(1) ORS 734.750 to 734.890 provide coverage to the following persons for policies and contracts specified in subsection (2) of this section:
(a) To a person who is a resident, if the person is an owner of or a certificate holder under the policy or contract or, in the case of an unallocated annuity contract, an employee participating in a governmental retirement plan established under section 401, 403(b) or 457 of the United States Internal Revenue Code or the beneficiaries of each such individual if deceased.
(b) To a person who is not a resident, if the person is an owner of or a certificate holder under the policy or contract or, in the case of an unallocated annuity contract, an employee participating in a governmental retirement plan established under section 401, 403(b) or 457 of the United States Internal Revenue Code or the beneficiaries of each such individual if deceased. This paragraph applies to a person who is not a resident only if all of the following conditions are met:
(A) The insurer that issued the policy or contract must be a domestic insurer.
(B) The insurer must never have held a license or certificate of authority in the state in which the person resides.
(C) The state in which the person resides must have an association similar to the Oregon Life and Health Insurance Guaranty Association.
(D) The person must not be eligible for coverage by the association in the state in which the person resides, as described in subparagraph (C) of this paragraph.
(c) To a person who, regardless of where the person resides, is a beneficiary, assignee or payee of the persons covered under paragraph (a) or (b) of this subsection. This paragraph does not include a nonresident certificate holder under a group policy or contract.
(2) ORS 734.750 to 734.890 provide coverage to the persons specified in subsection (1) of this section for direct life insurance, including annuity, policies, health insurance policies, and contracts supplemental to life and health insurance policies, issued by authorized insurers.
(3) ORS 734.750 to 734.890 do not provide coverage for:
(a) That portion or part of a variable life insurance or variable annuity policy not guaranteed by an insurer.
(b) That portion or part of any policy or contract under which the risk is borne by the policyholder.
(c) Any policy or contract or part thereof assumed by the impaired or insolvent insurer under a contract of reinsurance, other than reinsurance for which assumption certificates have been issued.
(d) Any policy or contract issued by a health care service contractor complying with ORS 750.005 to 750.095.
(e) Any policy or contract issued by a fraternal benefit society.
(f) Any portion of a policy or contract to the extent that the rate of interest on which it is based:
(A) Exceeds, when averaged over the period of four years prior to the date on which the association becomes obligated with respect to the policy or contract, a rate of interest determined by subtracting four percentage points from Moody’s Corporate Bond Yield Average averaged for that same four-year period or for a lesser period if the policy or contract was issued less than four years before the association became obligated; and
(B) Exceeds, on and after the date on which the association becomes obligated with respect to the policy or contract, the rate of interest determined by subtracting three percentage points from Moody’s Corporate Bond Yield Average as most recently available.
(g) Any plan or program of an employer, association or similar entity to provide life, health or annuity benefits to its employees or members to the extent that the plan or program is self-funded or uninsured, including benefits payable by an employer, association or similar entity under any of the following:
(A) A multiple employer welfare arrangement as defined in section 514 of the Employee Retirement Income Security Act of 1974, as amended.
(B) A minimum premium group insurance plan.
(C) A stop-loss group insurance plan.
(D) An administrative services only contract.
(h) Any portion of a policy or contract to the extent that it provides dividends or experience rating credits, or provides that any fees or allowances be paid to any person, including the policy or contract holder, in connection with the service to or administration of the policy or contract.
(i) Any policy or contract issued in this state by a member insurer at a time that it did not have a certificate of authority to issue the policy or contract in this state.
(j) Any unallocated annuity contract issued to an employee benefit plan protected under the federal Pension Benefit Guaranty Corporation.
(k) Any portion of any unallocated annuity contract that is issued to or in connection with a specific employee, union or association of natural persons benefit plan, other than a government retirement plan referred to in subsection (1) of this section, or a government lottery.
(L) Any coverage issued by the Oregon Medical Insurance Pool.
(4) As used in this section, “Moody’s Corporate Bond Yield Average” means the Monthly Average Corporates as published by Moody’s Investors Service, Inc., or any successor thereto. [1975 c.251 §4; 1987 c.414 §181; 1991 c.811 §3]Section: Previous 734.695 734.700 734.710 734.750 734.760 734.770 734.780 734.790 734.800 734.805 734.810 734.815 734.820 734.825 734.830 Next
Last modified: August 7, 2008