plans. The executive employee must also document and certify in the application that the applicant has provider agreements in force, subject to issuance of a certificate of registration, adequate to provide the covered legal services throughout the geographic area in which business is intended to be done. The Director may require the applicant to furnish, in support of its application, publicly available data regarding the costs and benefits of comparable plans in this state and elsewhere.

(7) Evidence of the deposit or surety bond required by ORS 750.685 and in accordance with OAR 836-014-0020 or 836-014-0025.

(8) A statement of the incorporators, directors and officers, which provides the names of all incorporators and proposed directors and officers of the legal service organization, and all of their addresses and occupations for the preceding five years.

(9) A certified copy of the articles and by-laws, partnership agreement, or the association agreement and association by-laws.

(10) A copy of all contracts with principals including a copy of all agreements relating to the legal service organization to which any incorporator or proposed director or officer is a party.

(11) A statement of the amount and sources of the funds available for organization expenses and the proposed arrangements for reimbursement and compensation of incorporators or other persons.

(12) A statement of compensation of all principals and all corporate officers and directors, or partners, or other principal as it relates to the applicant's operation as a legal service organization.

[ED. NOTE: Forms referenced are available from the agency.]

Stat. Auth.: ORS 731 & 750
Stats. Implemented: ORS 750.515, 750.535 & 750.545
Hist.: ID 4-1990, f. & cert. ef. 1-24-90; ID 19-2006, f. & cert. ef. 9-26-06

836-014-0040

Amendments to Registration

(1) A legal service organization shall amend its registration in this state when any of the following events occur:

(a) The organization changes its principal place of business;

(b) The insurance or surety bond required for compliance with ORS 750.685 is cancelled or replaced;

(c) The organization experiences a material change in ownership under events defined in ORS 732.505 and 732.510.

(2) When a legal expense organization changes its principal place of business, the organization shall include the following in the amended registration:

(a) The street address, including city and state;

(b) The mailing address, if different;

(c) The telephone number.

(3) If an organization changes its registered office or agent, the organization must file a statement of the change with the Director on the form prescribed by the Director.

Stat. Auth.: ORS 731 & 750
Stats. Implemented: ORS 750.535 & 750.575
Hist.: ID 4-1990, f. & cert. ef. 1-24-90; ID 19-2006, f. & cert. ef. 9-26-06

836-014-0042

Renewal of Legal Expense Organization Registration

In order for an organization to renew its certificate of registration, the organization must apply for renewal by submitting a completed renewal application. The renewal application must be on the form prescribed by the Director. If mailed, the renewal application must be postmarked by the United States Postal Service not later than the expiration date of the registration.

Stat. Auth.: ORS 731 & 750
Stats. Implemented: ORS 750.515 & 750.565(2)
Hist.: ID 4-1990, f. & cert. ef. 1-24-90; ID 19-2006, f. & cert. ef. 9-26-06

836-014-0045

Unfair Trade Practice

Failure of a legal service organization to comply with OAR 836-014-0001 to 836-014-0045 is an unfair trade practice under ORS 746.240.

Stat. Auth.: ORS 731 & ORS 750
Stats. Implemented: ORS 750.240 & ORS 750.325(3)
Hist.: ID 4-1990, f. & cert. ef. 1-24-90

Multiple Employer Welfare Arrangements

836-014-0100

Actuarial Certification; Guidelines

(1) The actuarial opinion required by ORS 750.315 and 750.325 to be submitted annually must meet the requirements of this rule. The annual statement of a multiple employer welfare arrangement must include a certification prepared according to the requirements of this rule. Attached to page 1 of the annual statement must be the statement of a qualified actuary setting forth the opinion of the actuary relating to loss reserves, provision for experience rating refunds and any other actuarial items.

(2) An applicant for a certificate of multiple employer welfare arrangement must submit an actuarial opinion meeting the requirements of this rule in order to satisfy ORS 750.305(8) which requires proof of adequate reserves according to the requirements of ORS 750.315 to be submitted to the Director along with the application for the certificate of multiple employer welfare arrangement and other supporting materials. The actuarial opinion must be the statement of a qualified actuary setting forth the opinion of the actuary relating to loss reserves, provision for experience rating refunds and any other actuarial items.

(3) For purposes of this rule, a qualified actuary means a member in good standing of the American Academy of Actuaries, or a person recognized by the American Academy of Actuaries as qualified for such an actuarial valuation, or a person who otherwise has demonstrated competency in such an actuarial evaluation to the satisfaction of the Director.

(4) The statement of the actuary's opinion must consist of a paragraph identifying the actuary, a scope paragraph identifying the subjects on which an opinion is to be expressed and describing the scope of the actuary's work as provided in sections (7) to (9) of this rule, and an opinion paragraph expressing the opinion of the actuary with respect to such subjects as provided in sections (10) to (12) of this rule. The actuary may include one or more additional paragraphs in individual cases if the actuary considers it necessary to state a qualification of opinion or to explain some aspect of the annual statement that is not already sufficiently explained in the annual statement.

