Oregon Statutes - Chapter 732 - Organization and Corporate Procedures of Domestic Insurers; Regulation of Insurers Generally

732.005 Application of private corporation law; definitions.
(1) Except where inconsistent with the express provisions of the Insurance Code, ORS chapter 60, shall, to the extent applicable, govern the powers, duties and...
732.010 [Repealed by 1967 c.359 §704]
732.015 Permit to organize insurer required.
No person shall organize or solicit or receive any money for the organization of a domestic insurer without a subsisting permit to organize an insurer...
732.020 [Repealed by 1967 c.359 §704]
732.025 Application for permit to organize stock insurer; rules.
Any person or persons desiring to organize a domestic stock insurer shall, as prospective incorporators, first file an application with the Director of the Department...
732.030 [Amended by 1967 c.359 §661; renumbered 751.015]
732.035 Application for permit to organize insurer without capital stock.
Any one or more persons desiring to organize a domestic insurer without capital stock shall, as prospective organizers, first file an application with the Director...
732.040 [Amended by 1967 c.359 §662; renumbered 751.025]
732.045 Investigation of applications to organize insurers.
Upon receipt of an application for a permit to organize an insurer, the Director of the Department of Consumer and Business Services shall make such...
732.050 [Amended by 1967 c.359 §665; renumbered 751.055]
732.055 Approval or disapproval of application for permit.
(1) Within 90 days after the filing of the application for a permit to organize an insurer, the Director of the Department of Consumer and...
732.060 [Amended by 1961 c.178 §1; 1967 c.359 §666; renumbered 751.065]
732.065 Reporting of changes in information in application.
Any changes in the information furnished in the application for a permit to organize an insurer shall be reported immediately to the Director of the...
732.070 [Repealed by 1967 c.359 §704]
732.075 Revoking or suspending permit to organize insurer.
After notice to the applicant stating the grounds therefor, the Director of the Department of Consumer and Business Services may revoke or suspend a permit...
732.080 [Repealed by 1967 c.359 §704]
732.085 Incorporators.
One or more natural persons of the age of 21 years or older or one or more financially responsible corporations may act as incorporators of...
732.090 [Repealed by 1967 c.359 §704]
732.095 Articles of incorporation.
(1) To the extent not otherwise inconsistent with the Insurance Code, the articles of incorporation of a domestic insurer shall conform to ORS 60.047 and,...
732.100 [Amended by 1967 c.359 §667; renumbered 751.075]
732.105 Filing articles of incorporation and surety bond, letter of credit or deposit.
The incorporators shall file with the Director of the Department of Consumer and Business Services within six months of the issuance of the organization permit...
732.110 [Amended by 1967 c.359 §668; renumbered 751.085]
732.115 Approval of articles, documents and bond, letter of credit or deposit; certificate of incorporation.
(1) If the Director of the Department of Consumer and Business Services finds that the articles of incorporation and the bond, letter of credit or...
732.120 [Amended by 1967 c.359 §669; renumbered 751.095]
732.125 Registration of securities subsequent to issuance of organization permit and certificate of incorporation.
If the proposed domestic insurer is to issue securities, it shall comply with the applicable provisions of ORS 59.005 to 59.451, 59.710 to 59.830, 59.991...
732.130 [Amended by 1967 c.359 §670; renumbered 751.105]
732.135 Soliciting subscriptions and applications.
No person shall solicit subscriptions for the capital stock of, or, in the case of an insurer without capital stock, applications for insurance in, any...
732.140 [Amended by 1967 c.359 §671; renumbered 751.115]
732.145 Stipulations required in subscriptions and applications; disposition of subscribed funds.
(1) Every subscription to the capital stock of an insurer in the process of organization shall contain a stipulation that no sum shall be used...
732.150 [Amended by 1967 c.359 §672; renumbered 751.125]
732.155 Organization to be completed within two years; policies to be issued within one year of certification.
(1) If the Director of the Department of Consumer and Business Services finds that any domestic insurer has not completed its organization and qualified for...
