Liability of Oregon Insurance Guaranty Association when member insurer is subject to liquidation after assuming sole responsibility for insurance policy that other member issued; exception. (1) Notwithstanding any other provision of ORS 734.510 to 734.710, if an insurer assumes sole responsibility for an insurance policy that a member insurer issued and the insurer that assumes responsibility for the insurance policy is subject to liquidation, the Oregon Insurance Guaranty Association is subject under ORS 734.510 to 734.710 to a claim that arises from the insurance policy even if

(a) The insurer that is subject to liquidation assumed sole responsibility for the insurance policy under an allocation, transfer, assumption or other operation in accordance with a law of this state that provides for dividing an insurer or allocating, transferring or assuming designated insurance policies; and

(b) A court order or novation released the member insurer from any obligation under the insurance policy.

(2) The association is not subject under ORS 734.510 to 734.710 to a claim that arises from an insurance policy if an insurer that was not a member insurer issued the insurance policy and a member insurer later assumed sole responsibility for the insurance policy under a novation or an allocation, transfer or assumption in accordance with a law of this state that provides for dividing an insurer or allocating, transferring or assuming designated insurance policies. [2025 c.20 §2]