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

 

DIVISION 71

INSURANCE LICENSING

Insurance Producers, Adjusters and Insurance Consultants

836-071-0101

Adjuster and Insurance Consultant License Application; Required Information

(1) In addition to information required under ORS 744.001, an applicant for an adjuster or insurance consultant license shall provide the following information relating to the applicant, as applicable on the application form:

(a) Date and place of birth;

(b) Duration of employment in insurance. Include the beginning and ending dates and the names and addresses of each employer and prior places of business in the insurance industry;

(c) All states and provinces of Canada in which the applicant currently holds a license to engage in the transaction of insurance, or has held such a license within ten years prior to the date of the application;

(d) Any assumed business name or alias ever used;

(e) Whether any firm or corporation of which the applicant is or has been a member, officer or director has ever filed for bankruptcy or been adjudged a bankrupt;

(f) The Social Security number of the applicant; and

(g) If the applicant is a firm or corporation, the name of all current officers, directors and stockholders who own more than ten percent of any class of equity security of the applicant.

(2) An applicant for a resident adjuster or insurance consultant license who is or has been licensed as a resident producer, adjuster or insurance consultant in another state or a province of Canada within five years prior to the date of application shall include with the application a statement that the resident license is inactive or no longer valid from the insurance department of the state or province in which the applicant is or was last authorized to transact insurance.

(3) An applicant for a non-resident adjuster or insurance consultant license who is licensed as a resident producer, adjuster or insurance consultant in another state or province of Canada shall include with the application a statement of current licensure from the insurance department of the state or province in which the applicant was authorized to transact insurance as a resident licensee. The statement must indicate that the applicant has a current license for the class or classes of insurance that are being applied for in Oregon. The statement must be dated not earlier than the 90th day prior to the date of application. The exemption to the adjuster licensing examination in ORS 744.535(2) applies only to non-resident adjuster licensing.

(4) The Director may collect Social Security numbers submitted in applications under this rule and may use a Social Security number of an individual when authorized to do so for the purposes specified in this section. In addition to the governmental uses for which a Social Security number is required in an application under federal and state law, when authorized by the holder of a Social Security number, the Director may use a Social Security number for any of the following purposes:

(a) As an identification number in maintaining records and reporting grades or examination scores;

(b) For licensing purposes; and

(c) For use by other government agencies to carry out their statutory duties.

(5) An applicant may voluntarily allow the Director to use the Social Security number of the applicant, as the Director may request in the application form, for the purposes specified in section (4) of this rule. Refusal to voluntarily allow such use of the Social Security number will not result in the denial of any individual right, benefit or privilege provided by law. The use authorized by an applicant is in addition to uses authorized by state and federal law for which collection of Social Security numbers is mandatory.

Stat. Auth.: ORS 731.244 & ORS 744.001
Stats. Implemented: ORS 744.001, ORS 744.002, & ORS 744.535
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 15-1996, f. & cert. ef. 11-12-96; ID 9-2002, f. & cert. ef. 3-18-02; ID 2-2010, f. 1-8-10, cert. ef. 2-1-10

836-071-0105

Additional Application Information

During the review of an application, the Director may require court documents, letters of recommendation and any other information that the Director determines will assist consideration of the application.

Stat. Auth.: ORS 731 & ORS 744
Stats. Implemented:
Hist.: ID 3-1990, f. & cert. ef. 1-19-90

836-071-0108

Limited Class Insurance Licenses

For the purpose of ORS 744.062, the Director establishes the following classifications for limited class insurance licenses, for use on and after July 1, 2005:

(1) Under a "limited class credit insurance" license, the licensee may transact the following classes of insurance when the insurance is offered in connection with an extension of credit that is limited to partially or wholly extinguishing that credit obligation:

(a) Credit life insurance. Under this class, an insurance producer may transact credit life insurance as approved under ORS 743.371(1).

(b) Credit health insurance. Under this class an insurance producer may transact credit health insurance as approved under ORS 743.371(2).

(c) Credit unemployment and involuntary unemployment insurance. Under this class an insurance producer may transact approved liability coverage for unemployment.

(d) Credit property insurance. Under this class, an insurance producer may transact insurance against property loss or damage that may result in failure of debtors to pay their obligations to the insured, including but not limited to motor vehicle physical damage insurance. This class does not include mortgage insurance.

(e) Mortgage guarantee insurance. Under this class, an insurance producer may transact only the insurance that is issued by an authorized mortgage insurer under ORS 742.282 to 742.286.

(f) Mortgage life or disability insurance, or mortgage life and disability insurance. Under this class, a lending institution may transact mortgage cancellation insurance as approved under ORS 743.303(1)(b) and (5).

(g) Gap insurance. This class applies to a person described in ORS 731.036(9) who does not qualify for the exemption in 731.036(9) because the person imposes an additional charge to waive the amount described in 731.036(9)(b) pursuant to an agreement to lease or to finance the purchase of a motor vehicle.

(2) Under a "limited class insurance" license, the licensee may transact the following classes of insurance:

(a) Crop insurance. Under this class, an insurance producer may place insurance providing protection against damage to crops from unfavorable weather conditions, fire or lightning, flood, hail, insect infestation, disease or other yield-reducing conditions or perils provided by the private insurance market, or that is subsidized by the Federal Crop Insurance Corporation, including multi-peril crop insurance.

(b) Surety insurance. Under this class an insurance producer may place insurance or a bond that covers obligations to pay the debts of, or answer for the default of another, including faithlessness in a position of public or private trust as approved under ORS 742.350 to 742.376. For the purpose of this limited line license, surety does not include surety bail bonds.

(c) Mechanical breakdown insurance. Under this class an insurance producer may place insurance that provides repair or replacement service, or indemnification for repair or replacement service, for operational or structural failure of property due to defects in materials or workmanship or normal wear and tear, including but not limited to motor vehicles, mobile equipment, boats, appliances and electronics.

(3) Under a "trip travel insurance" license, the licensee may place insurance for trip cancellation, trip interruption, baggage, accidental death, sickness and accident, disability and personal effects. Trip travel coverage provides reimbursement of expenses resulting from an emergency in connection with travel. The following provisions apply to this limited license:

(a) An insurance producer may transact trip travel insurance that covers the risks of a specific trip and sold in connection with transportation provided by a common carrier, owner of a transportation ticket agency or filed with a city, county or state as a tour business.

(b) The limited license under this subsection may be endorsed for an employee or owner, either of whom is engaged in the sale of transportation tickets.

(c) The individual coverage may not be more than the duration of a specified trip.

(d) The limited license under this subsection is issued for the sale of coverage provided by an insurer holding a certificate of authority for casualty insurance or by an insurer holding a certificate of authority for health insurance when the insurer insures only accidental death, sickness and accident or disability coverages.

(4) For the purpose of making the transition to a mechanical breakdown insurance limited class insurance license under section (2) of this rule rather than as a limited class credit insurance license under section (1) of this rule, the change shall apply to renewals of limited class credit insurance licenses applied for on or after January 1, 2013. A licensee transacting mechanical breakdown insurance under a limited class credit insurance license may continue to do so until the first renewal of the limited class credit license after January 1, 2013.

Stat. Auth.: ORS 731.244, 744.062
Stats. Implemented: ORS 744.062
Hist.: ID 8-2005, f. 5-18-05, cert. ef. 8-1-05; ID 18-2012, f. & cert. ef. 11-7-12

836-071-0110

Fingerprints

All applicants for a license shall furnish fingerprints required by the Director of the Department of Consumer and Business Services to the examination administrator who will perform the duties of obtaining electronically the fingerprints of applicants and submitting the fingerprints for Oregon or nationwide criminal history checks. The applicant shall submit the fingerprints according to the requirements and instructions of the examination administrator.

Stat. Auth.: ORS 181.534, 705.135 & 731.244
Stats. Implemented: ORS 181.534, 705.141, 744.001 & 744.059
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 23-2010, f. 12-30-10, cert. ef. 1-1-11; ID 12-2012(Temp), f. 6-19-12, cert. ef. 8-1-12 thru 1-25-12; ID 18-2012, f. & cert. ef. 11-7-12

836-071-0112

Social Security Numbers; Insurance Producer Applications

(1) An applicant for an insurance producer license shall furnish the Social Security number of the applicant as provided in the application form.

(2) The Director may collect Social Security numbers submitted in applications under this rule and may use a Social Security number of an individual when authorized to do so for the purposes specified in this section. In addition to the governmental uses for which a Social Security number is required in an application under federal and state law, when authorized by the holder of a Social Security number, the Director may use a Social Security number for any of the following purposes:

(a) As an identification number in maintaining records and reporting grades or examination scores;

(b) For licensing purposes; and

(c) For use by other government agencies to carry out their statutory duties.

(3) In addition to the governmental uses for which a Social Security number is required in an application under federal and state law, an applicant may voluntarily allow use by the Director of the Social Security number of the applicant, as the Director may request in the application form, for the purposes specified in section (2) of this rule. Refusal to voluntarily allow such use of the Social Security number will not result in the denial of any individual right, benefit or privilege provided by law.

Stat. Auth: ORS 731.244
Stats. Implemented: ORS 744.058 & 744.063
Hist.: ID 9-2002, f. & cert. ef. 3-18-02; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0113

Crop Insurance

(1) The director designates crop insurance as a class of insurance, for the purpose of licensing crop adjusters, under the director’s authority in ORS 744.531(3).

(2) Effective Feb. 1, 2011, to qualify as a crop adjuster, an applicant must pass an examination given by the director.

Stat. Auth.: ORS 731.244 & ORS 744
Stats. Implemented: ORS 744.531
Hist.: ID 2-2010, f. 1-8-10, cert. ef. 2-1-10

836-071-0115

Satisfaction of Qualifications for Classes of Insurance

An applicant must satisfy all applicable qualifications for each class of insurance applied for within a license category before the applicant may be issued a license.

Stat. Auth.: ORS 731 & ORS 744
Stats. Implemented:
Hist.: ID 3-1990, f. & cert. ef. 1-19-90

836-071-0117

Managing General Agents; Amount of Claims Adjustment or Payment for Purposes of Statutory Definition

For the purpose of establishing under ORS 744.300 whether a person is acting as a managing general agent, the amount of $10,000 is the amount of claims that the Director must determine under 744.300(3)(b)(A).

Stat. Auth.: ORS 731.244, 744.300, 744.306, 744.313 & 744.314
Stats. Implemented:
Hist.: ID 6-1992, f. & cert. ef. 3-26-92

836-071-0118

Requirements That Must Be Completed Prior to Submitting Licensing Application

On and after August 1, 2012, all applicants for a license shall submit application materials electronically in accordance with directions provided on the website of the Insurance Division of the Department of Consumer and Business Services. Before submitting an application for a license for consideration by the Director, the applicant must complete the following steps in the application process:

(1) Completion of all pre-examination training and experience requirements under OAR 836-071-0180;

(2) Submission of fingerprints in accordance with OAR 836-071-0110;

(3) Satisfactory passage of a licensing examination under OAR 836-071-120 and 836-071-0127; and

(4) Completion of a criminal history check as set forth in OAR 836-072-0001.

Stat. Auth.: ORS 705.141, 731.244, 731.804, 744.001, 744.003, 744.058, 744.535, 744.619 & 744.621
Stats. Implemented: ORS 744.001, 744.003, 744.058, 744.535, 744.619 & 744.621
Hist.: ID 23-2010, f. 12-30-10, cert. ef. 1-1-11; ID 12-2012(Temp), f. 6-19-12, cert. ef. 8-1-12 thru 1-25-12; ID 18-2012, f. & cert. ef. 11-7-12

836-071-0120

Examination Procedure

(1) To take an examination, an applicant must register with the examination administrator in advance of the examination.

(2) The administrator of the examination may require photographic identification of the applicant at the examination site.

(3) To be admitted to the examination site, an applicant must submit to the examination administrator either of the following as proof of satisfactory completion of required training:

(a) A signed certificate of insurance pre-examination training taken at a school registered under OAR 836-071-0190. The signed certificate must include the applicant's name, the classes of insurance for which training was received, the school name, the date on which the training was completed and the signature of a person authorized by the school to sign such certificates; or

(b) Proof of completion of the required pre-examination insurance training at an accredited college or university.

Stat. Auth.: ORS 731.244, 731.804, 744.001, 744.003, 744.058, 744.535, 744.619 & 744.621
Stats. Implemented: ORS 744.001, 744.003, 744.058, 744.535, 744.619 & 744.621
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 4-1991, f. & cert. ef. 4-25-91; ID 9-2002, f. & cert. ef. 3-18-02; ID 23-2010, f. 12-30-10, cert. ef. 1-1-11

836-071-0125

Period for Completion of License Application

An application for a license is invalid if the license for which the application was made has not been granted on or before the last day of the ninth month after the date on which the application was filed with the Director.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 744.001
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 6-1999, f. 12-13-99, cert. ef. 1-1-00

836-071-0127

Examination Scores

(1) For the purpose of obtaining authorization to transact a category or class of insurance, an applicant passes an examination for the class or category when the applicant obtains a score of 70 percent or higher, with the exception of a crop insurance adjuster examination, for which the minimum passing score is 80 percent.

(2) An applicant for a surplus lines licensee's license must take a written examination approved by the Director and must achieve a score of 70 percent or higher.

Stat. Auth.: ORS 731.244, 731.804, 744.001, 744.003, 744.066, 744.069, 744.075, 744.535, 744.619 & 744.621
Stats. Implemented: ORS 744.535
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 4-1991, f. & cert. ef. 4-25-91; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05; ID 2-2010, f. 1-8-10, cert. ef. 2-1-10

836-071-0130

Adjuster or Insurance Consultant License Renewal

(1) The adjuster or insurance consultant license of an individual expires biennially in the month of the individual’s birthday anniversary. The adjuster or insurance consultant license of a person other than an individual expires on the last day of the month in which the second anniversary of the initial issuance date occurs. Thereafter, the license of a person other than an individual shall expire on the second anniversary following each renewal.

