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 2517
C-Engrossed
Senate Bill 608
Ordered by the House May 31
Including Senate Amendments dated March 27 and House Minority
Report Amendments dated May 16 and House Amendments dated May 31
Sponsored by COMMITTEE ON BUSINESS, LABOR, AND ECONOMIC
DEVELOPMENT (at the request of Oregon Insurance Guaranty
Association)
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.
Modifies provisions for payment of claims under certain
insurance policies due to insolvency of insurer.
Permits Director of Department of Consumer and Business
Services to advance funds to injured worker who has not received
payment due to default of workers' compensation insurer. Makes
related changes.
Requires health insurance policies that provide prescription
drug benefit to include coverage for prescription contraceptives
and related outpatient consultation. { + Provides that health
insurance policy need not include coverage for contraceptives if
coverage is contrary to religious tenets of group or entity on
whose behalf policy is issued and if certain other conditions are
met. + }
A BILL FOR AN ACT
Relating to insurers; creating new provisions; and amending ORS
656.506, 656.605, 734.360, 734.510, 734.570, 734.630, 734.635,
734.695, 750.055 and 750.333.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 734.510 is amended to read:
734.510. As used in ORS 734.510 to 734.710, unless the context
requires otherwise:
(1) 'Association' means the Oregon Insurance Guaranty
Association created by ORS 734.550.
(2) 'Board' means the board of directors of the association.
(3) 'Controlled insurer' means an insurer 70 percent or more of
whose stock is owned by a corporation, or by two or more
corporations that are under common ownership.
(4)(a) 'Covered claim' means an unpaid claim, including a claim
for unearned premiums { + and a claim by the Workers' Benefit
Fund for payments made pursuant to ORS chapter 656 + }, that
arises out of and is within the coverage and limits of an
insurance policy to which ORS 734.510 to 734.710 apply and which
is in force at the time of the occurrence giving rise to the
unpaid claim, made by a person insured under such policy or by a
person suffering injury or damage for which a person insured
under such policy is legally liable, if:
(A) The insurer issuing the policy becomes an insolvent insurer
after September 9, 1971; and
(B) The claimant or insured is a resident of this state at the
time of the occurrence giving rise to the unpaid claim, or the
property for which claim arises is permanently located in this
state.
(b) 'Covered claim' does not include:
(A) Any amount in excess of the applicable limits of liability
provided by an insurance policy to which ORS 734.510 to 734.710
apply; { - nor - }
(B) Any amount due any reinsurer, insurer, insurance pool or
underwriting association as subrogated recoveries or otherwise
{ - . - } { + ; + }
{ + (C) Except for claims arising out of workers'
compensation policies subject to ORS chapter 656, a claim filed
with the association after the final date set by the court for
the filing of claims against the liquidator or receiver of an
insolvent insurer; or
(D) Any first party claim by an insured whose net worth exceeds
$25 million on December 31 of the year next preceding the date
the insurer becomes an insolvent insurer, provided that an
insured's net worth on such date is deemed to include the
aggregate net worth of the insured and all of its subsidiaries as
calculated on a consolidated basis. + }
(5) 'Dividend' means any payment made to the stockholders of a
controlled insurer, which payment is directly related to
ownership of the stock.
(6) 'Insolvent insurer' means a member insurer:
(a) Authorized to transact insurance in this state either at
the time the policy was issued or at the time of the occurrence
giving rise to the unpaid claim; { - and - }
(b) Against which a final order of liquidation, with a finding
of insolvency, has been entered by a court of competent
jurisdiction in the insurer's domicile after September 9, 1971;
and
(c) With respect to which no order, decree, or finding relating
to the insolvency of the insurer, whether preliminary or
temporary in nature or otherwise, has been issued by a court of
competent jurisdiction or by any insurance commissioner,
insurance department or similar official or body prior to
September 9, 1971, or which was in fact insolvent prior to
September 9, 1971, and such de facto insolvency was or should
have been known by the chief insurance regulatory official of its
domicile.