(5) The opening paragraph of the statement of opinion must generally indicate the relationship of the actuary to the multiple employer welfare arrangement as follows:

(a) For an actuary who is an employee of the multiple employer welfare arrangement, the opening paragraph of the opinion must contain a sentence such as: "I, (name and title of actuary), am an officer (employee) of the trust carrying on the business of (name of multiple welfare arrangement) and a member of the American Academy of Actuaries";

(b) For a consulting actuary, the opening paragraph of the statement of opinion must contain a sentence such as: "I, (name and title of consultant), am associated with the firm of (name of firm). I am a member of the American Academy of Actuaries and have been retained by the trust carrying on the business of (name of the multiple employer welfare arrangement) with regard to loss reserves, actuarial liabilities and related items";

(c) For a person other than a member of the American Academy of Actuaries, the opening paragraph of the opinion must contain a sentence such as:

(A) "I, (name and title), am an officer (employee) of the trust carrying on the business of (name of the multiple employer welfare arrangement) and I (SELECT ONE:) (have competency in actuarial valuations for organizations of this kind) -or- (am recognized by the American Academy of Actuaries as qualified to perform actuarial valuations for organizations of this kind)"; or

(B) "I, (name and title of consultant), am associated with the firm of (name of firm). I (SELECT ONE:) (have competency in actuarial valuations for organizations of this kind) -or- (am recognized by the American Academy of Actuaries as qualified to perform actuarial valuations for organizations of this kind) and have been retained by the trust carrying on the business of (name of multiple employer welfare arrangement) with regard to the valuation".

(6) Sections (7) to (11) and (13) are examples, for illustrative purposes, of language that in typical circumstances would be included in the remainder of the statement of opinion. The illustrative language must be modified as needed to meet the circumstances of a particular case. The actuary must in any case use language that clearly expresses the professional judgment of the actuary.

(7) The scope paragraph:

(a) Must contain a sentence such as the following: "I have examined the assumptions and methods used in determining loss reserves, actuarial liabilities and related items listed below, as shown in the annual statement of the organization as prepared for filing with state regulatory officials as of December 31, 19--".

(b) Must list those items and amounts with respect to which the actuary is expressing an opinion. The list must include but need not be limited to:

(A) Claims unpaid. Anticipated salvage and subrogation included as a reduction to Loss Reserves as reported in Underwriting and Investment Exhibit, and on Page 3 -- Liabilities, Surplus and Special Funds, Line 1 $________;

(B) Other actuarial liabilities. (Opinion, under this Item, with respect to actuarial liabilities, if any); and

(C) Premium items, such as receivables, due and unpaid, unearned, and paid in advance as they may relate to actuarial items.

(8) If the actuary has examined the underlying records or summaries, or both, the scope paragraph must also include a sentence such as the following: "My examination included such review of the assumptions and methods used and of the underlying basic records or summaries, or both, and such tests and calculations as I considered necessary".

(9) If the actuary has not examined the underlying records or summaries, or both, but has relied upon those prepared by the trust carrying on the business of the multiple employer welfare arrangement, the scope paragraph must include a sentence such as one of the following:

(a) "I relied upon underlying records or summaries, or both, prepared by the responsible officers or employees of the organizations. In other respects, my examination included such review of the assumptions and methods used and such tests of the calculations as I considered necessary";

(b) "I relied upon (name of firm) for the accuracy of the underlying records or summaries, or both. In other respects, my examination included such review of the underlying assumptions and methods used and such tests of the calculations as I considered necessary".

(10) The opinion paragraph must include a sentence the covers at least the points listed in the following illustration: "In my opinion, the amounts carried in the balance sheet on account of the items identified above:

"Are in accordance with accepted actuarial standards consistently applied and are fairly stated in accordance with sound actuarial principles,

"Are based on actuarial assumptions relevant to contract provisions and appropriate to the purpose for which the statement was prepared,

"Meet the requirements of the laws of (state of domicile),

"Make a good and sufficient provision for all unpaid claims and other actuarial liabilities of the organization under the terms of its contracts and agreements,

"Are computed on the basis of assumptions consistent with those used in computing thecorresponding items in the annual statement of the preceding year-end,

"Include appropriate provision for all actuarial items that ought to be established".

(11) If there has been any material change in the assumptions or methods, or both, from those previously employed, that change must be described in the statement of opinion by inserting a phrase such as: "A material change in assumptions (or methods, or both) was made during the past year but the change accords with accepted actuarial standards". A brief description of the change must follow. The adoption of new coverages requiring underlying assumptions that differ from assumptions used for prior coverages is not a change in assumption for purposes of this section.

(12) If the actuary is unable to form an opinion, the actuary must refuse to issue a statement of opinion. If the opinion is adverse of qualified, the actuary must issue an adverse or qualified opinion explicitly stating the reason or reasons for the opinion.

(13) If the actuary does not express an opinion as to the accuracy and completeness of underlying listings or summaries used in the evaluation of the actuary, there should be included on or attached to page 1 of the statement blank the statement of an officer or trustee of the trust or an accounting firm that prepared the underlying data similar to the following: "I (name of officer or trustee of trust), (title of officer or trustee), of (name and address of trust), (or accounting firm), hereby affirm that the listing and summaries of data prepared for and submitted to (name of actuary) were prepared under my direction and, to the best of my knowledge and believe, are accurate and complete".

Stat. Auth.: ORS 750.305, ORS 750.315 & 75.0325
Stats. Implemented: ORS 750.315(2)
Hist.: ID 11-1993(Temp), f. & cert. ef. 11-17-93; ID 3-1994, f. & cert. ef. 4-1-94

Life Settlements

836-014-0200

Statutory Authority and Implementation

(1) OAR 836-014-0200 to 836-014-0330 are adopted under the authority of ORS 731.244, 731.804, 744.331, 744.358 and 746.240 and section 20, chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973) for the purpose of implementing 744.326, 744.328, 744.331, 744.341 and 744.358 and sections 2, 5, 11 to 19 and 22, chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973).

(2) OAR 836-014-0205, 836-014-0226, 836-014-0263, 836-014-0285 and 836-014-0325, and the amendments to OAR 836-014-0200 to 836-014-0325 are operative on and after the date that they are filed with the Secretary of State.

