Proposed rules

​Rules affected: OAR 836-071-0101, 836-071-0113, 836-071-0118, 836-071-0120, 836-071-0127, 836-071-0130, 836-071-0135, 836-071-0140, 836-071-0145

Need for Rules:
Senate Bill 251 (2019) repealed the insurance adjuster and insurance consultant licensing provisions that were commingled in ORS Chapter 744, and separately re-enacted such statutory provisions. Rulemaking is necessary to implement such re-enacted provisions – which now mandate that the form and manner of application for adjuster and consultant licensing, and for issuance of a temporary adjuster permit, be specified by rule, and that the examinations that are acceptable for purpose of licensing be recognized by rule.

The proposed rulemaking will amend the current rules to specify the form and manner of making application for an adjuster or consultant license, or for a temporary adjuster permit, and recognize certain examinations as adequately testing applicant qualifications, competence and knowledge. The rulemaking will also make technical corrections to the rules, by substituting reference to the 2019 Session Laws for the statutory provisions that have been repealed and re-enacted in such Session Laws.

Filed: September 26, 2019

Public hearing: October 22, 2019, 1:30 p.m.

Last day for public comment: October 29, 2019, 5 p.m.

Documents

• Notice of proposed rulemaking

​Rules affected: OAR 836-027-0200

Need for Rules:
Oregon Revised Statute 731.574(6) requires DCBS to maintain NAIC accreditation, and uphold the laws and standards of the accreditation. Oregon Administrative Rule 836-027-0200 requires insurance companies to have any investment assets that are not in their direct possession to be held in a bank or trust company. The insurance company has to enter into an agreement with the bank or trust that will provide certain requirements of the banks and trust to protect the assets, which is the custodial agreement.

The existing rule provides for minimum standards in the custodial agreement that protect the assets for the insurance company. The rule also indemnifies the insurers for any loss of the insurers’ securities, allows for examinations of the records and sets parameters on the timing for indemnification. The rule requires contracts if the custodian accesses a clearing corporation through an agent and requires the custodian to notify DCBS of termination of the agreement within three days of the termination. The NAIC accreditation program states that department’s policies and procedures for the conduct of examinations should generally follow those set forth in the Financial Condition Examiners Handbook. This proposed rule language is in the Handbook and by adopting it, we will be strengthening our level of oversight and maintaining compliance with NAIC standards, while enhancing the financial protection of the Oregon Insurance industry.

Filed: September 25, 2019

Public hearing: October 22, 2019, 11:00 a.m.

Last day for public comment: October 29, 2019, 5 p.m.

Documents

• Notice of proposed rulemaking