(7) 'Member insurer' means an insurer, including a reciprocal
insurer, authorized to transact insurance in this state that
writes any kind of insurance to which ORS 734.510 to 734.710
apply.
(8) 'Net direct written premiums' means direct gross premiums
written in this state on insurance policies to which ORS 734.510
to 734.710 apply, less return premiums thereon and dividends paid
or credited to policyholders on such direct business. 'Net direct
written premiums' does not include premiums on contracts between
insurers or reinsurers.
(9) 'Plan' means the plan of operation of the association
established pursuant to ORS 734.590.
SECTION 2. ORS 734.695 is amended to read:
734.695. { + (1) + } The insured of an insolvent insurer
{ - shall - } { + may + } not be personally liable for amounts
due any reinsurer, insurer, insurance pool or underwriting
association as subrogation recoveries or otherwise up to the
applicable limits of liability provided by the insurance policy
issued by the insolvent insurer.
{ + (2) Notwithstanding the provisions of subsection (1) of
this section, and except for claims arising out of workers'
compensation policies subject to ORS chapter 656, the Oregon
Insurance Guaranty Association may recover from the following
persons the amount of any covered claim paid on behalf of such
person under ORS 734.510 to 734.710:
(a) Any insured whose net worth exceeds $25 million on December
31 of the year next preceding the date the insurer becomes an
insolvent insurer and whose liability obligations to other
persons are satisfied in whole or in part by payments made under
ORS 734.510 to 734.710; and
(b) Any person who is an affiliate of the insolvent insurer and
whose liability obligations to other persons are satisfied in
whole or in part by payments made under ORS 734.510 to
734.710. + }
SECTION 3. ORS 734.360 is amended to read:
734.360. Except as provided in ORS 734.310 for secured claims,
the { - debts and - } claims to be paid in full in delinquency
proceedings prior to the payment of any other { - debts or - }
claims, and the order of payment, shall be:
(1) Expenses of administration of the delinquency proceedings
{ + and expenses of the Oregon Insurance Guaranty Association
or similar organization in another state handling claims in
accordance with ORS 734.510 to 734.710 + };
{ - (2) If the insurer is domiciled in this state,
compensation or wages actually owing to salaried employees other
than officers of the insurer, for services rendered within three
months prior to the commencement of the delinquency proceeding,
but not exceeding $2,000 for each such employee; - }
{ + (2) All claims under policies, including third party
claims and claims under nonassessable policies for unearned
premiums, and all claims by the Oregon Insurance Guaranty
Association, the Oregon Life and Health Insurance Guaranty
Association or any similar organization in another state for
payment of covered claims or contractual obligations; + }
(3) { - Taxes - } { + Claims + } legally due and owing by
the insurer { - to this state or - } to the United States;
{ - and - }
{ - (4) Debts or claims, including special deposit claims,
owing to any person, including this state, who by the laws of
this state is entitled to priority. - }
{ + (4) If the insurer is domiciled in this state,
compensation or wages actually owing to salaried employees other
than officers of the insurer, for services rendered within three
months prior to the commencement of the delinquency proceeding,
but not exceeding $2,000 for each such employee;
(5) Claims legally due and owing by the insurer to this state;
and
(6) Claims, including special deposit claims, owing to any
person, including this state, that by the laws of this state is
entitled to priority. + }
SECTION 4. ORS 734.630 is amended to read:
734.630. (1) Any person who recovers on a covered claim under
ORS 734.510 to 734.710 thereby assigns the rights of the person
under the insurance policy to the Oregon Insurance Guaranty
Association to the extent of such recovery. Every person who
seeks the protection of ORS 734.510 to 734.710 shall cooperate
with the association to the same extent such person would have
been required to cooperate with the insolvent insurer. The
association shall have no cause of action against the insureds of
an insolvent insurer for any sums paid, except for those causes
of action the insolvent insurer would have had if such sums had
been paid by the insolvent insurer. If an insolvent insurer
operates on the assessment plan, the payment of claims by the
association does not reduce the liability of the insured to the
receiver for unpaid assessments.
