Chapter 410-141

410-141-5110 ASSET VALUATION AND PERMITTED INVESTMENTS: Investment in Mortgage Loans (1) Funds of a CCO may be invested in: (a) Loans secured by first liens upon improved, unencumbered real property (other than leaseholds) in the manner and subject to the same terms and condition…

410-141-5115 ASSET VALUATION AND PERMITTED INVESTMENTS: Investment in Real Property (1) Except as otherwise provided in OAR 410-141-5105 and OAR 410-141-5110, a CCO may invest in real property only if used for the purposes or acquired in the manner and within the limits as follow…

410-141-5120 ASSET VALUATION AND PERMITTED INVESTMENTS: Investment in Corporate Stocks (1) Funds of a CCO may be invested in stocks (including trust certificates) of solvent corporations organized and carrying on a business under the laws of a sovereign as follows: (a) Preferred …

410-141-5125 ASSET VALUATION AND PERMITTED INVESTMENTS: Loans; Security; Limitations (1) Funds of a CCO may be invested in loans secured by pledges of obligations and stocks eligible for investment under these rules. As of the date the loan is made, it shall not exceed in amount …

410-141-5130 ASSET VALUATION AND PERMITTED INVESTMENTS: Investments; Certain Obligations, Property, Loans and Other Specified Items Funds of a CCO may be invested in the following: (1) Obligations secured by a mortgage or deed of trust payment of which is guaranteed by a policy o…

410-141-5135 ASSET VALUATION AND PERMITTED INVESTMENTS: Personal Property; Protection of Investment Property; Custom (1) A CCO may acquire and retain personal property received as a dividend, gift or devise, or pursuant to a lawful plan of merger, consolidation or reorganization …

410-141-5140 ASSET VALUATION AND PERMITTED INVESTMENTS: “Prudent Investor” Standard (1) Funds of a CCO may be invested in a manner not expressly prohibited under OAR 410-141-5145 and OAR 410-141-5165 provided such investments are made in the exercise of the judgment and care unde…

410-141-5145 ASSET VALUATION AND PERMITTED INVESTMENTS: Prohibited Conduct by Directors, Trustees, Officers, Agents or Employees (1) Except in the case of the issuance or sale of the CCO's securities, as approved by a majority of the disinterested members of the CCO’s Board, or f…

410-141-5150 ASSET VALUATION AND PERMITTED INVESTMENTS: Investment of Funds in Obligations That Are Not Investment Quality; Percentage of Assets (1) A CCO may acquire or hold obligations that are not investment grade only as provided in this section. (2) For purposes of this sect…

410-141-5155 ASSET VALUATION AND PERMITTED INVESTMENTS: Approval by Board (1) The investment policy shall be approved by the CCO’s Board or a committee thereof charged with the duty of investing the funds of the CCO. (2) Deposits shall be made in banks or banking institutions app…

410-141-5160 ASSET VALUATION AND PERMITTED INVESTMENTS: Record of Investments As to each investment, a CCO shall make a written record in permanent form, signed by a person authorized by the CCO’s Board or by a committee thereof charged with the duty of investing the funds. The r…

410-141-5165 ASSET VALUATION AND PERMITTED INVESTMENTS: Prohibited Investments (1) A CCO shall not make investments: (a) Which at the time of purchase or acquisition are not interest-bearing or dividend or income-paying, or are in default in any respect; or (b) From which the CCO…

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 th…

410-141-5175 CAPITALIZATION: Impaired Capital and Surplus (1) If the Authority determines in accordance with OAR 410-141-5195 to 410-141-5220 that a CCO’s reserves, however calculated or estimated, are inadequate, the Authority may require the CCO to maintain reserves in such add…

410-141-5180 CAPITALIZATION: Dividend and Distribution Restrictions (1) Unless prior written approval of the Authority is first obtained pursuant to (2), a CCO shall not: (a) Make any distribution of assets by dividend or other distribution to shareholders, equity members, parent…

410-141-5185 CAPITALIZATION: Restricted Reserve Account (1) A CCO shall establish a Restricted Reserve Account and maintain sufficient Restricted Reserve Funds in the Restricted Reserve Account to meet the Authority’s Primary Reserve and Secondary Reserve requirements. Restricted…

410-141-5186 CAPITALIZATION: Restricted Reserve Account—Permitted Investments in Obligations with Political Subdivisions; Public Supported Housing (1) With prior written approval from the Authority, a CCO may invest up to twenty-five (25) percent of its Primary Reserve and Second…