Stat. Auth.: ORS 731.244, 744.331, 744.358
Stats. Implemented: ORS 744.326, 744.328, 744.331, 744.341, 744.358, Sec. 2, 5, 11–19 & 22, Ch. 711, OL 2009
Hist.: ID 3-1996, f. & cert. ef. 2-26-96; ID 15-2006, f. & cert. ef. 7-27-06; ID 1-2010, f. & cert. ef. 1-5-10

836-014-0205

Definitions

(1) In addition to the definitions set forth in section 2, chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973), as used in OAR 835-014-0200 to 836-014-0330:

(2) “Terminally ill” means having an illness or sickness that can reasonably be expected to result in death in 24 months or less, including but not limited to one or more of the following:

(a) A medical condition that will result in a drastically limited life span not exceeding 24 months.

(b) A medical condition that has required or requires extraordinary medical intervention, such as a major organ transplant or continuous artificial life support, without which the insured person would die.

(c) Any condition that usually requires continuous confinement in a nursing home, convalescent center or other care facility, if the insured person is expected to remain there for the rest of the insured person's life.

(d) A medical condition that in the absence of extensive or extraordinary medical treatment will result in a drastically limited life span. Such medical conditions include but are not limited to the following:

(A) Coronary artery disease resulting in an acute infarction or requiring surgery;

(B) Permanent neurological deficit resulting from cerebral vascular accident;

(C) End-stage renal failure; or

(D) Acquired Immune Deficiency Syndrome.

Stat. Auth.: ORS 731.244, 744.331, 744.358
Stats. Implemented: ORS 744.326, 744.328, 744.331, 744.341, 744.358
Hist.: ID 1-2010, f. & cert. ef. 1-5-10

836-014-0210

License Fees

(1) The fee for filing an application for a license to transact business as a life settlement provider is $400.

(2) The fee for annual renewal of a license to transact business as a life settlement provider is $200.

(3) The fee for filing an application for a license to transact business as a life settlement broker is $45.

(4) The fee for biennial renewal of a license to transact business as a life settlement broker is $45.

(5) The fee for filing an application for a license to transact business as a life settlement investment agent is $45.

(6) The fee for biennial renewal of a license to transact business as a life settlement investment agent is $45.

Stat. Auth.: ORS 731.244, 731.804, 744.331, 744.358
Stats. Implemented: ORS 744.326, 744.328, Sec. 5, Ch. 711, OL 2009
Hist.: ID 3-1996, f. & cert. ef. 2-26-96; ID 15-2006, f. & cert. ef. 7-27-06; ID 1-2010, f. & cert. ef. 1-5-10

836-014-0220

Life Settlement Provider License Requirements

(1) Any person, other than the owner of a life insurance policy, that enters into or effectuates a life settlement contract with an owner who is a resident of Oregon must obtain a life settlement provider license from the Department of Consumer and Business Services.

(2) In order for an applicant to qualify for authority to transact business as a life settlement provider the person must do all of the following:

(a) Demonstrate evidence of financial responsibility as follows:

(A) The applicant's assets must exceed its liabilities by an amount of not less than $150,000;

(B) The applicant must file with the Department of Consumer and Business Services a surety bond in the sum of $100,000 that meets the requirements of ORS 731.640; or

(C) The applicant must deposit with the Department of Consumer and Business Services the sum of $100,000 in cash, certificates of deposit or securities, or any combination of cash, certificates of deposit or securities.

(b) Submit a detailed plan of operation with the application that includes a description of the method for retaining records as required under ORS 744.346.

(c) Provide an anti-fraud plan that includes initiatives reasonably calculated to detect, prosecute and prevent fraudulent life settlement acts. The anti-fraud plan must include but need not be limited to:

(A) A provision for use of fraud investigators;

(B) A description of the procedures for detecting and investigating possible fraudulent life settlement acts and procedures to resolve material inconsistencies between medical records and insurance applications;

(C) Procedures for reporting possible fraudulent life settlement activities to the director;

(D) A plan for anti-fraud education and training of the provider’s staff and employees; and

(E) A description or organizational chart of the personnel responsible for implementing and maintaining the integrity of the anti-fraud plan.

(d) Demonstrate that procedures are in place to prevent any person convicted of a felony involving dishonesty or breach of trust to participate in the life settlement operations of the applicant.

(3) As a condition of maintaining a license to act as a life settlement provider, a life settlement provider must do all of the following:

(a)(A) At all times maintain assets that exceed its liabilities by an amount of not less than $150,000; or

(B) At all times maintain with the Department of Consumer and Business Services a surety bond or the deposit of cash, certificates of deposit or securities. The surety bond, cash or securities must meet the requirements of ORS 731.640 and must be in the sum of $100,000.

(b) Pay the annual provider renewal fee as specified in OAR 836-014-0210; and

(c) Submit to the Department of Consumer and Business Services a completed license renewal application on the form prescribed by the Department, not later than the 30th day after the anniversary date of the life settlement provider’s license.

(4) A bond filed or deposit made in this state under this rule shall be held for the faithful performance by the life settlement provider of all transactions of the provider subject to ORS 744.319 to 744.358.

(5) A life settlement provider license does not eliminate the need to obtain a securities license from the Department if a life settlement provider conducts life settlement transactions in a manner that would be considered an offer, sale, transfer or delivery of a security under the Oregon Securities Law.

