71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 4256
 
                         Minority Report
 
                           A-Engrossed
 
                         House Bill 3980
                   Ordered by the House May 16
     Including House Minority Report Amendments dated May 16
 
Sponsored by nonconcurring members of the House Committee on
  Smart Growth and Commerce: Representatives CARLSON, BROWN,
  JOHNSON
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
    { - Establishes Examination and Accountability Commission to
review Industrial Accident Fund. Directs transfer of moneys from
Industrial Accident Fund to Workers' Benefit Fund and to
Examination and Accountability Commission Fund. Creates
Examination and Accountability Commission Fund. Provides that
expenses of commission be paid from moneys appropriated for
expenses of State Treasurer. - }
    { - Declares emergency, effective on passage. - }
   { +  Directs Secretary of State to contract for independent
actuarial review of State Accident Insurance Fund Corporation and
Industrial Accident Fund. Provides that cost of audit shall be
paid by State Accident Insurance Fund Corporation. + }
 
                        A BILL FOR AN ACT
Relating to the Industrial Accident Fund.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + (1)(a) As part of the audit of the State
Accident Insurance Fund Corporation and the Industrial Accident
Fund performed by the Secretary of State under ORS 297.210, 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 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 by ORS
192.410 to 192.505 and 656.702.
  (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. + }
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