Or. Admin. Code § 410-141-5170 - CAPITALIZATION: Capital and Surplus
(1)
CCO shall possess and thereafter maintain capital or surplus or any combination
thereof equal to no less than $2.5 million.
(2) Notwithstanding a CCO's compliance with
subsection (1) a CCO shall at all times also comply with the risk-based capital
standards set forth at OAR
410-141-5295 to 5320.
(3) For the protection of the public, the
Authority may require a CCO to possess and maintain capital or surplus, or any
combination thereof, in excess of the amounts otherwise required under this
section, owing to the type, volume and nature of business transacted by the
CCO, if the Authority determines under OAR
410-141-5175 that the greater
amount is necessary for maintaining the CCO's solvency in accordance with OAR
410-141-5195 et seq For the
purpose of determining the reasonableness and adequacy of a CCO's capital and
surplus, the Authority may consider the net effect of factors bearing on the
financial condition of the CCO including but not limited to:
(a) The size of the CCO, as measured by its
assets, capital and surplus, reserves, capitated revenue and other appropriate
criteria.
(b) The number of Members
covered by the CCO.
(c) The extent
of the geographical dispersion of the Members covered by the CCO.
(d) The nature and extent of the reinsurance
program of the CCO.
(e) The
quality, diversification and liquidity of the investment portfolio of the
CCO.
(f) The recent past and
projected future trend in the size of the investment portfolio of the
CCO.
(g) The combined capital and
surplus maintained by comparable CCOs.
(h) The adequacy of the reserves of the
CCO.
(i) The quality and liquidity
of investments in affiliates. The Authority may treat any such investment as a
disallowed asset for purposes of determining the adequacy of combined capital
and surplus whenever in the judgment of the Authority the investment so
warrants.
(j) The quality of the
earnings of the CCO and the extent to which the reported earnings include
extraordinary items.
(4)
In comparing the capital and surplus maintained by other CCOs, the Authority
shall consider the extent to which each of such factors varies from CCO to CCO.
In determining the quality and liquidity of investments in subsidiaries, the
Authority shall consider the individual subsidiary and may discount or disallow
its valuation to the extent that the individual investments so
warrant.
Notes
Statutory/Other Authority: ORS 413.042, 414.572, 414.591 & 414.605
Statutes/Other Implemented: ORS 414.570-414.686 & 415.001-415.430
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.