410-141-5190 CAPITALIZATION: Surplus Notes (1) With the prior approval of the Authority, a CCO may issue one or more surplus notes in order to secure funding needed to comply with minimum capital and surplus requirements and/or minimum risk-based capital requirements under these …

410-141-5195 CAPITALIZATION: Risk-based Capital (RBC) Definitions As used in OAR 410-141-5195 to 410-141-5220: (1) "Authorized Control Level RBC" means the number determined under the risk-based capital formula in accordance with the RBC Instructions. (2) "Company Action Level RB…

410-141-5200 CAPITALIZATION: RBC Reports (1) On or before April 30 of each year, a CCO shall prepare and submit to the Authority a report of its Total Adjusted Capital and its RBC Levels as of the end of the calendar year immediately preceding, in a form and containing such infor…

410-141-5205 CAPITALIZATION: Company Action Level Event (1) "Company Action Level Event" means any of the following events: (a) The filing of an RBC Report by a CCO that indicates that the CCO’s Total Adjusted Capital is greater than or equal to its Regulatory Action Level RBC bu…

410-141-5210 CAPITALIZATION: Regulatory Action Level Event (1) "Regulatory Action Level Event" means, with respect to a CCO, any of the following events: (a) The filing of an RBC Report by the CCO that indicates that the CCO's Total Adjusted Capital is greater than or equal to it…

410-141-5215 CAPITALIZATION: Authorized Control Level Event (1) "Authorized Control Level Event" means any of the following events: (a) The filing of an RBC Report by the CCO that indicates that the CCO's Total Adjusted Capital is greater than or equal to its Mandatory Control Le…

410-141-5220 CAPITALIZATION: Mandatory Control Level Event (1) "Mandatory Control Level Event" means any of the following events: (a) The filing of an RBC Report that indicates that the CCO's Total Adjusted Capital is less than its Mandatory Control Level RBC. The CCO shall provi…

410-141-5225 REPORTING AND APPROVAL OF CERTAIN TRANSACTIONS: Extraordinary Dividends and Other Distributions (1) Requests for approval of extraordinary dividends or any other extraordinary distribution to shareholders shall include the following: (a) The amount of the proposed di…

410-141-5230 REPORTING AND APPROVAL OF CERTAIN TRANSACTIONS: Reports of Material Acquisitions And Dispositions Of Assets, and Changes to Ceded Reinsurance Agreements; Assumption Reinsurance (1) Every CCO shall file a report with the Authority disclosing material acquisitions and …

410-141-5235 REPORTING AND APPROVAL OF CERTAIN TRANSACTIONS: Reports of Material Materiality and Reporting Standards for Asset Acquisitions and Dispositions (1) No acquisitions or dispositions of assets need be reported pursuant to OAR 410-141-5230 if the acquisition or dispositi…

410-141-5240 REPORTING AND APPROVAL OF CERTAIN TRANSACTIONS: Materiality and Reporting Standards for Changes in Ceded Reinsurance Agreements (1) No nonrenewals, cancellations or revisions of ceded reinsurance agreements need be reported pursuant to OAR 410-141-5230 if the nonrene…

410-141-5245 EXAMINATIONS: CCO Production of Books and Records (1) The Authority may require a CCO to produce books, records, accounts, papers, documents and computer and other recordings in the possession, custody or control of the CCO or the CCO’s affiliates that the Authority …

410-141-5250 EXAMINATIONS: Authority Examinations of CCOs (1) The Authority shall examine every CCO, including an audit of the financial affairs of a CCO, as often as the Authority determines an examination to be necessary or otherwise appropriate under the circumstances. Without…

410-141-5255 CCO ACQUISITIONS AND MERGERS: Purpose; Definitions (1) The purpose of OAR 410-141-5255 to OAR 410-141-5280 is that of regulating the control or ownership of a CCO or of a CCO holding company system, in order to promote the public interest including the interests of C…

410-141-5260 CCO ACQUISITIONS AND MERGERS: Activities Prohibited Unless Certain Provisions Satisfied (1) Unless a person first satisfies the provisions of OAR 410-141-5265 to OAR 410-141-5280, the person may not engage in any of the following activities: (a) A person other than t…

410-141-5265 CCO ACQUISITIONS AND MERGERS: Procedure For Acquiring Controlling Interest (1) An acquiring party shall: (a) File a complete Form A, as described in OAR 410-141-5270, with the Authority for approval. If more than one acquiring party is required to file a Form A under…