Stat. Auth.: ORS 731.244, 744.358
Stats. Implemented: ORS 744.328
Hist.: ID 3-1996, f. & cert. ef. 2-26-96; ID 6-1996(Temp), f. & cert. ef. 5-8-96; ID 14-1996, f. & cert. ef. 11-1-96; ID 15-2006, f. & cert. ef. 7-27-06; ID 1-2010, f. & cert. ef. 1-5-10

836-014-0226

Life Settlement Investment Agent Licensing Requirements

(1) In order for an applicant to qualify to transact business as a life settlement investment agent, the person must pay the appropriate application fee under OAR 836-014-0210 and either:

(a) Demonstrate that the person has completed to the director’s satisfaction an examination of the Financial Industry Regulatory Authority (FINRA) that is Series 6 or Series 7; or

(b) Operates under the appropriate license from the equivalent chief insurance official of the state of residence of the life settlement purchaser whom the agent is negotiating with on behalf of a life settlement provider. If there is more than one purchaser of a single policy and the purchasers are residents of different states, the life settlement investment agent must be licensed by the state in which the purchaser having the largest percentage ownership resides, or if the purchasers hold equal ownership, the state of residence of one purchaser agreed upon in writing by all purchasers.

(2) A life settlement investment agent license does not eliminate the need to obtain a securities license from the Department if a life settlement investment agent conducts life settlement transactions in a manner that would be considered an offer, sale, transfer or delivery of a security under the Oregon Securities Law.

Stat. Auth.: ORS 731.244, 744.331, 744.358
Stats. Implemented: Sec. 5, Ch. 711, OL 2009
Hist.: ID 1-2010, f. & cert. ef. 1-5-10

836-014-0230

Renewal Requirements

(1) A licensee applying for renewal must do the following, as applicable:

(a) Submit a completed renewal application, on a form provided by the Director; and

(b) Submit the renewal fee.

(2) If a renewal application is submitted by mail, the renewal application must be postmarked by the United States Postal Service not later than the license expiration date.

(3) The Director may allow a licensee not more than 30 days to submit missing information on the renewal application form, if the fee has been submitted on or before the expiration date.

(4) The Director may request on the renewal application any information requested on the original application for a license.

Stat. Auth.: ORS 744.331
Stats. Implemented: ORS 744.331
Hist.: ID 3-1996, f. & cert. ef. 2-26-96; ID 15-2006, f. & cert. ef. 7-27-06

836-014-0240

Filing Requirements, Life Settlement Contracts and Disclosure Statement Forms; Promotional, Advertising and Marketing Materials

(1) An applicant for a license as a life settlement provider or life settlement broker must file with the Director a copy of each life settlement contract form and disclosure statement form that the applicant intends to use in business under the license.

(2) A life settlement provider or life settlement broker must file with the Director, prior to use in this state, any amendment to a previously-filed life settlement contract form or disclosure statement form and any new life settlement contract form or disclosure statement form.

(3) Contract forms and amendments thereto and disclosure statement forms and amendments thereto are subject to approval prior to use in this state, as provided in ORS 744.341.

(4) Each form of life settlement contract filed with the Director must contain all of the following:

(a) A life settlement contract, completed in John Doe fashion;

(b) A copy of a policyholder's or certificate holder's application, completed in John Doe fashion; and

(c) A copy of the disclosure statement form that will be provided to a policyholder or certificate holder as required by section 11, chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973) and 836-014-0280.

(5) A life settlement contract form or a disclosure statement form is subject to disapproval by the Director:

(a) If the Director finds it does not comply with the law;

(b) If the Director finds it contains any provision or has any description of its contents, title, heading or other indication of its provisions, that is unintelligible, uncertain, ambiguous or abstruse, or likely to mislead a person to whom the contract is offered or with whom the contract is made;

(c) If, in the Director's judgment, its use would be prejudicial to the interest of the persons with whom the life settlement provider contracts; or

(d) If the Director finds it contains provisions that are unjust, unfair or inequitable.

(6) A life settlement provider must file with the Director, prior to use in this state, any promotional, advertising and marketing materials related to a life settlement contract used in this state.

Stat. Auth.: ORS 744.358
Stats. Implemented: ORS 744.326, 744.341, Sec. 11 & 15, Ch. 711, OL 2009
Hist.: ID 3-1996, f. & cert. ef. 2-26-96; ID 15-2006, f. & cert. ef. 7-27-06; ID 1-2010, f. & cert. ef. 1-5-10

836-014-0250

Contents of Life Settlement Contracts

(1) In addition to the requirements of ORS 744.341, each life settlement contract must be in writing, in a type size of not less than 12 points, and written in clear, understandable and straightforward wording.

(2) A life settlement contract may not contain any limitation or restriction on the use of the proceeds by the policyholder or certificate holder.

(3) Each life settlement contract shall specify any effect that entering into the contract will have upon the continuation or continued availability of supplemental benefits or riders that are or may be attached to the life insurance policy that is the subject of the life settlement contract, including assignment of the responsibility for the continued payment of premiums. The contract must require the provider to pay the premium on supplemental benefits and riders added to the policy before the life settlement contract was entered, when so elected according to OAR 836-014-0260, and must require the provider to notify the former policyholder or certificate holder of any option that may arise to select any supplemental benefits or riders. The benefits and riders considered shall include, but need not be limited to, the following:

(a) Guaranteed insurability options;

(b) Accidental death benefits, or accidental death and dismemberment benefits;

(c) Disability income or loss of income protection; and

(d) Family, spousal or children's riders or benefits.

(4) The life settlement contract must provide for rescission by the policyholder or certificate holder entering the life settlement contract as set forth in ORS 744.341. The rescission provision must appear on the first page of the contract. The rescission period specified in 744.341 may not be less than 60 days after the date on which the contract is executed by all parties or less than 30 days after the date on which the policyholder or certificate holder receives the life settlement proceeds, whichever is the lesser period. The rescission provision must also provide that if the insured dies during the period of time for rescission:

(a) The contract is rescinded effective on the date of application; and

(b) The provider will return the amount by which the insurance proceeds according to the terms of the policy exceed the compensation paid by the provider pursuant to the life settlement contract and any premiums paid by the provider on the policy so that all parties, including any beneficiaries, are returned to their original positions under the insurance policy.