(2) Periodically the association shall file with the receiver
statements of the covered claims paid by the association and
estimates of anticipated claims against the association. Such
filings shall preserve the rights of the association against the
assets of the insolvent insurer.
(3) The receiver shall be bound by settlements of covered
claims by the association or a similar organization in another
state. The court having jurisdiction shall grant such claims
priority { + in accordance with ORS 734.360. + } { - equal to
that to which the claimant would have been entitled in the
absence of ORS 734.510 to 734.710 against the assets of the
insolvent insurer. The expenses of the association or similar
organization in another state in handling claims shall be
accorded the same priority as the expenses of administration of
the delinquency proceedings. - }
SECTION 5. { + Section 6 of this 2001 Act is added to and made
a part of ORS chapter 656. + }
SECTION 6. { + (1) If an insurer defaults in payment of
compensation due an injured worker, the Director of the
Department of Consumer and Business Services may advance funds
from the Workers' Benefit Fund to injured workers who have not
received payment of compensation due from the insurer in default.
(2) The maximum expenditures that may be made under this
section may not exceed the amount of securities on deposit for
the insurer pursuant to ORS 731.628.
(3) The director shall adopt rules to regulate, manage and
disburse moneys in the Workers' Benefit Fund for the purposes of
subsection (1) of this section. The rules shall include but not
be limited to eligibility criteria, procedures for distributing
funds, accounting procedures and a maximum expenditure limitation
on payments made under subsection (1) of this section from the
fund. + }
SECTION 7. ORS 656.506 is amended to read:
656.506. (1) As used in this section:
(a) 'Employee' means a subject worker as defined in ORS 656.005
(28).
(b) 'Employer' means a subject employer as defined in ORS
656.005 (27).
(2) Every employer shall retain from the moneys earned by all
employees an amount determined by the Director of the Department
of Consumer and Business Services for each hour or part of an
hour the employee is employed and pay the money retained in the
manner and at such intervals as the Director of the Department of
Consumer and Business Services shall direct.
(3) In addition to all moneys retained under subsection (2) of
this section, the director shall assess each employer an amount
equal to that assessed pursuant to subsection (2) of this
section. The assessment shall be paid in such manner and at such
intervals as the director may direct.
(4) Moneys collected pursuant to subsections (2) and (3) of
this section, and any accrued cash balances, shall be deposited
by the Department of Consumer and Business Services into the
Workers' Benefit Fund. Subject to the limitations in subsections
(2) and (3) of this section, the amount of the hourly assessments
provided in subsections (2) and (3) of this section annually may
be adjusted to meet the needs of the Workers' Benefit Fund for
the expenditures of the department in carrying out its functions
and duties pursuant to subsection (7) of this section and ORS
656.622, 656.625, 656.628 and 656.630 { + and section 6 of this
2001 Act + }. Factors to be considered in making such adjustment
of the assessments shall include, but not be limited to, the cash
balance as determined by the director and estimated expenditures
and revenues of the Workers' Benefit Fund.
(5) It is the intent of the Legislative Assembly that the
department set rates for the collection of assessments pursuant
to subsections (2) and (3) of this section in a manner so that at
the end of the period for which the rates shall be effective, the
cash balance shall be an amount approximating 12 months of
projected expenditures from the Workers' Benefit Fund in regard
to its functions and duties under subsection (7) of this section
and ORS 656.622, 656.625, 656.628 and 656.630 { + and section 6
of this 2001 Act + }, in a manner that minimizes the volatility
of the rates assessed. The department may set the assessment rate
at a higher level if the department determines that a higher rate
is necessary to avoid unintentional program or benefit reductions
in the time period immediately following the period for which the
rate is being set.
(6) Every employer required to pay the assessments referred to
in this section shall make and file a quarterly report of
employee hours worked and amounts due under this section upon a
combined quarterly report form prescribed by the Department of
Revenue. The report shall be filed with the Department of Revenue
at the times and in the manner prescribed in ORS 316.168 and
316.171.
