2021 Oregon Revised Statutes
Chapter 735 - Alternative Insurance
Section 735.315 - Foreign risk retention groups; conditions of doing business in Oregon; prohibited acts.


(1) Before transacting insurance in this state, a risk retention group shall submit to the director:
(a) A statement identifying the state or states in which the risk retention group is chartered and licensed as a liability insurance company, its date of chartering, its principal place of business and such information, including information on its membership, as the director may require to verify that the risk retention group is qualified under ORS 735.305 (11);
(b) A copy of its plan of operation or a feasibility study and revisions of such plan or study submitted to its state of domicile. The requirement of the submission of a plan of operation or a feasibility study shall not apply with respect to any line or classification of liability insurance that:
(A) Was defined in the federal Product Liability Risk Retention Act of 1981, as amended by the Risk Retention Amendments of 1986, before October 27, 1986; and
(B) Was offered before October 27, 1986, by any risk retention group that had been chartered and operating for not less than three years before October 27, 1986; and
(c) A statement of registration that designates the director as its agent for the purpose of receiving service of legal documents or process.
(2) A risk retention group doing business in this state shall submit to the director:
(a) A copy of the group’s financial statement submitted to its state of domicile, which shall be certified by an independent public accountant and contain a statement of opinion on loss and loss adjustment expense reserves made by a member of the American Academy of Actuaries or a qualified loss reserve specialist, under criteria established by the National Association of Insurance Commissioners;
(b) A copy of each examination of the risk retention group as certified by the director or public official conducting the examination;
(c) Upon request by the director, a copy of any audit performed with respect to the risk retention group; and
(d) Such information as may be required to verify its continuing qualification as a risk retention group under ORS 735.305 (11).
(3) A risk retention group is subject to taxation in this state as follows:
(a) All premiums paid for coverage within this state to risk retention groups shall be subject to taxation at the rate applicable to foreign admitted insurers and the taxes owing shall be subject to the same interest, fines and penalties for nonpayment as those applicable to foreign admitted insurers.
(b) To the extent insurance producers are used, they shall report and pay the taxes for the premiums for the risks that they have placed with or on behalf of a risk retention group not organized in this state.
(c) To the extent insurance producers are not used or fail to pay the tax, each risk retention group shall pay the tax for risks insured within the state. Further, each risk retention group shall report all premiums paid to it for risks insured within the state.
(4) A risk retention group and its agents and representatives shall comply with ORS 746.230 and 746.240. If the director seeks an injunction regarding such conduct, the injunction must be obtained from a court of competent jurisdiction.
(5) A risk retention group must submit to an examination by the director to determine its financial condition if the director of the jurisdiction in which the group is chartered has not initiated an examination or does not initiate an examination within 60 days after a request by the director of this state. Any such examination shall be coordinated to avoid unjustified repetition. Examinations may be conducted in accordance with the examiner handbook of the National Association of Insurance Commissioners.
(6) A policy issued by a risk retention group shall contain in 10 point type on the front page and the declaration page, the following notice:
______________________________________________________________________________
Notice
This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and rules of your state. State insurance insolvency guaranty funds are not available for your risk retention group.
______________________________________________________________________________
(7) The following acts by a risk retention group are prohibited:
(a) The solicitation or sale of insurance by a risk retention group to any person who is not eligible for membership in such group; and
(b) The solicitation or sale of insurance by, or operation of, a risk retention group that is in a hazardous financial condition or is financially impaired.
(8) No risk retention group shall be allowed to do business in this state if an insurer is directly or indirectly a member or owner of the risk retention group, other than in the case of a risk retention group all of whose members are insurers.
(9) No risk retention group may offer insurance policy coverage prohibited by the Insurance Code.
(10) A risk retention group not organized in this state and doing business in this state must comply with a lawful order issued in a voluntary dissolution proceeding or in a delinquency proceeding commenced by the insurance commissioner of any state if there has been a finding of financial impairment after an examination under subsection (5) of this section. [1987 c.774 §101; 2003 c.364 §92]

Structure 2021 Oregon Revised Statutes

2021 Oregon Revised Statutes

Volume : 18 - Financial Institutions, Insurance

Chapter 735 - Alternative Insurance

Section 735.005 - Definitions for ORS 735.005 to 735.145.

Section 735.015 - Purpose.

Section 735.055 - Association board of directors; appointment; compensation, expenses of members; quorum.

Section 735.065 - Required association functions; assessments.

Section 735.075 - Discretionary association functions.

Section 735.085 - Plan of operation; submission to director; approval of plan; compliance with plan; rules.

Section 735.095 - Contents of plan of operation.

Section 735.150 - Definitions for ORS 735.150 to 735.190.

Section 735.152 - Application of laws.

Section 735.154 - Rules.

