Chapter 744 — Insurance
Producers; Life Settlement Providers, Brokers and Contracts; Adjusters;
Consultants; Third Party Administrators; Reinsurance Intermediaries; Rental
Company Limited Licenses
2011 EDITION
LICENSEES AND ADMINISTRATORS
INSURANCE
GENERAL PROVISIONS
744.001 License
application; fees
744.002 License
categories
744.003 Amendment
to license
744.004 Firm
or corporation license
744.007 Time
of expiration of license; renewal fee; rules
744.008 Renewal
of license; fee; rules
744.009 Renewal
of expired license; fee
744.011 Director’s
authority to investigate licensee; qualification for license by person who
voluntarily surrendered license
744.013 Disciplinary
actions against applicant, adjuster or insurance consultant
744.014 Condition
of probation on license or on category or class of insurance; disciplinary
action during probationary period
744.018 Reinstatement
of license; modification of suspension
744.022 Authorized
activities
744.024 Places
of business for resident adjuster or insurance consultant; records
744.026 Place
of business for nonresident adjuster or insurance consultant; records
744.028 Notice
of change of address or telephone number
744.031 Notice
of personnel changes from firm or corporate adjuster or insurance consultant to
director; rules
744.033 Manner
of application or notification
744.037 Fees;
refunds; rules
INSURANCE PRODUCERS
744.052 Definitions
744.053 Requirements
to be licensed as insurance producer for class of insurance
744.056 Exemptions
from insurance producer licensing requirements
744.058 Written
examination; fees; rules
744.059 Qualifications
for license; use of uniform application
744.061 Banking
institution as insurance producer
744.062 Issuance
of insurance producer license; rules
744.063 Nonresident
insurance producer license; fee
744.064 Persons
licensed elsewhere
744.067 Exemptions
from prelicensing education or examination
requirement
744.068 Required
notifications; maintenance of usual and customary records; rules
744.072 Renewal
or reinstatement of insurance producer license; continuing education; rules
744.073 Temporary
insurance producer license
744.074 Authority
of director to place licensee on probation or to suspend, revoke or refuse to
issue or renew license
744.076 Payment
of commission, service fee or brokerage
744.077 Conditions
under which person licensed as insurance producer and consultant may accept
commission or fee; rules
744.078 Appointment
of insurance producers; rules
744.079 Termination
of relationship with insurance producer
744.081 Termination
of appointment
744.082 Waiver
of requirement for nonresident insurance producer license applicant
744.083 Trust
account for premium funds; commingling; exceptions; rules
744.084 Certificate
of deposit in lieu of trust account; rules
744.086 Applicability
of Insurance Code to insurance producers transacting title insurance
744.087 Filing
insurance producers compensation agreements; filing not public record
744.088 Training
requirements to be licensed as insurance producer for long term care insurance
744.089 Report
of administrative action taken against insurance producer
744.091 Additional
conditions under which person licensed as insurer or insurance producer may
charge commission or service fee; rules
744.093 Solicitation
or sale of insurance policy by retail insurance producer or wholesale insurance
producer; rules
MANAGING GENERAL AGENTS
744.300 License
and indorsement; managing general agent described
744.301 Exemptions
from license requirement
744.303 Certificate
of errors and omissions insurance; rules
744.306 Contract
between insurer and managing general agent
744.308 Limitations
on authority of insurer and managing general agent
744.311 Books,
bank accounts and records
744.313 Financial
examination; loss reserves; notification of appointment and termination; acts
of managing general agent attributed to insurer
744.314 Rules
744.316 Authority
of director if managing general agent violates provisions of ORS 744.300 to
744.316
LIFE SETTLEMENT CONTRACTS
744.318 Definitions
744.321 Life
settlement providers
744.323 Life
settlement brokers
744.324 Life
settlement investment agents
744.326 License
application; fee
744.328 Issuance
of license
744.331 Expiration
of license; rules for renewal
744.333 Individual
acting as provider under license of firm or corporation
744.336 Notification
by licensee of material change affecting qualification for license
744.338 Suspension,
revocation, refusal to issue or renew license
744.341 Terms
of contract
744.343 Annual
report and statement by provider; restrictions on disclosure of information;
rules
744.346 Examination
of business and practices of licensee or applicant; records
744.354 Disclosure
by life settlement provider, broker or investment agent to policy owner
744.359 Disclosure
by life settlement broker or provider to insurer
744.362 Disclosure
by insurance company to policy owner; rules
744.364 Life
settlement contract requirements
744.367 Limitations
on ability to enter life settlement contract; exceptions
744.369 Unlawful
life settlement contract actions
744.372 Advertising
of life settlement contracts; rules
744.374 Enforcement
of life settlement contract provisions; reporting of violations; required
antifraud initiatives
744.382 Prohibitions
on finder’s fee, solicitations, discrimination
744.384 Rules;
standards
ADJUSTERS
744.505 Adjuster
license required
744.515 Exemptions
from adjuster licensing requirement
744.525 Adjuster
qualifications
744.528 Nonresident
adjuster license
744.531 Classes
of insurance for adjusters
744.535 Adjuster
licensing examination
744.538 Change
of circumstance of nonresident adjuster
744.541 Adjustment
of claim under policy issued by unauthorized insurer
744.555 Temporary
adjuster permit
744.575 Adjusting
claims involving credit life or credit health insurance
INSURANCE CONSULTANTS
744.605 Insurance
consultant’s license required
744.609 Exemptions
744.619 Qualifications
for resident insurance consultant’s license; rules
744.621 Nonresident
insurance consultant license
744.626 Classes
of insurance for consultants
744.631 Change
of circumstance of nonresident insurance consultant
744.635 Errors
and omissions insurance; rules
744.650 Disclosure
by insurance consultants; rules
744.655 Rebates
prohibited
744.665 Continuing
education; rules
THIRD PARTY ADMINISTRATORS
744.700 Definitions
for ORS 744.700 to 744.740
744.702 Third
party administrator license; description of transacting business as third party
administrator
744.704 Exemptions
from license requirement; rules
744.706 Application
for license
744.708 Waiver
of information requirement
744.710 Issuance
or denial of license
744.712 Expiration
and renewal of license; rules for renewal
744.714 Registration
of persons exempt from licensure
744.716 Notification
of change in ownership or control
744.718 Suspension,
revocation or refusal of issuance or renewal of license
744.720 Agreement
between insurer and third party administrator
744.722 Relationship
of insurer and third party administrator regarding payments
744.724 Books
and records
744.726 Errors
and omissions insurance; rules
744.728 Advertising
744.730 Disposition
of charges and premiums
744.732 Contingent
fee agreements
744.734 Notice
to insureds regarding third party administrator
744.736 Delivery
from insurer to insured
744.738 Annual
report
744.740 Responsibility
of insurer using third party administrator
REINSURANCE INTERMEDIARIES
744.800 Qualifications
for reinsurance intermediary brokers and managers
744.802 Exemptions
from application of requirements for reinsurance intermediary brokers and
managers
744.804 Conditions
under which reinsurance intermediary broker and insurer may enter into
transactions
744.806 Records
required to be kept by reinsurance intermediary brokers
744.808 Prohibition
on use of unlicensed reinsurance intermediary broker; requirement that insurer
obtain financial statement of reinsurance intermediary broker
744.810 Conditions
under which reinsurance intermediary manager and reinsurer may enter into
transactions
744.812 Prohibitions
on actions of reinsurance intermediary managers
744.814 Prohibition
on use of unlicensed reinsurance intermediary manager; requirement that
reinsurer obtain financial statement of reinsurance intermediary manager and
opinion of actuary
744.816 Director
access to books, accounts and records
744.818 Errors
and omissions insurance for reinsurance intermediary manager; rules
744.820 Director
authority if reinsurance intermediary broker or manager violates provisions of
ORS 744.800 to 744.818
VEHICLE RENTAL COMPANIES
744.850 Definitions
for ORS 744.850 to 744.858
744.852 Limited
license for rental companies; application; rules
744.854 Kinds
of insurance authorized by limited license
744.856 Conditions
for issuance of insurance; training; filing officer
744.858 Revocation
or suspension of limited license; other penalties; application of Insurance
Code; rules
PENALTIES
744.991 Criminal
penalties; restitution
744.992 Civil
penalties; civil actions; rescission of life settlement contracts
GENERAL PROVISIONS
744.001 License application; fees.
(1) ORS 744.001 to 744.009, 744.011, 744.013, 744.014, 744.018, 744.022 to
744.033 and 744.037 govern the licensing of adjusters and insurance
consultants.
(2)
An applicant for a license as an adjuster or an insurance consultant shall
apply for the license to the Director of the Department of Consumer and
Business Services. The applicant shall include the following information:
(a)
The applicant’s name, business address, residence address, present occupation,
occupation for the last 12 months, the portion of time to be devoted to the
insurance business, previous insurance experience and the names of employers
during the preceding five years. The applicant shall include the business
address of the principal place of business and the business address of each
additional location at which the applicant will transact business under the
license.
(b)
All assumed business names and other names under which the applicant will
engage in business under the license.
(c)
Whether the applicant has ever been convicted of or is under indictment for a
crime, whether the applicant has ever had a judgment entered against the
applicant for fraud, whether any insurer or insurance producer claims the
applicant is indebted to it and the details of any such indebtedness, and
whether any license of the applicant to act in any occupational or professional
capacity has ever been refused, revoked or suspended in this or any other
state.
(d)
The applicant’s fingerprints, if the applicant is applying for a resident
license. An applicant applying for a nonresident license shall provide the
applicant’s fingerprints only if the director so requests.
(e)
The class or classes of insurance to be transacted under the license.
(f)
Any other information that the director requires by rule.
(3)
If the applicant for a license under this section is a firm or corporation, the
application shall show, in addition, the names of all members, officers and
directors. If the applicant is a corporation, the application shall state the
names of all stockholders who own, directly or indirectly, more than 10 percent
of any class of any equity security of the corporation, and shall designate
each individual who is to exercise the powers to be conferred by the license
upon the firm or corporation.
(4)
Each application shall be accompanied by the applicable fees established by the
director. [1989 c.701 §§13,81g; 2001 c.191 §26; 2003 c.364 §117; 2007 c.71 §241]
744.002 License categories.
(1) The Director of the Department of Consumer and Business Services may issue
a license authorizing a person to act as an adjuster or an insurance
consultant. A person licensed to act in one capacity may also be licensed to
act in the other capacity if the person meets the appropriate qualifications.
For purposes of this chapter, the capacity in which a person is licensed to act
constitutes a “license category” or a “category of insurance business.”
(2)
A license issued under this section shall set forth each license category in
which the licensee may engage. For each license category, the license shall
also set forth the class or classes of insurance in which the licensee may
engage, as provided in:
(a)
ORS 744.531, for the license category of adjuster.
(b)
ORS 744.626, for the license category of insurance consultant.
(3)
The director may issue resident and nonresident licenses under this section as
follows:
(a)
The director may issue a resident license to a person if the person is a
resident of this state or, if not a resident of this state, the person has a
place of transacting insurance in this state.
(b)
The director may issue a nonresident license to a person if the person is not a
resident of this state.
(4)
The director shall issue a license under this section:
(a)
If the applicant has completed and submitted to the director an application for
the license and has submitted all applicable fees, including any examination
fees, as established by the director with the application;
(b)
If the director determines that no ground for denial of the license exists
under ORS 744.013; and
(c)
If the director determines that the applicant has met the applicable
qualifications and requirements for each license category, and for each class
of insurance for which application is made. [1989 c.701 §§2,81e; 1995 c.639 §3;
2001 c.191 §27]
744.003 Amendment to license.
(1) The Director of the Department of Consumer and Business Services may add a
category of insurance business to an adjuster or insurance consultant license
upon application by the licensee for amendment of the license.
(2)
The director may add a class or classes of insurance to a license upon
application by the licensee for amendment of the license.
(3)
The director may require that applications under this section be made in the
same manner as applications for the initial license, or the director may
establish other application procedures. [1989 c.701 §3; 2001 c.191 §28]
744.004 Firm or corporation license.
(1) The Director of the Department of Consumer and Business Services may issue
or amend a firm or corporation license under ORS 744.002 only if the firm or
corporation, for each category of insurance business that the firm or
corporation applies for on its license, employs an individual whose license
under ORS 744.002 authorizes the individual to engage in that category of
insurance business.
(2)
When a firm or corporation applies for a license or applies to amend the
license, the director may issue or amend the license only if the firm or
corporation, for each class of insurance that the firm applies to transact,
employs an individual whose license under ORS 744.002 authorizes the individual
to transact that class of insurance. [1989 c.701 §4]
744.005 [1967
c.359 §525; repealed by 1989 c.701 §81]
744.007 Time of expiration of license;
renewal fee; rules. (1) A license issued under ORS
744.002 expires on its expiration date unless it is renewed on or before its
expiration date.
(2)
A license expires on the last day of the month in which the first anniversary
of the initial issuance date of the license occurs, unless the Director of the
Department of Consumer and Business Services designates another date.
Thereafter, the license shall expire on the second anniversary following each
renewal.
(3)
When a category of insurance business is added to a license, the expiration
date for the license shall be the last day of the month in which the second
anniversary of the issuance date of the amended license occurs, unless the director
establishes another expiration date.
