71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
HA to A-Eng. HB 3980
 
LC 4256/HB 3980-A12
 
                       HOUSE AMENDMENTS TO
                   A-ENGROSSED HOUSE BILL 3980
 
            By COMMITTEE ON SMART GROWTH AND COMMERCE
 
                             May 25
 
  On page 1 of the printed A-engrossed bill, line 2, after '
Fund' insert a period and delete the rest of the line and lines 3
through 9.
  Delete lines 11 through 25 and delete pages 2 through 4 and
insert:
  '  { +  SECTION 1. + }  { + (1)(a) The Secretary of State shall
conduct an annual audit of the State Accident Insurance Fund
Corporation and the Industrial Accident Fund pursuant to ORS
297.210. As part of this audit, the Secretary of State shall
contract with a firm qualified to perform an independent
actuarial review.
  ' (b) The firm conducting the review required by paragraph (a)
of this subsection shall be familiar with the accounting
standards applicable to the reserves under review, shall meet all
appropriate standards of practice established by the Casualty
Actuarial Society, shall employ a staff that includes no fewer
than three people who have attained fellowship in the Casualty
Actuarial Society and shall maintain limits of errors and
omission insurance as prescribed by the Secretary of State.
  ' (c) The Secretary of State shall determine the scope of the
review required by paragraph (a) of this subsection, which shall
include, but is not limited to:
  ' (A) A review of the sources and uses of the moneys in the
Industrial Accident Fund;
  ' (B) A reconciliation of changes in actuarial assumptions and
reserve values from the prior year;
  ' (C) An examination of the development of claim reserve
inadequacies or redundancies over time;
  ' (D) An assessment of the future financial viability of the
Industrial Accident Fund; and
  ' (E) An evaluation of losses and loss adjustment expense
reserves discounted by a rate determined by the Director of the
Department of Consumer and Business Services that is consistent
with discount rates generally applied by insurers authorized to
underwrite workers' compensation insurance in Oregon.
  ' (d) The State Accident Insurance Fund Corporation shall
cooperate with the actuarial firm in all respects and shall
permit the firm full access to all information the firm deems
necessary for a true and complete review. Information provided to
the actuarial firm conducting the annual review is subject to the
same limitations on public inspections as required for the
records of the State Accident Insurance Fund Corporation.
  ' (e) The audit required by paragraph (a) of this subsection
shall be conducted using both generally accepted accounting
principles and the statutory accounting principles published by
the National Association of Insurance Commissioners.
  ' (f) The cost of the audit required by paragraph (a) of this
subsection shall be paid by the State Accident Insurance Fund
Corporation.
 
  ' (2) The Secretary of State shall issue an annual report to
the Governor, the President of the Senate and the Speaker of the
House of Representatives on the results of the audit and review.
The audit and the report of the review performed by the
independent actuarial firm shall be available for public
inspection, in accordance with the Secretary of State's
established rules and procedures governing public disclosure of
audit documents. + }
  '  { +  SECTION 2. + }  { + The board of directors of the State
Accident Insurance Fund Corporation shall report to the Secretary
of State by March 15 of each year:
  ' (1) The total amount of assets in the Industrial Accident
Fund as of December 31 of the prior year;
  ' (2) The reserves and surplus that are actuarially necessary
according to recognized insurance principles as described in ORS
656.634 (2) and statutory accounting principles published by the
National Association of Insurance Commissioners, excluding any
allowance for undeclared dividends;
  ' (3) Any funds in addition to those described in subsection
(2) of this section; and
  ' (4) The total amount of investment gain generated by the
Industrial Accident Fund during the prior year ending on December
31. + } ' .
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