Chapter 568 Oregon Laws 2003

AN ACT

HB 3051

Relating to insurance guaranty association assessments; creating new provisions; amending ORS 734.575; prescribing an effective date; and providing for revenue raising that requires approval by a three-fifths majority.

Be It Enacted by the People of the State of Oregon:

SECTION 1. Section 2 of this 2003 Act is added to and made a part of ORS 734.510 to 734.710.

SECTION 2. (1) Each member insurer subject to an Oregon Insurance Guaranty Association assessment pursuant to ORS 734.570 (3) shall recoup the amount of the assessment through a recoupment assessment imposed on net direct written premiums. The member insurer shall fix the amount of the recoupment assessment at an amount sufficient to reimburse the member insurer for the amount of Oregon Insurance Guaranty Association assessments paid by the member insurer.

(2) Each member insurer shall annually certify to the Director of the Department of Consumer and Business Services the total amount of recoupment assessments assessed for the year and that the amount assessed does not exceed the amount of Oregon Insurance Guaranty Association assessments imposed and not previously recouped or offset against corporate excise taxes or fire insurance gross premiums taxes.

(3) The director may by rule establish a minimum threshold for which a recoupment assessment under subsection (1) of this section need not be made.

(4) The Department of Consumer and Business Services, pursuant to rules adopted by the director, may audit member insurer determinations of recoupment assessments.

(5) Recoupment assessments shall be separately stated on premium billing statements. Recoupment assessments may not be considered gross premiums for any purpose.

SECTION 3. Section 2 of this 2003 Act applies to the recoupment of:

(1) Oregon Insurance Guaranty Association assessments imposed on or after January 1, 2003; and

(2) Oregon Insurance Guaranty Association assessments imposed prior to January 1, 2003, that have not been fully recouped through corporate excise tax offsets or fire insurance gross premiums tax offsets.

SECTION 4. ORS 734.575 is amended to read:

734.575. [(1) A member insurer may offset the assessment described in ORS 734.570 (3) first against its corporate excise tax imposed under ORS 317.070 and second against its fire insurance gross premiums tax imposed under ORS 731.820, in that order. The offset may be taken at a rate of 20 percent of the amount of the assessment for each of the five calendar years following the year in which the assessment was paid. If a member insurer ceases doing business, all uncredited assessments may be credited against its tax liabilities referred to in this subsection for the year in which it ceases doing business.]

[(2)] Any sums acquired by refund from the Oregon Insurance Guaranty Association that have previously been written off by contributing insurers and offset against [taxes as provided under subsection (1) of this section] corporate excise taxes or fire insurance gross premiums taxes, and are not then needed for purposes of ORS 734.510 to 734.710, shall be paid by the association to the Director of the Department of Consumer and Business Services and deposited with the State Treasurer for credit to the General Fund of this state.

SECTION 5. The amendments to ORS 734.575 by section 4 of this 2003 Act apply to:

(1) Corporate excise taxes for excise tax years beginning on or after January 1, 2003; and

(2) Fire insurance gross premiums taxes for gross premiums tax reporting periods beginning on or after January 1, 2003.

SECTION 6. This 2003 Act takes effect on the 91st day after the date on which the regular session of the Seventy-second Legislative Assembly adjourns sine die.

Approved by the Governor July 14, 2003

Filed in the office of Secretary of State July 15, 2003

Effective date November 26, 2003

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