Or. Admin. R. 410-141-5075 - FINANCIAL SOLVENCY REGULATION: Disallowance of Certain Reinsurance Transactions
Current through Register Vol. 60, No. 12, December 1, 2021
(1)
The Authority shall disallow as an asset or as a credit against liabilities any
reinsurance found by the Authority after a hearing thereon to have been
arranged for the purpose principally of deception as to the ceding CCO's
financial condition as of the date of any financial statement of the CCO.
Without limiting the general purport of the foregoing provision, reinsurance of
any substantial part of the CCO's outstanding risks placed within four months
prior to the date of any such financial statement and canceled in fact within
eight months after the date of such statement, or reinsurance under which the
reinsurer bears no substantial insurance risk or substantial risk of net loss
to itself, shall prima facie be deemed to have been arranged for the principal
purpose of deception.
(2) The
Authority shall disallow as an asset any deposit, funds or other assets of the
CCO found by the Authority after a hearing thereon:
(a) Not to be the property of the
CCO;
(b) Not freely subject to
withdrawal or liquidation by the CCO at any time for the payment or discharge
of claims or other obligations arising under its Member Contracts; or
(c) To result from arrangements made
principally for the purpose of deception as to the CCO's financial condition as
of the date of any financial statement of the CCO.
Notes
Statutory/Other Authority: ORS 413.042, 414.615, 414.625, 414.635 & 414.651
Statutes/Other Implemented: ORS 414.610 - 414.685
The following state regulations pages link to this page.
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.