(2) Not later than the license expiration date, an adjuster or insurance consultant licensee applying for renewal must submit electronically in the form and according to directions set forth on the Insurance Division website of the Department of Consumer and Business Services at www.insurance.oregon.gov the following, as applicable:

(a) A completed renewal application;

(b) The renewal fee;

(c) A statement of current license status from the insurance department of the state of residence of the licensee, if the licensee is a non-resident licensee; and

(d) Evidence of current Federal Crop Insurance Corporation certification, if the applicant is a crop insurance adjuster.

(3) The Director may allow an adjuster or insurance consultant licensee not more than 30 days to submit missing information on the application form if the fees have 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 731.244 & 744.007
Stats. Implemented: ORS 744.007
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 3-1997, f. 4-7-97, cert. ef. 6-1-97; ID 6-1999, f. 12-13-99, cert. ef. 1-1-00; ID 9-2002, f. & cert. ef. 3-18-02; ID 11-2007(Temp), f. & cert. ef. 12-11-07 thru 6-1-08; ID 7-2008, f. 5-20-08, cert. ef. 6-2-08; ID 2-2010, f. 1-8-10, cert. ef. 2-1-10; ID 12-2012(Temp), f. 6-19-12, cert. ef. 8-1-12 thru 1-25-12; ID 18-2012, f. & cert. ef. 11-7-12

836-071-0135

Renewal of Expired Adjuster or Insurance Consultant License

(1) When an expired licensed of an individual is renewed under ORS 744.009, the renewed license expires biennially in the month of the individual’s birthday anniversary.

(2) When an expired license of a person other than an individual is renewed under ORS 744.009, the expiration date of the renewed license shall be the same as the expiration date of the initial license.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 744.009
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 9-2002, f. & cert. ef. 3-18-02; ID 11-2007(Temp), f. & cert. ef. 12-11-07 thru 6-1-08; ID 7-2008, f. 5-20-08, cert. ef. 6-2-08

836-071-0140

License Amendment

An applicant for an amendment to an adjuster or insurance consultant license shall apply electronically in the manner provided for application for the initial license under ORS 744.001.

Stat. Auth.: ORS 731.244, 731.804, 744.001, 744.003, 744.535, 744.619 & 744.621
Stats. Implemented: ORS 744.001, 744.003, 744.535, 744.619 & 744.621
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 4-1991, f. & cert. ef. 4-25-91; ID 9-2002, f. & cert. ef. 3-18-02; ID 12-2012(Temp), f. 6-19-12, cert. ef. 8-1-12 thru 1-25-12; ID 18-2012, f. & cert. ef. 11-7-12

836-071-0145

Amended License Issuance

(1) When the Director determines that an applicant for an amendment to a license satisfies all applicable requirements, the Director shall issue to the applicant a license incorporating the amendment.

(2) A license issued under this rule expires on the same date that the preceding license would have expired, unless OAR 836-071-0130(5) applies to the preceding license.

Stat. Auth.: ORS 731 & 744
Stats. Implemented: 744.007 & 744.009
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 11-2007(Temp), f. & cert. ef. 12-11-07 thru 6-1-08; ID 7-2008, f. 5-20-08, cert. ef. 6-2-08

836-071-0146

Individual Insurance Producer License Expiration Date

(1) A license issued to an individual insurance producer expires biennially in the month of the individual's birthday anniversary.

(2) For the purpose of making the transition to renewal according to birth date month as provided in this rule, a license of an individual insurance producer that would have expired on or after the effective date of this rule according to ORS 744.072 expires instead in the birth date month next following the former expiration date.

Stat. Auth.: ORS 731.244, 744.072
Stats. Implemented: ORS 744.072
Hist.: ID 4-2007, f. 3-6-07, cert. ef. 1-1-08

836-071-0148

Extended License Expiration Date, Active Military Duty and Other Extenuating Circumstances

(1) An individual insurance producer who is unable to comply with license renewal procedures due to military service or another extenuating circumstance such as a long term medical disability may request a waiver from compliance with those procedures as authorized by ORS 744.072, as provided in this rule. The waiver may include an extension of the expiration date of the license as provided in this rule.

(2) An individual insurance producer who is ordered by a branch of the armed forces of the United States into active military duty may obtain an extension of the expiration date of the license for the period of time provided in this section. The extended expiration date is established for a license as follows:

(a) By adding the number of days the licensee served on active duty to the date on which the licensee is released from active duty, if the license would otherwise have expired during the period of active duty; or

(b) By adding the number of days the licensee served on active duty to the date on which the license of the licensee expires, if the license would otherwise have expired after the date on which the licensee is released from active duty.

(3) The expiration date of the license of an insurance producer who requests extension of the expiration date of the license for an extenuating circumstance other than being ordered into active military duty under section (2) of this rule may be extended by the Director according to the Director's judgment, as provided in this section. The extended expiration date is established for a license as follows:

(a) By adding the number of days the insurance producer was unable to exercise authority under the insurance producer license to the date on which the insurance producer was once again able to resume duties under the license, if the license would otherwise have expired during the period of the extenuating circumstance; or

(b) By adding the number of days the insurance producer was unable to exercise authority under the insurance producer license to the date on which the insurance producer was once again able to resume duties under the license, if the license would otherwise have expired after the date on which the period of the extenuating circumstance ends.

(4) The extended expiration date established under sections (2) and (3) of this rule is the last day of the month in which the final day of the added period occurs. The date so established shall also be the expiration date for purposes of subsequent renewals of the license.

(5) The fee, continuing education and other applicable requirements for renewal that would have applied for the normal expiration date of a license of an insurance producer described in section (2) or (3) of this rule apply for the extended expiration date. An insurance producer applying for renewal under this rule shall include documentation with the renewal application as follows:

(a) If the reason for the requested extension is that the insurance producer was called to active duty in the military, the insurance producer shall provide a copy of documentation by the branch of the armed forces in which the insurance producer served that shows the period served on active duty or an affidavit, signed by the applicant, that states the period served on active duty.

(b) If the extension is requested for some other reason, the insurance producer shall provide documentation or other evidence of the extenuating circumstances as specified by the Director.

(6) Sections (2) and (3) of this rule apply only to licensees who leave active duty under honorable conditions. This rule does not apply to regular and routine reservist training periods of service.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 744.072
Hist.: ID 10-1997, f. & cert. ef. 10-8-97; ID 9-2002, f. & cert. ef. 3-18-02; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0150

Errors and Omissions Insurance; Insurance Consultants; Managing General Agents

(1) The amount of insurance for which an insurance consultant must maintain a certificate of errors and omissions insurance with the Director as required by ORS 744.635 is $500,000 claims made or per occurrence.

(2) The amount of insurance for which a managing general agent as described in ORS 744.300 must maintain a certificate of errors and omissions insurance with the Director as required by ORS 744.303 is $500,000 claims made or per occurrence.

(3) A managing general agent or an insurance consultant may obtain insurance required by ORS 744.303 or 744.635 from an insurer other than an authorized insurer if the insurer does not control or is not controlled by, or is not under common control with, the managing general agent or insurance consultant, whether directly or indirectly through one or more intermediaries, and if:

(a) The insurer is an eligible surplus lines insurer pursuant to the requirements of ORS 735.400 to 735.495 and the insurance is procured by a surplus lines licensee;

(b) The insurer is an authorized insurer in the state of domicile of the insurance consultant or managing general agent for whom the insurance is obtained; or the state of domicile of the applicant for either such license; or

(c) The insurance is procured from an Oregon surplus lines insurer that is eligible in the state of domicile of the insurance consultant or managing general agent, or applicant for either such license, if all requirements of this subsection are satisfied. The insurance for purposes of this subsection must be confirmed by the signature of an Oregon surplus lines licensee. The Oregon surplus lines licensee must also affirm in writing that the Oregon surplus lines licensee will be the agent for service of process for any action or proceeding involving the insurance consultant or managing general agent and an Oregon resident.

Stat. Auth.: ORS 731.244, 744.303, 744.635, 744.704, 744.706, 744.712 & 744.726
Stats. Implemented:
Hist.: ID 1-1992, f. & cert. ef. 1-27-92; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0160

Errors and Omissions Insurance; Reinsurance Intermediary Managers

(1) The amount of insurance for which a reinsurance intermediary manager must maintain a certificate of errors and omissions insurance with the Director as required by ORS 744.818, is $500,000 claims made or per occurrence.

(2) A reinsurance intermediary manager may obtain insurance required by ORS 744.818, from an insurer other than an authorized insurer if the insurer does not control or is not controlled by, or is not under common control with, the reinsurance intermediary manager, whether directly or indirectly through one or more intermediaries, and if:

(a) The insurer is an eligible surplus lines insurer pursuant to the requirements of ORS 735.400 to 735.495 and the insurance is procured by a surplus lines licensee;

(b) The insurer is an authorized insurer in the state of domicile of the reinsurance intermediary manager for whom the insurance is obtained; or the state of domicile of the applicant for the license; or

(c) The insurance is procured from an Oregon surplus lines insurer that is eligible in the state of domicile of the reinsurance intermediary manager or applicant for the license, if all requirements of this subsection are satisfied. The insurance for purposes of this subsection must be confirmed by the signature of an Oregon surplus lines licensee. The Oregon surplus lines licensee must also affirm in writing that the Oregon surplus lines licensee will be the agent for service of process for any action or proceeding involving the reinsurance intermediary manager and an Oregon resident.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 744.818
Hist.: ID 8-1993, f. & cert. ef. 9-23-93; ID 15-1996, f. & cert. ef. 11-12-96; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

Training and Examinations

836-071-0180

Insurance Producer Pre-Examination Requirements

(1) An applicant for a license as an insurance producer may take an examination for the license only if the applicant first qualifies for the examination by:

(a) Satisfying pre-licensing education requirements of section (2) of this rule; or

(b) Satisfying the experience requirements of section (6) of this rule.

(2) An applicant may qualify for the examination by taking pre-licensing education meeting the requirements of section (3) of this rule according to any of the following methods:

(a) Attendance at classroom lectures supervised and conducted by an instructor;

(b) Attendance at the showing or playing of a previously videotaped or audiotaped lecture, if student check-in and check-out are supervised and a course instructor is present or available to answer student questions; or

(c) Completion of a verifiable online self-study program.

(3) Pre-licensing education shall consist of not less than:

(a) 20 hours in basic principles of property insurance, the duties and responsibilities of an insurance producer and Oregon-related laws, for authority to transact property insurance;

(b) 20 hours in basic principles of casualty insurance, the duties and responsibilities of an insurance producer and Oregon-related laws, for authority to transact casualty insurance;

(c) 20 hours in basic principles of personal lines insurance, the duties and responsibilities of an insurance producer and Oregon-related laws, for authority to transact personal lines insurance;

(d) 20 hours in basic principles of life insurance, the duties and responsibilities of an insurance producer and Oregon-related laws, for authority to transact life insurance; and

(e) 20 hours in basic principles of health insurance, the duties and responsibilities of an insurance producer and Oregon-related laws, for authority to transact health insurance.

(4) For the purposes of sections (2) and (3) of this rule:

(a) One hour of training shall consist of not less than 50 minutes of instruction;

(b) Surety is included in the casualty insurance line and marine and transportation insurance may be included in the property insurance line or the casualty insurance line;

(c) The personal lines line is a subcategory of the casualty insurance line. Consequently, a person who obtains training for a license to transact casualty insurance need not obtain separate or additional training to transact personal lines insurance.

(5) Except as authorized in section (2) of this rule for an online self-study program, an applicant may not satisfy the training requirements established in this rule by unsupervised training or by self-study.

(6) An applicant may satisfy experience requirements for the examination by either of the methods described in this section. As provided in section (7) of this rule, an applicant may substitute successful completion of coursework to obtain an industry recognized designation for all or part of the experience requirements. An applicant may also satisfy the experience requirements for the examination by obtaining an insurance degree from an accredited college or university. The methods for satisfying experience requirements are as follows:

(a) Obtaining and showing proof of three years of verifiable experience as an unlicensed person performing the duties and activities described in OAR 836-071-0280(1) or (2) in the class or classes of insurance for which application is made, but only if any part of the experience has occurred within two years of the date of application for the insurance producer license in this state; and

(b) Obtaining and showing proof of three years of licensure as a resident insurance producer, agent or insurance broker in another state, a province of Canada or Mexico:

(A) If the applicant has been so licensed within two years of the date of application for the insurance producer license in this state; and

(B) If the applicant is not otherwise exempt from taking the examination under ORS 744.067.

