71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
HMRA to HB 3980
 
LC 4256/HB 3980-MR10
 
                      HOUSE MINORITY REPORT
                          AMENDMENTS TO
                         HOUSE BILL 3980
 
                             May 16
 
Speaker Simmons:
  A minority of your Committee on Smart Growth and Commerce, to
whom was referred House Bill 3980, having had the same under
consideration, respectfully reports it back with the
recommendation that it do pass with the following amendments:
 
  On page 1 of the printed bill, line 2, after 'Fund' insert a
period and delete the rest of the line and lines 3 through 14.
  Delete lines 16 through 29 and delete pages 2 through 5 and
insert:
  '  { +  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. + } ' .
 
                         /sJanet Carlson
                           Representative
 
                         /sAlan Brown
                           Representative
 
                         /sBetsy Johnson
                           Representative
                         ----------