(7) There is established a Retroactive Program for the purpose
of providing increased benefits to claimants or beneficiaries
eligible to receive compensation under the benefit schedules of
ORS 656.204, 656.206, 656.208 and 656.210 which are lower than
currently being paid for like injuries. However, benefits payable
under ORS 656.210 shall not be increased by the Retroactive
Program for claimants whose injury occurred on or after April 1,
1974. Notwithstanding the formulas for computing benefits
provided in ORS 656.204, 656.206, 656.208 and 656.210, the
increased benefits payable under this subsection shall be in such
amount as the director considers appropriate. The director
annually shall compute the amount which may be available during
the succeeding year for payment of such increased benefits and
determine the level of benefits to be paid during such year. If,
during such year, it is determined by the director that there are
insufficient funds to increase benefits to the level fixed by the
director, the director may reduce the level of benefits payable
under this subsection. The increase in benefits to workers shall
be payable in the first instance by the insurer or self-insured
employer subject to reimbursement from the Workers' Benefit Fund
by the director. If the insurer is a member of the Oregon
Insurance Guaranty Association and becomes insolvent and the
Oregon Insurance Guaranty Association assumes the insurer's
obligations to pay covered claims of subject workers, including
Retroactive Program benefits, such benefits shall be payable in
the first instance by the Oregon Insurance Guaranty Association,
subject to reimbursement from the Workers' Benefit Fund by the
director.
SECTION 8. ORS 656.605 is amended to read:
656.605. (1) The Workers' Benefit Fund is created in the State
Treasury, separate and distinct from the General Fund. Moneys in
the fund shall be invested in the same manner as other state
moneys and investment earnings shall be credited to the fund. The
fund shall consist of the following:
(a) Moneys received pursuant to ORS 656.506.
(b) Moneys recovered under ORS 656.054.
(c) Fines and penalties recovered under ORS 656.735.
(d) All moneys received by the Director of the Department of
Consumer and Business Services pursuant to law or from any other
source for purposes for which the fund may be expended.
(2) Moneys in the Workers' Benefit Fund may be expended for the
following purposes:
(a) Expenses of programs under ORS 656.506, 656.622, 656.625,
656.628 and 656.630 { + and section 6 of this 2001 Act + }.
(b) Proceedings against noncomplying employers pursuant to ORS
656.054 and 656.735.
(c) Expenses of vocational assistance on claims, the cost of
which was imposed pursuant to section 15, chapter 600, Oregon
Laws 1985.
(3) Subject to the following provisions, all moneys in the fund
are appropriated continuously to the Director of the Department
of Consumer and Business Services to carry out the activities for
which the fund may be expended:
(a) Moneys received pursuant to ORS 656.054 and 656.735 and
transfers made pursuant to ORS 705.148 may be expended only to
carry out the provisions of ORS 656.054 and 656.735 and section
15, chapter 600, Oregon Laws 1985.
(b) Moneys received pursuant to ORS 656.506 and the transfers
of unexpended and unobligated moneys in the Retroactive Reserve,
Reemployment Assistance Reserve, Reopened Claims Reserve and
Handicapped Workers Reserve referred to in ORS 656.506, 656.622,
656.625 and 656.628 (All 1993 Edition) may be expended only to
carry out the programs referred to in ORS 656.506, 656.622,
656.625, 656.628 and 656.630.
(4) Notwithstanding any other provision of this chapter, if the
director determines at any time that there are insufficient
moneys in the Workers' Benefit Fund to pay the expenses of
programs for which expenditure of the fund is authorized, the
director may reduce the level of benefits payable accordingly.