(7) An applicant may substitute successful completion of coursework required for obtaining an industry-recognized designation described in this section for all or a part of the number of years of experience required under section (6) of this rule in the class or classes of insurance for which application was made. The following are the designations, the amount of experience for which the coursework may be substituted and the class or classes of insurance to which the coursework may apply:

(a) Accredited Advisor in Insurance (AAI) designation of the American Institute for CPCU (Chartered Property and Casualty Underwriter) and Insurance Institute of America: Three years' experience property and casualty;

(b) Accredited Customer Service Representative (ACSR) designation of the Independent Insurance Agents & Brokers of America: Two years' experience property and casualty;

(c) Associate in Risk Management (ARM) designation of the American Institute for CPCU (Chartered Property and Casualty Underwriter) and Insurance Institute of America: Three years' experience property and casualty;

(d) Certified Insurance Counselor (CIC) designation of the Society of Certified Insurance Counselors: Three years' experience property and casualty;

(e) Certified Professional Service Representative (CPSR) designation of the Professional Insurance Agents Association: Two years' experience property and casualty;

(f) Health Insurance Associate (HIA) designation of America's Health Insurance Plans: Three years' experience health;

(g) Registered Employee Benefits Consultant (REBC) designation of the American College: Three years' experience health;

(h) Registered Health Underwriter (RHU) designation of the National Association of Health Underwriters/American College: Three years' experience health;

(i) Any registered program that fulfills the educational requirement leading to the CFP/Certified Financial Planner certification awarded by the Certified Financial Planner Board of Standards, Inc.: Three years' experience life lines;

(j) Certified Employee Benefit Specialist (CEBS) designation of the International Society of Certified Employee Benefit Specialists: Three years' experience life and health lines;

(k) Life Underwriters Training Council (LUTCF) designation of the Life Underwriters Training Council/American College: Three years' experience life and health lines;

(l) Chartered Financial Consultant (ChFC) designation of the American College: Three years' experience life line;

(m) Fellow Life Manager Institute (FLMI) designation of LOMA (Life Office Management Association): Three years' experience life line;

(n) Certified Professional Insurance Women (CPIW) designation of the National Association of Insurance Women: Two years' experience property and casualty lines; and

(o) An industry designation determined by the Director, by virtue of the coursework, to provide experience at least comparable to experience obtained by coursework for an industry designation specifically referred to in this section.

(8) Pretraining experience claimed under section (6) of this rule is verifiable only if:

(a) The applicant's employer submits to the Division a completed Division Qualification Form that includes a description of all the pretraining experience claimed by the applicant; and

(b) The Division is able to contact the employer to verify the information contained in the Qualification Form.

(9) Proof of completion of a training course for an industry designation under section (7) of this rule must be evidenced by a certificate of completion or notice of a passing examination score by the organization sponsoring the training.

(10) The amendments to this rule that were filed in ID 15-2002 with the Secretary of State on June 26, 2002 to become effective on July 1, 2002 are re-adopted with the operative date of July 1, 2002.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 744.058, 744.064 & 744.067
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 6-1994, f. & cert. ef. 5-20-94; ID 9-2002, f. & cert. ef. 3-18-02; ID 15-2002, f. 6-26-02, cert. ef. 7-1-02; ID 4-2003(Temp), f. 6-30-03, cert. ef. 7-1-03 thru 12-19-03; ID 8-2003, f. 12-12-03, cert. ef. 12-19-03; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05; ID 2-2006, f. & cert. ef. 1-31-06; ID 4-2007, f. 3-6-07, cert. ef. 1-1-08

836-071-0185

Qualification of Agents Selling Variable Life Insurance, Including Annuities

A person shall not solicit, place or procure variable life insurance contracts or policies, including annuities, unless 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 and is licensed to a securities dealer in Oregon.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 744.062
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 4-1991, f. & cert. ef. 4-25-91; ID 9-2002, f. & cert. ef. 3-18-02; ID 2-2010, f. 1-8-10, cert. ef. 2-1-10

836-071-0190

Registration of a School

(1) Each school, other than a community college or four-year college or university, offering an insurance instruction program shall register with the Director in order to provide pre-examination training for applicants for insurance producer licenses. Each school shall apply for registration annually on a form provided by the Director.

(2) The application shall contain:

(a) The business name, main business address and business telephone number of the school and the name of an individual employed by the school whom the Director may contact;

(b) A detailed description of the school's insurance training program that shall, for each part, include the course outline and list of source materials, instructor's lesson plans, student outline, proposed student attendance record forms, proposed student progress record forms and enrollment contract form including refund policy;

(c) The names of persons authorized to certify records or statements regarding training taken by applicants;

(d) A list of principal officers and directors if the school is a firm or corporation;

(e) A certification that the training offered or proposed to be offered includes subject matter equivalent to the examination outline adopted by the Insurance Division.

(3) A registered school shall notify the Director of any change of its address, telephone number or contact person within 30 days after the change.

(4) Promotional material advertising insurance pre-examination training published by the registered school shall state that the school is registered with the Insurance Division and that registration does not imply endorsement by the Insurance Division.

(5) A registered school shall retain for each training course the attendance and course outlines for a period of three years after the conclusion of the course.

(6) A registered school is subject to audit by the Director for purposes of verifying compliance with OAR 836-071-0180.

(7) Subject to revocation of registration under OAR 836-071-0195, a registration expires on the second January 1 following the date of registration.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 744.072
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 9-2002, f. & cert. ef. 3-18-02; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0195

Revocation of Registration of a School; Reinstatement

(1) The registration of an insurance school providing pre-examination training may be revoked by the Director if the Director determines that:

(a) The insurance training program as registered is not being taught; or

(b) Students who have not maintained a satisfactory attendance record or have not completed course work have been certified by the school for the insurance producer license examination.

(2) A school whose registration is revoked may apply for reinstatement. The school must demonstrate to the Director's satisfaction that the school has taken appropriate action to correct the conditions that were the basis of the revocation.

Stat. Auth.: ORS 731 & 744
Stats. Implemented:
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

Continuing Education

836-071-0210

Statutory Authority; Purpose

(1) OAR 836-071-0210 to 836-071-0250 are adopted under the authority of ORS 731.244 and 744.072 for the purpose of implementing 744.072, relating to continuing education for insurance producers. The purpose of OAR 836-071-0210 to 836-071-0250 is to establish requirements and standards for the program for licensees.

(2) The purpose of the continuing education program is to promote trustworthy and competent insurance services for the public by requiring a sufficient number of hours for insurance training.

Stat. Auth.: ORS 731.244 & 744.072
Stats. Implemented: ORS 744.072
Hist.: ID 3-1997, f. 4-7-97, cert. ef. 6-1-97; ID 9-2002, f. & cert. ef. 3-18-02; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0215

Continuing Education Requirements for Insurance Producers; Hours; Credit for Experience and Coursework

Each resident insurance producer is responsible for obtaining the credit hours required by this rule by enrolling in courses approved by the Director that serve the insurance producer's professional needs. The following minimum continuing education requirements apply to resident insurance producers as a condition of renewing a license as insurance producer:

(1) For each two year renewal period occurring after issuance of an insurance producer license that an insurance producer holds an insurance producer license, the insurance producer must complete 12 hours of continuing education annually or 24 hours in each two-year renewal period; and

(2) For each two year renewal period occurring after issuance of an insurance producer license, the renewing insurance producer must include in the applicable required hours of completed continuing education:

(a) At least three credit hours of continuing education on the subject of Oregon statutes and administrative rules, including recent changes; and

(b) At least three credit hours of continuing education of the subject of professional ethics for insurance producers.

Stat. Auth.: ORS 731.244 & 744.072
Stats. Implemented: ORS 744.072
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 6-1994, f. & cert. ef. 5-20-94; ID 3-1997, f. 4-7-97, cert. ef. 6-1-97; ID 6-1999, f. 12-13-99, cert. ef. 1-1-00; ID 9-2002, f. & cert. ef. 3-18-02; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05; ID 4-2007, f. 3-6-07, cert. ef. 1-1-08

836-071-0220

Continuing Education; Documentation

(1) For the purpose of furnishing evidence of completion of a course for which an insurance producer claims credit, the documentation applicable to the course shall be submitted as follows:

(a) For a registered course taken for academic credit, to the extent possible, the institution offering the course shall submit electronically a transcript, certificate of completion or grade or course completion report, whichever is issued by the institution offering the course, or a copy thereof. If it is not possible for the institution offering the course to submit a transcript, certificate of completion or grade or course completion report, the insurance producer shall submit the transcript, certificate of completion or grade or course completion report in accordance with directions provided on the Insurance Division website of the Department of Consumer and Business Services at www.insurance.oregon.gov. For purposes of this subsection, a course is taken for academic credit if it is offered by a community college or four-year college or university, and the insurance producer is given academic credit for the course by such an institution;

(b) For coursework taken for the purpose of obtaining a nationally-recognized insurance industry designation, to the extent possible the entity granting the designation shall submit electronically directly to the Insurance Division, a transcript, certificate of completion or grade or course completion report, whichever is issued by the entity granting the designation;

(c) For a registered course that is not offered for academic credit, the provider shall submit to the department electronically course completion information. The information must include a statement of the hours of credit, the name of the insurance producer, the date of the course, the course registration number;

(d) For a course that is not offered for academic credit and is not registered when taken by an insurance producer, an insurance producer must comply with the requirements of OAR 836-071-0250.

(2) The Director may accept evidence of completion of a course from continuing education providers through electronic means as specified by the Director.

Stat. Auth.: ORS 731.244 & 744.072
Stats. Implemented: ORS 744.072
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 3-1997, f. 4-7-97, cert. ef. 6-1-97; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05; ID 4-2007, f. 3-6-07, cert. ef. 1-1-08; ID 12-2012(Temp), f. 6-19-12, cert. ef. 8-1-12 thru 1-25-12; ID 18-2012, f. & cert. ef. 11-7-12

836-071-0225

Continuing Education; Standards for Granting Credit Hours

(1) Subject to the subject matter requirements of OAR 836-071-0230, an insurance producer may receive credit for continuing education for a course taken for academic credit, for a course registered under 836-071-0240 or a course certified under 836-071-0250:

(a) For not more than the credit hours authorized by the Director;

(b) Only if an hour includes at least 50 minutes of instruction or study;

(c) For class hours in which an insurance producer is an instructor of a course if the course meets the continuing education requirements of an insurance producer attending it. Credit may be taken by an insurance producer with respect to a course only once in each renewal period in which the insurance producer instructs the course;

(d) For not more than eight credit hours in any given day;

(e) Only if the hour for which credit is taken was completed during the license period immediately preceding the renewal date;

(f) For a course taken through independent study, but only as provided in section (4) of this rule.

(2) An insurance producer may take credit for a course only if the insurance producer has successfully completed the course before the insurance producer applies for renewal or reinstatement. For the purpose of taking credit for a course other than one taken through independent study, an insurance producer successfully completes the course if the insurance producer is present for the full approved time and has signed in and out on the attendance register for the course.

(3) An insurance producer may not take continuing education credit for:

(a) Hours devoted to preparation for a course; when the insurance producer is acting as an instructor for the course;

(b) Travel time;

(c) Time exceeding the actual class time;

(d) Unplanned or incidental learning experiences;

(e) Any course not completed;

(f) Any course repeated within a two year period; or

(g) Any course during which the insurance producer is absent more than 5 minutes for each hour of credit granted, or is absent more than 20 minutes from the course as a whole.

(4) For purposes of subsection (1)(f) of this rule, a course is taken through independent study if the course is designed to allow each student to take the course at the student's own pace on an individual basis. An insurance producer may claim credit for an independent study course if the provider and the course are both registered with the Director when the course is taken, if the insurance producer passes an examination by a score of 70 percent or higher and if the proctor of the examination affirms and the provider certifies completion and passage as provided in this section. If the independent study course is a textbook, the examination must be conducted as a closed book examination. The examination for an independent study course need not be proctored if the course is computerized and includes safeguards ensuring that the insurance producer cannot review the study material while taking the examination and if the examination has safeguards ensuring that the insurance producer cannot change answers after completing the examination. Proctor affirmation and provider certification shall be made as follows:

(a) The proctor must submit materials electronically that affirm by affidavit that the insurance producer took the examination for the course without assistance from the textbook or from any person. The proctor must disclose in the affidavit the proctor's name, address, telephone number and the proctor's position or connection with the insurance producer, such as a continuing education school or a librarian, and the proctor's registration number, if the proctor is required to be registered under section (7) of this rule. The provider must retain the affidavit with the examination. A proctor affidavit is not required if the independent study course is taken from a provider that offers a nationally recognized insurance industry designation.

(b) If the provider determines that the insurance producer completed and passed the examination, the provider may issue the certificate of completion. The provider shall date the certificate according to the date on which the provider received the examination for grading, state on the certificate that to the best of the provider's knowledge the insurance producer passed the examination and submit the certificate electronically to the Insurance Division in accordance with directions provided on the Insurance Division website of the Department of Consumer and Business Services at www.insurance.oregon.gov.

(5) The provider of a course shall submit electronically completion information for the course for each qualifying insurance producer not later than the 15th day after the date on which an insurance producer completes a course or not later than the 15th day after the date on which the Director approved the course, whichever date is later. The period for issuance of a certificate does not apply to a provider who discloses to the insurance producer in writing, when the insurance producer pays for or registers for the class, the date by which or the time period within which the certificate will be issued.

(6) A provider shall notify the Director immediately of any change in authorized signers for certificates.

(7) A person may act as a proctor for one or more independent study courses under section (4) of this rule only if the person is registered as a proctor with the Insurance Division. A person applying for registration must submit the name, address and telephone number of the person; the location or locations at which examinations will be proctored; the fee or fees that will be charged, if any, for the proctoring service; and whether the person will proctor examinations for the general insurance producer population. There is no registration fee. If the person will proctor independent study course examinations for other than the general insurance producer population, the person must specify for whom the proctoring will be done. The registration requirement under this section does not apply to city, county and state public libraries, state colleges and universities, private colleges and universities other than those that are owned by or operated primarily for the insurance industry, law offices or currently licensed certified public accountants.

