2021 Oregon Revised Statutes
Chapter 744 - Insurance Producers; Life Settlement Providers, Brokers and Contracts; Adjusters; Consultants; Third Party Administrators; Reinsurance Intermediaries; Limited Licenses
Section 744.810 - Conditions under which reinsurance intermediary manager and reinsurer may enter into transactions.


(1) The reinsurer may terminate the contract for cause upon written notice to the reinsurance intermediary manager, and the reinsurer may immediately suspend the authority of the reinsurance intermediary manager to assume or cede business during the pendency of any dispute regarding the cause for termination.
(2) The reinsurance intermediary manager must render accounts to the reinsurer, accurately detailing all material transactions and including information necessary to support all commissions, charges and other fees received by or owing to the reinsurance intermediary manager and remit all funds due under the contract to the reinsurer on not less than a monthly basis.
(3) All funds collected for the account of the reinsurer must be held by the reinsurance intermediary manager in a fiduciary capacity in a qualified United States financial institution as that term is described in ORS 744.804. The reinsurance intermediary manager may retain not more than three months’ estimated claims payments and allocated loss adjustment expenses. The reinsurance intermediary manager must maintain a separate bank account for each reinsurer that it represents.
(4) A reinsurance intermediary manager must keep a complete record for each transaction of a contract of reinsurance as provided in this subsection. For each contract of reinsurance transacted by the reinsurance intermediary manager that is limited to first party property coverages, the reinsurance intermediary manager must keep the record for not less than five years after expiration of the contract of reinsurance. For all other contracts of reinsurance transacted by the reinsurance intermediary manager, the reinsurance intermediary manager must keep the record for not less than 10 years after expiration of each contract of reinsurance. The record must show all of the following:
(a) The type of contract, limits, underwriting restrictions, classes or risks and territory.
(b) The period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation, and disposition of outstanding reserves on covered risks.
(c) Reporting and settlement requirements of balances.
(d) The rate used to compute the reinsurance premium.
(e) Names and addresses of reinsurers.
(f) The rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary manager.
(g) Related correspondence and memoranda.
(h) Proof of placement.
(i) Specific information regarding retrocessions handled by the reinsurance intermediary manager, including the identity of retrocessionaires and percentage of each contract assumed or ceded.
(j) Financial records, including premium and loss accounts.
(k) The following written evidence, when the reinsurance intermediary manager places a reinsurance contract on behalf of a ceding insurer:
(A) When the contract is procured directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or
(B) When the contract is placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.
(5) The reinsurer must have access to and the right to copy all accounts and records maintained by the reinsurance intermediary manager that are related to its business. The reinsurance intermediary manager must maintain the accounts and records in a form usable by the reinsurer.
(6) The contract cannot be assigned in whole or in part by the reinsurance intermediary manager.
(7) The reinsurance intermediary manager must comply with the written underwriting and rating standards established by the insurer for the acceptance, rejection or cession of all risks.
(8) The contract must set forth the rates, terms and purposes of commissions, charges and other fees that the reinsurance intermediary manager may levy against the reinsurer.
(9) If the contract permits the reinsurance intermediary manager to settle claims on behalf of the reinsurer, all of the following provisions must apply:
(a) All claims must be reported to the reinsurer in a timely manner.
(b) A copy of the claim file must be sent to the reinsurer at its request or as soon as it becomes known that the claim:
(A) Has the potential of exceeding the lesser of an amount determined by the director or the limit set by the reinsurer;
(B) Involves a coverage dispute;
(C) May exceed the claims settlement authority of the reinsurance intermediary manager;
(D) Is open for more than six months; or
(E) Is closed by payment of the lesser of an amount set by the director or an amount set by the reinsurer.
(c) All claim files must be the joint property of the reinsurer and the reinsurance intermediary manager. However, upon an order of liquidation of the reinsurer, the files become the sole property of the reinsurer or its estate but the reinsurance intermediary manager shall have reasonable access to and the right to copy the files on a timely basis.
(d) Any settlement authority granted to the reinsurance intermediary manager may be terminated for cause upon written notice by the reinsurer to the reinsurance intermediary manager or upon the termination of the contract. The reinsurer may suspend the settlement authority during the pendency of the dispute regarding the cause of termination.
(10) If the contract provides for a sharing of interim profits by the reinsurance intermediary manager, the interim profits must not be paid until one year after the end of each underwriting period for property business and five years after the end of each underwriting period for casualty business, or a later period set by the director for specified lines of insurance, and not until the adequacy of loss reserves on remaining claims has been attested to by an actuary pursuant to ORS 744.814.
(11) The reinsurance intermediary manager must annually provide the reinsurer with a statement of its financial condition that is prepared by an independent certified public accountant.
(12) Periodically, but not less frequently than semiannually, the reinsurer shall conduct an on-site review of the underwriting and claims processing operations of the reinsurance intermediary manager.
(13) The reinsurance intermediary manager must disclose to the reinsurer any relationship it has with any insurer prior to ceding or assuming any business with such insurer pursuant to the contract.
(14) Within the scope of the actual or apparent authority of the reinsurance intermediary manager, the acts of the reinsurance intermediary manager are considered to be the acts of the reinsurer on whose behalf it is acting. [1993 c.447 §79; 2003 c.364 §32]