SECTION 9. ORS 734.570 is amended to read:
734.570. The Oregon Insurance Guaranty Association shall:
(1) Be obligated to pay covered claims existing at the time of
determination of insolvency of an insurer or arising within 30
days after the determination of insolvency. Except for covered
claims arising out of workers' compensation policies, such
obligation shall include only that amount of each covered claim
that is less than $300,000. The association shall pay the full
amount of any covered claim arising out of a workers'
compensation policy { + , less any amount paid on a covered claim
by the Workers' Benefit Fund pursuant to ORS chapter 656 + }. In
no event shall the association be obligated in an amount in
excess of the obligation of the insolvent insurer under the
policy from which the claim arises, or for claims arising after
the policy expiration, policy replacement by the insured or
policy cancellation caused by the insured.
(2) Be the insurer to the extent of the association's
obligation on the covered claims and to such extent have all the
rights, duties and obligations of the insolvent insurer as if the
insurer had not become insolvent.
(3) Assess member insurers the amounts necessary to pay the
expenses incurred by the association in meeting its obligations
and exercising its duties and powers under ORS 734.510 to
734.710. The assessments of each member insurer shall be in the
proportion that the net direct written premiums of the member
insurer for the preceding calendar year bears to the net direct
written premiums of all member insurers for the preceding
calendar year, but shall in no event exceed in any one year two
percent of the member insurer's net direct written premiums for
the preceding calendar year. Each member insurer shall be
notified of an assessment not later than the 30th day before the
day it is due. If the funds of the association do not provide in
any one year an amount sufficient to pay the obligations and
expenses of the association, the funds available shall be
prorated among the obligations and expenses, and the unpaid
portions shall be paid as soon thereafter as funds become
available. If an assessment would cause a member insurer's
financial statement to reflect amounts of capital or surplus less
than the minimum amounts required for a certificate of authority
by any jurisdiction in which the member insurer is authorized to
transact insurance, the association may exempt from or defer
payment of the assessment, in whole or in part, by the member
insurer. However, if the member insurer is a controlled insurer,
the association, in making determinations regarding the exemption
or deferral of assessments, shall treat all dividends paid during
the three calendar years immediately preceding the year in which
the assessment is made as assets of the insurer just as if such
dividends had not been paid. Each member insurer designated as a
servicing facility may set off against any assessment authorized
payments made on covered claims and expenses incurred in the
payment of such claims by the member insurer in its capacity as a
servicing facility.
(4) Investigate claims brought against the association and
adjust, compromise, settle and pay covered claims to the extent
of the association's obligation, and review settlements, releases
and judgments to which the insolvent insurer or its insureds were
parties to determine the extent to which such settlements,
releases and judgments may be properly contested.
(5) Reimburse servicing facilities and employees of the
association for obligations and expenses incurred and paid in the
handling of claims on behalf of the association, and pay all
other expenses the association incurs in carrying out ORS 734.510
to 734.710.
SECTION 10. ORS 734.635 is amended to read:
734.635. (1) Not later than 120 days from the date the order of
liquidation of a member insurer is filed in the office of the
clerk of the court by which the order was made, that insurer's
receiver shall make application to the court for approval of a
proposal to disburse the insurer's marshalled assets to the
Oregon Insurance Guaranty Association from time to time as those
assets become available.
(2) A proposal made by a receiver under subsection (1) of this
section shall include, but not be limited to, provisions for:
(a) Reserving amounts for the payment of those { - debts
and - } claims described in ORS 734.360;
(b) Disbursing the marshalled assets of the insolvent insurer
to the association in an amount estimated to be at least equal to
the claim payments to be made by the association for which the
association could assert a claim against the insolvent insurer;
(c) Disbursing the marshalled assets in the amount available
when the marshalled assets do not equal the amount of the claim
payments to be made by the association for which the association
could assert a claim against the insolvent insurer;
(d) Securing an agreement from the association to return to the
receiver any assets previously disbursed that may be required to
pay the claims of secured creditors and the { - debts and - }
claims described in ORS 734.360; and
(e) A complete report by the association to the receiver
accounting for all assets disbursed to the association under this
section, expenditures made from those assets and any interest
earned by the association on those assets.
