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Oregon Bulletin

February 1, 2011

 

 Department of Consumer and Business Services,
Insurance Division
Chapter 836

Rule Caption: Adoption of Annual and Supplemental Statement Blanks and Instructions for Reporting Year 2010.

Adm. Order No.: ID 22-2010

Filed with Sec. of State: 12-30-2010

Certified to be Effective: 1-1-11

Notice Publication Date: 12-1-2010

Rules Amended: 836-011-0000

Subject: This rulemaking prescribes, for reporting year 2010, the required forms for the annual and supplemental financial statements required of insurers and health care service contractors under ORS 731.574, as well as the necessary instructions for completing the forms.

Rules Coordinator: Sue Munson—(503) 947-7272

836-011-0000

Annual Statement Blank and Instructions

Annual Statement Blank and Instructions

(1) For the purpose of complying with ORS 731.574, every authorized insurer, including every health care service contractor, shall file its financial statement required by ORS 731.574 for the 2010 reporting year on the annual statement blank approved for the 2010 reporting year by the National Association of Insurance Commissioners, for the type or types of insurance transacted by the insurer.

(2) Every authorized insurer, including every health care service contractor, shall complete its annual statement blank under section (1) of this rule for the 2010 reporting year, according to the applicable instructions published for that year by the National Association of Insurance Commissioners, for completing the blank, as required by ORS 731.574.

(3) Every authorized insurer, including every health care service contractor, shall file each annual statement supplement for the 2010 reporting year, as required by the applicable instructions published for that year by the National Association of Insurance Commissioners, and shall complete the supplement according to those instructions.

(4) This rule is adopted under the authority of ORS 731.244, 731.574 and 733.210 for the purpose of implementing ORS 731.574 and 733.210.

Stat. Auth.: ORS 731.244, 731.574 & 733.210

Stats. Implemented: ORS 731.574 & 733.210

Hist.: ID 8-1993, f. & cert. ef. 9-23-93; ID 10-1994, f. & cert. ef. 12-14-94; ID 7-1995, f. & cert. ef. 11-15-95; Renumbered from 836-013-0000; ID 4-1996, f. 2-28-96, cert. ef. 3-1-96; ID 16 -1996, f. & cert. ef. 12-16-96; ID 11-1997, f. & cert. ef. 10-9-97; ID 16-1998, f. & cert. ef. 11-10-98; ID 5-1999, f. & cert. ef. 11-18-99; ID 1-2001, f. & cert. ef. 2-7-01; ID 4-2002, f. & cert. ef. 1-30-02; ID 6-2003, f. & cert. ef. 12-3-03; ID 1-2006, f. & cert. ef. 1-23-06; ID 9-2007, f. & cert. ef. 11-8-07; ID 1-2009, f. & cert. ef. 1-29-09; ID 11-2009, f. & cert. ef. 12-9-09; ID 22-2010, f. 12-30-10, cert. ef. 1-1-11

 

Rule Caption: Changes in process for applying for insurance license.

Adm. Order No.: ID 23-2010

Filed with Sec. of State: 12-30-2010

Certified to be Effective: 1-1-11

Notice Publication Date: 11-1-2010

Rules Adopted: 836-071-0118

Rules Amended: 836-009-0007, 836-071-0110, 836-071-0120

Subject: These rules restructure the order in which a person applies for a license to eliminate a pre-approval process that is currently conducted before other steps in the licensing process, such as examinations and background checks. Under the reorganized process, the pre-approval requirement is deleted entirely. The applicant will now complete all other steps in the licensing process before submitting the application to the Insurance Division.

      To clarify the process, a new rule states the order of the process for applying for a license.

      The rules also amend the fee schedule for examinations, in most cases reducing the amount of the fee; if the fee is not reduced, it remains unchanged.

Rules Coordinator: Sue Munson—(503) 947-7272

836-009-0007

Fees

(1) The following fees apply to certificates of authority:

(a) The fee for application for a certificate of authority to transact insurance as an insurer is $2,500. The fee for application as a domestic insurer must be paid when application for a permit to organize as a domestic insurer is made. Otherwise, the fee must be paid when the application for the certificate is made;

(b) The fee for annual continuation of a certificate of authority issued under subsection (a) of this section is $1,500;

(c) The fee for reinstatement of a certificate of authority is $100.