(4)
The fee for renewal of a license shall be the fee established by the director,
which shall include the fee established for each category of insurance business
on the license.
(5)
The director by rule may establish procedures for renewal of licenses.
(6)
A suspended license is subject to renewal and to all requirements applicable to
renewal if the license expires during the suspension period. [1989 c.701 §§5,81f]
744.008 Renewal of license; fee; rules.
An adjuster or insurance consultant may renew a license subject to the
following requirements:
(1)
The licensee must pay the applicable fee established by the Director of the
Department of Consumer and Business Services.
(2)
The licensee must satisfy all applicable continuing education requirements and
all other applicable conditions and requirements specified by statute.
(3)
If the licensee holds a nonresident license, the licensee must submit proof to
the director, with respect to each category of insurance business and class of
insurance set forth on the license, that the licensee continues to hold a valid
license or other evidence of authority issued by the state of residence of the
licensee for the same category of insurance business.
(4)
If the licensee is an insurance consultant, the licensee must provide
satisfactory evidence that the insurance required under ORS 744.635 is in
effect.
(5)
The licensee must satisfy any other requirements established by the director by
rule. [1989 c.701 §§14,81h; 1991 c.810 §2; 2001 c.191 §29]
744.009 Renewal of expired license; fee.
(1) The Director of the Department of Consumer and Business Services may renew
an expired license of an adjuster or insurance consultant upon application if
the license expired within two years prior to the application and if:
(a)
The license was not suspended or revoked by the director, or not renewed, on
any ground under ORS 744.013;
(b)
The director is satisfied, by examination or otherwise, that the person is
knowledgeable about the portions of the Insurance Code applicable to the
license;
(c)
The person pays double the amount of the regular renewal fee; and
(d)
The person satisfies all requirements for renewal.
(2)
A person who does not renew an expired license as provided in this section may
obtain a license only if the person applies and qualifies for and is issued the
license in the same manner as a person who initially applies for the license. [1989
c.701 §6; 2001 c.191 §30]
744.010
[Repealed by 1967 c.359 §704]
744.011 Director’s authority to
investigate licensee; qualification for license by person who voluntarily
surrendered license. (1) The expiration of a license
or the voluntary surrender of a license by a licensee under this chapter shall
not deprive the Director of the Department of Consumer and Business Services of
jurisdiction to proceed with any investigation of, or any action or
disciplinary proceedings against, the licensee or to revise or render void an
order suspending or revoking the license.
(2)
As provided in this subsection, a person who has voluntarily surrendered a
license may qualify for a license conferring the same authority as the
surrendered license without having to take an examination that is otherwise
required. In order to qualify without examination, the person must apply for
the license within two years after the date on which the person surrendered the
prior license. The person must apply and otherwise qualify for the license in
the same manner as a person who initially applies for the license. If the
person is required to satisfy continuing education requirements for renewal of
the license, the person must show satisfaction of continuing education
requirements for each renewal date occurring during the period following the
surrender in which the person did not hold a license. [1989 c.701 §11; 1991
c.810 §3; 2001 c.191 §42]
744.012 [1979
c.501 §1; 1989 c.701 §41; renumbered 744.240 in 1989]
744.013 Disciplinary actions against
applicant, adjuster or insurance consultant. (1) If
the Director of the Department of Consumer and Business Services finds with
respect to an adjuster or insurance consultant or an applicant for an adjuster
or insurance consultant license that one or more of the grounds set forth in
subsection (2) of this section exist, the director may take the following
disciplinary actions:
(a)
The director may refuse to renew or may suspend or revoke a license issued
under ORS 744.002 or the authority under a license to engage in any category of
insurance business or any class of insurance.
(b)
The director may refuse to issue a license under ORS 744.002 or refuse to grant
authority under a license to engage in any category of insurance business or
any class of insurance.
(2)
The director may take any disciplinary action under subsection (1) of this
section on one or more of the following grounds:
(a)
Incompetence or untrustworthiness of the applicant or adjuster or insurance
consultant.
(b)
Falsification by the applicant or adjuster or insurance consultant of the
application for the license or an amendment thereto, or engagement in any
dishonest act in relation to the application or examination therefor.
(c)
Violation of or noncompliance with any applicable provision of the Insurance
Code or any rule or order of the director.
(d)
Misappropriation or conversion to the adjuster’s or insurance consultant’s own
use, or illegal withholding, of money or property belonging to policyholders,
insurers, beneficiaries or others, and received by the adjuster or insurance
consultant in the conduct of business under the license.
(e)
Conviction in any jurisdiction, of an offense which if committed in this state,
constitutes a felony, a misdemeanor involving dishonesty or breach of trust, or
an offense punishable by death or imprisonment under the laws of the United
States. The record of the conviction shall be conclusive evidence of the
conviction.
(f)
Material misrepresentation of the terms of any insurance policy or proposed
insurance policy.
(g)
Use of a fraudulent or dishonest practice by the adjuster or insurance
consultant in the conduct of business under the license, or demonstration
therein that the adjuster or insurance consultant is incompetent, untrustworthy
or a source of injury and loss to the public or others.
(h)
Error by the director in issuing or renewing a license.
(i) Failure to pay a civil penalty assessed by the director
that has become final by operation of law or upon appeal.
(j)
Failure to pay any fee or charge to the director.
(k)
Use of the license principally to effect insurance on property or against
liability of the applicant or adjuster or insurance consultant, or to evade the
provisions of ORS chapter 746.
(L)
Cancellation, revocation, suspension or refusal to renew by any state of a
license or other evidence of authority to act as an insurance producer,
adjuster or insurance consultant. The record of the cancellation, revocation,
suspension or refusal to renew shall be conclusive evidence of the action
taken.
(m)
Cancellation, revocation, suspension or refusal to renew by any state or
federal agency of the authority to practice law or to practice under any other
regulatory authority if the cancellation, revocation, suspension or refusal to
renew was related to the business of an insurance producer, adjuster or insurance
consultant or if dishonesty, fraud or deception was involved. The record of the
cancellation, revocation, suspension or refusal to renew shall be conclusive
evidence of the action taken.
(n)
Failure to comply with continuing education requirements applicable to the
license or any category of insurance authorized under the license, unless the
director has waived the requirements.
(o)
Dishonesty, fraud or misrepresentation not related to the business of an
insurance producer, adjuster or insurance consultant.
(3)
The director may refuse to issue or renew or may revoke or suspend the license
of a firm or corporation or may take any such action with respect to any
authority applied for by or granted to the firm or corporation to engage under
the license in any category of insurance business or class of insurance if the
director finds that any ground set forth in subsection (2) of this section
exists:
(a)
With respect to any individual adjuster or insurance consultant employed by or
under contract with the firm or corporation.
(b)
With respect to a director or officer of the firm or corporation.
(c)
With respect to any person who directly or indirectly has the power to direct
or cause to be directed the management, control or activities of the adjuster
or insurance consultant. [Formerly 744.255; 1991 c.810 §4; 1993 c.447 §84; 2001
c.191 §31; 2003 c.364 §118; 2003 c.576 §258]
744.014 Condition of probation on license
or on category or class of insurance; disciplinary action during probationary
period. (1) The Director of the Department of
Consumer and Business Services may place a condition of probation on an
adjuster or insurance consultant license or on a category of insurance business
authorized by a license or on a class of insurance if any ground for
disciplinary action under ORS 744.013 exists, as follows:
(a)
When the license is initially issued.
(b)
When the license is renewed, amended or reinstated, or when a new license is
issued for the purpose of adding a category of insurance business or class of
insurance.
(c)
At any time during the effective period of the license.
(2)
During a probationary period under this section, the director may take any
action authorized under ORS 744.013.
(3)
A license applicant or licensee has the same right to a hearing on the placing
of a condition of probation as the license applicant or licensee has with
respect to any action taken by the director under ORS 744.013. [Formerly
744.260; 2001 c.191 §32]
744.015 [1967
c.359 §526; 1989 c.701 §22; renumbered 744.054 in 1989]
744.016
[Formerly 744.265; repealed by 2001 c.191 §61]
744.017 [1971
c.231 §8; 1989 c.701 §42; renumbered 744.245 in 1989]
744.018 Reinstatement of license; modification
of suspension. With regard to any license issued under
this chapter:
(1)
The Director of the Department of Consumer and Business Services may reinstate
a revoked license, any revoked category of insurance business or any revoked
class of insurance. The director may grant reinstatement upon fulfillment by
the former holder of the license of conditions set by the director.
(2)
The director may modify the suspension of a license, a category of insurance
business or a class of insurance and reinstate the license, category or class:
(a)
At a time certain; or
(b)
When the person subject to the suspension fulfills conditions set by the
director for reinstatement. [1989 c.701 §12; 2001 c.191 §43]
744.020
[Repealed by 1967 c.359 §704]
744.022 Authorized activities.
(1) A firm or corporate adjuster or insurance consultant may engage in a
category of insurance business or a class of insurance authorized on its
license only through an individual adjuster or insurance consultant who is
authorized to engage in insurance business in that same category or class.
(2)
An individual adjuster or insurance consultant who is employed by or under
contract with a firm or corporate adjuster or insurance consultant may engage
in insurance business only to the extent authorized by the license of the
individual. [1989 c.701 §15; 2001 c.191 §33]
744.024 Places of business for resident
adjuster or insurance consultant; records. (1)
Each resident adjuster or insurance consultant shall maintain in this state a
place of business in which the licensee principally engages in insurance
business under the license.
(2)
The principal place of business under subsection (1) of this section of an
adjuster or insurance consultant must be accessible to the public.
(3)
An adjuster or insurance consultant shall keep at the place of business of the
adjuster or insurance consultant the usual and customary records pertaining to
the business under the license. All such records as to any particular
transactions shall be kept available and open to the inspection of the Director
of the Department of Consumer and Business Services during business hours. An
adjuster or insurance consultant shall keep records of a particular transaction
by the adjuster or insurance consultant for three years following the
conclusion of the transaction.
(4)
This section does not prohibit maintenance of a place of business under a
license in the licensee’s place of residence in this state. [1989 c.701 §16;
2001 c.191 §34]
744.025 [1967
c.359 §527; 1971 c.385 §6; 1979 c.501 §3; 1979 c.829 §9a; 1981 c.247 §18; 1983
c.464 §1; 1985 c.762 §188; 1989 c.701 §23; renumbered 744.057 in 1989]
744.026 Place of business for nonresident
adjuster or insurance consultant; records. (1) A
nonresident adjuster or insurance consultant shall keep at the principal place
of business of the licensee the usual and customary records pertaining to the
business under the nonresident license. All such records as to any particular
transaction shall be kept available and open to the inspection of the Director
of the Department of Consumer and Business Services during business hours. For
the purpose of this subsection, if a nonresident licensee has a place of
transacting insurance in this state, that place shall be the principal place of
business for the licensee.
(2)
A nonresident adjuster or insurance consultant shall keep records of a
particular transaction by the nonresident adjuster or insurance consultant for
three years following conclusion of the transaction. [1989 c.701 §17; 1995
c.639 §4; 2001 c.191 §35]
744.028 Notice of change of address or
telephone number. (1) Not later than the 30th day
after an adjuster or insurance consultant changes the address or telephone
number of the principal place of business or the residence of the adjuster or
insurance consultant, or any other location at which the licensee transacts
business under the license, the licensee shall notify the Director of the
Department of Consumer and Business Services of the change. The licensee also
shall so notify the director not later than the 30th day after the licensee
opens or closes a location at which the licensee transacts business under the
license.
(2)
Not later than the 30th day after a change in or deletion or addition of an
assumed business name under which a licensee transacts business under a license
as an adjuster or insurance consultant, the licensee shall notify the director
of the change. [1989 c.701 §18; 2001 c.191 §36]
744.030
[Amended by 1965 c.610 §12; repealed by 1967 c.359 §704]
744.031 Notice of personnel changes from
firm or corporate adjuster or insurance consultant to director; rules.
(1) Not later than the 30th day after the authority of an individual adjuster
or insurance consultant to act for a firm or corporate adjuster or insurance
consultant has commenced or terminated, the firm or corporate adjuster or insurance
consultant shall notify the Director of the Department of Consumer and Business
Services of the commencement or termination.
(2)
A firm or corporate adjuster or insurance consultant shall notify the director
annually of all changes in its officers and directors during the immediately
previous calendar year. If the licensee is a corporation, the licensee shall
include in the notice any changes in its stockholders who own, directly or
indirectly, more than 10 percent of any class of any equity security of the
licensee.
(3)
The director may establish by rule a different period within which a firm or
corporate adjuster or insurance consultant must notify the director under
subsection (1) or (2) of this section. [1989 c.701 §19; 2001 c.191 §37]
744.033 Manner of application or
notification. Any application or notice to the
Director of the Department of Consumer and Business Services regarding the
licensing of an adjuster or insurance consultant under this chapter must be
made in the manner prescribed by the director. [1989 c.701 §20; 2001 c.191 §38]
744.035 [1967
c.359 §528; 1985 c.697 §18; repealed by 1989 c.701 §81]
744.037 Fees; refunds; rules.
A fee paid in connection with a license or a license application under this
chapter is not refundable unless the Director of the Department of Consumer and
Business Services provides otherwise by rule. [1989 c.701 §7; 2001 c.191 §44]
744.039 [1991
c.810 §22; 2001 c.191 §23; renumbered 744.077 in 2001]
744.040
[Repealed by 1967 c.359 §704]
744.045 [1967
c.359 §529; 1983 c.76 §2; 1987 c.916 §8; 1989 c.331 §33; 1989 c.701 §25;
renumbered 744.066 in 1989]
744.050
[Repealed by 1953 c.93 §2]
744.051 [1989
c.701 §21; 1991 c.810 §5; repealed by 2001 c.191 §61]
INSURANCE PRODUCERS
744.052 Definitions.
As used in ORS 744.052 to 744.089:
(1)
“Business entity” has the meaning given that term in ORS 731.116.
