Or. Admin. R. 410-141-5010 - FINANCIAL SOLVENCY REGULATION: Procedure for General Financial Reporting and for Determining Financial Solvency Matters

Current through Register Vol. 60, No. 12, December 1, 2021

(1) The Authority shall determine financial solvency of a CCO in accordance with OAR 410-141-5010 through OAR 410-141-5469, and the CCO contract. In implementing OAR 410-141-5010 to OAR 410-141-5469, the Authority may enter into a cooperative agreement with the DCBS to carry out these provisions. For purposes of obtaining necessary information to determine financial solvency, any reference to the Authority in these rules shall include DCBS when DCBS is working cooperatively with the Authority to implement these provisions. However, only the Authority may take enforcement action or other regulatory sanctions related to the implementation of OAR 410-141-5010 to OAR 410-141-5380 and the CCO contract.

(2) Where these rules specify that the Authority may request or receive information or provide a response or take any action, DCBS may act on behalf of the Authority. A response to DCBS under these rules shall be considered a response to the Authority on the matter, consistent with the objective of providing a single point of reporting by CCOs.

(3) The Authority shall collaborate with DCBS to review CCO financial reports and evaluate financial solvency. CCOs are not required to file financial reports with both the Authority and DCBS except as may otherwise be provided in the CCO contract.

(4) Applicants for a CCO contract shall submit all required information to the Authority as part of the application process, and the Authority shall transmit certain information to DCBS for its review. In making its determination about the qualifications of the applicant, the Authority shall consult with DCBS about the financial materials and reports submitted with the application.

(5) For purposes of these financial reporting and solvency rules, DCBS is authorized to make recommendations to the Authority and to act in conjunction with the Authority in accordance with these rules. If quarterly reports or other evidence suggest that a CCO's financial solvency is in jeopardy, the Authority shall act as necessary to protect the public interest.

(6) The Authority may address inquiries to a CCO or its officers in relation to the activities or condition of the CCO or any other matter connected with its transactions. All such persons shall promptly and truthfully reply to the inquiries using the form of communication requested by the Authority. The reply shall be timely, accurate, and complete and, if the Authority requires, verified by an officer of the CCO.

(7) CCOs may be required to use specific required reporting forms or items in order to supply information related to financial responsibility, financial solvency, and financial management. The Authority or DCBS, as applicable, shall provide supplemental instructions about the use of these forms.

(8) The Authority may require a CCO to produce books, records, accounts, papers, documents, and computer and other electronic or digital records in the possession, custody or control of the CCO or the CCO's affiliates that are needed to determine the CCO's financial condition or compliance with Applicable Law, or which are needed to determine the CCO's compliance with the CCO's contracts and agreements with the Authority.

(9) The standards established in OAR 410-141-5005 through OAR 410-141-5380 are intended to be consistent with and may utilize procedures and standards common to CCOs and to DCBS in its administration of financial reporting and solvency requirements. Any reference in these rules to the Insurance Code or to rules or regulations adopted by DCBS under the Insurance Code shall not make a CCO subject to regulation as an insurer, but instead shall be construed to adopt and incorporate such rules by reference as Authority rules applicable to CCOs.

Notes

Or. Admin. R. 410-141-5010

DMAP 58-2019, adopt filed 12/18/2019, effective 1/1/2020

Statutory/Other Authority: ORS 413.042, 414.615, 414.625, 414.635 & 414.651

Statutes/Other Implemented: ORS 414.610 - 414.685