Laws and rules

Click on a proposed rule title below for details.

Amend: OAR 441-500-0020

This rule proposes to only increase the assessment cap on banks over $10.0 billion in asset size by $200,000, while leaving assessment rates on all other tiers unchanged. Under the Oregon Bank Act, the Director of the Department of Consumer and Business Services (DCBS or department) may assess financial institutions a fee under a schedule adopted by rule. ORS 706.530. The proposed increase of $200,000 in the assessment cap for banks with more than $10.0 billion will help to cover the costs of supervision and examination and reflects an adjustment in department’s revenues with the increase in the bank’s total assets as share of total assets for the remaining Oregon chartered banks.

The Agency requests public comment on whether other options should be considered for achieving the rule’s substantive goals while reducing negative economic impact of the rule on business.

Filed: December 8, 2017

Public hearing: January 22, 2018, 1:30 p.m.

Last day for public comment: January 29, 2018, 5 p.m.

Documents

Amend: OAR 441-049-1011

OAR 441-049-1011 is amended to provide a definition of a federal crowdfunded offering consistent with the JOBS Act and 17 CFR § 227 (Regulation Crowdfunding).

The federal JOBS Act (2012) required the adoption of rules for federal crowdfunded securities. Federal crowdfunding offerings are “covered securities” under 18(b)(4) of the Securities Act of 1933, which preempts state registration. However, states may require notice of federal crowdfunded securities when the business issuing the security has their principal place of business in the state or when a state’s residents purchase 50% or more of the available securities. The federal rules became effective on May 16, 2016. In September 2016, the North American Securities Administrator’s Association (NASAA), of which Oregon is a member, adopted a model rule for notice filings of federal crowdfunding offers. Oregon’s Securities Law currently cites to covered securities under section 18(b)(4) but there are no procedures outlined for accepting notice of federal crowdfunded securities. The proposed rules would adopt a version of the NASAA model rule to provide procedures for filing notice of federal crowdfunded securities.

The Agency requests public comment on whether other options should be considered for achieving the rule’s substantive goals while reducing negative economic impact of the rule on business.

Filed: November 29, 2017

Public hearing: January 9, 2018, 2:00 p.m.

Last day for public comment: January 16, 2018, 5 p.m.

Documents

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Amend: OAR 836-031-0605

Is amended to specify the edition of the NAIC Valuation Manual insurers must use when establishing principle-based reserves beginning January 1, 2018

Oregon laws allow insurers to use actual experience of policyholders rather than a formulaic table when calculating statutory claims reserves via principle-based reserving. The proposed rules designate the version of the NAIC Valuation Manual insurers must use in establishing principle-based reserves for life insurance and in establishing reserves using other reserving methods for health insurance.

Filed: October 30, 2017

Public hearing: November 29, 2017, 10:00 a.m

Last day for public comment: December 6, 2017, 5:00 p.m.

Documents

Amend: OAR 441-035-0070

Is amended to make small changes to the policy statement for the rules to better distinguish investment crowdfunding from other capital raising tools.

In January of 2015, the division adopted rules allowing Oregon small businesses to raise modest amounts of capital from investors within Oregon without having to register their securities, generally referred to as crowdfunding. Businesses can take advantage of the exemption from registration if the offering is conducted entirely within the borders of the state and adheres to specific advertising restrictions based on the Securities and Exchange Commission’s (SEC) Rule 147. On April 20, 2017, a new rule, Rule 147A, became effective. Rule 147A allows issuers to advertise offerings to residents of the state in which the issuer has its primary place of business, even if that advertisement reaches residents in other states. Incidental advertising is permitted so long as sales are restricted to in-state residents only and particular disclosures are contained in the advertisement. Rule 147A made a number of changes to modernize the rules governing intrastate offerings. These proposed rules will more closely align Oregon’s interstate offering rules with the new federal requirements. The proposed rules also capture changes meant to allow small businesses more leeway to raise capital from permitted investors without lessening investor protections contained in the rules.

Filed: October 27, 2017

Public hearing: December 4, 2017, 10:00 a.m

Last day for public comment: December 11, 2017, 5:00 p.m.

Documents

Adopt: OAR 836-053-1403

Defining coordinated care and case management for behavioral health care services.

Although existing law requires health carriers to cover services in emergency settings and to adhere to mental health parity requirements, certain patients were not receiving behavioral health assessments as part of care during a behavioral health crisis and were not adequately transitioning from an acute care setting to community-based care. House Bill 3091, passed during the 2017 legislative session, provides clarity regarding the services to be provided during these events and requires the Department of Consumer and Business Services to adopt rules defining coordinated care and case management to ensure patients with coverage through coordinated care organizations or the commercial health insurance market are properly assessed and receive the support necessary for transition to community-based care.