Stat. Auth.: ORS 731.244 & 744.119
Stats. Implemented: ORS 744.119
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 3-1997, f. 4-7-97, cert. ef. 6-1-97; ID 4-1997, f. 4-25-97, cert. ef. 6-1-97; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05; ID 12-2012(Temp), f. 6-19-12, cert. ef. 8-1-12 thru 1-25-12; ID 18-2012, f. & cert. ef. 11-7-12

836-071-0230

Continuing Education; Course Qualification Guidelines

(1) An insurance producer may receive credit for a course on one or more of the following general subject matters if the course also meets the requirements of OAR 836-071-0225:

(a) Rating;

(b) Insurance fundamentals;

(c) Tax laws related to the license class;

(d) Policy contents;

(e) Proper uses of insurance products;

(f) Oregon Insurance Code and administrative rules;

(g) Technical information related to the insurance license classes of general lines, life and health;

(h) Insurance law;

(i) Insurance policies and coverage;

(j) Contract law;

(k) Insurance needs;

(l) Insurance risk management;

(m) Ethics;

(n) Estate planning;

(o) Pension plans;

(p) Financial planning;

(q) Accounting;

(r) Finance;

(s) General underwriting principles;

(t) Prevention of errors and omissions;

(u) Office management, client relations or improving the operations of the insurance producer's business, or any combination thereof;

(v) Any other subject matter that the Director determines will enhance the ability of an insurance producer to provide insurance services to the public effectively.

(2) An insurance producer may claim not more than four hours of credit in a renewal period for a course on the subject matter described in section (1)(u) of this rule.

(3) An insurance producer may not receive credit for the following types of courses:

(a) A course designed solely to prepare a person for a license examination;

(b) A course in mechanical, office or business skill, including but not limited to typing, speed reading or the use of calculators or other machines or equipment;

(c) A course in sales promotion;

(d) A course in motivation, salesmanship, stress management, time management, psychology, writing or motivational and promotional communication;

(e) A course in personnel management or recruiting;

(f) Any product not available for sale to Oregon consumers;

(g) Securities, other than variable life and variable annuities.

Stat. Auth.: ORS 731.244 & 744.072
Stats. Implemented: ORS 744.072
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 6-1994, f. & cert. ef. 5-20-94; ID 3-1997, f. 4-7-97, cert. ef. 6-1-97; ID 9-2002, f. & cert. ef. 3-18-02; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0235

Provider Registration

(1) A provider of continuing education courses must register with the Director in order to register courses under OAR 836-071-0240. A provider must register electronically in the method required by the Director. The registration of a provider shall include the provider's business name, main business address, the business telephone number, email address and the name of a contact person. If a provider is a firm or corporation or a trade association, registration shall also include the names of all principal officers.

(2) A provider shall notify the Director of any change in the address, telephone number, email address or contact person of the provider within 30 days after any such change takes effect.

(3) Subject to revocation of registration under OAR 836-071-0245, a provider registration expires on the second January 1 following the date of registration.

(4) A provider is subject to rejection of registration by the Director if the provider fails to meet any requirement of OAR 836-071-0215 to 836-071-0250 applicable to the provider or to courses offered by the provider, or if any of its employees or contractors who supervise or conduct and certify completion of a course:

(a) Has a history of noncompliance with insurance statutes or rules; or

(b) Has had an insurance producer license or other insurance license revoked, suspended or refused because of violations of or noncompliance with insurance statutes or rules.

Stat. Auth.: ORS 731.244 & 744.119
Stats. Implemented: ORS 744.119
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 3-1997, f. 4-7-97, cert. ef. 6-1-97; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05; ID 12-2012(Temp), f. 6-19-12, cert. ef. 8-1-12 thru 1-25-12; ID 18-2012, f. & cert. ef. 11-7-12

836-071-0240

Course Registration

(1) A provider registered under OAR 836-071-0235 shall apply to the Director for registration of each course to be offered by the provider for continuing education credit. Application for registration shall be made electronically in the method required by the Director and shall include the name of the provider, the provider's registration number assigned by the Department, the course title and credit hours suggested by the provider for the course, and if known, the date, time and location of meetings of each course for which application is made. The provider shall include the course outline with the registration application and shall submit any other information requested by the Director. The course outline must show instruction in 50-minute periods.

(2) In order to ensure that a course is eligible to be registered prior to the date of the first meeting of the course, a registered provider must apply for registration of the course not later than the 60th day preceding the first date.

(3) The registration of a course expires on the last day of the 24th month after the date the course is registered unless the course is renewed prior to the date on which registration expires. The provider must apply for renewal of a course not later than the 21st day prior to the date on which registration expires. If the Director determines that the course materials submitted with the renewal application are sufficiently changed or otherwise so different that the course as a whole should be treated as a new course rather than renewed, the course and its materials shall be reviewed according to the review period established in section (2) of this rule.

(4) Each course registration application is subject to review by the Director for the purpose of evaluating and assigning credit hours and determining compliance with requirements of course content under OAR 836-071-0230. The Director may reject a course for registration or terminate a course's registration if the Director determines that the course does not so comply.

(5) A registered provider shall resubmit a registered course for review and approval whenever the provider substantially changes the content of the course as registered.

(6) A provider shall notify the Director immediately of a cancellation or a change of date, time or location of a scheduled class.

(7) A course registration application that is submitted after the 60th day before the date of the first meeting of the course is subject to approval or disapproval after the date of the first meeting. If the Director approves an application for registration of a course that is submitted after the 60th day before the date of the first meeting of the course and before the tenth day prior to the date of that meeting, and if the provider gives notice of the course meeting as required by OAR 836-071-0247, the provider may grant credit for the course retroactively.

(8) A provider domiciled in another state that is a member of the Midwest Zone Continuing Education Reciprocity Agreement may offer in this state a course that is registered in its domiciliary state if the provider registers the course as provided in this rule. Such a course qualifies for registration if the Director determines that the subject matter of the course is not disqualified for credit under OAR 836-071-0230(2). A course to which this section applies is subject to renewal of its registration and the provider and the course are subject to the other provisions of this rule.

(9) All materials required under this rule shall be submitted electronically in accordance with directions of the director set forth on the Insurance Division website of the Department of Consumer and Business Services at www.insurance.oregon.gov.

Stat. Auth.: ORS 731.244, ORS 744.119 & sec. 12, Enrolled SB 268 (2001 Reg. Session)
Stats. Implemented: ORS 744.008, ORS 744.119 & sec. 12, Enrolled SB 268 (2001 Reg. Session))
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 6-1994, f. & cert. ef. 5-20-94; ID 3-1997, f. 4-7-97, cert. ef. 6-1-97; ID 19-1998, f. & cert. ef. 12-2-98; ID 10-2001, f. & cert. ef. 9-11-01; ID 12-2012(Temp), f. 6-19-12, cert. ef. 8-1-12 thru 1-25-12; ID 18-2012, f. & cert. ef. 11-7-12

836-071-0242

Provider Trade Practices

(1) A registered provider shall not engage in false, misleading or deceptive advertising.

(2) A registered provider must disclose in writing the charges for a course to each insurance producer applying to take the course, prior to enrollment of the insurance producer.

(3) If a registered provider cancels a course for any reason, the provider must refund all charges in full unless the refund policy is clearly described in the enrollment application for the course.

(4) A registered provider shall ensure that each registered course and each course for which registration is sought provides students with current and accurate information.

(5) A registered provider shall include a statement in all material published by the provider to advertise or promote insurance license continuing education that the provider and courses are registered with the Insurance Division and that registration does not imply endorsement by the Insurance Division.

(6) A registered provider may not advertise continuing education hours until the course has been approved by the Division. If approval has been applied for, however, a registered provider may so advertise.

Stat. Auth.: ORS 731.244 & 744.072
Stats. Implemented: ORS 744.072
Hist.: ID 3-1997, f. 4-7-97, cert. ef. 6-1-97; ID 19-1998, f. & cert. ef. 12-2-98; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05; ID 4-2007, f. 3-6-07, cert. ef. 1-1-08

836-071-0245

Revocation of Provider Registration

(1) The Director may revoke the registration of a provider if a course does not meet the requirements of OAR 836-071-0225 and 836-071-0230 or if the provider violates 836-071-0242.

(2) A provider whose registration has been revoked under this rule may apply to the Director for reinstatement of the registration not sooner than the 60th day after revocation.

(3) The Director may reinstate a revoked registration if the Director determines, from proof furnished to the Director, that the conditions responsible for the revocation have been corrected.

Stat. Auth.: ORS 731.244 & 744.119
Stats. Implemented: ORS 744.119
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 3-1997, f. 4-7-97, cert. ef. 6-1-97

836-071-0247

Requirements for Granting Credit; Attendance Records

(1) A registered provider shall provide the Director with the meeting times and places of a registered course not later than the tenth day before the date that the course is given.

(2) A registered provider shall not give credit for a course unless the Director has approved the registration application for the course and the registered provider has given the Director notice of the meeting of the course as provided in section (1) of this rule.

(3) A registered provider of lecture courses shall maintain an accurate record of each course offered, instructors and student attendance records for not less than three years after the date of completion of the course.

(4) A provider of an independent study course shall maintain examination results and proctor affidavits for not less than three years after the date of course completion.

(5) A provider of an independent study course shall notify all vendors of the provider's course materials when credit hours for the course have changed or when the course is discontinued.

(6) A course that is registered in this state pursuant to OAR 836-071-0240(8) shall be allocated the times and credits determined pursuant to the Midwest Zone Continuing Education Reciprocity Agreement.

Stat. Auth.: ORS 731.244, ORS 744.119 & sec. 12, Enrolled SB 268 (2001 Reg. Session)
Stats. Implemented: ORS 744.119 & sec. 12, Enrolled SB 268 (2001 Reg. Session)
Hist.: ID 19-1998, f. & cert. ef. 12-2-98; ID 10-2001, f. & cert. ef. 9-11-01

836-071-0250

Credit for Unregistered Courses

(1) An insurance producer may apply for credit as provided in this rule for a course that is not offered for academic credit and is not registered. In order to apply for credit, the insurance producer must submit to the Director an application on a form provided by the Director and substantiation of the course as provided in this rule. The application and substantiation must be submitted not later than the 180th day after the date of completion of the course.

(2) If an unregistered course is on a subject permitted under OAR 836-071-0230, the insurance producer must substantiate to the Director's satisfaction that the course meets the requirements of 836-071-0225 and 836-071-0230 and that the insurance producer attended and completed the course. To make the substantiation, the insurance producer must submit documentation of the course and proof of attendance provided by the provider concerning the course. The documentation may include, by way of example only, an outline of the course or course materials, workbooks or other materials issued by the provider that show the course work. The Director may request any other information as well, such as times allotted to the parts of the course.

(3) If an unregistered course is not on a subject permitted under OAR 836-071-0230, the insurance producer must substantiate to the Director's satisfaction that the course meets the requirements of 836-071-0225, that the course contributes to the insurance producer's professional competence and will benefit the insurance-buying public and that the insurance producer attended and completed the course. To make the substantiation, the insurance producer must submit documentation provided by the provider concerning the course. The documentation may include, by way of example only, an outline of the course or course materials, workbooks or other materials issued by the provider that show the course work, or proof of passing the final examination for the course or a letter, certificate or other documentation of completion from the provider. The Director may request any other information as well, such as times allotted to the parts of the course.

(4) The application and substantiation required under this rule are subject to review by the Director for the purpose of determining whether to certify the course for credit and evaluating and assigning credit hours. The Director may certify the course, or may reject it if the Director determines that the course does not meet applicable requirements.

Stat. Auth.: ORS 731.244 & 744.072
Stats. Implemented: ORS 744.072
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 3-1997, f. 4-7-97, cert. ef. 6-1-97; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05; ID 4-2007, f. 3-6-07, cert. ef. 1-1-08

Fees and Disclosure; Incidental Charges

836-071-0260

Fees Charged by Insurance Producers

(1) When an insurance producer or any affiliate of the insurance producer receives any compensation authorized under ORS 735.455, 744.091 or 744.093 from a prospective insured for transacting insurance, neither the insurance producer nor the affiliate may accept or receive any compensation from an insurer or other third party for the placement of insurance for the prospective insured unless the insurance producer, prior to the prospective insured's purchase of insurance, has:

(a) Obtained the prospective insured's documented acknowledgment that the compensation will be received by the insurance producer or affiliate;

(b) Disclosed the amount of compensation from the insurer or other third party for the placement. If the amount of compensation is not known at the time of disclosure, the insurance producer shall disclose the specific method for calculating the compensation and, if possible, a reasonable estimate of the amount; and

(c) Disclosed the nature of the work that the insurance producer or affiliate will perform on behalf of the prospective insured.

(2) When an insurance producer or any affiliate of the insurance producer receives any compensation authorized under ORS 735.455, 744.091 or 744.093 from a prospective insured for transacting insurance and receives no compensation from an insurer or other third party for placement of insurance for the prospective insured, the insurance producer or affiliate must obtain the prospective insured's documented acknowledgement that the compensation will be received by the insurance producer and must disclose the nature of the work that the insurance producer or affiliate will perform on behalf of the prospective insured.

(3) A person is not a prospective insured for the purpose of this rule if the person is merely:

(a) A participant or beneficiary of an employee benefit plan; or

(b) Covered by a group or blanket insurance policy or group annuity contract sold, solicited or negotiated by the insurance producer or affiliate.

(4) This rule does not apply to any of the following persons:

(a) An insurance producer when the insurance producer acts only as an intermediary between an insurer and the prospective insured's insurance producer, such as a managing general agent, a wholesale insurance producer under ORS 744.093, a surplus lines licensee when transacting insurance with a producing insurance producer under ORS 735.455 or a sales manager.

(b) An insurance producer with respect to an incidental charge that is received from the prospective insured and is authorized under OAR 836-071-0267.

(c) A reinsurance intermediary.

