Oregon Statutes - Chapter 656 - Workers' Compensation - Section 656.419 - Guaranty contracts.

(1) A guaranty contract issued by an insurer shall provide that the insurer agrees to assume, without monetary limit, the liability of the employer, arising during the period the guaranty contract is in effect, for prompt payment of all compensation for compensable injuries that may become due under this chapter to subject workers and their beneficiaries.

(2) A guaranty contract issued by a guaranty contract insurer shall be filed with the Director of the Department of Consumer and Business Services by the insurer within 30 days after workers’ compensation coverage of the employer is effective. The filing shall be in such form and manner as the director may prescribe. A guaranty contract shall contain:

(a) The name and address of the employer;

(b) A description of the occupation in which the employer is engaged or proposes to engage;

(c) The effective date of the workers’ compensation coverage;

(d) Notice that an employer has elected to provide coverage pursuant to ORS 656.039; and

(e) Such other information as the director may from time to time require.

(3) Workers’ compensation coverage is effective when the application of the subject employer for coverage together with any required fees or premium are received and accepted by an authorized representative of an insurer.

(4) If the name or address of an insured employer is changed, the insurer shall, within 30 days after the date the change is received by the insurer, file a change-of-name or change-of-address notice with the director setting forth the correct name and address of the employer.

(5) Coverage of an employer under a guaranty contract continues until canceled or terminated as provided by ORS 656.423 or 656.427. [1975 c.556 §29; 1977 c.405 §7; 1981 c.854 §28; 1987 c.237 §1; 1995 c.93 §35; 1995 c.332 §46; 2003 c.170 §3]

Note: The amendments to 656.419 by section 1, chapter 241, Oregon Laws 2007, become operative July 1, 2009. See section 31, chapter 241, Oregon Laws 2007. The text that is operative on and after July 1, 2009, is set forth for the user’s convenience.

656.419. (1) A workers’ compensation insurance policy issued by an insurer under this section shall provide that the insurer agrees to assume, without monetary limit, the liability of the employer, arising during the period the policy is in effect, for prompt payment of all compensation for compensable injuries that may become due under this chapter to subject workers and their beneficiaries.

(2)(a) The insurer issuing the workers’ compensation insurance policy shall file proof of coverage with the Director of the Department of Consumer and Business Services within 30 days after workers’ compensation coverage of the employer is effective. The filing shall be in the form and manner and shall include any information that the director may prescribe by rule.

(b) An insurer shall file the proof of coverage required under this section for each new or renewed policy issued by the insurer.

(3) Workers’ compensation coverage is effective when the application of the subject employer for coverage together with any required fees or premium are received and accepted by an authorized representative of an insurer or on the date specified in writing by the employer and the insurer.

(4) Coverage of an employer under a workers’ compensation insurance policy continues until:

(a) The expiration of the term of the policy;

(b) The coverage is canceled prior to the expiration date of the policy as provided by ORS 656.423 or 656.427;

(c) Another insurer files proof of coverage on behalf of the employer; or

(d) The employer becomes self-insured under ORS 656.430.

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Last modified: August 7, 2008