(2)
“Home state” means any state, district or territory of the United States, in
which an insurance producer maintains the insurance producer’s principal place
of residence or principal place of business and is licensed to act as an
insurance producer.
(3)
“Limited class credit insurance” includes but is not limited to credit life,
credit disability, credit property, credit unemployment, involuntary unemployment,
mortgage life, mortgage guaranty, mortgage disability, and guaranteed
automobile protection insurance, and any other form of insurance offered in
connection with an extension of credit that is limited to partially or wholly
extinguishing the credit obligation that the Director of the Department of
Consumer and Business Services determines should be designated a form of
limited class credit insurance.
(4)
“Limited class credit insurance producer” means a person required to be
licensed to sell, solicit or negotiate one or more forms of limited class
credit insurance coverage to individuals through a master, corporate, group or
individual policy.
(5)
“Limited class insurance” includes but is not limited to credit, mortgage,
automobile dealer guaranteed automobile protection and any other form of
insurance designated by the director as a form of limited class insurance.
(6)
“Limited class insurance producer” means a person required to be licensed to
sell, solicit or negotiate one or more forms of limited class insurance
coverage to individuals through a master, corporate, group or individual
policy.
(7)
“Negotiate,” “sell” and “solicit” have the meanings given those terms in ORS
731.104.
(8)
“Terminate” means to cancel the relationship between an insurance producer and
the insurer or to revoke an insurance producer’s authority to sell, solicit or
negotiate insurance.
(9)
“Uniform Application” means the current version of the Uniform Application for
resident and nonresident insurance producer licensing, produced by the National
Association of Insurance Commissioners.
(10)
“Uniform Business Entity Application” means the current version of the Uniform
Business Entity Application for resident and nonresident business entities,
produced by the National Association of Insurance Commissioners. [2001 c.191 §2;
2003 c.364 §2]
744.053 Requirements to be licensed as
insurance producer for class of insurance. A
person may not sell, solicit or negotiate insurance in this state for any class
or classes of insurance unless the person is licensed as an insurance producer
for that class or those classes in accordance with ORS 744.052 to 744.089. [2001
c.191 §3; 2003 c.364 §3]
744.054
[Formerly 744.015; 1991 c.810 §6; repealed by 2001 c.191 §61]
744.055 [1967
c.359 §530; 1971 c.231 §27; 1987 c.222 §1; 1989 c.701 §27; renumbered 744.071
in 1989]
744.056 Exemptions from insurance producer
licensing requirements. (1) ORS 744.052 to 744.089 do
not require an insurer to obtain a license as an insurance producer as required
by ORS 744.053. For purposes of this section, the term “insurer” does not
include an insurer’s officers, directors, employees, subsidiaries or
affiliates.
(2)
A license as an insurance producer is not required of any of the following:
(a)
An officer, director or employee of an insurer or an insurance producer, if the
officer, director or employee does not receive any commission on or fee for
policies written or sold to insure risks residing, located or to be performed
in this state and:
(A)
The officer’s, director’s or employee’s activities are executive,
administrative, managerial, clerical or a combination of these, and are only
indirectly related to the sale, solicitation or negotiation of insurance;
(B)
The officer’s, director’s or employee’s function relates to underwriting, loss
control, inspection or the processing, adjusting, investigating or settling of
a claim on a contract of insurance; or
(C)
The officer, director or employee is acting in the capacity of an agency
supervisor assisting insurance producers when the person’s activities are
limited to providing technical advice and assistance to insurance producers and
do not include the sale, solicitation or negotiation of insurance.
(b)
A person who does either of the following, when the person does not receive any
commission or fee for the service:
(A)
Secures and furnishes information for the purpose of group life insurance,
group property and casualty insurance, group annuities or group or blanket
health insurance or for the purpose of enrolling individuals under plans,
issuing certificates under plans or otherwise assisting in administrative
plans; or
(B)
Performs administrative services related to mass-marketed property and casualty
insurance.
(c)
An employer or an association of employers or its officers, directors or
employees, or the trustees of an employee trust plan:
(A)
To the extent that the employers, associations, directors, officers, employees
or trustees are engaged in the administration or operation of a program of employee
benefits for the employer’s or association’s own employees or the employees of
its subsidiaries or affiliates;
(B)
To the extent that the program of employee benefits involves the use of
insurance issued by an insurer; and
(C)
As long as the employers, associations, officers, directors, employees or
trustees are not in any manner compensated, directly or indirectly, by the
insurer issuing the insurance.
(d)
An employee of an insurer or an organization employed by insurers who is
engaging in the inspection, rating or classification of risks, or in the
supervision of the training of insurance producers and who is not individually
engaged in the sale, solicitation or negotiation of insurance.
(e)
A person whose activities in this state are limited to advertising without the
intent to solicit insurance in this state through communications in printed
publications or electronic mass media, the distribution of which is not limited
to residents of this state, but only if the person does not sell, solicit or
negotiate insurance that would insure risks residing, located or to be
performed in this state.
(f)
A person who is not a resident of this state who sells, solicits or negotiates
a policy of insurance for commercial property and casualty risks to an insured
with risks located in more than one state insured under that policy, but only
if the person is otherwise licensed as an insurance producer to sell, solicit
or negotiate that insurance in the state where the insured maintains its
principal place of business and the contract of insurance insures risks located
in that state.
(g)
A salaried full-time employee who counsels or advises the employer of the
employee relative to the insurance interests of the employer or of the
subsidiaries or business affiliates of the employer, but only if the employee
does not sell or solicit insurance or receive any commission.
(h)
An attorney in fact of an authorized reciprocal insurer, or the salaried
representative of the insurer or attorney who does not receive any commission.
(i) A person engaging in the lawful transaction of
reinsurance.
(j)
Salaried employees of title insurance producers or insurers, except for the
individual or individuals designated as exercising the powers conferred by a
title insurance producer’s license.
(k)
Any agent or representative of persons exempt from the Insurance Code under ORS
731.036 or holding a certificate of exemption under ORS 731.042, with respect
to the exempted transactions.
(L)
Any agent or representative of a fraternal benefit society who devotes, or
intends to devote, less than 50 percent of the agent’s or representative’s time
to the solicitation and procurement of insurance policies for that society. Any
person who in the preceding calendar year has solicited and procured life
insurance policies on behalf of any fraternal benefit society for an amount of
insurance in excess of $50,000 or, in the case of any other class or classes of
insurance that the society might write, on the persons of more than 25
individuals, and who has received or will receive a commission or other
compensation therefor, shall be presumed to be
devoting, or intending to devote, 50 percent or more of the person’s time to
the solicitation and procurement of insurance policies for that society.
(m)
An individual engaging in the lawful transaction of home protection insurance
if the individual is a real estate licensee as defined in ORS 696.010, and if
the transaction of such insurance by the individual is subject to a written
contract, to which the insurer is a party, governing the individual’s
activities in the transaction.
(n)
Salaried employees of a financial institution or trust company, as those terms
are defined in ORS 706.008, who, in the regular course of business with the
customers of the financial institution or trust company, present the customers
with written information about savings account annuities issued by an
authorized insurer. Any person who purchases such an annuity may rescind the
transaction within 10 days after the issuance of the contract. For purposes of
this paragraph, “savings account annuities” means annuities purchased with the
proceeds of a savings account, certificate or share in a financial institution
or trust company.
(3)
A person who provides general insurance advice in connection with providing
other professional services such as legal services, trust services, tax and
accounting services, financial planning or investment advisory services is not
considered to be soliciting the sale of insurance for the purpose of the definition
of “insurance producer” in ORS 731.104. [2001 c.191 §4; 2003 c.364 §4; 2003
c.802 §175; 2007 c.71 §242; 2007 c.319 §34]
744.057
[Formerly 744.025; 1997 c.631 §547; 1999 c.59 §227; repealed by 2001 c.191 §61]
744.058 Written examination; fees; rules.
(1) An individual applying for a resident insurance producer license must pass
a written examination unless the individual is exempt from the prelicensing education and examination requirement as
provided in ORS 744.067. The examination must test the knowledge of the
individual concerning the class or classes of insurance for which application
is made, the duties and responsibilities of an insurance producer and the
insurance statutes and rules of this state. Except as provided in subsection
(2) of this section, the examination required by this section shall be
developed and conducted by the Director of the Department of Consumer and
Business Services. An individual may apply for a resident insurance producer
license only if the individual has established in this state a residence or a
place of business for acting as an insurance producer.
(2)
The director may make arrangements, including contracting with a private
testing service, for developing and administering the examination and
collecting applicable fees.
(3)
Each individual applying to take an examination shall pay fees as established
by the director.
(4)
An individual who fails to appear for the examination as scheduled or fails to
pass the examination may reapply to take the examination according to
requirements and procedures established by the director by rule. [2001 c.191 §5;
2003 c.364 §5]
744.059 Qualifications for license; use of
uniform application. (1) An individual applying for a
resident insurance producer license shall apply to the Director of the
Department of Consumer and Business Services on the Uniform Application and
shall declare that the statements made in the application are true, correct and
complete to the best of the individual’s knowledge and belief. Before approving
the application, the director must find that the individual:
(a)
Is at least 18 years of age;
(b)
Has not committed an act that is a ground for action on a license set forth in
ORS 744.074;
(c)
When required by the director, has completed a prelicensing
course of study for the lines of authority for which the person has applied;
(d)
Has paid all applicable fees; and
(e)
Has successfully passed the examination for the lines of authority for which
the person has applied.
(2)
A business entity acting as an insurance producer is required to obtain an
insurance producer license. Application shall be made on the Uniform Business
Entity Application. Before approving the application, the director must find
that:
(a)
The business entity has paid all applicable fees; and
(b)
The business entity has designated a licensed insurance producer responsible
for the business entity’s compliance with the insurance laws and rules of this
state.
(3)
The director may require any documents necessary to verify the information
contained in an application.
(4)
Each insurer that sells, solicits or negotiates any form of limited class
credit insurance shall provide to each limited class credit insurance producer
a program of instruction, which is subject to review and approval by the
director. [2001 c.191 §6; 2003 c.364 §6]
744.060
[Repealed by 1953 c.93 §2]
744.061 Banking institution as insurance
producer. (1) The Insurance Code does not limit
or prohibit the licensing of a banking institution, as defined in ORS 706.008, as
an insurance producer to transact one or more of the classes of insurance
described in ORS 744.062, except for title insurance.
(2)
The Insurance Code does not limit or prohibit the licensing, as an insurance
producer to transact one or more of the classes of insurance described in ORS
744.062, of any of the following:
(a)
A corporation owned in whole or in part by a banking institution under ORS
708A.120, 716.588 or 716.594.
(b)
A corporation owned in whole or in part by a financial holding company or a
bank holding company, as defined in ORS 706.008. [1989 c.701 §24; 1997 c.631 §548;
2001 c.191 §24; 2001 c.377 §51; 2003 c.364 §7; 2005 c.194 §5]
744.062 Issuance of insurance producer
license; rules. (1) Unless the Director of the
Department of Consumer and Business Services refuses to issue or renew a
license pursuant to ORS 744.074, a person who has met the requirements of ORS
744.058 and 744.059, or ORS 744.063, shall be issued an insurance producer
license. An insurance producer may receive qualification for a license in one
or more of the following classes of insurance:
(a)
Life insurance as defined in ORS 731.170.
(b)
Health insurance as defined in ORS 731.162.
(c)
Property insurance as defined in ORS 731.182.
(d)
Casualty insurance as defined in ORS 731.158.
(e)
Variable life insurance, including variable annuities.
(f)
Property and casualty insurance coverage sold to individuals and families for
primarily noncommercial purposes.
(g)
Limited class credit insurance.
(h)
Any form of insurance designated by the director as a form of limited class
insurance.
(i) Title insurance as defined in ORS 731.190. A license for
the class of title insurance may be issued only to a resident insurance
producer.
(j)
Any other class of insurance permitted under the Insurance Code or rules
adopted thereunder.
(2)
For assistance in performance of the director’s duties, the director may
participate with the National Association of Insurance Commissioners, or any
affiliate or subsidiary that the National Association of Insurance
Commissioners oversees, in a centralized producer licensing registry in which
insurance producer licenses and appointments are centrally or simultaneously
effected for all states that require an insurance producer license. The director
may adopt by rule any uniform standards and procedures as are necessary to
participate in the registry, including the centralized collection of fees for
licenses or appointments that are processed through the registry.
