Oregon Revised Statutes Chapter 732 § 732.542 — Monopoly or substantial diminishment of competition; director’s order; prima

Monopoly or substantial diminishment of competition; director’s order; prima facie and substantial evidence; determination of scope and extent of market. (1) As used in this section: (a) “Highly concentrated market” means a market in which the share that the four largest insurers hold is 75 percent or more of the market. (b) “Insurer” means a company that transacts insurance or a group of companies that transact insurance and are under common management, ownership or control. (c) “Market” means the relevant product or geographical market the Director of the Department of Consumer and Business Services determines under subsection (7) of this section. (2) The director may issue an order under ORS 732.544 if an insurer fails to submit adequate information in accordance with ORS 732.539 or if prima facie or substantial evidence of the type described in subsection (3)(a) or (b) of this section exists to support the director’s determination that an acquisition may: (a) Substantially diminish competition in a line of insurance in this state; or (b) Tend to create a monopoly. (3)(a) Prima facie evidence exists to support the director’s determination that an acquisition may substantially diminish competition in a line of insurance in this state or may tend to create a monopoly if the acquisition: (A) Is subject to ORS 732.537; (B) Involves two or more insurers that compete in the same market; (C) Will take place in a market that has a significant trend toward increased concentration, as provided in subsection (4) of this section; and (D) Involves at least one insurer within a group of up to eight of the largest insurers in a market that has a significant trend toward increased concentration, as provided in subsection (4) of this section, and another insurer that is either within the same group or has a market share of two percent or more. (b) Substantial evidence exists to support the director’s determination that an acquisition may substantially diminish competition in a line of insurance in this state or may tend to create a monopoly if: (A) In a highly concentrated market the insurers involved in the acquisition hold the following shares: ______________________________________________________________________________ Insurer A                           Insurer B Four percent                     Four percent or more 10 percent                         Two percent or more 15 percent                         One percent or more ______________________________________________________________________________ (B) In a market that is not highly concentrated, the insurers involved in the acquisition hold the following shares: ______________________________________________________________________________ Insurer A                           Insurer B Five percent                      Five percent or more 10 percent                         Four percent or more 15 percent                         Three percent or more 19 percent                         One percent or more ______________________________________________________________________________ (4) Evidence of a significant trend toward increased concentration in the market exists if the aggregate market share of any grouping of as many as eight of the largest insurers in the market has increased by seven percent or more over a period of time that begins at least five years and not more than 10 years before the date of the notice described in ORS 732.539 and that ends on the date of the notice described in ORS 732.539. (5) Notwithstanding the requirement in subsection (2) of this section to find prima facie or substantial evidence before issuing an order under ORS 732.544, the director may issue the order if the director determines, on the basis of other substantial evidence, that the acquisition may substantially diminish competition in a line of insurance in this state or may tend to create a monopoly. In making a determination under this subsection, the director may consider: (a) The market shares of the insurers involved in the acquisition; (b) Volatility in the relative market shares among the largest insurers in the market; (c) The number of competitors in the market; (d) The concentration of the market and any trend toward increased concentration; and (e) The ease with which an insurer may enter or exit the market. (6) The director has the burden of showing prima facie evidence for the director’s determination that an acquisition may substantially diminish competition in a line of insurance in this state or may tend to create a monopoly. A person may rebut the director’s showing or determination under subsection (2), (3) or (5) of this section by providing substantial evidence to the contrary. (7) In determining the scope and extent of the market for the purpose of determining whether an acquisition may substantially diminish competition in a line of insurance in this state or may tend to create a mono