410-141-5270 CCO ACQUISITIONS AND MERGERS: Information to Be Included in Form A When Form A is required to be filed with the Authority pursuant to OAR 410-141-5265, the Form A shall include the following information: (1) If any acquiring party required to file Form A is an indivi…

410-141-5275 CCO ACQUISITIONS AND MERGERS: Hearing, Request, Notice (1) Contested case hearings shall be conducted pursuant to ORS 183.411 through ORS 183.497 and the Attorney General's Uniform and Model Rules of Procedure for the Office of Administrative Hearings, OAR 137-003-05…

410-141-5278 CCO ACQUISITIONS AND MERGERS: Confidentiality (1) The Authority shall maintain all information and materials filed by an applicant in connection with a material change transaction under review by the Health Care Market Oversight Program pursuant to the confidentialit…

410-141-5280 CCO ACQUISITIONS AND MERGERS: Determination Concerning Proposed Activity, Time For Decision, Grounds For Refusal (1) Prior to approving or disapproving the proposed activity, the Authority shall engage the public, Oregon's Medicaid Advisory Committee, and the Communi…

410-141-5283 CCO ACQUISITIONS AND MERGERS: Compliance with Conditions (1) Following approval of a Form A, the Authority may verify compliance with any conditions that the Authority included in its approval of the transaction and issue such additional orders, following notice and …

410-141-5285 CCO HOLDING COMPANY REGULATION: Definitions Unless the context otherwise requires, as used in OAR 410-141-5225 to OAR 410-141-5355: (1) “Affiliate” means a person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under…

410-141-5290 CCO HOLDING COMPANY REGULATION: Members of Holding Company Systems; Registration Requirements (1) Every CCO that is a member of a CCO holding company system shall register with the Authority as provided in this section. (2) A CCO that is subject to registration under…

410-141-5295 CCO HOLDING COMPANY REGULATION: Form and Contents of Registration Statement (1) Every CCO that is subject to the registration requirements of OAR 410-141-5290 shall file with the Authority a completed Form B. (2) Form B, must list, describe, summarize or include, as …

410-141-5300 CCO HOLDING COMPANY REGULATION: Registration Statement Filing (1) A CCO required to file an annual registration statement pursuant to OAR 410-141-5290 shall: (a) Furnish the required information on Form B. Form B is set forth on the website of the Authority at https:…

410-141-5305 CCO HOLDING COMPANY REGULATION: Information Required to Be Disclosed (1) Unless the Authority by rule or order provides otherwise, sales, purchases, exchanges, loans or extensions of credit, investments or guarantees involving one-half of one percent or less of a CCO…

410-141-5310 CCO HOLDING COMPANY REGULATION: Presumption of Control; Rebuttal (1) The Authority shall presume that a person controls another person if the person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, 10 percent or mo…

410-141-5315 CCO HOLDING COMPANY REGULATION: Disclaimer of Affiliation (1) Any person, CCO or member of a CCO holding company system may file with the Authority a disclaimer of affiliation with any authorized CCO. The disclaimer must contain the following information: (a) The num…

410-141-5318 CCO Holding Company Regulation: Group Capital Calculation An insurance holding company system subject to the group capital calculation defined in Chapter 836 that includes a CCO, must include their CCO in their group capital calculation. Statutory/Other Authority: OR…

410-141-5320 CCO HOLDING COMPANY REGULATION: Transactions Within Holding Company (1) A transaction within a CCO holding company system, to which a CCO subject to registration is a party, is subject to the following standards: (a) The terms must be fair and reasonable. (b) Charges…

410-141-5323 CCO HOLDING COMPANY REGULATION: Transaction Types Within Holding Company for Disclosure (1) A CCO required to give notice of a proposed transaction pursuant OAR 410-141-5320 shall furnish the required information on Form D. Form D is set forth on the website of the A…

410-141-5325 CCO HOLDING COMPANY REGULATION: Director and Officer Liability; Effect of Control of CCO Subject to Registration; Board of Directors (1) A person’s control of a CCO that is subject to registration does not relieve the officers and directors of the CCO of any obligati…

410-141-5330 CCO HOLDING COMPANY REGULATION: Annual Enterprise Risk Report (1) Every CCO subject to registration shall file an enterprise risk report each year. The enterprise risk report must identify, to the best of the CCO’s knowledge and belief, the material risks within the …