(3) When an insurer's receiver intends to make application to a
court for approval of a proposal to disburse the insurer's
marshalled assets to the association under this section, the
receiver shall give notice of the application, at least 30 days
prior to filing the application with the court, to the insurance
supervisory official and the insurance guaranty agency that
performs functions similar to that of the association of each
state in which the insolvent insurer was authorized.
SECTION 11. { + Section 12 of this 2001 Act is added to and
made a part of ORS chapter 743. + }
SECTION 12. { + (1) For purposes of this section, '
contraceptive' means any appliance, device, drug or medicinal
preparation approved by the Food and Drug Administration and
intended or having special utility for the prevention of
conception.
(2) All health insurance policies that provide a prescription
drug benefit, except those policies in which coverage is limited
to expenses from accidents or specific diseases that are
unrelated to the coverage required by this subsection, must
include coverage for:
(a) Prescription contraceptives; and
(b) Outpatient consultations, examinations, procedures and
medical services that are necessary for the prescription or
administration of the contraceptives required to be covered
pursuant to this subsection.
(3) The coverage required by this section may be made subject
to provisions of the policy that apply to other benefits under
the policy, including but not limited to provisions relating to
deductibles and coinsurance.
(4) Notwithstanding subsection (2) of this section, a health
insurance policy is not required to include the coverage required
under subsection (2) of this section if:
(a) The coverage is contrary to the religious tenets of a group
or entity on whose behalf the health insurance policy is issued;
(b) The group or entity requests a policy without coverage for
prescription contraceptives; and
(c) The group or entity is an organization exempt from taxation
as described in section 6033(a)(2)(A)(i) or (iii) of the Internal
Revenue Code.
(5) A group or entity that invokes the religious exemption
provided under subsection (4) of this section shall provide
written notice of the religious exemption to its employees prior
to the issuance or renewal of the policy.
(6) This section may not be construed to exclude coverage for
prescription contraceptives ordered by a health care provider for
reasons other than contraceptive purposes. + }
SECTION 13. ORS 750.055 is amended to read:
750.055. (1) The following provisions of the Insurance Code
shall apply to health care service contractors to the extent so
applicable and not inconsistent with the express provisions of
ORS 750.005 to 750.095:
(a) ORS 731.004 to 731.150, 731.162, 731.216 to 731.362,
731.382, 731.385, 731.386, 731.390, 731.398 to 731.430, 731.450,
731.454, 731.488, 731.504, 731.508, 731.509, 731.510, 731.511,
731.512, 731.574 to 731.620, 731.592, 731.594, 731.640 to
731.652, 731.730, 731.731, 731.735, 731.737, 731.740, 731.750,
731.804 and 731.844 to 731.992.
(b) ORS 732.215, 732.220, 732.230, 732.245, 732.250, 732.320,
732.325 and 732.517 to 732.592, not including ORS 732.549 and
732.574 to 732.592.
(c)(A) ORS 733.010 to 733.050, 733.080, 733.140 to 733.170,
733.210, 733.510 to 733.620, 733.635 to 733.680 and 733.695 to
733.780 apply to not-for-profit health care service contractors.
(B) ORS chapter 733, not including ORS 733.630, applies to
for-profit health care service contractors.
(d) ORS chapter 734.
(e) ORS 742.001 to 742.009, 742.013, 742.061, 742.065, 742.150
to 742.162, 742.400, 742.520 to 742.540, 743.010, 743.013,
743.018 to 743.030, 743.050, 743.100 to 743.109, 743.402,
743.412, 743.472, 743.492, 743.495, 743.498, 743.522, 743.523,
743.524, 743.526, 743.527, 743.528, 743.529, 743.549 to 743.555,
743.556, 743.560, 743.600 to 743.610, 743.650 to 743.656,
743.693, 743.697, 743.699, 743.701, 743.704, 743.706 to 743.712,
743.721, 743.722, 743.726, 743.727, 743.728, 743.729, 743.804,
743.807, 743.808, 743.809, 743.814 to 743.839, 743.842, 743.845
and 743.847 { + and section 12 of this 2001 Act + }.