(5) A life settlement contract must provide a method for giving notice of rescission, including but not limited to the address or addresses to which the rescission notice must be sent, and a telephone number that the insured may call for information.

(6) All life settlement contracts, purchase agreement forms and applications for life settlements must contain the following statement or a substantially similar statement approved by the Director: “Any person who knowingly presents false information in this application is guilty of a crime and may be subject to fines and confinement in prison.”

Stat. Auth.: ORS 744.358
Stats. Implemented: ORS 744.341
Hist.: ID 3-1996, f. & cert. ef. 2-26-96; ID 14-1997, f. & cert. ef. 10-17-97; ID 15-2006, f. & cert. ef. 7-27-06; ID 1-2010, f. & cert. ef. 1-5-10

836-014-0260

Rights and Duties of Parties to Life Settlement Contract

(1) A policyholder or certificate holder who has entered a life settlement contract has the right to retain additional benefits or optional riders that were part of the life insurance policy, including but not limited to disability income, accidental death and dismemberment and spouse, children and family riders, but not including term riders. Any premiums payable on the insurance policy or certificate that is the subject of the life settlement contract, including premiums payable for additional benefits retained at the option of the policyholder or certificate holder, shall be paid by the life settlement provider when due, for the remaining duration of the life that is the subject of the life settlement contract.

(2) Except as provided in this section (2), any additional benefit or optional rider that the policyholder or certificate holder elects not to continue must be terminated when the life settlement takes place. A waiver of premium provision may be continued by the life settlement provider.

(3) The life settlement provider does not have the right to any cash surrender value unless all additional benefits retained by the policyholder or certificate holder, whether by rider or endorsement, are in a paid-up status and will be unaffected by any change in cash surrender value.

(4) The life settlement provider shall make the payment of proceeds of a life settlement to an escrow agent as required in Section 13, chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973) by means of wire transfer or by cashier's check.

(5) Any policyholder or certificate holder who enters into a life settlement contract has the right to rescind the contract not later than the 60th day after the date on which the contract is executed by all parties or not later than the 30th day after the date the policyholder or certificate holder receives the life settlement proceeds, whichever is the lesser period. Not later than the date on which the life settlement proceeds are paid to the policyholder or certificate holder, the life settlement provider must give the policyholder or certificate holder a written statement of the date on which the rescission period expires. The statement must include a notice to the policyholder or certificate holder that a rescission is not complete until the full payment, including any premiums paid by the life settlement provider, is returned to the life settlement provider and that the full payment must be returned not later than the 30th day after the date specified for expiration of the rescission period.

(6) If the statement required in section (5) of this rule is given by mail, it shall be considered to be given when deposited in the United States mail, first class postage prepaid.

(7) If notice of rescission is given by mail, it shall be considered to be given when deposited in the United States mail, first class postage prepaid.

(8) A life settlement broker represents exclusively the owner, and not the insurer or the life settlement provider, and owes a fiduciary duty to the owner, including a duty to act according to the owner’s instructions and in the best interest of the owner.

(9) The life settlement investment agent does not have the right to have any contact with the owner or insured under a policy or to any knowledge of the identity of the owner or insured.

Stat. Auth.: ORS 744.358
Stats. Implemented: ORS 744.341, Sec. 11, Ch. 711, OL 2009
Hist.: ID 3-1996, f. & cert. ef. 2-26-96; ID 14-1997, f. & cert. ef. 10-17-97; ID 15-2006, f. & cert. ef. 7-27-06; ID 1-2010, f. & cert. ef. 1-5-10

836-014-0263

Request to Insurer for Verification of Coverage

(1) The life settlement provider or broker shall submit in writing a request for verification of coverage from the insurer on the status of the life insurance policy or certificate of a policyholder. The request shall be in the form illustrated on the Insurance Division website, or a similar form approved by the Director and shall be accompanied by an instruction executed by the policyholder or certificate holder authorizing the insurer to release the specified information referred to in this section to the life settlement provider or to the life settlement broker.

(2) A life settlement provider or broker who submits a request under section (1) of this rule must state in the request that the provider or broker is licensed as a life settlement provider in this state and must disclose its license number.

Stat. Auth.: ORS 731.244, 744.331, 744.358
Stats. Implemented: ORS 744.326, 744.328, 744.331, 744.341, 744.358, Sec. 13, Ch. 711, OL 2009
Hist.: ID 1-2010, f. & cert. ef. 1-5-10

836-014-0265

Response by Insurer

(1) An insurer shall provide information requested by a life settlement provider or life settlement broker on the status of the life insurance policy or certificate of a policyholder or certificate holder within 30 calendar days after the insurer receives the request for verification of coverage.

(2) Nothing in this rule prohibits a certificate holder from assigning rights or benefits under the certificate to a licensed life settlement provider if assignment is allowed in the group policy, or from converting the coverage to an individual life insurance policy as provided by law and any applicable terms of the group policy.