732.160 [Amended by 1967 c.359 §673; renumbered 751.135]
732.165 Liability of directors and incorporators.
The directors, incorporators, and organizers of any insurer organized under the Insurance Code and those entitled to participation in the profits of such insurer shall...
732.175 Liability for acting as corporate insurer without authority.
Any person who assumes to act as a corporate insurer without a permit to organize and without the issuance of a certificate of incorporation by...
732.205 General powers of insurers.
Except as otherwise provided in the Insurance Code or the articles of incorporation of an insurer, a domestic insurer shall have: (1) The general and...
732.210 Assertion of lack of capacity or power.
The provision of ORS 60.084 shall not affect the right of any policyholder of a domestic insurer or the Director of the Department of Consumer...
732.215 Management contracts prohibited.
No domestic insurer shall make any contract whereby any person is granted or is to enjoy in fact the management of the insurer to the...
732.220 Exclusive agency contracts.
(1) No domestic insurer shall make any contract whereby any person is granted or is to enjoy in fact the controlling or preemptive right to...
732.225 Impairment of required capitalization prohibited; rules.
No domestic insurer shall reduce its combined capital and surplus by partial distribution of its assets, by payment in the form of a dividend to...
732.230 Order to cure impairment; confidentiality of order.
(1) Whenever the Director of the Department of Consumer and Business Services determines from any showing or statement made to the director or from any...
732.235 Voluntary dissolution of insurer.
(1) No insurer may be dissolved voluntarily until the Director of the Department of Consumer and Business Services has approved a plan for liquidation of...
732.240 Trusts of life insurance proceeds.
(1) Any domestic insurer may hold in trust the proceeds of any life insurance policy issued by it. Such a trust shall be upon such...
732.245 Home office; records, assets; unlawful removal; rules.
(1) Every domestic insurer shall have and maintain its principal place of business and home office in this state, and shall keep therein accurate and...
732.250 Continuity of management in event of national emergency.
(1) The specific purpose of this section is to facilitate the continued operation of all domestic insurers in the event a national emergency makes it...
732.305 Board of directors; qualifications.
A domestic insurer may not have fewer than five directors. A director need not be a shareholder or member of the insurer unless the articles...
732.310 [1967 c.359 §175; repealed by 1987 c.846 §19]
732.315 [Formerly 738.200; repealed by 1983 c.24 §1]
732.320 Supporting documents for expenditures.
No domestic insurer shall make any disbursement of $100 or more unless the sum is evidenced by: (1) A voucher signed by or on behalf...
732.325 Certain transactions and compensation between insurers and directors, trustees, officers, agents or employees prohibited; other prohibited conduct.
(1) Except as set forth in a statement of acquisition described in ORS 732.523 and, in the case of the issuance or sale of the...
732.405 Authorized shares.
No domestic insurer shall issue or have outstanding more than one class of shares, whether with or without par value. [1967 c.359 §179]
732.410 Right to acquire own shares.
A domestic insurer shall have the right to purchase or otherwise acquire, hold, pledge, transfer or dispose of its own issued shares. An insurer may...
732.415 Stock insurer�s proxies; regulation by director; rules.
(1) A proxy may be authorized in writing to vote the shares of any stockholder, or where authorized of a policyholder, of a domestic stock...
732.420 �Equity security� defined; rules.
As used in ORS 732.220 and 732.420 to 732.455, �equity security� means: (1) Any stock or similar security; (2) Any security convertible, with or without...
732.425 Application of insider trading regulation.
The provisions of ORS 732.430, 732.435 and 732.440 do not apply to equity securities of a domestic stock insurer if: (1) Such securities are registered,...
732.430 Filing statement of security ownership with director; rules.
Every person who is directly or indirectly the beneficial owner of more than 10 percent of any class of any equity security of a domestic...