Filed: October 30, 2017

Public hearing: November 27, 2017, 10:00 a.m

Last day for public comment: December 4, 2017, 5:00 p.m.

► Public comments recieved (newer on top)

Documents

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Amend: OAR 836-011-0000

Is amended to specify the annual statement blank versions to be used for submission of 2017 annual statement and 2018 quarterly statement reporting years.

The addition of quarterly statement blank language is in response to issues that arose out of a recent regulatory experience with an insurer. Inclusion of quarterly statement blank requirements in administrative rule will provide the department with necessary support for future regulatory action. Updating the version of the statement blanks for the annual and quarterly statements is to ensure correct submission of this data.

The NAIC Model 205 Annual Financial Reporting Model Regulation was amended in 2014 to incorporate an internal audit function for large insurers into the regulation. The revisions require individual insurers writing more than $500 million or insurance groups writing more than $1 billion in annual premium to maintain an internal audit function providing independent, objective and reasonable assurance to the audit committee and insurer management regarding the insurer’s governance, risk management and internal controls. The division did not take action to adopt the revisions to these rules to align with the NAIC model until now. The additional oversight for insurers of this size provides another level of protection for consumers.

AIC Model 312 The Risk-Based Capital for Insurers Model Act was revised in 2011 to increase the life risk-based capital (RBC) trend test trigger point from 2.5 to 3.0. This enhancement to consumer protections increases the confidence that the insurer has adequate resources to maintain solvency by requiring additional capital. The department did not take action to adopt the revisions to these rules to align with the NAIC model until now.

Filed: October 23, 2017

Public hearing: November 29, 2017, 10:00 a.m

Last day for public comment: December 6, 2017, 5:00 p.m.

Documents

Adopt: OAR 836-053-0418

Clarifies the definition of “insurer” found within 2017 Or Laws, ch. 719, § 2 (Enrolled House Bill 3276) to confirm this law’s applicability to health care service contractors and multiple employer welfare arrangements authorized to transact insurance or offer health benefits in the state of Oregon.

2017 Or Laws, ch 719 prohibits insurers from restricting coverage in the following manner when the Public Health Director has determined there is a disease outbreak, epidemic or other condition of public health importance:

  • Requiring services be administered by an in-network provider;
  • Imposing cost-sharing requirements that are greater than cost-sharing requirements for similar covered services;
  • Requiring prior authorization or other utilization control measures; or
  • Limiting coverage in any manner that prevents an enrollee from accessing necessary health services.

Most health insurers in Oregon are licensed as health care service contractors. The new law establishes the above requirements for insurers and defines “insurer” as a person with a certificate of authority to transact insurance in this state. The department received a recommendation from the Department of Justice to clarify in rule that the provisions of the law applicable to insurers also apply to entities licensed as health care service contractors or multiple employer welfare arrangements.

Filed: October 20, 2017

Public hearing: November 27, 2017, 1:30 p.m.

Last day for public comment: December 4, 2017, 5:00 p.m.

Documents

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Amend: OAR 836-200-0401

Is amended to make technical changes, and to clarify the department’s authority to regulate and enforce PBM provisions under the Insurance Code.

In a budget note to Senate Bill 5701 (2016), the Oregon Legislative Assembly directed the department to convene a public workgroup to develop recommendations to improve the PBM regulatory framework. The department convened such a workgroup and developed statutory and rulemaking recommendations. The rulemaking recommendations reported to the legislature included (1) removing the current registration and renewal fee caps, to allow recoupment of administration and enforcement costs, and (2) clarifying registration and appeals processes and terminology associated with maximum allowable cost pricing.

House Bill 2388 (2017) modified and supplemented the PBM statutory framework to grant the department authority to suspend, revoke or deny the registration of applicants or registrants, to set registration and renewal fees based upon the department’s reasonable costs and to prescribe a procedure by which a pharmacy or an entity acting on behalf of a pharmacy may file a complaint against a PBM.

This rulemaking is necessary to implement the Senate Bill 5701 budget note recommendations and the provisions of House Bill 2388, and as an aid to the effectuation of the Insurance Code.

Filed: October 23, 2017

Public hearing: November 28, 2017, 10:00 a.m.

Last day for public comment: December 5, 2017, 5:00 p.m.

► Public comments received

Documents

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Where to send comments on proposed rules

Division of Financial Regulation
ins.rules@oregon.gov

Rulemaking advisory committees

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Key links

Oregon Revised Statutes​​​​​​