Wrap-up instructions

Detailed filing instructions

We trust this information will clarify how we handle wrap-ups here in Oregon. A wrap – owner controlled insurance project (OCIP), contractor controlled insurance project (CCIP) – must be filed and approved. There is no specific application form to be completed. The filing must comply with the instructions provided and be submitted via email with each filing element attached as a separate Word or PDF document – NO ZIP FILES.

The filing must include the draft redlined Trust Agreement as a Word document, and all other supporting documentation in PDF format as noted below. The more complete the filing is, the more quickly we will be able to perform our review. Final approval could take as little as 30 days or as long several months, depending upon the nature of any questions we have, how quickly we receive the company's responses, and whether or not the Oregon Attorney General (AG) has to review the redlined Trust Agreement for legal sufficiency.

Following are the guidelines regarding the information to be included in a wrap-up filing that is subject to ORS 737.602. There may be follow-up questions or requests for additional information upon review of the specific filing documents received. All communication will be via email.

The subject line for any wrap-up email must be the official name of the project. The project name must include CCIP or OCIP at the end of the project name.

• A cover letter, proposal, or application letter providing:
• The official project name
• The project value
• Physical address of the project plus attachments for the following:
• Map of where the project is located (township, range, etc.)
• Drawing of the project showing location for all components of the project (e.g. office building, parking garage, manufacturing plant, etc.)
• Name of the general contractor(s)
• An explanation as to whether the wrap-up is owner controlled (OCIP) or contractor controlled (CCIP)
• An overview of the purpose of the filing
• A description of the project (e.g. building(s), size, occupancy, use, etc.)
• The coverage being provided (commercial general liability, workers' compensation, or both) and the applicable policy limits
• Demonstration of compliance with the requirements under ORS 737.602(4).
• Confirmation, either in the cover letter or in the email, as to whether the Oregon Workers' Compensation Division has been advised about the intent to do a wrap-up for the workers' compensation coverage.
• Details regarding the pricing of the program by line of insurance; including when applicable, the negotiated factors underlying a Large Risk Alternative Rating Option (LRARO) workers comp program.
• ·The project's safety manual will be provided as a PDF document via e-mail – any single PDF cannot exceed 3 MB in size.
• The project's claims manual will be provided as a PDF document via e-mail – any single PDF cannot exceed 3 MB in size.
• A list of Oregon approved policy forms to be used for the project by line of insurance. The forms list should identify whether the form is an Oregon approved bureau form (ISO, NCCI, other), an approved independent insurer form, or a manuscript form. Manuscript forms are not required to be filed for prior approval per  ORS 742.003 (1) (a); however, they must be provided in the wrap-up submission materials as separate PDF documents for review. Oregon Division of Financial Regulation (DFR) staff will confirm forms have been filed, reviewed, and approved.
• The redlined Trust Agreement in Word format, with the applicable information for each variable field,  shown in track changes mode, must be provided for the project. If the Commercial General Liability (CGL) and Workers Compensation (WC) will be provided by two different insurers not in the same group of companies, then each insurer will make their own wrap-up filing with their own red-lined Trust Agreement (TA). The name of the underwriting insurance company, project start date, insurance effective date, project value, and deposit fund amount must be included in the document.
• We have provided two different templates: one for a project whose deposit amount is up to $150,000 maximum; the other for a project whose deposit amount is greater than $150,000. When the deposit is more than $150,000 we will submit the TA to the Oregon AG for review and approval. Per ORS 737.602 (4) (i) the deposit is calculated by dividing the project value by 100 million and taking that figure times 25,000. For example: project valued at $750 million divided by 100 million = 7.5 X $25,000 = $187,500 deposit. Please round up to the nearest thousand, in this example it would be $188,000. If the insurer places more than what is required, please explain why in the proposal.
• Exhibit A should include a detailed description of the project itself, including the project location, type of construction, anticipated occupancy/use, project value, and anticipated project duration.
• Exhibit B must show the official project name including CCIP or OCIP. This is the same name that will be used for all  communication regarding the wrap-up.

Shortly after receipt and initial review of the wrap-up filing materials, DFR will issue a conditional approval letter. It will contain any remaining questions or concerns requiring clarification. This will allow the project to commence. The insurer should email a response to the wrap-up analyst for any concerns needing resolution. Final approval of the wrap-up will be provided once all concerns have been successfully addressed and the final Trust Agreement documents have been attested by the DCBS director/insurance commissioner, or DFR administrator.

The required wrap-up funds will need to be deposited by each insurer prior to the project breaking ground ($25,000 per $100 million of project value, rounded up). When the insurer is ready to deposit the funds, our insurance institutions staff will provide instructions for placing the appropriate securities with the custodian.

Once the wrap-up filing documents have been reviewed and any follow-up questions or revisions are addressed, the Trust Agreement may need to be reviewed for legal sufficiency by the Oregon AG's office. Any project with a deposit amount in excess of $150,000 requires AG review before we can finalize the Trust Agreement.

Once we have completed our review, the wrap-up analyst will request a final Trust Agreement document be created, signed, and dated by a corporate officer or other authorized representative of the insurance company. This final TA document will then be emailed to the wrap-up analyst in PDF format.

The director of DCBS/insurance commissioner, or the DFR administrator will electronically sign and date the Trust Agreement document. After it is electronically signed, we will email it and the final approval letter to the insurer (or the representative who made the wrap-up filing on their behalf). The insurer or representative will need to send a copy of the attested Trust Agreement to the custodian.

Once the project is underway, the insurer is required to provide certification annually (unless the project is of such size or complexity that DFR requests certification more often than annually) of compliance with ORS 737.602(1)(a). If changes are made to the project that affect the project value, they must be reported promptly to DFR. DFR will then request any additional wrap-up deposit be placed.

Please do not hesitate to contact Jan Vitus at 503-947-7278 if you require further assistance.