(3)
An insurance producer may apply to amend a license for the purpose of adding or
deleting a class of insurance on the license in the manner prescribed for
license application in ORS 744.059 or 744.063, or as otherwise prescribed by
the director. [2001 c.191 §8; 2003 c.364 §8]
744.063 Nonresident insurance producer
license; fee. (1) Unless the Director of the
Department of Consumer and Business Services refuses to issue or renew a
license pursuant to ORS 744.074, a nonresident person shall receive a
nonresident insurance producer license if:
(a)
The person is currently licensed as a resident insurance producer and is in
good standing in the person’s home state;
(b)
The person has submitted the proper request for a nonresident insurance
producer license and has paid the applicable fees;
(c)
The person has submitted or transmitted to the director the resident insurance
producer license application that the person submitted to the person’s home
state, or in lieu of that application, a completed Uniform Application; and
(d)
The person’s home state grants nonresident insurance producer licenses to
residents of this state on the same basis.
(2)
The director may verify the insurance producer’s licensing status through the
Producer Database maintained by the National Association of Insurance Commissioners,
its affiliates or subsidiaries.
(3)
A nonresident insurance producer licensed in this state who moves from one
state to another state or a resident insurance producer who moves from this
state to another state shall file with the director a change of address and
provide certification from the new resident state not later than the 30th day
after the change of legal residence. No fee or license application is required
under this subsection.
(4)
A person licensed as a surplus lines insurance producer in the person’s home
state shall receive a nonresident surplus lines insurance producer license
pursuant to subsection (1) of this section. Except as provided in subsection
(1) of this section, nothing in this section supersedes any provision of ORS 735.400
to 735.495.
(5)
Notwithstanding any other provision of ORS 744.052 to 744.089, the director
shall issue a nonresident limited class insurance producer license pursuant to
subsection (1) of this section to a person who is licensed as a limited class
credit insurance producer or as another type of limited class insurance
producer under the laws of the person’s home state that restrict the authority
of the license to less than the authority prescribed in ORS 744.062 for the
classes of life insurance, health insurance, property insurance or casualty
insurance.
(6)
A license for the class of title insurance may not be issued to a nonresident
insurance producer.
(7)
The director is the attorney in fact of a person to whom a license is issued
under this section, and upon whom all legal process in any action or proceeding
against the person may be served. Any legal process against the person that is
served upon the director has the same legal force and validity as if served
upon the person. The authority of the director under this subsection continues
as long as any liability remains outstanding in this state. The director
becomes the attorney in fact of the person on the date that the director issues
the nonresident insurance producer license to the person. [2001 c.191 §7; 2003
c.364 §9]
744.064 Persons licensed elsewhere.
(1) Unless denied a license pursuant to ORS 744.074, a person who is currently
licensed as a resident insurance producer in a Canadian province, in Mexico or
in a state that does not grant nonresident insurance producer licenses to
residents of this state on the same basis that this state grants nonresident
insurance producer licenses under ORS 744.063 shall receive a nonresident
insurance producer license if:
(a)
The Director of the Department of Consumer and Business Services determines
that the insurance regulator in the person’s place of residence grants
nonresident insurance producer licenses to residents of this state on the same
basis that the director grants nonresident insurance producer licenses to
residents of the other jurisdiction or on the same basis that the insurance
regulator grants insurance producer licenses to residents of the other
jurisdiction, or on another basis that is reasonable and fair to licensees of
this state; and
(b)
The person meets all of the following requirements:
(A)
The person is in good standing as a resident insurance producer in the person’s
place of residence in Canada, Mexico or the person’s state of residence.
(B)
The person has submitted the proper request for a nonresident insurance
producer license and has paid the applicable fees.
(C)
The person has submitted or transmitted to the Director of the Department of
Consumer and Business Services the resident insurance producer license
application that the person submitted to the insurance regulator in the person’s
place of residence, or in lieu of that application, a completed Uniform
Application.
(D)
The person has taken and passed a written examination specified by the director
under this section with respect to the authority to transact the class or
classes of insurance for which the applicant has applied. The requirement of an
examination does not apply to an applicant that is a business entity.
(E)
The person has satisfied any other qualifications established by the director
by rule or has satisfied qualifications that the director establishes by rule
in lieu of the qualifications established in this subsection.
(2)
A person who is licensed by this state to sell, solicit or negotiate insurance
as a nonresident insurance producer under this section may sell, solicit or
negotiate any policy of insurance upon domestic risks to the same extent and
upon the same terms as provided by the insurance regulator in the person’s
place of residence for residents of this state transacting a like business in a
province of Canada, in Mexico or in the person’s state of residence.
(3)
The examination requirement under subsection (1) of this section is subject to
waiver if:
(a)
The director determines that a written examination or other comparable
requirement acceptable to the director is required of applicants for a resident
insurance producer license in the other jurisdiction;
(b)
The insurance regulator of the other jurisdiction certifies that the applicant
holds a valid license as a resident insurance producer in the other
jurisdiction and either passed the written examination, was the holder of a
resident insurance producer license prior to the time the written examination
was first required or meets the other comparable requirement acceptable to the
director; and
(c)
In the other jurisdiction, a resident of this state is privileged to procure an
insurance producer license upon conditions that the director determines to be
reasonable and fair to licensees of this state.
(4)
The director shall establish the form of the nonresident insurance producer
license issued under this section.
(5)
A person licensed as a surplus lines insurance producer in the person’s home
state is eligible for a nonresident surplus lines insurance producer license in
the manner provided for nonresident insurance producer licenses in subsection
(1) of this section. A person to whom a nonresident surplus lines insurance
producer license is issued under this section is subject to ORS 735.400 to
735.495.
(6)
The director is the attorney in fact of a person to whom a license is issued
under this section, and upon whom all legal process in any action or proceeding
against the person may be served. Any legal process against the person that is
served upon the director has the same legal force and validity as if served
upon the person. The authority of the director under this subsection continues
as long as any liability remains outstanding in this state. The director
becomes the attorney in fact of the person on the date that the director issues
the nonresident insurance producer license to the person. This subsection does
not apply to a person to whom a nonresident surplus lines insurance producer
license is issued. [2001 c.191 §9; 2003 c.364 §10]
744.065 [1967
c.359 §531; 1969 c.336 §14; 1973 c.89 §1; 1983 c.76 §3; 1989 c.413 §10;
repealed by 1989 c.701 §81]
744.066
[Formerly 744.045; repealed by 2001 c.191 §61]
744.067 Exemptions from prelicensing education or examination requirement.
(1) An individual who applies for a resident insurance producer license in this
state who is or was previously licensed as an insurance producer for the same
lines of authority in another state is not required to complete any prelicensing education or examination. The exemption under
this subsection is available only if the individual is currently licensed in
the other state or if the application is received by the Director of the
Department of Consumer and Business Services not later than the 90th day after
the applicant’s previous license was terminated and if the other state issues a
certification that, at the time of termination, the applicant was in good
standing in that state or the state’s Producer Database maintained by the
National Association of Insurance Commissioners, its affiliates or subsidiaries
indicate that the applicant is or was licensed in good standing for the class
of insurance requested.
(2)
A person licensed as an insurance producer in another state who moves to this
state must apply for a resident insurance producer license not later than the
90th day after the date on which the person established legal residence in
order to qualify for a resident insurance producer license pursuant to ORS
744.059. Neither prelicensing education nor an
examination is required of a person to whom this subsection applies in order to
obtain a license in a class of insurance described in ORS 744.062 if the person
held a license in that class in the other state, except when the director has
determined otherwise by rule.
(3)
An individual who holds an industry designation described in this subsection is
not required to complete prelicensing education or
the examination required in ORS 744.058 if the director is satisfied, by
examination or otherwise, that the applicant is knowledgeable in the
particulars of the applicable provisions of the Insurance Code. This subsection
applies to:
(a)
An applicant for a license authorizing the applicant to transact property or
casualty insurance or both, upon whom the American Institute for Chartered
Property Casualty Underwriters has conferred the Chartered Property Casualty
Underwriter (C.P.C.U.) designation.
(b)
An applicant for a license authorizing the applicant to transact life or health
insurance, or both, upon whom the American College has conferred the Chartered
Life Underwriter (C.L.U.) designation.
(4)
The director may recognize one or more industry designations as exempting an
applicant from the prelicensing education requirement
or the examination required in ORS 744.058 or both. For each industry
designation that the director recognizes and for the extent of the exemption to
be given, the director shall consider the content, quality and scope of the
educational program required for the designation as well as other factors
determined by the director to be relevant.
(5)
An individual is not required to complete prelicensing
education or the examination required in ORS 744.058 or 744.064 for the
following licenses:
(a)
A license authorizing the individual to transact a type of limited class
insurance, except as the director otherwise provides by rule.
(b)
A license authorizing the individual to transact title insurance. [2001 c.191 §10;
2003 c.364 §11]
744.068 Required notifications;
maintenance of usual and customary records; rules.
(1) An insurance producer shall notify the Director of the Department of
Consumer and Business Services prior to transacting business under the
insurance producer license under any name other than the insurance producer’s
legal name and prior to changing, deleting or adding an assumed business name
in connection with the insurance producer’s business under the insurance
producer license.
(2)
A resident insurance producer shall keep at the principal place of business of
the insurance producer the usual and customary records pertaining to the
business under the resident insurance producer license. All such records shall
be kept available and open to the inspection of the director during business
hours. A resident insurance producer shall keep records of insurance transacted
by the insurance producer under the license for three years following
expiration of the policy unless the director designates another period.
(3)
A nonresident insurance producer shall keep at the principal place of business
of the insurance producer the usual and customary records pertaining to the
business under the nonresident insurance producer license. All such records
shall be kept available and open to the inspection of the director during
business hours. For the purpose of this subsection, if a nonresident insurance
producer has a place of transacting insurance in this state, that place shall
be the principal place of business for the nonresident insurance producer. A
nonresident insurance producer shall keep records of insurance transacted by
the insurance producer under the nonresident insurance producer license for
three years following expiration of the policy unless the director designates
another period.
(4)
An insurance producer shall notify the director of any of the following changes
not later than the 30th day after the date of the change:
(a)
A change of address or telephone number of the principal place of business or
any location at which the insurance producer transacts business under the license
in this state.
(b)
The opening or closing of a location at which the insurance producer transacts
business under the license in this state.
(c)
A change of residence. This paragraph applies only to a resident insurance
producer.
(5)
Not later than the 30th day after the authority of an individual insurance
producer to act for an insurance producer that is a business entity has
commenced or terminated, the business entity shall notify the director of the
commencement or termination. The director may establish by rule a different
period within which the business entity must notify the director under this
subsection. [2001 c.191 §11; 2003 c.364 §12]
744.069 [1989
c.701 §26; repealed by 2001 c.191 §61]
744.070
[Amended by 1967 c.359 §480; renumbered 743.603]
744.071
[Formerly 744.055; repealed by 2001 c.191 §61]
744.072 Renewal or reinstatement of
insurance producer license; continuing education; rules.
(1) An insurance producer license remains in effect unless revoked or suspended
as long as all applicable fees are paid by the due date and, if the licensee is
a resident individual insurance producer, as long as the licensee has met
applicable continuing education requirements for resident individual insurance
producers under subsection (4) of this section by the due date. The renewal fee
is due on the last day of the month in which the second anniversary of the
initial issuance date of the license occurs and on the second anniversary
following each renewal. The Director of the Department of Consumer and Business
Services may establish another renewal period for the purpose of coordination
with any national registration or licensing system.
(2)
As a condition for or in connection with the renewal of an insurance producer
license the director may require the insurance producer to file information
with the director regarding use made of the license during the previous year or
two years, and especially showing whether the license has been used principally
for the writing of personal or controlled insurance, as defined in ORS 746.065.
(3)
The director may require an insurance producer, as a condition for renewal of
the insurance producer license, to fulfill any or all of the requirements then
applicable to the original issuance of the license.
(4)
The director by rule may establish requirements for continuing education that
each resident individual insurance producer must satisfy as a condition for
renewing the resident insurance producer license. The hours of education so
required shall not exceed 45 hours annually during the first five years an
individual is licensed, 24 hours annually during the next five years an
individual is licensed, and 12 hours annually for individuals licensed for more
than 10 years or for individuals who have received the designation C.P.C.U.,
C.L.U. or comparable designation recognized by the director. Continuing
education shall not be required for:
(a)
Any person to whom a license is issued without examination pursuant to ORS
744.067 (5);
(b)
Any person who before January 1, 2010:
(A)
Requests an exemption from the requirement;
(B)
Is authorized to transact only life insurance;
(C)
Is 58 years of age or older;
(D)
Has 10 or more years of experience as a licensed insurance producer; and
(E)
Is servicing only existing policies; or
(c)
Any person whose license is indorsed to authorize the person to act as a
reinsurance intermediary broker or reinsurance intermediary manager, or both,
as described in ORS 744.800, but the exemption applies solely for the purpose
of maintaining the indorsement and does not affect
any continuing education requirement that otherwise applies.
(5)
In connection with establishing continuing education requirements under
subsection (4) of this section, the director may make arrangements, including
contracting with a private service, for establishing and operating a program
and standards for approving and registering continuing education programs and
their providers.
