Section 735.150 - Definitions for ORS 735.150 to 735.190 As used in ORS 735.150 to 735.190:
(1)(a) "Affiliate" means a business entity that, because of common ownership, common control, common operation or common management, is in the same corporate system as a parent or a member organization.(b) For purposes of this subsection, "common ownership, common control, common operation or common management" means that two or more business entities are owned, controlled, operated or managed by the same person or group of persons with:(A) Direct or indirect ownership of 80 percent or more of the outstanding voting stock of the stock corporation for a captive insurer that is a stock corporation;(B) Direct or indirect ownership of 80 percent or more of the surplus and the voting power of the mutual corporation for a captive insurer that is a mutual corporation; or(C) Direct or indirect ownership by the same member or members of 80 percent or more of the membership interests in the limited liability company for a captive insurer that is a limited liability company.(2) "Alien captive insurer" means an insurer: (a) Formed to transact insurance for a parent or affiliate of the insurer; and(b) Licensed under the laws of a nation other than the United States that imposes statutory or regulatory standards: (A) On a business entity transacting insurance in the other nation; and(B) In a form acceptable to the Director of the Department of Consumer and Business Services.(3) "Association" means a legal association of two or more persons that has been in continuous existence for at least one year if the association or its member organizations: (a) Own, control, or hold with power to vote, all of the outstanding voting securities of an association captive insurer incorporated as a stock insurer;(b) Have complete voting control over an association captive insurer incorporated as a mutual insurer; or(c) Have complete voting control over an association captive insurer formed as a limited liability company.(4) "Association captive insurer" means a business entity that insures the risks of: (a) A member organization of the association;(b) An affiliate of a member organization of the association; or(5) "Branch captive insurer" means an alien captive insurer that holds a certificate of authority from the Director of the Department of Consumer and Business Services to transact insurance in this state through a business division with a principal place of business in this state.(6) "Branch operation" means a business operation of a branch captive insurer in this state.(7) "Captive insurer" means any of the following that is formed or holds a certificate of authority issued under ORS 735.150 to 735.190: (a) A pure captive insurer;(b) A branch captive insurer;(c) An association captive insurer; or(8) "Captive reinsurer" means a reinsurer that is:(a) Formed or holds a certificate of authority under ORS 735.150 to 735.190;(b) Wholly owned by a qualifying reinsurer parent company; and(9) "Controlled unaffiliated business" means a business entity: (a) That is not in the same corporate system as a parent or the parent's affiliate but has a contractual relationship with a parent or affiliate; and(b) Whose risks are managed by a pure captive insurer in accordance with rules adopted by the Director of the Department of Consumer and Business Services under ORS 735.154.(10) "Foreign captive insurer" means an insurer:(a) Formed to transact insurance for a parent or affiliate of the insurer; and(b) Licensed under the laws of another state that imposes statutory or regulatory standards: (A) On a business entity transacting insurance in the other state or jurisdiction; and(B) In a form acceptable to the Director of the Department of Consumer and Business Services.(11) "Member organization" means a person that belongs to an association.(12) "Parent" means a person that directly or indirectly owns, controls, or holds with power to vote, more than 50 percent of:(a) The outstanding voting securities of a pure captive insurer; or(b) The pure captive insurer, if the pure captive insurer is formed as a limited liability company.(13) "Pure captive insurer" means a business entity that insures risks of a parent or affiliate of the business entity.(14)(a) "Qualifying reinsurer parent company" means an accredited reinsurer in this state that has:(A) A consolidated GAAP net worth of not less than $500 million; and(B) Complies with the consolidated debt to total capital ratio established by rule by the Director of the Department of Consumer and Business Services.(b) For purposes of this subsection "consolidated GAAP net worth" means the consolidated shareholders' equity determined in accordance with generally accepted accounting principles for reporting to the United States Securities and Exchange Commission.735.150 to 735.190 were added to and made a part of the Insurance Code by legislative action but were not added to ORS chapter 735 or any series therein. See Preface to Oregon Revised Statutes for further explanation.