Structure 2021 Oregon Revised Statutes

2021 Oregon Revised Statutes

Volume : 18 - Financial Institutions, Insurance

Chapter 744 - Insurance Producers; Life Settlement Providers, Brokers and Contracts; Adjusters; Consultants; Third Party Administrators; Reinsurance Intermediaries; Limited Licenses

Section 744.052 - Definitions for ORS 744.052 to 744.089.

Section 744.056 - Exemptions from insurance producer licensing requirements.

Section 744.058 - Written examination; fees; rules.

Section 744.059 - Qualifications for license; use of uniform application.

Section 744.061 - Banking institution as insurance producer.

Section 744.062 - Issuance of insurance producer license; rules.

Section 744.063 - Nonresident insurance producer license; fee.

Section 744.064 - Persons licensed elsewhere.

Section 744.067 - Exemptions from prelicensing education or examination requirement.

Section 744.068 - Required notifications; maintenance of usual and customary records; rules.

Section 744.072 - Renewal or reinstatement of insurance producer license; continuing education; rules.

Section 744.073 - Temporary insurance producer license.

Section 744.074 - Authority of director to place licensee on probation or to suspend, revoke or refuse to issue or renew license.

Section 744.076 - Payment of commission, service fee or brokerage.

Section 744.077 - Conditions under which person licensed as insurance producer and consultant may accept commission or fee; rules.

Section 744.078 - Appointment of insurance producers; rules.

Section 744.079 - Termination of relationship with insurance producer.

Section 744.081 - Termination of appointment.

Section 744.083 - Trust account for premium funds; commingling; exceptions; rules.

Section 744.084 - Certificate of deposit in lieu of trust account; rules.

Section 744.088 - Training requirements to be licensed as insurance producer for long term care insurance.

Section 744.089 - Report of administrative action taken against insurance producer.

Section 744.091 - Additional conditions under which person licensed as insurer or insurance producer may charge commission or service fee; rules.

Section 744.093 - Solicitation or sale of insurance policy by retail insurance producer or wholesale insurance producer; rules.

Section 744.101 - Definitions.

Section 744.104 - Travel insurance through travel retailers; direction by limited travel insurance producers; requirements and restrictions; designated employees.

Section 744.107 - Violations; revocation of authorization.

Section 744.111 - Rules.

Section 744.300 - License and indorsement; managing general agent described.

Section 744.301 - Exemptions from license requirement.

Section 744.303 - Certificate of errors and omissions insurance; rules.

Section 744.306 - Contract between insurer and managing general agent.

Section 744.308 - Limitations on authority of insurer and managing general agent.

Section 744.313 - Financial examination; loss reserves; notification of appointment and termination; acts of managing general agent attributed to insurer.

Section 744.318 - Definitions for ORS 744.318 to 744.384.

Section 744.321 - Life settlement providers.

Section 744.323 - Life settlement brokers.

Section 744.326 - License application; fee.

Section 744.328 - Issuance of license.

Section 744.331 - Expiration of license; rules for renewal.

Section 744.333 - Individual acting as provider under license of firm or corporation.

Section 744.338 - Suspension, revocation, refusal to issue or renew license.

Section 744.341 - Terms of contract.

Section 744.343 - Annual report and statement by provider; restrictions on disclosure of information; rules.

Section 744.346 - Examination of business and practices of licensee or applicant; records.

Section 744.354 - Disclosure by life settlement provider, broker or investment agent to policy owner.

Section 744.362 - Disclosure by insurance company to policy owner; rules.

Section 744.364 - Life settlement contract requirements.

Section 744.367 - Limitations on ability to enter life settlement contract; exceptions.

Section 744.369 - Unlawful life settlement contract actions.

Section 744.372 - Advertising of life settlement contracts; rules.

Section 744.374 - Enforcement of life settlement contract provisions; reporting of violations; required antifraud initiatives.

Section 744.382 - Prohibitions on finder’s fee, solicitations, discrimination.

Section 744.384 - Rules; standards.

Section 744.502 - Definitions.

Section 744.515 - Exemptions from adjuster licensing requirement.