Stat. Auth.: ORS 731.244, 744.358
Stats. Implemented: ORS 744.358
Hist.: ID 14-1997, f. & cert. ef. 10-17-97; ID 15-2006, f. & cert. ef. 7-27-06; ID 1-2010, f. & cert. ef. 1-5-10

836-014-0270

Standards for Evaluation of Reasonable Payments; Definition of “Terminal Illness or Condition”

(1) If the insured is terminally ill or chronically ill, payments under life settlement contracts must be fair and equitable and may not in any event be less than the following: Insured's Life Expectancy — Minimum Percentage of Face Value Less Outstanding Loans Received by Policyholder or Certificate Holder

(a) Less than six months — 85 percent;

(b) At least six but less than 12 months — 80 percent;

(c) At least 12 but less than 18 months — 75 percent;

(d) At least 18 but less than 24 months — 70 percent;

(2) If the insured is chronically ill, payments under life settlement contracts must be fair and equitable and may not in any event be less than the following: Insured's Life Expectancy — Minimum Percentage of Face Value Less Outstanding Loans Received by Policyholder or Certificate Holder

(a) At least 24 but less than 36 months — 60 percent;

(b) 36 months or more – The insured must receive at least the greater of:

(A) 50 percent;

(B) The cash surrender value; or

(C) The accelerated death benefit in the policy.

(3) If the insured is not terminally ill or chronically ill, the owner must receive a reasonable return for entering into a life settlement agreement. The life settlement contract shall not provide a payment to the insured that is unreasonable or unjust. In determining whether a payment is unreasonable or unjust, the Director may consider the following factors:

(a) The face amount being purchased;

(b) Any policy loan in effect on the policy being purchased;

(c) The life expectancy of the insured at the time of purchase;

(d) The age of the insured at the time of purchase;

(e) The future premiums that must be paid to minimally keep the policy in force;

(f) The cash surrender value or accelerated death benefit available from the policy;

(g) The method for allocating internal costs relating directly to the acquisition of this policy;

(h) The payment of any commission, fee or other expense to a life settlement broker or any other external party;

(i) If known, any future interest payments due for funds borrowed to purchase this policy;

(j) The applicable rating at the time of purchase of the insurance company that issued the policy by a rating service generally recognized by the insurance industry, regulators and consumer groups;

(k) Whether the policy is within the contestable period; and

(l) Other factors that the Director considers relevant.

(4) A payment may be reduced by the minimum premium required under sections (1) or (2) of this rule to keep the contract in force for the duration of the remaining life expectancy of the life that is the subject of the life settlement contract. The minimum premium includes any premiums payable for additional benefits retained at the option of the policyholder or certificate holder. Other than this allowable reduction in payment, there shall be no other retention for expenses or broker's fees that would reduce payments below the minimum levels established in sections (1) or (2) of this rule.

(5) The estimated life expectancy of an insured person must be determined according to sound actuarial principles or other sound methodology acceptable to the director.

Stat. Auth.: ORS 744.358
Stats. Implemented: ORS 744.338, 744.358
Hist.: ID 3-1996, f. & cert. ef. 2-26-96; ID 14-1997, f. & cert. ef. 10-17-97; ID 15-2006, f. & cert. ef. 7-27-06; ID 1-2010, f. & cert. ef. 1-5-10

836-014-0280

Disclosure Required

(1) With an application for a life settlement, a life settlement provider or life settlement broker shall disclose the information specified in section 11, chapter 711, 2009 Oregon Laws (Enrolled Senate Bill 973) in a disclosure statement in a form approved by the director. The statement must be in not less than 12 point type. An example of the form of the disclosure statement will be displayed on the Insurance Division website and the director may update names, telephone numbers and similar information from time to time as necessary. A life settlement broker shall disclose to the insured in writing any relationship required to be disclosed to an owner under section 15, chapter 711, Oregon Laws 2009 prior to effectuating a life settlement contract. The form of the disclosure statement shall be approved by the director.

(2) For each life settlement contract entered into by a life settlement provider, the provider must keep a copy of the disclosure statement in the provider's file on the contract, along with an affidavit signed by the provider showing the date the statement was delivered to and signed by the policyholder or insured and the life settlement provider or life settlement broker and attesting to the provider's belief that the policyholder or insured had an opportunity to read and understand the statement. The provider must also send a copy of the statement and the signed affidavit to the life settlement broker.

(3) The disclosures required under section (1) of this rule must be provided in a separate document that is signed by the owner or insured and the life settlement provider or life settlement broker, and must provide the following information:

(a) All information required by section 11(1), chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973);

(b) The brochure required by section 11(2), chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973); and

(c) An explanation of the ability of the life settlement provider and the life settlement broker to contact the insured for the purpose of determining the health status of the insured after the life settlement occurs, and the frequency at which those contacts may occur.

(4) No later than the date the life settlement contract is signed by all parties, a life settlement provider shall provide the owner and insured with at least the disclosures required under section 11(3), chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973). The disclosures shall be conspicuously displayed in the life settlement contract or in a separate document signed by the owner or insured.

(5) If the life settlement provider transfers ownership or changes the beneficiary of the insurance policy, the provider shall communicate in writing the change in ownership or beneficiary to the insured within 20 days after the change. Any subsequent life settlement purchaser that transfers ownership or changes the beneficiary shall notify the person identified by the life settlement provider under section 11(7)(h), chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973) in order that the life settlement provider may again notify the insured of the subsequent change in ownership or beneficiary.

(6) Prior to the date the life settlement purchase agreement is signed by all parties, a life settlement provider or its life settlement investment agent shall provide the life settlement purchaser with at least the following disclosures. The disclosures must be conspicuously displayed in any life purchase contract or in a separate document signed by the life settlement purchaser and life settlement provider or life settlement investment agent, and must include the following:

(a) The disclosures required by section 11(5), chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973); and

(b) A brochure describing the process of investment in life settlements in a form approved by the director. The director shall review the form to determine whether the form is sufficiently similar to the brochure as illustrated on the Insurance Division website.

(7) No later than at the time of the assignment, transfer or sale of all or a portion of an insurance policy, a life settlement provider or its life settlement investment agent shall provide the life settlement purchaser with at least the disclosures required by section 11(7), chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973).