(f) The provisions of ORS chapter 744 relating to the
regulation of agents.
(g) ORS 746.005 to 746.140, 746.160, 746.180, 746.220 to
746.370 and 746.600 to 746.690.
(h) ORS 743.714, except in the case of group practice health
maintenance organizations that are federally qualified pursuant
to Title XIII of the Public Health Service Act unless the patient
is referred by a physician associated with a group practice
health maintenance organization.
(i) ORS 735.600 to 735.650.
(j) ORS 743.680 to 743.689.
(k) ORS 744.700 to 744.740.
(L) ORS 743.730 to 743.773.
(m) ORS 731.485, except in the case of a group practice health
maintenance organization that is federally qualified pursuant to
Title XIII of the Public Health Service Act and that wholly owns
and operates an in-house drug outlet.
(2) For the purposes of this section only, health care service
contractors shall be deemed insurers.
(3) Any for-profit health care service contractor organized
under the laws of any other state which is not governed by the
insurance laws of such state, will be subject to all requirements
of ORS chapter 732.
(4) The Director of the Department of Consumer and Business
Services may, after notice and hearing, adopt reasonable rules
not inconsistent with this section and ORS 750.003, 750.005,
750.025 and 750.045 that are deemed necessary for the proper
administration of these provisions.
SECTION 14. ORS 750.333 is amended to read:
750.333. (1) The following provisions of the Insurance Code
apply to trusts carrying out a multiple employer welfare
arrangement:
(a) ORS 731.004 to 731.150, 731.162, 731.216 to 731.268,
731.296 to 731.316, 731.324, 731.328, 731.378, 731.386, 731.390,
731.398, 731.406, 731.410, 731.414, 731.418 to 731.434, 731.454,
731.484, 731.486, 731.488, 731.512, 731.574 to 731.620, 731.640
to 731.652, 731.804 to 731.992.
(b) ORS 733.010 to 733.050, 733.140 to 733.170, 733.210,
733.510 to 733.680 and 733.695 to 733.780.
(c) ORS chapter 734.
(d) ORS 742.001 to 742.009, 742.013, 742.061 and 742.400.
(e) ORS 743.028, 743.053, 743.524, 743.526, 743.527, 743.528,
743.529, 743.530, 743.560, 743.562, 743.600, 743.601, 743.602,
743.610, 743.693, 743.699, 743.727, 743.728, 743.730 to 743.773
(except 743.760 to 743.773), 743.801, 743.804, 743.807, 743.808,
743.809, 743.814 to 743.839, 743.842, 743.845 and 743.847.
(f) ORS 743.556, 743.701, 743.703, 743.704, 743.706, 743.707,
743.709, 743.710, 743.712, 743.713, 743.714, 743.717, 743.718,
743.719, 743.721, 743.722, 743.725 and 743.726 { + and section
12 of this 2001 Act + }. Multiple employer welfare arrangements
to which ORS 743.730 to 743.773 apply are subject to the sections
referred to in this paragraph only as provided in ORS 743.730 to
743.773.
(g) Provisions of ORS chapter 744 relating to the regulation of
agents and insurance consultants, and ORS 744.700 to 744.740.
(h) ORS 746.005 to 746.140, 746.160, 746.180 and 746.220 to
746.370.
(i) ORS 731.592 and 731.594.
(2) For the purposes of this section:
(a) A trust carrying out a multiple employer welfare
arrangement shall be considered an insurer.
(b) References to certificates of authority shall be considered
references to certificates of multiple employer welfare
arrangement.
(c) Contributions shall be considered premiums.
(3) The provision of health benefits under ORS 750.301 to
750.341 shall be considered to be the transaction of health
insurance.
SECTION 15. { + Section 12 of this 2001 Act and the amendments
to ORS 750.055 and 750.333 by sections 13 and 14 of this 2001 Act
apply to health insurance policies issued or renewed on or after
the effective date of this 2001 Act. + }
----------