(2) The fees in this section apply to examinations for licenses for insurance producers, adjusters and insurance consultants. The fees may be charged by the examination vendor under contract with the Department of Consumer and Business Services and are as follows:

(a) Examination fees:

(A) Insurance producer, property and casualty insurance or life and health insurance — $55;

(B) Insurance producer, property insurance only, casualty insurance only, personal lines insurance only, life insurance only or health insurance only — $45;

(C) Surplus lines licensee — $45;

(D) Adjuster, general lines insurance or life and health insurance — $45;

(E) Adjuster, health insurance or any single other line designated by rule — $45;

(F) Consultant, life and health insurance or general lines insurance — $55;

(G) Consultant, life insurance only, health insurance only or any other single line designated by rule — $45;

(b) Reexamination fees, to be charged when the applicant retakes an examination:

(A) Insurance producer, property and casualty insurance or life and health insurance — $55

(B) Insurance producer, property insurance only, casualty insurance only, personal lines insurance only, life insurance only or health insurance only — $45;

(C) Surplus lines licensee — $45;

(D) Adjuster, general lines insurance or life and health insurance — $45;

(E) Adjuster, health insurance or any single other line designated by rule — $45;

(F) Consultant, life and health insurance or general lines insurance — $55;

(G) Consultant, life insurance only, health insurance only or any other single line designated by rule — $45;

(c) For purposes of the fees charged under subsections (a) and (b) of this section:

(A) 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; and

(B) The personal lines line is a subcategory of the casualty insurance line. Consequently, a person who holds a license that is endorsed to transact casualty insurance need not obtain a separate endorsement to transact personal lines insurance.

(3) The following fees apply to application for licenses for insurance producers, adjusters and insurance consultants:

(a) Resident insurance producer — $30;

(b) Nonresident insurance producer — $30;

(c) Adjuster — $30;

(d) Insurance consultant — $30.

(4) The following fees apply to issuance of licenses for insurance producers, adjusters and insurance consultants:

(a) Resident insurance producer — $45;

(b) Nonresident insurance producer — $45;

(c) Adjuster — $45;

(d) Insurance consultant — $45;

(e) In addition, the actual cost of any criminal records check under 836-072-0010. The amount charged will not exceed the actual cost of acquiring and furnishing criminal offender information as authorized by ORS 181.534(9)(g).

(5) The examination fee under section (2) of this rule must be paid to the examination vendor. The application fee under section (3) of this rule and the license issuance fee under section (4) of this rule must be paid at the same time. There is no refund of the application and examination fees. Refund of the license issuance fee is governed by section (14) of this rule.

(6) The fees established in this section apply to the renewal of licenses for insurance producers, adjusters and insurance consultants. A license expires biennially in the month of the individual’s birthday anniversary. The fees are as follows:

(a) Resident insurance producer — $45;

(b) Nonresident insurance producer — $45;

(c) Adjuster — $45;

(d) Insurance consultant — $45.

(7) The applicable fee under sections (3) and (4) of this rule shall be paid for each category of insurance business appearing on a license.

(8) The following fees apply to certificates of registration for legal expense organizations:

(a) Application for a certificate of registration -- $350;

(b) Renewal of certificate of registration -- $350. The fee under this subsection shall be paid annually.

(9) Annual registration of a foreign risk retention group -- $350. The fee under this section shall be paid at the time of initial registration and annually thereafter.

(10) Annual registration of a purchasing group -- $100. The fee under this section shall be paid at the time of initial registration and annually thereafter.

(11) The license for a rating organization -- $180. The fee under this section shall be paid at the time of initial licensing and triennially thereafter.

(12) The fee for filing a statement by an acquiring party under ORS 732.521 for the purpose of acquiring a controlling interest in an insurer (a “Form A” filing as prescribed in OAR 836-027-0100) is $50 per hour of Division staff time spent on reviewing the statement, with a minimum fee of $5,000.

(13) The Fire Marshal shall pay $50,000 each year for services provided by the Department in the collection of gross premium taxes on insurance covering the peril of fire under ORS 731.820.

(14) Fees paid as required under this rule are not refundable except as provided in this section. If the Director determines that an amount paid exceeds the amount legally due and payable to the Department and the amount of the overpayment is less than $20, the Department shall refund the amount only upon receipt of a written request from the payer or the representative of the payer. A fee paid for a license under section (4) of this rule is refundable if the license applicant fails the examination or if the license is otherwise not issued to the applicant.

(15) The amendments to section (2)(a), (b) and (d) of 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, and those same amendments to section (2)(a) and (b) of this rule are repealed effective July 1, 2003.

