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The Oregon Administrative Rules contain OARs filed through November 15, 2014
 
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DEPARTMENT OF CONSUMER AND BUSINESS SERVICES,
INSURANCE DIVISION

 

DIVISION 28

PURCHASING GROUPS AND RISK RETENTION GROUPS

 

836-028-0005

Statutory Authority, Purpose

OAR 836-028-0005 to 836-028-0045 are adopted pursuant to ORS 731.244 and 735.360 in order to carry out the Oregon Liability Risk Retention Law and to protect the insurance-buying public.

Stat. Auth.: ORS 731, ORS 735 & ORS 746
Stats. Implemented: ORS 735.300 - ORS 735.365
Hist.: IC 7-1988, f. & cert. ef. 4-14-88; ID 19-1988, f. & cert. ef. 12-6-88

836-028-0008

Unfair Trade Practice

Failure of a purchasing group to comply with OAR 836-028-0013 or 836-028-0020 is an unfair trade practice under ORS 746.240.

Stat. Auth.: ORS 731, ORS 731 & ORS 746
Stats. Implemented: ORS 746.240
Hist.: IC 7-1988, f. & cert. ef. 4-14-88; ID 19-1988, f. & cert. ef. 12-6-88

836-028-0010

Registration of Purchasing Groups; Forms

Before doing business in this state, a purchasing group shall notify and register with the Director by completing and submitting to the Director the following documents:

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

(2) An appointment of the Director as the agent for service of legal documents for the purchasing group. The appointment must be made on the form prescribed by the Director.

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

Stat. Auth.: ORS 731, 735 & 746
Stats. Implemented: ORS 735.330
Hist.: IC 7-1988, f. & cert. ef. 4-14-88; ID 19-1988, f. & cert. ef. 12-6-88; ID 19-2006, f. & cert. ef. 9-26-06

836-028-0013

Permitted Insurers

A purchasing group may not purchase insurance from a risk retention group or an insurer for members of the purchasing group in this state:

(1) Unless the risk retention group is registered in this state.

(2) Unless the insurer is authorized to transact insurance in this state or is an eligible nonadmitted insurer under ORS 735.415.

Stat. Auth.: ORS 731, ORS 735 & ORS 746
Stats. Implemented: ORS 735.335
Hist.: ID 19-1988, f. & cert. ef. 12-6-88

836-028-0016

Amendments to Registration by Purchasing Group

(1) A purchasing group shall amend its registration in this state when the purchasing group changes any of the following.

(a) The principal place of business of the purchasing group;

(b) The insurer or risk retention group from whom coverage is purchased;

(c) The lines or classifications of liability insurance that the purchasing group purchases.

(2) When a purchasing group changes its principal place of business, the purchasing group 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.

Stat. Auth.: ORS 731, ORS 735 & ORS 746
Stats. Implemented: ORS 735.330(1)(e)
Hist.: IC 7-1988, f. & cert. ef. 4-14-88

836-028-0020

Use of Insurance Producers by Purchasing Groups

A purchasing group shall employ an insurance producer to procure insurance for its members in Oregon. Such an insurance producer:

(1) Must hold a current insurance producer's license issued by the Insurance Division, in order to transact insurance in Oregon; or

(2) Must hold a current surplus line licensee's license issued under the Oregon Surplus Lines Law, in order to place business with a surplus lines insurer.

Stat. Auth.: ORS 731, 735 & 746
Stats. Implemented: ORS 735.350
Hist.: ID 19-1988, f. & cert. ef. 12-6-88; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-028-0035

Registration of Foreign Risk Retention Groups; Forms

Before doing business in this state, a risk retention group chartered in a state other than this state shall submit to the Director the following documents:

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

(2) A plan of operation or feasibility study, certified by the state of domicile or incorporation.

(3) A copy of the most recent financial statement of the risk retention group, certified by the state of domicile or incorporation, with evidence that the financial statement was certified by an independent certified public account.

(4) A statement of opinion on loss and loss adjustment expense reserves, certified by a member of the American Academy of Actuaries or by a loss reserve specialist qualified under criteria established by the National Association of Insurance Commissioners as of the effective date of this rule.

(5) A copy of the most recent examination report conducted by the Insurance Department of the state of domicile or incorporation.

(6) An appointment of the Director as the agent for services of legal documents for the risk retention group. The appointment must be made on the form prescribed by the Director.

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

Stat. Auth.: ORS 731, 735 & 746
Stats. Implemented: ORS 735.315
Hist.: IC 7-1988, f. & cert. ef. 4-14-88; ID 19-2006, f. & cert. ef. 9-26-06

836-028-0040

Amendments to Registration by Foreign Retention Groups

When a foreign risk retention group changes its principal place of business, the group shall amend its registration in this state to show, with respect to the new principal place of business:

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

(2) The mailing address, if different;

(3) The telephone number.

Stat. Auth.: ORS 731, ORS 735 & ORS 746
Stats. Implemented: ORS 735.315(2)(d)
Hist.: IC 7-1988, f. & cert. ef. 4-14-88

836-028-0045

Financial Statement of Foreign Risk Retention Group; Audit

(1) Not later than the date on which the financial statement of a foreign risk retention group doing business in this state is due in its state of domicile, the group shall submit a copy of that financial statement to the Director.

(2) When an audit or examination is performed with respect to a foreign risk retention group doing business in this state, the group shall file a copy of the report of the audit or examination with the Director.

Stat. Auth.: ORS 731, ORS 735 & ORS 746
Stats. Implemented: ORS 735.315(2)(a)-ORS 735.315(c)
Hist.: IC 7-1988, f. & cert. ef. 4-14-88

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