(5) As used in this rule:

(a) "Affiliate" means a person that controls, is controlled by or is under common control with the insurance producer.

(b) "Compensation from an insurer or other third party" means payments, commissions, fees, awards, overrides, bonuses, contingent commissions, loans, stock options, gifts, prizes or any other form of valuable consideration, whether or not payable pursuant to a written agreement.

(c) "Compensation from a prospective insured" does not include any fee or amount collected by or paid to the insurance producer that does not exceed an amount established by the Director.

Stat. Auth.: ORS 731.244, 735.455, 744.091, 744.093
Stats. Implemented: ORS 735.455, 744.091, 744.093
Hist.: ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0263

Fees Charged by Insurance Consultants or Insurance Producers

(1) When an insurance consultant or an affiliate of an insurance consultant receives from a prospective insured any compensation authorized under the Insurance Code or rules adopted thereunder, neither the insurance consultant nor the affiliate may accept or receive any compensation from an insurer or other third party for services provided to the prospective insured in addition to the compensation paid by the prospective insured unless the insurance consultant, prior to the transaction:

(a) Has obtained the prospective insured's documented acknowledgment that the compensation will be received by the insurance consultant or affiliate; and

(b) Disclosed the amount of compensation from the insurer or other third party for that placement. If the amount of compensation is not known at the time of disclosure, the insurance consultant shall disclose the specific method for calculating the compensation and, if possible, a reasonable estimate of the amount.

(2) When an insurance producer or an affiliate of an insurance producer receives any compensation otherwise authorized under the Insurance Code or OAR 836-071-0269 to 836-071-0277 from a prospective insured, neither the insurance producer nor the affiliate may accept or receive any compensation from an insurer or other third party for the placement of insurance in the same or related transaction unless the insurance producer, prior to the prospective insured's purchase of insurance, has:

(a) Obtained the prospective insured's documented acknowledgment that the compensation will be received by the insurance producer or affiliate; and

(b) Disclosed the amount of compensation from the insurer or other third party for that placement. If the amount of compensation is not known at the time of disclosure, the insurance producer shall disclose the specific method for calculating the compensation and, if possible, a reasonable estimate of the amount.

(3) A person is not a prospective insured for the purpose of this rule if the person is merely:

(a) A participant or beneficiary of an employee benefit plan; or

(b) Covered by a group or blanket insurance policy or group annuity contract sold, solicited or negotiated by the insurance producer or affiliate.

(4) This rule does not apply to:

(a) An insurance producer with respect to a transaction to which ORS 735.455, 744.091 or 744.093 applies;

(b) An insurance producer when the insurance producer acts only as an intermediary between an insurer and the prospective insured's insurance producer, such as a managing general agent, a wholesale insurance producer under ORS 744.093, a surplus lines licensee when transacting insurance with a producing insurance producer under ORS 735.455 or a sales manager;

(c) An insurance producer with respect to an incidental charge that is received from the prospective insured and is authorized under OAR 836-071-0267; or

(d) A reinsurance intermediary.

(5) As used in this rule:

(a) "Affiliate" means a person that controls, is controlled by or is under common control with the insurance consultant or insurance producer.

(b) "Compensation from an insurer or other third party" means payments, commissions, fees, awards, overrides, bonuses, contingent commissions, loans, stock options, gifts, prizes or any other form of valuable consideration, whether or not payable pursuant to a written agreement.

(c) "Compensation from a prospective insured" does not include any fee or amount collected by or paid to the insurance producer that does not exceed an amount established by the Director.

Stat. Auth.: ORS 731.244, 744.077 & 744.650
Stats. Implemented: ORS 737.205, 742.009, 744.077, 744.650, 746.015
Hist.: ID 9-2005(Temp), f. 5-18-05, cert. ef. 8-1-05 thru 1-15-06; ID 13-2005, f. 12-29-05, cert. ef. 1-15-06

836-071-0267

Incidental Charges for Customer Services; Personal, Commercial Lines

(1) This rule establishes incidental charges that an insurance producer may impose for customer services in connection with the transaction of insurance. For the purpose of this rule, personal lines insurance is property and casualty insurance coverage sold to individuals and families for primarily noncommercial purposes.

(2) An insurance producer may impose an incidental charge established in this rule on a customer only if the insurance producer has given written notice to the customer that the insurance producer may impose incidental charges authorized by this rule. The notice must disclose all incidental charges that the insurance producer may impose and the service provided for each incidental charge. The insurance producer must give the notice to a customer before providing any service for which an incidental charge may be imposed, but not later than at the time of application or the renewal before the insurance producer commences imposing the incidental charges. The written notice requirement does not apply to the binding or issuance of a policy. At the time an insurance producer charges an incidental charge under this rule, the insurance producer must clearly disclose to the customer the amount of the incidental charge and the service for which the incidental charge is imposed.

(3) An insurance producer may impose an incidental charge for rewriting or reinstating a policy that was cancelled by the insurer because of an action or inaction of the customer, such as nonpayment of premium or failure to renew according to policy terms, as provided in this section. An insurance producer may not impose the incidental charge for the first rewriting or reinstatement of the policy. The incidental charges are as follows:

(a) A charge not to exceed $25 for personal lines insurance.

(b) A charge not to exceed $100 for commercial insurance.

(4) An insurance producer may impose an incidental charge for taking a payment of premium in cash, in an amount not to exceed $10.

(5) An insurance producer may impose an incidental charge as authorized by ORS 30.701 for handling and collecting on a check from a customer that is returned for insufficient funds.

(6) An insurance producer may impose an incidental charge for the actual cost of providing photographic or inspection services to a customer in connection with issuing or amending insurance coverage, but the incidental charge may not exceed:

(a) $7.50 for the services in connection with issuing or amending personal insurance coverage.

(b) $45 for the services in connection with issuing or amending commercial insurance coverage.

(7) An insurance producer may impose an incidental charge for the actual cost of obtaining a motor vehicle report from the Motor Vehicle Division of the Oregon Department of Transportation or from the comparable agency in another state.

(8) An insurance producer may impose an incidental charge not to exceed $5 for preparing a duplicate insurance identification card at the request of a customer, when the customer requests the preparation of the card instead of waiting for the insurance identification card prepared by the insurer.

(9) An insurance producer may impose an incidental charge not to exceed $10 for each endorsement to a personal lines insurance policy that is in addition to the first six other endorsements by the insurance producer to the policy within a six-month period.

(10) An insurance producer may impose an incidental charge not to exceed $5 for obtaining a duplicate SR22 filing on behalf of a customer when the customer has lost or misplaced the original SR22 filing.

(11) An insurance producer may impose an incidental charge not to exceed $5 for each certificate of commercial insurance coverage issued by the insurance producer that is in addition to the first 20 certificates requested by the customer for the commercial insurance policy during a policy period.

Stat. Auth.: ORS 731.244 and 744.077
Stats. Implemented: ORS 744.077
Hist.: ID 8-2005, f. 5-18-05, cert. ef. 8-1-05; ID 13-2014, f. & cert. ef. 7-21-14

Insurance Producer Service Fees

836-071-0269

Purpose and Authority

(1) OAR 836-071-0269 to 836-071-0277 regulate the charging of service fees by insurance producers.

(2) ORS 737.025 states, in part, that the purpose of Insurance Code Chapter 737 (Rates and Rating Organization) is "to promote the public welfare by regulating insurance rates to the end they shall not be excessive, inadequate, or unfairly discriminatory." ORS 737.205 requires every insurer to file its rates with the Director of the Department of Consumer and Business Services. ORS 746.015 prohibits unfair discrimination "between risks of essentially the same hazard in the application of rates for insurance policies or in any other terms or conditions thereof." The Director finds that, with respect to personal lines of insurance, it is reasonable and customary for the public to consider all of the charges made by the insurer or its insurance producer to be either an insurance premium charge or a premium financing charge.

(3) OAR 836-071-0269 to 836-071-0277 are issued under the general rulemaking authority of ORS 731.244:

(a) With respect to personal lines insurance coverages to give effect to the rate regulatory provisions of ORS Chapter 737 and the anti-discrimination provisions of ORS 746.015; and

(b) With respect to commercial lines insurance coverage to give effect to the provisions of ORS 746.015 (Discriminations), 746.405 to 746.530 (Premium Financing) and 742.009 (relating to necessary information for insureds). Formerly: OAR 836-030-0050

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 737.205, 742.009, 746.015 & 746.405 - 746.525
Hist.: IC 58, f. 8-9-74, ef. 9-11-74; IC 9-1983(Temp), f. 11-10-83, ef. 11-15-83; ID 15-1996, f. & cert. ef. 11-12-96; Renumbered from 836-030-0050, ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0272

Scope of OAR 836-071-0269 to 836-071-0277; Definitions

(1) OAR 836-071-0269 to 836-071-0277 do not apply to the transaction of life insurance, mortgage insurance, or title insurance.

(2) "Service fee" means a charge made by an insurance producer with respect to an insurance transaction to a party other than the insurer, which charge is not a part of the insurer's rate filing under ORS Chapter 737. "Service fee" does not include finance or service charges governed by 746.405 to 746.530 (Premium Financing). Formerly: OAR 836-030-0055

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 737.205, 742.009, 746.015 & 746.405 - 746.525
Hist.: IC 58, f. 8-9-74, ef. 9-11-74; IC 9-1983(Temp), f. 11-10-83, ef. 11-15-83; ID 15-1996, f. & cert. ef. 11-12-96; Renumbered from 836-030-0055, ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0274

Service Fees Prohibited on Personal Lines

Except as provided in OAR 836-071-0267, a service fee may not be charged with respect to the transaction of insurance covering an individual's person, property, or liability. Coverage of several individuals as members of the same family or household is considered individual coverage for the purpose of this rule. Formerly: OAR 836-030-0060

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 737.205, 742.009, 746.015, 746.405 - 746.525
Hist.: IC 58, f. 8-9-74, ef. 9-11-74; IC 9-1983(Temp), f. 11-10-83, ef. 11-15-83; Renumbered from 836-030-0060, ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0275 [Renumbered to 836-071-0291]

836-071-0277

Service Fees Allowed on Commercial Lines; Conditions

(1) Service fees may be charged with respect to the transaction of insurance that covers other than an individual's person, property, or liability.

(2) Except as authorized in ORS 744.091 and 744.093, a service fee may be charged only in those instances where the insurance producer has provided service additional to what is the usual and customary practice of insurance producers under similar circumstances. The insurance producer must give a written explanation of the charge and the reason for it to the person charged. If OAR 836-071-0260 or 836-071-0263 applies to the transaction in which a service fee is charged under this rule, the insurance producer may include the written explanation with the disclosure required by 836-071-0260 or 836-071-0263 or provide the written explanation separately.

(3) A service fee may not be charged with respect to arranging the financing of premium payments. This does not preclude finance charges by insurance producers on their own accounts, or service charges by premium finance companies, which conform to the provisions of ORS 746.405 to 746.530.

Stat. Auth.: ORS 731.244, 744.077 & 744.650
Stats. Implemented: ORS 737.205, 742.009, 746.015, 746.405 - 746.525
Hist.: IC 58, f. 8-9-74, ef. 9-11-74; IC 9-1983(Temp), f. 11-10-83, ef. 11-15-83; Renumbered from 836-030-0065, ID 8-2005, f. 5-18-05, cert. ef. 8-1-05; ID 9-2005(Temp), f. 5-18-05, cert. ef. 8-1-05 thru 1-15-06; ID 13-2005, f. 12-29-05, cert. ef. 1-15-06

Regulation Generally

836-071-0280

Permitted and Prohibited Activities of Insurance Personnel Exempt from Insurance Producer License Requirement

For purposes of ORS 744.056(2)(a):

(1) An unlicensed person whose activities are executive, administrative, managerial, clerical or a combination of these and is employed by an insurance producer may engage in any activity described in this section, subject to review by the insurance producer or an insurance producer employed by the insurance producer if review is required under this section, if the unlicensed person engages in the activity under the supervision of the insurance producer and on the premises of the insurance producer's business. The unlicensed person may:

(a) Disclose rates to the insurance-buying public, but only if the rates are reviewed by the insurance producer prior to submission to the insurer;

(b) Fill out an application for insurance if the application is reviewed by the insurance producer prior to submission to the insurer;

(c) Accept or receive an insurance premium;

(d) Provide information to current policyholders addressing existing policy terms;

(e) Take requests for changes on in-force policies;

(f) Obtain information needed from insureds;

(g) Receive claim information directly from insureds and claimants;

(h) Engage in telephone marketing or making appointments, but only to the extent that the person may obtain policy expiration dates; and

(i) Transmit insurance policies to insureds.

(2) An unlicensed person whose activities are executive, administrative, managerial, clerical or a combination of these and is employed by an insurer may engage in any activity described in this section. The unlicensed person may:

(a) Disclose rates to the insurance-buying public;

(b) Fill out an application for insurance;

(c) Accept or receive an insurance premium;

(d) Provide information to current policyholders addressing existing policy terms;

(e) Take requests for changes on in-force policies;

(f) Obtain information needed from insureds;

(g) Receive claim information directly from insureds and claimants;

(h) Engage in telephone marketing or making appointments, but only to the extent that the person may obtain policy expiration dates;

(i) Transmit insurance policies to insureds; and

(j) Analyze, interpret and resolve policy coverage questions regarding a claim.

(3) An unlicensed person whose activities are executive, administrative, managerial, clerical or a combination of these and is employed by an insurance producer may engage in the following activities only if they are indirectly related to the sale, solicitation or negotiation of insurance:

(a) Binding coverage; or

(b) Interpreting policy coverages.