(6)
An individual insurance producer who allows the insurance producer license to
lapse may apply to the director to reinstate the same license within 12 months
from the due date for renewal without having to take and pass a written
examination, but the insurance producer must pay an amount for the
reinstatement that is equal to double the unpaid renewal fee for any renewal
fee paid after the due date and must complete any continuing education
requirements not satisfied to date, including the period for which the license
was lapsed. A license reinstated under this subsection is effective upon the
date that the director grants the reinstatement.
(7)
An individual insurance producer who is unable to comply with license renewal
procedures due to military service or another extenuating circumstance such as
a long term medical disability may request a waiver from compliance with those
procedures. The insurance producer may also request a waiver of any examination
requirement or any penalty imposed for failure to comply with renewal
procedures. [2001 c.191 §12; 2003 c.364 §13; 2009 c.96 §1]
744.073 Temporary insurance producer
license. (1) The Director of the Department of
Consumer and Business Services may issue a temporary insurance producer license
for a period not to exceed 180 days without requiring a written examination if
the director determines that the temporary license is necessary for the
servicing of an insurance business in the following cases:
(a)
To the surviving spouse or court-appointed personal representative of a
licensed insurance producer who dies or becomes mentally or physically disabled
to allow adequate time for the sale of the insurance business owned by the
insurance producer, for the recovery or return of the insurance producer to the
business, or to provide for the training and licensing of new personnel to
operate the insurance producer’s business;
(b)
To a member or employee of a business entity licensed as an insurance producer,
upon the death or disability of the individual designated in the business
entity application or the license;
(c)
To the designee of a licensed insurance producer entering active service in the
Armed Forces of the United States; or
(d)
In any other circumstance in which the director determines that the public
interest will best be served by the issuance of the license.
(2)
The director may by order limit the authority of any temporary licensee in any
way that the director determines to be necessary to protect insureds
and the public. The director may require the temporary licensee to have a
suitable sponsor who is a licensed insurance producer or insurer and who
assumes responsibility for all acts of the temporary licensee and may impose
other similar requirements designed to protect insureds
and the public. The director may revoke a temporary license if the interest of insureds or the public is endangered. A temporary license
may not continue after the owner or the personal representative disposes of the
business. [2001 c.191 §13; 2003 c.364 §14]
744.074 Authority of director to place
licensee on probation or to suspend, revoke or refuse to issue or renew
license. (1) The Director of the Department of
Consumer and Business Services may place a licensee on probation or suspend,
revoke or refuse to issue or renew an insurance producer license and may take
other actions authorized by the Insurance Code in lieu thereof or in addition
thereto, for any one or more of the following causes:
(a)
Providing incorrect, misleading, incomplete or materially untrue information in
the license application.
(b)
Violating any insurance laws, or violating any rule, subpoena or order of the
director or of the insurance commissioner of another state or Mexico or Canada.
(c)
Obtaining or attempting to obtain a license through misrepresentation or fraud.
(d)
Improperly withholding, misappropriating or converting any moneys or properties
received in the course of doing insurance business.
(e)
Intentionally misrepresenting the terms of an actual or proposed insurance
contract or application for insurance.
(f)
Having been convicted of a felony, of a misdemeanor involving dishonesty or
breach of trust, or of an offense punishable by death or imprisonment under the
laws of the United States. The record of the conviction shall be conclusive
evidence of the conviction.
(g)
Having admitted or been found to have committed any unfair trade practice or
fraud related to insurance.
(h)
Using fraudulent, coercive or dishonest practices, or demonstrating
incompetence, untrustworthiness or financial irresponsibility in the conduct of
business in this state or elsewhere.
(i) Cancellation, revocation, suspension or refusal to renew
by any state of a license or other evidence of authority to act as an adjuster
or an insurance producer or consultant. The record of the cancellation,
revocation, suspension or refusal to renew shall be conclusive evidence of the
action taken.
(j)
Cancellation, revocation, suspension or refusal to renew by any state or
federal agency, by a Canadian province or by the government of Mexico of the
authority to practice law or to practice under any other regulatory authority
if the cancellation, revocation, suspension or refusal to renew was related to
the business of an adjuster or an insurance producer or consultant, or if
dishonesty, fraud or deception was involved. The record of the cancellation,
revocation, suspension or refusal to renew shall be conclusive evidence of the
action taken.
(k)
Forging another person’s name to an application for insurance or to any
document related to an insurance transaction.
(L)
Improperly using notes or any other reference material to complete an
examination for an insurance license.
(m)
Knowingly accepting insurance business from an individual who is not licensed.
(n)
Error by the director in issuing or renewing a license.
(o)
Failing to pay a civil penalty assessed by the director that has become final
by operation of law or upon appeal.
(p)
Failing to pay any fee or charge to the director.
(q)
Failing to comply with continuing education requirements applicable to the
license or any class of insurance authorized under the license, unless the
director has waived the requirements.
(2)
If the director refuses to issue or renew an insurance producer license, the
director shall notify the applicant or licensee and inform the applicant or
licensee in writing of the reason for the refusal to issue or renew and of the
applicant’s or licensee’s rights under ORS chapter 183.
(3)
The director may suspend, revoke or refuse to issue or renew the insurance
producer license of a business entity if the director determines that an
individual licensee’s violation was known or should have been known by one or
more of the partners, officers or managers acting on behalf of the partnership
or corporation but the violation was not reported to the director and
corrective action was not taken. [2001 c.191 §14; 2003 c.364 §15]
744.075 [1967
c.359 §532; 1983 c.76 §4; 1989 c.701 §28; 1991 c.810 §7; repealed by 2001 c.191
§61]
744.076 Payment of commission, service fee
or brokerage. (1) An insurer or insurance producer
may not pay a commission, service fee, brokerage or other valuable
consideration to a person for selling, soliciting or negotiating insurance in
this state if that person is required to be licensed as an insurance producer
and is not so licensed.
(2)
A person shall not accept a commission, service fee, brokerage or other
valuable consideration for selling, soliciting or negotiating insurance in this
state if that person is required to be licensed as an insurance producer and is
not so licensed.
(3)
Renewal or other deferred commissions may be paid to a person for selling,
soliciting or negotiating insurance in this state if the person was required to
be licensed as an insurance producer at the time of the sale, solicitation or
negotiation and was then so licensed.
(4)
An insurer or insurance producer may pay or assign commissions, service fees,
brokerages or other valuable consideration to an insurance agency or to persons
who do not sell, solicit or negotiate insurance in this state, except when the
payment or assignment would violate ORS 746.045 or 746.055. [2001 c.191 §15;
2003 c.364 §16]
744.077 Conditions under which person
licensed as insurance producer and consultant may accept commission or fee;
rules. (1) The Director of the Department of
Consumer and Business Services shall establish by rule the conditions under
which a person who is licensed as an insurance producer and as an insurance
consultant may accept a commission or a fee, or both, in a transaction or in
related transactions. The director may establish different conditions for such
products as employee benefit plans, insurance for personal, family or household
purposes and insurance for commercial purposes, and for any other insurance
product as determined appropriate by the director. In developing rules under
this subsection, the director shall take into account the requirements and
characteristics of the different insurance products and the varying degrees of
trade practice regulation needed.
(2)
Except as otherwise provided by rule, an insurance producer who is not licensed
as an insurance consultant may receive only commission. [Formerly 744.039; 2003
c.364 §17]
744.078 Appointment of insurance
producers; rules. (1) An insurance producer shall
not act as an agent of an insurer unless:
(a)
The insurance producer is an appointed agent of that insurer; or
(b)
The insurance producer transacts insurance on behalf of another insurance
producer who is an appointed agent of that insurer according to conditions and
limitations established by the Director of the Department of Consumer and
Business Services by rule.
(2)
Each insurer shall maintain a current list of insurance producers contractually
authorized to accept applications on behalf of the insurer. Each insurer shall
make the list available to the director upon request.
(3)
An insurance producer may represent as agent under one insurance producer
license as many insurers as may appoint the insurance producer in accordance
with this section.
(4)
Except as provided in a group contract of insurance under subsection (5) of
this section, any person who solicits or procures an application for insurance
as an agent of the insurer shall in all matters relating to the application for
insurance and the policy issued in consequence of the application be regarded
as the agent of the insurer issuing the policy and not the agent of the
insured. Any provision in the application and policy to the contrary is invalid
and of no effect.
(5)
A group contract of insurance and the individual certificate issued pursuant to
the group contract may contain provisions stating whether the group
policyholder acts as the agent of the individual insured or as the agent of the
insurer. [2001 c.191 §16; 2003 c.364 §18]
744.079 Termination of relationship with
insurance producer. (1) An insurer or authorized
representative of the insurer who terminates the appointment, employment,
contract or other insurance business relationship with an insurance producer
shall notify the Director of the Department of Consumer and Business Services
not later than the 30th day after the effective date of the termination, in the
manner prescribed by the director, if the reason for termination is one of the
reasons set forth in ORS 744.074 or if the insurer has knowledge that the
insurance producer was found by a court, government body or self-regulatory
organization authorized by law to have engaged in any of the activities set
forth in ORS 744.074. Upon the written request of the director, the insurer
shall provide additional information, documents, records or other data
pertaining to the termination or activity of the insurance producer.
(2)
An insurer or the authorized representative of the insurer shall promptly
notify the director in a manner acceptable to the director if, upon further
review or investigation, the insurer discovers additional information that
would have been reportable to the director in accordance with subsection (1) of
this section if the insurer had then known of its existence.
(3)
Not later than the 15th day after making a notification required by subsection
(1) or (2) of this section, the insurer shall mail a copy of the notification
to the insurance producer at the insurance producer’s last known business
address. If the insurance producer is terminated for cause for any of the reasons
listed in ORS 744.074, the insurer shall provide a copy of the notification to
the insurance producer at the insurance producer’s last known business address
by certified mail, return receipt requested, postage prepaid or by overnight
delivery using a nationally recognized carrier.
(4)
Not later than the 30th day after the insurance producer has received a
notification under subsection (3) of this section, the insurance producer may
file with the director written comments concerning the substance of the
notification. The insurance producer shall, by the same means, simultaneously
send a copy of the comments to the reporting insurer. The comments shall become
a part of the director’s file and shall accompany every copy of a report
distributed or disclosed for any reason about the insurance producer as allowed
under subsection (5) of this section.
(5)
In the absence of actual malice, an insurer, the authorized representative of
the insurer, an insurance producer, the director or an organization of which the
director is a member and that compiles the information and makes it available
to other insurance regulators or regulatory or law enforcement agencies shall
not be subject to civil liability. In the absence of actual malice, a civil
cause of action shall not arise against any such entity or its agents or
employees as a result of any statement or information required by or provided
pursuant to this section, or any information relating to any statement that may
be requested in writing by the director from an insurer or insurance producer,
or relating to a statement by a terminating insurer or insurance producer to an
insurer or insurance producer, that is limited exclusively to whether a
termination for cause under subsection (1) of this section was reported to the
director. Immunity under this subsection is available only if the propriety of
any termination for cause under subsection (1) of this section is certified in
writing by an officer or authorized representative of the insurer terminating
the relationship.
(6)
In any action brought against a person who may have immunity under subsection
(5) of this section for making any statement required by this section or
providing any information relating to any statement that may be requested in
writing by the director, the party bringing the action must plead specifically
in any allegation that subsection (5) of this section does not apply because
the person making the statement or providing the information did so with actual
malice.
(7)
Subsections (5) and (6) of this section do not abrogate or modify any existing
statutory or common law privileges or immunities.
(8)
The director may take any administrative action authorized by the Insurance
Code, including suspension or revocation of a license or certificate of
authority, against an insurer, the authorized representative of an insurer or
an insurance producer who fails to file notice as required by this section or
who is found by a court of competent jurisdiction to have filed notice with
actual malice.
(9)
Any information, documents, records or other data in the control or possession
of the director that are furnished by an insurer or an insurance producer, or
an employee or agent thereof acting on behalf of the insurer or insurance
producer, or that are obtained by the director in an investigation pursuant to
this section shall be confidential, shall not be subject to subpoena and shall
not be subject to discovery nor admissible in evidence in any private civil
action. The director, however, may use the confidential information, documents,
records or other data in administering this section and in the furtherance of
any other regulatory or legal action brought as a part of the director’s
duties. The information, documents, records or other data referred to in this
subsection are subject to the public officer privilege described in ORS 40.270.
[2001 c.191 §17; 2003 c.364 §19]
744.080
[Repealed by 1967 c.359 §704]
744.081 Termination of appointment.
(1) An insurer may terminate an agency appointment at any time as provided in
this section. Termination shall be without prejudice to the contract rights, if
any, of the insurance producer so terminated. The insurer shall give written
notice of the termination and the date thereof to the insurance producer at
least 90 days prior to the effective date of the termination. The notice must
specify the reasons for the termination. The insurer shall deliver the notice
either in person or by mail at the address last provided by the insurance
producer to the insurer. The insurance producer shall not have a cause of
action against the insurer as a result of any statement in the notice unless
the statement is false and the insurer knew the statement was false when made.
(2)
An insurer may terminate an agency appointment without giving the notice
required by subsection (1) of this section on any of the grounds specified in
this subsection. The following are grounds for termination under this
subsection:
(a)
The insurance producer’s insurance license is denied, restricted, revoked,
suspended or canceled by any public authority;
(b)
The insurance producer’s business is sold, transferred or merged and the
insurer has not appointed the successor;
(c)
The insurance producer is insolvent or fails to remit balances to the insurer
in accordance with the agreement;
(d)
The insurance producer commits fraud or engages in intentional misconduct;
(e)
The insurer amends its certificate of authority in order to discontinue a class
of insurance;
(f)
The insurer ceases selling insurance in this state; or
(g)
The insurer and insurance producer mutually agree to terminate the agency
appointment.
