Or. Admin. R. 410-141-5075

Current through Register Vol. 63, No. 6, June 1, 2024

Section 410-141-5075 - FINANCIAL SOLVENCY REGULATION: Disallowance of Certain Reinsurance Transactions

(1) The Authority shall disallow as an asset or as a credit against liabilities any reinsurance found by the Authority after a hearing thereon to have been arranged for the purpose principally of deception as to the ceding CCO's financial condition as of the date of any financial statement of the CCO. Without limiting the general purport of the foregoing provision, reinsurance of any substantial part of the CCO's outstanding risks placed within four months prior to the date of any such financial statement and canceled in fact within eight months after the date of such statement, or reinsurance under which the reinsurer bears no substantial insurance risk or substantial risk of net loss to itself, shall prima facie be deemed to have been arranged for the principal purpose of deception.

(2) The Authority shall disallow as an asset any deposit, funds or other assets of the CCO found by the Authority after a hearing thereon:

(a) Not to be the property of the CCO;

(b) Not freely subject to withdrawal or liquidation by the CCO at any time for the payment or discharge of claims or other obligations arising under its Member Contracts; or

(c) To result from arrangements made principally for the purpose of deception as to the CCO's financial condition as of the date of any financial statement of the CCO.

Or. Admin. R. 410-141-5075

DMAP 58-2019, adopt filed 12/18/2019, effective 1/1/2020

Statutory/Other Authority: ORS 413.042, 414.615, 414.625, 414.635 & 414.651

Statutes/Other Implemented: ORS 414.610 - 414.685