Stat. Auth.: ORS 731.244 & 744.056
Stats. Implemented: ORS 744.056
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 6-1994, f. & cert. ef. 5-20-94; ID 9-2002, f. & cert. ef. 3-18-02; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0285

Insurance Producer Review of Applications

An insurance producer who permits an unlicensed person to fill out an application for insurance as authorized under OAR 836-071-0280 must indicate on the office copy of the application that the insurance producer reviewed the application, giving the date of the review.

Stat. Auth.: ORS 731 & 744
Stats. Implemented:
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0287

Transaction of Group Life, Health Insurance by Insurance Producer without Appointment

(1) Subject to section (2) of this rule:

(a) An insurance producer licensed to transact life or health insurance, or both such classes, may solicit group insurance authorized under the license of the insurance producer for an insurer with whom the insurance producer does not hold an appointment; and

(b) The insurer may issue proposals based on the solicitation by the insurance producer.

(2) If an insurance producer under section (1) of this rule submits to the insurer an application for group coverage based on the solicitation, the insurer may not issue the coverage unless the insurer files the notice of the appointment with the Director as provided in ORS 744.078.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 744.053 & 744.078
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 15-1996, f. & cert. ef. 11-12-96; ID 9-2002, f. & cert. ef. 3-18-02; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0291

Certificate of Deposit in Lieu of Trust Account

For purposes of ORS 744.084, evidence of a certificate of deposit kept by an insurance producer is satisfactory:

(1) If the evidence is a written statement of verification issued by the institution issuing the certificate to the insurance producer; and

(2) If the statement shows the date of renewal, if any, and verifies that the certificate is valid as of the date of the request by the Director for verification of the certificate. Formerly: OAR 386-071-0275

Stat. Auth.: ORS 731.244, 744.084
Stats. Implemented: ORS 744.084
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; Renumbered from 836-071-0275, ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0295

Transaction of Insurance by Individual Insurance Producer for Appointed Firm or Corporate Insurance Producer

An individual insurance producer affiliated by employment or contract with a firm or corporate insurance producer that is appointed by an insurer may transact insurance for the insurer without an appointment from the insurer. An individual insurance producer may so transact insurance only with respect to the classes of insurance endorsed on the license of the individual insurance producer. For purposes of this rule, an individual insurance producer is affiliated with a firm or corporate insurance producer if the individual insurance producer under the contract is authorized to transact insurance in the name of the firm or corporate insurance producer.

Stat. Auth.: ORS 731 & 744
Stats. Implemented:
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0297

Permitted Transaction of Insurance by Unappointed Insurance Producer

(1) When an insurance producer does not hold an appointment with an insurer, the insurance producer may transact casualty insurance, property insurance or both by placing the insurance with the insurer through a firm or corporate insurance producer appointed by the insurer and:

(a) The appointed insurance producer has a contract with the unappointed insurance producer that specifies the binding authority, if any, and fiduciary responsibility of the unappointed insurance producer, including ownership and payment of the premiums, but does not authorize the unappointed insurance producer to act in the name of the appointed insurance producer; and

(b) The appointed insurance producer obtains at least 90 percent of its premium under contractual agreement with unappointed insurance producers that are not affiliated with the firm or corporate insurance producer.

(2) This rule does not apply to the transaction of insurance by an individual insurance producer affiliated with a firm or corporate insurance producer as provided in OAR 836-071-0295.

Stat. Auth.: ORS 731.244 & 744
Stats. Implemented:
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 9-2002, f. & cert. ef. 3-18-02; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0300

Requirement of Contract with or Employment of Licensee

A firm or corporate adjuster or insurance consultant may engage in a category or class of insurance through an individual licensee as authorized under ORS 744.022 only if the firm or corporate licensee employs or has entered a contract with the individual licensee.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 744.022
Hist.: ID 3-1990, f. & cert. ef. 1-19-90; ID 9-2002, f. & cert. ef. 3-18-02

836-071-0310

Referral Fee from Oregon Medical Insurance Pool

An insurance producer authorized to transact health insurance in Oregon may receive a referral fee from the Oregon Medical Insurance Pool, established under ORS 735.600 to 735.650, for referring prospective insureds to the Pool, without being appointed as an insurance producer by the Pool or its administering insurer or otherwise being authorized to act as an agent of the Pool, its governing board or its administering insurer.

Stat. Auth.: ORS 731 & 744
Stats. Implemented:
Hist.: ID 14-1990(Temp), f. & cert. ef. 6-29-90; ID 22-1990, f. 12-20-90, cert. ef. 12-26-90; ID 9-2002, f. & cert. ef. 3-18-02; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0315

Managing General Agents; Dollar Amounts Governing Settlement Authority Procedures Under Contract with Insurer

For the purpose of the requirement of the written contract between a managing general agent and an insurer established under ORS 744.306, if the contract permits the managing general agent to settle claims on behalf of the insurer:

(1) The amount established by the Director for purposes of ORS 744.306(4)(b)(A) is $10,000.

(2) The amount established by the Director for purposes of ORS 744.306(4)(c) is $10,000.

Stat. Auth.: ORS 731.244, ORS 744.300, ORS 744.306, ORS 744.313 & ORS 744.314
Stats. Implemented:
Hist.: ID 6-1992, f. & cert. ef. 3-26-92

836-071-0320

Managing General Agents; Designation of Associations of Actuaries

For purposes of ORS 744.313, the Director determines the following associations of actuaries to have established adequate professional standards for membership:

(1) The American Academy of Actuaries.

(2) The Casualty Actuarial Society.

(3) The Society of Actuaries.

(4) The Canadian Institute of Actuaries.

Stat. Auth.: ORS 731.244, ORS 744.300, ORS 744.306, ORS 744.313 & ORS 744.314
Stats. Implemented:
Hist.: ID 6-1992, f. & cert. ef. 3-26-92

836-071-0321

Terms for OAR 836-071-0323 to 836-071-0346

For purposes of OAR 836-071-0323 to 836-071-0346:

(1) A felony offense involving dishonesty includes but is not limited to any offense constituting or involving theft, burglary, perjury, bribery, forgery, counterfeiting, a false or misleading oral or written statement, deception, fraud, a scheme or artifice to deceive or defraud, a material misrepresentation or the failure to disclose material facts, or any felony the commission of which is determined by the Director to have involved some element of deceit, misrepresentation, untruthfulness or falsification.

(2) A breach of trust includes but is not limited to any offense constituting or involving misuse, misapplication or misappropriation of anything of value held as a fiduciary, including but not limited to a trustee, administrator, executor, conservator, receiver, guardian, agent, employee, partner, officer, director or public servant, or anything of value of any public, private or charitable organization.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 731.428, 744.013, 744.074
Hist.: ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0323

License Applicants and Licensees with Prior Convictions

(1) When the Director considers an application for a license that indicates the applicant has been convicted of a crime or crimes described in ORS 744.113(1)(e) or 744.074(1)(f), the Director shall determine whether the crime or any of the crimes is an offense under 18 U.S.C. sec. 1033 or a felony offense involving dishonesty or breach of trust that is subject to 18 U.S.C. sec. 1033.

(2) An applicant for a license who has been convicted by final judgment of an offense under 18 U.S.C. sec. 1033 or of any felony offense involving dishonesty or breach of trust does not qualify for the license unless:

(a) The Director has reviewed the entire application of the applicant and has determined that the applicant qualifies for the license; and

(b) The Director issues a written consent as provided in this rule.

(3) An applicant for a license to whom subsection (2) of this rule applies must apply to the Director for a consent as provided in OAR 836-071-0326.

(4) A licensee who has ever been convicted of an offense described in section (1) of this rule must apply to the Director for a consent as provided in OAR 836-071-0326. The licensee may not retain the license unless the Director issues a written consent as provided in this rule.

(5) A licensee who, while licensed, is convicted of an offense described in section (1) of this rule must apply to the Director for a consent as provided in OAR 836-071-0326 not later than the 30th day after the date of the final judgment. The licensee may not retain the license unless the Director issues a written consent as provided in this rule.

(6) A license applicant or licensee who is appointed or expects to be appointed by more than one insurer need submit only one consent application under OAR 836-071-0326, but the application and related letters, statements and other information must relate to the insurer with whom the license applicant or licensee has or will have the most substantial ongoing business relationship.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 731.428, 744.013 & 744.074
Hist. : ID 9-2000, f. & cert. ef 10-24-00; ID 9-2002, f. & cert. ef. 3-18-02; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0326

Application by Person under OAR 836-071-0323

(1) A person to whom OAR 836-071-0323 applies must submit a consent application on a form provided by the Director.

(2) A person shall submit with the application the following:

(a) A letter from the president of the insurer, or designee of the president, for whom the person acts or will act, that the president or designee is aware of the offense or offenses to which the consent application applies and that the president or designee attests to the character of the person. The letter should describe the person's character traits as they relate to the employment, position or activities for which written consent is sought and the duties and responsibilities thereof.

(b) At least five letters or other forms of statement addressed to the Director, attesting to the character and reputation of the person, in addition to the letter required in subsection (a) of this section. The statement as to character should indicate the length of time the writer has known the person and should describe the person's character traits as they relate to the employment, position or activities for which written consent is sought and the duties and responsibilities thereof. The statement as to reputation must attest to the person's reputation in the person's community, circle of business or social acquaintances.

(3) Each letter or statement required in section (2) of this rule should indicate that it has been submitted in compliance with these procedures and that the person has informed the writer of the factual basis of the application being filed with the Director and the purpose thereof. In evaluating letters or statements from relatives by blood or marriage, prospective employers or insurance related business activities, or persons serving in any capacity with the insurer, its employees or agents, the Director may take into account the personal and business interests of those persons.

(4) A person shall also submit with the application under this rule a current credit report from a credit bureau. A credit report is current if it was issued within 30 days after the date of the application.

(5) A person shall submit information in addition to that required in this rule as the Director determines to be appropriate for the proper consideration and disposition of the consent application under this rule.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 731.428, 744.013
Hist.: ID 9-2000, f. & cert. ef. 10-24-00; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0328

Unlicensed Individuals with Prior Convictions Who are Engaged or Participate in Business of Insurance

(1) When the Director considers an application of an individual who applies to the Director under ORS 731.428 for written consent to engage or participate in the business of insurance, other than a licensee to whom OAR 836-071-0323 applies, the Director shall determine whether the crime or any of the crimes is an offense under 18 U.S.C. sec. 1033 or a felony offense involving dishonesty or breach of trust that is subject to 18 U.S.C. sec. 1033. Individuals to whom this section applies includes any applicant for employment in the business of insurance in Oregon and any current unlicensed individual engaged or participating in the insurance business in Oregon who has ever been convicted of an offense described in this section.

(2) An applicant for written consent under this section who has been convicted by final judgment of an offense under 18 U.S.C. sec. 1033 or of any felony offense involving dishonesty or breach of trust does not qualify for the written consent unless:

(a) The Director has reviewed the entire application of the applicant and has determined that the applicant qualifies for the written consent; and

(b) The Director issues a written consent as provided in this rule.

(3) An applicant to whom this rule applies must submit a consent application on a form provided by the Director.

(4) An individual currently engaged or participating in the insurance business in Oregon and is not required to be licensed to do so may not continue to engage or participate in the business of insurance in Oregon unless the Director issues a written consent as provided in this rule.

(5) An unlicensed individual who, while engaged or participating in the insurance business in Oregon and is not required to be licensed to do so, is convicted of an offense described in section (1) of this rule must submit a consent application under this rule not later than the 30th day after the date of the final judgment. The individual may not engage or participate in the insurance business in Oregon unless the Director issues a written consent as provided in this rule.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 731.428
Hist.: ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0331

Director's Procedures, Application for Consent

When the Director has received a complete license application and the consent application required in OAR 836-071-0326, or has received the consent application required in 836-071-0326, in the case of a current licensee or an applicant for a license, or required in 836-071-0328, in the case of an unlicensed person engaged or participating in the business of insurance, and the person has otherwise complied with all applicable requirements:

(1) The Director shall determine whether the crime or any crimes committed by the person and described in the application are subject to ORS 670.280, if a license or license application is involved.

(2) The Director shall notify all state members of the National Association of Insurance Commissioners that an application for written consent has been filed, and shall include with the notice a statement including the name, address, Social Security number (if submitted with the application) and types of insurance actions to be conducted by the applicant, and a request that any insurance commissioner with relevant knowledge regarding the fitness of the applicant respond immediately. The Director shall allow at least 30 days from the date on which the notice was sent, for comment.

(3) The Director may conduct an investigation of the person. The Director may use data bases of the National Association of Insurance Commissioners, including but not necessarily limited to the Regulatory Information Retrieval system, the Producer Database, the Complaint Database and the Special Activities Database.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 731.428, 744.013
Hist.: ID 9-2000, f. & cert. ef. 10-24-00; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0336

Factors to be Considered by the Director

The Director shall consider at least the following factors when deliberating upon a consent application :

(1) The legitimate interest of the Director or the insurer for whom the activities would be performed in protecting property and the safety and welfare of specific individuals, businesses or the general public.

(2) Whether the applicant or someone on the applicant's behalf has made a materially false or misleading statement or omission in the application process.

(3) The nature of the circumstances surrounding, and the seriousness of, the offense or offenses.

(4) Whether the applicant has been charged with, indicted or convicted of multiple criminal offenses.

(5) What evidence exists of the applicant's rehabilitation, including good conduct in prison, on probation or on parole; good conduct in the community; counseling or psychiatric treatment received; acquisition of additional academic or vocational schooling; successful participation in correctional work-release programs; and the recommendation of persons who have or have had the applicant under their supervision (for example, letters of recommendation from prosecutors, law enforcement or correctional officers who have prosecuted, arrested or had custodial responsibility for the applicant, and letters of recommendation from the sheriff or chief of police in the community in which the applicant resides or has resided).