(3)
An insurance producer may terminate an agency appointment at any time, but the
termination shall be without prejudice to the contract rights, if any, of the
appointing insurer. The insurance producer shall give written notice of the
termination and the date thereof to the director not later than the 30th day
after the effective date of the termination, and to the insurer. The director
may require reasonable proof from the insurance producer that the insurance
producer has given such notice to the insurer. [Formerly 744.175; 2003 c.364 §20]
744.082 Waiver of requirement for
nonresident insurance producer license applicant.
The Director of the Department of Consumer and Business Services shall waive
any requirement for a nonresident insurance producer license applicant with a
valid resident insurance producer license from the applicant’s home state,
except the requirements imposed by ORS 744.063, if the applicant’s home state
grants nonresident insurance producer licenses to residents of this state on
the same basis. [2001 c.191 §18; 2003 c.364 §21]
744.083 Trust account for premium funds;
commingling; exceptions; rules. (1) All
premium funds received by a resident insurance producer shall be accounted for
and maintained in a trust account separate from all other business and personal
funds.
(2)
Except as provided in subsection (3) of this section, a resident insurance
producer may not commingle or otherwise combine premiums with any other moneys.
(3)
A resident insurance producer may commingle with premium funds in the trust
account required by subsection (1) of this section any additional funds the
insurance producer deems prudent for the purpose of advancing premiums,
establishing reserves for the paying of return premiums, or for any
contingencies that may arise in the course of receiving and transmitting
premium or return premium funds.
(4)
This section does not apply to:
(a)
Any financial institution or trust company, as those terms are defined in ORS
706.008, or any entity licensed under ORS chapter 725 or 726.
(b)
Any class of insurance producers that the Director of the Department of
Consumer and Business Services designates by rule. The director may exempt a
class of insurance producer from this section if the director determines that
the requirements of this section are unduly burdensome to the insurance
producers in relation to the public good served. [Formerly 744.225; 2003 c.364 §22]
744.084 Certificate of deposit in lieu of
trust account; rules. (1) In lieu of the trust account
required by ORS 744.083, a resident insurance producer may keep a certificate
of deposit from an institution insured by the federal government or an
instrumentality thereof if the resident insurance producer has an average
monthly balance of premium funds received and held for the last 12 months of at
least $2 million. A resident insurance producer who keeps a certificate of
deposit shall have satisfactory evidence of the certificate available at all
times for inspection by the Director of the Department of Consumer and Business
Services.
(2)
A certificate of deposit authorized under subsection (1) of this section shall
be for an amount at least equal to the average monthly balance of premium funds
received and held by the resident insurance producer for the last 12 months.
Nothing in this subsection requires that the required amount of the certificate
of deposit be calculated, or the amount changed, more often than once a month.
(3)
The director may adopt rules specifying what constitutes satisfactory evidence
for purposes of subsection (1) of this section.
(4)
Authorization to use a certificate of deposit may be revoked by the director at
any time upon a determination that the resident insurance producer has failed
to comply with the provisions of this section or rules adopted under subsection
(3) of this section. Upon revocation, the resident insurance producer shall
comply immediately with the provisions of ORS 744.083. [Formerly 744.227; 2003
c.364 §23]
744.085 [1967
c.359 §533; 1971 c.231 §28; 1977 c.174 §1; 1977 c.820 §1; 1979 c.501 §4; 1981
c.817 §1; 1983 c.76 §5; 1989 c.701 §29; 1991 c.810 §8; 1993 c.447 §85; 1995
c.334 §1; repealed by 2001 c.191 §61]
744.086 Applicability of Insurance Code to
insurance producers transacting title insurance.
The Legislative Assembly finds that it is in the interest of the
insurance-buying public that insurance producers authorized to transact title
insurance be subject to the Insurance Code. It is declared to be the intent of
the Legislative Assembly that the Insurance Code shall apply to such insurance
producer only to the extent necessary for the regulation of title insurance
ratemaking and unfair trade practices. [Formerly 744.240; 2003 c.364 §24]
744.087 Filing insurance producers
compensation agreements; filing not public record.
The Director of the Department of Consumer and Business Services may require
the filing by an insurer of any compensation agreements for insurance producers
who are appointed by the insurer as agents of the insurer under ORS 744.078. No
such filing shall be deemed a “public record” as defined in ORS 192.410. [Formerly
744.245; 2003 c.364 §25]
744.088 Training requirements to be
licensed as insurance producer for long term care insurance.
(1) An individual may not sell, solicit or negotiate long term care insurance
unless the individual is licensed as an insurance producer for health or life
insurance and satisfies the following training requirements:
(a)
The individual must complete a one-time training course of not less than eight
hours before selling, soliciting or negotiating long term care insurance; and
(b)
The individual must complete ongoing training of not less than four hours in
each 24-month period following the one-time training course.
(2)
The Director of the Department of Consumer and Business Services may approve as
continuing education courses under ORS 744.072 any courses offered to satisfy
the training requirements of this section.
(3)
The training required by this section must consist of topics related to long
term care insurance, long term care services and, if applicable, qualified
state long term care insurance partnership programs, including but not limited
to:
(a)
State and federal rules and requirements and the relationship between qualified
state long term care insurance partnership programs and other public and
private coverage of long term care services, including Medicaid.
(b)
Available long term care services and providers.
(c)
Changes or improvements in long term care services or providers.
(d)
Alternatives to the purchase of private long term care insurance.
(e)
The effect of inflation on benefits and the importance of inflation protection.
(f)
Consumer suitability standards and guidelines.
(4)
The training required by this section may not include training that is insurer
or company product specific or that includes any sales or marketing
information, materials or training, other than those required by state or
federal law.
(5)
An insurer must:
(a)
Obtain verification that an insurance producer receives training required by
this section before an insurance producer sells, solicits or negotiates the
insurer’s long term care insurance products.
(b)
Maintain records subject to the state’s record retention requirements.
(c)
Make the verification obtained under paragraph (a) of this subsection available
to the director upon request.
(6)
An insurer must maintain records with respect to the training of its insurance
producers concerning the distribution of its partnership policies that will
allow the director to provide assurance to the state Medicaid agency that
insurance producers have received training on the topics described in
subsection (3)(a) of this section and that insurance producers have
demonstrated an understanding of the partnership policies and their
relationship to public and private coverage of long term care, including
Medicaid, in this state. An insurer must make the records available to the
director upon request.
(7)
The satisfaction in any state of the training required by this section is
considered to satisfy the training required by this section. [2007 c.486 §9]
744.089 Report of administrative action
taken against insurance producer. (1) An
insurance producer shall report to the Director of the Department of Consumer
and Business Services any administrative action taken against the insurance
producer in another jurisdiction or by another governmental agency in this
state not later than the 30th day after the date of the final disposition of
the matter. This report shall include a copy of the order, consent to order and
other relevant legal documents.
(2)
Not later than the 30th day after the initial pretrial hearing date, an
insurance producer shall report to the director any criminal prosecution of the
insurance producer taken in any jurisdiction. The report shall include a copy
of the initial complaint filed, the order resulting from the hearing and any
other relevant legal documents. [2001 c.191 §19; 2003 c.364 §26]
744.090
[Amended by 1967 c.359 §370; renumbered 743.111]
744.091 Additional conditions under which
person licensed as insurer or insurance producer may charge commission or
service fee; rules. (1) An insurer or insurance
producer may charge a commission, a service fee or a combination of the two
when transacting insurance in other than the following categories of insurance:
(a)
Insurance that covers an individual’s person, property or liability;
(b)
Life or health insurance for groups of fewer than 51 lives; or
(c)
Insurance on a commercial or public entity paying combined annual premiums of
less than $100,000 for the insurance.
(2)
An insurer or insurance producer may charge a commission or service fee other
than the commission or fee filed in accordance with ORS 737.205 only if the
insurer or insurance producer has a written agreement with the prospective
insured prior to the binding or issuance of an insurance policy. The Director
of the Department of Consumer and Business Services may establish by rule
minimum conditions for written agreements entered into under this subsection.
An insurer or insurance producer who enters into a written agreement as
provided in this subsection is not in violation of ORS 746.035 or 746.045. [2003
c.364 §17b]
744.093 Solicitation or sale of insurance
policy by retail insurance producer or wholesale insurance producer; rules.
(1) As used in this section:
(a)
“Retail insurance producer” means an insurance producer who directly solicits
or sells an insurance policy to a prospective insured or directly negotiates an
insurance policy with a prospective insured.
(b)
“Wholesale insurance producer” means an insurance producer who solicits or
sells an insurance policy to a prospective insured through a retail insurance
producer or negotiates an insurance policy for a prospective insured with a
retail insurance producer and does not solicit or sell directly to or negotiate
directly with a prospective insured.
(2)
A wholesale insurance producer who sells, solicits or negotiates a policy
directly with a retail insurance producer and not on behalf of a prospective
insured may charge the retail insurance producer a fee or a combination of a
fee and a commission if the wholesale insurance producer has a written
agreement with the retail insurance producer prior to the binding or issuance
of the insurance policy. The charge must be commensurate with the services
provided by the wholesale insurance producer.
(3)
A retail insurance producer may charge a fee to a prospective insured when the
retail insurance producer pays a fee or a combination of a fee and a commission
to a wholesale insurance producer under subsection (2) of this section if the
retail insurance producer has a written agreement with the prospective insured
prior to the binding or issuance of the insurance policy. The fee may not
exceed the amount of compensation paid by the retail insurance producer to the
wholesale insurance producer.
(4)
For the purpose of determining the charge under subsection (2) of this section,
the retail insurance producer and wholesale insurance producer may agree to any
allocation of the fee that the retail insurance producer charges the consumer
under this section. The Director of the Department of Consumer and Business
Services may establish by rule minimum conditions for written agreements
entered into under this section. An insurer or insurance producer who enters
into a written agreement as provided in this section is not in violation of ORS
746.035 or 746.045. [2003 c.364 §26b]
744.095 [1967
c.359 §534; repealed by 1989 c.701 §81]
744.100
[Repealed by 1967 c.359 §704]
744.105 [1967
c.359 §535; 1971 c.231 §29; repealed by 1989 c.701 §81]
744.110
[Repealed by 1967 c.359 §704]
744.115 [1967
c.359 §536; 1971 c.231 §30; 1973 c.515 §3; 1977 c.174 §2; 1979 c.501 §5; 1981
c.817 §2; 1987 c.774 §138; 1987 c.916 §9; 1989 c.331 §25; 1989 c.701 §30; 1991
c.810 §9; 1993 c.265 §7; 1995 c.334 §2; repealed by 2001 c.191 §61]
744.119
[Formerly 744.205; 1991 c.810 §10; 1993 c.447 §86; 1997 c.131 §4; repealed by
2001 c.191 §61]
744.120
[Repealed by 1967 c.359 §704]
744.123
[Formerly 744.195; repealed by 2001 c.191 §61]
744.125 [1959
c.367 §1; 1967 c.359 §501; renumbered 743.666]
744.127 [1989
c.701 §33; 1991 c.810 §11; repealed by 2001 c.191 §61]
744.130
[Amended by 1955 c.226 §1; 1967 c.359 §502; renumbered 743.669]
744.135 [1967
c.359 §537; 1973 c.89 §2; repealed by 1989 c.701 §81]
744.140
[Repealed by 1967 c.359 §704]
744.145 [1967
c.359 §538; 1989 c.701 §35; repealed by 2001 c.191 §61]
744.150
[Repealed by 1967 c.359 §704]
744.155 [1967
c.359 §539; 1971 c.231 §31; 1975 c.769 §5; 1989 c.413 §11; 1989 c.701 §§34,81c;
1993 c.265 §8; repealed by 2001 c.191 §61]
744.160
[Repealed by 1967 c.359 §704]
744.165
[Formerly 739.520; 1971 c.231 §32; 1983 c.265 §1; repealed by 2001 c.191 §61]
744.170
[Repealed by 1967 c.359 §704]
744.175 [1967
c.359 §541; 1975 c.769 §6; 1989 c.692 §§1,2; 1989 c.701 §36; 2001 c.191 §24a;
renumbered 744.081 in 2001]
744.180
[Repealed by 1967 c.359 §704]
744.182 [1989
c.701 §37; 1995 c.639 §5; repealed by 2001 c.191 §61]
744.185 [1967
c.359 §542; repealed by 1989 c.701 §81]
744.190
[Repealed by 1967 c.359 §704]
744.195 [1967
c.359 §543; 1989 c.413 §12; 1989 c.701 §§32,81d; renumbered 744.123 in 1989]
744.200
[Repealed by 1967 c.359 §704]
744.205 [1967
c.359 §544; 1977 c.820 §2; 1979 c.501 §6; 1981 c.817 §3; 1983 c.76 §6; 1989
c.701 §31; renumbered 744.119 in 1989]
744.215 [1967
c.359 §545; 1989 c.413 §13; 1989 c.701 §40; renumbered 744.235 in 1989]
744.225 [1987
c.569 §2; 1989 c.701 §38; 1997 c.631 §549; 2001 c.191 §24b; renumbered 744.083
in 2001]
744.227 [1989
c.680 §2; 2001 c.191 §24c; renumbered 744.084 in 2001]
744.231 [1989
c.701 §39; repealed by 2001 c.191 §61]
744.235
[Formerly 744.215; repealed by 1993 c.265 §14]
744.240
[Formerly 744.012; renumbered 744.086 in 2001]
744.245
[Formerly 744.017; 1999 c.55 §4; renumbered 744.087 in 2001]
744.255 [1967
c.359 §546; 1969 c.336 §15; 1983 c.76 §7; 1985 c.697 §15; 1987 c.774 §141; 1989
c.701 §8; renumbered 744.013 in 1989]
744.260 [1971
c.231 §9; 1983 c.76 §8; 1985 c.697 §16; 1989 c.701 §9; renumbered 744.014 in
1989]
744.265 [1967
c.359 §547; 1983 c.76 §9; 1989 c.701 §10; renumbered 744.016 in 1989]
MANAGING GENERAL AGENTS
744.300 License and indorsement;
managing general agent described. (1) A person
shall not act as a managing general agent with respect to risks located in this
state for an authorized insurer unless the person holds a license issued under
ORS 744.062 authorizing the person to act as an insurance producer and indorsed
to authorize the person to act as a managing general agent.
