(1) The Director of the Department of Consumer and Business Services shall establish standards by rule for determining whether the continued operation of an authorized insurer may be hazardous to the policyholders or to the insurance-buying public generally, for the purpose of carrying out ORS chapter 734 and other provisions of the Insurance Code that authorize the director to take action against such an insurer. If the director makes such a determination, the director may order the insurer to take one or more of the following actions:
(a) Reduce the total amount of present and potential liability for policy benefits by reinsurance.
(b) Reduce, suspend or limit the volume of business being accepted or renewed.
(c) Reduce general insurance and commission expenses by methods specified by the director.
(d) Increase the capital and surplus of the insurer.
(e) Suspend or limit the declaration and payment of dividends by the insurer to its stockholders or to its policyholders.
(f) Limit or withdraw from certain investments or discontinue certain investment practices to the extent the director determines such action to be necessary.
(2) The director may exercise authority under subsection (1) of this section in addition to or instead of any other authority that the director may exercise under the Insurance Code.
(3) The director may issue an order under this section with or without a hearing. An insurer subject to an order issued without a hearing may file a written request for a hearing to review the order. Such a request shall not stay the effect of the order. The hearing shall be held within 30 days after the filing of the request. The director shall complete the review within 30 days after the record for the hearing is closed, and shall discontinue the action taken under subsection (1) of this section if the director determines that none of the conditions giving rise to the action exists. [1993 c.447 §14]
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