(6) Whether all members of the National Association of Insurance Commissioners were notified in a timely manner of the applicant's request and any relevant information regarding the fitness of the applicant received from members of the National Association of Insurance Commissioners.

(7) Whether licensing the applicant or issuing the person a written consent to engage in the business of insurance would be consistent with the public interest, with federal and state law, with applicable court orders and with the determination that the applicant is trustworthy to conduct the business of insurance.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 731.428, 744.013
Hist.: ID 9-2000, f. & cert. ef. 10-24-00; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0341

Issuance of Written Consent

A written consent to engage in the business of insurance issued by the Director must include the following:

(1) A reference to 18 U.S.C. Section 1033(e)(2).

(2) A statement that the written consent is conditioned on the truth and veracity of the facts disclosed by the applicant in the application for the consent.

(3) A statement that the written consent is conditioned on the applicant remaining in the approved position with its associated insurance activities in which the applicant is not considered to be a risk or threat to insurance consumers or insurers.

(4) Any specific restrictions imposed by the Director as conditions of the written consent.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 744.013
Hist.: ID 9-2000, f. & cert. ef. 10-24-00

836-071-0346

Denial of Consent

(1) If the Director determines that a written consent to engage in the business of insurance should be denied to an applicant, the Director shall issue the denial in writing and shall notify the applicant of rights of review of the Director's determination.

(2) If the Director determines that the crime committed by the applicant is not one to which 18 U.S.C. Section 1033 applies, the Director shall so inform the applicant at the time of granting or denying the license application or, in response to a consent application.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 731.428, 744.013
Hist.: ID 9-2000, f. & cert. ef. 10-24-00; ID 8-2005, f. 5-18-05, cert. ef. 8-1-05

836-071-0351

Subsequent Conviction of Person Previously Granted Written Consent

A person to whom the Director has given a written consent to engage in the business of insurance shall notify the Director immediately if subsequently convicted of a crime. If the Director determines that the person has been convicted of an offense under 18 U.S.C. Section 1033 or any felony involving dishonesty or breach of trust making the person subject once again to the prohibitions in 18 U.S.C. Section 1033, the Director shall notify the person in writing by certified mail, return receipt requested, that the written consent previously issued has been withdrawn and that engaging in the business of insurance again violates 18 U.S.C. Section 1033.

Stat. Auth.: ORS 731.244
Stats. Implemented: ORS 744.013
Hist.: ID 9-2000, f. & cert. ef. 10-24-00

Limited License, Rental Companies

836-071-0355

Limited License Application, Rental Companies; Required Information

(1) On and after October 1, 2000, a rental company must hold a limited license in order to transact insurance as authorized by ORS 744.854. An applicant for a limited license as a rental company as authorized by 744.854 shall apply for a limited license to the Director of the Department of Consumer and Business Services electronically on a form established by the Director in accordance with directions set forth on the Insurance Division website of the Department of Consumer and Business Services at www.insurance.oregon.gov. The applicant shall include the following information in the application:

(a) The applicant's corporate, firm or other business entity name, the business address and telephone number of the principal place of business and the business address and telephone number of each additional location at which the applicant will transact business under the license;

(b) All assumed business names and other names under which the applicant will engage in business under the license;

(c) The names of all officers and directors or partners, or the sole proprietor or the owners if the applicant is other than a corporation or a partnership, and the name of the executive designated as the statewide filing officer as required by ORS 744.856;

(d) Whether any of the following has occurred with respect to an officer or director of the applicant, or a partner, or the sole proprietor or any of the owners if the applicant is other than a corporation or a partnership:

(A) Conviction of or indictment for a crime, including a felony involving dishonesty or a breach of trust to which 18 U.S.C. sec. 1033 applies;

(B) A judgment entered against the officer, director, partner, sole proprietor or owner if the applicant is other than a corporation or a partnership, for fraud;

(C) A claim of indebtedness by an insurer or agent, and the details of any such indebtedness; or

(D) Refusal, revocation or suspension of any license to act in any occupational or professional capacity in this or any other state;

(e) All states and provinces of Canada in which the applicant or an officer, director or partner of the applicant, or a sole proprietor or owner if the applicant is other than a corporation or a partnership, currently holds a license to engage in the transaction of insurance, or has held such a license within ten years prior to the date of the application;

(f) Whether any firm or corporation of which an officer, director or partner of the applicant, or the sole proprietor or an owner if the applicant is other than a corporation or a partnership, is or has been an officer, director, partner, sole proprietor or owner has ever filed for bankruptcy or been adjudged a bankrupt; and

(g) Any other information requested by the Director in the license application form.

(2) The applicant shall include with the application the following:

(a) The course of study to be used by the applicant for the training program for employees concerning the kinds of coverage offered under the license;

(b) A certification by the applicant that all employees to be involved in the sale or offer of coverage to members of the public have completed or will complete the training program prior to conducting the sales or offers; and

(c) A certification by the applicant that all employees to be involved in the sale or offer of coverage to members of the public will receive continuing education on a regular basis concerning the topics covered in the training program.

(d) A copy of the insurance sales material to be made available to renters of vehicles through the licensee.

(3) Each application shall be accompanied by a $200 fee.

(4) During the review of an application, the Director may require any other information that the Director determines will assist consideration of the application.

Stat. Auth.: ORS 731.244, 731.804, 744.852 & 744.858
Stats. Implemented: ORS 731.804, 744.852, 744.856 & 744.858
Hist.: ID 8-2000, f. & cert. ef. 7-24-00; ID 12-2012(Temp), f. 6-19-12, cert. ef. 8-1-12 thru 1-25-12; ID 18-2012, f. & cert. ef. 11-7-12

836-071-0360

License Renewal

(1) A limited license expires on the last day of the month in which the second anniversary of the initial issuance date occurs. Thereafter, the limited license shall expire on the second anniversary following each renewal.

(2) Not later than the license expiration date, a limited licensee applying for renewal must submit the following electronically as set forth on the Insurance Division website of the Department of Consumer and Business Services at www.insurance.oregon.gov, as applicable:

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

(b) A copy of the insurance sales material made available to renters of vehicles through the limited licensee.

(c) A renewal fee of $200.

(3) The Director may allow a limited licensee not more than 30 days to submit missing information on the application form if the fees, course of study and certifications have 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 limited license.

(5) An expired license may be renewed according to the requirements and procedures in ORS 744.009, except that the person renewing an expired license must pay $50 instead of twice the amount of the renewal fee.

Stat. Auth.: ORS 731.804 & 744.858
Stats. Implemented: ORS 731.804 & 744.856
Hist.: ID 8-2000, f. & cert. ef. 7-24-00; ID 12-2012(Temp), f. 6-19-12, cert. ef. 8-1-12 thru 1-25-12; ID 18-2012, f. & cert. ef. 11-7-12

836-071-0370

List of Employees Selling Coverage; Continuing Education

(1) A limited licensee shall maintain at all times a current list of all employees who are authorized by the limited licensee to offer and sell the insurance coverage for the limited licensee. The limited licensee must provide the list to the Director upon request and the list must otherwise be available and accessible to the Director at all reasonable hours at the principal place of business of the licensee in this state.

(2) For the purpose of complying with the education filing and certification requirements of ORS 744.856, not later than March 1 of each year, a limited licensee shall:

(a) File the syllabus for the training program with the Director; and

(b) Certify to the Director that all employees involved in the sale or offer of coverage to members of the public have completed or will complete the training program prior to conducting such sales or offers and will receive continuing education on a regular basis concerning the topics covered in the training program.

(3) For the purpose of the requirement in ORS 744.856 that employees of a limited licensee shall receive continuing education on a regular basis, a “regular basis” is at least once every 12 months.

Stat. Auth.: ORS 744.858
Stats. Implemented: ORS 744.856
Hist.: ID 8-2000, f. & cert. ef. 7-24-00

836-071-0380

Course of Training for Training Program and for Continuing Education

A limited licensee must include at least the following information in the training program for new employees who will be offering the insurance coverage and in the continuing education program for current employees offering the insurance coverage, as required by ORS 744.856:

(1) Materials for the purpose of facilitating employee understanding of the insurance coverages offered by the licensee.

(2) That renters of vehicles through the licensee are not required to purchase the coverage offered through the licensee as a condition of renting a vehicle.

(3) That renters must be informed that coverage offered by the licensee may duplicate existing coverage of the renter and that the renter should consult with the renter’s insurance agent if the renter has any question about existing coverage.

(4) Claims procedures.

(5) The identity of the insurer of the coverage offered by the licensee.

(6) That employees of the licensee are not authorized to evaluate a renter’s existing coverages.

Stat. Auth.: ORS 744.858
Stats. Implemented: ORS 744.856
Hist.: ID 8-2000, f. & cert. ef. 7-24-00

836-071-0390

Statewide Filing Officer

(1) Each limited licensee must appoint as the statewide filing officer of the licensee an executive or manager of the licensee who is located in this state. The statewide filing officer shall serve as the in-state representative and contact person for the limited licensee.

(2) The limited licensee shall notify the Director in writing of any change in the appointment.

Stat. Auth.: ORS 744.858
Stats. Implemented: ORS 744.852 & 744.856
Hist.: ID 8-2000, f. & cert. ef. 7-24-00

836-071-0400

Applicable Insurance Code Statutes

(1) Provisions of the Insurance Code that apply to the limited licensing program established by ORS 744.850 to 744.858 include but are not limited to the following: 744.007(6), 744.013, 744.014, 744.016, 744.018, 744.024, 744.028, 744.033, and 744.037.

(2) A limited licensee is not subject to ORS 744.225 and 744.227 and are not otherwise required to treat moneys paid by renters for insurance in a fiduciary capacity or to hold the moneys in a separate trust account.

Stat. Auth.: ORS 744.858
Stats. Implemented: ORS 744.856 & 744.858
Hist.: ID 8-2000, f. & cert. ef. 7-24-00

Self-Service Storage Limited License

836-071-0405

Statutory Purpose and Authority

(1) OAR 836-071-0405 to 836-071-0425 apply to an owner who issues, sells or offers for sale insurance coverage to occupants at a self-service storage facility.

(2) OAR 836-071-0405 to 836-071-0425 are adopted pursuant to the authority in section 8, chapter 280, Oregon Laws 2013 and ORS Chapter 744, for the purpose of implementing sections 2 to 8, Chapter 280, Oregon Laws 2013.

Stat. Auth.: ORS 731.244; sect. 8, ch. 280, OL 2013
Stats. Implemented: Sects. 2 to 8, ch. 280, OL 2013
Hist.: ID 9-2013, f. 12-31-13, cert. ef. 1-1-14

836-071-0410

Limited License Application, Self-Service Storage Facility; Required Information

(1) An applicant for a self-service storage facility limited license shall submit electronically to the Director of the Department of Consumer and Business Services a self-service storage limited license application in accordance with instructions located on the Insurance Division Website at www.insurance.oregon.gov .

(2) The applicant shall include all of the following information in the limited license application:

(a) The applicant's corporate, firm or other business entity name, the business address, electronic mail address and telephone number of the principal place of business and the business address and telephone number of each self-service storage facility at which the applicant will transact business under the limited license;

(b) All assumed business names and other names under which the applicant will engage in business under the limited license;

(c) Certification that the applicant is the owner of all locations included on the application;

(d) Whether the applicant or any agent or authorized representative of the applicant has:

(A) Been convicted of or indicted for a crime, including a felony involving dishonesty or a breach of trust to which 18 U.S.C. 1033 applies;

(B) Had a judgment entered against the applicant or person designated by the applicant as being responsible for the applicant’s compliance, for fraud;

(C) A claim of indebtedness by an insurer or agent, and the details of any such indebtedness; or

(D) Had any license to act in any occupational or professional capacity in this or any other state refused, revoked or suspended;

(E) Filed for bankruptcy or been adjudged bankrupt;

(e) All states and provinces of Canada in which the applicant currently holds a license to engage in the transaction of insurance, or has held such a license within ten years prior to the date of the application

(f) Any other information requested by the director.

(3) Each application shall be accompanied by a $200 fee.

Stat. Auth.: ORS 731.244 & 744.001; sect. 8, ch. 280, OL 2013
Stats. Implemented: Sects. 2 to 8, ch. 280, OL 2013
Hist.: ID 9-2013, f. 12-31-13, cert. ef. 1-1-14

836-071-0415

Materials and Requirements of Application

(1) Prior to selling any insurance to an occupant of a self-service storage facility, an applicant shall provide written material to the Director of the Department of Consumer and Business Services for approval as required by section 4, chapter 280, Oregon Laws 2013.

(2) In addition to providing written material at the time of initial licensing, the licensee must provide the director with any materials that change during the term of the license.

(3) The written material provided must:

(a) Comply with the requirements of section 4, chapter 280, Oregon Laws 2013; and

(b) Provide an assurance that the enrolled customer may cancel the storage unit insurance coverage at any time and that the person paying the premium shall receive a refund of the unused portion of any amount that has been paid for coverage. A reasonable administrative fee may be charged in an amount not to exceed 10 percent of the refund due.

Stat. Auth.: ORS 731.244; sect. 8, ch. 280, OL 2013
Stats. Implemented: Sects. 2 to 8, ch. 280, OL 2013
Hist.: ID 9-2013, f. 12-31-13, cert. ef. 1-1-14

836-071-0420

Requirements for Limited Licensee, List of Employees Selling Coverage; Training Program

(1) A limited licensee shall maintain at all times standard operating procedures to assure that all employees, agents and authorized representatives are authorized to issue, sell or offer for self-service storage unit property insurance coverage to a customer. The training program must instruct the employees or agents about the coverage the insurance provides and about the provisions of sections 2 to 8, chapter 280, Oregon Laws 2013. The limited licensee must provide a description of these procedures to the director at anytime that a change is made, at the time that the limited license is renewed or at any time at the request of the director.