Stat. Auth.: ORS 181.534, 293.445, 731.244, 731.804 & 744.037

Stats. Implemented: ORS 181.534, 731.804, 744.001, 744.002, 744.004, 744.007, 744.058, 744.062, 744.063, 744.064, 744.072, 744.528, 744.531, 744.535, 744.619 & 744.621

Hist.: ID 6-1989(Temp), f. & cert. ef. 7-3-89; ID 14-1989, f. 12-12-89, cert. ef. 1-1-90; ID 21-1990, f. & cert. ef. 12-18-90; ID 4-1991, f. & cert. ef. 4-25-91; ID 8-1991, f. & cert. ef. 10-21-91; ID 7-1993, f. & cert. ef. 9-3-93; ID 16-1997, f. 11-25-97, cert. ef. 1-1-98; ID 6-1999, f. 12-13-99, cert. ef. 1-1-00; ID 14-2000, f. 12-27-00, cert. ef. 1-1-01; ID 13-2001, f. 11-16-01, cert. ef. 1-1-02; 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 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 23-2010, f. 12-30-10, cert. ef. 1-1-11

836-071-0110

Fingerprints

All fingerprints furnished to the Director by an applicant for a license shall be forwarded to the Identification Division, Oregon State Police for processing and search. If the Department and an examination administrator agree by contract that the examination administrator will perform the duties of obtaining fingerprints of applicants and submitting the fingerprints for Oregon or nationwide criminal history checks, an applicant shall submit the fingerprint card 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

836-071-0118

Requirements That Must Be Completed Prior to Submitting Licensing Application to Director

Before submitting an application for a license to 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 under OAR 836-071-0119;

(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 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

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

 

Rule Caption: Insurer Provision of Commercial Loss Runs to Policyholders.

Adm. Order No.: ID 24-2010

Filed with Sec. of State: 12-30-2010

Certified to be Effective: 3-1-11

Notice Publication Date: 11-1-2010

Rules Adopted: 836-080-0800, 836-080-0805, 836-080-0810

Subject: In order to provide proposals or bind commercial property, commercial liability including umbrella or excess policies, workers’ compensation, and commercial automobile insurance, most property and casualty insurers require the prospective insured to provide official documentation from their prior insurer regarding reported losses on all reported claims (“loss runs”). These rules require certain property and casualty insurers or their appointed producers of record to provide loss runs on a timely basis to current and prior commercial policyholders, upon the request of the policyholder.

Rules Coordinator: Sue Munson—(503) 947-7272

836-080-0800

Definitions

As used in OAR 836-080-0800 to 836-080-0810, “loss runs” means information about a current or prior commercial policyholder’s reported losses, including paid amounts on all reported claims. Such losses shall be valued as of the insurer’s most current valuation date, but not more than 90 days prior to the date of the request for loss runs.

Stat. Auth.: ORS 731.244

Stats. Implemented: ORS 746.160 & 746.240

Hist.: ID 24-2010, f. 12-30-10, cert. ef. 3-1-11

836-080-0805

Statutory Authority, Purpose, and Applicability

(1) OAR 836-080-0800 to 836-080-0810 are adopted by the Director of the Department of Consumer and Business Services pursuant to the Director’s general rulemaking authority in ORS 731.244.

(2) The purpose of OAR 836-080-0800 to 836-080-0810 is to require certain property and casualty insurers or their appointed producers of record to provide loss runs on a timely basis to current and prior commercial policyholders, upon request by the policyholder to the insurer or its appointed producer of record.

(3)(a) Except as provided in subsection (b) of this section, OAR 836-080-0800 to 836-080-0810 apply with respect to all commercial property, commercial liability including umbrella or excess policies, and commercial automobile insurance except title and surety insurance.

(b) OAR 836-080-0810(2) applies only to workers’ compensation insurance.

Stat. Auth.: ORS 731.244

Stats. Implemented: ORS 746.160 & 746.240

Hist.: ID 24-2010, f. 12-30-10, cert. ef. 3-1-11

836-080-0810

Provision of Commercial Loss Runs

(1) Property and casualty insurers or their appointed producers of record shall make loss runs available to current and prior commercial policyholders within 15 calendar days upon request by the policyholder to the insurer or its appointed producer of record. The insurer shall provide five years of loss runs, or, if the commercial policyholder has been insured with that insurer for less than five years, for the entire period the policyholder has been insured with that insurer.

(2) Loss runs related to workers’ compensation insurance shall not include confidential worker medical and vocational claim records pursuant to ORS 656.360 and 656.362.

(3) Violation of this rule is an unfair trade practice for the purpose of ORS 746.240.

Stat. Auth.: ORS 731.244

Stats. Implemented: ORS 746.160 & 746.240

Hist.: ID 24-2010, f. 12-30-10, cert. ef. 3-1-11

Notes
1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2010.

2.) Copyright 2011 Oregon Secretary of State: Terms and Conditions of Use

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