732.435 Suit to recover insider profits; exempted transactions; rules.
(1) For the purpose of preventing the unfair use of information which may have been obtained by a beneficial owner, director or officer as described...
732.440 Prohibited sales of securities.
(1) No beneficial owner, director or officer, as described in ORS 732.430 directly or indirectly, shall sell any equity security of such insurer if the...
732.445 Establishing or maintaining primary or secondary market in securities; rules.
(1) The provisions of ORS 732.435 do not apply to any purchase and sale, or sale and purchase, and the provisions of ORS 732.440 do...
732.450 Arbitrage transactions exempt; rules.
The provisions of ORS 732.430, 732.435 and 732.440 do not apply to foreign or domestic arbitrage transactions unless made in contravention of such rules as...
732.455 Rules.
The Director of the Department of Consumer and Business Services shall have the power to make such rules as may be necessary for the execution...
732.460 Annual report to shareholders or members; rules.
Every domestic stock insurer shall send to each shareholder within 90 days after the end of each fiscal year of such insurer and every domestic...
732.465 Members of domestic mutual insurers.
(1) A domestic mutual insurer shall be owned by and operated in the interest of its members. (2) Each owner of one or more valid...
732.470 Voting rights of members of mutual insurer.
(1) Each member of a domestic mutual insurer is entitled to one vote on each matter coming before a meeting of the members and for...
732.475 Members� meetings and procedures of domestic mutual and reciprocal insurers.
The following provisions shall apply to and govern meetings of members of a domestic mutual insurer and, to the extent applicable, meetings of subscribers of...
732.480 Copy of bylaws of domestic mutual insurer to be provided to director; provisions of bylaws.
A copy of the bylaws of a domestic mutual insurer, including any amendments, shall be provided to the Director of the Department of Consumer and...
732.505 [Formerly 738.610; 1969 c.336 §7; 1983 c.498 §1; repealed by 1993 c.447 §122]
732.510 [1967 c.359 §195; 1969 c.336 §8; 1983 c.498 §2; repealed by 1993 c.447 §122]
732.515 [1967 c.359 §196; 1983 c.498 §3; repealed by 1993 c.447 §122]
732.517 Purpose of ORS 732.517 to 732.546.
The purpose of ORS 732.517 to 732.546 is that of regulating the control or ownership of an insurer or of an insurance holding company system....
732.518 Definitions for ORS 732.517 to 732.546.
As used in ORS 732.517 to 732.546: (1) �Acquiring party� means each person by whom or on whose behalf an acquisition of control referred to...
732.520 [1967 c.359 §197; repealed by 1993 c.447 §122]
732.521 Activities that are prohibited unless specified procedures followed; exceptions.
(1) Unless the provisions of ORS 732.517 to 732.546 are first satisfied, a person shall not engage in any of the activities described in this...
732.522 [1983 c.498 §6; repealed by 1993 c.447 §122]
732.523 Procedure for acquiring controlling interest of capital stock; filing of statement; request for hearing.
(1) An acquiring party: (a) Must file with the Director of the Department of Consumer and Business Services for approval a statement containing the information...
732.525 [1967 c.359 §198; 1983 c.498 §7; repealed by 1993 c.447 §122]
732.526 Hearing on proposed activity; notice.
(1) If a written request for a hearing has been duly filed or if, within 10 days after the filing of a completed statement, the...
732.528 Approval of proposed activity; grounds for refusing approval.
(1) The Director of the Department of Consumer and Business Services shall approve the proposed activity described in ORS 732.521 (1) not later than the...
732.529 Procedures following approval by director of proposed activity.
(1) Following approval of a proposed activity by the Director of the Department of Consumer and Business Services or pursuant to a court order or...
732.530 [1967 c.359 §199; repealed by 1993 c.447 §122]
732.531 Acquisition of assets or insurance of mutual or reciprocal insurers.
(1) If a statement filed under ORS 732.523 will result in the acquisition by a stock insurer of all or a significant portion of the...