Section 744.518 - License application; business entity as applicant; fees.

Section 744.521 - Powers of director to issue, renew, amend, suspend and reinstate licenses; license expiration; fees.

Section 744.523 - Conditions for licensing, renewing license for or amending license of business entity.

Section 744.525 - Resident adjuster qualifications; rules.

Section 744.528 - Nonresident adjuster qualifications; rules.

Section 744.531 - Classes of insurance for adjusters.

Section 744.538 - Change of circumstance of nonresident adjuster.

Section 744.555 - Temporary adjuster permit; rules.

Section 744.578 - Licensee’s place of business.

Section 744.581 - Notices required; rules.

Section 744.584 - Prohibited conduct; penalties and disciplinary action; hearings.

Section 744.602 - Definitions.

Section 744.605 - Insurance consultant’s license required.

Section 744.609 - Exemptions.

Section 744.611 - License application; business entity as applicant; fees.

Section 744.614 - Powers of director to issue, renew, amend, suspend and reinstate licenses; license expiration; fees.

Section 744.617 - Conditions for licensing, renewing license for or amending license of business entity.

Section 744.619 - Qualifications for resident insurance consultant’s license; rules.

Section 744.621 - Qualifications for nonresident insurance consultant’s license; rules.

Section 744.626 - Classes of insurance for consultants.

Section 744.631 - Change of circumstance of nonresident insurance consultant.

Section 744.635 - Errors and omissions insurance; rules.

Section 744.638 - Licensee’s place of business.

Section 744.641 - Notices required; rules.

Section 744.644 - Prohibited conduct; penalties and disciplinary action; hearings.

Section 744.650 - Disclosure by insurance consultants; rules.

Section 744.700 - Definitions for ORS 744.700 to 744.740.

Section 744.702 - Third party administrator license; description of transacting business as third party administrator.

Section 744.704 - Exemptions from license requirement; rules.

Section 744.706 - Application for license.

Section 744.710 - Issuance or denial of license.

Section 744.712 - Expiration and renewal of license; rules for renewal.

Section 744.718 - Suspension, revocation or refusal of issuance or renewal of license.

Section 744.720 - Agreement between insurer and third party administrator.

Section 744.722 - Relationship of insurer and third party administrator regarding payments.

Section 744.724 - Books and records.

Section 744.726 - Errors and omissions insurance; rules.

Section 744.730 - Disposition of charges and premiums.

Section 744.732 - Contingent fee agreements.

Section 744.734 - Notice to insureds regarding third party administrator.

Section 744.738 - Annual report.

Section 744.740 - Responsibility of insurer using third party administrator.

Section 744.800 - Qualifications for reinsurance intermediary brokers and managers.

Section 744.802 - Exemptions from application of requirements for reinsurance intermediary brokers and managers.

Section 744.804 - Conditions under which reinsurance intermediary broker and insurer may enter into transactions.

Section 744.806 - Records required to be kept by reinsurance intermediary brokers.

Section 744.808 - Prohibition on use of unlicensed reinsurance intermediary broker; requirement that insurer obtain financial statement of reinsurance intermediary broker.

Section 744.810 - Conditions under which reinsurance intermediary manager and reinsurer may enter into transactions.

Section 744.812 - Prohibitions on actions of reinsurance intermediary managers.

Section 744.814 - Prohibition on use of unlicensed reinsurance intermediary manager; requirement that reinsurer obtain financial statement of reinsurance intermediary manager and opinion of actuary.

Section 744.816 - Director access to books, accounts and records.

Section 744.818 - Errors and omissions insurance for reinsurance intermediary manager; rules.

Section 744.850 - Definitions for ORS 744.850 to 744.858.

Section 744.852 - Limited license for rental companies; application; rules.

Section 744.854 - Kinds of insurance authorized by limited license.

Section 744.856 - Conditions for offer or sale of insurance; training; filing officer.

Section 744.858 - Revocation or suspension of limited license; other penalties; application of Insurance Code; rules.

Section 744.860 - Definitions for ORS 744.860 to 744.870.

Section 744.862 - Limited license to sell insurance; exemption; application; disclosures required; conditions on license.

Section 744.864 - Permissible sales; required notices and disclosures; evidence of coverage; prohibition on representing owner as insurer.

Section 744.866 - Training program; approval of training materials; certification of training; auditing.

Section 744.868 - License suspension and revocation or other penalty; rules.

Section 744.870 - Compensation, bonuses and incentives.

Section 744.991 - Criminal penalties; restitution.

Section 744.992 - Civil penalties; civil actions; rescission of life settlement contracts.

Section 744.994 - Effect of license expiration or surrender on director’s investigation or disciplinary proceedings.