(1) If an employer defaults in payment of compensation or other payments due to the Director of the Department of Consumer and Business Services under this chapter, the director may, on notice to the employer and any insurer providing a guaranty contract or surety bond to such employer, use money or interest and dividends on securities, sell securities or institute legal proceedings on any surety bond or guaranty contract deposited or filed with the director to the extent necessary to make such payments.
(2) Prior to any default by the employer, the employer is entitled to all interest and dividends on securities on deposit and to exercise all voting rights, stock options and other similar incidents of ownership of the securities.
(3) If for any reason the certification of a self-insured employer is canceled or terminated, or the coverage of a carrier-insured employer is canceled or terminated, the security deposited or the guaranty contract filed with the director shall remain on deposit or in effect, as the case may be, for a period of at least 62 months after the employer ceases to be a self-insured or a carrier-insured employer. The security or contract shall be maintained in such amount as is necessary to secure the outstanding and contingent liability arising from the accidental injuries secured by such security or contract, and to assure the payment of claims for aggravation and claims under ORS 656.278 based on such accidental injuries. At the expiration of the 62 months’ period, or such other period as the director may consider proper, the director may accept in lieu of any such security or contract a policy of paid-up insurance in a form approved by the director. [1975 c.556 §36; 1981 c.854 §31; 1987 c.373 §32]
Note: The amendments to 656.443 by section 14, 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.
656.443. (1) If an employer defaults in payment of compensation or other payments due to the Director of the Department of Consumer and Business Services under this chapter, the director may, on notice to the employer and any insurer providing workers’ compensation insurance coverage or a surety bond to such employer, use money or interest and dividends on securities, sell securities or institute legal proceedings on any surety bond or insurance policy for which a notice of coverage has been filed with the director to the extent necessary to make such payments.
(2) Prior to any default by the employer, the employer is entitled to all interest and dividends on securities on deposit and to exercise all voting rights, stock options and other similar incidents of ownership of the securities.
(3) If for any reason the certification of a self-insured employer is canceled or terminated, the security deposited with the director shall remain on deposit or in effect, as the case may be, for a period of at least 62 months after the employer ceases to be a self-insured employer. The security shall be maintained in an amount necessary to secure the outstanding and contingent liability arising from the accidental injuries secured by the security, and to assure the payment of claims for aggravation and claims arising under ORS 656.278 based on those accidental injuries. At the expiration of the 62-month period, or of another period the director may consider proper, the director may accept in lieu of the security deposited with the director a policy of paid-up insurance in a form approved by the director.
Section: Previous 656.429 656.430 656.431 656.432 656.434 656.440 656.442 656.443 656.444 656.445 656.446 656.447 656.451 656.452 656.454 NextLast modified: August 7, 2008