(8) A life settlement broker shall retain for five years a copy of a disclosure statement given to a person under section (3) of this rule that is signed by the person, in the broker's files.

(9) A life settlement broker to whom a copy of a disclosure statement and signed affidavit is sent by the life settlement provider must retain for five years the copies in the broker's files on the contract.

(10) A life settlement provider shall not enter a life settlement contract affecting a life insurance policy issued by an insurer with which the life settlement provider is affiliated or of which the life settlement provider is a subsidiary, unless the relationship between the insurer and the life settlement provider is fully disclosed, in writing, to the policyholder or certificate holder.

Stat. Auth.: ORS 744.358
Stats. Implemented: Sec 10, 11 & 15, Ch. 711, OL 2009
Hist.: ID 3-1996, f. & cert. ef. 2-26-96; ID 14-1997, f. & cert. ef. 10-17-97; ID 15-2006, f. & cert. ef. 7-27-06; ID 1-2010, f. & cert. ef. 1-5-10

836-014-0285

Disclosures to Insurer

Before initiating a plan, transaction or series of transactions, a life settlement broker or life settlement provider shall fully disclose to an insurer the plan, transaction or series of transactions to which the life settlement broker or life settlement provider is a party, to originate, renew, continue or finance a life insurance policy with the insurer for the purpose of engaging in the business of life settlements at anytime prior to, or during the first five years after, issuance of the policy.

Stat. Auth.: ORS 731.244, 744.331, 744.358
Stats. Implemented: ORS 744.326, 744.328, 744.331, 744.341, 744.358, section 12, chapter 711, Oregon Laws 2009
Hist.: ID 1-2010, f. & cert. ef. 1-5-10

836-014-0290

Contacts by Life Settlement Provider or Broker

(1) After a life settlement provider has entered into a life settlement contract, neither the life settlement provider nor the life settlement broker may make contact with the insured:

(a) More frequently than once every three months if the insured has a life expectancy of more than one year; and

(b) More frequently than twice each month if the insured has a life expectancy of one year or less.

(2) The life settlement provider shall explain the procedure for contacts authorized in section (1) of this rule to the insured when the life settlement contract is entered into.

(3) The limitation in this rule on contacts by a life settlement provider or life settlement broker does not apply to contacts initiated by the policyholder, certificate holder or insured, to contacts required to inform the insured of any transfer of ownership under OAR 836-014-0280(5) or for keeping the life insurance policy in force.

(4) The disclosure statement required under OAR 836-014-0280 must include a clear description of the permitted contacts with an insured allowed under section (1) of this rule including an explanation of the purpose of such subsequent contacts.

Stat. Auth.: ORS 744.358
Stats. Implemented: ORS 744.358, Sec. 11, Ch. 711, OL 2009
Hist.: ID 3-1996, f. & cert. ef. 2-26-96; ID 14-1997, f. & cert. ef. 10-17-97; ID 15-2006, f. & cert. ef. 7-27-06; ID 1-2010, f. & cert. ef. 1-5-10

836-014-0300

Advertising Standards

(1) Advertising related to life settlement contracts, life settlement purchase agreements or related products or services must be truthful and not misleading by fact or implication.

(2) If a life settlement provider or broker mentions the speed with which the life settlement will occur, the advertising must disclose the average time from completed application to the date of offer and from acceptance of the offer to receipt of the funds by the policyholder or certificate holder during the past six months.

(3) If advertising of a life settlement contract mentions the dollar amounts available to policyholders and certificate holders, the advertising must disclose the average purchase price with regard to a particular life expectancy as a percent of face value paid to policyholders and certificate holders contracting with the life settlement provider or broker during the past six months and must disclose factors that go into determining the specific amounts charged.

Stat. Auth.: ORS 744.358
Stats. Implemented: ORS 744.358
Hist.: ID 3-1996, f. & cert. ef. 2-26-96; ID 15-2006, f. & cert. ef. 7-27-06; ID 1-2010, f. & cert. ef. 1-5-10

836-014-0310

Reporting Requirements

(1) On or before March 1 of each year, a life settlement provider shall file an annual statement with the director. The information provided in the statement shall be limited to those transactions for which the owner is a resident of Oregon. The statement shall include at a minimum:

(a) Total number and aggregate face amount and life settlement proceeds of policies settled during the immediately preceding calendar year;

(b) A breakdown of the information by policy issue year;

(c) The names of the insurance companies whose policies have been settled; and

(d) The life settlement brokers who have settled the policies.

(2) For each policy for which a life settlement contract has been entered into during the preceding calendar year or that was entered into prior to the preceding calendar year and for which deaths had not yet been reported as of the beginning of the preceding year:

(a) The date the life settlement contract was entered into;

(b) The life expectancy of the insured at the time of the contract;

(c) The face amount of the policy.

(d) The amount paid by the life settlement provider for purposes of making a life settlement on the policy and the percentage that amount represents of the face amount;

(e) If the insured has died:

(A) The date of death; and

(B) The total insurance premiums paid by the life settlement provider to maintain the policy in force; and

(f) The amount of commission paid by the life settlement provider to the life settlement broker.

(3) The annual statement required under section (1) of this rule also shall include a breakdown, by disease category, of applications, received, accepted and rejected during the preceding calendar year.

Stat. Auth.: ORS 744.342, 744.358
Stats. Implemented: ORS 744.342
Hist.: ID 3-1996, f. & cert. ef. 2-26-96; ID 15-2006, f. & cert. ef. 7-27-06; ID 1-2010, f. & cert. ef. 1-5-10

836-014-0320

Requirements for Brokers

(1) A life settlement broker may not seek or obtain any compensation from the policyholder or certificate holder without the written agreement of the policyholder or certificate holder obtained before the broker performs any services in connection with the life settlement.