(2)
A person shall not act as a managing general agent representing a domestic
insurer with respect to risks located outside this state unless the person
holds a license issued under ORS 744.062 authorizing the person to act as an
insurance producer and indorsed to authorize the person to act as a managing
general agent.
(3)
For purposes of ORS 744.300 to 744.316, a person acts as a managing general
agent when the person:
(a)
Negotiates and binds ceding reinsurance contracts on behalf of an authorized
insurer or manages all or part of the insurance business of an authorized
insurer, including the management of a separate division, department or
underwriting office, and acts as an insurance producer for the insurer, whether
the person is known as a managing general agent, manager or other similar term;
and
(b)
With or without the authority, either separately or together with affiliates,
produces, directly or indirectly, and underwrites an amount of gross direct
written premium equal to or more than five percent of the policyholder surplus
as reported in the last annual statement of the insurer in any one quarter or
year, together with either or both of the following activities:
(A)
Adjusting or paying claims in excess of an amount determined by the Director of
the Department of Consumer and Business Services.
(B)
Negotiating reinsurance on behalf of the insurer.
(4)
The provisions of ORS 744.062 governing application for amendment of a license
apply to the indorsement of the license of an
insurance producer for authority to act as a managing general agent, except
that an examination is not required for the indorsement.
(5)
The provisions of this section are subject to exemptions stated in ORS 744.301.
[1991 c.495 §2; 2001 c.191 §39; 2003 c.364 §119]
744.301 Exemptions from license
requirement. The following persons are exempt from
ORS 744.300:
(1)
An employee of an insurer, when the employee is acting as a managing general
agent for the insurer.
(2)
A United States manager of the United States branch of an alien insurer.
(3)
An underwriting manager who, pursuant to contract, manages all the insurance
operations of the insurer, is under common control with the insurer and is
subject to ORS 732.517 to 732.592, and whose compensation is not based on the
volume of premiums written.
(4)
The attorney or attorney-in-fact authorized by and acting for the subscribers
of a reciprocal insurer or interinsurance exchange
under powers of attorney. [1991 c.495 §3; 1993 c.447 §63a]
744.303 Certificate of errors and omissions
insurance; rules. (1) A managing general agent
must maintain with the Director of the Department of Consumer and Business
Services at all times a current certificate of errors and omissions insurance,
in an amount established by the director by rule, from an insurer authorized to
transact insurance in this state or from any other insurer acceptable to the
director according to standards established by rule. The insurance must cover
errors and omissions of and any violation of fiduciary responsibility by the
managing general agent or its employees, or both.
(2)
If the director determines that insurance required under this section is not
generally available at a reasonable cost, the director by rule may suspend the
requirement of insurance, but must reimpose the
requirement when the insurance once again becomes generally available. [1991
c.495 §4]
744.305
[Formerly 750.010; repealed by 1987 c.774 §154]
744.306 Contract between insurer and
managing general agent. A person acting as a managing
general agent shall not place business with an insurer unless a written
contract is in force between the parties. The following requirements apply to
such a contract:
(1)
The contract must set forth the responsibilities of each party.
(2)
The contract must specify the division of responsibility for a particular
function, when both parties share responsibility for the function.
(3)
The contract must include at least the following provisions:
(a)
That the insurer may terminate the contract for cause upon written notice to
the managing general agent, and may suspend the underwriting authority of the
managing general agent while any dispute regarding the cause for termination is
pending.
(b)
That at least monthly, the managing general agent shall report all transactions
and remit all funds due under the contract to the insurer.
(c)
That with respect to all funds collected by a managing general agent for the
account of an insurer, the managing general agent must comply with ORS 744.083
or 744.084, except that the managing general agent may retain in the account an
amount not exceeding three months’ estimated claims payments and allocated loss
adjustment expenses.
(d)
That the managing general agent shall maintain separate records of business
written by the managing general agent. Further, that the managing general agent
shall allow the insurer access to all accounts and records related to its
business, shall keep all such accounts and records in a form usable by the
insurer and shall allow the insurer to copy all such accounts and records.
(e)
That the managing general agent shall not assign the contract either in whole
or part.
(f)
Appropriate underwriting guidelines, including:
(A)
The maximum annual premium volume;
(B)
The basis of the rates to be charged;
(C)
The types of risks that may be written;
(D)
Maximum limits of liability;
(E)
Applicable exclusions;
(F)
Territorial limitations;
(G)
Policy cancellation provisions; and
(H)
The maximum policy period.
(g)
That the insurer may cancel or nonrenew any policy of
insurance, subject to applicable statutes and rules governing cancellation and
nonrenewal of insurance policies.
(h)
Provisions addressing the timely transmission of the data, when electronic
claims files exist.
(i) That if the contract provides for a sharing of interim
profits of the managing general agent and if the managing general agent has the
authority to determine the amount of the interim profits by establishing loss
reserves or controlling claim payments, or in any other manner, interim profits
shall not be paid to the managing general agent until one year after they are
earned for property or surety insurance business and five years after they are
earned on casualty business and not until the profits have been verified
pursuant to ORS 744.313.
(j)
That a managing general agent shall not do any of the following:
(A)
Bind reinsurance or retrocessions on behalf of the
insurer, except that the managing general agent may bind facultative
reinsurance contracts pursuant to obligatory facultative agreements if the
contract with the insurer contains reinsurance underwriting guidelines that
include, for both reinsurance assumed and ceded, a list of reinsurers with
which the automatic agreements are in effect, the coverage and amounts or
percentages that may be reinsured and commission schedules.
(B)
Commit the insurer to participate in insurance or reinsurance syndicates.
(C)
Appoint any insurance producer without assuring that the insurance producer is
licensed in this state to transact the type of insurance for which the
insurance producer is appointed.
(D)
Collect any payment from a reinsurer or commit the insurer to any claim
settlement with a reinsurer without prior approval of the insurer. The contract
must also provide that if prior approval is given, the managing general agent
must forward a report to the insurer promptly.
(E)
Appoint a submanaging general agent.
(k)
Provisions establishing which disputes, if any, arising under the contract
shall be decided by arbitration, mediation or other means of dispute
resolution.
(L)
If the managing general agent will calculate the loss reserves or a portion
thereof, provisions:
(A)
That the insurer is ultimately responsible for reporting the loss reserves; and
(B)
That the insurer shall annually obtain the opinion of an actuary attesting to
the adequacy of loss reserves calculated for losses incurred and outstanding on
business produced by the managing general agent, in addition to any other
required loss reserve actuarial opinion, as provided in ORS 744.313.
(4)
In addition to the requirements of subsection (3) of this section, if the
contract permits the managing general agent to settle claims on behalf of the
insurer, the contract must also include at least the following provisions:
(a)
The time requirements within which the managing general agent must report
claims to the insurer.
(b)
A requirement that the managing general agent must send a copy of the claim
file or report of claim to the insurer at its request or as soon as it becomes
known to the managing general agent that the claim:
(A)
Has the potential of exceeding an amount determined by the Director of the
Department of Consumer and Business Services or the limit set by the insurer,
whichever is less;
(B)
Involves a coverage dispute;
(C)
May exceed the claim settlement authority of the managing general agent; or
(D)
Is of a serious nature as predetermined by the insurer by written guidelines.
(c)
A provision establishing the settlement authority granted the managing general
agent for claims in general and specific guidelines for handling claims that
exceed the amount established by the director or the insurer, whichever is
less.
(d)
A provision that all claim files are the joint property of the insurer and
managing general agent, except upon an order of liquidation of the insurer, and
that in the event of such an order:
(A)
The files become the sole property of the insurer or its estate; and
(B)
The managing general agent shall have reasonable access to and the right to
copy the files on a timely basis.
(e)
A provision that the insurer may terminate for cause any settlement authority
granted to the managing general agent upon written notice by the insurer to the
managing general agent or upon the termination of the contract, and that the
insurer may suspend the settlement authority during the pendency of any dispute
regarding the cause for termination.
(5)
The contract must provide that the insurer may not allow the managing general
agent to pay or commit the insurer to pay a claim in excess of a specified
amount, net of reinsurance, without approval by the insurer. The amount shall
not exceed the amount established in ORS 744.308. [1991 c.495 §5; 2003 c.364 §120]
744.308 Limitations on authority of
insurer and managing general agent. (1) An
insurer shall not allow a managing general agent, without prior approval of the
insurer, to pay or commit the insurer to pay a claim over the amount, net of
reinsurance, specified in the contract under ORS 744.306. The amount
established in the contract shall not exceed one percent of the insurer’s
policyholder surplus as of December 31 of the last completed calendar year.
(2)
Neither an insurer nor a managing general agent may allow a subagent of the
managing general agent to serve on the board of directors of the insurer.
(3)
An insurer and a managing general agent may not jointly employ any individual. [1991
c.495 §6]
744.310
[Repealed by 1967 c.359 §704]
744.311 Books, bank accounts and records.
A managing general agent shall maintain all of its books, bank accounts and
records in a form usable by the Director of the Department of Consumer and
Business Services. The managing general agent shall allow the director access
to all of its books, bank accounts and records. [1991 c.495 §7]
744.313 Financial examination; loss
reserves; notification of appointment and termination; acts of managing general
agent attributed to insurer. (1) An
insurer shall have on file an independently performed financial examination of
each managing general agent with which it has done business, in a form
prescribed by the Director of the Department of Consumer and Business Services.
(2)
An insurer is ultimately responsible for reporting the loss reserves. If a
managing general agent calculates the loss reserves or a portion thereof, the
insurer shall annually obtain the opinion of an actuary attesting to the
adequacy of loss reserves calculated for losses incurred and outstanding on
business produced by the managing general agent. The requirement under this
subsection is in addition to any other required loss reserve actuarial opinion.
The actuary must be a member in good standing of an association of actuaries
determined by the director to have established adequate professional standards
for membership.
(3)
Periodically, but not less frequently than annually, an insurer shall conduct
an on-site review of the underwriting and claims processing operations of the
managing general agent.
(4)
Binding authority for all reinsurance contracts or participation in insurance
or reinsurance syndicates shall rest with an officer of the insurer. The
officer must not be affiliated with the managing general agent.
(5)
Not later than the 30th day after entering into a contract with a managing
general agent, and not later than the 30th day after terminating such a
contract, an insurer shall provide written notification of the appointment or
termination to the director. A notice of appointment shall include any
information required by the director.
(6)
An insurer shall review its books and records each calendar quarter to
determine if any insurance producer who previously had not produced and
underwritten sufficient gross direct written premium to meet the description of
a managing general agent in ORS 744.300 has become a managing general agent
subject to ORS 744.300 to 744.316. When an insurer determines that an insurance
producer has become a managing general agent:
(a)
The insurer shall promptly notify the insurance producer and the director of
its determination.
(b)
The insurer and insurance producer must fully comply with ORS 744.300 to
744.316 not later than the 60th day after the date of notification under
paragraph (a) of this subsection.
(7)
An insurer shall not appoint to its board of directors an officer, director,
employee, subproducer or controlling shareholder of
any of its managing general agents. This subsection does not apply to
relationships governed by ORS 732.517 to 732.592.
(8)
The acts of a managing general agent shall be regarded as the acts of the
insurer on whose behalf the managing general agent is acting. The director may
examine a managing general agent as if it were the insurer. [1991 c.495 §§8,9;
2003 c.364 §121]
744.314 Rules.
The Director of the Department of Consumer and Business Services may adopt
rules to carry out ORS 744.300 to 744.316. [1991 c.495 §10]
744.315
[Formerly 750.020; 1981 c.455 §1; repealed by 1987 c.774 §154]
744.316 Authority of director if managing
general agent violates provisions of ORS 744.300 to 744.316.
