Oregon Revised Statutes Chapter 731 § 731.511 — Criteria to be met by assuming insurer in order to be accredited as reinsurer;

Criteria to be met by assuming insurer in order to be accredited as reinsurer; rules. (1) For purposes of allowing credit to a ceding domestic insurer under ORS 731.509 if the reinsurance is ceded to an assuming insurer that is accredited as a reinsurer in this state, an insurer may be accredited as a reinsurer in this state if the insurer: (a) Files and maintains with the Director of the Department of Consumer and Business Services evidence of the insurer’s submission to the jurisdiction of this state; (b) Submits to the authority of the director to examine the insurer’s books and records; (c) Is authorized or licensed to transact insurance or reinsurance in at least one state or, in the case of a United States branch of an alien assuming insurer, is entered through and authorized or licensed to transact insurance or reinsurance in at least one state; (d) Files annually with the director a copy of the insurer’s annual statement filed with the insurance department of the insurer’s state of domicile and a copy of the insurer’s most recent audited financial statement; and (e) Satisfies either of the following requirements: (A) Maintains combined capital and surplus in an amount that is not less than $20,000,000. An application for accreditation by an insurer who maintains the amount of combined capital and surplus specified in this subparagraph is approved if the application is not disapproved on or before the 90th day after the application is complete and is filed with the director. (B) Maintains combined capital and surplus in an amount less than $20,000,000. An insurer applying for accreditation that maintains the amount of combined capital and surplus specified in this subparagraph is not accredited until the director approves the application for accreditation. (2) An insurer that is accredited as a reinsurer in this state may accept reinsurance only of those risks and retain the risk of the reinsurance within such limits as the accredited reinsurer is otherwise authorized to insure directly in a state in which the accredited reinsurer is authorized or licensed to transact insurance. (3) The director may revoke the accreditation of an assuming insurer if the director determines that the assuming insurer has failed to continue to meet any of the requirements of subsection (1) of this section. (4)(a) The director shall allow credit if the reinsurance is ceded to an assuming insurer that the director certifies has: (A) Maintained a minimum amount of capital and a surplus, or the equivalent, in an amount the director specifies by rule; (B) Maintained a financial strength rating from two or more rating agencies that the director by rule deems acceptable for this purpose; (C) Agreed to submit to the jurisdiction of the state, to appoint the director as the assuming insurer’s agent for the service of process in this state and to provide security for 100 percent of the assuming insurer’s liabilities that are attributable to reinsurance that ceding insurers have ceded, if the assuming insurer resists enforcement of a United States judgment; (D) Agreed to meet applicable information filing requirements that the director specifies by rule; (E) Included a covenant in the language of any trust the assuming insurer maintains to secure the assuming insurer’s obligations under ORS 731.509 (8), and in the language of an agreement between the assuming insurer and the commissioner with principal regulatory authority over the assuming insurer, that requires the assuming insurer to fund out of the remaining surplus of the trust any deficiency in a trust account that terminates; and (F) Satisfied any other requirements that the director specifies for certification. (b) The director may accredit an association as a reinsurer, including an incorporated underwriter or individual unincorporated underwriters, if the association, the incorporated underwriter or the individual unincorporated underwriter, as appropriate, meets the requirements set forth in paragraph (a) of this subsection and, in addition: (A) Satisfies minimum capital and surplus requirements by means of the capital and surplus equivalents, net of liabilities, of the association and the association’s members, which must include a joint central fund with an amount that the director determines is adequate to satisfy any unsatisfied obligation of the association or a member of the association; (B) Does not engage, as an incorporated member of the association, in any business other than underwriting and is subject to the same level of regulation and solvency control as the association’s unincorporated members are under the association’s domiciliary regulator; and (C) Provides to the director each year, within 90 days after the association must file financial statements with the association’s domiciliary regulator, a certification from the association’s domiciliary regulator as to the solvency of each u