(2)(a) Unless convicted of a felony as described in section 17(2), chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973), a life insurance producer meets the licensing requirements of this section and is permitted to operate as a life settlement broker in this state if the producer has been duly licensed:

(A) As a resident insurance producer with a life line of authority in this state for at least one year; or

(B) In the producer’s home state for at least one year and is licensed as a nonresident producer in this state.

(b) A life insurance producer qualified to operate as a life settlement broker under this section must:

(A) Not later than 30 days from the date the producer first acts as a life settlement broker, submit an application for a life settlement broker license;

(B) Have in place an anti-fraud plan as required by section 17(10), chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973); and

(C) Comply with all other requirements of ORS 744.319 to 744.358 pertaining to acting as a life settlement broker.

(3) A life settlement broker may not also be licensed as a life settlement investment agent.

(4) The anti-fraud plan required under this rule must include initiative reasonably calculated to detect, prosecute and prevent fraudulent life settlement acts. The anti-fraud plan must include but need not be limited to:

(a) A provision for use of fraud investigators;

(b) A description of the procedures for detecting and investigating possible fraudulent life settlement acts and procedures to resolve material inconsistencies between medical records and insurance applications;

(c) Procedures for reporting possible fraudulent life settlement activities to the director;

(d) A plan for anti-fraud education and training of the broker’s staff and employees; and

(e) A description or organizational chart of the personnel responsible for implementing and maintaining the integrity of the anti-fraud plan.

(f) A demonstration that procedures are in place to prevent any person convicted of a felony involving dishonesty or breach of trust to participate in the life settlement operations of the applicant.

Stat. Auth.: ORS 744.358
Stats. Implemented: ORS 744.358, 744.323, Sec. 17, Ch. 711, OL 2009
Hist.: ID 3-1996, f. & cert. ef. 2-26-96; ID 15-2006, f. & cert. ef. 7-27-06; ID 1-2010, f. & cert. ef. 1-5-10

836-014-0325

Disclosures Required by Life Insurers

(1) With respect to each policy issued by an insurance company, the insurance company shall provide notice to the owner of an individual life insurance policy when the insured person under such a policy is 60 years of age or older, and:

(a) The life insurance company receives notice from such an owner of a request to surrender, in whole or in part, an individual policy;

(b) The life insurance company receives notice from such an owner of a request to receive an accelerated death benefit under an individual policy; or

(c) The life insurance company sends to such an owner all notices of lapse of an individual policy, other than a term policy.

(2)(a) The notice must consist of the following statement in large, bold or otherwise conspicuous typeface calculated to draw the eye: “Life insurance is a critical part of a broader financial plan. There are many options available, and you have the right to shop suited to your needs.” The notice may include the contact information for the Department of Consumer and Business Services as suggested in Exhibit 1 to this rule or in a form similar to the notice in Exhibit 1 to this rule. The director may update the names, telephone numbers, website information and similar information in Exhibit 1 from time to time as necessary.

(b) If the notice does not include the contact information for the department, the communication of the notice must also contain a statement advising the recipient that the recipient may contact the Insurance Division of the Department of Consumer and Business Services for more information. The insurer shall direct the recipient of the communication to either contact the Insurance Division Consumer Advocacy Unit at its toll free telephone number or visit the Division’s website at the website address currently provided by the Division as Exhibit 1 to this rule as may be updated from time to time on the Division website.

Stat. Auth.: ORS 731.244, 744.331, 744.358
Stats. Implemented: ORS 744.326, 744.328, 744.331, 744.341, 744.358, Sec. 22, Ch. 711, OL 2009
Hist.: ID 1-2010, f. & cert. ef. 1-5-10

836-014-0330

Unfair Trade Practices

(1) Violation of any provision of OAR 836-014-0270, 836-014-0280, 836-014-0290, 836-014-0300 or 836-014-0310 is an unfair trade practice for purposes of ORS 746.240.

(2) The provisions of OAR 836-014-0200 to 836-014-0330 are in addition to applicable provisions of ORS chapter 746, governing trade practices.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 746.240
Hist.: ID 3-1996, f. & cert. ef. 2-26-96

836-014-0400

Market Assistance Plan

(1) Insurers that are authorized to write commercial general liability insurance relating to construction contractors and are writing that coverage shall form a market assistance plan to assist businesses and service providers unable to purchase the coverage in adequate amounts from either the admitted or nonadmitted market. For the purpose of this rule, commercial general liability insurance is a class of commercial liability insurance.

(2) Except as provided in section (3) of this rule, the market assistance plan established under this rule shall operate under the plan of operation prepared pursuant to ORS 735.210(2) and approved by the Director on July 26, 2004.

(3) At the request of the Director, for the purpose of implementing the purpose of the market assistance plan under section (1) of this rule, the insurers that formed the market assistance plan may modify the plan and the plan of operation described in section (2) of this rule, subject to approval of the modification by the Director.

Stat. Auth.: ORS 731.244 & 735.210
Stats. Implemented: ORS 735.210
Hist.: ID 8-2004(Temp), f. & cert. ef. 10-12-04 thru 3-20-05; ID 1-2005, f. 3-1-05, cert. ef. 3-21-05

The official copy of an Oregon Administrative Rule is contained in the Administrative Order filed at the Archives Division, 800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the published version are satisfied in favor of the Administrative Order. The Oregon Administrative Rules and the Oregon Bulletin are copyrighted by the Oregon Secretary of State. Terms and Conditions of Use

Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • oregon.sos@state.or.us

© 2013 State of Oregon All Rights Reserved​