In addition to other rulemaking authority of the Director of the Department of Consumer and Business Services, the director may make rules:
(1) Stating the necessary attributes that a construction project of a project sponsor and the participants in the project must have in order to qualify for the grouping permitted under ORS 737.602. The rules may include but are not limited to matters regarding an appropriate trust agreement for special deposit and adjustment of the construction project value according to an appropriate cost index; and
(2) Establishing a process for a state agency or local contract review board created under ORS 279A.060 to evaluate the purchase by a public body of insurance authorized by ORS 737.602, or any agreements related thereto. [1995 c.169 §3; 2003 c.794 §327]
Note: 737.604 was added to and made a part of the Insurance Code by legislative action but was not added to ORS chapter 737 or any series therein. See Preface to Oregon Revised Statutes for further explanation.
AUTHORIZATION FOR INSURANCE FOR COMBINED SEWER OVERFLOW PROJECTS
Note: Sections 1 and 2, chapter 336, Oregon Laws 1995, provide:
Sec. 1. (1) As used in this section, “project” means the group of projects that make up the combined sewer overflow program.
(2) Notwithstanding ORS 656.126, 737.600 or 746.160 or section 143 of this 2003 Act [279C.530], an insurer approved to transact insurance in the State of Oregon, including a guaranty contract insurer as defined in ORS 656.005, may issue with the prior approval of the Director of the Department of Consumer and Business Services a policy of insurance or a guaranty contract covering and insuring the City of Portland, the prime contractor under contract for the construction of the project, any contractors or subcontractors with whom the prime contractor may enter into contracts for the purpose of fulfilling its contractual obligations in construction of the project and any other contractors engaged by the City of Portland to provide architectural or other design services, engineering services, construction management service or other consulting services relating to the design and construction of the projects or any combination thereof.
(3) The director, upon application of any insurer, shall approve the issuance of a policy of insurance or a guaranty contract to any grouping of the persons described in subsection (2) of this section if:
(a) The grouping was formed for the purpose of performing a contract or a series of related contracts for the design and construction of the project;
(b) The combined total estimated cost of the project exceeds $100 million;
(c) The City of Portland can reasonably demonstrate that the formation and operation of the grouping will substantially improve accident prevention and claims handling to the benefit of the City of Portland and the contractors and workers employed in the project;
(d) The established rating and auditing standards required by authorized advisory organizations and rating organizations are adhered to;
(e) Adequate protection is guaranteed by the insurer for the grouping to any other insurance producer that demonstrates that without such protection the insurance producer will suffer losses which will constitute a threat to the continuation of the insurance business of the producer;
(f) The City of Portland can reasonably demonstrate that a substantial savings will result from the formation of the grouping;
(g) The insurer for the grouping will guarantee insurance coverage of the classes of insurance issued to the grouping to any contractor who, because of participation in the group, has been unable to maintain the contractor’s normal coverage. The insurer’s obligation under this paragraph shall continue 12 months after substantial completion of the contractor’s work on the project;
(h) Monoline workers’ compensation insurers domiciled in the State of Oregon had the opportunity to propose a policy of insurance or a guaranty contract covering persons referred to in subsection (2) of this section; and
(i) The insurer places with the Department of Consumer and Business Services a special deposit of $25,000 per $100 million of construction project value per project phase, or an amount prescribed by rule of the director, whichever is greater. [1995 c.336 §1; 1999 c.196 §11; 2003 c.364 §99; 2003 c.794 §325]
Sec. 2. Section 1 of this Act is repealed July 1, 2015. [1995 c.336 §2]
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Section: Previous 737.515 737.520 737.525 737.526 737.530 737.535 737.540 737.545 737.547 737.550 737.555 737.560 737.600 737.602 737.604Last modified: August 7, 2008