If the Director of the Department of Consumer and Business Services finds that
a managing general agent has violated any provision of ORS 744.300 to 744.316,
the director may order the managing general agent to reimburse the insurer or
the rehabilitator or liquidator of the insurer for losses incurred by the
insurer because of the violation. The director may take action under this
section in addition to or instead of any other action the director may take
under the Insurance Code. [1993 c.447 §63c]
LIFE SETTLEMENT CONTRACTS
744.318 Definitions.
As used in ORS 744.318 to 744.384, 744.991 and 744.992:
(1)
“Advertising” means any written, electronic or printed communication or any
communication by means of recorded telephone messages or transmission on radio,
television, the Internet or similar communications media, including film
strips, motion pictures and videos, published, disseminated, circulated or
placed directly before the public in this state for the purpose of creating an
interest in or inducing a person to purchase or sell, assign, devise, bequest
or transfer the death benefit or ownership of a life insurance policy or to
purchase or sell, assign, devise, bequest or transfer the death benefit or
ownership of a life insurance policy pursuant to a life settlement contract.
(2)
“Business of life settlements” means an activity involved in, but not limited
to, the offering, soliciting, negotiating, procuring, effectuating, purchasing,
investing, financing, monitoring, tracking, underwriting, selling,
transferring, assigning, pledging, hypothecating or in any other manner
acquiring an interest in a life insurance policy by means of a life settlement
contract.
(3)
“Chronically ill” means:
(a)
Being unable to perform at least two activities of daily living, such as
eating, toileting, moving around, bathing or dressing;
(b)
Requiring substantial supervision to protect the individual from threats to
health and safety due to severe cognitive impairment; or
(c)
Having a level of disability similar to that described in paragraph (a) of this
subsection as determined by the Director of the Department of Consumer and
Business Services.
(4)(a)
“Financing entity” means an underwriter, placement agent, lender, purchaser of
securities, purchaser of a policy or certificate from a life settlement
provider, credit enhancer or any other person or entity that has a direct
ownership in a policy or certificate that is the subject of a life settlement
contract, but:
(A)
Whose principal activity related to the transaction is providing funds to
effect the life settlement or purchase of one or more settled policies; and
(B)
Who has an agreement in writing with one or more licensed life settlement
providers to finance the acquisition of life settlement contracts.
(b)
“Financing entity” does not include a nonaccredited
investor or a life settlement purchaser.
(5)
“Licensee” means a life settlement provider, life settlement broker or life
settlement investment agent.
(6)
“Life insurance producer” means any person licensed in this state as a resident
or nonresident insurance producer who has received qualification or authority under
ORS 744.062 or 744.063 to transact life insurance.
(7)(a)
“Life settlement broker” means a person, including a life insurance producer,
working exclusively on behalf of an owner and for a fee, commission or other
valuable consideration, who offers or attempts to negotiate life settlement
contracts between an owner and one or more life settlement providers or one or
more life settlement brokers. Notwithstanding the manner in which the life
settlement broker is compensated, a life settlement broker is deemed to
represent only the owner, and not the life insurance producer or the life
settlement provider, and owes a fiduciary duty to the owner to act according to
the owner’s instructions and in the best interest of the owner.
(b)
“Life settlement broker” does not include an attorney, a certified public
accountant or a financial planner, accredited by a nationally recognized
accreditation agency, who is retained to represent the owner and whose
compensation is not paid directly or indirectly by the life settlement provider
or purchaser.
(8)(a)
“Life settlement contract” means a written agreement between an owner and a
life settlement provider or any affiliate of the life settlement provider
establishing the terms under which compensation or anything of value is or will
be paid, which compensation or value is less than the expected death benefits
of the policy, in return for the owner’s present or future assignment,
transfer, sale, devise or bequest of the death benefit or ownership of any
portion of the insurance policy or certificate of insurance.
(b)
“Life settlement contract” includes the transfer for compensation or value of
ownership or beneficial interest in a trust or other entity that owns a life
insurance policy or certificate of insurance if the trust or other entity was
formed for the principal purpose of acquiring one or more life insurance
contracts insuring the life of a person residing in this state.
(c)
“Life settlement contract” also includes a premium finance loan made for a life
insurance policy by a lender to an owner on, before or after the date of
issuance of the policy if:
(A)
The owner or the insured receives on the date of the premium finance loan a
guarantee of a future life settlement value of the policy; or
(B)
The owner or the insured agrees on the date of the premium finance loan to sell
the policy or any portion of its death benefit on any date following the
issuance of the policy.
(d)
“Life settlement contract” does not include:
(A)
A policy loan or accelerated death benefit made by the insurer pursuant to the
policy’s terms;
(B)
Loan proceeds that are used solely to pay:
(i) Premiums for the policy; or
(ii)
The costs of the loan, including, without limitation, interest, arrangement
fees, utilization fees and similar fees, closing costs, legal fees and
expenses, trustee fees and expenses and third party collateral provider fees
and expenses, including fees payable to letter of credit issuers;
(C)
A loan made by a bank or other licensed financial institution in which the lender
takes an interest in a life insurance policy solely to secure repayment of a
loan or, if there is a default on the loan and the policy is transferred, the
transfer of such a policy by the lender. However, neither the default itself
nor the transfer of the policy in connection with a default may occur pursuant
to an agreement or understanding with any other person for the purpose of
evading regulation under ORS 744.318 to 744.384, 744.991 and 744.992;
(D)
A premium finance loan made by a lender that does not violate the provisions of
ORS 746.405 to 746.530, if the premium finance loan is not described in
paragraph (c) of this subsection;
(E)
An agreement in which all the parties are closely related to the insured by
blood or law or have a lawful substantial economic interest in the continued
life, health and bodily safety of the person insured, or are trusts established
primarily for the benefit of such parties;
(F)
Any designation, consent or agreement by an insured who is an employee of an
employer in connection with the purchase by the employer, or trust established
by the employer, of life insurance on the life of the employee;
(G)
A legitimate business succession planning arrangement:
(i) Between one or more shareholders in a corporation or between
a corporation and one or more of its shareholders or one or more trusts
established by its shareholders;
(ii)
Between one or more partners in a partnership or between a partnership and one
or more of its partners or one or more trusts established by its partners; or
(iii)
Between one or more members in a limited liability company or between a limited
liability company and one or more of its members or one or more trusts
established by its members;
(H)
An agreement entered into by a service recipient, or a trust established by the
service recipient and a service provider, or a trust established by the service
provider, who performs significant services for the service recipient’s trade
or business; or
(I)
Any other contract, transaction or arrangement exempted from the definition of
life settlement contract by the director based on a determination that the
contract, transaction or arrangement is not of the type intended to be
regulated by ORS 744.318 to ORS 744.384, 744.991 and 744.992.
(9)
“Life settlement investment agent” means a person who is an appointed or
contracted agent of a licensed life settlement provider who solicits or
arranges the funding for the purchase of a life settlement by a life settlement
purchaser and who is acting on behalf of a life settlement provider.
(10)(a)
“Life settlement provider” means a person, other than an owner, that enters
into or effectuates a life settlement contract with an owner resident in this
state.
(b)
“Life settlement provider” does not include:
(A)
A bank, savings bank, savings and loan association, credit union or other
licensed lending institution that takes an assignment of a life insurance
policy solely as collateral for a loan;
(B)
A premium finance company making premium finance loans and exempted by the
director from the licensing requirement under ORS 746.405 to 746.530 that takes
an assignment of a life insurance policy solely as collateral for a loan;
(C)
The issuer of the life insurance policy;
(D)
An insurer certified under ORS 731.354 or accredited under ORS 731.511 that
provides stop loss coverage or financial guaranty insurance to a life
settlement provider, purchaser, financing entity, special purpose entity or
related provider trust;
(E)
An individual who enters into or effectuates no more than one agreement in a
calendar year for the transfer of life insurance policies for any value less
than the expected death benefit;
(F)
A financing entity;
(G)
A special purpose entity;
(H)
A related provider trust;
(I)
A life settlement purchaser; or
(J)
Any other person that the director determines is not the type of person
intended to be covered by the definition of “life settlement provider.”
(11)
“Life settlement purchase agreement” means a contract or agreement, entered
into by a life settlement purchaser and to which the owner is not a party, to
purchase a life insurance policy or an interest in a life insurance policy that
is entered into for the purpose of deriving an economic benefit.
(12)(a)
“Life settlement purchaser” means a person who, to derive an economic benefit:
(A)
Provides a sum of money as consideration for a life insurance policy or an
interest in the death benefits of a life insurance policy; or
(B)
Owns or acquires or is entitled to a beneficial interest in a trust that owns a
life settlement contract or is the beneficiary of a life insurance policy that
has been or will be the subject of a life settlement contract.
(b)
“Life settlement purchaser” does not include:
(A)
A licensee under ORS 744.321, 744.323 or 744.324;
(B)
An accredited investor or qualified institutional buyer as defined in Rule
501(a) or Rule 144A promulgated under the Federal Securities Act of 1933, as
amended;
(C)
A financing entity;
(D)
A special purpose entity; or
(E)
A related provider trust.
(13)(a)
“Owner” means the owner of a life insurance policy or a certificate holder
under a group policy who resides in this state and enters or seeks to enter
into a life settlement contract. For the purposes of ORS 744.318 to 744.384,
744.991 and 744.992, an owner shall not be limited to an owner of a life
insurance policy or a certificate holder under a group policy insuring the life
of an individual with a terminal or chronic illness or condition except when
specifically addressed. If there is more than one owner on a single policy and
the owners are residents of different states, the transaction shall be governed
by the law of the state in which the owner having the largest ownership
percentage resides or, if the owners hold equal ownership, the state of
residence of one owner agreed upon in writing by all the owners.
(b)
“Owner” does not include:
(A)
A licensee under ORS 744.321, 744.323 or 744.324, including a life insurance
producer acting as a life settlement broker under ORS 744.323;
(B)
A qualified institutional buyer as defined in Rule 144A promulgated under the
Federal Securities Act of 1933, as amended;
(C)
A financing entity;
(D)
A special purpose entity; or
(E)
A related provider trust.
(14)
“Policy” means an individual or group policy, group certificate, contract or
arrangement of life insurance owned by a resident of this state, regardless of
whether delivered or issued for delivery in this state.
(15)
“Related provider trust” means a trust established by a licensed life
settlement provider or a financing entity for the sole purpose of holding the
ownership or beneficial interest in purchased policies in connection with a
financing transaction.
(16)
“Settled policy” means a life insurance policy or certificate that has been
acquired by a life settlement provider pursuant to a life settlement contract.
(17)
“Special purpose entity” means a corporation, partnership, trust, limited
liability company or other similar entity formed solely to provide either
direct or indirect access to institutional capital markets:
(a)
For a financing entity or licensed life settlement provider;
(b)
In connection with a transaction in which the securities in the special purpose
entity are acquired by the owner or by qualified institutional buyers as defined
in Rule 144 promulgated under the Securities Act of 1933, as amended; or
(c)
In connection with a transaction in which the securities pay a fixed rate of
return commensurate with established asset-backed institutional capital
markets.
(18)(a)
“Stranger-originated life insurance” means a practice or a plan to initiate a
life insurance policy for the benefit of a third party investor who, at the
time of policy origination, has no insurable interest in the insured. Such
practices include but are not limited to cases in which life insurance is
purchased with resources or guarantees from or through a person or entity who,
at the time of policy inception, could not lawfully initiate the policy, and
for which, at the time of policy inception, there is an arrangement or
agreement, whether verbal or written, to directly or indirectly transfer the
ownership of the policy or the policy benefits to a third party.
(b)
Trusts that are created to give the appearance of insurable interest, and are
used to initiate policies for investors, are considered stranger-originated
life insurance arrangements.
(c)
Stranger-originated life insurance arrangements do not include those practices
set forth in subsection (8)(d) of this section.
(19)
“Terminally ill” means having an illness or sickness that can reasonably be
expected to result in death in 24 months or less. [2009 c.711 §2]
744.319 [1995
c.342 §2; repealed by 2009 c.711 §23]
744.320
[Amended by 1959 c.369 §5; repealed by 1967 c.359 §704]
744.321 Life settlement providers.
(1) A person shall not act as a life settlement provider unless the person
holds a license of life settlement provider issued by the Director of the
Department of Consumer and Business Services.
(2)
A life settlement provider may use the term “viatical
settlement provider” to describe the business transacted under the license and
may use the term “viatical settlement contract”
instead of “life settlement contract.”
(3)
A related provider trust must have a written agreement with a licensed life settlement
provider under which the licensed life settlement provider is responsible for
ensuring compliance with all statutory and regulatory requirements and under
which the trust agrees to make all records and files related to life settlement
transactions available to the director as if those records and files were
maintained directly by the licensed life settlement provider. [1995 c.342 §3;
2009 c.711 §3]
744.323 Life settlement brokers.
(1) A person shall not act as a life settlement broker unless the person holds
a license of life settlement broker issued by the Director of the Department of
Consumer and Business Services.
(2)
A life insurance producer who has been duly licensed as a resident insurance
producer with a life line of authority in this state or the producer’s home
state for at least one year and is licensed as a nonresident producer in this
state meets the licensing requirements of this section and is permitted to
operate as a life settlement broker in this state.
(3)
A life settlement broker may use the term “viatical
settlement broker” to describe the business transacted under the license and
may use the term “viatical settlement contract”
instead of “life settlement contract.” [1995 c.342 §4; 2009 c.711 §4]