732.533 Statement of acquisition.
Not later than the 30th day after consummation of an activity described in ORS 732.521 (1), the acquiring party shall submit to the Director of...
732.535 [1967 c.359 §200; 1983 c.498 §10; 1993 c.447 §30; renumbered 732.526 in 1993]
732.536 Compliance with foreign or alien laws.
(1) The action taken by any foreign or alien insurer or other party to the proposed activity described in ORS 732.521 (1) must be authorized...
732.538 Effect of merger or consolidation.
(1) When a merger or consolidation becomes effective, the effect on the insurers and other parties to the merger or consolidation is as follows: (a)...
732.540 [1967 c.359 §201; 1979 c.562 §32; 1983 c.498 §11; 1993 c.447 §31; renumbered 732.528 in 1993]
732.541 Jurisdiction over person obtaining or attempting to obtain control.
The courts of this state are vested with jurisdiction over every person not resident, domiciled or authorized to do business in this state who is...
732.543 Remedies for violation of ORS 732.517 to 732.546.
(1) Whenever it appears to the Director of the Department of Consumer and Business Services that any person has committed or is about to commit...
732.545 [1967 c.359 §202; 1973 c.515 §2; 1981 c.633 §81; 1983 c.498 §12; 1987 c.846 §10; repealed by 1993 c.447 §122]
732.546 Severability.
If any provision of ORS 732.517 to 732.546 or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect...
732.548 Definitions for ORS 732.517 to 732.592.
As used in ORS 732.517 to 732.592: (1) �Affiliate� of, or person �affiliated� with, a specified person means a person that directly, or indirectly through...
732.549 Subsidiaries.
(1) A domestic insurer, either by itself or in cooperation with one or more persons, may organize or acquire one or more subsidiaries engaged only...
732.550 [1967 c.359 §203; 1993 c.447 §32; renumbered 732.531 in 1993]
732.551 Registration of insurer members of holding company systems.
(1) Every authorized insurer that is a member of an insurance holding company system shall register with the Director of the Department of Consumer and...
732.552 Registration statement; form; contents.
(1) Every insurer subject to the registration requirements of ORS 732.551 shall file a registration statement on a form prescribed by the Director of the...
732.553 Certain information not required to be disclosed.
Information that is not material for the purposes of registration under ORS 732.517 to 732.592 need not be disclosed on the registration statement filed pursuant...
732.554 Changes in registration information; reports of distributions to shareholders.
Each registered insurer shall keep current the information required to be disclosed on its registration statement by reporting all material changes or additions on amendment...
732.555 [1967 c.359 §204; repealed by 1993 c.447 §122]
732.556 Requirement that certain persons provide information to insurers.
Any person within an insurance holding company system subject to registration shall provide complete and accurate information to an insurer when such information is necessary...
732.558 Termination of registration by director.
The Director of the Department of Consumer and Business Services shall terminate the registration of any insurer which demonstrates that it no longer is a...
732.560 [1967 c.359 §205; 1983 c.498 §13; 1993 c.447 §34; renumbered 732.536 in 1993]
732.562 Consolidated registration.
The Director of the Department of Consumer and Business Services may require or allow two or more affiliated insurers subject to registration to file a...
732.564 Registration for affiliated insurers.
The Director of the Department of Consumer and Business Services may allow an authorized insurer that is part of an insurance holding company system to...
732.565 [1967 c.359 §206; repealed by 1993 c.447 §122]
732.566 Exemption from ORS 732.517 to 732.592 by director.
The registration requirements of ORS 732.517 to 732.592 do not apply to any insurer, information or transaction exempted by the Director of the Department of...
732.568 Disclaimer of affiliation; contents; subsequent duty to register; disallowance of disclaimers by director.
Any person may file with the Director of the Department of Consumer and Business Services a disclaimer of affiliation with any authorized insurer, or such...