Section 735.156 - Confidentiality of documents and materials; public disclosure.

Section 735.158 - Certificate of authority; restriction on types of insurance; requirements for certification; requirements for corporations; fees; expiration and renewal of certificate.

Section 735.160 - Business name.

Section 735.162 - Capital and surplus requirements; form permitted; security for branch captive insurers; dividends and distributions.

Section 735.164 - Incorporation of pure captive insurer and association captive insurer; application; fee; approval; alien captive insurer; application of corporation laws.

Section 735.166 - Investment requirements for association captive insurer.

Section 735.168 - Allowable risks for captive insurer; risk distribution pool; annual actuarial opinion; rules.

Section 735.170 - Rating organization.

Section 735.172 - Reporting; contents; filing date; waiver of annual statement for alien captive insurer; rules.

Section 735.174 - Examination; frequency; scope; payment of expenses.

Section 735.176 - Compliance with sound actuarial principles.

Section 735.178 - Suspension or revocation of certificate of authority.

Section 735.180 - Branch captive insurer as pure captive insurer; rules.

Section 735.182 - Examination of branch captive insurer and alien captive insurer; payment of charges and expenses.

Section 735.184 - Requirements for foreign captive insurer to provide insurance in this state.

Section 735.186 - Management of assets of captive reinsurer.

Section 735.188 - Application of captive reinsurer for certificate of authority.

Section 735.190 - Incorporation of captive reinsurer.

Section 735.200 - Legislative findings; purpose.

Section 735.205 - Definitions for ORS 735.200 to 735.260.

Section 735.210 - Formation of market assistance plans; rules.

Section 735.215 - Findings prior to formation of joint underwriting association; hearing.

Section 735.245 - Conditions for policyholder surcharge.

Section 735.265 - Liquor liability insurance risk and rate classifications; rules.

Section 735.305 - Definitions for ORS 735.300 to 735.365.

Section 735.310 - Qualifications for risk retention group; plan of operation; application; notification to National Association of Insurance Commissioners.

Section 735.315 - Foreign risk retention groups; conditions of doing business in Oregon; prohibited acts.

Section 735.320 - Relationship to insurance guaranty fund and joint underwriting association.

Section 735.330 - Purchasing groups; notice of intent to do business; registration; exceptions.

Section 735.400 - Purposes of ORS 735.400 to 735.495.

Section 735.405 - Definitions for ORS 735.400 to 735.495.

Section 735.410 - Conditions for procuring insurance through nonadmitted insurer; rules.

Section 735.415 - Qualifications for placement of coverage with nonadmitted insurer.

Section 735.417 - Insured required to report and pay taxes on independently procured insurance covering Oregon home state risks.

Section 735.420 - Declaration of ineligibility of surplus lines insurer.

Section 735.425 - Filing by licensee after placement of surplus lines insurance.

Section 735.430 - Surplus Line Association of Oregon; fees.

Section 735.435 - Evidence of insurance; contents; change; penalty; notice regarding Insurance Guaranty Association; rules.

Section 735.455 - Authority of licensee; rules.

Section 735.460 - Records of licensee; examination.

Section 735.465 - Monthly reports; rules.

Section 735.470 - Premium tax; collection; payment; refund; rules.

Section 735.480 - Suspension or revocation of license; refusal to renew; grounds.

Section 735.485 - Actions against surplus lines insurer.

Section 735.490 - Jurisdiction in action against insurer; service of summons and complaint; response.

Section 735.495 - Short title; severability.

Section 735.500 - Requirements for certification as retainer medical practice; disclosures; rules.

Section 735.510 - Notice to department of specified changes to practice.

Section 735.515 - Charges for services not covered by contract.

Section 735.520 - Oregon Essential Workforce Health Care Program; supplemental payments to eligible employers; requirements for participation; rules.

Section 735.530 - Definitions for ORS 735.530 to 735.552.

Section 735.532 - Registration of pharmacy benefit managers; fees; rules.

Section 735.533 - Denial, suspension or revocation of registration as pharmacy benefit manager; basis; complaint; rules.

Section 735.534 - Claim reimbursement; maximum allowable costs; documentation; rules.

Section 735.536 - Requirements for pharmacy benefit manager’s reimbursement for cost of drugs; rules.

Section 735.540 - Definitions for ORS 735.540 to 735.552.

Section 735.542 - Pharmacy claims audits; requirements.

Section 735.544 - Pharmacy claims audits; standards for review of claims.

Section 735.546 - Pharmacy claims audits; auditors.

Section 735.548 - Pharmacy claims audits; validation of claims.

Section 735.550 - Pharmacy claims audits; reports of findings; opportunity to resubmit claim and to contest finding.

Section 735.552 - Pharmacy claims audits; exception for fraud.