(2) A limited licensee must ensure that the information required under section 280 chapter 280 Oregon Laws 2013, is included in any training program for the limited licensee’s employees, agents and authorized representatives who will be issuing, selling or offering for sale self-service storage insurance coverage. The licensee must maintain a list of all employees trained to sell coverage. The licensee must provide the list to the director upon request, within 21 calendar days.

(3) A limited licensee must provide certification by the entity or the applicant that the written disclosure materials made available to prospective customers will be maintained by the entity or the applicant for a period of seven years and must be made available to the Department of Consumer and Business Services director upon request within 21 calendar days.

Stat. Auth.: ORS 731.244; sect. 8, ch. 280, OL 2013
Stats. Implemented: Sects. 2 to 8, ch. 280, OL 2013
Hist.: ID 9-2013, f. 12-31-13, cert. ef. 1-1-14

836-071-0425

Limited License Renewal

(1) A limited license expires on the last day of the month in which the second anniversary of the initial issuance date occurs. Thereafter, the limited license shall expire on the second anniversary following each renewal.

(2) A limited licensee applying for renewal must submit the following to the director electronically as set forth on the website of the National Insurance Producer Registry in accordance with instructions located on the Insurance Division website at www.insurance.oregon.gov. The renewal application must include:

(a) A completed renewal application on the form entitled “Renewal Notice for Self-Service Storage Insurance Vendors.” must be returned to the director electronically in accordance with instructions set forth on Insurance Division website not later than the limited license expiration date.

(b) An updated certification by the supervising entity or the limited licensee that all employees, agents and authorized representatives involved in the issuance, sale or offering for sale of self-service storage coverage to customers have completed or will complete the training program outlined in section (2)(c) of this rule, prior to issuing, selling or offering for sale self -service storage insurance coverage.

(c) An outline of and copies of materials the licensee uses in the training program. The director may request copies of materials annually or at renewal and at the time of any change in materials. The entity must present a complete copy of materials at renewal. In addition, materials the entity must present the materials at the time of any change and at any time upon the request of the director.

(d) A renewal fee of $200.

(3) The director may allow a limited licensee not more than 30 days after the limited license expiration date to submit missing information on the renewal application form if the renewal application, fees, certification and disclosure materials have 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 limited license.

(5) An expired limited license may be renewed up to one year after the limited license expiration date. The fee to renew an expired limited license is $250.

Stat. Auth.: ORS 731.244 & 744.001; Sect. 8, ch. 280, OL 2013
Stats. Implemented: Sects. 2 to 8, ch. 280, OL 2013
Hist.: ID 9-2013, f. 12-31-13, cert. ef. 1-1-14

836-071-0430

Remission to Insurer; Funds Held in Trust; Compensation

(1) If authorized by an insurer the limited licensee that bills and collects the cost of self-service storage insurance coverage from an enrolled customer is not required to deposit the amount paid in a segregated account but shall remit the amount collected to the insurer or the supervising entity within 60 days of receipt from the enrolled customer.

(2) Moneys collected by a limited licensee from the enrolled customer for the cost of the self-service storage insurance are considered funds held by the licensee in trust for the benefit of the insurer.

(3) A limited licensee may receive compensation from an insurer for billing and collecting the cost of self-service storage insurance coverage purchased by enrolled customers.

(4) Limited licensees and insurers operating under a self-service storage limited license are not subject to ORS 744.083 and 744.084 for purposes of premium collected for self-service storage insurance.

Stat. Auth.: ORS 731.244, 744.001 & 744.083; Sec. 8, ch. 280, OL 2013
Stats. Implemented: Sec. 2 to 8, ch. 280, OL 2013
Hist.: ID 9-2013, f. 12-31-13, cert. ef. 1-1-14

Surplus Lines

836-071-0500

Nonresident Licensing and Placement Requirements

(1) This rule establishes requirements that a nonresident surplus lines licensee or a nonresident insurance producer not licensed in this state must satisfy in connection with placement of a surplus lines insurance policy where Oregon is determined to be the home state as defined in ORS 735.405(8).

(2) A person who is licensed as a resident agent or producer in another state must be licensed in this state as a nonresident surplus lines insurance licensee in order to place a surplus lines insurance policy on a risk where Oregon is determined to be the home state.

(3) When a nonresident surplus lines licensee transacts surplus lines insurance on a risk where Oregon is determined to be the home state, the nonresident surplus lines licensee shall comply with the placement requirements in ORS 735.410(1) and (2) related to an exempt commercial purchaser

Stat. Auth.: ORS 731.244 & 735.410
Stats. Implemented: ORS 735.410
Hist.: ID 6-2002, f. & cert. ef. 2-6-02; ID 21-2011, f. 12-16-11, cert. ef. 1-1-12

836-071-0501

Allocation of Coverage Totals on Multi-state Policies

(1) This rule establishes requirements that a surplus lines licensee must satisfy in connection with the reporting of a surplus lines insurance policy where Oregon is determined to be the home state as defined in ORS 735.405(8), and the requirements that an insured who obtains independently procured insurance must satisfy in connection with the reporting of a surplus lines insurance policy in section 5, chapter 660, Oregon Laws 2011 where Oregon is determined to be the home state.

(2) For each surplus lines insurance policy with coverage starting at any time beginning January 1, 2012 through December 31, 2016 where Oregon is determined to be the home state, each insured who obtains independently procured insurance must include in their written report filed with the Director of the Department of Consumer and Business Services the allocated premium, by coverage for Oregon and other applicable states in accordance with the filing instructions on the Surplus Line Association of Oregon Web site in addition to the filing requirements in section 5, chapter 660, Oregon Laws 2011. Notwithstanding the January 1, 2012 through December 31, 2016 time period referenced above, on or after January 1, 2015 the Director may determine that insureds no longer need to include this allocated premium information in their filed written report.

(3) For each surplus lines insurance policy with coverage starting at any time beginning January 1, 2012 through December 31, 2016 where Oregon is determined to be the home state, a surplus lines licensee must include in their statement filed with the Director the allocated premium, by coverage for Oregon and other applicable states in accordance with the filing instructions on the Surplus Line Association of Oregon Web site in addition to the filing requirements in ORS 735.425(1) and (2). Notwithstanding the January 1, 2012 through December 31, 2016 time period referenced above, on or after January 1, 2015 the Director may determine that surplus lines licensees no longer need to include this allocated premium information in their filed statement.

(4) The written report required in section 5, chapter 660, Oregon Laws 2011 and the statements required in ORS 735.425(1) must be filed with the Surplus Line Association of Oregon.

Stat. Auth.: ORS 731.244 & 735.425
Stats. Implemented: ORS 735.425 & OL 2011, Ch. 660 ¦ 5
Hist.: ID 21-2011, f. 12-16-11, cert. ef. 1-1-12

836-071-0550

Statutory Purpose and Authority

(1) OAR 836-071-0550 to 836-071-0570 apply to vendors who sell or lease portable electronics devices, including but not limited to cell phones or electronic tablets, and wish to issue, sell or offer for sale portable electronics insurance coverage.

(2) OAR 836-071-0550 to 836-071-0570 are adopted pursuant to the authority in section 7, chapter 393, Oregon Laws 2011 and ORS 705.135, for the purpose of implementing sections 1 to 7, chapter 393, Oregon Laws 2011.

Stat. Auth. : Ch. 393 § 7, OL 2011 & ORS 705.135
Stats. Implemented: Ch. 393 §§ 1 to 7, OL 2011
Hist.: ID 22-2011, f. 12-16-11, cert. ef. 1-1-12

836-071-0560

Limited License Application, Portable Electronics Insurance Coverage; Required Information

(1) An applicant for a portable electronics limited license shall submit electronically to the Director of the Department of Consumer and Business Services a portable electronics limited license application on the form entitled “Portable Electronics Insurance Vendor.” The form is set forth on the Insurance Division website of the Department of Consumer and Business Services at www.insurance.oregon.gov.

(2) In addition to the requirements in ORS 646A.577(2)(b), the applicant shall include all of the following information in the limited license application:

(a) The applicant's corporate, firm or other business entity name, the business address, e-mail address and telephone number of the principal place of business and the business address and telephone number of each additional location at which the applicant will transact business under the limited license.

(b) All assumed business names and other names under which the applicant will engage in business under the limited license.

(c) Whether any of the following has occurred with respect to the applicant or the employee, agent or authorized representative of the applicant that the applicant is designating as being responsible for the applicant’s compliance with ORS 646A.575 to 646A.592:

(A) Conviction of or indictment for a crime, including a felony involving dishonesty or a breach of trust to which 18 U.S.C. sec. 1033 applies;

(B) A judgment entered against the applicant or person designated by the applicant as being responsible for the applicant’s compliance with ORS 646A.575 to 646A.592, for fraud;

(C) A claim of indebtedness by an insurer or agent, and the details of any such indebtedness; or

(D) Refusal, revocation or suspension of any license to act in any occupational or professional capacity in this or any other state.

(d) All states and provinces of Canada in which the applicant currently holds a license to engage in the transaction of insurance, or has held such a license within ten years prior to the date of the application.

(e) Whether the applicant has ever filed for bankruptcy or been adjudged a bankrupt.

(f) The syllabus for the training program that is developed by the insurer or supervising entity that issued the portable electronics insurance policy to the limited licensee.

(g) A certification by the supervising entity or the applicant that all employees, agents and authorized representatives to be involved in the issuance, sale or offering for sale of portable electronics insurance coverage to customers have completed or will complete the training program under ORS 646A.585(1)(b), prior to issuing, selling or offering for sale portable electronics insurance coverage.

(h) A certification by the supervising entity or the applicant that a copy of all written disclosure materials, as required under ORS 646A.582, that are currently being made available to prospective customers of portable electronics or have been made available to prospective customers in the past, shall be maintained by the supervising entity or the applicant. This information shall be maintained by the supervising entity or the applicant for a period of seven years and must be provided to the Director, upon request, within 21 calendar days.

(i) Any other information requested by the Director in the license application form.

(3) Each application shall be accompanied by a $200 fee.

(4) During the review of an application, the Director may require any other information that the Director determines will assist consideration of the application.

Stat. Auth. : ORS 646A.575 - 646A.590 & 705.135
Stats. Implemented: ORS 646A.575 - 646A.590
Hist.: ID 22-2011, f. 12-16-11, cert. ef. 1-1-12; ID 12-2012(Temp), f. 6-19-12, cert. ef. 8-1-12 thru 1-25-12; ID 18-2012, f. & cert. ef. 11-7-12

836-071-0565

Limited License Renewal

(1) A limited license expires on the last day of the month in which the second anniversary of the initial issuance date occurs. Thereafter, the limited license shall expire on the second anniversary following each renewal.

(2) A limited licensee applying for renewal must submit the following to the Director electronically as set forth on the Insurance Division website of the Department of Consumer and Business Services at www.insurance.oregon.gov:

(a) A completed renewal application on the form entitled “Renewal Notice for Portable Electronics Insurance Vendors.” The renewal application must be returned to the director electronically in accordance with instructions set forth on the Insurance Division website of the Department of Consumer and Business Services at www.insurance.oregon.gov not later than the limited license expiration date.

(b) An updated certification by the supervising entity or the limited licensee that all employees, agents and authorized representatives to be involved in the issuance, sale or offering for sale of portable electronics insurance coverage to customers have completed or will complete the training program under ORS 646A.585(1)(b), prior to issuing, selling or offering for sale portable electronics insurance coverage.

(c) An updated certification by the supervising entity or the limited licensee that a copy of all written disclosure materials, as required under ORS 646A.582, that are currently being made available to prospective customers of portable electronics or have been made available to prospective customers in the past, shall be maintained by the supervising entity or the applicant. This information shall be maintained by the supervising entity or the applicant for a period of seven years and must be provided to the Director, upon request, within 21 calendar days.

(d) A renewal fee of $200.

(3) The Director may allow a limited licensee not more than 30 days after the limited license expiration date to submit missing information on the renewal application form if the renewal application, fees, certification and disclosure materials have 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 limited license.

(5) An expired limited license may be renewed up to one year after the limited license expiration date. The fee to renew an expired limited license is $250.

Stat. Auth. : ORS 646A.575 - 646A.590 & 705.135
Stats. Implemented: ORS 646A.575 - 646A.590
Hist.: ID 22-2011, f. 12-16-11, cert. ef. 1-1-12; ID 12-2012(Temp), f. 6-19-12, cert. ef. 8-1-12 thru 1-25-12; ID 18-2012, f. & cert. ef. 11-7-12

836-071-0570

List of Employees Selling Coverage; Training Program

(1) A limited licensee shall maintain at all times standard operating procedures to assure that all employees, agents and authorized representatives are authorized to issue, sell or offer for sale portable electronics insurance coverage to a customer. The limited licensee must provide a description of these procedures, upon request, to the Director within 21 calendar days.

(2) A limited licensee must ensure that the information required under section 5(1)(b), chapter 393, Oregon Laws 2011, is included in any training program for the limited licensee’s employees, agents and authorized representatives who will be issuing, selling or offering for sale portable electronics insurance coverage.

Stat. Auth. : Ch. 393 § 7, OL 2011 & ORS 705.135
Stats. Implemented: Ch. 393 §§ 1 to 7, OL 2011
Hist.: ID 22-2011, f. 12-16-11, cert. ef. 1-1-12

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