732.570 [1967 c.359 §207; 1987 c.846 §11; renumbered 732.538 in 1993]
732.572 Rulemaking authority for ORS 732.517 to 732.592.
The Director of the Department of Consumer and Business Services may adopt rules to carry out ORS 732.517 to 732.592. [Formerly 732.705] STANDARDS AND MANAGEMENT...
732.574 Standards for transactions within holding company; notice.
(1) A transaction within an insurance holding company system to which an insurer subject to registration is a party is subject to the following standards:...
732.575 [1983 c.498 §15; repealed by 1993 c.447 §122]
732.576 Dividends and distributions.
The following provisions of this section apply to dividends and other distributions within an insurance holding company system: (1) A domestic insurer subject to registration...
732.578 Effect of control of insurer subject to registration on director and officer liability.
Control by any person of a domestic insurer subject to registration does not relieve the officers and directors of the insurer of any obligation or...
732.580 [1983 c.498 §16; 1993 c.447 §35; renumbered 732.541 in 1993]
732.582 Determination of reasonableness and adequacy of capital and surplus.
For purposes of ORS 732.517 to 732.592, in order to determine whether the combined capital and surplus is reasonable in relation to the outstanding liabilities...
732.584 Examinations.
(1) In addition to other powers of the Director of the Department of Consumer and Business Services under the Insurance Code relating to the examination...
732.585 [1983 c.498 §17; repealed by 1993 c.447 §122]
732.586 Confidentiality of information; permitted disclosures.
(1) All information, documents and copies thereof obtained by or disclosed to the Director of the Department of Consumer and Business Services or any other...
732.588 Supervision, rehabilitation or liquidation.
If the Director of the Department of Consumer and Business Services determines that a violation by any person of any provision of ORS 732.517 to...
732.590 [1983 c.498 §18; 1993 c.447 §36; renumbered 732.543 in 1993]
732.592 Recovery from parent corporation or holding company if domestic insurer ordered into liquidation or rehabilitation.
(1) If an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under the order may recover, on behalf...
732.595 [1983 c.498 §19; renumbered 732.546 in 1993]
732.597 [1985 c.327 §2; 1993 c.447 §110; repealed by 1997 c.771 §28]
732.598 [1985 c.327 §3; repealed by 1997 c.771 §28]
732.599 [1985 c.327 §4; 1993 c.447 §111; repealed by 1997 c.771 §28]
732.600 Definitions for ORS 732.600 to 732.630.
As used in ORS 732.600 to 732.630: (1) �Conversion� means the process by which a domestic mutual insurer is converted to a domestic stock insurer...
732.602 Intent of ORS 732.600 to 732.630.
ORS 732.600 to 732.630 are intended to enable a domestic mutual insurer, to the extent consistent with the interests of its members and the insurance...
732.604 Permissible actions of domestic mutual insurer; rules.
(1) A domestic mutual insurer may engage in either of the following actions: (a) A conversion to a domestic stock insurer; or (b) A reorganization...
732.605 [1971 c.373 §2; 1993 c.447 §23; renumbered 732.548 in 1993]
732.606 Plan for conversion or reorganization; documents filed; approval by director and members.
(1) In order for a domestic mutual insurer to engage in a conversion or reorganization as provided in ORS 732.604, the board of directors of...
732.608 Waiver of requirements of ORS 732.606.
The Director of the Department of Consumer and Business Services may waive the requirements of ORS 732.606 if: (1) The director determines that a domestic...
732.610 Contents of plan.
A plan of conversion or reorganization of a domestic mutual insurer must include the following: (1) A statement of the reasons for the proposed action....
732.612 Consideration for membership interest in converting or reorganizing mutual insurer; kinds of consideration; allocation of consideration.
(1) In the case of a conversion or in the case of a reorganization involving the organization of a stock holding company, consideration for the...
732.614 Effect of conversion.
(1) Upon the effective date of a conversion, the membership interests of all members of the converting mutual insurer, whether or not eligible members, shall...
732.615 [1971 c.373 §3; 1981 c.247 §8; 1993 c.447 §37; renumbered 732.551 in 1993]
732.616 Reorganization involving organization of stock holding company; subsidiaries.
(1) Upon the effective date of a reorganization involving the organization of a stock holding company, the membership interests of all members of the converting...
732.618 Reorganization involving organization of mutual holding company; subsidiaries.
(1) Upon the effective date of a reorganization involving the organization of a mutual holding company, the membership interests of all members of the converting...
732.620 Status of mutual holding company as corporation; status as insurer; rights and obligations of members; voting; articles of incorporation.
(1) A mutual holding company is a corporation. To the extent not inconsistent with the provisions of the Insurance Code or ORS 732.600 to 732.630,...
732.622 Restructuring of mutual holding company.
(1) A mutual holding company may restructure to a stock holding company in accordance with a plan of restructuring. The restructuring may include the continuation...
732.624 Approval by Director of Department of Consumer and Business Services of mutual holding company restructuring plan; approval by members; effect of restructuring.
(1) The Director of the Department of Consumer and Business Services shall approve, conditionally approve or disapprove a plan of restructuring and other documents submitted...
732.625 [1971 c.373 §4; 1993 c.447 §38; renumbered 732.552 in 1993]
732.626 Plan review and approval; general provisions.
(1) The Director of the Department of Consumer and Business Services shall review a plan of conversion, reorganization or restructuring that is submitted to the...
732.628 Limitations on ownership of shares in companies resulting from conversion, reorganization or restructuring.
(1) For a period of three years following the effective date of a conversion, reorganization or restructuring, unless authorized by the Director of the Department...
732.630 Dissenters� rights; action challenging validity of conversion, reorganization or restructuring.
(1) Dissenters� rights provided in ORS 60.551 to 60.594 are not available to any member, whether or not eligible, of a converting mutual insurer or...
732.635 [1971 c.373 §5; 1993 c.447 §39; renumbered 732.553 in 1993]
732.645 [1971 c.373 §6; 1993 c.447 §40; renumbered 732.554 in 1993]
732.655 [1971 c.373 §7; renumbered 732.558 in 1993]
732.665 [1971 c.373 §8; 1993 c.447 §42; renumbered 732.562 in 1993]
732.675 [1971 c.373 §9; 1993 c.447 §43; renumbered 732.564 in 1993]
732.685 [1971 c.373 §10; 1993 c.447 §44; renumbered 732.566 in 1993]
732.695 [1971 c.373 §11; 1993 c.447 §45; renumbered 732.568 in 1993]
732.705 [1971 c.373 §12; 1993 c.447 §46; renumbered 732.572 in 1993]
732.810 Definitions for ORS 732.810 to 732.814.
As used in ORS 732.810 to 732.814: (1) �Control� and �controlled� have the meanings given those terms in ORS 732.548. (2) �Controlled insurer� means an...
732.811 Application of ORS 732.810 to 732.814.
(1) ORS 732.810 to 732.814 apply to an insurer who is authorized in this state to transact property insurance or casualty insurance, or both, and...
732.812 Filing of financial statements; contract requirements; audit; reports to director.
(1) A controlled insurer shall file quarterly financial statements with the Director of the Department of Consumer and Business Services. (2) Subsections (4) to (7)...
732.813 Notice to prospective insured.
A controlling producer, prior to the effective date of a policy, shall deliver written notice to the prospective insured disclosing the relationship between the producer...
732.814 Authority of director over controlling producer and controlled insurer.
(1) If the Director of the Department of Consumer and Business Services believes that the controlling producer or any other person has not complied with...
732.990 [Repealed by 1967 c.359 §704]

Last modified: August 7, 2008